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15 October 2019
36 Arrested During Joint Law Enforcement Initiative in North AlabamaRead the Press Release
HUNTSVILLE – A joint federal, state, and local law enforcement initiative has resulted in the arrests of 36 individuals on a variety of criminal charges, including drug trafficking, money laundering, using communication facilities to facilitate drug trafficking and various firearms offenses, announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris, FBI Special Agent in Charge Johnnie Sharp, Jr., and United States Postal Inspector in Charge, Houston Division, Adrian Gonzalez. The majority of the defendants were arrested in north Alabama, however some defendants were arrested in California, Iowa, Virginia and Tennessee.
“There is no daylight between local, state and federal law enforcement,” Town said. “These indictments represent the hard work of many of our law enforcement partners, and exemplify our global efforts of taking on the most dangerous criminals menacing our neighborhoods. Our relationships across the board have never been stronger.”
"These arrests are indicative of DEA's commitment to rid our communities of drug trafficking organizations determined to profit on the backs of addiction," said Morris. "Citizens in Northern Alabama can rest assured that the DEA and our law enforcement partners are determined to ensure these communities remain safe and a great place to live. The success of this investigation is an outstanding example of our law enforcement community's resolve and determination."
“North Alabama is safer today as a result of this operation,” Sharp said. “This was an outstanding example of law enforcement partnerships working together to remove dangerous criminals from our neighborhoods.
“The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs or other harmful substances,” Gonzalez said. “Postal Inspectors will continue to work with our local and federal law enforcement partners to investigate and hold accountable those who misuse the U.S. Mail. Through our joint efforts, we have dismantled a criminal organization that posed a direct threat to various communities in multiple states.”
“We thank our State and Federal partners for their efforts and support in helping rid our community of illegal activity,” Madison County Sheriff Kevin Turner said. “We value our partnerships and will continually look for opportunities to enhance our ability to protect and serve all of Madison County”.
The arrests made on October 9, 2019, resulted from the combined efforts of local law enforcement agencies across eight counties in Northern Alabama, along with State and Federal law enforcement partners. Law enforcement agencies participating in the investigation included: Drug Enforcement Agency; United States Attorney’s Office; Federal Bureau of Investigation; Bureau of Alcohol Tobacco and Firearms; United States Postal Inspection Service; Office of the Attorney General State of Alabama; Alabama Law Enforcement Agency; Morgan County Sheriff’s Department; Lawrence County Sheriff’s Department; Decatur Police Department; Lauderdale County Sheriff’s Department; Colbert County Sheriff’s Department; Franklin County Sheriff’s Department; Russellville Police Department; Marion County Sheriff’s Department; Huntsville Police Department, Cullman County Sheriff’s Department, Cullman Police Department, Madison Police Department, and the Wayne County (Tennessee) Sheriff’s Department.
In the spring of 2018, Special Agents of the DEA, and members of the Morgan County Sheriff’s Office, Lawrence County Sheriff’s Office and ALEA began an investigation involving quantities of high quality methamphetamine being sold in Morgan and Lawrence County. Agents quickly learned that the methamphetamine was being distributed not only in those areas, but also in the surrounding areas as far south as Cullman and as far north as Tennessee, by multiple affiliated individuals. Agents also learned that the methamphetamine was coming from the San Bernardino area of California.
During the course of the investigation, over 74 pounds of “ice” methamphetamine, a kilo of cocaine hydrochloride and 46 grams of “crack” cocaine was seized. Twenty guns were seized, including two assault rifles and a short barrel shotgun. Some of the guns seized were identified as stolen. Over $123,000 was seized by federal agencies. This amount does not include amounts of money seized and forfeited by state and local agencies.
DEA, FBI, and USPIS, investigated the case, which Mary Stuart Burrell is prosecuting.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
36 Arrested During Joint Law Enforcement InitiativeRead the Press Release
HUNTSVILLE – A joint federal, state, and local law enforcement initiative has resulted in the arrests of 36 individuals on a variety of criminal charges, including drug trafficking, money laundering, using communication facilities to facilitate drug trafficking and various firearms offenses, announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris, FBI Special Agent in Charge Johnnie Sharp, Jr., and United States Postal Inspector in Charge, Houston Division, Adrian Gonzalez. The majority of the defendants were arrested in north Alabama, however some defendants were arrested in California, Iowa, Virginia and Tennessee.
“There is no daylight between local, state and federal law enforcement,” Town said. “These indictments represent the hard work of many of our law enforcement partners, and exemplify our global efforts of taking on the most dangerous criminals menacing our neighborhoods. Our relationships across the board have never been stronger.”
"These arrests are indicative of DEA's commitment to rid our communities of drug trafficking organizations determined to profit on the backs of addiction," said Morris. "Citizens in Northern Alabama can rest assured that the DEA and our law enforcement partners are determined to ensure these communities remain safe and a great place to live. The success of this investigation is an outstanding example of our law enforcement community's resolve and determination."
“North Alabama is safer today as a result of this operation,” Sharp said. “This was an outstanding example of law enforcement partnerships working together to remove dangerous criminals from our neighborhoods.”
“The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs or other harmful substances,” Gonzalez said. “Postal Inspectors will continue to work with our local and federal law enforcement partners to investigate and hold accountable those who misuse the U.S. Mail. Through our joint efforts, we have dismantled a criminal organization that posed a direct threat to various communities in multiple states.”
“We thank our State and Federal partners for their efforts and support in helping rid our community of illegal activity,” Madison County Sheriff Kevin Turner said. “We value our partnerships and will continually look for opportunities to enhance our ability to protect and serve all of Madison County”.
The arrests made on October 9, 2019, resulted from the combined efforts of local law enforcement agencies across eight counties in Northern Alabama, along with State and Federal law enforcement partners. Law enforcement agencies participating in the investigation included: Drug Enforcement Agency; United States Attorney’s Office; Federal Bureau of Investigation; Bureau of Alcohol Tobacco and Firearms; United States Postal Inspection Service; Office of the Attorney General State of Alabama; Alabama Law Enforcement Agency; Morgan County Sheriff’s Department; Lawrence County Sheriff’s Department; Decatur Police Department; Lauderdale County Sheriff’s Department; Colbert County Sheriff’s Department; Franklin County Sheriff’s Department; Russellville Police Department; Marion County Sheriff’s Department; Huntsville Police Department, Cullman County Sheriff’s Department, Cullman Police Department, and the Wayne County (Tennessee) Sheriff’s Department.
In the spring of 2018, Special Agents of the DEA, and members of the Morgan County Sheriff’s Office, Lawrence County Sheriff’s Office and ALEA began an investigation involving quantities of high quality methamphetamine being sold in Morgan and Lawrence County. Agents quickly learned that the methamphetamine was being distributed not only in those areas, but also in the surrounding areas as far south as Cullman and as far north as Tennessee, by multiple affiliated individuals. Agents also learned that the methamphetamine was coming from the San Bernardino area of California.
During the course of the investigation, over 74 pounds of “ice” methamphetamine, a kilo of cocaine hydrochloride and 46 grams of “crack” cocaine was seized. Twenty guns were seized, including two assault rifles and a short barrel shotgun. Some of the guns seized were identified as stolen. Over $123,000 was seized by federal agencies. This amount does not include amounts of money seized and forfeited by state and local agencies.
DEA, FBI, and USPIS, investigated the case, which Mary Stuart Burrell is prosecuting.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
defendants_1.pdf16-Count Superseding Indictment Charges Owner of Pain MD and Three Medical Professionals in Healthcare Fraud ConspiracyRead the Press Release
NASHVILLE, Tenn. – October 15, 2019 –A 16-count superseding indictment unsealed today charged Michael Kestner, 67, of Nashville, Tennessee, Brian Richey, 37, of Cookeville, Tennessee, Daniel Seeley, 58, of Batesville, Mississippi, and Jonathan White, 49, of Tullahoma, Tennessee, with conspiracy to commit health care fraud and multiple counts of healthcare fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee and Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division.
Richey and Seeley, both nurse practitioners, and White, a physician assistant, were indicted in April on one count of healthcare fraud and one count of conspiracy to commit healthcare fraud. Today’s superseding indictment charges each with four additional counts of healthcare fraud and also charges Kestner, the owner of MedManagement, Inc. (MMI), with one count of conspiracy and 15 counts of healthcare fraud.
Kestner surrendered to U.S. Marshals earlier today and will be making an initial appearance before a U.S. Magistrate Judge later this afternoon. Richey, Seeley and White are expected to surrender at a later time.
According to the indictment, Kestner was the owner and CEO of MMI and was the majority owner of Pain MD, with a principal place of business in Franklin, Tennessee. Richey, Seeley and White were employed by MMI, which managed Pain MD. Pain MD operated pain and wellness clinics throughout middle Tennessee, Virginia, and North Carolina and Michael Kestner, who has neither medical training nor certifications, served as its President.
Pain MD represented itself to be an “interventional” pain management practice and it claimed to provide procedures, including injections and durable medical equipment (“DME”) that were intended to reduce patient reliance on opioids and other narcotic pain medications. The indictment alleges that, in fact, these practices were intended to increase revenues for Pain MD and to personally enrich Pain MD providers.
Between 2010 and continuing through May 2018, the indictment alleges that Kestner, Richey, Seeley and White conspired to enrich themselves and their employers by submitting false and fraudulent claims to Medicare, Medicaid and TRICARE. Kestner and others took steps to ensure Pain MD providers increased their “productivity” by providing more and more services, without consideration of whether those services were medically reasonable and necessary. These steps included, but were not limited to: paying productivity-based bonuses to providers; locking providers into legally questionable employment agreements that included extended non-compete periods of up to 24 months; threatening providers who had low productivity numbers with termination and other consequences; sending regular emails, sometimes more than once daily, comparing and ranking providers based on the number of injections or DME devices they had provided; providing erroneous clinical trainings to under-experienced providers, instructing them on inappropriate care protocols and anatomically incorrect injection procedures; and sending Richey, Seeley and White out to clinics to “train” providers, who were not providing a high percentage of injections and DME, and how to “control” the patients and get them to agree to receive unnecessary medical procedures, under threats to discontinue their narcotic pain medications if they refused.
Richey, Seeley and White provided services to patients, namely “Tendon Origin Injections,” which were neither medically necessary nor anatomically possible, provided medically unnecessary DME, and then submitted fraudulent claims to Medicare, Medicaid and TRICARE. These services were provided to further the company’s business model by increasing revenues and to personally enrich Pain MD providers and executives.
As a result of the conspiracy, Kestner, Richey, Seeley and White caused the submission of more than $27,537,383.17 to be billed to Medicare, resulting in approximately $5,054,525.07 in reimbursement; more than $8,567,657.00 to be billed to TennCare, resulting in approximately $101,077.79 in reimbursement; and more than $2,544,322.01 to be billed to TRICARE, resulting in approximately $284,458.51 in reimbursement.
If convicted, the defendants face up to 10 years in prison and a $250,000 fine on each count.
This case is brought as part of the Appalachian Regional Prescription Opioid (ARPO) Strike Force, comprised of U.S. Attorney’s Offices for ten federal districts in six states, as well as law enforcement partners at the U.S. Department of Health & Human Services, Office of Inspector General; the Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General; the IRS, Criminal Investigation; and the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit. Assistant U.S. Attorney Sara Beth Myers and Trial Attorney Anthony Burba of the Fraud Section of the Department of Justice’s Criminal Division are prosecuting the cases. The southern hub of the ARPO Strike Force operates out of Nashville.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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14 October 2019
Columbia Man Convicted on Federal Dog Fighting ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Santerrio Montinez Smith, age 32, of Columbia, was convicted by a federal jury on a dog fighting charge after a day-and-a-half long trial before United States District Judge Mary G. Lewis. The jury took just two hours to find Smith guilty. This was Smith’s second federal conviction this year; in August, he was convicted after trial for distributing and conspiring to distribute cocaine and heroin.
Smith was convicted of Buying, Possessing, Training, Transporting, and Receiving Animals for Purposes of Having the Animals Participate in an Animal Fighting Venture. He faces a maximum possible penalty of 5 years in prison for his conviction.
During the trial, the government called seven witnesses to establish that, between March and September 2017, Smith possessed pit bull terriers for the purpose of fighting the dogs. The evidence presented in court showed that Smith, who already had a 2014 state conviction for dog fighting, kept his fighting dogs at his grandmother’s house on Dubard Boyle Road in Richland County. On September 20, 2017, agents from the Federal Bureau of Investigation’s Columbia Violent Gang Task Force (CVGTF), with assistance from the ASPCA® (The American Society for the Prevention of Cruelty to Animals®), executed a search warrant at the residence on Dubard Boyle Road and seized eight pit bull-type dogs. Forensic veterinarian Dr. Cathy Anderson, DVM, examined the dogs and testified that two of the dogs had both scarring and fresh wounds indicative of the dogs having participated in organized dog fighting.
The jury heard testimony from Terry Mills, the Director of Blood Sports Investigations at the ASPCA, who educated them about the underworld of organized dog fighting. Mills, a former law enforcement officer with the Missouri Highway Patrol, testified that he had spent 18 months working undercover in a massive multi-state dog fighting investigation. During that time, he had essentially lived the life of a dog fighter. He described in detail the horrific treatment that dogs are forced to endure to become fighters, as well as what happens when a dog loses a fight. According to Mills, “the losing dog rarely leaves the building.”
Government attorneys then played a dozen recorded phone calls involving Santerrio Smith, his brother Dantrell Smith, their father James “Denny” Green, and other known dog fighters, discussing the dogs and different aspects of dog fighting. During one call, Santerrio Smith and another dog fighter made arrangements for an upcoming fight.
Both Dantrell Smith and James Green have pleaded guilty to federal dog fighting charges. Santerrio Smith, Dantrell Smith, and Green will be sentenced after the court has received and reviewed a sentencing report prepared by the United States Probation Office.
Although dog fighting is a felony in all 50 states and the District of Columbia, it continues to occur in every part of the country and in every type of community. ASPCA experts estimate that there are tens of thousands of dog fighters across the country forcing hundreds of thousands of dogs to train, fight, and suffer for the entertainment and profit of spectators as part of this brutal “blood sport.” In the past nine years, the ASPCA has assisted with approximately 200 dog fighting cases in at least 24 states, and it has impacted through rescue, consultations, and investigations nearly 5,000 victims of dog fighting.
This case was investigated by the FBI’s CVGTF, which is comprised of law enforcement officers from the FBI, South Carolina Law Enforcement Division (SLED), Columbia Police Department (CPD), Richland County Sheriff’s Department (RCSD), Lexington County Sheriff’s Department (LCSD), Lexington Police Department (LPD), and the South Carolina National Guard. The case was prosecuted by Assistant United States Attorneys Jane B. Taylor and Christopher D. Taylor.
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11 October 2019
Woman Convicted of Sexual Battery of a Child Sentenced for Illegal ReentryRead the Press Release
ALEXANDRIA, Va. – A Bolivian woman who was recently convicted of aggravated sexual battery of a child family member was sentenced today to more than a year in prison for illegally reentering the United States.
“This case is yet another example of an individual who is here in the United States illegally and committing serious crimes,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Not only did Siles reenter this country illegally, but she used her time here to sexually abuse a vulnerable child. We will continue to investigate and prosecute these criminal immigration cases, especially those with defendants like Siles that pose a significant threat to the most vulnerable in our communities.”
According to court records and evidence presented at trial, Lourdes Terrazas Siles, 39, is a native and citizen of Bolivia. Terrazas Siles was previously removed from the United States in 2000, after she attempted to enter the United States with a fraudulent passport. Sometime thereafter, Terrazas Siles reentered the United States without permission to do so. She was found in the United States in August 2016, when she was arrested for felony aggravated sexual battery by a parent, step-parent, grandparent, or step-grandparent of a victim at least 13 but less than 18 years of age. She was convicted in Virginia on aggravated sexual battery charges in June 2017.
“This woman attempted to thwart our immigration laws first by entering illegally and again by returning after she was removed,” said Lyle Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO). “Her choice to return was not only a crime in itself, it gave her the opportunity to victimize the child she was meant to care for.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Anthony W. Mariano and Assistant U.S. Attorney Danya E. Atiyeh prosecuted the case. This case was previously handled by Special Assistant U.S. Attorney Jessica Kraft.
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-127.
Westbank Gunman Sentenced to 15 Years for Two Attempted Robberies in Orleans Parish and One Robbery in Jefferson ParishRead the Press Release
NEW ORLEANS, LOUISIANA –DARRYL HENRY (“HENRY”), age 27, was sentenced on October 9, 2019, for committing three Hobbs Act Robberies and Brandishing a Firearm during a Crime of Violence, announced United States Attorney Peter G. Strasser.
On August 24, 2018, HENRY entered the Walmart Supercenter at 4001 Behrman Place in Algiers, New Orleans, Louisiana, and passed the teller a demand note and displayed a firearm. The teller was unable to open the safe, and HENRY left the business empty-handed. HENRY then went to the Winn-Dixie Supermarket at 3008 Holiday Drive, in Algiers, New Orleans, Louisiana, and unsuccessfully attempted to rob a clerk at that location. HENRY then drove to the Walmart Neighborhood Market located 3265 Manhattan Boulevard, Harvey, Louisiana, and passed a demand note to a cashier while holding a gun in his right hand. HENRY ultimately fled the store with $6,992.00 in United States currency.
HENRY was sentenced to 180 months by United States District Judge Lance M. Africk. HENRY was also sentenced to a period of five (5) years of supervised release after his term of imprisonment.
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.
U.S. Attorney Strasser praised the diligent work of the Federal Bureau of Investigation’s New Orleans Violent Crime Task Force, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office. Assistant U.S. Attorney Myles Ranier is handling the prosecution.
Washington man sentenced to more than 15 years in prison for possessing meth, heroin for distributionRead the Press Release
MISSOULA—A Washington man convicted of possessing methamphetamine and heroin for distribution after his arrest following a high-speed chase was sentenced this week to 15 years and eight months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Juan Jose Camarena, 37, of Tacoma, WA, pleaded guilty in June to possession with intent to distribute meth, possession with intent to distribute heroin and possession of ammunition by a prohibited person.
U.S. District Judge Donald W. Molloy presided at the Oct. 10 hearing. Judge Molloy also ordered forfeiture of $6,750 and ammunition.
The prosecution said in court records that a Montana Highway Patrol trooper arrested Camarena on Oct. 24, 2018 after a high-speed chase on Interstate 90 in which speeds approached 120 mph. Law enforcement served a search warrant on Camarena’s 2006 Mercedes and seized 9mm ammunition, drug paraphernalia, $6,750 in U.S. currency and drugs, including meth and heroin.
Camarena admitted to drug task force officers that he had fled the MHP trooper because he had “pounds” of drugs in his car and was concerned for his safety. He admitted stealing the drugs from a person in Missoula who owed him a debt. Camarena also admitted throwing drug evidence out of the car during the chase. Officers recovered about 3.1 pounds, which is the equivalent of about 11,234 doses, of meth and 99 grams of heroin from the car. In addition, Camarena was prohibited from possessing ammunition because of a prior conviction.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Montana Highway Patrol, the Missouri River Drug Task Force and the Anaconda-Deer Lodge County Police Department.
The 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.
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Warren Man Pleads Guilty to Possessing Multi-Kilogram Quantities of Heroin and CocaineRead the Press Release
Warren, Michigan man pleaded guilty October 1, to possessing with intent to distribute cocaine and heroin, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Keith Martin, Drug Enforcement Administration, Commissioner William Dwyer, Warren Police Department and Chief Dale Dwojakowski, Sterling Heights Police Department.
Pleading guilty was Lewis Darnell Payne, 46. Lewis is scheduled to be sentenced before United States District Judge Linda A. Parker of the Eastern District of Michigan on January 15, 2020, where he faces at least ten years in prison and five years of supervised release.
According to court records, Payne was arrested in May 2018 at his Warren residence where officers seized a handgun and valuable jewelry. The same day officers executed search warrants at two other locations in Detroit and Warren that Payne used to store drugs. From the two locations officers seized nine kilograms of cocaine, seven kilograms of heroin, five firearms, and $189,000 in cash.
“Drug distribution is one of the root causes of the degradation of our communities,” stated United States Attorney Matthew Schneider. Federal agencies will continue to work together closely with local law enforcement to eradicate this poison from our communities,” stated U.S. Attorney Schneider.
“This is a clear message to drug traffickers in Southeastern Michigan. If you sell drugs we will find you and prosecute you to the full extent of the law,” said Special Agent in Charge Keith Martin.
Chief Dwojakowski stated, “A case like this is exactly why the Sterling Heights Police Department assigns narcotics officers to the DEA task force. Our officers, working together with the DEA, were able to take down a large scale drug operation and remove enough narcotics that would have flooded our streets and no doubt led to further deaths and drug violence. We are committed in our partnership with the DEA, and let it be known, that if you decided to make a living selling drugs, you will be caught and you will be prosecuted.”
“This was an excellent investigation conducted by the DEA, Sterling Heights Police Department, and Warren Police Department,” stated Commission Dwyer. “Together federal and local law enforcement continued to fight the epidemic that is killing thousands of Americans every year. Those responsible for poisoning our communities by selling and distributing illicit drugs will face serious consequences.”
The investigation of the case was conducted by the Drug Enforcement Administration (DEA) with task force officers from Sterling Heights and Warren police departments. Assistant United States Attorney Andrea Hutting prosecuted the case for the United States.
Virginia Beach Area Woman Sentenced to More than 10 Years in Prison for Sex TraffickingRead the Press Release
BOSTON – A Virginia Beach area woman was sentenced yesterday in federal court in Springfield for sex trafficking.
Claire Poole, 41, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 125 months in prison and five years of supervised release after pleading guilty to conspiracy to commit sex trafficking and two counts of sex trafficking. Poole was arrested on July 7, 2017, and has been detained since that time.
Poole moved to the Springfield area in early 2017 and began helping co-defendant Walter Brown have sex with a teenage girl. Brown induced the girl to provide pornographic videos and to have sex with him on two occasions by paying her money. Poole acted as a go-between, first by conveying Brown’s initial offer to the girl and then by relaying Brown’s messages to the victim, which included negotiations about what Brown would pay. Poole also provided a cell phone to produce the pornographic videos, and Poole transported the minor to Brown’s house in Ware for sex on two occasions.
Brown is scheduled to plead guilty on Oct. 18, 2019.
United States Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Ware Police Chief Shawn Crevier; Monson Police Chief Stephen Kozloski; and Amherst Police Chief Scott Livingstone made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Van Nuys Man Who Sold Fentanyl that Led to Fatal Overdose Agrees to Plead Guilty to Narcotics Charge and Serve 15 Years in PrisonRead the Press Release
LOS ANGELES – A Van Nuys man who sold the powerful synthetic opioid fentanyl to a 23-year-old man who suffered a fatal overdose has agreed to plead guilty to drug trafficking offense and serve 15 years in federal prison.
James Dorion Rodriguez, 28, agreed to plead guilty to possession of fentanyl with intent to distribute in a plea agreement filed today in United States District Court.
In the plea agreement, Rodriguez admits that he delivered fentanyl to the victim, who ingested the drug and suffered a fatal overdose in Sherman Oaks on the morning of March 18, 2018.
Court documents filed in this case detail how investigators used surveillance video, phone records and witness statements to determine that Rodriguez supplied the narcotics to the victim only hours before he was found dead. Investigators believe that Rodriguez had intended to sell cocaine to the victim, but accidentally gave him fentanyl instead. The overdose was the result of him snorting the fentanyl.
Rodriguez is expected to appear to enter his guilty plea before United States District Judge Cormac J. Carney later this month. The plea agreement calls for Judge Carney to impose a sentence of 15 years in federal prison. Should Judge Carney decide to impose a different sentence, either Rodriguez or the government could withdraw from the plea agreement and the case would proceed to trial.
The investigation into Rodriguez was conducted by the Los Angeles Police Department and the Drug Enforcement Administration. The case initially brought against Rodriguez one year ago was the first pursuant to a law enforcement partnership established to aggressively investigate opioid overdose deaths and prosecute the responsible drug dealers. The Drug Enforcement Administration’s Opioid Response Team is part of the Southern California Drug Task Force, which operates under the auspices of the Los Angeles High Intensity Drug Trafficking Area (HIDTA) program.
This case is being prosecuted by Assistant United States Attorney Benjamin Barron, Chief of the Santa Ana Branch Office.
Unlicensed Lawyer Sentenced to More Than 4 Years in Federal Prison for Cheating ‘Clients’ and Fraudulently Seeking Income Tax RefundsRead the Press Release
LOS ANGELES – A Pasadena man who falsely claimed to be a licensed attorney was sentenced today to 50 months in federal prison for his conviction on charges related to his representation of “clients” in federal and state courts.
Kenneth Paul Ferreyro, 37, who resided in Glendale during most of the criminal conduct, also sought well over $100,000 in refunds on federal tax returns that falsely claimed substantial payroll taxes had been withheld and remitted to the IRS.
United States District Judge John F. Walter imposed the sentence, calling Ferreyro’s criminal conduct “absolutely despicable.” In addition to the prison term, Judge Walter ordered Ferreyro to pay $190,887 in restitution to the IRS.
Following a four-day trial in April, a federal jury convicted Ferreyro of four counts of wire fraud and four counts of making false claims on his tax returns. Judge Walter remanded Ferreyro into custody after the guilty verdicts were read.
The evidence presented at trial showed that, from at least 2010 until 2017, Ferreyro told people, most of whom were affiliated with his father’s church, that he could represent them in United States Bankruptcy Court and other courts, and that he could perform work related to real estate refinancing and tax liens. While Ferreyro graduated from law school, he never received a license to practice law.
In relation to several victims, Ferreyro prepared and/or filed bankruptcy petitions in Los Angeles, Sacramento and Phoenix. In relation to petitions filed in the Central District of California, Ferreyro concealed his participation by claiming that the victims were filing on their own behalf. Ferreyro also claimed he could “represent” a person in a child custody dispute in Idaho state court, and he charged another person $5,000 based on false claims he could remove federal tax liens so the victim could refinance a residence.
Ferreyro, who at times described himself as a “tax attorney,” also defrauded the government by making false claims on tax returns he filed for the years 2013 through 2016. Ferreyro submitted tax returns to the IRS which falsely stated that he and his wife had already paid substantial amounts of payroll taxes. He also fraudulently sought refunds totaling $126,826, some of which was paid by the IRS.
“Amazingly, even the indictment in this case could not deter defendant from continuing to commit fraud,” prosecutors wrote in a sentencing memorandum. Earlier this year – while free on bond in this case and under a court order prohibiting him from providing legal services to any California resident – Ferreyro falsely claimed to a California couple that he was he was an attorney and a member of the military’s Judge Advocate General Corps. Prosecutors alleged in the sentencing memo that Ferreyro “told the couple he could help them with their tax returns for $2,000, and help them protect assets by incorporating a trust or limited liability company.”
The investigation into Ferreyro was conducted by IRS Criminal Investigation, the FBI, and the United States Postal Inspection Service. The United States Trustee Program offices in Los Angeles, Sacramento and Phoenix provided substantial assistance.
The matter was prosecuted by Assistant United States Attorneys Monica E. Tait and Ashwin Janakiram of the Major Frauds Section.
U.S. Attorney’s Office Reaches ADA Settlement with Gymnastics Facility to Ensure That Children with Disabilities Receive Equal Access to Its ServicesRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached an Americans with Disabilities Act (ADA) settlement with a Bergen County, New Jersey-based gymnastics facility to ensure equal access for children with disabilities, U.S. Attorney Craig Carpenito announced.
The U.S. Attorney’s Office determined that Paragon School of Artistic Gymnastics (Paragon) of Norwood, New Jersey, violated the ADA by refusing to make reasonable modifications to its program and then excluding children on the basis of disability. The matter stems from a complaint alleging that Paragon cancelled a child’s birthday party after learning that the birthday child and guests had disabilities.
According the to the complaint, Paragon required parents of any child with a disability that wanted to participate in a Paragon birthday party to provide an individual to “shadow” the child throughout the party, regardless of the child’s disability or individual needs.
Under Title III the ADA, places of public accommodation such as Paragon must make reasonable modifications to policies and practices to permit persons with disabilities to participate in its services. Places of public accommodation also cannot impose additional eligibility criteria or a surcharge on persons with a disability wishing to participate in its goods and services, and cannot deny access to good and services to people associated with someone with a disability.
Under the settlement agreement, Paragon has agreed to implement policies and procedures to ensure that children with disabilities are afforded full and equal opportunities to participate in and benefit from its programs and parties, to publish on its website a statement of its policy on the prohibition of disability discrimination, and to provide mandatory training on the ADA and its prohibition of disability discrimination to all Paragon employees. Paragon will also pay $3,000 in damages to the minor complainant and $2,000 to that complainant’s parents, as well as a $1,000 civil penalty to the U.S. Treasury.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office here. Additional information about the ADA can be found at ADA.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
The government is represented by Assistant U.S. Kelly Horan Florio of the U.S. Attorney’s Office Civil Rights Unit in Newark.
Two nurses charged in health care fraud and illegal kickback schemeRead the Press Release
HOUSTON - Two Houston area nurses are set to appear in federal court on charges they defrauded Medicare of more than $2.1 million, announced U.S. Attorney Ryan Patrick.
The indictment, returned under seal Oct. 9, was unsealed today upon the arrests of Joseph Nwankwo, 56, Houston, and Stacey Ajaja, 49, Richmond. They are expected to make their initial appearance at 2 p.m. before U.S. Magistrate Judge Nancy K. Johnson today.
According to the indictment, Nwankwo and Ajaja co-owned Hefty Healthcare Services Inc. From 2014 through 2016, Hefty allegedly billed Medicare for home health services that were never provided and not medically necessary. Nwankwo and Ajaja obtained patient referrals by paying marketers and patients and bribed physicians to authorize medically unnecessary home health services for Hefty patients, according to the charges. The indictment also alleges they created phony medical records to perpetrate the healthcare fraud.
Nwankwo and Ajaja are both charged with one count of conspiracy to commit health care fraud, five counts of health care fraud and one count of conspiracy to pay and receive health care kickbacks.
Conspiracy to commit health care fraud and each of the health care fraud charges carry a maximum punishment of 10 years in federal prison and a possible $250,000 maximum fine, upon conviction. If convicted of conspiracy to pay and receive health care kickbacks, they also face a maximum possible punishment of five years and a $25,000 fine.
The Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and the FBI conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Tahlequah Women Sentenced for False StatementRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Amanda Louise Ellis, age 40, of Tahlequah, Oklahoma, was sentenced on August 8, 2019, to 12 months’ imprisonment and 3 years of supervised release for False Statement in violation of Title 18, United States Code, Section 1001(a)(2). Ellis was also ordered to pay restitution in the amount of $89,324.78. In a related matter, Julieann Logsdon, age 33, of Tahlequah, Oklahoma, was sentenced on October 10, 2019, to 18 months’ imprisonment and 2 years of supervised release for False Statement, in violation of Title 18, United States Code, Section 1001. The charges against Ellis and Logsdon arose from an investigation by the Tahlequah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The investigation was related to an August 26, 2017 arson at Mail-Mart, a shipping business located at One Plaza South in Tahlequah.
The Information charging Ellis alleged that on August 28, 2017, within the Eastern District of Oklahoma, Ellis willfully and knowingly made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the executive branch of the government of the United States, by stating she had received a phone call from a specific individual, although she knew the call had come from someone else.
The Indictment charging Logsdon alleged that on August 29, 2017, within the Eastern District of Oklahoma, Logsdon willfully and knowingly made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the executive branch of the government of the United States, by claiming she entered the MailMart and turned off the alarm, at a specific date and time. Contrary to her statement, as the defendant then and there knew, she did not enter the MailMart and did not turn off the alarm at that time.
United States Attorney Brian J. Kuester said, “Federal law enforcement agents have difficult jobs. Their work is made even more difficult when people who have knowledge of a crime lie to agents in an effort to sabotage an investigation. Fortunately, during the course of this investigation it became apparent that Ellis and Logsdon had lied to investigators. As a result, they are being held accountable.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Assistant United States Attorney Dean Burris represented the United States.
Two Camden Men Admit Roles in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Two members of a drug-trafficking organization have pleaded guilty this week to distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.
Paul Salcedo, 29, of Camden, New Jersey, pleaded guilty Oct. 10, 2019, and Waldemar Garcia, 33, of Camden, pleaded guilty Oct. 7, 2019, before U.S. District Judge Renee Marie Bumb in Camden federal court, to their respective roles in a drug trafficking conspiracy that was based on the 500 block of Pine Street in Camden. The pleas reflected that the members of the drug-trafficking organization sold massive amounts of heroin as well as crack cocaine, cocaine, and fentanyl in and around Camden. Salcedo also admitted his role as a manager or supervisor of the conspiracy.
Two top-level managers of the drug-trafficking conspiracy, Ronnie Lopez and Nelson Salcedo, previously pleaded guilty in this case. The charges against 15 other defendants in this case remain pending.
According to documents filed in this case:
An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the Camden drug-trafficking organization.
The counts to which Waldemar Garcia and Paul Salcedo pleaded guilty carry a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations against the other defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Twenty-Two Year Sentence for Drug and Money Laundering ChargesRead the Press Release
LEXINGTON, Ky. – Marcos Salas Mendoza, 30, was sentenced to 22 years in federal prison for his role in a conspiracy to distribute cocaine, fentanyl, and acetylfentanyl, and to launder drug proceeds.
The investigation into Salas’ criminal activities began in 2018 and was jointly conducted by the Drug Enforcement Administration and the Lexington Division of Police. As part of the overall scheme to distribute drugs and to launder money, Salas, co-defendant Marcos Gonzalez Garfias, and others routinely smuggled drugs and drug proceeds in the axles of vehicles to avoid detection by law enforcement. Gonzalez Garfias previously pleaded guilty to the same offenses and is scheduled to be sentenced on November 1.
According to court documents, when agents executed a search warrant at Salas’s “stash house” in Lexington, they found multiple disassembled axles. The agents found large quantities of controlled substances concealed within those automotive parts and concealed within numerous appliances, such as the dishwasher, microwave oven, stove and refrigerator. Overall, agents located a total of over 3 kilograms of fentanyl nearly 1 kilogram of acetylfentanyl, and nearly 10 kilograms of cocaine from the search of the residence and a storage unit. Agents also located $134,000 in drug proceeds at the stash house.
A total of approximately $257,000 in drug proceeds was seized and forfeited as a result of the investigation. Salas admitted in his plea agreement that the drug proceeds were destined for Mexico to members of the larger drug trafficking organization to promote their drug-trafficking activities.
“Fentanyl is potentially lethal at very low levels – a dose as small as 2 milligrams can be deadly. The defendant is responsible for conspiring to distribute nearly 6 pounds of fentanyl and over a pound of acetylfentanyl- enough to kill well over one million people,” said United States Attorney Robert M. Duncan Jr. “I commend the cooperative efforts of the Lexington Police Department and DEA in this investigation. Removing these large quantities of deadly drugs from the community undoubtedly saved lives. The lengthy sentence imposed by the Court reflects the dangerousness of the defendant’s conduct and should serve as a warning to others involved in similar drug trafficking activities.”
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky; Daniel Dodds, Acting Special Agent in Charge, DEA Louisville and Lawrence Weathers, Chief of Police, Lexington Division of Police, jointly announced the indictment. Assistant United States Attorney Todd Bradbury prosecuted the case on behalf of the United States.
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Tulsa Man Indicted for Attempting to Destroy His Apartment Building with Explosive MaterialsRead the Press Release
A federal grand jury returned an indictment this week charging Charles Michael Fox, 44, of Tulsa, with attempting to destroy his apartment building by means of fire and explosive materials, announced U.S. Attorney Trent Shores.
The incident began on Sept. 29, 2019, at the French Villa Apartments, located on Harvard Avenue in Tulsa, and lasted until early the next morning. The Tulsa Police Department’s Bomb Squad and Special Operations Division; Tulsa Fire Department’s Engine and Ladder 23 and HAZMAT crews; Emergency Medical Services Authority (EMSA); and Oklahoma Natural Gas responded to the incident.
“Attempted destruction of a building by fire and explosive materials is a serious violation of federal law. The emergency responders who handled this potentially life threatening situation are to be commended. I appreciate their dedication to the safety of residents living in our community,” said U.S. Attorney Trent Shores. “This indictment stems from an incident in which Mr. Fox is alleged to have threatened to blow up his apartment building during a domestic dispute and then took steps to do so. The alleged criminal acts placed residents of the apartment complex in harm’s way and caused the use of significant law enforcement and emergency resources.”
The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
An indictment is a formal statement of charges or alleged violations of law. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tortola Man Sentenced to 10 Months for Possession of a 40 cal. Firearm by an Illegal AlienRead the Press Release
St. Thomas, USVI – Ashan Westcott, 29, of Tortola, British Virgin Islands, was sentenced on Thursday, October 10, 2019, for possession of a firearm by an illegal alien, United States Attorney Gretchen C.F. Shappert announced.
District Judge Curtis V. Gomez sentenced Westcott to 10 months in prison, followed by a one-year term of supervised release.
According to the plea agreement, on March 2, 2019, the Virgin Islands Police Department ("VIPD") responded to a motorcycle and vehicle accident on Turpentine Run Road, St. Thomas, U.S. Virgin Islands. Westcott, who was injured in the accident, was identified as the driver of the motorcycle. In response to an EMT’s request to locate the defendant’s ID, a VIPD officer looked in a backpack Westcott had been wearing at the time of the accident. While looking for the ID, the officer found a loaded Glock Model 23, .40 caliber handgun in Westcott’s backpack.
Westcott is a citizen of Tortola, British Virgin Islands and when he was apprehended on March 2, 2019, was in the United States illegally.
This case was investigated by the Virgin Islands Police Department, Federal Bureau of Investigations, and U.S. Customs and Border Protection, and was prosecuted by Assistant United States Attorney Meredith J. Edwards.
Sterling Heights Man Pleads Guilty to Exporting Firearms Parts Hidden Inside Toy Motorcycles to AustraliaRead the Press Release
A Sterling Heights man pleaded guilty today to willfully exporting firearms parts without a license, announced Matthew Schneider, United States Attorney for the Eastern District of Michigan.
Schneider was joined in the announcement by Special Agent in Charge Vance Callender of Homeland Security Investigations (HSI), Detroit.
Rrok Martin Camaj, 34, entered the guilty plea before United States District Court Judge Terrence G. Berg.
According to court records, from March 2018 through January 2019, Camaj sent firearms parts—including pistol frames, firing pins, springs, ejectors, and magazines—through the mail to cohorts in Australia. The parts were thereafter assembled into operable firearms in Australia. Australia has some of the strictest gun laws in the world. Black market handguns cost more than $15,000 on the street in Australia. To lawfully ship firearms and certain firearms parts—including those sent by Camaj—an individual or business must be licensed. Camaj was not licensed.
To avoid detection by law enforcement officers, Camaj secreted the firearms parts inside large motorized toy motorcycles.
“When Americans attempt to exploit the black market for firearms in Australia, we will respond and hold them accountable,” stated United States Attorney Schneider.
“Investigating international arms trafficking is a priority for HSI,” said Special Agent in Charge Vance Callender, HSI Detroit. “HSI stands vigilant to deny transnational criminal organizations the ability to use arms to promote criminal activity overseas. I salute AFP for their partnership with us in the investigation. HSI will continue to work with our foreign and domestic law enforcement partners to fight international arms smuggling and ensure the integrity of our borders.”
Australian Federal Police (AFP) Detective Superintendent Andrew Bailey took this opportunity to thank the AFP’s Homeland Security Investigation partners and reiterate just how vital international law enforcement cooperation continues to be to Australian operational policing success.
“Attempting to import items like these will always attract a swift and comprehensive response from law enforcement. We do not want unregulated and unchecked items possibly making their way to criminal groups, which then has far-reaching consequences for the safety of the community,” stated Bailey. “There is now no chance that these weapons will end up on the streets in the hands of criminals. The AFP and our partners will continue to work together with our international colleagues to stop these items entering our community. This is an example of cooperative policing with a positive outcome for everyone.”
Assistant United States Attorney Kevin M. Mulcahy of the Eastern District of Michigan, prosecuted the case. Agents from the Department of Homeland Security, Homeland Security Investigations investigated the case
Seven Indicted in California to Rhode Island Drug Trafficking PipelineRead the Press Release
PROVIDENCE – Seven individuals have been indicted for their alleged roles in a drug trafficking conspiracy that investigators believe is responsible for the shipment of more than 200 packages containing significant quantities of heroin and cocaine from the Los Angeles, CA., area to rented commercial mailboxes in dozens of locations in greater Providence and Southeastern Massachusetts.
The investigation revealed that more than 100 packages containing large amounts of cash were allegedly sent from the greater Providence area Southeastern Massachusetts back to members of the conspiracy in Los Angeles, Culver City, and Marina del Rey, CA.
A federal indictment unsealed Thursday in U.S. District Court in Providence, RI, charges two individuals from Los Angeles and five individuals from Providence with allegedly having had some role in ensuring that large quantities of drugs were shipped from the Los Angeles area to Southern New England and that payment for the drugs was shipped to the Los Angeles area.
According to court documents and information presented to the Court, investigators from the United States Postal Inspection Service (USPIS) and the Rhode Island State Police High Intensity Drug Trafficking Area (HIDTA) Task Force determined that beginning in as early as February 2017, Robert A. Brown, 41, and Deondre Jones, 42, of Los Angeles, allegedly began shipping packages of cocaine and heroin from the Los Angeles area to commercial mailboxes in Southern New England. The mailboxes were allegedly rented by Valerie G. Gamboa, 26, Marion V. Gamboa, 25, and Giselle S. Polanco, 21, of Providence, using fraudulent driver’s licenses.
According to court documents, the packages were allegedly retrieved from the mailboxes by Joel P. Sennon, 41, and Shawn A. Silva, 37, of Providence, Polanco, and others. Packages containing payment for the drugs were allegedly mailed to Brown, Jones, and others in the Los Angeles area by Silva and others.
USPIS and HIDTA investigators determined that members of the conspiracy allegedly shipped at least 219 packages containing large quantities of cocaine or heroin, including packages containing 383 grams of heroin and 560 grams of cocaine seized by law enforcement, to commercial mailboxes in Southern New England. At least 107 packages containing large amounts of cash for payment for the drugs were mailed to the Los Angeles area. Many of the mailings and the retrieval of packages were captured on video surveillance.
A court-authorized search of Brown’s Los Angeles apartment on August 14, 2019, resulted in the seizure of more than a kilogram of cocaine in vacuumed sealed bags, $32,150 in cash, a loaded semi-automatic handgun and a semi-automatic rifle, various Priority Mail package receipts, commercial mailbox rental receipts, numerous fraudulent driver’s licenses, a cash counting machine, and various items used in the packaging and distribution of drugs.
The indictment is announced by United States Attorney Aaron L. Weisman, Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Christine D. Lowell.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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Serial Fraudster Sentenced to 46 Months in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Curlee Smittee, Jr., age 47, of Baltimore, to 46 months in federal prison, followed by five years of supervised release, for conspiracy to commit wire fraud and bank fraud, and for bank fraud, resulting in losses of more than $373,000. Judge Chasanow also entered an order requiring Smittie to pay restitution of $342,776.89.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to Smittee’s plea agreement, from March 2013 through July 29, 2015, while Smittee was on supervised release from a previous federal fraud conviction, he and his long-time romantic partner, Douglina Rosa Battle, conspired to defraud at 15 banks and credit card companies.
As detailed in his plea agreement, Smittee and Battle submitted fraudulent credit card and loan applications using false employment and earnings information, and false personal information, including name, address and social security numbers. Once the cards and loans were obtained, Smittie and Battle used them primarily for personal spending, but also applied some of the funds to avoid or postpone default on other fraudulent loans or credit cards. For example, Smittee submitted fraudulent applications to obtain car loans, but after obtaining the loan did not purchase the vehicle, instead depositing the check into a bank account controlled by Smittee and/or Battle.
In all, Smittee and Battle obtained a total of 53 credit cards and personal loans from 15 banks and financial services companies, resulting in losses of more than $373,000. Eleven of the credit cards were obtained by Smittee while he was on federal pretrial release after pleading guilty to a federal fraud charge, in violation of the requirement that he “not open any new lines of credit without prior approval of Pretrial Services.”
Douglina Rose Battle, age 43, of Baltimore, also pleaded guilty to the fraud scheme and was sentenced to four months in federal prison, followed by four months of home detention as part of three years of supervised release. Battle was also ordered to pay restitution of $188,746.81.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
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Rogers Woman Sentenced to Federal Prison for Wire Fraud and Bankruptcy FraudRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Monserrate Morales, age 29, was sentenced yesterday to serve 33 months in federal prison followed by three years of supervised release for her conviction on one felony count of Wire Fraud and one felony count of Bankruptcy Fraud. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in 2011, Morales began working for a local law firm where she conducted data entry into bankruptcy software, gathered documents, and drafted correspondence for two attorneys. Throughout her employment with the law firm, with rare exception, Morales was not authorized to collect client payments or deposit them without the assistance of other personnel. In April 2018, the FBI began investigating Morales based upon a bankruptcy fraud referral from the United States Trustee’s office.
The investigation revealed that Morales was converting cash payments from potential clients to her own use during the course of her employment with the law firm. In an effort to lull the potential clients and forestall inquiries into their cases, Morales told them that their documents were being prepared and their cases being filed, when, in many cases, the law firm was unaware that the potential clients had ever sought to retain the firm or made any payments. When the law firm was aware that clients had sought to retain the firm, Morales told attorneys that the clients had not been in contact, and, in some events, caused the closure of client files without informing the attorneys of payments made by those clients.
In furtherance of this scheme, Morales forged bankruptcy documents that contained the signatures of a Federal Judge, the Clerk of the Court’s name and title, and the seal of the Court on documents. She falsely informed potential clients that bankruptcy petitions were being filed on their behalf and forged court documents, bankruptcy documents, and other correspondence. These documents were created by Morales in order to forestall inquiries from clients, lull the clients into continuing payments to Morales, and to conceal her fraudulent behavior from the law firm and attorneys.
Morales was named in a two-count Information filed in May 2019, in the Western District of Arkansas, Fayetteville Division, and entered her guilty plea in May 2019.
The investigation was conducted by the FBI and the Springdale Police Department. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
Porum Man Sentenced to 121 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Anthony Michael Grant, age 35, of Porum, Oklahoma, was sentenced to 121 months’ imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The charges arose from an investigation by the Porum Police Department, the McIntosh County Sheriff’s Office, and the Federal Bureau of Investigation.
The Indictment alleges that on or about October 28, 2018, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Rural Oklahoma has seen so much devastation caused by methamphetamine. Overdose deaths caused by methamphetamine are on the rise and we must continue to diligently pursue drug dealers. Because of the joint efforts of the FBI and its Safe Trails Task Force agency partners, federal law enforcement resources were effectively used to make a positive impact in Eastern Oklahoma. Law enforcement works best when we work together.”
“The trafficking and use of methamphetamines have severely impacted communities across Oklahoma," said Special Agent in Charge Melissa Godbold of the FBI's Oklahoma City Field Office. “The FBI and our Safe Trails Task Force partners will continue to combat our state’s drug epidemic. “
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States.Port Barre Man Pleads Guilty to Transportation of a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Cory Shane Disotell, 48, of Port Barre, Louisiana, appeared before U.S. District Judge Robert R. Summerhays today and pled guilty to transportation of a minor with the intent to engage in criminal sexual activity.
According to facts presented during today’s plea, Disotell devised a plan to coerce a 15-year old Port Barre minor to leave school and run away with him. On March 28, 2019, the defendant traveled to the school where the minor was a student and convinced the child to leave with him. He then transported her to Mississippi, and thereafter to Durango, Colorado, where he was apprehended after an extensive nationwide manhunt. At the time of his arrest, the defendant admitted he took the child from Port Barre, Louisiana, to Mississippi, and ultimately to Durango, Colorado, engaging in sexual acts along the way.
At sentencing Disotell faces 10 years to life in prison, five years to life of supervised release, mandatory registration as a sex offender, a fine of up to $250,000, and forfeiture of a Braztech S41118 .410 caliber shotgun seized at the time of his arrest in Colorado. Judge Summerhays set sentencing for January 10, 2020.
The FBI, U.S. Marshal’s Service, Port Barre Police Department, Archuleta County Sheriff’s Office, and Durango, Colorado Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker and Supervisory Assistant U.S. Attorney Myers P. Namie are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.”
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Pill-mill doctor convicted on 16 counts of healthcare fraud, illegally dispensing drugsRead the Press Release
SAVANNAH, GA: A Savannah doctor who operated a “pill mill” dispensing massive amounts of controlled substances – usually in return for cash – has been found guilty on 16 counts after a three-and-a-half day trial.
Dr. Frank H. Bynes Jr., of Savannah, was found guilty by a federal jury on 13 counts of Unlawful Dispensation of Controlled Substances, and three counts of Health Care Fraud, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The penalty for the charges is up to 20 years in prison, followed by a period of supervised release, for each of the counts of Unlawful Dispensation of Controlled Substances, and 10 years for each of the counts of Health Care Fraud. There is no parole in the federal system.
Sentencing will be at a later date.
“The actions of Dr. Bynes are especially shocking in their massive scope, with countless individuals suffering because of the products of his illegal pill mill, including cocktails of opioids and other controlled substances, which he distributed to feed the addictions of people who were supposed to be in his care,” said U.S. Attorney Christine. “Medical professionals who violate their oaths and ethics while violating the law will find no safe haven in the Southern District, and we will be relentless in shutting down these white-coated drug dealers.”
According to court testimony and documents, Bynes worked at the MBA Community Clinic in Savannah, a/k/a MBA Diabetic Shoe and Supply Store, and at Georgia Laboratory Diagnostic in Garden City, where he wrote prescriptions for massive quantities of narcotics. Many of those prescriptions were for the known “holy trinity” drug cocktail of opioids, alprazolam and Soma, and were provided to large numbers of patients – including those who Bynes knew were addicted to controlled substances. According to evidence introduced at trial, Bynes prescribed the deadly drug cocktail more frequently to Medicare patients than any other physician in the United States.
While operating his illegal pill mill, Bynes falsely claimed to work for the Department of Justice and displayed false law enforcement credentials to his patients and others. Bynes also engaged in unprofessional sexual conduct with female patients, using his prescribing as a tool to coerce female patients.
Among other evidence introduced at trial, Bynes collected photographs of his female patients in his phone and e-mail accounts, including hundreds of women to whom he prescribed controlled substances. Evidence also included documents establishing Bynes knew multiple patients suffered an overdose – yet Bynes disregarded numerous warnings to continue to prescribe the drug cocktail on which his patients had overdosed. In addition, Bynes defrauded Medicaid, Medicare and Tricare, resulting in excess of $2 million in fraudulent pharmacy claims.
“For years, Dr. Bynes manipulated his patients and helped fuel one of the worst public health epidemics in Georgia’s history,” said Georgia Attorney General Chris Carr. “I am hopeful that the jury’s verdict may now begin the healing process for the many individuals and families afflicted by Dr. Bynes’ illegal prescribing practices.”
Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA) stated, “The dispensing of addictive prescription pain medication under the guise of a doctor’s care is not about the good of the community or an individual’s specific health needs; it is about greed. Individuals like Dr. Bynes who are involved in ‘pill mill’ activity are drug dealers who are licensed to wear white coats and carry stethoscopes. The guilty verdict makes the Savannah area a safer place today.”
“Today’s verdict underscores the egregious criminal conduct of Dr. Bynes,” says Derrick L. Jackson, Special Agent in Charge for Health and Human Services Office of the Inspector General (HHS-OIG) in Atlanta. “For a physician to engage in sexual acts with patients while writing an inordinate amount of unnecessary and fraudulent opioid prescriptions goes against the very oath he has taken to ‘first, do no harm.’ HHS OIG will continue to work with our partners to protect the health and well-being of all Americans.”
“It saddens me that Dr. Bynes victimized military members and their dependents who were struggling with addiction,” stated Special Agent in Charge Cynthia A. Bruce, Defense Criminal Investigative Service, Southeast Field Office. “DCIS and our law enforcement partners will fully investigate and bring to justice those who choose to put their own personal interests ahead of the medical well-being of their patients.”
“I am both excited and saddened by Doctor Frank Bynes’ conviction. One of the oldest oath’s in history, which doctors completing medical school still take today in various versions, states the ethical and moral obligations that doctors have to their patients. While the vast majority of the country’s licensed physicians are caring and conscientious individuals who hold the oath as inviolate, there are a minority of doctors that violate the sacred pledge they have taken and violate the trust of their patients. Sadly in this case, Dr. Bynes chose to violate his oath in exchange for sexual and financial gain,” said Everett Ragan, Director of the Chatham-Savannah Counter Narcotics Team (CNT). “In doing so, Dr. Bynes not only violated his oath but also violated the trust of his patients, flooding the Chatham County community and Southeast region with these very dangerous and addictive narcotic/opioid pain medications. I take pride in knowing the Chatham-Savannah Counter Narcotics Team played a major role in dismantling Dr. Bynes and his unlawful dispensation of controlled substances, and am thankful he can no longer poison our community.”
Any individuals who believe they were victims of Bynes should call Assistant U.S. Attorney J. Thomas Clarkson at (912) 652-4422.
The case was investigated by the DEA, HHS-OIG, DCIS, the Georgia Medicaid Control Fraud Unit, and CNT, and prosecuted for the United States by Assistant U.S. Attorneys J. Thomas Clarkson and Matthew Josephson, with assistance from Litigation Technologist Dean Athanasopoulos and Jim Mooney, Deputy Director of the Georgia Medicaid Control Fraud Unit and Special Assistant U.S. Attorney.
Pennsylvania woman sentenced for role in heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jalisa L. Hawkins, of Duquesne, Pennsylvania, was sentenced today to 39 months and 20 days incarceration for her role in a heroin distribution operation, United States Attorney Bill Powell announced.
Hawkins, also known as “Ashley,” age 30, pled guilty to one count of “Conspiracy to Distribute Heroin” and one count of “Distribution of Heroin in Proximity of a Protected Location” in June 2019. Hawkins admitted to distributing heroin, sometimes near Emmanuel Christian School in Clarksburg, from January 2016 to May 2016 in Harrison County and elsewhere.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Paris, Texas Man Sentenced to 60 Months Probation, $14,000 Restitution for Theft from Gaming EstablishmentsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Lyle Mooneyham, age 48, of Paris, Texas, was sentenced to 5 years of probation and ordered to pay $14,000 in restitution for one count of Theft from Indian Gaming Establishments in violation of Title 18, United States Code, Section 1167(b). The charges arose from an investigation by the Choctaw Nation Tribal Police and the Bureau of Indian Affairs.
The Indictment alleged that in December 2018, in the Eastern District of Oklahoma, the defendant willfully took and carried away with the intent to steal money, funds, and other property of a value in excess of $1,000.00 belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation of Oklahoma and the Chickasaw Nation Winstar World Casino and Resort, an Indian gaming establishment operated by the Chickasaw Nation of Oklahoma.
United States Attorney Brian J. Kuester said, “Working with our tribal law enforcement partners is a critical component to serving the people of the Eastern District of Oklahoma, and the tribal governments that are headquartered here. The U.S. Attorney’s Office values those relationships. Whether it be violent crime or, as in this case, financial crime, we are at our best when we work together.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Special Assistant United States Attorney Courtney Jordan represented the United States.Oshkosh Man Sentenced in Green Bay Federal Court for Illegal Firearm PossessionRead the Press Release
United States Attorney Matthew D. Krueger announced that on October 11, 2019, Scott E. Billington, (age: 28) of Oshkosh, Wisconsin, was sentenced to five years in federal prison for illegally possessing a firearm.
In September of 2018, officers with the Oshkosh Police Department obtained and executed a search warrant at Billington’s residence. Officers recovered a large amount of marijuana, approximately $10,000 in U.S. currency, a .40 caliber firearm, and .22 caliber firearm. Billington was convicted on state charges related to the marijuana.
A Special Agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) conducted further investigation and tied Billington directly to the firearms. Billington previously was convicted of domestic violence related battery in Winnebago County Circuit Court, and was therefore prohibited from ever possessing a firearm.
In handing down the sentence, Chief Judge Griesbach noted the “very serious nature of the crime” and the defendant’s lengthy criminal record. In addition to the five-year prison sentence, he ordered Billington to spend three years on supervised release following his release from federal prison.
This case was investigated by the Oshkosh Police Department and the Milwaukee office of the ATF. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Orlando Large-Scale Drug Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Sebastian Denton Zayas (30, Orlando) to 10 years and 10 months in federal prison for possession with the intent to distribute cocaine.
Denton had pleaded guilty on July 22, 2019.
According to court documents and statements made during today’s sentencing hearing, in May 2019, Denton possessed with the intent to distribute approximately 170 kilograms of cocaine, which was delivered to him by mail. In addition, in June 2019, Denton received another mail delivery of three packages that contained approximately 190 kilograms of cocaine.
“This investigation is a great example ATF’s broad investigative expertise,” said ATF Special Agent in Charge Daryl McCrary. “While working with our partners at DEA, this case severely impacted drug trafficking in our continued efforts to protect the public.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Operation Independence Day Arrest Results in Guilty PleaRead the Press Release
A man arrested as part of a month long operation to capture predators and identify child victims pleaded guilty Friday in federal court for sexual exploitation of a child, announced U.S. Attorney Trent Shores.
Thomas Dustin Daughtry, 42, of Sperry, illegally engaged with the minor from Feb. 18, 2019 through June 25, 2019. In his plea agreement, Daughtry stated that he knowingly enticed a 15-year-old into engaging in sexually explicit conduct and persuaded the minor to send sexual images to him.
“The U.S. Attorney’s Office is a fierce advocate for Oklahoma’s children,” said U.S. Attorney Trent Shores. “Child predators like Mr. Daughtry use the internet as their hunting grounds to find vulnerable prey. Prosecutors and our law enforcement partners will remain vigilant in our own righteous hunt for these abusers and bring them forward to account for their crimes.”
This prosecution resulted from Operation Independence Day, an investigation which was conducted in the month of July and resulted in nine individuals being charged federally in the Northern District of Oklahoma.
The nationwide operation relied on the 86 FBI-led Child Exploitation and Human Trafficking Task Forces, which leverage the resources and intelligence of other federal, state, local and tribal partners. In total, law enforcement recovered or identified 103 child victims and arrested of 67 sex traffickers.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Shannon Cozzoni is prosecuting the case.
Olean Man Going to Prison for More Than 15 Years for Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jacob Tunison, 30, of Olean, NY, who was convicted of receipt of child pornography, was sentenced to serve 188 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that in November of 2018, Tunison used Facebook to communicate with a minor female who was less than 16 years old. The defendant sent numerous lewd images of himself to the minor and solicited the minor to produce and send various images of herself to him.
The sentencing is the result of an investigation by the Cuba Police Department, under the direction of Chief Dustin Burch, and the Federal Bureau of Investigation, Jamestown Office, under the direction of Special Agent-in-Charge Gary Loeffert.
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Norwalk Bookkeeper Pleads Guilty to Fraud and Tax OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PENNI SHERMAN, also known as PENNI PARKER, 52, of Norwalk, waived her right to be indicted and pleaded guilty today in Bridgeport federal court to fraud and tax offenses stemming from an embezzlement scheme.
According to court documents and statements made in court, Sherman operated PSP Accounting & Bookkeeping, and provided bookkeeping services to area businesses. Between 2011 and 2018, Sherman stole a total of $418,197.09 from clients and used the funds to pay her own credit card bills and to cover other personal expenses, including salon services.
Sherman failed to report the embezzled funds, and certain other business receipts, on her federal income tax returns, resulting in a loss of $125,167 to the Internal Revenue Service.
Sherman pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of making and subscribing a false tax return, which carries a maximum term of imprisonment of three years. As part of her plea agreement, Sherman has agreed to make full restitution to victims and to the IRS.
When confronted about the embezzlement, Sherman returned $163,730 to one of her victims, from whom she had stolen more than $396,000.
Sherman is released pending sentencing, which is not yet scheduled.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). This case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
North Dartmouth Woman Admits to Obtaining Cocaine from Puerto Rico Through the U.S. MailRead the Press Release
BOSTON – A North Dartmouth woman pleaded guilty yesterday in federal court in Boston in connection with her role in obtaining cocaine from Puerto Rico through the mail.
Cristina Lopez, 44, pleaded guilty to conspiring to possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Leo Sorokin scheduled sentencing for Jan. 8, 2020.
Between March 2017 and August 2018, the U.S. Postal Inspection Service identified more than 40 suspicious parcels that had been sent through the mail from Puerto Rico to various addresses in Massachusetts, including residences in Quincy, North Dartmouth, Weymouth, and New Bedford. The suspicious parcels were often sent on the same day from Puerto Rico to two or more different addresses in Massachusetts. Agents executed search warrants on two of the parcels and seized approximately two kilograms of cocaine hidden in sealed coffee cans. Through surveillance, it was determined that Lopez and John Tavares, 31, of Weymouth, were receiving the majority of the parcels. It was also determined that Lopez and Tavares had been flying regularly from Massachusetts to Puerto Rico for trips lasting only 30 to 72 hours, and that the parcels suspected of containing cocaine were then typically sent to Massachusetts within one to three days after their return.
Multiple search warrants were executed on Aug. 18, 2018, including at three different residences in Weymouth, North Dartmouth and Boston. During those searches, more than three kilograms of cocaine, in excess of $100,000 in U.S. currency, two firearms and various drug paraphernalia was seized.
Tavares has pleaded not guilty and set to stand trial on Oct. 28, 2019. The details contained in the charging documents with respect to Tavares are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Norfolk County District Attorney Michael W. Morrissey; Bristol County District Attorney Thomas M. Quinn, III; and Bristol County Sheriff Thomas M. Hodgson made the announcement today. Police Departments in Quincy, Weymouth, Braintree, North Dartmouth and Boston also assisted with the investigation. Assistant U.S. Attorneys James E. Arnold and Nadine Pellegrini of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
Newark Man Admits Role in Drug Distribution After Seizure of Heroin at Newark Penn StationRead the Press Release
NEWARK, N.J. – A Newark man today admitted possessing heroin that was seized from him at Newark Penn Station, U.S. Attorney Craig Carpenito announced.
Jeremy Lorenzo, 30, of Newark, pleaded guilty before U.S. District Judge Kevin McNulty to one count of possession with intent to distribute more than 200 grams of heroin.
According to documents filed in this case and statements made in court:
Law enforcement officers learned of potential narcotics trafficking by train between Newark and Harrisburg, Pennsylvania. Lorenzo encountered law enforcement officers at Penn Station while waiting to board an Amtrak train to Harrisburg. Lorenzo’s statements and behavior caused law enforcement to suspect that he was transporting narcotics. After a certified narcotics dog signaled the presence of narcotics in Lorenzo’s bags, law enforcement initiated a search and recovered more than 200 grams of heroin.
The count to which Lorenzo pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison and a fine of up to $5 million. Sentencing is scheduled for Jan. 22, 2020.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s guilty plea. He also thanked officers of NJ Transit Police for their assistance.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
New Orleans Man Pleads to Violations of Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that BRIAN STEPHENS, age 35, of New Orleans, pleaded guilty on October 8, 2019 to possessing firearms after felony convictions.
According to court documents, STEPHENS, a convicted felon, possessed firearms on three instances after being convicted of a felony. On July 16, 2017, STEPHENS was stopped in a vehicle in possession of a firearm with an obliterated serial number. On October 3, 2018, STEPHENS discarded a stolen firearm during a foot chase with police officers. On December 20, 2018, law enforcement officers executed a search warrant at STEPHENS’ home in Metairie and located two firearms, one of which was stolen.
Court documents indicate that, if the District Court finds that STEPHENS’ prior convictions satisfy the Armed Career Criminal Act, 18 United States Code, 924(e), he faces a term of imprisonment of 15 years to life, a fine of $250,000, and up to five years of supervised release. If STEPHENS is not sentenced under this statute, he faces a term of imprisonment of up to 10 years, a fine of $250,000, and up to three years of supervised release. U.S. District Court Judge Wendy B. Vitter set sentencing for STEPHENS for January 7, 2020 at 1:30 p.m.
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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Louisiana State Police, the Federal Bureau of Investigation, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
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New Orleans Man Pleads Guilty to Conspiracy to Commit Access Device Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RYAN CLARK, age 34, of New Orleans, LA, pleaded guilty on October 9, 2019 to conspiracy to commit access device fraud and aggravated identity theft (count 1) and aggravated identity theft (count 3) before U.S. District Judge Lance M. Africk.
According to court documents, the defendant was arrested after an investigation initiated by the Jefferson Parish Sheriff’s Office and the United States Secret Service. CLARK and others created and sold fake Louisiana drivers’ licenses with the names and dates of birth of real persons who were victims of identity theft. Using the fake licenses, CLARK facilitated the sale of at least six motor vehicles from several local dealerships. The fraudsters would use the stolen identities and the fake licenses to buy high end used cars. No money was ever paid and the loans went into default.
CLARK is facing up to five years of incarceration for the conspiracy (count 1) and two years consecutive to whatever sentence is imposed for the aggravated identity theft (count 3). Each count can be followed by up to three years of supervised release. Sentencing is set for January 22, 2020.
U.S. Attorney Strasser praised the agencies that contributed to this indictment, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, U.S. Postal Inspection Service, Louisiana Attorney General’s Office, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. U.S. Attorney Strasser also thanked the Jefferson Parish District Attorney’s Office for their assistance. The case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
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Nevada Real Estate Broker Sentenced to Prison for Tax FraudRead the Press Release
William Waller Jr., a Las Vegas real estate broker and the owner of Burbank Holdings or Platinum Properties, was sentenced today to 78 months in prison for tax evasion and willful failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
“The vast majority of Americans work hard to file honest tax returns and pay their fair share of taxes every year,” said Principal Deputy Assistant Attorney General Zuckerman. “Those who willfully evade taxes with false claims that the tax laws do not apply to them will be prosecuted and risk imprisonment, like William Waller’s sentence today.”
“Paying your taxes is not a choice, hiding your income in shell companies is not an option, and lying about those practices will not be tolerated as demonstrated by today’s sentencing,” said Chief Don Fort, IRS Criminal Investigation.
According to court pleadings and evidence presented at trial, Waller sought to evade taxes by incorporating a shell entity, opening bank accounts in its name, and directing his income into those accounts rather than accounts in his own name. He also dealt extensively in cash and reduced his equity in his home, the only asset he held in his own name, thereby making it an unattractive asset for the IRS to seize.
Waller testified at trial that he believed that he was not required to file tax returns or pay taxes, but acknowledged that he was influenced by the teachings of several prominent tax defiers. These included one who had been convicted three times of tax fraud, and another who had been stripped of his CPA license. Waller also admitted to purchasing and watching tax defier courses, including one on how to beat criminal tax charges. Following the defendant’s testimony and the conclusion of the trial, the jury returned guilty verdicts on March 18, 2019.
In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan also ordered Waller to pay $1,459,535.70 in restitution to the IRS and serve three years of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Christopher Magnani and Michael Landman of the Tax Division, who prosecuted the case, and Paralegal Specialist Saundra Burgess of the Tax Division, who assisted at trial.
Nevada Real Estate Broker Sentenced to Prison for Tax FraudRead the Press Release
WASHINGTON – William Waller Jr., a Las Vegas real estate broker and the owner of Burbank Holdings or Platinum Properties, was sentenced today to 78 months in prison for tax evasion and willful failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division and United States Attorney Nicholas A. Trutanich for the District of Nevada.
“The vast majority of Americans work hard to file honest tax returns and pay their fair share of taxes every year,” said Principal Deputy Assistant Attorney General Zuckerman. “Those who willfully evade taxes with false claims that the tax laws do not apply to them will be prosecuted and risk imprisonment, like William Waller’s sentence today.”
“Paying your taxes is not a choice, hiding your income in shell companies is not an option, and lying about those practices will not be tolerated as demonstrated by today’s sentencing,” said Chief Don Fort, IRS Criminal Investigation.
According to court pleadings and evidence presented at trial, Waller sought to evade taxes by incorporating a shell entity, opening bank accounts in its name, and directing his income into those accounts rather than accounts in his own name. He also dealt extensively in cash and reduced his equity in his home, the only asset he held in his own name, thereby making it an unattractive asset for the IRS to seize.
Waller testified at trial that he believed that he was not required to file tax returns or pay taxes, but acknowledged that he was influenced by the teachings of several prominent tax defiers. These included one, who had been convicted three times of tax fraud, and another, who had been stripped of his CPA license. Waller also admitted to purchasing and watching tax defier courses, including one on how to beat criminal tax charges. Following the defendant’s testimony and the conclusion of the trial, the jury returned guilty verdicts on March 18, 2019.
In addition to the term of imprisonment, U.S. District Court Judge James C. Mahan also ordered Waller to pay $1,459,535.70 in restitution to the IRS and serve three years of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Christopher Magnani and Michael Landman of the Tax Division, who prosecuted the case, and Paralegal Specialist Saundra Burgess of the Tax Division, who assisted at trial.
Montgomery County Man Convicted of Illegally Possessing Fully Automatic Assault WeaponRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Sharif Khalid, 42, of Willow Grove, PA was convicted at trial of possession of a machine gun.
According to the evidence presented at trial, in March 2018 Khalid knowingly possessed a firearm that was a fully automatic weapon, specifically an AR-57, and 50 live rounds of ammunition for that model rifle. The defendant was also charged with possession of a non-registered firearm, in his case, a machine gun that had been altered to fire fully automatic. The investigation began when at ATF agent received a report from the owner of a gun shop and range in Philadelphia that a customer was firing a fully automatic weapon at their firing range. ATF agents arrived at the gun shop, confronted the defendant and performed a field test on the rifle, determining that the weapon was fully automatic. Agents seized the rifle and through their investigative work found that the defendant is not registered to possess a firearm.
“By owning and firing this illegal weapon, the defendant endangered everyone in his midst,” said U.S. Attorney McSwain. “Thanks to our dedicated partners at ATF and our Office’s trial team, the defendant will no longer freely wander the streets with a dangerous, illegal weapon and will be held accountable for his crime.”
“ATF’s top priority is combating violent crime; one of the ways we accomplish that mission is by keeping firearms out of the hands of violent offenders,” said Donald Robinson, Special Agent in Charge, ATF Philadelphia Field Division. “This conviction is a perfect example of the collaborative effort between ATF and our partners at the United States Attorney’s Office in targeting violent offenders and protecting our communities.”
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.
The defendant faces a maximum possible sentence of 20 years’ imprisonment, three years supervised release, a $500,000 fine and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
Missoula man sentenced to 12 years for child pornography crimesRead the Press Release
MISSOULA—A Missoula man who admitted to multiple child pornography crimes was sentenced today to 12 years in prison, 10 years of supervised release and ordered to pay $3,000 restitution, U.S. Attorney Kurt Alme said.
Mark Allen McNeely, Sr., 51, pleaded guilty in June to a dozen counts, including distribution of child pornography, transportation of child pornography and receipt of child pornography.
U.S. District Judge Donald W. Molloy presided.
In court records filed in the case, the prosecution said that on Nov. 20, 2018, a Missoula Police detective and member of the Internet Crimes Against Children Task Force served a search warrant on McNeely’s residence. An examination of a laptop seized in the search determined it had been used to search for, download and store images and videos of child pornography. The laptop also had been used to communicate with others in chatrooms on child pornography. The detective also obtained records from Skype and Facebook that were associated with accounts used by McNeely. Those records showed that McNeely distributed images of children engaged in sexually explicit conduct on multiple dates.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Missoula Police Department, Bozeman Police Department and ICAC Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Michigan Attorney Indicted for Tax FraudRead the Press Release
A grand jury in Detroit, Michigan, returned an indictment yesterday charging Carl L. Collins III, a Michigan attorney, with tax evasion, filing two false tax returns and seven counts of willfully failing to file individual and corporate tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew J. Schneider for the Eastern District of Michigan.
According to the indictment, Collins was a personal injury attorney with offices in Southfield, Michigan. Collins also allegedly owned two medical companies, MedCity Rehabilitation Services LLC and Alpha Living LLC, as well as a real estate company called First Third LLC. The indictment charges that Collins filed a tax return for 2012 with the Internal Revenue Service (IRS), which failed to report approximately $550,000 in income. Collins allegedly deposited most of this unreported income into an attorney trust account, which he failed to disclose to the Michigan State Bar Foundation and his tax return preparer. The indictment further alleges that Collins evaded personal income taxes for 2015 by depositing approximately $580,000 of income into his undisclosed attorney trust account and using much of the money to purchase real estate. The indictment also charges that, in 2017, Collins filed a false delinquent tax return for 2015.
The indictment further alleges that Collins willfully failed to timely file tax returns for several years for both himself and his corporations. Specifically, Collins failed to timely file his individual tax returns for 2013 through 2015, corporate income tax returns for Alpha Living LLC for 2013 through 2015, and corporate income tax returns for MedCity Rehabilitation Services LLC for 2013.
If convicted, Collins faces a maximum sentence of five years in prison for the tax evasion count, three years for each of the false return counts, and one year for each of the failure to file counts. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Schneider commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Kenneth Vert and Jeffrey McLellan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Miami-based Financial Advisor Pleads Guilty for Conspiring to Launder Money Relating to FCPA and Ecuadorian Bribery Law ViolationsRead the Press Release
A financial advisor based in Miami, Florida, pleaded guilty today to a money laundering conspiracy for his role in using the U.S. financial system to launder money to promote violations of the Foreign Corrupt Practices Act (FCPA) and Ecuadorian bribery law violations and to conceal and disguise the true nature of those illegal bribe payments. Specifically, this conspiracy related to a scheme to pay bribes to officials of Ecuador’s state-owned and state-controlled oil company, Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador).
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. office, Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., office and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.
Frank Roberto Chatburn Ripalda (Chatburn), 42, a dual U.S. and Ecuadorian citizen, pleaded guilty in federal district court in Miami before the Honorable Marcia G. Cooke to one count of conspiracy to commit money laundering, which carries a 20-year statutory maximum sentence. Chatburn is scheduled to be sentenced by Judge Cooke on Dec. 18.
According to his admissions at the plea hearing, Chatburn conspired with an oil services contractor to pay nearly $3 million in bribes to Ecuadorian government officials in an effort to obtain and retain contracts with PetroEcuador. As a financial advisor to the contractor, Chatburn agreed to make bribe payments for the benefit of several then-PetroEcuador officials through the use of shell companies and bank accounts in the United States, Panama, the Cayman Islands, Curacao and Switzerland. To conceal the bribe payments and to promote the scheme, Chatburn established Panamanian shell companies with Swiss bank accounts on behalf of two then-PetroEcuador officials.
Chatburn further admitted that he conspired with another Ecuadorian government official to conceal bribe payments intended for the official from Odebrecht S.A., the Brazilian construction conglomerate. Chatburn facilitated hiding these bribe payments by conducting the transactions through several shell companies and bank accounts in multiple jurisdictions, including in the United States. Odebrecht S.A. pleaded guilty on Dec. 21, 2016, in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the FCPA in connection with a broader scheme to pay nearly $800 million in bribes to public officials in twelve countries, including Angola, Argentina, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru and Venezuela.
To date, 10 individuals, including former Ecuadorian government officials, oil services contractors and financial advisors, have pleaded guilty to criminal charges in U.S. courts for their involvement in the PetroEcuador bribery and money laundering schemes.
This case was investigated by HSI and IRS-CI, jointly under the auspices of the Global Illicit Financial Team, and by the FBI’s International Corruption Squad in Miami. Southern District of Florida Assistant U.S. Attorneys Karen Rochlin, Nalina Sombuntham and Alison W. Lehr have provided substantial assistance with the prosecution of this case, along with Deputy Chief Brian Young, Assistant Chiefs David Fuhr and Lorinda Laryea, Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section, and Trial Attorneys Randall Warden and Mary Ann McCarthy of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS).
The U.S. Marshals Service and the Criminal Division’s Office of International Affairs have provided significant assistance by obtaining evidence in this case, as have public authorities in, among other countries, Ecuador, Panama and the Cayman Islands.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
Miami-Based Financial Advisor Pleads Guilty for Conspiring to Launder Money Relating to FCPA and Ecuadorian Bribery Law ViolationsRead the Press Release
A financial advisor based in Miami, Florida, pleaded guilty today to a money laundering conspiracy for his role in using the U.S. financial system to launder money to promote violations of the Foreign Corrupt Practices Act (FCPA) and Ecuadorian bribery law violations and to conceal and disguise the true nature of those illegal bribe payments. Specifically, this conspiracy related to a scheme to pay bribes to officials of Ecuador’s state-owned and state-controlled oil company, Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. office, Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., office, and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.
Frank Roberto Chatburn Ripalda (Chatburn), 42, a dual U.S. and Ecuadorian citizen, pleaded guilty in federal district court in Miami before the Honorable Marcia G. Cooke to one count of conspiracy to commit money laundering, which carries a 20-year statutory maximum sentence. Chatburn is scheduled to be sentenced by Judge Cooke on Dec. 18.
According to his admissions at the plea hearing, Chatburn conspired with an oil services contractor to pay nearly $3 million in bribes to Ecuadorian government officials in an effort to obtain and retain contracts with PetroEcuador. As a financial advisor to the contractor, Chatburn agreed to make bribe payments for the benefit of several then-PetroEcuador officials through the use of shell companies and bank accounts in the United States, Panama, the Cayman Islands, Curacao and Switzerland. To conceal the bribe payments and to promote the scheme, Chatburn established Panamanian shell companies with Swiss bank accounts on behalf of two then-PetroEcuador officials.
Chatburn further admitted that he conspired with another Ecuadorian government official to conceal bribe payments intended for the official from Odebrecht S.A., the Brazilian construction conglomerate. Chatburn facilitated hiding these bribe payments by conducting the transactions through several shell companies and bank accounts in multiple jurisdictions, including in the United States. Odebrecht S.A. pleaded guilty on Dec. 21, 2016, in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the FCPA in connection with a broader scheme to pay nearly $800 million in bribes to public officials in twelve countries, including Angola, Argentina, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru and Venezuela.
To date, 10 individuals, including former Ecuadorian government officials, oil services contractors and financial advisors, have pleaded guilty to criminal charges in U.S. courts for their involvement in the PetroEcuador bribery and money laundering schemes.
This case was investigated by HSI and IRS-CI, jointly under the auspices of the Global Illicit Financial Team, and by the FBI’s International Corruption Squad in Miami. Deputy Chief Brian Young, Assistant Chiefs David Fuhr and Lorinda Laryea, Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section, and Trial Attorneys Randall Warden and Mary Ann McCarthy of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case.
The U.S. Marshals Service and the Criminal Division’s Office of International Affairs have provided significant assistance by obtaining evidence in this case, as have public authorities in, among other countries, Ecuador, Panama and the Cayman Islands.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
Mexican National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that OSIEL PEREZ-CORREA, age 30, was charged on October 10, 2019 in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, OSIEL PEREZ-CORREA (“PEREZ”), reentered the United States after he was previously deported on September 14, 2019. If convicted, PEREZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U. S. Attorney Spiro Latsis is in charge of the prosecution.
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Member of Baltimore’s Violent “Murdaland Mafia Piru” Bloods Gang Sentenced to 30 Years in Federal Prison for Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Shakeen Davis, a/k/a “Creams,” age 25, of Baltimore, Maryland to 30 years in federal prison, followed by five years of supervised release, for racketeering and drug conspiracies related to his participation in the gang activities of the Murdaland Mafia Piru (MMP), a subset of the Bloods gang. Davis was also convicted of possession with intent to distribute crack cocaine; two counts of possession of a firearm by a felon; and possession of a firearm in furtherance of a drug trafficking crime. The evidence established that Davis attempted to murder two individuals on May 30, 2015, firing multiple rounds at his intended victims with an assault rifle in the middle of a busy intersection in broad daylight. The jury returned its guilty verdict on April 30, 2019.
“Armed drug traffickers are on notice that federal, state and local law enforcement are working together to target leaders and key members of violent gangs,” said U.S. Attorney Robert K. Hur. “We will not tolerate those who peddle death through drugs and gun violence in our neighborhoods. Shakeen Davis will now spend 30 years in federal prison. This sentence sends a strong message that gun crime can lead to federal time, where there is no parole—ever. Please put down the gun. You’ll save a life, maybe even your own.”
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
According to court documents and the evidence presented at the six-week trial, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates in Maryland and elsewhere. MMP was modeled after the Italian Mafia and was organized hierarchically, with “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP has controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, Woodlawn, and Walbrook Junction. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states. MMP’s members enriched themselves through drug trafficking and other criminal activities, and using violence and threats of violence to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
According to trial testimony, one of the founding principles of the gang was a rule against cooperation with law enforcement. Violations of this rule were punishable by death. MMP members enhanced their status within the gang by carrying out acts of violence against rivals. For instance, members could earn a lightning bolt tattoo for “killing for the Mob.” MMP members, including Davis, used social media websites to assert the gang’s claim to particular drug territories, intimidate rival gangs and drug traffickers, enhance MMP’s status, and enhance members’ status within the gang. Davis posted photographs and comments to social media websites in which he boasted about his membership in MMP and flaunted firearms. For example, on March 9, 2016, Davis posted a comment that said, “Go Against the MOBB GET MURDERED.” The evidence proved that members and associates of MMP participated in the gang’s affairs through a pattern of racketeering activities, including murder, extortion, witness tampering and retaliation, and drug distribution. According to witness testimony, Davis sold both cocaine and heroin and had guns, including an AR-15.
According to trial evidence, on May 30, 2015, Davis attempted to murder two victims in furtherance of MMP. Davis fired at least nine rounds at the two individuals with an assault rifle in broad daylight as the victims sat in their car at a busy intersection. One individual suffered graze wounds to his back, and both victims suffered cuts from broken glass. A witness testified that the shooting was in retaliation for the victims pulling a gun on another MMP member earlier that day.
On April 26, 2016, Davis was arrested by members of the Baltimore County Police Department. The officers recovered a loaded, stolen, police-issue handgun, a loaded AR-15 rifle (with a shoulder strap), and several cell phones from the trunk of Davis’s vehicle. They also recovered a balaclava mask, a small, digital scale, and a bottle of the cutting agent Inositol. Davis is prohibited from possessing firearms or ammunition as a result of a previous felony firearm conviction.
One of the cell phones seized from Davis on April 26, 2016 contained hundreds of text messages in which Davis arranged drug transactions with customers. These included text messages in which customers asked for specific quantities of “boy” and “girl”—street terms for heroin and cocaine, respectively, as well as texts in which Davis advertised the potency of the drugs he had for sale—e.g., “Got fire,” or “I got a bomb.” Importantly, on April 9, 2016, a drug customer who had recently purchased drugs from Davis sent him a text message indicating that he had overdosed and wound up in the hospital. The customer said: “Made it through detox, ended up in the hospital but I’m better now, I’ll send people your way if they are looking.” The cell phone also contained text messages in which Davis indicated that he was “beefing with” certain individuals and was “hunting” for them in order to kill them.
On August 5, 2016, Davis received a message from a co-defendant using coded language to ask Davis to get three guns. On the morning of August 10, 2016, that co-defendant and others abducted, bound, robbed, and murdered Ricardo Johnson, a/k/a “Uncle Rick,” then attempted to set his body on fire. Johnson was found hog-tied, blindfolded, and with over 20 bullet wounds, in the back of a stolen van in at 6:25 a.m. on August 10. The government presented evidence at trial that Davis was involved in Johnson’s murder, including witness testimony that was present when the co-defendant discussed kidnapping and robbing “Uncle Rick,” whom they believed had a lot of drugs. Davis also spoke with the co-defendant by phone at 3:07 a.m. on August 10—roughly half an hour after Johnson had been abducted, and had 12 phone calls with the co-defendant on the day before the murder.
On April 29, 2019, the final day of trial before the case went to the jury for deliberation, Davis was caught trying to smuggle razor blades into the federal courtroom. A Deputy U.S. Marshal conducted a routine search of Davis’s person before he was brought into the courtroom and recovered two razor blades, approximately 3/4-inch in length, located inside each of Davis’s shoes.
Twenty-five defendants have been convicted in the case, including Davis, MMP leader Dante Bailey, Randy Banks, Jamal Lockley, and Corloyd Anderson, who were convicted on April 30, 2019 after a six-week trial. Twenty defendants, including Davis, have been sentenced, with most receiving between 10 and 30 years in federal prison. Judge Blake has scheduled sentencing for Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 40, of Windsor Mill, Maryland on November 8, 2019; for Jamal Lockley, a/k/a “T-Roy” and “Droid,” age 40, of Baltimore, on November 4, 2019; and for Corloyd Anderson, a/k/a “Bo,” age 36, of Owings Mills, Maryland on November 26, 2019. They all face a maximum of life in prison. The final defendant is awaiting trial.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 its 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.
United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina A. Hoffman and Lauren E. Perry, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Melvindale Man Sentenced for Defrauding the Michigan Unemployment Insurance AgencyRead the Press Release
A Melvindale, Michigan resident was sentenced yesterday to 70 months in federal prison after having pleaded guilty to wire fraud and aggravated identity theft in connection with unemployment compensation scheme, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Tim Kolar, State Administrator – Investigations and Collections Unemployment Insurance
LeRoy Constantine, 33, was sentenced by U.S. District Judge Mark A. Goldsmith who also ordered Constantine to pay full restitution in the amount of $188,946 and 3 years of supervised release.
According to information provided to the court at the June 4, guilty plea, from April 2016 through May 2016, Constantine obtained personal identifying information of unsuspecting victims, including their name, date of birth, and social security numbers and submitted false claims to the Michigan Unemployment Insurance Agency for unemployment insurance benefits. Once Constantine falsely applied for the benefits, he would receive a prepaid debit card charged with unemployment insurance benefit funds and use them for his personal benefit. Constantine submitted 63 false claims which resulted in a loss to the Michigan Unemployment Insurance Agency of $188,946.
“Unemployment insurance is designed to provide benefits for employees who need money while they are out of work,” Schneider said. “People who abuse the system will pay the consequences.”
“Leroy Constantine stole the identities of Michigan residents, causing harm to those victims, taxpayers, and business owners, stated Administrator Kolar. “The Unemployment Insurance Agency, U.S. Department of Labor Office of Inspector General, and the U.S. Attorney’s Office remain committed to investigating, charging and convicting these criminals. Justice will continue to prevail.”
The investigation of this case was conducted by the Department of Labor, Office of Inspector General with the assistance of the State of Michigan Unemployment Insurance Agency Fraud Division. The case was prosecuted by Assistant United States Attorney Jihan Williams.
Manchester Man Sentenced to 96 Months for Drug Trafficking Conspiracy ChargeRead the Press Release
CONCORD - Daniel Irving, 28, of Manchester, was sentenced in federal court to 96 months in prison for participating in a conspiracy to distribute methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on September 19, 2018, law enforcement officers encountered Irving and another individual in a vehicle near a convenience store in Concord, New Hampshire. Inside the vehicle, officers found more than 70 grams of methamphetamine and two firearms. In addition, drug paraphernalia, including a glass mirror, digital scale, a ledger, syringes and plastic baggies were confiscated.
Irving previously pleaded guilty on July 1, 2019.
“Armed drug dealers are a menace to public safety,” said U.S. Attorney Murray. “As Mr. Irving has learned, those who possess firearms while trafficking in illegal drugs should expect to serve substantial prison terms. In order to protect the public, we will continue to seek long prison sentences for drug dealers who arm themselves with firearms.”
"The high-risk road Daniel Irving chose to follow had no shortage of warning signs for what lie ahead: Addiction and petty crimes escalated to his being caught in a car with two firearms and peddling methamphetamine - a dangerous drug he claims to have been a victim of himself," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "Today's sentencing is that rare second chance for Mr. Irving to find a new direction. Because rest assured, we and our law enforcement partners will hold the course in our pursuit of illegal drug traffickers inflicting pain and suffering on our communities."
This matter was investigated by the Federal Bureau of Investigation and the Concord Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Man Sentenced for Sexually Abusing a Child and Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg man was sentenced today to six years in prison for travelling to North Carolina to sexually abuse a child, and receiving child pornography from a child in Nebraska.
According to court documents, Derek Thomas, 26, met Jane Doe #1 online and began a relationship during the summer of 2018 when she was 14 years old. During the summer, both Jane Doe #1 and Thomas sent nude images of themselves to one another over social media platforms. Eventually, Thomas travelled to North Carolina to engage in sexual activities with the child. Also, during the summer of 2018, he met Jane Doe #2 on-line. They sent nude images of themselves to one another. Thomas knew the age of each victim prior to engaging in criminal activity with the children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Lisa R. McKeel prosecuted 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. 4:19-cr-12.
Man Convicted by South Florida Jury of Laundering More than $3 Million in Proceeds from International Cyber ScamsRead the Press Release
FORT LAUDERDALE - Elvin I. Lewis, Jr., of Hollywood, Florida, was convicted today of conspiracy to commit money laundering and money laundering charges, following a five-day jury trial. The charges stemmed from his decision to launder more than $3 million dollars in fraud proceeds from business email compromise (“BEC”) cyber scams, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS) Miami Field Office, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.
According to evidence at trial, from approximately November 2017 through August 2018, in Broward County, Florida, and elsewhere, Lewis knowingly and willfully agreed to participate in, and did participate in, a conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h) (Case No. 19cr60034). The purpose of the scheme was for Lewis and his co-conspirators to unlawfully enrich themselves, to hide illegal proceeds, and to further wire fraud schemes by, among other things, withdrawing, depositing, and transferring fraudulently obtained funds between banks, and individuals. As trial testimony established, Lewis also recruited others into the money laundering network, including a co-conspirator based in Detroit, whom he originally solicited on Craigslist.
Lewis’s co-conspirators – believed to be located abroad – contacted businesses (the “business victims”) located throughout the United States, using email, social media, and other Internet-based methods of communication, and falsely and fraudulently posed as vendors seeking payment for services rendered, in order to facilitate the BEC scams. The co-conspirators, posing as vendors, used spoofed emails and email account takeover techniques to send emails falsely and fraudulently directing the business victims to make payments to various bank accounts, through wire transfers, in purported satisfaction of invoices due to the actual vendors.
Lewis’s role in the laundering conspiracy was to wire fraud proceeds from the BEC scams into other corporate accounts under his and his co-conspirators’ control, in return for a five to ten percent cut of the funds. In particular, as trial evidence established, Lewis created more than eight accounts at different banks for his purported real estate investment business, “A NuFinancial Consortium LLC.” Through these accounts, Lewis laundered more than $3 million in BEC proceeds in less than a year, approximately $2.3 million of which was laundered in less than two weeks. Lewis variously converted the funds to cashier’s checks and cash, and wired money between accounts.
The business victims of the cyber scams included: a major Canadian city; a trucking company in Tennessee; a power company in Ohio; an axle company in Indiana and Detroit; an importing business in Chicago; and others.
In total, Lewis made more than $160,000 in cash during the course of the fraud and money laundering schemes. He used the funds to acquire a Porsche, which law enforcement seized as part of this criminal case.
Lewis is scheduled to be sentenced on Jan. 10, 2020 at 3:30 p.m. before U.S. District Judge Roy K. Altman. He faces a statutory maximum sentence of twenty years in prison as to each of the eleven counts of conviction. He also faces up to three years of supervised release, restitution and monetary penalties.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USSS and FBI in this matter. She also thanked IRS-CI’s Orlando Field Office for the trial assistance provided by a money laundering expert. This case is being prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Michele S. Vigilance. The asset forfeiture component of the case is being handled by Assistant U.S. Attorneys Alison W. Lehr and Daren Grove.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Convicted by South Florida Jury of Laundering More than $3 Million in Proceeds from International Cyber ScamsRead the Press Release
FORT LAUDERDALE - Elvin I. Lewis, Jr., of Hollywood, Florida, was convicted today of conspiracy to commit money laundering and money laundering charges, following a five-day jury trial. The charges stemmed from his decision to launder more than $3 million dollars in fraud proceeds from business email compromise (“BEC”) cyber scams, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS) Miami Field Office, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.
According to evidence at trial, from approximately November 2017 through August 2018, in Broward County, Florida, and elsewhere, Lewis knowingly and willfully agreed to participate in, and did participate in, a conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h) (Case No. 19cr60034). The purpose of the scheme was for Lewis and his co-conspirators to unlawfully enrich themselves, to hide illegal proceeds, and to further wire fraud schemes by, among other things, withdrawing, depositing, and transferring fraudulently obtained funds between banks, and individuals. As trial testimony established, Lewis also recruited others into the money laundering network, including a co-conspirator based in Detroit, whom he originally solicited on Craigslist.
Lewis’s co-conspirators – believed to be located abroad – contacted businesses (the “business victims”) located throughout the United States, using email, social media, and other Internet-based methods of communication, and falsely and fraudulently posed as vendors seeking payment for services rendered, in order to facilitate the BEC scams. The co-conspirators, posing as vendors, used spoofed emails and email account takeover techniques to send emails falsely and fraudulently directing the business victims to make payments to various bank accounts, through wire transfers, in purported satisfaction of invoices due to the actual vendors.
Lewis’s role in the laundering conspiracy was to wire fraud proceeds from the BEC scams into other corporate accounts under his and his co-conspirators’ control, in return for a five to ten percent cut of the funds. In particular, as trial evidence established, Lewis created more than eight accounts at different banks for his purported real estate investment business, “A NuFinancial Consortium LLC.” Through these accounts, Lewis laundered more than $3 million in BEC proceeds in less than a year, approximately $2.3 million of which was laundered in less than two weeks. Lewis variously converted the funds to cashier’s checks and cash, and wired money between accounts.
The business victims of the cyber scams included: a major Canadian city; a trucking company in Tennessee; a power company in Ohio; an axle company in Indiana and Detroit; an importing business in Chicago; and others.
In total, Lewis made more than $160,000 in cash during the course of the fraud and money laundering schemes. He used the funds to acquire a Porsche, which law enforcement seized as part of this criminal case.
Lewis is scheduled to be sentenced on Jan. 10, 2020 at 3:30 p.m. before U.S. District Judge Roy K. Altman. He faces a statutory maximum sentence of twenty years in prison as to each of the eleven counts of conviction. He also faces up to three years of supervised release, restitution and monetary penalties.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USSS and FBI in this matter. She also thanked IRS-CI’s Orlando Field Office for the trial assistance provided by a money laundering expert. This case is being prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Michele S. Vigilance. The asset forfeiture component of the case is being handled by Assistant U.S. Attorneys Alison W. Lehr and Daren Grove.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.