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Thursday 5 September 2019
Defense Contractor Sentenced to Three Years in Prison for Conspiracy to Defraud U.S. Department of Defense, Conspiracy to Violate Arms Export Control Act, and Income Tax EvasionRead the Press Release
CAMDEN, N.J. – The owner of two defense contracting firms was sentenced to 36 months in prison for providing non-conforming parts for military equipment, illegally sharing sensitive technical information and evading income taxes, U.S. Attorney Craig Carpenito announced today.
Roger Sobrado, 49, of Marlton, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count each of conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and income tax evasion. Judge Hillman imposed the sentence on Sept. 4, 2019, in Camden federal court.
According to documents filed in this case and statements made in court:
Sobrado was the owner of two companies: Tico Manufacturing Inc. (TICO), a purported manufacturing company, and Military and Commercial Spares Inc. (MCS), a defense contracting company, both in Berlin Township, New Jersey.
Sobrado admitted that between January 2011 and December 2015, MCS obtained contracts with the U.S. Department of Defense (DoD) by falsely claiming that the military parts it contracted to provide would be exactly as described and provided by authorized manufacturers. The DoD contracts specified that the parts were critical application items for military equipment, including fighter jets and helicopters. Sobrado recruited various family members to participate in the scheme by establishing companies that contracted with the DoD. Those companies also obtained contracts with the DoD by falsely claiming that the military parts they contracted to provide would be the exact product described and would be provided by authorized manufacturers. In fact, Sobrado used TICO to contract with local manufacturers to supply non-conforming parts to MCS and his family members’ companies at a significantly reduced cost. The non-conforming parts supplied by Sobrado were shipped from New Jersey to various DoD locations around the country.
DoD paid Sobrado and his family members’ companies for the non-conforming parts. The family members then paid Sobrado for the non-conforming parts. Sobrado admitted that he deposited some of his business receipts into his personal bank account and that he paid for personal items from his business account without telling his accountant. For tax years 2011 through 2014, Sobrado reported a total taxable income of $1,608,372. He failed to report additional income of $1,182,405, which caused a loss to the United States of $509,962.
Sobrado also admitted that in August 2005 and in November 2010 he submitted to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf of a family member’s company. Sobrado acknowledged that access to the controlled drawings and technical data was limited to citizens of the United States and to those lawfully in the United States. Sobrado said he submitted the application because his family member told him that he needed access to drawings and that he could not get them because he was not a U.S. citizen.
Sobrado agreed that on July 28, 2011, and at various times between January 2013 and November 2015, the family member, who is illegally in the United States, accessed or downloaded hundreds of drawings that were sensitive in nature and that required special access.
In addition to the prison term, Judge Hillman sentenced Sobrado to three years of supervised release and ordered him to pay $8,043,977 in restitution.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge John S. Grasso; and special agents of the U.S. Attorney’s Office with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden and Trial Attorney David Recker of the Justice Department’s National Security Division.
Connoquenessing Woman Pleads Guilty in $61K Social Security Fraud SchemeRead the Press Release
PITTSBURGH, PA - A resident of Butler County, Pennsylvania, pleaded guilty in federal court to Social Security fraud, United States Attorney Scott W. Brady announced today.
Pattie Lou Smith, 56, of Connoquenessing, pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that when applying for and receiving Supplemental Security Income ("SSI") benefits, Smith falsely reported that her husband was not part of her household, and, as a result, during the period December 30, 2013 through February 28, 2017, received $61,331.50 in SSI benefits to which she was not entitled.
Judge Hornak scheduled sentencing for January 9, 2020. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Smith remains on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation that led to the prosecution of Smith.
Columbus Man Convicted at Trial Sentenced for Six Drug CrimesRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in U.S. District Court today to 84 months in prison for drug crimes.
A jury convicted Glenn Marcell Madison, Jr., 29, of Columbus, in May on all counts following a two-day trial before U.S. District Judge James L. Graham.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin and Columbus Interim Chief of Police Thomas A. Quinlan announced the sentence handed down this afternoon.
Madison, also known as “Monster,” was indicted in October 2018 and May 2019 and charged with six drug-related crimes.
He was convicted of two counts of distributing cocaine, one count of distributing heroin and one count of distributing methamphetamine; each are crimes punishable by up to 20 years in prison. Madison was also convicted of two counts of distributing 50 grams or more of methamphetamine, which carries a potential sentence of five to 40 years in prison.
U.S. Attorney Glassman commended the cooperative investigation by the Columbus Division of Police and Franklin County Sheriff’s Office, as well as Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton, who are representing the United States in this case.
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Colorado Man Sentenced for Possession of HeroinRead the Press Release
United States Attorney Joe Kelly announced that Chief United States District Judge John M. Gerrard sentenced Matthew Raymond Schroeder of Denver, Colorado, today to one year in prison for possession of heroin. This sentence is to be served consecutive to (after) a Colorado sentence for parole violation. Following the prison term, Schroeder will serve one year on supervised release.
On July 8, 2018, Schroeder was contacted by Lincoln Police officers in the parking lot of a Lincoln motel after cleaning staff reported finding suspected drug-related items in the room that Schroeder had stayed in the night before. The car Schroeder was driving was searched, and a gram of heroin was found.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Cleveland man likely faces at least 30 years in prison after he was convicted by a federal jury on firearms and drug chargesRead the Press Release
A Cleveland man likely faces at least 30 years in prison after he was convicted by a federal jury on firearms and drug charges.
Tyrone Cammon was convicted on one count of using a firearm in relation to drug trafficking, one count of possession with intent to distribute fentanyl, one count of possession with intent to distribute heroin, one count of possession with intent to fentanyl analogues and two counts of being a felon in possession of a firearm.
Cammon is scheduled to be sentenced December 12. He is classified as a career offender with a sentencing guideline range of 30 years to life in prison.
Cammon possessed a FNH5.7x28mm pistol and 3.52 grams of fentanyl on April 9, 2016. Cammon used the firearm in relation to drug trafficking and was prohibited from having it because of previous convictions for assault, drug trafficking and other crimes, according to court documents.
Cammon possessed a Glock .40-caliber pistol with a 30-round magazine on November 16, 2017, as well as heroin, carfentanil and fentanyl analogues, according to court documents.
This case was investigated by the Cleveland Division of Police, Lakewood Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Kelly Galvin and Scott Zarzycki.
Chilton County Father and Son Sentenced to Prison on Unrelated Federal ChargesRead the Press Release
Montgomery, Alabama – Within the past two weeks, a Chilton County father and son were each sentenced to prison for committing federal crimes, announced United States Attorney Louis V. Franklin, Sr., Special Agent in Charge Marcus S. Watson with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chilton County Sheriff John Shearon.
On Wednesday September 4, 2019, Latrail Marcellus Jackson, Sr., 42, was sentenced to 210 months in prison after being found guilty by a federal jury for possession of cocaine and marijuana with intent to distribute. During his trial, the jury heard evidence that the Chilton County Sheriff’s Office suspected Jackson Sr. was selling drugs at a residence in south Chilton County near Marbury. In February of 2017, the investigation led them to obtain a search warrant for the house where they found large quantities of illegal drugs. Jackson Sr. received a substantial sentence in this case due to his criminal history. During sentencing, the judge determined that he qualified as a career offender under the federal guidelines and this significantly increased his punishment range.
On August 26, 2019, Latrail Marcellus Jackson, Jr., 25, was sentenced to 78 months in prison after pleading guilty to possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. Court records indicate that in March 2018, Clanton police officers encountered Jackson Jr. while responding to a disturbance call. While there, police discovered that he had an outstanding failure to appear warrant. The Chilton County Sheriff’s Office took him into custody and found him to be in possession of methamphetamine and a handgun. Possession of a firearm in connection with drug trafficking carries a minimum sentence of five years in prison and runs consecutive to any other sentence. Jackson Jr. received 18 months for the drug charge.
After serving his 17.5-year prison sentence, Jackson Sr. will be subject to five years of supervised release. Whereas, Jackson Jr. will be subject to a three-year period of supervised release following his 6.5-year sentence. There is no parole in the federal system.
“Unfortunately, violence and the illegal drug trade are often closely linked together,” stated U.S. Attorney Franklin. “My office will use all tools available to address the drug and violent crime problems in our communities. I applaud the work of all agencies involved in bringing this father and son to justice.”
ATF Special Agent in Charge, Marcus Watson, remarked, “Protecting the public by the removal of the criminal element that commits acts of violence with a firearm was the result of the combined efforts by ATF and our partners.”
“My office works hard to get drug dealers off the streets and out of our communities,” said Chilton County Sheriff John Shearon. “We appreciate the partnerships we have with federal law enforcement and the U.S. Attorney’s Office.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Chilton County Sheriff’s Office investigated these cases, with assistance from the Clanton Police Department and the Alabama Department of Forensic Sciences. Assistant United States Attorneys Brandon Bates and Thomas Govan prosecuted the cases.
Career Criminal Sentenced for Illegally Possession FirearmsRead the Press Release
Abingdon, VIRGINIA – Billy Wayne Page, a convicted felon currently on federal supervised release for a previous federal conviction, was sentenced today in U.S. District Court in Abingdon to 81 months for illegally possessing firearms and violating the terms of his supervised release. United States Attorney Thomas T. Cullen made the announcement following Page’s sentencing hearing today.
Page, 42, of Pound, Va., was convicted in June 2019 on one count of illegal possession of a firearm by a previously convicted felon. In addition, the court found today he violated the terms of his supervised release stemming from a 2013 federal conviction for illegally possessing firearms.
“Unlawful possession of a firearm by a convicted felon is a serious federal crime and one that this office has made a priority,” U.S. Attorney Cullen stated today. “We will continue to work closely with our federal, state, and local partners to identify potential cases and send offenders to federal prison.”
Court documents entered into the record prior to Page’s hearing recount the defendant’s lengthy criminal history dating back to the mid 1990s. Documents show convictions for stealing guns and valuables, vehicle theft, probation violations, breaking and entering at both a local high school and two local businesses, and drug possession. Page also admitted to witness tampering. In 2003, he was convicted as an armed career criminal for his illegal possession of firearms.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigations and the Pound, Virginia Police Department. Assistant United States Attorney Cagle Juhan prosecuted the case for the United States.
California Woman Pleads Guilty to Operating Wholesaler of Synthetic CannabinoidsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JANELL THOMPSON, the former vice-president, chief financial officer, and co-owner of a consumer products wholesaler based in California, pled guilty today before U.S. District Judge Naomi Reice Buchwald to using her business to distribute massive wholesale quantities of smokeable synthetic cannabinoids throughout the U.S. and to laundering the proceeds of that scheme.
U.S. Attorney Geoffrey S. Berman said: “Janell Thompson’s position as a company CFO and vice president masked her true identity: a drug trafficker and money launderer. Through her wholesale company, Thompson distributed massive quantities of illegal and potentially dangerous synthetic cannabinoids throughout the U.S. Thompson now faces 40 years in prison for her crimes.”
According to the allegations in the Superseding Information, other documents filed in the case, and statements made in court:
From February 2014 until February 2019, THOMPSON was the vice-president, chief financial officer, and co-owner of JK Wholesale LLC, a consumer products retailer based in Carlsbad, California. During that time period, THOMPSON used JK Wholesale LLC and its affiliated corporate entities to operate a scheme to distribute large quantities of smokeable synthetic cannabinoids (“SSC”), containing controlled substances and controlled substance analogues, throughout the U.S. SSC, colloquially referred to as “K2” or “Spice,” can be addictive, but are often marketed as safe, legal alternatives to marijuana. In fact, SSC are not safe and may affect the brain much more powerfully than marijuana; their actual effects can be unpredictable and, in some cases, more dangerous or even life-threatening.
Some of the SSC distributed by THOMPSON’s scheme were branded with colorful graphics and distinctive names, including “Yolo.” The branded SSC sometimes were misleadingly marketed as “herbal incense.” Other of the SSC were distributed in bulk quantities.
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THOMPSON, 42, of Carlsbad, California, pled guilty to one count of conspiracy to distribute a controlled substance and a controlled substance analogue and one count of conspiracy to commit money laundering. Each count carries a maximum sentence of 20 years in prison.
THOMPSON is scheduled to be sentenced by Judge Buchwald on January 27, 2019.
In addition to THOMPSON, four other defendants have been charged in this case:
On January 31, 2019, Jonathan Riendeau, 39, of Port Saint Lucie, Florida, pled guilty pursuant to a cooperation agreement with the Government before Judge Buchwald to six counts: three counts of conspiracy to unlawfully distribute controlled substances and controlled substance analogues; two counts of unlawful importation of controlled substances and controlled substance analogues; and one count of unlawfully distributing a controlled substance. Each count carries a maximum sentence of 20 years in prison. Riendeau’s sentencing has not yet been scheduled.
On April 23, 2019, Jade Plante, 40, of Port Saint Lucie, Florida, pled guilty before Judge Buchwald to one count of conspiracy to distribute and possess with intent to distribute a controlled substance analogues. On August 7, 2019, Plante was sentenced by Judge Buchwald to eight months in prison and two years of supervised release, and ordered to forfeit $100,000.
On February 7, 2019, Daniel Borer, 42, of Adams, Massachusetts, and Josephine McLaughlin, 65, of Stoneham, Massachusetts, were charged in a Superseding Indictment with three counts of conspiring to unlawfully import and distribute controlled substances and controlled substance analogues. Each count carries a maximum sentence of 20 years in prison. Trial has not yet been scheduled for Borer and McLaughlin.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, the United States Postal Inspection Service, and Homeland Security Investigations. He also thanked the Drug Enforcement Administration, the Naval Criminal Investigative Service, and the United States Attorney’s Office for the Eastern District of North Carolina for their assistance. The long-term investigation of this case was partially funded by the New York/New Jersey High Intensity Drug Trafficking Area, a federal grant program that invests in law enforcement partnerships to build safe and healthy communities.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Daniel G. Nessim and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and Borer and McLaughlin are presumed innocent unless and until proven guilty.
Beaumont Man Indicted for Bank RobberyRead the Press Release
BEAUMONT, Texas – A 29-year-old Beaumont, Texas man has been indicted for robbing a bank in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Clarence Richard Griffin was indicted by a federal grand jury today and charged with bank robbery.
According to information presented in court, on Aug. 8, 2019, Griffin is alleged to have entered the Beaumont Community Credit Union on MLK Parkway in Beaumont, approached the teller with his hand inside a plastic bag simulating a weapon, and demanded money. Griffin then fled the credit union with approximately $2,100 in cash and was apprehended a short time later near the credit union with the stolen cash, plastic bag, and bank tracking device. Video surveillance supported witness accounts.
If convicted, Griffin faces up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michael Anderson.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Bay Area’s Largest Home Health Care Agency and 28 Health Care Industry Workers Charged in Patients-For-Cash Kickback SchemeRead the Press Release
SAN FRANCISCO – Federal complaints have been filed against 30 defendants charged in a patients-for-cash kickback scheme, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG), Steven J. Ryan.
The complaints, unsealed this morning, describe a wide-ranging patients-for-kickback scheme. At the center of the scheme are Amity Home Health Care, the largest home health care provider in the San Francisco Bay Area, and Advent Care, Inc., a provider of hospice care. According to the complaints, all the defendants participated in the scheme whereby Amity, under the leadership of Chief Executive Officer Ridhima “Amanda” Singh, paid kickbacks to marketers, doctors, and other medical professionals in exchange for the certification or referral of patients for home health or hospice services. Also charged are 28 people including doctors, nurses, marketers, a social worker, and additional employees of Amity. According to the complaints, every single defendant charged was recorded by law enforcement officers either offering or accepting, or approving illegal payments for patient referrals.
Title 42, United States Code, Section 1320a-7b, makes it a crime for any person to knowingly solicit, offer, or pay a kickback, bribe, or rebate for furnishing services under a Federal health care program. Because many of the patients were insured by Medicare, a taxpayer-funded insurance plan, the referral of patients through the kickback scheme violated the statute.
“The complaints allege a scheme for doctors, nurses, and other medical care professionals to trade patients for cash,” said U.S. Attorney Anderson. “This is the largest cash-for-patients scheme ever charged criminally in the Northern District of California.”
“The transition to a home health agency should be based on medical and personal needs – not cash payments or thinly disguised referral bribes as alleged in these cases,” said Special Agent in Charge Ryan. “We will continue working with law enforcement partners to guard these vital government health programs as patients and taxpayers deserve better.”
The criminal complaints describe how Amity and some of its employees bribed individuals associated with hospitals, skilled nursing facilities, and doctors’ offices to induce those individuals to send patients to Amity and Advent. Amity and the other defendants often disguised the kickbacks as payroll, phony medical directorships, and, at other times, as “entertainment,” reimbursements,” “gifts”, or “donations.” Further, several of the defendants are doctors and other health care professionals who allegedly received bribes in exchange for making referrals to Amity and Advent and other home health agencies so that the companies could provide and bill for services. In the case of Amity, Singh and her employees allegedly compensated these professionals in cash for each patient referral and for making introductions to physicians, case managers, or other health care professionals who could refer patients.
In addition, some of the defendants are described as “marketers.” Marketers received from Amity and others cash and gifts, such as tickets to Warriors games, in exchange for patient referrals. Marketers had clients that consisted of case managers at hospitals, social workers at skilled nursing facilities, doctors, and office staff at doctors’ offices. Singh allegedly instructed marketers to take clients out to elaborate meals, sporting events, and purchase gifts for individuals willing to provide Amity with patients, mainly Medicare patients. When patient referrals were slow, Singh allegedly directed the marketer to incentivize clients with gifts in an effort to induce them to refer more patients to Amity.
In sum, the following individuals and companies have been changed in the scheme:
Defendant
Role
Age/Residence
Case Number
AMITY HEALTH CARE
Home Health Care Provider
19-71440
ADVENT CARE, INC.
Hospice Care Provider
19-71459
SINGH, AMANDA
CEO of Amity
33, Livermore
19-71430
ADDISON, BRENDA
Amity employee
49, Oakland
19-71431
BHANDARI, BHUPINDER
Doctor
59, Pleasanton
19-71441
DEGUZMAN, MERVINA
Nurse/Case Manager
41, San Jose
19-71447
HICKS, KIMBERLY
Doctor
59, Oakland
19-71451
KABANSKAYA, YELENA
Doctor
39, San Jose
19-71452
MYINT, GERALD
Doctor
68, Union City
19-71448
NGUYEN, TAM
Doctor
44, San Jose
19-71453
POSADA, JUAN
Doctor
58, Cupertino
19-71449
SCZENDZINA, EWELINA
Marketer
42, Gilroy
19-71434
TAYLOR, SCOTT
Doctor
61, Oakland
19-71455
WATSON, HENRY
Doctor
63, Oakland
19-71423
ZHANG, ZHENG
Doctor
62, Saratoga
19-71457
SANTOS, GLENNDA
Marketer
47, Castro Valley
19-71433
MANCUSO, APRIL
Doctor
38, Los Gatos
19-71445
REYNOLDS, KERISIMASI
Doctor
37, Los Gatos
19-71446
CARIAGA, CATHERINE
Nurse/Case Manager
31, Fremont
19-71458
TIRONA, TERENCE
Nurse/Case Manager
33, Hayward
19-71454
DEL ROSARIO, SAL
Case Manager
44, San Jose
19-71456
GAY, ANDRE NICOLAS
Doctor
39, Union City
19-71460
HASAN, MARIAM
Doctor
37, Milpitas
19-71450
ROY, BELINDA
Nurse/Case Manager
59, Fremont
19-71443
SUNO, NICOLE
Marketer
38, San Leandro
19-71421
TEODORO, STELLA
Nurse/Case Manager
37, Union City
19-71444
TACORDA, HILDA
Marketer
40, Hayward
19-71432
PINA, REBECCA
Marketer
38, Redwood City
19-71442
SINGH, VINEETA
Social Worker
42, Hayward
19-71422
PRESCOTT, CAROLINE
Marketing Director
53, San Ramon
19-71420
Each defendant is charged with illegally influencing patient referrals for federally funded health care through payments, in violation of 42 U.S.C. § 1320a-7b(b)(2)(A). In addition, Singh is charged with lying to investigators, in violation of 18 U.S.C. § 1001, and tampering with witnesses in violation of 18 U.S.C. § 1512(b)(3).
The complaints merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 10 years in prison and a maximum $500,000 fine. The corporations are subject to a $1,000,000 for each violation. In addition, Singh faces a maximum statutory penalty of 5 years and a $250,000 fine for the § 1001 charge and a maximum statutory penalty of 20 years and a $250,000 fine for the § 1512 charge. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s new Corporate Fraud Strike Force and is the result of an investigation by the FBI and HHS-OIG.
Baltimore Marijuana Distributor Who Was a Fugitive for More Than Nine Years Pleads Guilty to Federal ChargesRead the Press Release
Greenbelt, Maryland – Jeffrey Putney, a/k/a Jeffy, Tom, and J.P., age 43, of California, formerly of Baltimore, pleaded guilty to federal charges of maintaining a drug-involved premises and to possession with intent to distribute at least 1,000 kilograms of marijuana. Putney has been a fugitive since the indictment was returned in December 2010. The guilty plea was entered on September 4, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse Fong of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Acting Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Putney’s plea agreement, from 2003 until about June 2009, Putney conspired with Matt Nicka, Gretchen Peterson, Andrew Sharpeta, David D’Amico, and others to distribute marijuana.
As part of the conspiracy, Putney and his co-conspirators obtained large quantities of marijuana grown in Canada and northern California, which they transported by plane and tractor trailer, to warehouses in Maryland and Pennsylvania. Putney and his co-conspirators stored marijuana in warehouses, vehicles, and a storage unit, and purchased and rented residences that were used to store and distribute marijuana and to count and collect cash proceeds from the marijuana sales. For example, Putney shared a storage locker with a co-conspirator where they stored marijuana. Putney had a key to the locker.
As detailed in the plea agreement, three to four times a week Sharpeta, D’Amico, Nicka and, at times, Putney, counted drug proceeds which generally ranged from $20,000 to $100,000, then placed the money in different boxes and set it aside. The money was then bundled into $50,000 packs and loaded into a suitcase or duffle bags in increments ranging from $100,000 to $1 million. The co-conspirators then locked or super-glued shut the suitcases or duffle bags and transported the cash via private airplane or tractor/trailer to pay the source of supply in California.
Putney also personally participated in several financial transactions involving the proceeds of the marijuana conspiracy and designed to conceal the nature, source, ownership, and control of those proceeds. For example, Putney facilitated the purchase of a Lancair IV-P aircraft for $450,000 for the co-conspirators to use to transport marijuana and drug proceeds for the conspiracy. As part of the effort to purchase this aircraft, the co-conspirators created a holding company called Air Sky Holdings and indicated that the purpose of the company was to provide air taxi services so as to disguise the true purpose of the company and the aircraft.
On March 18, 2009, the Drug Enforcement Administration executed a raid on a stash house that Putney oversaw located at 3522 Hickory Avenue in Baltimore, Maryland and which served as one center for operations for the conspiracy. Law enforcement seized from the residence over 100 pounds of marijuana, $20,000 in cash, 31 cellular telephones, documents regarding the purchase of the Lancair IV-P aircraft, four money counters, tally sheets with balances over $1.5 million, and false identifications. On March 18, 2009, prior to the execution of the raid by law enforcement, law enforcement had been following Putney. Putney related his suspicion to Sharpeta just before the police arrested Putney in a car. At the time of his arrest, Putney was in possession of a duffle bag containing $38,000 in cash and five cell phones.
After the raid, Sharpeta and Nicka scrambled to clear out the other warehouses of marijuana and to burn the drug trafficking organization’s ledgers. Nicka collected funds from members of the drug trafficking organization to hire defense attorneys. Putney directed one co-conspirator to use attorney James Michael Farrell, who was subsequently indicted and convicted in a separate case for his role as consiglieri in the marijuana conspiracy.
After the execution of the warrant, and while in hiding, Putney moved from Baltimore to California, to Philadelphia, Pennsylvania, and then returned to California. Putney was aware that he and other members of the conspiracy had been indicted by a federal grand jury in Maryland, and that federal law enforcement was searching for him. At one point, Putney married his girlfriend to prevent her from testifying against him in grand jury. The two later divorced but not before his wife attempted to sell several high-end watches Putney had purchased with drug proceeds during the marijuana conspiracy in order to get money for Putney to remain on the run.
Putney was arrested in January 2019, in Nevada after a Nevada trooper pulled him over for a traffic violation.
Putney and the government have agreed that, if the Court accepts the plea agreement, Putney will be sentenced to eight years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 8, 2019, at 9:30 a.m.
A total of 15 defendants have previously been convicted in this case and were sentenced to up to 188 months in prison.
United States Attorney Robert K. Hur praised the DEA, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation and thanked the U.S. Marshals Service for its assistance. Mr. Hur thanked Assistant United States Sandra Wilkinson, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
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Baltimore Heroin Dealer Sentenced to 10 Years in Federal Prison for Distribution of HeroinRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Coron Demon Johnson, a/k/a Savage, age 25, of Baltimore, Maryland, to 10 years in federal prison, followed by three years of supervised release, for distribution of heroin. Johnson admitted that an individual died as a result of using heroin that he distributed.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and Chief John Nesky of the Bowie Police Department.
“Heroin dealers are selling death and despair and more people die of heroin overdoses than murder in Maryland,” said U.S. Attorney Robert K. Hur. “Federal, state, and local law enforcement are working together to hold drug dealers responsible for the deaths they cause. As a result, Coron Johnson will now spend 10 years in federal prison, where there is no parole—ever.”
According to his plea agreement, on August 11, 2017, Johnson sold heroin to an individual in Annapolis, Maryland. The individual returned to her home in Bowie, Maryland, and went to her bedroom. The next day, the individual was found in her bedroom, unresponsive, holding her cell phone. First responders administered CPR, but the victim was pronounced dead a few minutes later. Law enforcement officers recovered a paper fold containing .025 grams of heroin. The medical examiner performed an autopsy and determined that the victim’s cause of death was heroin intoxication.
Law enforcement officers took possession of the victim’s phone following the fatal overdose. A short time later, Johnson texted the phone, asking if the victim was “coming get some this fire today.” A law enforcement officer, posing as the victim, responded to Johnson. Johnson, via text, arranged to meet the law enforcement officer, posing as the victim, in Bowie, in order to sell the victim $139 worth of heroin.
At the agreed-upon time, Johnson texted that he had arrived at the meeting location. Law enforcement officers initiated a traffic stop on the vehicle. Johnson was in the passenger seat and three other people were also in the vehicle, including two minor children. Johnson had white powder residue on his pants when he got out of the vehicle. Law enforcement recovered a paper fold with powder residue from the floorboard of the passenger side of the car where Johnson had been sitting. Johnson was also in possession of the cell phone used to text the victim’s phone.
Johnson admitted to law enforcement that he primarily distributes heroin in the Newtowne-20 section of Annapolis. Johnson identified a picture of the victim as the individual he thought he was meeting in Bowie, and admitted that he had sold the victim heroin in Annapolis the day before.
United States Attorney Robert K. Hur commended the DEA, the Prince George’s County Police Department, and the Bowie Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Kelly O. Hayes, who prosecuted the case.
# # #
Armed Bank Robber Sentenced to 25 YearsRead the Press Release
Memphis, TN – Quincy Perdue, 23, has been sentenced to 25 years in federal prison for bank robbery. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on March 3, 2018, Perdue robbed the First Tennessee Bank located at 4330 Summer Avenue in Memphis. Perdue provided a note to the teller stating, "Give me the money. Hit the button and I’m shooting you in the face. Nothing out the first draw. No GPS. If a dye pack go off, I got 17 shots. I’m killing everybody and myself." The teller pressed the alarm and Perdue fled the bank.
On March 5, 2018, Perdue robbed the First Tennessee Bank located at 2015 East Brooks Road in Memphis. Surveillance video revealed that Perdue and another individual entered the bank, and Perdue immediately began shooting at the bank’s security guard striking him numerous times. Perdue and the individual jumped the teller counter and grabbed approximately $29,000 from the teller’s drawer. They then fled the bank in an awaiting vehicle.
A witness followed the vehicle to an apartment complex and alerted law enforcement. The police responded, arrested Perdue and recovered the money.
On April 11, 2018, a federal grand jury returned a three-count indictment against Perdue charging him with two counts of bank robbery and one count of discharging of a firearm during and in relation to the second bank robbery. Perdue pleaded guilty to all counts in the indictment on March 15, 2019.
On September 4, 2019, U.S. District Court Judge John T. Fowlkes, Jr., sentenced Perdue to 63 months for the bank robberies and a consecutive sentence of 240 months for discharging a firearm during and in relation to the second bank robbery, for a total effective sentence of 303 months in federal prison.
U.S. Attorney D. Michael Dunavant said: "This is precisely the type of violent gun offender that threatens lives and public safety in Memphis. Armed bank robberies are brazen and disturbing acts of violence that terrorize our community, and must be met with significant sentences such as this one. Perdue is a dangerous offender who has sown violence and greed, and will now reap the full measure of consequences for his criminal conduct. We are Fed Up with gun crime in Memphis, and we are doing something about it. Gun Crime is Max Time."
The case was investigated by the FBI’s Safe Streets Task Force.
Assistant U.S. Attorney Kevin Whitmore prosecuted this case on behalf of the government.
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Accountant Who Cheated Her Friends and Clients via a $27.5 Million Ponzi Scheme Sentenced to More than 8 Years in Federal PrisonRead the Press Release
LOS ANGELES – A retired certified public accountant has been sentenced to 97 months in federal prison for running a $27.5 million Ponzi scheme that for roughly two decades defrauded her friends and her accounting firm’s clients.
Carol Ann Pedersen, 66, of Long Beach, was sentenced late Wednesday afternoon by United States District Judge Dolly M. Gee, who cited the “grave economic and psychological toll” of Pedersen’s "insidious Ponzi scheme" as she “preyed on some of her closest friends.” Pedersen pleaded guilty in March to one felony count of wire fraud. Judge Gee also ordered her to pay approximately $27.5 million in restitution.
Between 1996 and September 2017, Pedersen, who only was licensed to be a CPA, served as her victims’ unlicensed investment advisor. Through her firm, Carol A. Pedersen, C.P.A., she solicited her accounting clients’ investments through two types of investment opportunities that she offered: “Time Deposit” and “Client Pool.” Pedersen told her victims that Time Deposit would invest in low-risk securities providing a fixed return on their money after a period of time while Client Pool would invest their money in the stock market through an investment pool Pedersen had established with other investors’ funds.
In reality, Pedersen’s fraud was nothing more than a Ponzi scheme. She solicited investors and promised to invest their money in the stock market, but never did. Instead, she deposited the funds into her personal accounts, and then spent the money to fund her own personal expenses, including the payment of her credit card bills, the establishment of trust accounts for her family, and the purchase of real estate. She also used her victims’ money to fulfill distribution requests by her other victims – which she falsely represented were returns on their investments.
For example, on July 30, 2015, Pedersen wired $3 million from a purported “Client Pool” account to a personal account that she controlled.
In 2017, after receiving distribution requests that she could not honor with the funds she had available, Pedersen’s scheme collapsed. She retired shortly thereafter.
Pedersen’s victims, at least 56 people, invested more than $40 million into these accounts during the scheme and their total loss was at least $27,547,839.
This matter was investigated by the Federal Bureau of Investigation and the Los Angeles County Sheriff’s Department.
In March, the Securities and Exchange Commission filed a civil complaint against Pedersen in connection with the fraudulent scheme. Pedersen has admitted liability in that case.
This case was prosecuted by Assistant United States Attorneys Alexander C.K. Wyman and Julian L. André of the Major Frauds Section.
Attorney and Client Indicted for Conspiracy to File False Federal Income Tax ReturnsRead the Press Release
ALBUQUERQUE – A grand jury in Albuquerque, N.M. has returned an indictment charging Victor Kearney, 55, of Zephyr Cove, Nev., and Robert Fiser, 58, of Albuquerque with preparing and filing false tax returns to conceal millions of dollars in income Kearney received as a beneficiary of two testamentary trusts.
The grand jury returned the indictment on August 27, 2019. It charges Kearney and Fiser with participating in a conspiracy to defraud the United States, from October 20, 2009, to November 4, 2016, by impairing the ability of the Internal Revenue Service (“IRS”) to assess and collect revenue in the form of income taxes. The indictment further charges Kearney with willfully making and subscribing a false personal income tax return on September 6, 2013, in which Kearney allegedly substantially underreported his income for 2011. The indictment further charges Fiser with allegedly aiding and assisting Kearney in the preparation of Kearney’s false return on September 4, 2013.
According to the indictment, Kearney allegedly received annual income as a beneficiary of Mary Pat Abruzzo-Kearney Trust B and C. Kearney hired Fiser, a licensed attorney in New Mexico, to prepare his tax returns. Both Kearney and Fiser knew Kearney received annual income from the Abruzzo-Kearney trusts, but they did not report that income to the IRS. Kearney and Fiser allegedly concealed their tax evasion by signing false returns and making false statements under oath at depositions in civil lawsuits.
Fiser appeared for arraignment in federal court earlier today. He is out of custody pending trial. Kearney is scheduled for arraignment on September 12, 2019. Kearney and Fiser each face a sentence of up to 5 years in prison if convicted of the conspiracy offense. Kearney faces up to 3 years in prison for making and subscribing a false return. Fiser also faces 3 years in prison for aiding and assisting in the preparation of the false return. Indictments are only accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Special agents with IRS Criminal Investigation investigated this case. Assistant U.S. Attorneys Kimberly Brawley and Sean Sullivan are prosecuting the case.
17 Texas Syndicate Members and Associates Arrested Based on Federal Indictment Alleging Meth/Heroin Trafficking in and around AustinRead the Press Release
Federal, state and local authorities have arrested 17 members and associates of the Texas Syndicate in connection with a methamphetamine/heroin trafficking operation in central Texas announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, Austin Police Chief Brian Manley, Texas Department of Public Safety Director Steven McCraw, and Gonzales Police Chief Tim Crow.
A federal grand jury indictment, returned in Austin and unsealed yesterday, charges those arrested with conspiracy to distribute a controlled substance. The defendants, allegedly, conspired to distribute methamphetamine/heroin in Austin, San Marcos, Luling, Gonzales, New Braunfels, Hutto, Kenedy, Seguin, Bastrop and Tuscaloosa, AL, since January 2018. During this investigation, authorities seized over 100 kilograms of methamphetamine and multiple firearms attributed to this organization.
Defendants who are charged in this indictment include:
- Juan Carlos Castilleja, age 29 of New Braunfels, 500 grams or more of methamphetamine;
- Roman Gabriel Luna, age 34 of Austin, 500 grams or more of methamphetamine/one kilogram of heroin;
- *Julio Alvarez, a 40-year-old Mexican National residing in Austin, 500 grams or more of methamphetamine;
- *Osbellia Jimenez-Jaimes, age 33 of Austin, 50 grams or more of methamphetamine;
- Brandon Carrasco, age 21 of Kenedy, TX, 50 grams or more of methamphetamine;
- David Cantu, age 46 of Gonzales, 50 grams or more of methamphetamine;
- *Ian Accord, age 26 of Hutto, 50 grams or more of methamphetamine;
- John Vera, age 26 of Gonzales, 50 grams or more of methamphetamine;
- Josh Vera, age 26 of Gonzales, 50 grams or more of methamphetamine;
- Lisa Anzaldua, age 31 of Luling, 50 grams or more of methamphetamine;
- Noemi Medina, age 25 of Seguin, 50 grams or more of methamphetamine;
- Paul Villarreal, age 45 of Luling, 50 grams or more of methamphetamine;
- *Sean May, age 47 of Tuscaloosa, AL, 50 grams or more of methamphetamine/100 grams or more of heroin;
- Michael Armstead, age 47 of San Marcos, less than 50 grams of methamphetamine;
- Steven Klasing, age 37 of Austin, less than 50 grams of methamphetamine/less than 100 grams of heroin;
- Rafael Salas, age 38 of San Antonio, one kilogram or more of heroin; and,
- Pascual Salazar, age 36 of Austin, one kilogram or more of heroin.
*13 defendants were arrested yesterday. Alvarez, Jimenez-Jaimes, Accord, and May were already in custody prior to yesterday.Upon conviction of the drug trafficking charge: Castilleja, Luna, Salazar, Salas and Alvarez face between ten years and life in federal prison; Jimenez-Jaimes, Carrasco, Cantu, Accord, John Vera, Josh Vera, Anzaldua, Medina, Villarreal and May face between five and 40 years in federal prison; Armstead and Klasing face up to 20 years in federal prison based on their involvement, drug type and drug amount involved.
All of the defendants remain in federal custody. Detention hearings are expected to occur over the next two weeks in U.S. Magistrate Court in Austin for all defendants except May.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the FBI Safe Streets Task Force, Austin Police Department, Texas Department of Public Safety and the Gonzales Police Department. Agencies assisting in making arrests include: Karnes County Sheriff’s Office, Guadalupe County Sheriff’s Office, Comal County Metro Narcotics Task Force, San Marcos Police Department, Hays County Narcotics Task Force and the San Antonio Division of the Drug Enforcement Administration. Assistant U.S. Attorneys Matt Harding and Dan Guess are prosecuting this case on behalf of the Government.
Wednesday 4 September 2019
Wilmerding Felon Charged with Possessing Fentanyl, Heroin and Tramadol Mixture Disguised as Oxycodone Hydrochloride PillsRead the Press Release
PITTSBURGH - A resident of Wilmerding, Pennsylvania, was arraigned before United States Magistrate Judge Maureen P. Kelly last week on charges of violating federal drug laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on July 16, 2019, named Keith Navarro-Palmer, age 33, as the sole defendant.
According to the Indictment, on or about May 15, 2019, Navarro-Palmer possessed with intent to distribute over 100 grams of a mixture and substance containing fentanyl, heroin, and tramadol. The initial criminal complaint, which was filed by the Wilkinsburg Police department, indicated that the fentanyl, heroin, tramadol mixture was in the form of a large quantity of pills resembling Oxycodone Hydrochloride 15 milligram tablets. The Indictment further indicated that Navarro-Palmer was previously convicted of both attempted murder and aggravated assault. According to the original police complaint, these prior convictions stem from a June 4, 2005 incident where the defendant fired in excess of 30 rounds at two Pittsburgh Police Officers.
“Pills purchased on the street may contain potentially deadly drugs masquerading as legal prescription medications,” said U.S. Attorney Brady. “Don’t risk your life. Only take medications that have been prescribed by your doctor and filled by your pharmacist.”
The law provides for a sentence of not less than 10 years in prison to a maximum of life imprisonment, a fine not to exceed $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, in conjunction with the Wilkinsburg Police Department, conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Marshals Service Operation in Stockton Nets More Than 100 Dangerous CriminalsRead the Press Release
SACRAMENTO, Calif. — Today, U.S. Attorney McGregor W. Scott, Chief Deputy Lasha Boyden and Chief Inspector Bert Tapia of the U.S. Marshals Service, and Stockton Police Chief Eric Jones announced a U.S. Marshals Service-led operation to reduce violence in Stockton.
Operation Take Back aimed to provide the city of Stockton with immediate relief from the increasing rate of violent crime. After 21 days of focused effort, Operation Take Back concluded on August 30th, targeting and arresting violent fugitives, gang members and criminal offenders who have committed crimes such as homicide, shooting into dwellings, felony assault, sexual assault, illegal possession of firearms, illegal drug distribution, and robbery.
As a result of a request from the Stockton Police Department for assistance from federal, state, and local law enforcement partners, Operation Take Back was conducted in coordination with the U.S. Marshals Service, the Stockton Police Department, the California Department of Corrections and Rehabilitation, and the San Joaquin County Probation Department.
Operation Take Back resulted in 101 arrests, including 42 identified gang members. In addition, law enforcement officers seized 19 firearms and 3,500 rounds of ammunition, 25 marijuana plants, 5 pounds of packaged marijuana, and other illegal drugs, including cocaine, methamphetamine, and heroin.
U.S. Attorney Scott stated: “This focused effort removed violent offenders from the streets of Stockton. Local and federal law enforcement partnerships such as Operation Take Back are essential to making our communities safe and sending the message that gangs will not be tolerated in Stockton.”
“These types of operations are vital to maintaining the safety of the very communities within which we live and work. The ability of local, state and federal law enforcement to work together in tracking down these fugitives is vital to the peace and stability of our communities,” said Bert Tapia, Chief Inspector for the United States Marshals Service.
Chief Jones stated: “During the month of May we experienced an increase in violent crime, specifically shootings and homicides. This was very concerning to us and that is why we reached out to our local, state, and federal law enforcement partners. With the help of the additional resources that the U.S. Marshals Service brought to Stockton, we were able to make key arrests on those who were actively involved in street violence and were able to remove numerous firearms off the streets. We would like to thank the U.S. Marshals Service for helping us bring back a sense of safety to those neighborhoods that were affected by violent crime.”
Each local, state and federal agency utilized their individual specialized enforcement techniques and statutory authority in order to disrupt and destabilize the organized criminal operations of violent street gangs and career criminal offenders in the city of Stockton.
Two Sapulpa Women Plead Guilty to Illegally Collecting More Than $350,000 in Death BenefitsRead the Press Release
Two Sapulpa women pleaded guilty today in U.S. District Court to illegally taking more than $350,000 in Social Security and military retirement benefits that were meant for their mother, announced U.S. Attorney Trent Shores.
Patricia Lee Kendall, 66, and Peggy Lee Larue, 63, both of Sapulpa, pleaded guilty to two-counts of aiding and abetting each other to illegally take and conceal government property in the form of money from both the Social Security Administration and the Department of Defense Military Retirement Fund. The women admitted in court that they failed to notify authorities of their mother’s death in December 2000. Previously, their mother had received the death benefit payments as a result of her husband’s military service. After their mother passed away, the payments should have ceased.
“Illegally taking the Social Security death benefits and military retirement benefits meant for their mother, long after she passed away, is shameful,” said U.S. Attorney Trent Shores. “Fraud investigations performed by inspectors general are crucial to identifying waste, abuse, or fraud. I applaud the efforts of the investigators and Assistant U.S. Attorneys Scott Proctor and Shannon Cozzoni in this case.”
Kendall and Larue illegally took money from the Social Security Administration in the aggregate value of $224,237 in Social Security income as well as money from the Department of Defense Military Retirement Fund in the aggregate value of $129,765 in military retirement funds. The two are subject to a criminal forfeiture money judgement in the amount of $354,002.
U.S. District Judge Gregory K. Frizzell set sentencing for Dec. 4, 2019.
The Social Security Administration- Office of Inspector General and Department of Defense Criminal Investigative Service conducted the investigation. Assistant U.S. Attorneys Scott Proctor and Shannon Cozzoni are prosecuting the case.
Two Pittsburgh men indicted on drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raimonte Gordon Gaston and Tayshawn Natel Blair, both of Pittsburgh, Pennsylvania, were indicted by a federal grand jury today on heroin and fentanyl distribution charges, United States Attorney Bill Powell announced.
Gaston, also known as “Boog,” Barkley Boo,” Barkley,” and Ray,” age 27, and Blair, also known as “Tay,” are each charged with one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Heroin and Fentanyl,” one count of “Aiding and Abetting the Distribution of Heroin,” and one count of “Aiding and Abetting Possession with Intent to Distribute Heroin and Fentanyl.” The men are accused of working together to distribute heroin and fentanyl in Harrison County and elsewhere from September 2018 to January 2019.
Gaston and Blair each face up to 20 years incarceration and a fine of up to $1,000,000 for each count. 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Bridgeport Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Charged with Illegally Distributing Prescription NarcoticsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging JOHN CAVANAUGH, also known as “Big John,” 67, of East Windsor, and THOMAS TROUGHTON, 54, of Agawam, Massachusetts, with offense related to the illegal distribution of prescription narcotics.
The indictment was returned on August 21, 2019.
Cavanaugh and Troughton were originally arrested on criminal complaints on August 13. Cavanaugh appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and enter a plea of not guilty to the charges. Cavanaugh is released on a $100,000 bond pending trial.
Troughton was arraigned yesterday and also entered a plea of not guilty. He is detained pending trial.
As alleged in court documents and statements made in court, in 2018 and 2019, investigators conducted surveillance of Cavanaugh and observed him conducting what appeared to be hand-to-hand drug deals on numerous occasions. In July 2019, investigators stopped narcotics customers after they conducted drug deals with Cavanaugh and seized pills from these customers. The investigation revealed that Troughton was a source of supply of pills for Cavanaugh.
The indictment charges with Cavanaugh and Troughton with one count of conspiracy to distribute and to possess with intent to distribute controlled substances, an offense that carries a maximum term of imprisonment of 20 years. The indictment also charges Cavanaugh with four counts of possession with intent to distribute, and distribution of, oxycodone, an offense that carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Drug Enforcement Administration’s Hartford Task Force and the Windsor Locks Police Department. The Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging Eduardo LOPEZ-Hernandez, age 28, of Mexico, and MIGUEL SALGADO-NARANJO, age 62, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, LOPEZ-HERNANDEZ, who was found in Wayne County, was previously deported nine times, and was previously convicted of illegal entry four times, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
SALGADO-NARANJO, previously deported and found in Johnston County, is alleged to have been previously removed subsequent to an aggravated felony conviction (sale of cocaine). Therefore if convicted, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Treasurer Sentenced to Federal Prison for Embezzling Funds from the Medina Lake Betterment AssociationRead the Press Release
In San Antonio today, a federal judge sentenced former Treasurer Kenneth Edward Gilmore, 77 of Lakehills, TX, to 27 months in federal prison for stealing at least $177,000 from the Medina Lake Betterment Association (Medina), announced U.S. Attorney John F. Bash.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Gilmore pay $177,000 in restitution and be placed on supervised release for a period of three years after completing his prison term.
On April 2, 2019, Gilmore pleaded guilty to one count of wire fraud. By pleading guilty, Gilmore admitted that beginning in 2008 until 2016, he devised a scheme to steal organization funds and use them for his own personal benefit.
“Gilmore lied to Medina board of directors, officers and supporters by providing false treasury reports, omitting material facts and concealing the charitable organization’s actual financial status,” stated U.S. Attorney Bash. “His criminal actions left the non-profit organization nearly bankrupt.”
The FBI and the Texas Department of Public Safety investigated this case. Assistant U.S. Attorneys William R. Harris and James K. Blankinship prosecuted this case on behalf of the Government.
Three Time Felon to Federal Prison for Meth Conspiracy and Gun PossessionRead the Press Release
A man who conspired to distribute methamphetamine while possessing guns was sentenced August 30, 2019, to 30 years in federal prison.
On March 21, 2019, Brandon Lee Boone, 46, from Des Moines, Iowa, pled guilty to conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and possession of a stolen firearm. Boone was previously convicted of the manufacture/delivery/possession with intent to deliver methamphetamine in 2004 and possession with intent to deliver methamphetamine in 2008, both in the Iowa District Court. Boone was also previously convicted of possession of a firearm and ammunition by a felon in the United States District Court in 2009 and felony drug trafficking of methamphetamine with a firearm in Worthington, Minnesota in 2018.
At the plea hearing, Boone admitted his involvement in a conspiracy that distributed at least 15 kilograms of mixed methamphetamine from January 2018 through February 2018. On February 6, 2018, in Fort Dodge, Iowa, during a routine traffic stop of a vehicle in which Boone was a passenger, law enforcement seized over 800 grams of actual (pure) methamphetamine and three guns, including a loaded .44 caliber handgun on his person and a stolen AR-15 rifle with an extra capacity 60 round drum magazine. Boone admitted he possessed the methamphetamine with intent to distribute it and possession of guns (as a convicted felon) during the time and in furtherance of the conspiracy to distribute methamphetamine. At the time of the stop, Boone was heard to say “If I could get to my guns, I would blow their heads off.”
Boone was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Boone was sentenced to 360 months’ imprisonment and must serve a 10 year term of supervised release following imprisonment. Boone remains in U.S. Marshals custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Fort Dodge Police Department, Iowa Department of Narcotics Enforcement, Webster County Sheriff’s Office, Humboldt County Sheriff’s Office, and the Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3004. Follow us on Twitter @USAO_NDIA.
Three Bronx Gang Members Arrested and Charged with Murder, Racketeering, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of an Indictment charging ROBERT WILSON, a/k/a “RO,” KEVIN CROSBY, a/k/a “Sama,” and YEFREL BRITO, a/k/a “Mini,” with murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, and firearms offenses in connection with the murder of Nelson Ramos on January 6, 2019, in the Bronx. WILSON is also charged with participating in a racketeering conspiracy.
WILSON and CROSBY were arrested last night. BRITO was already in federal custody, having been previously charged with narcotics trafficking. CROSBY was presented today before Magistrate Judge Sarah Netburn. WILSON and BRITO will be presented this afternoon before Magistrate Judge Debra Freeman. The case is assigned to U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, these defendants are responsible for the cold-blooded murder of Nelson Ramos earlier this year. We commend the extraordinary efforts of our law enforcement partners to bring these defendants to justice.”
HSI Special Agent-in Charge Peter C. Fitzhugh said: “These gang members are alleged to not only brandish firearms and deal drugs in their own Bronx neighborhood, but they are also known to threaten acts of violence against rival gangs. HSI will continue to work with the NYPD, and its law enforcement partners, to rid our city streets of gangs, like the Stevenson Commons Crew, and the drugs and violence they promote.”
DOI Commissioner Margaret Garnett said: “This investigation demonstrates how gang violence, and the murders, drugs and other crimes associated with it, rips at the fabric of communities, terrorizes residents, and destroys New Yorkers’ lives. Many of the charged crimes in this case took place in public housing in the Bronx, and DOI contributed its expertise on how violence and criminality can take root in these communities. Working in partnership with the NYPD, the New York Field Office of Homeland Security Investigations, and the United States Attorney’s Office for the Southern District of New York, DOI is proud to be part of the team to protect New York neighborhoods and hold accountable those individuals who perpetrate serious and devastating crimes.”
NYPD Police Commissioner James P. O’Neill said: “Exceptional collaboration among the NYPD and its local law enforcement partners have resulted in the successful dismantling of this violent street gang. To ensure the safety of our neighborhoods, we must continue to be vigilant about combating gang activity wherever it occurs.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
WILSON and CROSBY are members or associates of a racketeering enterprise known as the Stevenson Commons Crew. In order to fund the enterprise, protect and expand its interests, and promote its standing, members and associates of the Stevenson Commons Crew committed, conspired, attempted, and threatened to commit acts of violence against rival gangs, including murder and robbery; conspired to distribute and possess with intent to distribute narcotics; and obtained, possessed and used firearms, including by brandishing and discharging them.
BRITO is a member or associate of a racketeering enterprise known as Sex Money Murder, a criminal organization whose members and associates engaged in, among other things, murder, attempted murder, and narcotics trafficking.
On January 6, 2019, WILSON, CROSBY, and BRITO murdered Nelson Ramos in the vicinity of 800 Soundview Avenue in the Bronx, New York.
* * *
WILSON, 28, CROSBY, 23, and BRITO, 21, all from the Bronx, New York, are each charged with one count of murder and assault with a deadly weapon in aid of racketeering, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of life in prison; one count of conspiracy to commit murder in aid of racketeering, which carries a maximum sentence of 10 years in prison; and one count of murder through use of a firearm, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of five years in prison. WILSON is also charged with one count of racketeering conspiracy, which carries a maximum sentence of life in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the investigative work of HSI and the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan and Justin V. Rodriguez are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Texas Man Sentenced in H-2B Visa ScamRead the Press Release
BROWNSVILLE, Texas – A 45-year-old Houston man has been sentenced in Brownsville federal court for recruiting individuals to petition for visa workers they did not need, announced U.S. Attorney Ryan K. Patrick along with Jeffrey McGallicher, special agent in charge of the U.S. State Department’s Diplomatic Security Service (DSS) - Houston Field Office, Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - San Antonio, U.S. Citizenship and Immigration Services (USCIS) Acting Director Ken Cuccinelli and Steven Grell, special agent in charge of Department of Labor - Office of Inspector General (DOL-OIG), Dallas Region.
Marco Pesquera pleaded guilty to conspiracy to commit visa fraud Jan. 3, 2019.
Today, U.S. District Judge Fernando Rodriguez sentenced Pesquera to 38 months in prison to be immediately followed by three years of supervised release. He was further ordered to forfeit $5 million in a money judgment and his Houston residence.
Norma Linda Vega, 46 of Houston, Saul Atkinson, 47, of Brownsville, and Gwendolyn Saldivar, 41, of Snellville, Georgia were also charged and have pleaded guilty.
At the time of plea, Pesquera admitted that from approximately 2011 to January of 2018, he and his co-conspirators utilized legitimate and fictitious companies to petition for H-2B visas. Pesquera recruited and paid individuals to petition for visa workers they did not need and then utilized the foreign workers to fulfill labor contracts.
“This is a perfect illustration of our global reach and our ability to partner with U.S. and foreign law enforcement agencies on complex international, multi-jurisdictional cases,” said McGallicher. “DSS and our counterparts are conducting investigations like these on a daily basis around the world to protect the integrity of the visa process, the security of the homeland and the American work force.”
“HSI’s message is clear – America’s legal immigration system is not for sale,” said Folden. “In addition to posing significant security and safety vulnerabilities that could be exploited by criminals and others who pose a danger to our community, immigration benefit fraud undermines the integrity of our legal immigration process and penalizes those who abide by the law.”
“USCIS officers are on the job everyday looking to identify and expose those who attempt to defraud and exploit our nation’s immigration system,” said Cuccinelli. “We are proud to have supported our law enforcement partners in this investigation and pleased to have had a role in putting this fraudster out of business.“
“Pesquera and his co-conspirators defrauded the DOL’s H-2B program by filing false documentation to obtain visas for more than 1000 foreign workers to work in the U.S illegally,” said Grell. “We will continue to work with our law enforcement partners to vigorously pursue those who defraud worker visa programs for their own personal gain.”
Pesquera’s business, Pangea Enterprises Inc., contracted with large industries to provide labor and profited by paying foreign workers an hourly wage well below the contract rate.
Pesquera and his co-defendants utilized false documents that included contracts, tax forms, web sites and fictitious phone numbers and business addresses to facilitate the fraud.
Pesquera also admitted to obstructing the investigation by creating false documents in response to a federal subpoena.
He was permitted to temporarily remain on bond and surrender Oct. 4, 2019, to begin his sentence at a U.S. Bureau of Prisons facility.
DSS, HSI, USCIS and DOL-OIG conducted the investigation as members of the Document and Benefit Fraud Task Force. Assistant U.S. Attorney Bill Hagen is prosecuting the case.
Tennessee Sex Offender Indicted on Charge of Failure to RegisterRead the Press Release
Springfield, Ill. – A federal grand jury in Springfield today returned an indictment that charges Shay Christopher Greene, 23, of Knoxville, Tenn., with failure to register as a sex offender upon his relocation from Tennessee to Danville, Ill., in May 2019. The U.S. Clerk of the Court will schedule Greene for arraignment in Urbana, before U.S. Magistrate Judge Eric I. Long, at a future date.
Greene was arrested on Aug. 14, 2019, and charged by criminal complaint. According to the affidavit filed in support of the complaint, in March 2019, Greene was released from incarceration in Tennessee, where he was convicted of sexual exploitation of a minor involving production of child pornography. In late May 2019, Greene allegedly relocated to Danville, Ill., and failed to register or update his registration as required under the Sex Offender Registration and Notification Act. While in Danville, Greene allegedly resided at various locations, including a local homeless shelter in Danville, and a residence on Kist Ave., Danville. Also, Greene allegedly used assumed names, including “Christopher Wolfe,” in Danville.
The indictment returned today charges Greene with the offense of failure to register as a sex offender, from May 31 to Aug. 14, 2019. If convicted, the statutory penalty for the offense is up to 10 years in prison plus a fine of up to $250,000.
Following his arrest, Greene made his initial court appearance on Aug. 14, 2019, before U.S. Magistrate Judge Long, who ordered that Greene be detained. Greene has remained in the custody of the U.S. Marshals Service since his arrest.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson, The charge is the result of investigation by the U.S. Marshals Service and the Danville and Catlin, Ill., Police Departments.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse launched in May 2006 by the Department of Justice. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Somerset County Man Sentenced to Five Years in Prison for Receipt of Child PornographyRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 60 months in prison for receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Lomere T. Walls, 27, of Franklin Park, New Jersey, previously pleaded before U.S. District Judge Brian R. Martinotti to an indictment charging him with one count of receipt of child pornography. Judge Martinotti imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Walls used a peer-to-peer file sharing program, which he installed on his computer several years ago, to download videos and images of child sexual abuse. Between July and November of 2016, law enforcement downloaded dozens videos of child pornography from Walls’ computer. After executing a search warrant at Walls’ home in November of 2016, agents located 149 videos and 92 images of child sexual abuse on Walls’ computer and phone. Walls admitted that he had been actively searching for videos and images of child pornography, which he had previously saved on his computer.
In addition to the prison term, Judge Martinotti sentenced Walls to five years of supervised release.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s sentencing. The investigation was also assisted by the Somerset County Prosecutor’s Office under the direction of Prosecutor Michael H. Robertson.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Special Prosecutions Division in Newark.
Defense counsel: Eric Mark Esq., Newark
Six People Indicted on Drug Conspiracy and Firearms ChargesRead the Press Release
St. Louis, MO – A suppressed federal indictment was unsealed today charging six individuals with drug trafficking and firearm-related charges for the years 2018 to the present. The individuals and charges include:
- WILLIAM GOODLOW, 37, charged with conspiracy to distribute fentanyl and heroin;
- MARCUS JERMAINE MOORE, 35, charged with conspiracy to distribute fentanyl and heroin;
- CHRISTOPHER SANTEL MOORE, 33, charged with conspiracy to distribute fentanyl and heroin;
- JEFFREY TREMAINE STIDMON, 37, charged with conspiracy to distribute fentanyl and heroin;
- DURRELL BRENT JOHNSON, 33, charged with two counts of conspiracy to distribute fentanyl and heroin; marijuana distribution; possession of a firearm in furtherance of drug trafficking; being a felon in the possession of one or more firearms; and
- FLORA LOUISE JOHNSON, 31, charged with two counts of conspiracy to distribute fentanyl and heroin.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. This indictment and today’s arrests are a continuation of the on-going investigation into drug trafficking, overdose deaths, homicides, and firearm offenses occurring within and stemming from illegal activity connected to the Clinton-Peabody housing complex.
Following the unsealing of today’s indictment, United States Attorney Jeff Jensen stated, “These arrests and unsealing of today’s indictment resulted from the coordinated effort between our office and our federal, state, and local law enforcement partners. It is part of an active, on-going investigation focused on organized groups of individuals committing drug- and firearms-related crimes in the City of Saint Louis.”
“Parts of our city are being devastated by drugs and gun violence,” said Acting Special Agent in Charge Alicia Corder of the FBI St. Louis Division. “Today's arrests show the commitment of law enforcement at all levels to work together to rid the streets of this lawlessness.”
“After recently attending an event to raise awareness about the opioid epidemic, this indictment is an example of the essential work officers do every day to combat drug-related crimes,” said Saint Louis Metropolitan Police Department Chief John Hayden after today’s indictment was unsealed. “Our continued coordination with our federal and local partners is valued and can save lives by getting drugs and firearms off of our streets.”
If convicted, the drug conspiracy charges carry a maximum sentence of 20 years. The use of firearm in furtherance of drug trafficking charge carries a statutory minimum term of imprisonment of five years up to life consecutive to any other sentence imposed. The felon in possession of a firearm by a previously convicted felon carries a statutory maximum sentence of 10 years imprisonment.
In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Federal Bureau of Investigation; the Saint Louis Metropolitan Police Department; and Drug Enforcement Administration.
- WILLIAM GOODLOW, 37, charged with conspiracy to distribute fentanyl and heroin;
Sioux City Man Sentenced to Prison for Failure to Register as a Sex OffenderRead the Press Release
A man who failed to register as a sex offender was sentenced on September 29, 2019, to 41 months’ in federal prison.
Charles Lee Cook, age 36, from Sioux City, received the prison term after an April 9, 2019, guilty plea to one count of failure to register as a sex offender.
At the guilty plea, Cook admitted that from October 20, 2017, through November 18, 2018, he knowingly failed to register or update his registration as required by the Sex Offender Registration and Notification Act. The investigation showed that beginning in April 2018, Cook registered two different addresses in Sioux City, but failed to reside at either location. Cook is required to register as a sex offender due to a March 28, 2007, conviction for sexual abuse in the U.S. District Court for the District of Nebraska.
Cook was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Cook was sentenced to 41 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Cook is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the United States Marshals Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-04006.
Follow us on Twitter @USAO_NDIA.
Senior Manager of Global Internet Company Charged in Embezzlement SchemeRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York announced the arrest of HICHAM KABBAJ, a former senior manager in Manhattan for a global internet company (“Company-1”), for wire fraud and transacting in criminally derived proceeds. KABBAJ was arrested today and presented before Magistrate Judge Debra Freeman .
According to allegations in the Complaint unsealed today[1]:
From at least August 2015 until at least May 2019, KABBAJ engaged in a scheme to defraud his employer into paying a vendor named Interactive Systems for various IT products and services. Pursuant to the scheme, Interactive Systems sent approximately 52 invoices to KABBAJ for payment. In reality, Interactive Systems was a shell company controlled by KABBAJ, and money Company-1 sent Interactive Systems was quickly transferred to KABBAJ’s own bank accounts. From in and about December 2016 until in and about July 2019, Company-1 paid Interactive Systems more than $4.5 million.
KABBAJ, 48, of Floral Park, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of transacting in criminally derived property, which carries a maximum sentence of 10 years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This case is being investigated by Special Agents of the U.S. Attorney’s Office, with the assistance of the Internal Revenue Service.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Ni Qian and Andrew A. Rohrbach are in charge of the prosecution.
The charges in the Complaint 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 Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Seffner Man Pleads Guilty to Federal Firearms and Arson ChargesRead the Press Release
Tampa, Florida – Joshua David Jordan (30, Seffner) today pleaded guilty to two counts of discharging a firearm during and in relation to attempted carjackings and one count of arson. The firearms charges each carry a minimum mandatory, consecutive sentence of 10 years, up to life, in federal prison. The arson charge carries a minimum mandatory sentence of 5 years, and up to 20 years, in prison.
According to the
plea agreement , on the night of October 3, 2017, Jordan attempted to commit two armed carjackings in Hillsborough County, firing a semi-automatic handgun during each one. In the second attempted carjacking, Jordan shot the driver, who escaped and survived. Jordan then stole and set fire to a landscaping company’s spray truck, resulting in its destruction.This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Christopher Murray and Callan Albritton.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Prattville Woman Receives 18-Month Sentence for Making False Claims on Tax RefundsRead the Press Release
Montgomery, Alabama – On Tuesday, September 3, 2019, a Prattville, Alabama resident, Candace Brie Betances, 43, received an 18-month sentence for submitting false tax returns to the Internal Revenue Service (IRS), announced United States Attorney Louis V. Franklin, Sr. The sentence follows Betances’s guilty plea to one count of submitting false claims to the government.
According to court documents, between July of 2015 and July of 2016, Betances submitted to the IRS four individual income tax returns. On each return, Betances claimed that she was entitled to receive a substantial tax refund. In total, Betances asked the IRS to pay her $357,183. She did so despite knowing that she was not entitled to receive the refunds. Fortunately, the IRS detected Betances’s false statements and did not pay her the requested refunds.
At sentencing, the judge described Betances’s offense as a “serious” one. He ordered that Betances spend nine months of her sentence in prison and nine months on home detention with electronic monitoring. In ordering Betances to custody, the judge stated that a custodial sentence was necessary to deter others from submitting false tax documents. She will also be subject to two years of supervised release after serving her sentence.
“Too many people in our community view the IRS as a piggybank,” commented United States Attorney Franklin. “I hope that this case serves as a reminder that we are all responsible for paying taxes and that those who try to line their pockets with the hard-earned tax dollars of others will be punished.”
The IRS’s Criminal Investigations Division (IRS-CI) investigated this case, with assistance from the Autauga County Sheriff’s Office. Assistant United States Attorney Jonathan S. Ross prosecuted the case.
Pittsburgh Felon Convicted of Drug and Firearms Violations Sentenced to 8½ Years in PrisonRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a total of eight years and five months (102 months) in prison and six years’ supervised release, following his conviction of federal drug and firearms violations, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Lamont Willis, 47.
According to information presented to the court, on March 8, 2017, Pittsburgh Police executed a search warrant at Willis’s residence following a series of anonymous complaints of suspected drug trafficking and seized numerous items, including: cocaine, crack, cutting agents, drug trafficking paraphernalia, four firearms, and ammunition. Willis was apprehended the next day and was later indicted for possession with intent to distribute cocaine and cocaine base, possession of firearms and ammunition by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. On May 3, 3019, Willis pleaded guilty to the drug trafficking charge and to possessing the firearm in furtherance of the drug trafficking crime; additionally, Willis accepted responsibility for possessing firearms after being convicted of drug and firearms violations punishable by more than one year in prison. The Court was further informed that, as a convicted felon, Willis is subject to enhanced penalties.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, City of Pittsburgh Bureau of Police and North Strabane Township Police Department conducted the investigation leading to the successful prosecution of Willis.
The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (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.
Pike County Physician Indicted for Unlawful Distribution of Controlled Substances Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Martin Evers, age 61, a Pike County, Pennsylvania, physician, was indicted on August 28, 2019, by a federal grand jury for unlawfully distributing controlled substances without a legitimate medical purpose resulting in death.
According to United States Attorney David J. Freed, the indictment alleges that in September 2014, Evers unlawfully provided prescriptions for fentanyl and methadone, both Schedule II controlled substances, and diazepam, a Schedule IV controlled substance, that caused the death of one of his patients.
Evers appeared before Magistrate Judge Karoline Mehalchick today for his arraignment and was released under pre-trial supervision by Federal Probation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The charges stem from an investigation by Drug Diversion agents with the Drug Enforcement Administration (DEA). Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Nursing Assistant Receives Jail Sentence for Stealing from Wheelchair-Bound VeteranRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jacoya Brazzle, 31, of Coatesville, Pennsylvania, was sentenced to eight months’ incarceration, five years supervised release and full restitution by United States Timothy J. Savage for stealing money from a veteran patient in her care.
The defendant was a nursing assistant at the VA Medical Center (VAMC) in Coatesville. As part of her duties, she was assigned to care for a veteran who uses a wheelchair. Brazzle learned the veteran’s ATM card PIN number, and used his ATM card to access his account – withdrawing funds on more than 10 occasions from ATMs in the Coatesville area over a two month timespan. In all, the defendant stole approximately $11,000 from the victim’s bank account.
“Our veterans deserve our gratitude for their service, and it goes without saying that they deserve safe and trustworthy care at VA Medical Centers,” said U.S. Attorney McSwain. “The defendant’s conduct here – stealing from a wheelchair-bound veteran in her care – is reprehensible. My Office will investigate and prosecute any crimes against veterans to the fullest extent possible.”
“VA employees that take advantage of vulnerable veterans in their care will not be tolerated,” said Special Agent in Charge Sean J. Smith, Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Office.
The case was investigated by the Office of Inspector General for the U.S. Department of Veterans Affairs, and is being prosecuted by Assistant United States Attorney Nancy Rue.
North American Specialty Insurance Company to Pay over $1 Million to Settle False Claims Allegations for Bonding Contractor in Small Business Administration 8(a) Program Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that New Hampshire-based North American Specialty Insurance Company (NAS IC) has agreed to resolve allegations that the company violated the False Claims Act by bonding a South Carolina general contractor that submitted false claims to the United States for services performed under fraudulently obtained contracts from the U.S. Department of Defense and the U.S. Department of Agriculture. These contracts had been set aside for companies that qualified for the U.S. Small Business Administration’s (SBA) Section 8(a) Business Development Program. NAS IC has agreed to pay $1,040,035.20 to resolve the government’s allegations.
The 8(a) Business Development Program was created to help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities. A business owned and controlled by socially and economically disadvantaged individuals can apply for certification from the SBA as an 8(a) business. An 8(a) business can obtain certain preferences during the contracting process, and can bid on contracts that the government has set aside for qualified 8(a) businesses. A business can remain in the 8(a) program for up to nine years, but during that time, must provide information to the SBA, which is used to determine continuing program eligibility.
The United States alleges that, among other things, South Carolina general contractor Claro Company, Inc. made materially false, fictitious, and fraudulent statements and representations, or material omissions, to gain entry into and to continue participation in the 8(a) program. The United States also alleges that NAS IC knew or should have known that Claro was not eligible for 8(a) set-asides. Specifically, the United States alleges that NAS IC knew or should have known that Claro Company was in violation of the regulations governing the 8(a) Program and the government’s contracting requirements. Specifically, the United States contends that NAS IC knew or should have known, among other things, that: Claro Company was not controlled by a socially and economically disadvantaged individual, and that it was affiliated with and controlled by another entity and/or individuals that did not meet the SBA’s definition of being socially and economically disadvantaged; that neither the affiliation nor control were disclosed to the SBA; and that Claro Company made material false misrepresentations regarding its financial status to the SBA in order to avoid early graduation from the 8(a) program. The United States contends that NAS IC nonetheless continued to do business with Claro Company, bonding its projects and therefore allowing it to continue to fraudulently bid for contracts under the preferences in the 8(a) program.
“By enabling fraudsters, these companies play a key part in unlawfully usurping government contract opportunities from socially and economically disadvantaged individuals who the 8(a) Program is intended to assist,” said U.S. Attorney Murray. “My office will pursue vigorously bonding companies and other entities that, by turning a blind-eye or willfully ignoring blatant indicia of program fraud or abuse, enable the submission of these false claims and cause harm to the government program.”
This settlement resolves allegations investigated by the government pursuant to the False Claims Act. The settlement is the result of the coordinated effort between the Defense Criminal Investigative Service of the Office of Inspector General, U.S. Department of Defense, the U.S. Department of Agriculture Office of the Inspector General, the U.S. Small Business Administration Office of the Inspector General, and the United States Attorney’s Office for the Western District of North Carolina.
The claims resolved in this settlement are allegations only and there has been no determination of liability against NAS or any other entity.
New Britain Man Who Shot Girlfriend and Her Two Children Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JERMAINE SCOTT, also known as “Maine G,” 40, formerly of New Britain, pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to possession of a firearm by a convicted felon.
According to court documents and statements made in court, in the morning of March 29, 2017, New Britain Police responded to a residence in New Britain after a report that Scott had shot and seriously wounded his girlfriend and two of his girlfriend’s children at the residence. The victims subsequently reported that Scott, who was lying in bed, became angry when he thought the children were being too loud as they were getting ready for school. After an argument ensued, Scott retrieved a gun from behind the headboard of the bed, chased his girlfriend’s 17-year-old daughter into the bathroom and shot her in the stomach and thigh. He then shot his girlfriend’s 12-year-old son in his leg, and then his girlfriend in her stomach. Scott then fled the residence.
All three victims survived their injuries
Investigators conducted a search of the residence and recovered a .40 caliber pistol, four spent .40 caliber bullet shell casings, and more than 63 rounds of .40 caliber ammunition.
Scott was apprehended in Middletown on September 18, 2017. On May 16, 2019, he pleaded guilty in New Britain Superior Court to three counts of assault in the first degree. On July 24, 2019, he was sentenced to a 30-year term of imprisonment, no portion of which is suspended.
Scott has a criminal history that spans 20 years and includes convictions for firearm, drug, burglary, larceny and other 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.
Judge Covello scheduled sentencing for December 10, 2019, at which time Scott faces a maximum term of imprisonment of 10 years.
This matter was investigated by the New Britain Police Department, the U.S. Marshals Service Violent Fugitive Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Exposives. The case is being prosecuted by Assistant U.S. Attorney Alina M. Reynolds.
Nashville Man Convicted of Federal Drug Distribution and Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – September 4, 2019 –Lorenzo Shelton, 37, of Nashville, was found guilty yesterday on all counts of a federal indictment charging him with drug distribution and firearms violations, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
After a four-day trial, a jury found Shelton guilty of possession with intent to distribute 100 grams or more of heroin; possession of a firearm by a convicted felon; and possession of a firearm in furtherance of a drug trafficking crime.
According to evidence and testimony at trial, in August 2016, while Shelton was on parole for prior drug trafficking crimes, parole officers made a surprise visit to his home on Tillman Lane in Nashville. A search of Shelton’s room resulted in the seizure of 165 grams of heroin and other items indicative of drug trafficking. Officers also recovered $11,000 from the trunk of Shelton’s rental car. The investigation led officers to a second address on Chesapeake Drive in Nashville, where Shelton also lived, and there, officers recovered 90 grams of heroin, a loaded 9mm pistol, and $51,000 cash.
Shelton faces a minimum of 10 years and up to life in prison when he is sentenced by U.S. District Judge Eli J. Richardson on January 17, 2020.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Tennessee Department of Correction; and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Henry C. Leventis and Brooke K. Schiferle prosecuted the case.
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Montgomery Man Sentenced to 81 Months in Prison for Federal Drug and Firearms ChargesRead the Press Release
Montgomery, Alabama – On Tuesday, September 3, 2019, Augustus Chico Lowe, 34, of Montgomery, Alabama, was sentenced to 81 months in prison for federal drug and firearms charges, announced United States Attorney Louis V. Franklin, Sr. There is no parole in the federal system.
In May of 2019, Lowe pleaded guilty to possession of cocaine with intent to distribute and possession of a firearm in connection with a drug distribution crime. After serving his nearly seven-year sentence, Lowe will be subject to three years of supervised release.
Court records show that in December of 2016 Lowe was found to be in possession of approximately 26 baggies of powder cocaine and a handgun during a traffic stop by the Montgomery Police Department. Possession of a firearm in connection with drug trafficking carries a minimum sentence of five years in prison and runs consecutive to any other sentence. Lowe received 21 months for the drug charge.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Montgomery Police Department investigated this case, with assistance from the Alabama Department of Forensic Sciences and Montgomery County Sheriff’s Office. Assistant United States Attorneys Bradley Bodiford and Robert Nichols prosecuted the case.
Mexican National Man Pleads Guilty to an Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national man pled guilty to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Jose Guadelaupe Camarena-Jacinto, 37, faces up to ten years in prison, a $250,000 dollar fine, three years of supervised release, a special assessment, and possible removal from the United States when he is scheduled to be sentenced on November 5, 2019. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE) and the Ripley Police Department.
“Camarena-Jacinto had four prior removals,” said United States Attorney Mike Stuart. “This revolving door is an unbelievable drain on critical law enforcement resources that are needed elsewhere. My office prosecutes every single reentry case.”
On June 17, 2019, Camarena-Jacinto was found in the South Central Regional Jail located in Charleston, West Virginia by members of ICE after he was arrested by Ripley police officers for the state offense of obstruction. ICE agents traveled to the jail to confirm his legal status. The defendant admitted to agents that he was in the United States illegally. Camarena-Jacinto was arrested and ICE agents matched his fingerprints to previous removals from the United States. ICE agents further spoke to the defendant to confirm his identity. Camarena-Jacinto again admitted being in the United States illegally. Camarena-Jacinto had no identification documents permitting him legal status in the United States.
Fingerprinting matched Camarena-Jacinto to four prior removals from the United States in 2008, 2009, 2010, and 2012. His previous removals also included a prior conviction of illegal reentry into the United States from Federal Court in Kansas City, Missouri. In all four cases, Camarena-Jacinto was found by immigration judges to be in the United States illegally and he was deported to Mexico. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Camarena-Jacinto further admitted to ICE agents that he was a Mexican citizen.
Senior United States District Judge John T. Copenhaver Jr. presided over the hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
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Maryland U.S. Attorney’s Office, Along with Federal, State, and Local Law Enforcement Partners, Announces Strike Force to Combat Violence in BaltimoreRead the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland, along with federal, state, and local law enforcement partners, today announced the Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, a new initiative designed to combat violent crime in Baltimore. The mission of the Baltimore OCDETF Strike Force is to disrupt and dismantle the most violent gangs and drug trafficking organizations, and their financial infrastructure, in the Baltimore metropolitan area. While the Strike Force has been conducting investigations for more than a year now, the signing of the fiduciary agreement with the Baltimore County Government will now allow all Strike Force investigators to work in one shared location, which is a key part of the Strike Force concept that has proven successful in other cities.
The Strike Force program was announced by U.S. Attorney for the District of Maryland Robert K. Hur; Adam Cohen, Director of the Department of Justice’s Organized Crime Drug Enforcement Task Forces; Baltimore County Executive Johnny Olszewski; Tom Carr, Executive Director of the Washington/Baltimore HIDTA; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge “Jimmy” Sung H. Yi of the United States Secret Service - Baltimore Field Office; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; U.S. Marshal Johnny Hughes; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; State’s Attorney for Baltimore City Marilyn Mosby; Commissioner Michael Harrison of the Baltimore Police Department; Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Baltimore City Sheriff John W. Anderson; Colonel Woodrow W. Jones, Chief of the Maryland Transportation Authority Police; Anne Arundel County Police Chief Tim Altomare; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said U.S. Attorney Robert K. Hur. “The Strike Force model has worked elsewhere, and it will work here: By creating blended teams of investigators from more than a dozen local, state, and federal law enforcement agencies and tasking them with building investigations of the city’s most violent gangs, we will reduce violent crime together. I’m grateful to all of the many partners who have made it possible for us to bring this model to Baltimore, including Baltimore County Executive Olszewski and the Baltimore County Council for their leadership and agreement to serve as the financial conduit for the federal funds supporting this effort.”
Baltimore and its surrounding communities suffer from criminal violence, much of it driven by gangs and violent drug-trafficking organizations. The Strike Force was born of the desire for federal, state, and local law enforcement agencies in the Baltimore area to better coordinate and combine their resources and efforts to combat that violence. The mission of the Strike Force is to reduce violent, firearms-related, and drug-related crime in Baltimore by identifying criminal organizations and individuals most responsible for generating violence, sharing information about drug trafficking, illegal firearms, and violence, and pursuing the proceeds generated by drug trafficking organizations.
Participating agencies have agreed to assign full-time personnel to the Strike Force, which is led by the Baltimore DEA Assistant Special Agent in Charge and Deputy Chiefs from the FBI, the ATF, HSI, the Baltimore Police Department and the Maryland State Police, as well as prosecutors from the U.S. Attorney’s Office and the State’s Attorney’s Office for Baltimore City. Police officers, agents, and both federal and state prosecutors will work together in open workspace. The physical and organizational structure will lead to collaborative, centralized intelligence sharing in real time. The efforts of the Strike Force will complement and be a force multiplier to the ongoing efforts of the Washington/Baltimore High Intensity Drug Trafficking (HIDTA) Program.
RECENT CASES RESULTING FROM BALTIMORE OCDETF STRIKE FORCE INVESTIGATIONS
Monument Street Drug Trafficking Organization (“DTO”) - In this case, 25 defendants were arrested and charged in a 30-count superseding indictment that was returned by a federal grand jury on June 26, 2019, and unsealed on July 19, 2019. The superseding indictment charges the defendants with conspiring to distribute narcotics in and around the 400 block of North Montford Avenue and Jefferson Street, and around the 2400 block of East Monument Street at Port Street. Beginning in July 2018, members of the conspiracy allegedly distributed heroin, fentanyl, cocaine, and crack cocaine to individual drug users, and in bulk quantities to other drug traffickers, who redistributed the drugs in and around Baltimore. Ten of the conspirators also face firearms charges—including eight defendants charged with illegal possession of a firearm and ammunition by a prohibited person. During the investigation, law enforcement seized nine firearms, more than 14 kilograms of cocaine, approximately 4.5 kilograms of heroin, and 479 grams of fentanyl—enough to kill over 200,000 people. In addition, law enforcement seized more than $472,000 in cash and jewelry and vehicles worth more than $466,000. (Adams Superseding Indictment)
Spencer DTO – A federal indictment was returned on August 21, 2019, charging six defendants in a drug distribution conspiracy allegedly operating in southwest Baltimore. Sonny Spencer is the alleged leader of the DTO, which operates in and around the 400 block of Furrow Street, in southwest Baltimore, distributing primarily crack cocaine, heroin, and fentanyl. During the investigation, law enforcement conducted surveillance in the area where the DTO allegedly conducted its business and supervised numerous controlled purchases of narcotics from the alleged DTO members. In addition, law enforcement seized crack cocaine, a mixture of heroin and fentanyl, a .40 caliber firearm, and more than 70 rounds of ammunition.
U.S. Attorney Hur thanked the Washington/Baltimore HIDTA, the DEA, the U.S. Secret Service, the FBI, the ATF, HSI, the U.S. Marshals Service, the U.S. Postal Inspection Service, the State’s Attorney’s Office for Baltimore City, the Baltimore Police Department, the Maryland Department of Public Safety and Correctional Services, the Maryland State Police, the Baltimore City Sheriff’s Office, the Maryland Transportation Authority Police, the Anne Arundel County Police Department, the Baltimore County Police Department, the Maryland National Guard, and the Baltimore County Executive and Baltimore County Council, for their commitment to the Strike Force. Mr. Hur also commended the dedicated Assistant U.S. Attorneys and Assistant State’s Attorneys who are handling these prosecutions.
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Marshall County man admits to firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – William M. Johnson, Jr., of McMechen, West Virginia, has admitted to a firearms violation, United States Attorney Bill Powell announced.
Johnson, age 30, pled guilty to one count of “False Statement to Acquire Firearm.” Johnson admitted to making a false statement when purchasing a firearm. Johnson claimed the weapon was for his use, when, in fact, he purchased the .40 caliber pistol for a convicted felon. The crime took place in August 2018 in Ohio County.
Johnson faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Man Sentenced to 30 Years for Murdering Postal Worker in Fit of Road RageRead the Press Release
A Los Angeles man was sentenced today to 30 years in federal prison for murdering a postal worker during a road rage incident in Dallas last February, announced U.S. Attorney Erin Nealy Cox.
Donnie Arlondo Ferrell, 26, pleaded guilty in February 2019 to shooting and killing U.S. Postal Service employee Tony Mosby, who was behind the wheel of a USPS vehicle, a year prior.
According to plea papers, Mr. Ferrell – one of three passengers inside a Mazda traveling eastbound on I-30 – became incensed at something he perceived Mr. Mosby had done on the freeway. He leaned out of the Mazda and fired four shots at the USPS vehicle. Mr. Ferrell then watched as the USPS vehicle crashed into a retaining wall on the freeway.
After Mr. Ferrell later learned Mr. Mosby had been killed by a bullet to the head, Mr. Ferrell instructed the Mazda’s other passengers not to discuss the incident with anyone else. When law enforcement attempted to arrest Mr. Ferrell two days later, he retreated into his residence and refused to surrender for several hours, according to his plea papers.
Mr. Ferrell pleaded guilty to one count of murder of an employee of an agency of the United States government, and one count of discharging a firearm during a crime of violence.
“It was devastating to learn of the senseless act of violence that took the life of a federal postal employee while on the job in our district,” U.S. Attorney Nealy Cox said in February after the defendant’s guilty plea. “I’m gratified we could bring the perpetrator to justice. My heart goes out to Mr. Mosby’s family and friends.”
“The sentencing of Donnie Ferrell for the murder of postal employee Tony Mosby brings to an end an investigation of a heinous crime,” stated U.S. Postal Inspection Service’s Fort Worth Division Inspector in Charge Thomas Noyes. “The U.S. Postal Inspection Service is committed to protect our employees and customers. While we cannot prevent these senseless acts, we will not allow anything to impede our pursuit of justice. A special thank you to the U.S. Attorney’s Office, FBI, U.S. Marshal Service, Dallas PD and Dallas County Sheriff’s Department among others who worked swiftly to bring closure to this investigation and the Mosby family.”
A codefendant, Bei-jing Tashawna Walker, accused of accessory after the fact, entered a plea of not guilty last March. Her trial is scheduled to begin October 28, and she is presumed innocent until proven guilty.
The U.S. Postal Inspection Service conducted the investigation with assistance from the Dallas Police Department, the Federal Bureau of Investigation, the Dallas Police Department, and Dallas County Sheriff’s Department. Assistant U.S. Attorneys P.J. Meitl and John Kull prosecuted the case.
Man Indicted with Providing False Statements to Acquire 35 GunsRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Maryland man with making false statements to acquire firearms.
According to allegations in the indictment, Juan Antonio Zimmerman, 26, of District Heights, purchased 35 firearms from federal firearms licensees in the Eastern District of Virginia falsely claiming that he was buying the firearms for himself when he was actually buying them on behalf of other individuals. Zimmerman used a false address in Arlington to purchase the firearms, then gave the firearms to his cousin, his cousin’s friends, and his uncle, who is a convicted felon. In addition to the firearm recovered from his uncle, law enforcement recovered two of the firearms in Prince George’s County, Maryland as part of criminal investigations.
Zimmerman is charged with making false statements to a federal firearms licensee with respect to the purchase of firearms. If convicted, he faces a maximum penalty of five years in prison per count of conviction. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Jason Trigger are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-265.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Long Island Aerospace and Defense Contractor Agrees to Repay $2.6 Million in Overbillings to the United StatesRead the Press Release
Arkwin Industries, Inc., a Westbury, New York-based corporation, has agreed to pay a $2.6 million settlement to the United States, after self-disclosing its overbilling of the government and its prime contractors.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Leigh-Alistair Barzey, Special Agent-in-Charge, Defense Criminal Investigative Service, Northeast Field Office (DCIS), and Jason T. Hein, Special Agent-in-Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Investigations (AFOSI), announced the settlement.
“This resolution demonstrates how government contractors and suppliers should act when they discover overbilling – Arkwin notified the authorities, investigated the error, reported its findings to the United States and ultimately took responsibility for its mistakes,” stated United States Attorney Donoghue. “When a government contractor self-discloses billing errors and cooperates in the government’s investigation, our Office will work with them to arrive at a fair and just resolution.”
“Today's settlement is the result of a joint effort to ensure that the U.S. Department of Defense (DoD) expends only the necessary amount for the goods and services needed to supply our military," stated DCIS Special Agent-in-Charge Barzey. “Arkwin's cooperation in this matter was an important part of the successful and equitable resolution of this matter. The DCIS is committed to working with its law enforcement partners and the U.S. Attorney's Office, Eastern District of New York, to protect the integrity of the DoD's procurement system.”
“The Air Force Office of Special Investigations is committed to protecting the USAF and the American taxpayer from contractors and subcontractors who overcharge the government for products or services,” stated AFOSI Special Agent-in-Charge Hein.
Arkwin Industries designs, tests and manufactures precision hydraulic and fuel system components for civil and military fixed-wing aircraft, helicopters, spacecraft, turbine engines and other special applications. Arkwin acts both as a prime contractor and as a subcontractor to the Department of Defense, the Department of the Air Force and the Department of the Navy.
Arkwin detected an error in its accounting systems that had double-counted worker hours spent performing inspections of its products. Arkwin then self-disclosed the discovery to the United States, and undertook an internal investigation by outside counsel and a forensic accounting team. After concluding its investigation, Arkwin reported its findings to the United States.
After receiving Arkwin’s findings, the United States Attorney’s Office, with the support of DCIS and AFOSI, independently investigated the nature and extent of the overbilling, including whether the overbilling had been intentional or accidental. Arkwin cooperated fully throughout the investigation, providing documents, making witnesses available for interviews and responding to government inquiries. Following a thorough investigation, the Office found that the overbilling was accidental and negotiated the resolution. The $2.6 million settlement represents the total of potential overbilling, with interest.
The government’s case was handled by Assistant United States Attorney John Vagelatos.
Local Man Arrested on Weapons ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kory Lee George, age 31, of Monkton, was arrested yesterday on firearms violation charges. The defendant appeared today before United States Magistrate Judge John M. Conroy in Burlington. He was ordered detained pending a bail hearing on September 6, 2019.
The federal Criminal Complaint filed today charges George with possession of two firearms, a semi-automatic pistol and a shotgun, after being convicted in Vermont courts of felony offenses. An affidavit submitted with the Criminal Complaint, signed by a Vermont State Police Detective with the Vermont State Police’s Major Crime Unit, alleges that both firearms were stolen. The pistol, a 9mm Berretta, allegedly was stolen the night before David Auclair was shot to death in Hinesburg on July 11, 2019. As the Criminal Complaint describes, the Vermont State Police recovered the Berretta from a creek a few days after Auclair’s death. The Vermont Forensic Laboratory has since determined that the Berretta fired 9mm bullets recovered from Auclair’s body.
The shotgun referenced in the Criminal Complaint was allegedly stolen last spring from a camp in upstate New York, and was found in George’s residence during the Vermont State Police’s homicide investigation.
The Criminal Complaint is an accusation only and the defendant is presumed innocent until and unless proven guilty. The U.S. Attorney recognizes the efforts of the Vermont State Police in investigating the case. The case is being handled by Assistant U.S. Attorneys William Darrow and Spencer Willig of the U.S. Attorney’s Office. George is represented by Federal Defender Michael L. Desautels.Lengthy Prison Sentences for Three Middle Georgia Illegal Drug DealersRead the Press Release
MACON – Three Middle Georgia defendants involved in three different criminal drug distribution operations were each sentenced to more than 100 months in prison for their crimes, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. United States District Judge Marc Treadwell handed down the sentences in Macon federal court on September 4, 2019. John Dimitri Jordan, 40, of Atlanta, Georgia was sentenced to 140 months in prison followed by four years supervised release for Distribution of Crack Cocaine. Justin Hunt aka “Big Boy”, 34, of Macon, Georgia was sentenced to 130 months in prison followed by four years supervised release for Distribution of Methamphetamine. Larry Cumbie, 39, of Danville, Georgia was sentenced to 114 months in prison followed by three years supervised release for Possession with Intent to Distribute Methamphetamine. There is no parole in the federal prison system.
“Individuals who choose to profit from dealing large amounts of deadly, illegal drugs in the Middle District of Georgia will face serious penalties and long prison sentences,” said U.S. Attorney Charlie Peeler. “We will continue to work closely with our law enforcement partners in our shared effort to eradicate the sale of illegal drugs across the region. Thank you to the many law enforcement agencies involves in these cases.”
The Jordan case was investigated by the DEA, the Ocmulgee Drug Task Force, and the Washington County Sheriff’s Office. The Hunt case was investigated the United States Drug Enforcement Administration (DEA) and the Bibb County Sheriff’s Office. The Cumbie case was investigated by the DEA, the Twiggs County Sheriff’s Office, and the Ocmulgee Drug Task Force. Assistant U.S. Attorney Steven Ouzts prosecuted all three cases for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Las Vegas Man Charged for Illegally Engaging in the Business of Manufacturing Machine Guns Without A LicenseRead the Press Release
LAS VEGAS, Nev. – Jayson Michael Babbitt, 35, of Las Vegas, was charged today by criminal complaint with engaging in the business of dealing in firearms without a license, illegal possession of a machine gun, and making a machine gun in violation of the National Firearms Act, announced United States Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Babbitt made an initial appearance on the complaint this afternoon before United States Magistrate Judge Elayna J. Youchah.
According to the allegations contained in the complaint, beginning on or about June 2019 and continuing through September 2019, Babbitt illegally manufactured AR-15 style fully automatic rifles and offered them for purchase in the Las Vegas area. In July 2019, during a controlled purchase, Babbitt sold two fully automatic rifles, one short barrel and one long barrel, for $4,200 to an undercover buyer. Babbitt claimed to have manufactured the machine guns himself in his home with a “jig” using 80% lower receivers, blocks of aluminum, and M-16 machine gun parts to finish the firearms. Babbitt referred to the guns as “Ghost Guns” since the firearms did not have serial numbers so the firearms “would not exist in the eyes of the ATF.” Babbitt also showed the undercover buyer a video of himself test firing the firearms. On September 3, 2019, Babbitt sold an undercover buyer an additional three AR-15 style machine guns for $6,000.00. Babbitt told the undercover buyer that he planned on buying a machine that would allow him to make the gun parts easier and quicker. Babbitt was taken into custody by law enforcement after the September 3, 2019 sale. Babbitt admitted to manufacturing the machine guns he sold at his residence. A search warrant was executed at Babbitt’s residence where the “jig” was located as well as parts used in the manufacture of firearms. ATF Firearms Technology Criminal Branch tested the machine guns purchased in July 2019 and found that the firearms are operable and meet the definition of a “machine gun” under the federal National Firearms Act, Title 26, United States Code Section 5845(b).
A complaint contains merely allegations and the defendant is presumed innocent until and unless proven guilty in a court of law.
The case is being investigated by the ATF. Assistant United States Attorneys Lisa Cartier Giroux and Stephanie Ihler are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Laredoan Pleads Guilty to Child Pornography ChargeRead the Press Release
LAREDO, Texas – A 22-year-old man has pleaded guilty to possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Cristian Jose Castro admitted today he viewed and downloaded child pornography from the internet on two of his laptop computers.
On Oct. 11, 2018, law enforcement initiated an investigation into suspected possession and distribution of child pornography from a Laredo residence. They later executed a federal search warrant at the address and encountered Castro.
He admitted he obtained the child pornography from certain messaging applications and file-sharing programs via the internet using the wi-fi network at his residence. Castro said he had previously viewed adult pornography but he had become bored with it. He said he first watched child pornography when he was only nine. When law enforcement talked to him in December 2018, he added that he had searched, downloaded and viewed child pornography as recently as the month before. He admitted the children appearing in that ranged in age from seven to 12 years of age and that he had also downloaded pornography which included infants and toddlers.
A forensic analysis of one of Castro’s seized laptops included more than 2000 images of child pornography.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Castro faces a minimum of up to 20 years in federal prison.
Castro was permitted to remain on bond pending sentencing.
The FBI and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorneys Michael Bukiewicz and Francisco Rodriguez are prosecuting 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."