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16 October 2019
Las Vegas Felon Pleads Guilty to Stealing over 200 Firearms from Trailer Parked at CasinoRead the Press Release
LAS VEGAS, Nev. – A Las Vegas felon pleaded guilty in federal court Tuesday to stealing more than 200 firearms from a trailer belonging to a Federal Firearms Licensee, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Ray Roundtree for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Stolen firearms often end up in the hands of dangerous criminals to be used in violent crimes,” said U.S. Attorney Trutanich. “The quick work of our dedicated agents and officers stopped more than 200 stolen guns from flooding our communities. Their quick work undoubtedly saved lives.”
Samual Lane Donesing, 29, of Las Vegas, was indicted in August 2018, with one count of possession of stolen firearms and one count of felon in possession of a firearm. He has three prior felony convictions in Clark County including forgery, possession of a stolen vehicle, and grand larceny. Donesing pleaded guilty without the benefit of a plea agreement before U.S. District Judge Richard F. Boulware II.
According to court documents and Donesing’s in-court admissions, on July 31, 2018, he stole a truck and trailer belonging to a Federal Firearms Licensee parked at the Fiesta Henderson Casino. The trailer contained over 200 firearms along with ammunition and firearms accessories such as holsters and magazines. Donesing and co-defendant Jaemillah Eagans drove the trailer to Donesing’s home and unloaded the firearms into the residence. Hotel surveillance footage showed Donesing and Eagans driving away with the stolen truck, and law enforcement soon identified the defendants as suspects.
Sentencing has been scheduled for January 16, 2020. Donesing faces a maximum penalty of 10 years in prison and a $250,000 fine for each count.
Eagans, 27, awaits a jury trial set on January 27, 2020. Eagans is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by the ATF with assistance from the Henderson Police Department and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Linda Mott is prosecuting the case.
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Lackawanna Man Pleads Guilty to Fentanyl ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Larry D. Brodie, Jr., 38, of Lackawanna, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Justin L. Bish, who is handling the case, stated that on April 4, 2019, a Lackawanna Police undercover officer contacted the defendant to arrange for a controlled purchase of heroin. Brodie then met with and sold the undercover officer approximately $100 of suspected heroin and $40 worth of crack cocaine.
The plea is the result of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
Sentencing is scheduled January 30, 2020, before Judge Arcara.
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KC Man Pleads Guilty to Meth Conspiracy, Faces at Least 15 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to his role in a conspiracy to distribute large quantities of methamphetamine.
Alfredo Soto-Contreras, also known as “Antonio,” 35, pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of conspiracy to distribute methamphetamine, one count of conspiracy to use firearms during and in relation to a drug-trafficking crime, and one count of use of a firearm during and in relation to a drug-trafficking crime.
This investigation into a conspiracy to traffic large quantities of methamphetamine ended on Dec. 18, 2018, when four co-conspirators were arrested in possession of approximately 25 pounds of methamphetamine during an undercover operation. Conspirators sold (or attempted to sell) a total of approximately 13 kilograms of methamphetamine to an undercover agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Conspirators also sold eight firearms to the undercover agent, including several that had been reported as stolen.
Soto-Contreras is the third defendant to plead guilty to his role in the drug-trafficking conspiracy, which lasted from May 2018 to Dec. 18, 2018.
Under federal statutes, Soto-Contreras is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Commemorates 10th Anniversary of Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention ActRead the Press Release
In commemoration of the tenth anniversary of the enactment of the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, the Department of Justice today announced technical assistance resources to fight hate crimes across the country, including development of a new hate crimes training curriculum for law enforcement, and a hate crimes outreach and engagement program for communities entitled ‘United Against Hate: Cultivating Community Partnerships.’
“Hate crimes are especially reprehensible because of the toll they take on families, communities, and our nation as a whole. Precisely because they are fueled by bias against specific people and groups, they also are a grave affront to America’s foundational principles and ideals,” said Attorney General William P. Barr. “That is why the Department of Justice is committed to using every tool at its disposal to combat crimes motivated by this kind of intolerance. The measures announced at today’s commemoration of the tenth anniversary of the Hate Crimes Prevention Act will strengthen our ability to identify and prosecute those who perpetrate these unconscionable acts of hatred.”
“The tenth anniversary of the Shepard-Byrd Act reminds us of the Act’s continued importance. Today Department of Justice officials, law enforcement, and other Americans have come together to highlight both the substantial efforts we have made to combat, prevent, and prosecute hate crimes, and the critical work still to be done,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
A year ago this month, in October 2018, the Department’s Hate Crimes Enforcement and Prevention Initiative convened a law enforcement roundtable on hate crimes. The day and a half–long event, highlighted in a forthcoming report, brought law enforcement and other leaders from around the country together with Department of Justice officials to explore successful practices and challenges in identifying, reporting, and tracking hate crimes. At the roundtable, it was announced that technical assistance through the Collaborative Reform Initiative for Technical Assistance Center (CRI-TAC) – a partnership with the International Association of Chiefs of Police and nine leading law enforcement leadership and labor organizations, -- funded through the Office of Community Oriented Policing Services (COPS Office) -- would be extended to help state, local, and tribal law enforcement with hate crimes prosecution and prevention.
The Department today announced that the COPS office is supporting the development of a new hate crimes curriculum through CRI-TAC. This important training will focus on law enforcement response, investigation, and reporting of hate crimes consistent with the Administration’s guidance. The course when developed and made available will be focused on increasing the capacity and competency to investigate and accurately report hate crimes, and pursuing the best option for prosecution of perpetrators.
At last year’s roundtable, law enforcement emphasized the single most important tool the federal government could provide would be training to improve investigating and reporting of hate crimes to state, local, and tribal law enforcement.
“The training is directly responsive to the requests from the field that we heard at the Initiative’s Law Enforcement Roundtable, and embodies our philosophy of ‘by the field, for the field,’” said COPS Director Phil Keith.
In addition to the hate crimes training, the Department is also launching a two-phase hate crimes outreach and engagement program. The outreach program “United Against Hate: Cultivating Community Partnerships,” aims to address the underreporting of hate crimes to law enforcement. In phase two of the outreach program the U.S. Attorney’s Offices will have the opportunity to facilitate trainings across the country, convening a wide array of community groups, such as advocacy organizations, educators, and local leaders (including religious leaders) to discuss the impact of hate crimes and explore strategies to build trust with federal, state, local, and tribal law enforcement.
In recent years, the Department has strengthened its hate crimes prosecution program and increased training of federal, state, and local law enforcement officers to ensure that hate crimes are identified and prosecuted to the fullest extent possible. Over the past 10 years, the Department of Justice has charged more than 330 defendants with hate crimes offenses, including more than 70 defendants total during FY 2017, 2018, and 2019. During this three-year time period, the Department has obtained convictions of more than 65 defendants for hate crimes incidents with some cases still pending.
Hate crimes prosecutions are often high profile and their impact is felt nationally and sometimes internationally. This year, the Department’s hate crimes prosecutors have handled several high-profile investigations and criminal prosecutions, including cases in Charlottesville, VA, Pittsburgh, PA, and Jeffersontown, KY.
In southern California, after a shooter killed one and wounded three others at the Chabad of Poway Synagogue, and set fire to the Dar-ul-Arqam Mosque in Escondido, the Department secured a 113-count indictment that included numerous hate crimes charges. And in Dallas, Texas, the Department secured a guilty plea from a man for kidnapping and conspiracy charges for his involvement in a scheme to single out men because of their sexual orientation. The defendant conspired with others to use Grindr, a social media platform, to lure gay men to areas around Dallas for robbery, carjacking, kidnapping, and violent hate crimes.
“The FBI's mission is simple but profound: to uphold the Constitution and protect the American people. It's why battling hate crime is one of the FBI's top priorities,” said FBI Director Christopher Wray. “Hate crime strikes at the very heart of our society, targeting people in our communities based solely on who they are. The FBI will not allow this threat to cast a shadow over our safety and our security. We'll continue to work with our law enforcement partners and use every tool at our disposal to prevent and investigate acts of hate and protect the American people.”
“Prosecuting hate crimes is critical to keeping our community safe. When one member of a group in the community is the victim of a hate crime, all members carry with them a fear that they too may be targeted because of who they are,” said U.S. Attorney for the District of Columbia Jessie K. Liu, Chair of the Attorney General’s Advisory Committee. “The Department of Justice will use every tool at its disposal to protect the people of the United States from these cowardly crimes.”
The Department offers a variety of training and outreach programs to work with local communities and organizations and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits.
“For example, in Fiscal Year 2019, the Community Relations Service (CRS) facilitated 19 Protecting Places of Worship forums and 10 Hate Crime Forums across the United States where law enforcement and other experts shared best practices with community groups working to prevent and respond to hate crimes,” said Gerri Ratliff, CRS Deputy Director.
More information about the Department’s hate crimes efforts, including facts and statistics, case examples, and a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available at www.justice.gov/hatecrimes. Launched a year ago this month, this website provides a centralized portal for the Department’s hate crimes resources, and has attracted over 200,000 visitors to date.
Johnstown Man Conspired to Possess and Distribute Crack CocaineRead the Press Release
JOHNSTOWN, Pa. -A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of cocaine base, United States Attorney Scott W. Brady announced today.
Kawan Dock, 42, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from May 7, 2019, to May 16, 2019, Dock conspired to possess with intent to distribute and distribute a quantity of cocaine base, in the form commonly known as crack.
Judge Gibson scheduled sentencing for February 25, 2020, at 10:00 a.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Dock.
Jacksonville Repeat Offender Sentenced to More Than Seven Years in Federal Prison for Selling Crack CocaineRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced James Bernard Kennedy (46, Jacksonville) to seven years and four months in federal prison for distributing cocaine base (also known as crack cocaine).
Kennedy had pleaded guilty on June 26, 2019.
According to court documents, Kennedy sold crack cocaine to a confidential informant on one occasion and to an undercover federal agent an additional four times.
In 2013, Kennedy was prosecuted and convicted by the State of Florida for conspiracy to traffic cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Jacksonville Man Sentenced for Disaster Assistance Fraud Involving Tropical Storm Debby, Hurricane Matthew, and Hurricane IrmaRead the Press Release
Jacksonville, Florida – Senior U.S. District Judge Harvey E. Schlesinger has sentenced Lepoleon Spikes (47, Jacksonville) to 21 months in federal prison for wire fraud involving fraudulently obtained FEMA benefits. Spikes was immediately remanded into the custody of the U.S. Marshals Service. The court also ordered Spikes to pay $57,689.19 in restitution to the United States.
According to court documents, in February 2018, the U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG) received an allegation that Spikes had provided false information to the Federal Emergency Management Agency (FEMA) in order to receive disaster assistance. Upon receipt of the allegation, DHS-OIG determined that Spikes had submitted applications to receive disaster assistance from FEMA involving Tropical Storm Debby, Hurricane Matthew, and Hurricane Irma. A review by DHS-OIG determined that, in each of the applications submitted to FEMA for disaster assistance, Spikes falsely claimed that his primary residence in Jacksonville was damaged due to a storm. Spikes claimed that, due to the storm damage, he had to relocate and was in need of disaster assistance. Based on his applications for disaster assistance, Spikes fraudulently obtained $57,689.19 from FEMA.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
Illinois Woman Pleads Guilty to Conspiring to Commit Wire Fraud and Aggravated Identity TheftRead the Press Release
Lamesha Conley of Chicago, Illinois, pleaded guilty today to conspiracy and identity theft charges related to a scheme to obtain fraudulent tax refunds using stolen identity information, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents filed with the court, starting around January 2014, Conley provided more than 6,000 stolen identities to Dominique King and Roxann Gist for the purpose of filing fraudulent income tax returns. Between January 2014 and July 2015, King and Gist used those stolen identities to file fraudulent income tax returns with the Internal Revenue Service (IRS) seeking more than $2.6 million in refunds. King and Gist directed that some of the refunds be mailed to Conley and other co-conspirators.
Conley is scheduled to be sentenced on Jan. 27, 2020. Conley faces a statutory maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a two-year mandatory minimum sentence for aggravated identity theft, which will run consecutive to any other sentence imposed by the court. Conley also faces a period of supervised release, restitution, and monetary penalties.
King, Gist, and other co-defendants previously pleaded guilty for their roles in the scheme. King was sentenced to 30 months in prison and Gist was sentenced to 36 months in prison. They were ordered to pay $1,332,935 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Timothy M. Russo and Lee F. Langston of the Tax Division, who are prosecuting this case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Northern District of Illinois for their substantial assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division's website.
Illegal Alien indicted on reentry chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jose Catarino Feregrino-Resendez, a citizen of Mexico, was indicted by a federal grand jury today for an immigration violation, U.S. Attorney Bill Powell announced.
Feregrino-Resendez, age 49, was indicted on one count of “Reentry of Removed Alien.” Feregrino-Resendez is accused of reentering the country illegally after be removed once before. The crime allegedly occurred in April 2019 in Harrison County.
Feregrino-Resendez faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement and the FBI investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Sentenced to Two Years in Federal Prison for Illegally Re-Entering the United StatesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Samuel Lopez-Lopez (29, Atlanta) to 24 months in federal prison for illegally re-entering the United States after previously being deported. Lopez-Lopez had pleaded guilty on July 2, 2019.
According to the facts described in court, on February 18, 2019, Lopez-Lopez was convicted of battery on a law enforcement officer and grand theft in Columbia County. The charges arose out of an incident at a hotel in Lake City that had occurred on December 28, 2018. After Lopez-Lopez was booked on the charges, immigration agents ran his fingerprints and found that he was a citizen of Honduras who was illegally present in the United States. Lopez-Lopez also had been previously deported from the United States three times.
Lopez-Lopez had previous convictions for domestic battery, use of a controlled substance, transportation of a controlled substance, and possession of a controlled substance. After Lopez-Lopez serves his prison sentence, he will be deported from the United States.
This case was investigated by U.S. Immigration and Customs Enforcement. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Georgia Man Who Trafficked Dozens of Guns into Connecticut Sentenced to 7 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, announced that JIVON JOHNSON, 32, of Snellville, Georgia, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment, followed by three years of supervised release, for trafficking guns into Connecticut. Judge Underhill also ordered Johnson to perform 300 hours of community service while on supervised release.
According to court documents and statements made in court, in March 2018, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Johnson, who formerly resided in Bridgeport, was using the Snapchat app to advertise the sale of firearms that he had acquired in Georgia and would transport to Connecticut to sell. Investigators subsequently viewed multiple images, or “Snaps,” from Johnson’s Snapchat account advertising the sale of numerous firearms and ammunition, include several high-powered firearms and extended magazines. On September 22, 2018, investigators conducted a controlled purchase of a handgun and two magazines from Johnson in Bridgeport.
Johnson was arrested in Georgia on October 3, 2018. After his arrest, Johnson admitted that he had traveled to Connecticut on seven occasions over approximately 18 months and sold at least 30 guns in Bridgeport during that time.
Johnson’s criminal history includes felony convictions for firearm and narcotics offenses. 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.
Johnson has been detained since his arrest. On June 24, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by ATF and prosecuted by Assistant U.S. Attorney Vanessa Richards.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Four Western Washington organizations receive U.S. DOJ grants totaling more than $2 million to support victims of human traffickingRead the Press Release
Seattle – U.S. Attorney Brian T. Moran announced Department of Justice grants for four organizations in Western Washington who are working to rescue and support victims of human trafficking. The organizations work with young people and one has a special focus on Native American victims.
“I’m pleased that the Seattle Indian Health Board received funding under DOJ’s Project Beacon – designed to increase services for Native Americans living in urban areas,” said U.S. Attorney Moran. “As we work to address the problem of Murdered and Missing Indigenous Women, developing services and informing the community about the scourge of sex trafficking is critically important.”
The Seattle Indian Health Board received a $450,000 grant to build a referral network for sex trafficking victims, to educate the public and to train providers about culturally appropriate treatment for Native victims of sex trafficking.
YouthCare in Seattle received a $571,307 grant to support victims of human trafficking. YouthCare works with homeless, street-involved and sexually exploited youth ages 12-24. These funds are to provide case management, training and coordination among a variety of organizations serving young people.
Real Escape from the Sex Trade in Seattle’s Rainier Valley will receive a $500,000 grant to launch the Economic Leadership and Empowerment Academy to provide training in a job readiness program. The program will be designed specifically for victims of sex trafficking, providing internships and employment placement as well as monthly leadership development workshops.
In Everett, Cocoon House received a $500,000 grant. The grant will expand services for Snohomish County trafficking victims under age 18. The organization plans to add a Human Trafficking Advocate and Program Coordinator so that it can provide services to at least 100 trafficked or at-risk youth.
For additional information on individual grants, please contact the recipient organizations.
Former Superintendent of Santee Community Schools Convicted of Theft of Government MoneyRead the Press Release
United States Attorney Joe Kelly announced that Paul Sellon, age 63, of Hamburg, Iowa, was sentenced today in federal court in Lincoln for Theft of Government Money. Senior United States District Judge Richard G. Kopf sentenced Sellon to 24 months’ imprisonment. There is no parole in the federal system. Sellon will begin a 3-year term of supervised release upon his release from prison. Sellon was also ordered to pay $314,121.00 in restitution to the United States Department of Education.
Sellon was the Superintendent of Santee Community Schools on the Santee Sioux Nation Reservation in Santee, Nebraska from 2010 to 2014. Sellon’s duties as Superintendent included administering the development and maintenance of a positive educational program and recommending and implementing the school district’s professional development plan and staff training. Sellon caused Santee Community Schools to contract with an educational consulting business owned and operated by an associate of Sellon. This educational consultant was paid to provide services to the Santee Community Schools with funds from the American Recovery and Reinvestment Act School Improvement Grant. As a precondition to this educational consultant being hired by Santee Community Schools, Sellon informed the consultant that the consultant would have to pay Sellon a portion of the proceeds he would receive from the School Improvement Grant. From 2012 to 2013, Sellon received $314,121.00 of the School Improvement Grant funds as a result of this kickback arrangement.
This case was investigated by the Federal Bureau of Investigation.
Former Suboxone Clinic Doctor Sentenced for Illegal Prescribing and Health Care FraudRead the Press Release
PITTSBURGH - A former resident of Sewickley, Pennsylvania, has been sentenced in federal court to 180 days of home confinement; three years’ probation; fined a total of $20,000.00; and ordered to pay $156,902.89 in restitution on his conviction of unlawfully prescribing buprenorphine and committing health care fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Michael Anthony Bummer, age 40.
According to information presented to the court, Bummer, a physician, was employed at Redirections Treatment Advocates (Redirections), a buprenorphine clinic with offices in Pennsylvania and West Virginia. Under federal law, a prescription for a controlled substance is required to be signed and dated the day it is issued. Bummer and other doctors at Redirections would routinely pre-sign blank prescriptions for buprenorphine, which is a scheduled controlled substance under federal law. The pre-signed prescriptions were then given to other medically-unlicensed employees at Redirections who completed the prescription and provided it to the patients in exchange for cash. On numerous occaisons, the doctors were not physically present at Redirections and did not exam their patients when prescriptions bearing their names were issued. For example, on August 17, 2016, one of Bummer’s patients received a prescription for buprenorphine although Bummer was not in the office and did not see the patient. Because the prescriptions were illegally issued, Medicare and Medicaid were defrauded when Redirections’ patients used their insurance to fill the prescriptions. When confronted by an investigator, Bummer surrendered his license to prescribe controlled substances.
Prior to imposing sentence, Judge Schwab stated that the sentence was intended to achieve the goals of punishment and the other sentencing factors set forth in the United States Code.
Assistant United States Attorneys Robert Cessar and Michael Leo Ivory prosecuted this case on behalf of the government.
United States Attorney Brady added the investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Former State Senator’s Accountant Convicted of Tax FraudRead the Press Release
BOSTON—John H. Nardozzi, the certified public accountant for former State Senator Brian Joyce, was convicted today by a federal jury for conspiring with the late senator to defraud the IRS from 2011 through 2014.
Nardozzi, 67, of Waltham, was convicted after a seven-day trial of defrauding the IRS of approximately $600,000 by manipulating income that should have been reported on Joyce’s corporate tax return and by applying it to Joyce’s personal tax return. Nardozzi was also convicted of falsely creating a single-employment pension (SEP) fund for Joyce and his wife, to which they were not otherwise entitled. In doing so, Nardozzi enabled Joyce and his wife to defer taxes on approximately $400,000 of income. Nardozzi also assisted Joyce in an illegal rollover of Joyce’s SEP account to purchase stock in a private company without following the IRA rollover rules. In addition, Nardozzi attributed income from Joyce’s law firm to Joyce’s wife even though she never worked for the law firm.
U.S. District Court Judge William G. Young scheduled sentencing for Jan. 9, 2020.
The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aiding and assisting in filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $100,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Dustin Chao and Evan Gotlob of Lelling’s Public Corruption and Special Prosecutions Unit are prosecuting the case.
Former President of Labor Union Pleads Guilty to Demanding and Accepting BribesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GLENN BLICHT, the former president of a labor union (the “Union”), pled guilty today to violating the Taft-Hartley Act by demanding and accepting approximately $150,000 in bribe payments from an employer (the “Employer”). In exchange for these bribes, BLICHT did not represent Union members’ interests. BLICHT pled guilty before United States District Judge Analisa Torres, to whom BLICHT’s case is assigned.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As the president of a labor union, Glenn Blicht’s duty was to fight for his union members. Instead, for many years, he demanded and accepted bribes – and in return, he sold out his union members. Our Office is committed to prosecuting those who abuse positions of trust for their own gain.”
According to the allegations in the Indictment to which BLICHT pled guilty, public court filings, and statements made in court:
From 2009 through the present, BLICHT served as an officer of the Union, including as its president for many years. In that role, BLICHT had a duty to act in the best interests of the Union and its members, including by avoiding personal financial conflicts of interest with the Union. Nevertheless, BLICHT demanded and received cash payments from the Employer, which employed a number of members of the Union. In exchange for these bribes, BLICHT declined to file arbitration claims on behalf of Union members. In total, BLICHT received approximately $150,000 in bribes from the Employer over approximately 10 years.
In communications, a number of which were recorded, BLICHT repeatedly referred to the bribe payments as “tickets,” in which each ticket equaled a $1,000 bribe. BLICHT instructed an official of the Employer (the “Official”) as to the number of “tickets” to pay BLICHT each time. Indeed, during the past year, the Official met with BLICHT several times and paid him bribes on approximately four occasions, at the direction of law enforcement. Each of these meetings was recorded. For instance, on July 26, 2019, BLICHT received a $10,000 cash bribe from the Official at a restaurant in New York, New York; BLICHT was arrested outside this restaurant, in possession of the $10,000 bribe.
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BLICHT, 57, of Wilton, Connecticut, pled guilty to one count of demanding or receiving prohibited payments as a labor union official, which carries a maximum sentence of five years in prison. Under the terms of his plea agreement, BLICHT has agreed to a 13-year ban, which generally prohibits him from, among other things, being employed by a labor union or employee benefit plan, pursuant to Title 29, United States Code, Sections 504 and 1111. BLICHT has also agreed to forfeit $150,000 and to pay restitution. 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 the judge.
Sentencing before Judge Torres is scheduled for February 12, 2020, at 3:00 p.m.
Mr. Berman praised the Department of Labor’s Office of Inspector General and Employee Benefits Security Administration, the Internal Revenue Service-Criminal Investigation Division, and the Federal Bureau of Investigation for their outstanding work on the investigation. Mr. Berman also thanked the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for their assistance in this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Former IRS Employee Indicted for Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A former IRS employee has been indicted by a federal grand jury for stealing refunds from taxpayers.
Tamara R. Miller, 39, of Kansas City, Missouri, was charged in a five-count indictment returned under seal by a federal grand jury in Kansas City on Oct. 2, 2019. That indictment was unsealed and made public today upon Miller’s arrest and initial court appearance.
Miller was employed by the IRS as a data transcriber at the Kansas City Service Center. As part of her duties, Miller handled individual income tax returns received by mail at the Kansas City Service Center.
The federal indictment alleges that Miller selected tax returns on which the “Refund” section did not show a routing number or account number for a direct deposit to a financial institution (indicating the taxpayer elected to have the refund paid by a U.S. Treasury check). Miller allegedly used taxpayers’ means of identification, including names and Social Security numbers, shown on their tax returns to apply for accounts at online banks that issued prepaid debit cards. If Miller succeeded in opening an online account with a taxpayer’s means of identification, she entered the routing number and account number for the fraudulently created account in the “Refund” section of the taxpayer’s Form 1040. Miller had access to the fraudulently created account; the taxpayer did not know the account existed.
As an alternative means of fraudulently altering taxpayers’ returns, Miller entered the routing and account numbers for an existing online account to which she had access in the “Refund” section of the Forms 1040, thereby falsely representing that the taxpayer elected to have the refund amount deposited directly to that account.
Miller allegedly caused the fraudulently altered Forms 1040 to be submitted and processed for payment of the refund amounts requested by the taxpayers. The refund amounts were subsequently deposited directly to accounts controlled by Miller and accessible to Miller.
The indictment cites two victims of Miller’s fraud scheme, with a total loss amount of $5,214. Miller is charged with two counts of wire fraud, one count of aggravated identity theft, and two counts of theft of public money.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Tom Larson. It was investigated by the U.S. Treasury Inspector General for Tax Administration.
Former Gulf Cartel comandante receives significant prison sentenceRead the Press Release
HOUSTON - A 34-year-old Mexican man has been ordered to federal prison sentence following his conviction of conspiracy to import large amounts of cocaine and marijuana, announced U.S. Attorney Ryan K. Patrick.
Luis Ivan Nino-Duenez, El Control, Tamaulipas, Mexico, pleaded guilty June 3, 2014.
Today, Senior U.S. District Judge Hilda G. Tagle sentenced Nino-Duenes to a total of 20 years in federal prison.
During the hearing, the court heard evidence to support possible increases in the calculated sentencing guideline range. Nino-Duenes utilized automatic weapons, grenades, homemade cannons and body armor to provided security during the purchase, transportation and distribution of narcotics. He also commanded, directed and engaged in violent confrontations with other criminal syndicates to maintain control of the plazas in Mexico. He further received enhancements for importation of meth into the United States, maintaining premises for the purpose of manufacturing or distributing a controlled substance and because he committed the offense as part of a pattern of criminal conduct. Finally, the court also found Nino-Duenes was a leader/organizer of an extensive criminal enterprise involving five or more participants.
Nino-Duenes served as a comandante for Jose Luiz Zuniga-Hernandez aka Wicho or XW who served as a gulf cartel plaza boss in El Control for a large period of time between 2008 through 2011.
On Nov. 6, 2010, Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to El Control.
Cartel Del Golfo (CDG) transnational criminal organization plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a "piso," or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region.
Additional evidence presented today indicated Zuniga-Hernandez and the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and more than 3000 kilograms of marijuana into the United States per month. The CDG used planes and clandestine air strips to fly the cocaine into Mexico for later importation and distribution within the United States.
Zuniga-Hernandez had under his command approximately 120 lookouts and 60 estacas. An estaca is a vehicle occupied by three or four armed individuals. Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza. Nino-Dunez was the commander of Zuniga-Hernandez’s estacas.
On Oct. 27, 2011, Zuniga-Hernandez and Nino-Duenes along with Hernandez and Rincon-Rincon fled into the United States after a gun battle in Mexico involving a power struggle between the CDG plazas.
All were found hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond and ruby encrusted gun, more than $39,000 and several cell phones. Evidence on those phones showed discussions with "Apa" about the gun battle and what to do in response. "Apa" was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG.
Zuniga-Hernandez, Hernandez and Rincon-Rincon were previously sentenced to 50 years, 35 years and life imprisonment, respectively.
Nino-Duenes will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration and Cameron County Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorneys Angel Castro and Jody Young are prosecuting the case.
Former Director of Human Resources Pleads Guilty to Embezzling over 1.8 Million Dollars from Her EmployerRead the Press Release
St. Louis, MO – Nicole M. Scott, 42, of St. Louis City, Missouri, pleaded guilty to one felony count of wire fraud. Scott appeared in federal court today before U.S. District Judge Henry E. Autrey who accepted her plea and set her sentencing date for January 23, 2020.
According to court documents, from January 2009 until January 2019, Scott embezzled more than $1.8 million from her employer. As part of her scheme, Scott would use her company’s payroll system to access lists of the company’s former employees, change the direct deposit information for certain former employees to her own personal bank account, and then enter fraudulent “negative deduction” transactions thereby causing the company to pay funds to Scott’s personal bank account. In order to conceal her scheme, Scott would then manipulate payroll journal entries related to the fraudulent transactions causing them to be imputed to Scott for tax purposes. Scott used the more than $1.8 million in fraud proceeds for personal gain, including making payments on a mortgage loan, to purchase clothing and accessories, and to pay for living expenses.
“Nicole Scott thought she could get away with her scheme because she oversaw the payroll system and had the ability to alter it,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “Like other white-collar criminals who exploit their positions of trust, she will pay for her greed.”
Scott faces a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
First Defendant in Methamphetamine Trafficking Ring Sentenced to 20 Years in Federal PrisonRead the Press Release
SALT LAKE CITY – The lead defendant in a methamphetamine trafficking ring responsible for distributing more than 99 pounds of methamphetamine in Utah, Idaho, and other locations, will spend 20 years in federal prison after pleading guilty to conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
According to documents filed in court, Tiffany Scott Spevak, age 39, of Salt Lake City, agreed that she conspired with others from about January 2014 through October 2016, to procure methamphetamine in Arizona and California and distribute it to customers in Utah, Idaho, and other locations.
She admitted that more than 99 pounds of methamphetamine were distributed during the conspiracy period. Spevak admitted that she directed other individuals to get the methamphetamine and to distribute it during conspiracy period. Investigators involved in the case estimate that the group distributed between 250-500 pounds of methamphetamine.
She also admitted that those involved in the conspiracy engaged in financial transactions, knowing the property involved in the financial transactions represented proceeds of unlawful activity – distribution of methamphetamine in this case – with the intent to continue the unlawful activity.
Acting on information provided by an individual arrested in Washington, special agents with U.S. Department of Homeland Security Investigations interviewed Spevak at her home in January 2016. Agents found $37,000 in case during a search of her residence. A narcotics K-9 alerted on items in the home. Agents found postal express mail envelopes and a small roll of green shrink wrap in a closet. Spevak initially told them the materials were from 2012 and were used by her significant other, Hugo Tapia-Mendoza, who is currently incarcerated in another federal drug case. During a later interview, Spevak told agents that after Tapia was arrested, she began to contact individuals who worked for Tapia who connected her with individuals who sold her methamphetamine.
Cases are pending for four other defendants in the case. Carlos Rafael Cota-Escalante, age 53, of Phoenix, Arizona, is charged with conspiracy to distribute methamphetamine and conspiracy to commit money laundering in the indictment. He is in custody. Stephen Scott Spevak, 62, of Idaho, is charged with conspiracy to distribute methamphetamine, conspiracy to commit money laundering, and three counts of money laundering. He is on pretrial release. An arrest warrant is pending for Carlos Rafael Cota-Llanes, age 31, of Phoenix, who is charged with conspiracy to distribute methamphetamine and conspiracy to commit money laundering. Shanna Walter, age 42, of Salt Lake County, is charged with money laundering and is on pretrial release. (Stephen Scott Spevak is Tiffany Scott Spevak’s father.)
In a related case in Idaho, Ryan Dalley of Pocatello, Idaho, who worked with Tiffany Spevak to get methamphetamine in Los Angeles and Phoenix for distribution in Idaho and Montana, was sentenced to 17 years in federal prison in September. At sentencing, U.S. District Court Judge B. Lynn Winmill noted he has presided over a significant share of the drug sentencings in federal court in Pocatello in the past 24 years, and he believed Dalley’s drug trafficking organization is “one of, if not the largest, drug trafficking operation in Eastern Idaho.”
Federal prosecutors in the U.S. Attorney’s Office in Utah are prosecuting the case. Special agents of the DEA, IRS-Criminal Investigation, and the U.S. Department of Homeland Security Investigations are investigating the case along with the Idaho State Police.
Fayette County Man Sentenced to 72 Months for Illegal Firearm PossessionRead the Press Release
FRANKFORT, Ky. –Adlie Penman, 40, of Lexington, Kentucky, was sentenced to 72 months in federal prison on Wednesday, by United States District Judge Gregory F. Van Tatenhove, after pleading guilty to one count of being a convicted felon in possession of a firearm.
On November 19, 2018, officers with the Lexington Police Department responded to a residential noise complaint. While at the scene, officers observed Penman emerge from a tree line next door. Upon seeing police, Penman immediately tossed a loaded .22 caliber pistol, which was later recovered. Penman was a convicted felon, with multiple prior felony convictions including burglary and drug trafficking.
Under federal law, Penman must serve 85 percent of his 72 month sentence. Upon completion of his sentence, he will be under the supervision of the United States Probation Office for a period of three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge, ATF, Louisville Field Division; and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly made the announcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Ex-Dallas Police Officer Pleads Guilty to Falsifying Traffic CitationsRead the Press Release
A former Dallas Police Officer pleaded guilty today to falsifying traffic citations in order to collect overtime pay, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following an investigation by the Dallas Police Department, Mathew Alan Rushing, 35, pleaded guilty to one count of false statements before Magistrate Judge David Horan Tuesday morning.
According to his plea papers, Mr. Rushing submitted at least 38 fraudulent “Officer’s Daily Grant Activity Reports,” which included citations for fictitious persons and events, over a nine month period from 2018 to 2019.
After Mr. Rushing concluded a traffic stop, he admitted, he sometimes altered the violator’s true identity by changing their name or date of birth, causing arrest warrants to be issued for drivers who didn’t exist. Other times, he admitted, he citied drivers for nonexistent violations after they departed the scene of the incident.
Mr. Rushing admitted he submitted these report with the intention of collecting overtime pay funded by federal grants from the National Highway Traffic Safety Administration (NHTSA) through a program administered by the Texas Department of Transportation and the Dallas Police Department.
Mr. Rushing now faces up to five years in federal prison. Sentencing is set for March 2020.
The Dallas Police Department, Federal Bureau of Investigation Dallas Field Office, and Department of Transportation Office of Inspector General conducted the investigation. Assistant U.S. Attorneys David Jarvis and Andrew Wirmani are prosecuting the case.
Ellenville Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Iqwan Mandiville, age 26, of Ellenville, New York, pled guilty today to his involvement in a drug trafficking organization in Ulster County that was dismantled and indicted in March 2019.
The announcement was made by United States Attorney Grant C. Jaquith; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); Ulster County District Attorney Holley Carnright; New York State Police Superintendent Keith M. Corlett; and Village of Ellenville Police Chief Philip Mattracion.
Mandiville admitted that between May and December 2018, in cooperation with co-conspirators, he sold at least 112 grams of crack cocaine on behalf of the organization in various locations around Ellenville.
Mandiville faces at least 5 years and up to 40 years in prison, a term of supervised release of at least 4 years and up to life, and a maximum fine of $5 million. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors
The following defendants have also pled guilty in connection with the conspiracy, and face the following penalties:
Name
Age
Minimum
Maximum
Luis Curet
34
5 years
40 years
Edwin Jorge
46
None
20 years
Randy Mandiville, aka “B-Murda”
30
None
20 years
The following defendants still face charges in this case, and face the following penalties:
Name
Age
Minimum
Maximum
Antonio Naveo, aka “Gratto,” aka “Green Eyes”
38
10 years
Life
Margaret Vandyke
56
10 years
Life
Jennifer McCombs, aka
“Jennifer Marks”49
5 years
40 years
Naveo is also charged with unlawful possession of a Mossberg shotgun as a felon.
The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Deported Felon Sentenced to 60 Months in PrisonRead the Press Release
FORT WAYNE – Luis Carrera, age 45, of Hammond, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to possession with intent to distribute more than 500 grams of cocaine, announced U.S. Attorney Kirsch.
Carrera was sentenced to 60 months in prison with 4 years of supervised release, however he will be deported upon completion of his federal sentence.
According to documents in this case, Carrera brought a kilogram of cocaine to Fort Wayne from Hammond, Indiana. During a search of the vehicle driven by Mr. Carrera, officers found the cocaine wrapped and concealed in a plastic oil bottle. Mr. Carrera was previously removed from the U.S. for attempted illegal entry and was also on probation in Porter County, Indiana for dealing Marijuana.
The case was investigated by the Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Stacey R. Speith.
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Department of Justice Awards More Than $29 Million in Public Safety Funding to Northern District of OhioRead the Press Release
The Department of Justice today announced awards of more than $29 million to support public safety efforts in the Northern District of Ohio. The funding from the Office of Justice Programs (OJP), Office on Violence Against Women (OVW), and the Office of Community Oriented Policing Services (COPS) will support violent crime reduction, opioid/substance abuse reduction efforts, victim services, transitional housing for domestic violence victims, law enforcement activities, justice mental health, and juvenile justice.
“The Department of Justice is proud to announce funding for the Northern District of Ohio to further reduce violent crime, train judges and prosecutors, and serve victims of crime,” said Attorney General William P. Barr. “We applaud U.S. Attorney Justin Herdman for his fine work there, and we are confident that his stewardship of the additional resources will yield tangible results in his community.”
“It was an honor to announce the Department’s awards in and beyond Cleveland today, and to meet with those working on the ground to end domestic and sexual violence,” said Laura L. Rogers, Acting Director of the Office on Violence Against Women. “During Domestic Violence Awareness Month, it is heartening to hear about efforts in Cleveland, including the high risk team’s use of innovative strategies to prevent domestic violence homicides. I am delighted to announce funding for specialized courts, prosecutors, law enforcement, and victims services providers who are working around the clock to protect and bring justice for victims.”
“Community safety and justice is a round-the-clock operation in communities across the country, including the Northern District of Ohio,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “This is why the Office of Justice Programs is pleased to announce critical grant funding going to the Northern District of Ohio that will support opioid and substance abuse reduction, bolster law enforcement, create specialized courts to handle domestic violence cases, and give over $3 million toward the Sexual Assault Kit Initiative that addresses the growing number of unsubmitted SAKs in law enforcement custody and helps provide resolution for victims when possible.”
OVW Acting Director Rogers made the announcement at the Cuyahoga County Justice Center on Wednesday afternoon along with U.S. Attorney Justin Herdman and Judge Sherrie Miday. Acting Director Rogers also recognized U.S. Attorney Herdman and his work in the Northern District of Ohio. Corresponding with National Domestic Violence Awareness Month, Acting Director Rogers and U.S. Attorney Herdman discussed the Department’s work in bolstering law enforcement and providing services in the District that victims need to find safety, stability, and justice.
“These funds will save lives, whether that is expanding a program that identifies the most dangerous abusers, provides emergency shelter to our most vulnerable victims, allows law enforcement to do a better job tracking and sharing crime data, just to name a few,” U.S. Attorney Justin Herdman said. “These grant awards demonstrate the Justice Department’s commitment to working across the state and country, with jurisdictions large and small, to make our communities safer.”
The awards were made by the three grant-making components of the Department of Justice—OVW, the Office of Community Oriented Policing Services and the Office of Justice Programs.
A full list of COPS awards is available online at https://cops.usdoj.gov/grants. OJP awards, organized under specific grant programs, are available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. For OVW awards, visit https://www.justice.gov/ovw/awards.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office on Violence Against Women:
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Danville Man Charged with Robbing Centralia Bank at GunpointRead the Press Release
Charges have been filed in connection with the September 2018 armed robbery of a federally-insured bank in Centralia, Illinois. Aaron Moss, 21, of Danville, Illinois, is the only defendant named in a two-count indictment returned by a federal grand jury earlier this month. The indictment alleges that Moss and another unnamed person robbed the People’s National Bank in Marion County using a
Glock .40 model 27 firearm.Moss made his initial appearance and was arraigned today in federal district court, pleading not guilty to both charges. If convicted, he faces up to 25 years in prison on the bank robbery charge and an additional seven years to life for brandishing a gun during the crime.
Trial is scheduled to be held on Dec. 16, 2019, before United States District Judge Staci
M. Yandle at the federal courthouse in Benton, Illinois.The investigation is being conducted by the FBI and the Centralia Police Department.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
California Entrepreneur Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California woman became the ninth parent to be sentenced in connection with the college admissions case.
Marjorie Klapper, 50, of Menlo Park, Calif., was sentenced by U.S. District Court Judge Indira Talwani to three weeks in prison, one year of supervised release, ordered to complete 250 hours of community service and to pay a fine of $9,500. In May 2019, Klapper pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of four months in prison, one year of supervised release and a fine of $20,000.
“This defendant paid $15,000 to arrange for her son to cheat on the ACT and then falsely claimed on his college applications that he was Black or Latino,” said United States Attorney Andrew E. Lelling. “Ms. Klapper thereby not only corrupted the standardized testing system, but also specifically victimized the real minority applicants already fighting for admission to elite schools. We respectfully disagree that a three-week sentence is a sufficient sanction for this misconduct.”
Beginning in the 2017, Klapper conspired with William “Rick” Singer and others to have her son’s ACT exam corrected, thereby fraudulently inflating the score. As part of the scheme, Klapper took steps to secure extended time for her son to take the ACT and to take the exam at a test center in West Hollywood that Singer “controlled” through the center’s corrupt administrator, Igor Dvorskiy. After Klapper’s son completed the exam on Oct. 28, 2017, co-conspirator Mark Riddell corrected his answers. As a result of the cheating scheme, Klapper’s son received a score of 30 out of 36 on the exam. In November 2017, Klapper made a purported charitable donation of $15,000 to Singer’s sham charity, Key Worldwide Foundation to pay for the fraud.
In addition, Klapper conspired with Singer to falsify her son’s college applications by claiming that he was African-American and of Hispanic/Latino origin in an attempt to further improve his odds of admission by claiming minority status. Klapper also falsely represented that neither she nor her husband had attended college in order to bolster her son’s college prospects.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Brownsville area attorney fined and sent to prisonRead the Press Release
HOUSTON – A 70-year-old Brownsville attorney has been ordered to federal prison following his conviction of failing to file a financial reporting form as required when operating a trade or business, announced U.S. Attorney Ryan K. Patrick. Guillermo Vega Jr. pleaded guilty May 23, 2018.
Today, U.S. District Judge Andrew S. Hanen ordered Vega to serve a total of 13 months in prison immediately followed by three years of supervised release. The court also imposed a $100,000 fine and restitution payable to the IRS for unpaid taxes Vega earned as part of his legal practice. At the hearing, the court heard additional evidence regarding Vega’s attempt to obstruct justice by tampering with a witness. In handing down the sentence, the court found Vega abused the public trust because of his special skill as an attorney. Judge Hanen also noted other government and legal forms he filed in the course of his representation of criminal defendants.
At the time of the plea, the court heard that on March 21, 2011, Vega received $25,000 in cash related to a single sale while operating as a trade or business, namely the Law Office of Guillermo Vega Jr.
The money was intended for the representation of Heriberto Bazan on federal charges of attempting to transport ammunition into Mexico. Vega did not file the appropriate FinCEN Form in relation to the transaction. A FinCEN Form 8300 is a reporting requirement when a trade or business receives cash in excess of $10,000.
As part of the plea agreement, Vega agreed that he will make full restitution on the tax loss, totaling $126,253.
Vega was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Jody Young and Karen Betancourt are prosecuting the case.
Brownsville Man Sentenced on Child Pornography ChargeRead the Press Release
BROWNSVILLE, Texas – A 43-year old U.S. citizen has been ordered to federal prison following his admission that he possessed child pornography, announced U.S. Attorney Ryan K. Patrick. Donavan Lyle Herrera pleaded guilty Feb. 6, 2019.
Today, U.S. District Judge Rolando Olvera Jr. sentenced Herrera to 121 months of federal imprisonment. He will also serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Herrera will also be ordered to register as a sex offender. A hearing will be held at a later date to determine restitution.
On or about Oct. 19, 2018, law enforcement initiated an investigation of child pornography sharing which led them to Herrera’s address in Brownsville. On Nov. 15, 2018, authorities executed a search warrant at Herrera’s home at which time they seized a computer and other digital devices. A forensic analysis resulted in the discovery of approximately 41 images and 81 videos of child pornography.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Broward County Resident Charged with Six Armed RobberiesRead the Press Release
A Broward County resident has been charged with six armed robberies.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Gregory Tony, Sheriff, Broward Sheriff’s Office (BSO), and Anthony W. Rosa, Chief, Sunrise Police Department, made the announcement.
Dwight Courtney Grinion, 25, of Ft. Lauderdale, Florida, has been charged by indictment with six counts of Hobbs Act robbery, in violation of Title 18, United States Code, Section 1951(a); one count of discharging a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii); and five counts of brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii) (Case No. 19-CR-60115-WPD). If convicted of the charged offenses, the defendant faces: 20 years in prison for each Hobbs Act robbery; life in prison for discharging a firearm in furtherance of a crime of violence, with a mandatory consecutive term of 10 years in prison; and life in prison for brandishing a firearm in furtherance of a crime of violence, with a mandatory consecutive term of 7 years in prison.
According to the court record, including allegations contained in the criminal complaint and indictment, Grinion robbed six commercial establishments at gunpoint between March 22, 2019 and April 24, 2019. During the first robbery, on March 22, 2019, at a Subway in Ft. Lauderdale, Grinion discharged a revolver. The last robbery, on April 24, 2019, occurred at Designers Jewelry Collection, a jewelry store at the Sawgrass Mills Mall in Sunrise, Florida, and involved the brandishing of a revolver, the same kind of gun used in the other five robberies. During the last robbery, Grinion is alleged to have pointed a firearm at an employee of the jewelry store and stolen a gold bracelet worth approximately $2,500.
All of the victim companies purchase products in interstate commerce and sell products to customers throughout the United States and abroad.
An indictment and criminal complaint merely contain charging accusations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF, the Broward Sheriff’s Office and Sunrise Police Department in this matter. This case is being prosecuted by Assistant U.S. Attorney Robert Juman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brookings Man Charged with Distribution and Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Brookings, South Dakota, man has been indicted by a federal grand jury for Distribution and Receipt of Child Pornography.
Tyler Powers, age 25, was indicted on October 8, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 11, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 30, 2019, Powers knowingly received and distributed, and attempted to receive and distribute, child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce, using a computer.
The charge is merely an accusation and Powers is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Powers was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for December 17, 2019.
Armed drug trafficker/gang member sent to prisonRead the Press Release
CORPUS CHRISTI, Texas - A 39-year-old Corpus Christi resident and Texas Syndicate member has been ordered to federal prison for trafficking cocaine and possessing a firearm, announced U.S. Attorney Ryan K. Patrick. John Mendez aka John Manuel Mendez pleaded guilty May 31.
Today, U.S. District Judge Nelva Gonzales Ramos handed Mendez an 18-month sentence for the drug charges. He also received an additional 60 months for the firearms offense which must be served consecutively for a total sentence of 78 months in federal prison. The sentence will be immediately followed by five years of supervised release. In handing down the sentence, the court noted the defendant’s extensive criminal history.
From approximately May 1 - Aug. 25, 2018, Mendez was involved in a cocaine conspiracy. On June 25, 2018, local law enforcement conducted a routine traffic stop which resulted in the discovery of cocaine and marijuana. They also found two firearms - a .40 caliber rifle in the vehicle’s front seat and a .357 caliber handgun found on the ground near the vehicle.
He was released on bond, during which time another traffic stop led to the discovery that Mendez possessed additional cocaine for distribution. Social media evidence also demonstrated extensive drug trafficking and firearms activity.
Mendez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Dylan Kenneth Cox, 24, of Daphne, Alabama, was sentenced this morning in federal court on drug and gun charges. Cox pled guilty to the two charges-- using, carrying and possessing a firearm in furtherance of or in relation to a drug trafficking felony, and possession with intent to distribute marijuana and alprazolam (commonly known as Xanax) – during July of 2019.
United States District Court Judge Jeffrey U. Beaverstock imposed a sentence of one day on the marijuana count, which had resulted in an advisory guideline range of 0 to 6 months imprisonment. On the gun count, Judge Beaverstock imposed a sentence of 60 months, and ordered that it run consecutive to the one-day sentence for the drug charge. The judge also ordered that Cox will serve a total of five years on supervised release following his incarceration, during which he will receive mental health and drug abuse treatment. No fine was imposed, but the judge ordered that the defendant pay the special mandatory assessments of $200.
The case was investigated by the Daphne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Another Tech Support Fraudster Sentenced to PrisonRead the Press Release
An American citizen who spent over a year running the day-to-day operations of a fraudulent tech support call center in Costa Rica is heading to prison. Michael Cary Lawing, 34, of Lincolnton, North Carolina, has been sentenced to serve 18 months behind bars for his role as the CEO of ABC
Repair Tech (ABC) from 2015 to 2016. Lawing pleaded guilty in October 2018 to a one-count felony information charging him with conspiracy to commit wire fraud.According to court documents, Lawing’s company was affiliated with another fraudulent tech support business in South Florida known as First Choice Tech Support, which later changed its name to
Client Care Experts (CCE). Both ABC and CCE purchased pop-up advertisements that would appear suddenly on a person’s computer screen. The pop-ups were made to look like system warnings and falsely informed the victims that serious problems, such as viruses or malware, had been detected on their computers. Often, the pop-ups caused the person’s internet browser to freeze up and stop responding. The pop-ups also typically warned the victims not to shut down their computers or else they would lose all their data. Instead, the ads directed them to call a toll-free number, where they were connected to sales representatives who continued the fraud.The sales representatives at ABC and CCE would convince the victims to grant them remote access to their computers, where normal computer functions and routine processes were highlighted as evidence of serious computer problems. Victims were never told that the pop-ups that had hijacked their computers were just advertisements purchased by the tech support company, or that in most instances they could make the pop-ups go away simply by rebooting their computers. Instead, they were sold remote “tune-ups” for $250 and anti-virus protection software for another $400. If victims balked at the steep prices, the sales representatives would offer them a discount for being a senior citizen or a military veteran or something else.
From 2013-2016, the two companies – CCE and ABC – combined to defraud more than 40,000 people.
Victims were located in all 50 States, the District of Columbia, Puerto Rico, several
U.S. territories, all 10 Canadian provinces, the United Kingdom, and several other foreign countries. At least 57 victims of the scams were residents of the Southern District of Illinois, representing 22 of the district’s 38 counties, including St. Clair and Madison. All told, the two companies took in over $25 million.In handing down the 18-month sentence, Chief United States District Judge Nancy J. Rosenstengel explained that the need to deter other would-be scammers was a “big factor” in her decision. “The general public needs to see that this kind of crime is taken seriously,” she said.
As part of his sentence, Lawing was ordered to pay back over $266,000 in restitution to ABC victims
– a figure that represents ten percent of the roughly $2.6 million in actual losses incurred by over 10,000 victims during Lawing’s tenure as the company’s top executive. Evidence presented in court showed that Lawing himself made only about $90,000 from the scam. The bulk of ABC’s fraudulent earnings were reportedly reinvested in the company.Lawing’s sentence comes just one week after CCE’s Vice President, Grand Clark Wasik, 36, of Oakland
Park, Florida, was sentenced to 125 months in prison and ordered to pay over $10 million in restitution. Wasik pled guilty to count one of a 14-count superseding indictment earlier this year.
Two former owners of CCE, Michael Austin Seward, 32, of Deerfield Beach, Florida, and Kevin James
McCormick, 46, of Delray Beach, Florida, also pled guilty to their role in the conspiracy and are due to be sentenced on November 18. The Honorable Joe Billy McDade from the Central District of
Illinois, who presided over Wasik’s case, will also conduct the sentencings of Seward and
McCormick.Since April 2017, 14 other employees of CCE and ABC have also pleaded guilty to federal fraud violations in the Southern District of Illinois:
• Joseph Ralph Aievoli, IV, 26, of Boynton Beach, FL – Salesperson at CCE
• Cory Steven Bachman, 26, of Boynton Beach, FL – Salesperson at CCE
• Andrew Douglas Broad, 27, of Boynton Beach, FL – Director of Training at CCE
• Ryan Stocker Carr, 24, of Mount Laurel, NJ – Team Leader at CCE
• Joshua Dennis Cortez, 38, of Lake Worth, FL – Director of Training at CCE
• Erica Marie Crowell, 30, of Maple Shade, NJ – Salesperson at CCE
• Nicholas James Davidson, 27, of Boynton Beach, FL – Salesperson at CCE
• Patrick M. Dougherty, 36, of Boynton Beach, FL – Salesperson at CCE
• Tatum Elyse Espenshade, 27, of West Palm Beach, FL – Salesperson at CCE
• Eric M. Iannaccone, 33, of Monroe Township, NJ – Sales Manager at CCE
• Anthony Vincent Ludena, 30, of Boca Raton, FL – Salesperson at CCE
• Robert Thomas McCart, 33, of Boynton Beach, FL – Team Leader at CCE
• Timothy James Miller, II, 28, of Schwenksville, PA – Salesperson at CCE
• Jonathan Matthew Richardson, 28, of Lake Worth, FL – Salesperson at CCE
• Kyle Evan Swinson, 27, of Boynton Beach, FL – Team Leader at ABC/CCE
Date Defendant Prison Sentence Restitution Mar. 8, 2018 Ryan Carr 12 months + 1 day $20,384.36 May 7, 2018 Joshua Cortez 18 months $3,034.00 June 8, 2018 Patrick Dougherty 12 months + 1 day $240,966.94 June 14, 2018 Anthony Ludena 12 months + 1 day $176,692.26 June 29, 2018 Nicholas Davidson 5 years probation $181,808.40 July 26, 2018 Timothy Miller 5 years probation + 200 hours
Eleven of these additional defendants have been sentenced already:
community service $127,042.06 Aug. 3, 2018 Tatum Espenshade 1 day + 18 months home detention $132,683.68 Sept. 11, 2018 Andrew Broad 12 months + 1 day $55,238.28 Sept. 20, 2018 Jonathan Richardson 12 months + 1 day $78,638.99 Oct. 4, 2018 Cory Bachman 1 day $156,806.25 Oct. 10, 2019 Joseph Aievoli 1 day $106,355.82
Because the crimes allegedly took place in connection with telemarketing and victimized 10 or more persons over the age of 55, the maximum punishment in each case is 30 years imprisonment. The defendants could also be ordered to serve up to five years of supervised release and pay a fine of up to $250,000. Under federal law, restitution to identified victims is mandatory.These cases are part of an ongoing investigation by the St. Louis Field Office of the Chicago
Division of the United States Postal Inspection Service and are being prosecuted by Assistant
United States Attorneys Nathan D. Stump, Scott A. Verseman, and Ranley R. Killian.The Florida Attorney General’s Office raided CCE in June 2016 and has been cooperating with the federal investigation, in addition to bringing its own civil enforcement action against CCE under
Florida state law.The Federal Trade Commission has been working for some time to shut down illegal tech support scams. For more information about the FTC’s “2019 Tech Support Takedown,” please visit https://www.consumer.ftc.gov/blog/2019/03/ftcs-tech-support-takedown-2019.
Some consumers who were victimized by ABC or CCE / First Choice Tech Support have received additional fraudulent calls. These calls typically come from companies claiming either
(a) that the technical support the victims purchased has been transferred to them and additional funds are now needed; or (b) that they can help the victims obtain a refund. Victims should be advised that no companies have been authorized to provide them with any tech support services on behalf of ABC or CCE / First Choice Tech Support, or to provide them with a refund for any previous purchases.Aliquippa Felon Sentenced to 10 Years for Illegally Possessing Fentanyl and a Stolen PistolRead the Press Release
PITTSBURGH, Pa. – A former resident of Beaver County, Pennsylvania, has been sentenced in federal court to serve a total sentence of 10 years’ imprisonment on his conviction for violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Landon Alexander Gatta, age 24, formerly of Aliquippa, for the crimes of possession with intent to distribute 40 grams or more of fentanyl, possession of a firearm and ammunition by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime.
According to information presented to the Court, on November 5, 2018, the Pennsylvania State Police Bureau of Criminal Investigation Unit served a search warrant at the Defendant’s residence located on McLean Street in Aliquippa, Beaver County, Pennsylvania, as part of an ongoing narcotics investigation. There, investigators recovered approximately fifty (50) grams of a fentanyl-heroin mixture, a large sum of U.S. currency, and a loaded, stolen .40 caliber semi-automatic Glock pistol, which Gatta admitted to possessing in furtherance of the charged drug trafficking crime. Federal law prohibits Gatta, a felon previously convicted in the Court of Common Pleas of Allegheny County of the crime of possession with intent to distribute heroin, from possessing a firearm or ammunition.
The Court further ordered that following the Defendant’s release from incarceration, he be placed on a term of supervised release for a period of four years and that certain property be forfeited to the United States, namely the seized .40 caliber Glock pistol, the .40 caliber ammunition, and approximately $70,000 in U.S. Currency that was recovered by the Pennsylvania State Police during the investigation.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Pennsylvania State Police Bureau of Criminal Investigation Unit for the investigation leading to the successful prosecution of Landon Gatta.
Alabama Man Pleads Guilty to Enticing a Minor for SexRead the Press Release
KANSAS CITY, Mo. – An Alabama man pleaded guilty in federal court today to enticing a 16-year-old victim, whom he met through the “Game of War” application on her cell phone, to engage in illegal sexual activity.
James Reece Vance, 46, of Madison, Ala., pleaded guilty before U.S. Chief District Judge Beth Phillips.
The investigation began when the child victim’s father discovered emails between Vance and his daughter. The emails, from March 7 through May 8, 2017, contained numerous exchanges where she and Vance discussed getting together, having sexual intercourse, and future plans to get married. The child victim told investigators she met Vance through the “Game of War” application on her cell phone. Vance drove to Kansas City twice during April 2017 to meet the child victim for sex.
Under federal statutes, Vance is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."19-year-old sentenced as drug dealer in meth trafficking schemeRead the Press Release
CORPUS CHRISTI, Texas – A 19-year-old Beeville resident has been ordered to federal prison following his conviction of possession with intent to distribute meth, announced U.S. Attorney Ryan K. Patrick.
Margarito Keller pleaded guilty May 30.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Keller to 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional testimony that Keller has been involved with using, possessing and distributing drugs since he was 14. In handing down the sentence, the court noted Keller’s age, but that the law demanded the sentence imposed.
On Nov. 15, 2018, authorities took Keller into custody for distributing a controlled substance. During that arrest, law enforcement officers observed a portable safe next to Keller in his vehicle.
Upon inspection, they recovered several baggies containing a total of approximately 55 grams of meth, most of which was considered “pure.” They also recovered a loaded Taurus .38 caliber pistol and a digital scale.
Keller admitted the meth, weapon and scale all belonged to him.
The Drug Enforcement Administration conducted the investigation in conjunction with the Beeville Police Department. Assistant U.S. Attorney Vincent Tang prosecuted the case.
15 October 2019
Wichita Man Sentenced for Threatening Operation Rescue workerRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced today to 12 months and a day in prison for threatening an employee of the pro-life organization Operation Rescue, U.S. Attorney Stephen McAllister said.
Christopher M. Thompson, 22, Wichita, Kan., pleaded guilty of one count of making a threat. In his plea, he admitted making three phone calls to Operation Rescue in one day containing threats against the group’s employees.
McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Wichita Lawyer Pleads GuiltyTo Being Involved in CyberattackRead the Press Release
WICHITA, KAN. – A Wichita lawyer was sentenced today after pleading guilty to being involved in a cyberattack, U.S. Attorney Stephen McAllister said. He was ordered to pay a $375,000 fine and restitution of $55,200.
Bradley A. Pistotnik, 63, Wichita, Kan., pleaded guilty to three counts of being an accessory after the fact to making an extortionate threat over the internet. In his plea, Pistotnik admitted he was contacted by attorneys from the legal firm Jaburg Wilk and Ripoff Report regarding cyberattacks launched against Ripoff Report, Jaburg Wilk and Leagle. He falsely denied knowing anything about the attacks.
In fact, Pistotnik knew co-defendant David Dorsett had initiated a flood of emails against the servers used by Leagle, RipoffReport and Jaburg Wilk. Dorsett had met previously with Pistonik offering web design and reputation management services. Dorsett sent emails demanding the removal of information that reflected badly on Pistotnik from their web sites. In one of the threatening emails, Dorsett said, “… if you don’t remove it we will begin targeting your advertisers…”
McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
U.S. Attorney Appoints Decorated LMPD Officer as District’s New Law Enforcement CoordinatorRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman announced today the appointment of Sergeant Eric Black (Retired), previously of the Louisville Metro Police Department (LMPD), as the U.S. Attorney’s new Law Enforcement Coordinator for the Western District of Kentucky.
“We back the blue, both because our culture seeks to be humble partners with law enforcement and pursuant to one of the very first executive orders from President Trump,” said U.S. Attorney Russell Coleman. “I could not be more pleased that one of Louisville’s Finest, Sgt. Eric Black, will be an important part of furthering our mission of reducing violent crime in this city and helping federal law enforcement to be relevant in all 53 counties of our district.”
Prior to his recent retirement from LMPD, Sgt. Black led a multi-agency High Intensity Drug Trafficking Area (HIDTA) Drug Task Force, which included detectives from LMPD, the Jefferson County Sheriff’s Office, and the Kentucky State Police. To honor his leadership in this role, the four-state Appalachia HIDTA comprised of Kentucky, Tennessee, Virginia, and West Virginia named Sgt. Black its 2018 Task Force Officer of the Year. Black held previous assignments as the commander of LMPD’s Robbery Unit, Commander of an LMPD Narcotics Street Platoon, and a Detective with an LMPD Major Case Unit. Sgt. Black was initially hired as a Police Officer with the Jefferson County Police Department in 1995.
As Law Enforcement Coordinator and part of the U.S Attorney’s leadership team, Sgt. Black’s duties will involve advising the U.S. Attorney on state and local law enforcement issues throughout the 53 counties comprising the Western District of Kentucky which stretches from suburban Louisville to the river counties west of Paducah. Black will also serve as a liaison and conduit for state and local law enforcement agencies to bring cases for possible federal prosecution, with an emphasis on reduction of violent crime.
Previous Western District of Kentucky Law Enforcement Coordinators have included Jeremy Thompson, now Chief of the Elizabethtown (KY) Police Department, and Brett Hightower, now Warren County (KY) Sheriff.
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Two New Jersey Men Sentenced to Prison for Bribing Mail Carriers to Steal Credit CardsRead the Press Release
NEWARK, N.J. – Two New Jersey men were sentenced today to prison terms for their roles in a scheme to bribe mail carriers to steal credit cards from the mail, U.S. Attorney Craig Carpenito announced.
Olagoke Araromi, 22, of Union, New Jersey, was sentenced to 61 months in prison. He previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a three-count information charging him with bribery of U.S. Postal Service (USPS) mail carriers, bank fraud and aggravated identity theft.
Moussa Dagno, 24, of Harrison, New Jersey, was sentenced to 57 months in prison. He previously pleaded guilty before Judge Hayden to an information charging him with one count each of bribery of USPS mail carriers and employees, bank fraud and aggravated identity theft. Judge Hayden imposed both sentences today in Newark federal court.
According to documents filed in the case and statements made in court:
Araromi and Dagno recruited at least a half dozen USPS mail carriers and employees to steal credit cards from the mail in exchange for cash bribes, typically $100 per stolen card. Once Araromi had taken possession of the stolen credit cards and activated them, he and Dagno would use the cards to purchase high-end electronics and clothing at various retail stores throughout New Jersey. In February 2018, law enforcement seized six laptops and a smartphone from the Harrison residence then shared by Araromi and Dagno, all of which had been purchased with the stolen credit cards.
Several USPS employees who accepted bribes from Araromi and Dagno have already pleaded guilty to bribery charges, including: former mail carriers Zenobia Gilmer, Ayesha Troztz and Kyanne Costley, who had delivery routes in Mt. Arlington, East Orange and Elizabeth, New Jersey; and Jennel Williams, who formerly worked as a clerk in the Newark Main Post Office. All four admitted to stealing credit cards from the mail and delivering them to Araromi or Dagno in exchange for payments, and all are awaiting sentencing. A fifth mail carrier from Jersey City, Jacquan Miller, has been charged by complaint for his role in the scheme.
In addition to the prison term, Judge Hayden sentenced Araromi and Dagno to five years of supervised release and ordered restitution of $87,503 for Olagoke and $84,573 for Araromi.
U.S. Attorney Carpenito credited special agents with the USPS Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Jihee G. Suh of the U.S. Attorney’s Special Prosecutions Division in Newark.
The charges and allegations against Jacquan Miller are merely accusations, and he is presumed innocent unless and until proven guilty.
Two Men Plead Guilty to Meth DistributionRead the Press Release
HUNTINGTON, W.Va. – Two men pled guilty today to possession with intent to distribute methamphetamine before United States District Judge Robert C. Chambers in Huntington, announced United States Attorney Mike Stuart.
“Law enforcement officers are finding meth dealers in every county in my District,” said United States Attorney Mike Stuart. “And we’re prosecuting them in record numbers.”
Johnny Belcher, Jr., 35, of Huntington, admitted that on July 17, 2019, officers found approximately 24 grams of methamphetamine in his pockets. Belcher told the officers the substance was “ice.” The Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
In a separate case, Walter Ray Cavender, age 50, of Mason County, admitted that on May 16, 2018, officers served a search warrant at his home on Evans Road in Leon, Mason County, West Virginia. At the time they served the search warrant, Cavender had approximately 300 grams of methamphetamine in his home which he intended to sell. He also had digital scales and approximately $1300 in cash. The Mason County Sheriff’s Department conducted the investigation. Assistant United States Attorney Greg McVey is handling the prosecution.
Belcher faces up to 20 years in prison and Cavender faces up to 40 years in prison when sentenced on January 21, 2020.
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Two International Shipping Companies Pay $1.8 Million for Failing to Notify the Coast Guard of a Hazardous Vessel Condition and Concealing Vessel Oil PollutionRead the Press Release
Two shipping companies incorporated in Liberia pled guilty today in federal court in Wilmington, Delaware, to failing to notify the U.S. Coast Guard of a hazardous condition on one if its vessels and to violating the Act to Prevent Pollution from Ships (APPS) by presenting false documents to the Coast Guard that covered up vessel oil pollution.
Jeffrey Bossert Clark, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and David C. Weiss, U.S. Attorney for the District of Delaware announced the plea agreement. The agreement includes a $1.8 million dollar criminal penalty.
Defendants Nederland Shipping Company and Chartworld Shipping Company are the owner and operator of the 13,049 gross ton, ocean-going, refrigerated cargo/container vessel called the M/V NEDERLAND REEFER. Large ships like the M/V NEDERLAND REEFER generate oil-contaminated bilge waste when water mixes in the bottom or bilges of the ship with oil that has leaked from the ship’s engines and other areas. This waste must be processed to separate the water from the oil and other wastes by using pollution prevention equipment, including an Oily Water Separator (OWS), before being discharged into the sea. APPS requires that the disposal of the ship’s bilge waste be recorded in the ship’s Oil Record Book (ORB).
The investigation began on Feb. 21, 2019, when the Coast Guard’s Marine Safety Detachment out of Lewes, Delaware, conducted a Port State Control Examination of the M/V NEDERLAND REEFER. During the course of the inspection, the Coast Guard determined that the vessel’s Chief Engineer, Vasileios Mazarakis, had been repeatedly tricking the oil content monitoring device on the vessel’s OWS with fresh water thereby discharging untreated oily bilge water overboard at sea. Mazarakis then falsified the vessel’s ORB to conceal these illegal discharges from the Coast Guard.
On Oct. 2, 2019, Chief Engineer Vasileios Mazarakis pled guilty to a violation of the APPS for his falsification of the ORB. As part of his guilty plea, Mazarakis also admitted that he took various actions to obstruct the Coast Guard’s investigation, including destruction of evidence and witness tampering.
The Coast Guard’s investigation also determined that on Dec. 30, 2018, seawater began entering the vessel below the waterline through a hole in the vessel’s Bilge Holding Tank. This compromise of the hull’s integrity and the temporary repairs thereto, constituted a hazardous condition that Defendants failed to report to the Coast Guard.
Under the plea agreement, the companies will be placed on a four-year term of probation that includes a comprehensive environmental compliance plan to ensure, among other things, that ships operated by Chartworld entering the United States fully comply with all applicable national and international marine environmental protection laws. The compliance plan will be implemented by an independent auditing company and supervised by a court-appointed monitor.
Trial Attorneys David P. Kehoe and Stephen Da Ponte at the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorney Edmund Falgowski of the District of Delaware prosecuted the case. The case was investigated by the Coast Guard’s Investigative Service.
Two Dominican Nationals Charged with Distributing FentanylRead the Press Release
BOSTON – Two Dominican nationals were indicted today in federal court in Boston with distributing fentanyl.
Jose Guerrero-Soto, 25, and Yokasta Aybar-Soto, 26, both of the Dominican Republic, were indicted on distribution of and possession with intent to distribute 40 grams or more of fentanyl, as well as on conspiracy to distribute and to possess with intent to distribute 40 grams of more of fentanyl. Guerrero-Soto and and Aybar-Soto were initially charged by criminal complaint and have been in custody since Sept. 12, 2019.
The indictments allege that Guerrero-Soto and Aybar-Soto sold over 40 grams of fentanyl to an undercover officer in Lawrence on Sept. 12, 2019.
The charging statutes provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Massachusetts Attorney General Maura Healey; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney James R. Drabick of Lelling’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Chinese Nationals Charged with Stock Spoofing ConspiracyRead the Press Release
BOSTON – Two Chinese nationals were charged today for their alleged participation in a complex market manipulation conspiracy.
Xiaosong Wang, 31, and Jiali Wang, 41, both of the People’s Republic of China, were charged with one count of conspiracy to commit securities fraud. Jiali Wang was arrested yesterday evening at Logan International Airport as he was boarding a flight to Beijing. Xiaosong Wang was arrested at a home he owns in Upton, Mass. Both defendants will appear in U.S. District Court in Boston today at 3:00 p.m.
According to the criminal complaint, Xiaosong Wang, Jiali Wang, and others conspired and engaged in a coordinated stock manipulation scheme that artificially influenced the prices of publicly traded securities by making others in the market believe that there was trading interest and activity in particular stocks. In reality, no such interest or trading activity existed, and the defendants profited from the price movements they caused.
The alleged scheme targeted “thinly-traded” securities, which are securities with a low trading volume that are volatile and highly responsive to buying/selling activity. The defendants are alleged to have placed (or coordinated the placement of) thousands of non-bona fide purchase/sell orders in order to move stock prices up or down. After the prices moved and the defendants purchased/sold the securities at the artificially higher/lower prices, the initial orders were cancelled. Defendants and their co-conspirators are alleged to have profited millions of dollars as a result of the stock price spoofing scheme.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Valuable assistance was provided by the Securities and Exchange Commission. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit and Assistant U.S. Attorney David D’Addio of Lelling’s Cybercrime Unit are prosecuting the case.
The details contained in charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Cedar Rapids Felons on Way to Shooting Range Sentenced to Federal Prison for Possessing a GunRead the Press Release
Two Cedar Rapids men, responsible for possessing a gun when they were prohibited from doing so, were sentenced October 10, 2019. Jontreyvius Richmond was sentenced to 24 months in prison and Darnell Henderson was sentenced to 31 months in prison.
Jontreyvius Richmond, age 21, from Cedar Rapids, Iowa, and Darnell Henderson, age 23, received the prison sentences after June 10, 2019 guilty pleas to possession of a firearm by a felon.
Information disclosed at sentencing and at their plea hearings showed that
in October 2018, Richmond, Henderson, and another man were travelling to a firing range near Solon, Iowa, to shoot a gun they had in the car. Richmond was driving. Police conducted a traffic stop on the car. Officers could smell marijuana and see marijuana in the car. Officers searched the care and located a .22 caliber rifle and ammunition in the trunk. Richmond admitted that he had recently smoked marijuana and that he and his friends were travelling to the firing range to shoot the rifle. The gun had been in the passenger compartment of the car prior to officers stopping it, but as they were being pulled over, the occupants passed it back to the trunk.
Richmond has a prior carrying weapons conviction. He also has a felony conviction for extortion. Henderson has a prior felony conviction for possession with intent to deliver a controlled substance.
Richmond and Henderson were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Richmond was sentenced to 24 months’ imprisonment. Henderson was sentenced to 31 months’. Both were ordered to make payment of $100 to the special assessment fund. Both must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery. This case was brought as part of Project Safe Neighborhoods (PSN) through a cooperative effort of the Johnson County Sheriff’s Office, Cedar Rapids Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, and Firearms. 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00041.
Follow us on Twitter @USAO_NDIA.
Turkish Bank Charged in Manhattan Federal Court for Its Participation in a Multibillion-Dollar Iranian Sanctions Evasion SchemeRead the Press Release
The Department of Justice announced that TÜRKİYE HALK BANKASI A.S., aka “Halkbank,” was charged today in a six-count indictment with fraud, money laundering, and sanctions offenses related to the bank’s participation in a multibillion-dollar scheme to evade U.S. sanctions on Iran. The case is assigned to United States District Judge Richard M. Berman.
“Halkbank, a Turkish state-owned bank, allegedly conspired to undermine the United States Iran sanctions regime by illegally giving Iran access to billions of dollars’ worth of funds, all while deceiving U.S. regulators about the scheme,” said Assistant Attorney General for National Security John C. Demers. “This is one of the most serious Iran sanctions violations we have seen, and no business should profit from evading our laws or risking our national security.”
“The facts that emerged at the full, fair, and public trial of Halkbank’s deputy general manager, which culminated in a jury’s January 2018 guilty verdict against him, illustrated senior Halkbank management’s participation in this brazen scheme to circumvent our nation’s Iran sanctions regime," said U.S. Attorney Geoffrey S. Berman. "As alleged in today’s indictment, Halkbank’s systemic participation in the illicit movement of billions of dollars’ worth of Iranian oil revenue was designed and executed by senior bank officials. The bank’s audacious conduct was supported and protected by high-ranking Turkish government officials, some of whom received millions of dollars in bribes to promote and protect the scheme. Halkbank will now have to answer for its conduct in an American court.”
“As we allege today, Halkbank, a Turkish financial institution whose majority shareholder is the government of Turkey, willfully engaged in deceptive activities designed to evade U.S. sanctions against Iran," said FBI Assistant Director-in-Charge William F. Sweeney Jr. "Halkbank illegally facilitated the illicit transfer of billions of dollars to benefit Iran, and for far too long the bank and its leaders willfully deceived the United States to shield their actions from scrutiny. That deception ends today. The FBI will aggressively pursue those who intentionally violate U.S. sanctions laws and attempt to undercut our national security.”
According to the allegations in the indictment, returned today in Manhattan federal court:
From approximately 2012, up to and including approximately 2016, TÜRKİYE HALK BANKASI A.S. (Halkbank) was a foreign financial institution organized under the laws of and headquartered in Turkey. The majority of Halkbank’s shares are owned by the Government of Turkey. Halkbank and its officers, agents, and co-conspirators directly and indirectly used money service businesses and front companies in Iran, Turkey, the United Arab Emirates, and elsewhere to violate and to evade and avoid prohibitions against Iran’s access to the U.S. financial system, restrictions on the use of proceeds of Iranian oil and gas sales, and restrictions on the supply of gold to the Government of Iran and to Iranian entities and persons. Halkbank knowingly facilitated the scheme, participated in the design of fraudulent transactions intended to deceive U.S. regulators and foreign banks, and lied to U.S. regulators about Halkbank’s involvement.
High-ranking government officials in Iran and Turkey participated in and protected this scheme. Some officials received bribes worth tens of millions of dollars paid from the proceeds of the scheme so that they would promote the scheme, protect the participants, and help to shield the scheme from the scrutiny of U.S. regulators.
The proceeds of Iran’s sale of oil and gas to Turkey’s national oil company and gas company, among others, were deposited at Halkbank, in accounts in the names of the Central Bank of Iran, the National Iranian Oil Company (NIOC), and the National Iranian Gas Company. During the relevant time period, Halkbank was the sole repository of proceeds from the sale of Iranian oil by NIOC to Turkey. Because of U.S. sanctions against Iran and the anti-money laundering policies of U.S. banks, it was difficult for Iran to access these funds in order to transfer them back to Iran or to use them for international financial transfers for the benefit of Iranian government agencies and banks. As of in or about 2012, billions of dollars’ worth of funds had accumulated in NIOC and the Central Bank of Iran’s accounts at Halkbank.
Halkbank participated in several types of illicit transactions for the benefit of Iran that, if discovered, would have exposed the bank to sanctions under U.S. law, including (i) allowing the proceeds of sales of Iranian oil and gas deposited at Halkbank to be used to buy gold for the benefit of the Government of Iran; (ii) allowing the proceeds of sales of Iranian oil and gas deposited at Halkbank to be used to buy gold that was not exported to Iran, in violation of the so-called “bilateral trade” rule; and (iii) facilitating transactions fraudulently designed to appear to be purchases of food and medicine by Iranian customers, in order to appear to fall within the so-called “humanitarian exception” to certain sanctions against the Government of Iran, when in fact no purchases of food or medicine actually occurred. Through these methods, Halkbank illicitly transferred approximately $20 billion worth of otherwise restricted Iranian funds.
Senior Halkbank officers acting within the scope of their employment and for the benefit of Halkbank concealed the true nature of these transactions from officials with the U.S. Department of the Treasury so that Halkbank could supply billions of dollars’ worth of services to the Government of Iran without risking being sanctioned by the United States and losing its ability to hold correspondent accounts with U.S. financial institutions.
The purpose and effect of the scheme in which Halkbank participated was to create a pool of Iranian oil funds in Turkey and the United Arab Emirates held in the names of front companies, which concealed the funds’ Iranian nexus. From there, the funds were used to make international payments on behalf of the Government of Iran and Iranian banks, including transfers in U.S. dollars that passed through the U.S. financial system in violation of U.S. sanctions laws.
Halkbank is charged with (1) conspiracy to defraud the United States, (2) conspiracy to violate the International Emergency Economic Powers Act (IEEPA), (3) bank fraud, (4) conspiracy to commit bank fraud, (5) money laundering, and (6) conspiracy to commit money laundering.
The Department of Justice has previously charged nine individual defendants, including bank employees, the former Turkish Minister of the Economy, and other participants in the scheme. See S4 15 Cr. 867 (RMB). On Oct. 26, 2017, Reza Zarrab pled guilty to the seven counts with which he was charged. On Jan. 3, 2018, a jury convicted former Halkbank deputy general manager Memet Hakkan Atilla of five of the six counts with which he was charged, following a five-week jury trial. The remaining individual defendants are fugitives.
Assistant Attorney General Demers and U.S. Attorney Berman praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
This case is being handled by the Office’s Terrorism and International Narcotics Unit and Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Michael D. Lockard, Sidhardha Kamaraju, David W. Denton Jr., Jonathan Rebold, and Kiersten Fletcher are in charge of the prosecution.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Turkish Bank Charged in Manhattan Federal Court for Its Participation in A Multibillion-Dollar Iranian Sanctions Evasion SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, and William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that TÜRKİYE HALK BANKASI A.S., a/k/a “Halkbank,” was charged today in a six-count Indictment with fraud, money laundering, and sanctions offenses related to the bank’s participation in a multibillion-dollar scheme to evade U.S. sanctions on Iran. The case is assigned to United States District Judge Richard M. Berman.
U.S. Attorney Geoffrey S. Berman stated: “The facts that emerged at the full, fair, and public trial of Halkbank’s deputy general manager, which culminated in a jury’s January 2018 guilty verdict against him, illustrated senior Halkbank management’s participation in this brazen scheme to circumvent our nation’s Iran sanctions regime. As alleged in today’s indictment, Halkbank’s systemic participation in the illicit movement of billions of dollars’ worth of Iranian oil revenue was designed and executed by senior bank officials. The bank’s audacious conduct was supported and protected by high-ranking Turkish government officials, some of whom received millions of dollars in bribes to promote and protect the scheme. Halkbank will now have to answer for its conduct in an American court.”
Assistant Attorney General for National Security John C. Demers said: “Halkbank, a Turkish state-owned bank, allegedly conspired to undermine the United States Iran sanctions regime by illegally giving Iran access to billions of dollars’ worth of funds, all while deceiving U.S. regulators about the scheme. This is one of the most serious Iran sanctions violations we have seen, and no business should profit from evading our laws or risking our national security.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As we allege today, Halkbank, a Turkish financial institution whose majority shareholder is the government of Turkey, willfully engaged in deceptive activities designed to evade U.S. sanctions against Iran. Halkbank illegally facilitated the illicit transfer of billions of dollars to benefit Iran, and for far too long the bank and its leaders willfully deceived the United States to shield their actions from scrutiny. That deception ends today. The FBI will aggressively pursue those who intentionally violate U.S. sanctions laws and attempt to undercut our national security.”
According to the allegations in the Indictment, returned today in Manhattan federal court[1]:
From approximately 2012, up to and including approximately 2016, TÜRKİYE HALK BANKASI A.S. (“Halkbank”) was a foreign financial institution organized under the laws of and headquartered in Turkey. The majority of Halkbank’s shares are owned by the Government of Turkey. Halkbank and its officers, agents, and co-conspirators directly and indirectly used money service businesses and front companies in Iran, Turkey, the United Arab Emirates, and elsewhere to violate and to evade and avoid prohibitions against Iran’s access to the U.S. financial system, restrictions on the use of proceeds of Iranian oil and gas sales, and restrictions on the supply of gold to the Government of Iran and to Iranian entities and persons. Halkbank knowingly facilitated the scheme, participated in the design of fraudulent transactions intended to deceive U.S. regulators and foreign banks, and lied to U.S. regulators about Halkbank’s involvement.
High-ranking government officials in Iran and Turkey participated in and protected this scheme. Some officials received bribes worth tens of millions of dollars paid from the proceeds of the scheme so that they would promote the scheme, protect the participants, and help to shield the scheme from the scrutiny of U.S. regulators.
The proceeds of Iran’s sale of oil and gas to Turkey’s national oil company and gas company, among others, were deposited at Halkbank, in accounts in the names of the Central Bank of Iran, the National Iranian Oil Company (“NIOC”), and the National Iranian Gas Company. During the relevant time period, Halkbank was the sole repository of proceeds from the sale of Iranian oil by NIOC to Turkey. Because of U.S. sanctions against Iran and the anti-money laundering policies of U.S. banks, it was difficult for Iran to access these funds in order to transfer them back to Iran or to use them for international financial transfers for the benefit of Iranian government agencies and banks. As of in or about 2012, billions of dollars’ worth of funds had accumulated in NIOC and the Central Bank of Iran’s accounts at Halkbank.
Halkbank participated in several types of illicit transactions for the benefit of Iran that, if discovered, would have exposed the bank to sanctions under U.S. law, including (i) allowing the proceeds of sales of Iranian oil and gas deposited at Halkbank to be used to buy gold for the benefit of the Government of Iran; (ii) allowing the proceeds of sales of Iranian oil and gas deposited at Halkbank to be used to buy gold that was not exported to Iran, in violation of the so-called “bilateral trade” rule; and (iii) facilitating transactions fraudulently designed to appear to be purchases of food and medicine by Iranian customers, in order to appear to fall within the so-called “humanitarian exception” to certain sanctions against the Government of Iran, when in fact no purchases of food or medicine actually occurred. Through these methods, Halkbank illicitly transferred approximately $20 billion worth of otherwise restricted Iranian funds.
Senior Halkbank officers, acting within the scope of their employment and for the benefit of Halkbank, concealed the true nature of these transactions from officials with the U.S. Department of the Treasury so that Halkbank could supply billions of dollars’ worth of services to the Government of Iran without risking being sanctioned by the United States and losing its ability to hold correspondent accounts with U.S. financial institutions.
The purpose and effect of the scheme in which Halkbank participated was to create a pool of Iranian oil funds in Turkey and the United Arab Emirates held in the names of front companies, which concealed the funds’ Iranian nexus. From there, the funds were used to make international payments on behalf of the Government of Iran and Iranian banks, including transfers in U.S. dollars that passed through the U.S. financial system in violation of U.S. sanctions laws.
* * *
Halkbank is charged with (1) conspiracy to defraud the United States, (2) conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”), (3) bank fraud, (4) conspiracy to commit bank fraud, (5) money laundering, and (6) conspiracy to commit money laundering.
The Office has previously charged nine individual defendants, including bank employees, the former Turkish Minister of the Economy, and other participants in the scheme. See S4 15 Cr. 867 (RMB). On October 26, 2017, Reza Zarrab pled guilty to the seven counts with which he was charged. On January 3, 2018, a jury convicted former Halkbank deputy general manager Memet Hakkan Atilla of five of the six counts with which he was charged, following a five-week jury trial. The remaining individual defendants are fugitives.
Mr. Berman praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
This case is being handled by the Office’s Terrorism and International Narcotics Unit and Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Michael D. Lockard, Sidhardha Kamaraju, David W. Denton Jr., Jonathan Rebold, and Kiersten Fletcher are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Students Across South Carolina to Participate in State’s 18th Annual National Day of Concern & Student Pledge Against Gun ViolenceRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that on Wednesday, October 16, 2019, the United States Attorney’s Office, along their local, state, and federal law enforcement partners, will visit schools across South Carolina to meet with students as a part of South Carolina’s 18th annual Student Pledge Against Gun Violence. With a focus on keeping schools and communities safe, students in middle school and high school are signing a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children are pledging that if they see a gun they will not touch it, they will tell a teacher or a trusted adult, and they will assume that any gun they see might be loaded.
The Student Pledge Against Gun Violence is a national program that recognizes the role young people, through their own decisions, can play in reducing gun violence. The program provides a means for beginning the conversation with young people about gun violence and encourages important conversation among students about gun safety and respectful ways to resolve disputes. Students from around the country will join together in pledging to do their part. For additional information concerning the pledge, visit the national Student Pledge website at www.pledge.org.
As it has done since 2002, the U.S. Attorney’s Office reached out to all South Carolina law enforcement agencies and schools to make the pledges available to interested schools. This pledge effort is part Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The following South Carolina schools and law enforcement agencies are participating in this year’s pledge on October 16. For information on events scheduled for a particular school, please contact the specific school or law enforcement agency.
Participating Law Enforcement Agencies
Beaufort Police Department
Berkeley County Sheriff’s Office
Charleston County Sheriff’s Office
Columbia Police Department
Florence County Sheriff’s Department
Greer Police Department
Hampton County Sheriff’s Office
Hardeeville Police Department
Marion County Sheriff’s Department
Myrtle Beach Police Department
Richland County Sheriff’s Department
Summerville Police Department
Participating Schools
Aiken Scholars Academy - Aiken
Battery Creek High School - Beaufort
Beaufort Middle School – Beaufort
Brunson Elementary School - Hampton
Cheraw Intermediate School - Cheraw
Eau Clair High School - Columbia
Edward E. Taylor Elementary School – Richland
Forest Heights Elementary School – Columbia
Ft. Dorchester High School – Dorchester
Greer High School – Greenville
Greg Mathis Charter High School - Charleston
Hardeeville Elementary School - Ridgeland
Hardeeville-Ridgeland Middle School – Ridgeland
John P. Thomas Elementary School - Richland
Lady’s Island Middle School – Beaufort
Lake City High School – Florence
Limestone Central Elementary School - Gaffney
Macedonia Middle School – Berkeley
McCormick Elementary School – McCormick
McCormick High School - McCormick
Myrtle Beach Middle School – Horry
Myrtle Beach High School – Horry
Northwest Elementary School – Cherokee
Oakbrook Middle School – Charleston
Ocean Drive Elementary School – Horry
St. James – Santee Elementary Middle School - McClellanville
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Staten Island Heroin Dealer Sentenced to 23 Years in Prison for Overdose Death of 26-Year-Old ManRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that PAUL VAN MANEN was sentenced today to 23 years in prison for conspiring to distribute heroin and fentanyl that resulted in the death of Michael Ogno, a 26-year-old man from Staten Island, New York, and the serious bodily injury of another individual. A unanimous jury convicted VAN MANEN in May 2019 after an eight-day trial before United States District Judge Paul A. Crotty.
U.S. Attorney Geoffrey S. Berman said: “Paul Van Manen peddled the fentanyl-laced heroin that caused the death of Michael Ogno. He made that sale fully aware that the same formulation had caused a nonfatal overdose just two months prior. The lengthy sentence should send a message to those who sell lethal drugs like fentanyl.”
According to court documents and the evidence at trial:
From at least in or about 2013 up to and including in or about January 2018, VAN MANEN sold heroin, including heroin laced with fentanyl, to customers on Staten Island and in New Jersey. On October 4, 2017, VAN MANEN drove a co-conspirator (“CC-1”) to Brooklyn, New York, where they both obtained heroin from the conspiracy’s primary supplier, Medin Kosic. The next morning, CC-1 overdosed after using some of the narcotics, which were subsequently found to be laced with fentanyl. Despite knowing about this overdose, VAN MANEN continued to sell heroin – including heroin laced with fentanyl – to members of the Staten Island community. On December 1, 2017, VAN MANEN sold heroin to Michael Ogno, a 26-year-old resident of Staten Island. Ogno used the heroin, which again was laced with fentanyl, and died from an overdose. VAN MANEN continued to sell heroin after Ogno’s death.
* * *
In addition to the prison sentence, PAUL VAN MANEN, 51, of Staten Island and South Amboy, New Jersey, was sentenced to five years of supervised release.
U.S. Attorney Geoffrey S. Berman praised the outstanding work of the New York Drug Enforcement Administration Strike Force, the New York City Police Department, and the Richmond County District Attorney’s Office.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Catherine Ghosh, Ryan Finkel, Jessica Fender, and Stephanie Lake are in charge of the prosecution.