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11 October 2019
Federal Agent Pleads Guilty to Embezzlement and Conversion of Government PropertyRead the Press Release
CONCORD - Shawn Meehan, 47, of Scarborough, Maine, pleaded guilty in federal court in Portland, Maine, on Tuesday to embezzlement and conversion of government property, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from about April 2015 to about October 2018, when Meehan was employed as the Resident Agent in Charge of the Homeland Security Investigations office in Portland, Maine, he sold government property on eBay for his personal profit.
According to the plea agreement filed in the case, Meehan acknowledged that the loss to the government was between $6,500 and $15,000 and that he abused a position of public trust in a way that significantly facilitated the commission and concealment of the offense. A sentencing date has not yet been set by the Court.
This matter was investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement, Office of Professional Responsibility and is being prosecuted by Assistant U.S. Attorney Arnold Huftalen of the District of New Hampshire, appointed as a Special Attorney to the U.S. Attorney General to handle this case in the District of Maine.
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Fayetteville Man Sentenced to 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jerry Lawson, age 35, was sentenced yesterday to 180 months in federal prison followed by 4 years of supervised release for one count of Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in 2018, detectives received information that Lawson was distributing methamphetamine in the Fayetteville area. Detectives set up two controlled purchases of methamphetamine from Lawson. Upon the execution of search warrants, detectives located a stolen pistol and 324 grams of actual methamphetamine. Lawson was subsequently found to be in possession of a distribution amount of heroin.
Lawson was indicted by a federal grand jury in February 2019, and he entered a guilty plea in July 2019.
This case was investigated by the 4th Judicial Drug Task Force and the DEA. Assistant United States Attorney David A. Harris prosecuted the case for the United States.
Email Address Created for Questions Pertaining to Victims Affected by the Arrest of Paul PetersenRead the Press Release
Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that a dedicated email address has been created to allow anyone affected by Paul Petersen’s arrest to email the United States Attorney’s office at [email protected]. A direct link is available on our website at www.justice.gov/wdar. Mr. Kees encourages anyone who is involved in ongoing adoption proceedings with Paul Petersen to send an email to this address with any questions or concerns about how Petersen’s arrest may affect them.
The identity of involved parties and information received will be strictly confidential.
Information about Paul Petersen’s arrest can be found at https://www.justice.gov/usao-wdar/pr/arizona-adoption-attorney-arrested-adoption-fraud-and-alien-smuggling.
District Man Sentenced to 80 Months in Prison for 2017 Shooting in Northeast WashingtonRead the Press Release
WASHINGTON – Derrick Watson, 42, of Washington, D.C., was sentenced today to 80 months in prison for his role in a three person shooting that took place in Northeast, Washington in July 2017, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Watson was found guilty by a jury of five counts assault with a dangerous weapon, assault with significant bodily injury while armed, six counts of possession of a firearm during a crime of violence, felon in possession by a jury on July 24, 2019 following a one-week trial in the Superior Court of the District of Columbia before the Honorable Craig Iscoe.
According to the government’s evidence, on July 10, 2017, at approximately 8:54pm, Watson engaged in a gun battle with Saheed Salu and Kevin Williams in a small courtyard behind 1341 I Street NE, Washington, DC. During the shooting at least 15 innocent adults and children were in the immediate area and a one-year-old was struck in the crossfire requiring medical attention. Earlier in the evening, Watson was involved in a verbal altercation with Saheed Salu over gambling. Saheed Salu left the area and returned with Kevin Williams both armed. Once Watson noticed Kevin Williams was armed, he walked to his car, retrieved his own firearm, and returned closer to Salu and Williams. Soon after, at least 13 gunshots were fired by the three shooters. Saheed Salu and Kevin Williams pleaded guilty and were sentenced in January 2019.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Litigation Technology Specialist Leif Hickling, Investigative Analyst Zachary McMenamin, Victim/Witness Program Specialist Karina Hernandez, former Victim-Witness Advocate Diana Lim, Supervisory Victim/Witness Services Coordinator Katina Adams-Washington, Supervisory Paralegal Specialist Sabrina Turner, Paralegals Tiffany Fogle and Antoinette Sakamsa, former Criminal Investigator John Marsh, intern Elizabeth Brown, former Assistant U.S. Attorneys Jennifer Kerkhoff and Louis Manzo.
Finally, they acknowledged the efforts of Assistant U.S. Attorney Rachel Bohlen who prosecuted the case and Monica Trigoso who investigated and prosecuted the case.
District Man Sentenced to 10 Years in Prison for Possessing a Loaded Firearm While Trafficking NarcoticsRead the Press Release
WASHINGTON – Thomas Washington, 66, of Northeast, D.C., was sentenced today to 10 years in prison for possessing a loaded firearm in furtherance of his drug trafficking, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Washington pled guilty in July 2019 before the Honorable Randolph D. Moss in the U.S. District Court for the District of Columbia to one count of possession of a firearm in furtherance of a drug trafficking offense. Judge Moss sentenced Washington to 10 years in prison to be followed by three years of supervised release.
According to the government’s evidence, on July 8, 2018, members of MPD’s Narcotics and Special Investigations Division observed Washington conducting hand-to-hand drug transactions. After arresting Washington, who had a stun gun and $3,067, MPD officers executed a search warrant at Washington’s residence that was located in the 4900 block of Nash Street, Northeast. During the execution of the search warrant, MPD officers recovered a High-Point model CF380 semi-automatic handgun in the dresser of the bedroom. The firearm was loaded with nine rounds of ammunition. Officers also recovered 6.5 grams of crack, a plate with residue, empty ziploc baggies, a digital scale, and $13,253.00.
When Washington was arrested for trafficking narcotics and possessing a firearm in the present case, he was on supervision with the U.S. Parole Commission following a 2012 D.C. Superior Court felony drug trafficking conviction. Washington now faces formal revocation of his supervised release and an additional sentence, separate from the above-referenced sentence, from the U.S. Parole Commission. Washington also had two additional prior drug trafficking convictions and a prior involuntary manslaughter conviction.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Candace Battle, Legal Assistant Peter Gaboton, and Assistant U.S. Attorney Christopher Macchiaroli of the Violent Crime and Narcotics Section, who prosecuted the Defendant.
Detroit man admits to his involvement in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terry Thomas, of Detroit, Michigan, has admitted to multiple charges involving an oxycodone distribution operation that spanned two states and four North Central West Virginia counties, U.S. Attorney Bill Powell announced.
Thomas, also known as “Top,” age 47, pled guilty to one count of “ Conspiracy to Distribute Oxycodone,” one count of “Money Laundering Conspiracy,” 19 counts of “Distribution of Oxycodone,” 11 counts of “Aiding and Abetting Distribution of Oxycodone,” and one count of “Distribution of Cocaine Base.” Thomas, the ringleader of the operation, worked with his co-conspirators to distribute more than 500,000 oxycodone pills in Monongalia County and elsewhere for four years, from the summer of 2013 to June 2017.
“Our prosecution team and law enforcement partners have done incredible work on this investigation. Detroit and other locations outside of West Virginia have long been suppliers of pain and suffering , through their illegal drug operations. We will continue to have zero tolerance for these operations and aggressively dismantle and destroy them. Dozens of people are now paying for their activities with long prison sentences. Job well done,” said Powell.
Thomas faces up to 20 years incarceration and a fine of up to $1,000,000 for each of the drug charges and faces up to 20 years incarceration and a $500,000 fine for the money laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
Of the 34 indicted in this case, 33 have entered guilty pleas. Twenty-five defendants have been sentenced to a combined 580 months incarceration.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John presided.
Detroit Man Sentenced to 27 months for Trafficking FentanylRead the Press Release
LEXINGTON, Ky. – Anthony McIntosh, 28, of Detroit, was sentenced Friday to 27 months in federal prison, by United States District Judge Danny C. Reeves, for possession with intent to distribute fentanyl.
In June 2018, Lexington Police officers apprehended McIntosh and located 21 grams of fentanyl in his vehicle. In his plea agreement, McIntosh admitted that he intended to sell the fentanyl to others.
Under federal law, McIntosh must serve 85 percent of his prison sentence. After his sentence, he will be under the supervision of the U.S. Probation Office for three years following his release and will have to pay a $3,600 fine.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Dan Dodds, Special Agent in Charge of the DEA; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney David Kiebler.
This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.
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Defendant given extra prison time for failing to self-surrender for first sentenceRead the Press Release
SACRAMENTO, Calif. — Damanpreet Singh, 34, of Los Angeles, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to nine additional months in prison for failing to self-surrender to serve his prison sentence, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Sept. 14, 2018, Singh was sentenced to two years in prison for conspiring to commit bribery, identity fraud and unauthorized access of a computer. He was ordered to self-surrender to begin serving his prison sentence on Jan. 4, 2019. Rather than turn himself in, however, Singh purposefully took steps to remain out of custody. He stopped answering his phones and drove a rental car to avoid detection.
When he was eventually arrested at the Burbank Airport on March 13, 2019, Singh lied to officers about who he was in order to remain out of custody.
This case was a product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne L. Rust prosecuted the case.
Court Sentences Four Drug Smugglers for Attempting to Smuggle 182 Kilograms of Cocaine into United States TerritoryRead the Press Release
On October 7, 2019 United States District Court Judge Jeffrey U. Beaverstock sentenced four drug smugglers: Angel Castro Garcia; Pedro Dino Cedado Nunez; Manely Enriquez; and Mike Castro Martinez, all Dominican Republic nationals, for attempting to smuggle 182 kilograms of cocaine from the Dominican Republic to Puerto Rico. The men were previously convicted at a jury trial concluding on June 28, 2019. Judge Beaverstock sentenced Angel Castro Garcia, Manely Enriquez and Mike Castro Martinez to 188 months imprisonment. Pedro Dino Cedado Nunez was sentenced to 132 months confinement. The Court recognized that Nunez was honest when confronted by law enforcement about his illegal activities.
The case arose when, on December 24, 2018, a United States Customs and Border Protection aircraft spotted a suspected drug smuggling vessel operating in international waters northeast of the Dominican Republic. The vessel was travelling on a known drug smuggling route to Puerto Rico. The aircraft notified the United States Coast Guard (USCG) and the USCG Cutter “Richard Dixon” proceeded toward the drug smuggling vessel. The USCG Cutter then launched an Over the Horizon (OTH) Zodiac type vessel from the Cutter with a four man crew.
The OTH USCG vessel interdicted the 25-foot Yola style drug smuggling vessel operating in international waters northeast of the Dominican Republic. The drug smugglers attempted to jettison most of the cocaine when they spotted the USCG OTH vessel. The four man Coast Guard crew recovered approximately 182 kilograms of cocaine in the water and on board the drug smuggling vessel. The cocaine had a retail value of nearly $30 million dollars in the United States.
Title 46 United States Code, § 70501 states: Congress finds and declares that (1) trafficking in controlled substances aboard vessels is a serious international problem, is universally condemned, and presents a specific threat to the security and societal well-being of the United States and (2) operating or embarking in a submersible vessel or semi-submersible vessel without nationality and on an international voyage is a serious international problem, facilitates transnational crime, including drug trafficking, and terrorism, and presents a specific threat to the safety of maritime navigation and the security of the United States. Title 46 further provides that such offenses may be prosecuted in any United States federal district court.The case was prosecuted by George F. May, Deputy Criminal Chief and Luis F. Peral, Lead Organized Crime Drug Enforcement Task Force (OCDETF) Attorney. Appellate Chief Scott Gray also provided invaluable assistance on the case. The case was investigated by the United States Coast Guard and the Department of Homeland Security, Homeland Security Investigations.
Correctional Officer Pleads Guilty to Federal Racketeering Charge Related to Maryland Correctional Institute JessupRead the Press Release
Greenbelt, Maryland – Correctional Officer Janel Griffin, age 41, of Baltimore, pleaded guilty today to a federal racketeering charge for participating in a scheme to smuggle contraband into the Maryland Correctional Institute Jessup (MCIJ), including narcotics, unauthorized flash drives, tobacco, and cell phones into the prison. Inmate Corey Alston, a/k/a “C,” age 29, pleaded guilty on September 18, 2019, to the same charge.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
“This case demonstrates that we will not tolerate employees in positions of trust violating their oaths. Federal, state, and local officials will continue to work together to root out corrupt employees and others who undermine the administration of justice at our prisons,” said U.S. Attorney Robert K. Hur.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
According to her plea agreement, Griffin smuggled contraband into MCIJ for at least inmate Corey Alston, including narcotics and tobacco. At Alston’s direction, Griffin met with co-conspirator facilitators, including Tyirisha Johnson, to receive contraband as well as bribe payments. Recorded jail calls between Alston and others confirm that between April 16 and August 14, 2017, Griffin met with Johnson or another facilitator on at least six occasions to obtain contraband and at least $2,800 in bribe payments. Griffin smuggled the contraband, including Suboxone and Percocet, into MCIJ.
Inmate Corey Alston admitted that he was a leader in the racketeering conspiracy. As detailed in the plea agreement, Alston conspired with four outside facilitators, including Johnson, who obtained and packaged contraband, met with the correction officers and employees to provide contraband and bribe payments, and managed the proceeds of illegal contraband sales for Alston. According to his plea agreement Griffin and another MCIJ employee brought the contraband into the prison for Alston, in exchange for bribe payments, and Alston conspired with another inmate to sell the contraband to other inmates.
Alston was overheard by law enforcement on a series of recorded calls arranging for contraband to be smuggled into MCIJ and arranging payment for the contraband and for bribes.
Griffin and Alston each face a maximum sentence of 20 years in prison. U.S. District Judge Paula Xinis has scheduled sentencing for Griffin on February 6, 2020, at 1:00 p.m. Tyirisha Johnson, age 23, of Baltimore, pleaded guilty to her role in the conspiracy on July 23, 2019. Johnson and Alston are also expected to be sentenced in February 2020.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 80 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Robert K. Hur commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
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Convicted Felon Sentenced to Federal Prison for Possession of a Gun and CyberstalkingRead the Press Release
A Sioux City man with a criminal history that included a domestic violence conviction, and a felony conviction was sentenced October 7, 2019 to more 13 years in federal prison.
Freddy Bernal, age 33, from Sioux City, Iowa, received the prison term after a March 23, 2019, jury verdict finding him guilty of one count of possessing a firearm and ammunition as a prohibited person, and one count of cyberstalking
Evidence at trial showed that on or about December 5, 2017, police were dispatched to the victim’s home where they found a gun that defendant, nicknamed “Trigger” for his habit of carrying a gun, had hidden at the home, and where officers learned of the unwelcome course of conduct defendant had visited upon the victim for a number of years.
Defendant’s pattern of behavior toward the victim included a string of threating text messages, frequent voice calls stating he was watching the victim and was going to kill her, and indirect calls by people calling on defendant’s behalf, demanding the victim call defendant. Finally, an incident where defendant held the victim’s baby out the window of a moving car to threaten and harass her.
The jury found, as a result of defendant’s course of conduct, the victim was placed in fear of death or serious injury to herself, and defendant caused substantial emotional distress to the victim.
Bernal had previously been convicted of multiple felony offenses including convictions for Willful Injury Causing Serious Injury; Criminal Gang Participation; Felony Theft; and Domestic Abuse Assault.
Bernal was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Bernal was sentenced to 156 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“No one should be subjected to the kind of threatening and dangerous conduct that Freddy Bernal displayed in this case,” said U.S. Attorney Deegan. “I want to commend Assistant U.S. Attorneys Ford Fairchild and Margaret Groban and Senior Trial Attorney Mona Sedky for their outstanding work in bringing Bernal to justice.”
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Bernal is being held in the United States Marshal’s custody until he can be transported to a federal prison. There is no parole in the federal system
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild with the assistance of Assistant United States Attorney Margaret S. Groban, National Domestic Violence Coordinator of the USDOJ’s Office of Legal Programs and Senior Trial Attorney Mona Sedky, USDOJ’s Computer Crime and Intellectual Property Section.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4013.
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Convicted Felon Receives 55 Month Sentence for Illegal Possession of a FirearmRead the Press Release
Memphis, TN – Christopher Holmes, 31, has been sentenced to 55 months for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on February 6, 2018, around noon, Memphis police saw a silver Infiniti I30 west bound on Chelsea Avenue with very dark tinted windows that appeared to be beyond the legal limit. As officers executed a traffic stop, Holmes exited the vehicle and attempted to run from officers. He was apprehended a short distance later and struggled with officers while being handcuffed. Law enforcement located on his person a prescription bottle prescribed for someone else containing 43 alprazolam pills.
While searching the vehicle, law enforcement located a loaded Browning 9mm pistol in the front driver’s seat. Holmes has a prior felony conviction for aggravated assault, and a misdemeanor conviction for domestic violence.
On October 10, 2019, U.S. District Court Judge John T. Fowlkes Jr., sentenced Holmes to 55 months in federal prison followed by 2 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to the community, and in this case, Holmes was a violent offender who continued to possess a firearm despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more gun-toter that will be removed from our streets."
The Memphis Police Department investigated this case.
Special Assistant U.S. Attorney Sam Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Chicago Man Charged with Conducting Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A Chicago man has been charged in federal court with conducting an illegal sports gambling business and concealing the income in a bankruptcy proceeding.
MICHAEL FRONTIER, also known as “Ira Goldberg,” “Brian Seagal,” and “Matthew Sullivan,” provided bettors with gambling accounts at an online sportsbook based in Costa Rica, according to a 14-count indictment returned in U.S. District Court in Chicago. Frontier paid a service fee to the sportsbook for use of its platform, and then personally collected or paid cash to the bettors depending on the outcomes of their bets, the indictment states.
The charges allege that Frontier concealed his gambling income when he fraudulently obtained an order from the U.S. Bankruptcy Court discharging his debts, including a $1.5 million civil judgment against him for negligence in a motorcycle accident. Frontier used the fraudulently-obtained bankruptcy order as leverage to ultimately settle the negligence case for only $4,500, the indictment states.
The indictment was returned Thursday. It charges Frontier, 35, of Chicago, with five counts of money laundering, five counts of making a false statement in a bankruptcy case, two counts of bankruptcy fraud, one count of conducting an illegal gambling business, and one count of making a false declaration before the U.S. Bankruptcy Court. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The United States Trustee Program provided valuable assistance. The government is represented by Assistant U.S. Attorneys Devlin N. Su and Erika Csicsila.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of money laundering carries a maximum sentence of 20 years in prison, while the other counts in the indictment are each punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Cameroon Man Charged with Bank Fraud and Wire FraudRead the Press Release
URBANA, Ill. – A citizen of Cameroon, Lovette Namatinga, was arrested on Oct. 7 at Washington Dulles International Airport by FDIC Office of Inspector General agents. Namatinga, who resides in Owings Mills, Maryland, was indicted by a Grand Jury on Oct. 1 on charges he defrauded a Kankakee County bank. He will appear for arraignment in Urbana, Illinois once he is transported to the Central District of Illinois by the U.S. Marshals Service.
The indictment alleges that from about Feb. 26, 2019 and continuing until about April 8, 2019, Namatinga devised a scheme to defraud Municipal Trust and Savings Bank (“MTSB”), a financial institution located in Kankakee County, Illinois, in which MTSB was fraudulently induced by electronic mails to mail four checks in large dollar amounts made payable to Keiko San Products (“Keiko”). The messages in the electronic mails falsely represented that the secretary of one of MTSB’s customers requested that the checks be mailed to Keiko, when in reality, the loan customer did not make this request.
Namatinga is the registered agent for Keiko, and the four checks were mailed to his home address. Once the checks were deposited into Keiko bank accounts, Namatinga transferred money from those accounts to his personal account or withdrew cash from those accounts. The loss to MTSB was approximately $141,000.
If convicted of bank fraud, each count carries a penalty of up to 30 years in prison and a fine of up to $1,000,000. If convicted of the offense of wire fraud, each count carries a penalty of up to 20 years in prison and a maximum fine of $250,000.
The charges are the result of an investigation by the FDIC Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Meredith Reiter.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
California Entrepreneur Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California man became the eighth parent to be sentenced today in connection with the college admissions case.
Peter Jan Sartorio, 53, of Menlo Park, Calif., was sentenced by U.S. District Court Judge Indira Talwani to one year of probation, ordered to complete 250 hours of community service and to pay a fine of $9,500. In May 2019, Sartorio pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of one month in prison, one year of supervised release and a fine of $9,500.
Beginning in the spring of 2017, Sartorio conspired with William “Rick” Singer and others to have his daughter’s ACT exam corrected, thereby fraudulently inflating the score. As part of the scheme, Sartorio took steps to secure extended time for his daughter to take the ACT, which allowed her to take the exam at a test center in West Hollywood that Singer “controlled” through the center’s corrupt administrator, Igor Dvorskiy. After Sartorio’s daughter completed the exam on June 10, 2017, without using the extra time she had been allotted, co-conspirator Mark Riddell corrected her answers. As a result of the cheating scheme, Sartorio’s daughter received a score of 27 out of 36 on the exam, which placed her in the 86th percentile. Sartorio paid Singer $15,000 in cash, structuring the cash withdrawals in three smaller increments over several days to avoid bank reporting requirements.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
California Businessman Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Beverly Hills, California, businessman was sentenced yesterday to 21 months in prison for filing false tax returns, which failed to report his offshore accounts in Germany and Israel and the income earned on those accounts, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division and U.S. Attorney Nicola T. Hanna for the Central District of California.
“Today’s prison sentence reinforces the message that the Tax Division alongside its strong partners in U.S. Attorneys’ Offices and the IRS is committed to prosecuting U.S. taxpayers, who willfully hide offshore accounts, and that the penalty for such criminal conduct is not just a financial penalty, but prison,” said Principal Deputy Assistant Attorney General Zuckerman.
According to court documents, Teymour Khoubian filed false tax returns for tax years 2009 and 2010, which failed to report foreign financial accounts in Germany and Israel and failed to report income earned on those accounts. Between 2005 and 2012, Khoubian jointly owned multiple accounts at Bank Leumi in Israel with his mother that held between $15 million and $20 million. Additionally, since at least 2005, Khoubian also owned a foreign account at Commerzbank AG in Germany. Despite his ownership interest in these accounts and a legal requirement to declare all offshore accounts containing $10,000 or more, Khoubian prepared false tax returns for tax years 2005 through 2011 that did not fully disclose his foreign accounts, nor report all the interest income earned on those accounts. Khoubian’s Bank Leumi accounts generated interest income in excess of $4 million between 2005 and 2010, none of which was reported to the Internal Revenue Service (IRS). The total tax loss associated with the Bank Leumi accounts is approximately $1.2 million.
Since at least 2009, Khoubian was aware of the IRS’s Offshore Voluntary Disclosure Program (OVDP). The OVDP allowed U.S. taxpayers to voluntarily disclose unreported foreign accounts and pay a reduced penalty to resolve their civil liability for not declaring foreign accounts to U.S. authorities. During 2011 and 2012, Bank Leumi requested that Khoubian sign a Form W-9 for U.S. tax reporting purposes. In an August 13, 2012, recorded telephone conversation with a banker at Bank Leumi, Khoubian stated that the reason he did not want to sign a Form W-9, was "because you have to pay half of it."
In 2012 and 2014, Khoubian knowingly made multiple false statements to IRS special agents investigating his foreign accounts, including falsely stating that the Bank Leumi accounts were not in his name, that he did not own a bank account in Germany from 2005 to 2010, that he closed his German bank account and moved all of that money to the United States, and that none of the money in his German bank account was moved to Israel.
As part of his sentence, Khoubian was ordered to pay $612,310 in restitution to the IRS. Additionally, as part of his guilty plea, Khoubian paid a Foreign Bank and Financial Accounts (FBAR) penalty in the amount of $7,686,004 plus interest and penalties.
This case was prosecuted by Trial Attorneys Christopher S. Strauss and Ellen M. Quattrucci of the Justice Department’s Tax Division, with the assistance of Assistant United States Attorney Robert Conte of the U.S. Attorney’s Office for the Central District of California, and was investigated by the IRS-Criminal Investigation.
CEO of Credit Card Processing Company Charged in $19 Million Credit Card Laundering SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced a superseding indictment today against BRANDON BECKER, the former CEO of CardReady, LLC (“CardReady”), on charges of fraudulently operating a credit card laundering scheme that enabled access to the credit card system for certain deceptive businesses, including an underlying telemarketing scheme. From about 2012 through 2015, according to the Indictment, the telemarketing scheme raised over $19 million from thousands of customers who received cold calls promising to reduce their overall debt burdens for fees of up to $1,495. The scheme resulted in many complaints of fraud and deceptive tactics and requests for millions of dollars in refunds and chargebacks. The charges include that, from approximately 2012 through 2015, BECKER and his co-conspirators enabled the scheme by creating dozens of sham merchant accounts and false merchant applications, defrauding an associated credit card processing company and a federally insured bank into processing more than $19 million in payments for the scheme.
BECKER was originally arrested at Los Angeles International Airport on September 22, 2019. He is scheduled to appear for arraignment on the instant charges on October 17, 2019, before United States District Judge Loretta A. Preska.
U.S. Attorney Berman said: “As our society relies ever more on credit cards and electronic payments, both individual citizens and corporations have every right to expect truthfulness and fair dealing in the marketplace – not fraud and deceit.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “People cringe when they see a telemarketer calling because they fear being scammed. This investigation is proof that fear isn’t misplaced. It also shows those who are allegedly scamming innocent victims aren’t getting away with their crimes. The FBI and our law enforcement partners are paying attention, and maybe one day the phone ringing won’t mean people losing their money.”
According to the Indictment unsealed today in Manhattan federal court[1]:
BECKER, was the CEO of CardReady, a Los-Angeles based company acting as a sales agent in the credit card processing industry. As part of its business as a sales agent, CardReady found merchants who wanted credit card processing services, and submitted merchant applications on behalf of those merchants to an Independent Sales Organization (“ISO”), referred to in the Indictment as the “New York ISO.” The New York ISO then evaluated the merchant applications, and referred acceptable merchant accounts for processing up the chain to Payment Processor-1 and to Bank-1. Bank-1 and Payment Processor-1, in turn, processed payments to merchants for purchases by customers who had used credit cards.
In or about 2012, BECKER negotiated a deal with the principal of Telemarketer-1 to provide credit card processing for Telemarketer-1. Under this deal, CardReady would retain approximately one-third of Telemarketer-1’s credit card sale transactions in exchange for providing Telemarketer-1 access to the credit card processing network. For roughly the next two years, Telemarketer-1 was engaged in a marketing scheme in which it cold-called customers and offered services, including debt consolidation and interest-rate reduction, which were prohibited by the applicable guidelines from Bank-1 and other associated processing entities (the “Guidelines”), and which – as BECKER knew – would produce chargebacks from dissatisfied customers far in excess of the number and rate of chargebacks permitted under the Guidelines.
In securing payment card processing for Telemarketer-1, BECKER concealed that Telemarketer-1 was the true underlying merchant. Instead, BECKER and his co-conspirators, over a period of more than 20 months, created approximately 26 sham merchant companies, each headed by a “signer” (the “Sham Merchants” and the “Sham Merchant Accounts”). The 26 signers for the 26 Sham Merchants typically had no business of their own, and lacked knowledge of Telemarketer-1’s business. In return for signing the paperwork provided to them, the signers were paid a nominal fee from CardReady. BECKER and his co-conspirators prepared and coordinated fraudulent merchant applications for each of the Sham Merchants, through merchant applications that falsely described the Sham Merchants to make them look like legitimate independent businesses and to make it more likely that the associated Sham Merchant Account would be approved for processing by the New York ISO, Payment Processor-1, and Bank-1. The merchant application for each Sham Merchant also concealed the Sham Merchant’s true association with Telemarketer-1.
By steering Telemarketer-1’s payment processing through these Sham Merchant Accounts, BECKER accomplished a number of fraudulent purposes. First, the use of these Sham Merchant Accounts made it possible for Telemarketer-1 and other high-risk merchants to conceal their identities from Payment Processor-1 and Bank-1 and to maintain payment card processing. This was particularly relevant, as Payment Processor-1 repeatedly required CardReady to close individual Sham Merchant Accounts because of excessive chargebacks and reports of sales of prohibited services. BECKER then caused CardReady to quickly replace the closed Sham Merchant Accounts with new Sham Merchant Accounts, precluding Payment Processor-1 from shutting down its processing of Telemarketer-1 and other high-risk merchants. Second, the fraudulent processing scheme enabled Telemarketer-1 and other high-risk merchants to spread out their charges, refunds, and chargebacks across multiple Sham Merchant Accounts. This enabled them to evade chargeback monitoring programs operated by Bank-1, Payment Processor-1, and the New York ISO.
* * *
BECKER, 48, of Los Angeles, California, is charged in four counts, conspiracy to commit wire fraud and bank fraud, conspiracy to make false statements to a bank, wire fraud, and bank fraud. Counts One and Four carry maximum sentences of 30 years in prison, and maximum fines of $1 million or twice the gross gain or loss from the offense. Counts Two and Three carry maximum sentences of 20 years in prison, and maximum fines of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the extraordinary work of the FBI and thanked the Federal Trade Commission for its invaluable assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis and Vladislav Vainberg are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Bucks County Drug Trafficker Convicted on Multiple Gun, Drug ChargesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Matt “Mack” Jones, 36, of Bensalem, PA was convicted at trial of heroin trafficking and gun charges following a four day trial.
In January 2018, New Jersey State Police, the Philadelphia DEA, and the Philadelphia Police Department began a joint investigation of the defendant and other co-conspirators. Officers learned that the defendant was a supplier of heroin, and that he supplied two female associates with bags of heroin and directed them to deliver the bags to customers in New Jersey and the Philadelphia area.
Investigators conducted several controlled buys of heroin from the defendant and his co-conspirators with the assistance of a cooperating witness at the Cherry Hill Mall in Cherry Hill, NJ and the Philadelphia Mills (formerly Franklin Mills) in Philadelphia, PA. Laboratory analysis of the seized material confirmed the presence of heroin mixed with fentanyl. In July 2018, officers searched the defendant’s home and found firearms, including a Colt .38 handgun and a 12 gauge shotgun, ammunition, half a kilogram of heroin, cocaine, marijuana, drug packaging paraphernalia and more than $100,000 cash.
“Jones and other members of this drug organization pumped huge quantities of deadly drugs into our community for years,” said U.S. Attorney McSwain. “Drug trafficking is an inherently dangerous business and the traffickers ultimately deliver destruction to our communities. Our office is determined to investigate and convict these criminals, and put them behind bars.”
Jones faces a potential sentence of 35 years’ to lifetime imprisonment under federal sentencing laws.
The case was investigated by Drug Enforcement Administration, the Philadelphia Police Department, the New Jersey State Police, the Bensalem Township Police, and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Frank Labor III.
Broward County Resident Charged with Wire Fraud, Mail Fraud, and Money Laundering Relating to Dragon-Click Investment Fraud Scheme that Targeted the ElderlyRead the Press Release
Isaac Grossman, 45, of Parkland, Florida, was arrested today on wire fraud, mail fraud, and money laundering charges, for allegedly directing an elder fraud scheme involving the sale of stock in Dragon-Click Corp, a South Florida-based technology company announced Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office.
Grossman was charged by an indictment, that was unsealed today, with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; wire fraud, in violation of Title 18, United States Code, Section 1343; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and money laundering, in violation of Title 18, United States Code, Section 19567 (Case No. 19CR60300). If convicted, the defendant faces a maximum statutory sentence of up to 20 years in prison for each fraud count, and up to 10 years in prison for each money laundering count.
According to allegations in the indictment, from Sept. 2014 through April 2018, Grossman raised approximately $2.4 million in investor funds for a company he was president of, Dragon-Click Corp. Grossman solicited investments from dozens of individuals across the country, most of whom were elderly retirees. Grossman told potential investors that Dragon-Click was developing an internet application that would revolutionize internet shopping, by allowing a user to upload a photograph of any item the user wanted to purchase, identify all retailers offering that item for sale, provide price comparisons for that item across retailers, and provide a link to retailers’ websites where the user could purchase the item. Grossman is alleged to have solicited funds by falsely telling potential investors they would double, triple, or quadruple their investments, and that Dragon-Click was on the verge of being sold to a large technology company, such as Google, Apple, or Amazon, for over $1 billion. Grossman is also alleged to have falsely told investors that their investment money would be used to complete the technological development of the Dragon-Click internet application, to pay legal fees related to the patent application process, and to close the sale of the application to a large technology company. Rather than using investors’ money for any legitimate business purpose for Dragon-Click, it is alleged that Grossman was misappropriating investors’ funds for his own personal use.
Specifically, Grossman is alleged to have spent at least $1.3 million of investors’ money on gambling, diamond jewelry, luxury cars, tuition payments for his children’s private education, and other personal expenditures. Among other unlawful transactions, the indictment alleges that Grossman spent $35,000 of investors’ funds on a 4.81 carat diamond ring, $21,200 for a lease payment on a McLaren MP4-12C, $36,500 to purchase a Chevrolet Corvette, and $34,500 to partially pay off his home mortgage.
The indictment further alleges Grossman fraudulently concealed from investors that, prior to raising funds for Dragon-Click, he had been permanently barred by the Financial Industry Regulatory Authority (“FINRA”) from acting as a broker-dealer or associating with any broker-dealer firm, and that the U.S. Commodity Futures Trading Commission (“CFTC”) had imposed permanent registration and trading bans on Grossman, and had ordered him to pay restitution in the amount of $121,665.75.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office for their assistance, as they had filed a parallel civil enforcement action against Grossman. See SEC v. Isaac Grossman, et al., Case No. 18-61234-CV-BB (S.D. Fla.). This case is being prosecuted by Assistant U.S. Attorney Michael B. Homer.
An indictment is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
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.
Brooklyn Supreme Court Justice and Former Chair of Board of Directors of Municipal Credit Union Charged with Obstruction of JusticeRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced today that SYLVIA ASH, presiding judge of the Kings County Supreme Court, Commercial Division, and former chair of the board of directors of Municipal Credit Union (“MCU”), was charged in Manhattan federal court with conspiracy to obstruct justice and obstruction of justice, arising from a scheme to seek to influence and impede an ongoing federal investigation into fraud and corruption at MCU, a non-profit, multibillion-dollar financial institution. U.S. Attorney Berman also announced today that Joseph Guagliardo, a/k/a “Joseph Gagliardo,” a former New York City Police Department Officer and former member of MCU’s supervisory committee, was charged separately with embezzlement, fraud, and controlled substance offenses arising from abuse of his position as a member of the supervisory committee. Guagliardo was arrested in Brooklyn, New York, yesterday afternoon and was presented before U.S. Magistrate Judge Ona T. Wang in Manhattan federal court. ASH was arrested at LaGuardia Airport this morning and is expected to appear before Magistrate Judge Wang in Manhattan federal court this afternoon.
U.S. Attorney Geoffrey S. Berman said: “The charges announced today reflect the latest in our ongoing work to uncover criminal conduct at the highest levels of MCU, a multibillion-dollar, federally insured credit union. As alleged, Sylvia Ash, a sitting state court judge, took repeated steps to obstruct a federal investigation into significant financial misconduct at MCU during Ash’s tenure as chair of the board of directors. Joseph Guagliardo allegedly abused his position as an MCU supervisory committee member to enrich himself and his family.”
According to the allegations contained in the two Complaints unsealed today in Manhattan federal court, publicly available information, and prior court filings:[1]
Municipal Credit Union
MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”). MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 500,000 members, and with more than $2.9 billion in member accounts, each of which is federally insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA. Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York state governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.
At all relevant times, MCU was supposed to be overseen by a board of directors (the “Board”) and a supervisory committee (the “Supervisory Committee”), each of which was composed of volunteer members of MCU, who were not to be compensated. According to New York banking law, the Supervisory Committee’s duties included supervision of the actions of MCU’s Board and officers. MCU’s written conflict of interest policy, which was regularly distributed to Board members, Supervisory Committee members, and others, provided, among other things, that members of MCU’s “Board of Directors and Supervisory Committee may not do business with the Credit Union, either individually or as representative of any business entity.”
ASH
ASH is a New York State Supreme Court Justice in Kings County. ASH has served as a judge in the New York State court system since at least approximately 2006, first as a Kings County Civil Court Judge, and, commencing in 2011, as a Kings County Supreme Court Justice. In or about January 2016, ASH was appointed to be the presiding judge in the Kings County Supreme Court’s Commercial Division.
ASH served on MCU’s Board from in or about May 2008 until on or about August 15, 2016, when she resigned. ASH also served as a trustee of MCU’s pension plan, a position from which she resigned on or about October 31, 2016. From in or about May 2015 until her resignation from the Board, ASH served as the chair of the Board.
Guagliardo
GUAGLIARDO is a former officer with the New York City Police Department, who retired in or about 1989. In or about 1993, GUAGLIARDO joined the Supervisory Committee of MCU, a volunteer position, and remained in that position until he was removed from that position by the New York State Department of Financial Services on or about May 24, 2018, except for a brief period of time when he served as a member of MCU’s Board in or about 2008. While he was a Supervisory Committee member, GUAGLIARDO sought to and did use his position to oversee aspects of MCU’s security and fraud department, including serving in the role of vice president of MCU’s security and fraud department while that position was vacant.
Kam Wong
From on or about at least 2007 until on or about June 12, 2018, Kam Wong served as MCU’s chief executive officer (“CEO”) and president. On or about May 8, 2018, Wong was charged and arrested by the United States Attorney’s Office for the Southern District of New York, and, on or about June 12, 2018, Wong was terminated by MCU. On or about December 2, 2018, Wong pled guilty to a multimillion-dollar embezzlement from MCU, and acknowledged, in his written plea agreement, among other things, endeavoring to obstruct and impede and obstructing and impeding the administration of justice with respect to the criminal investigation into this matter, and agreeing with one or more others to do the same.
ASH’s Alleged Obstruction of Justice
From at least in or about 2012 through 2016, while serving as an MCU Board member and while Wong was CEO, ASH received annually tens of thousands of dollars in reimbursements and other benefits from MCU, including airfare, hotels, food and entertainment expenses for her and a guest to attend conferences domestically and abroad, as well as payment for phone and cable bills, and electronic devices. Even after her resignation from the Board, Wong continued to provide or cause MCU to provide ASH with benefits, such as Apple devices.
In or about January 2018, after Wong had been approached by federal law enforcement agents investigating potential financial misconduct by Wong involving MCU and in an attempt to protect Wong, ASH agreed to and did sign a false and misleading memorandum purporting to explain and justify millions of dollars in payments that Wong had received from MCU, which was then provided by Wong to law enforcement officers.
Subsequently, ASH agreed to and did continue to seek to influence and impede the federal investigation in multiple ways, including by (i) concealing and deleting relevant text messages and email messages and wiping her MCU-issued Apple iPhone in a further effort to destroy and impair the availability of evidence that had been sought by federal grand jury subpoenas, and (ii) making false and misleading statements to federal law enforcement officers in interviews conducted as part of a federal criminal investigation.
GUAGLIARDO’s Alleged Embezzlement, Fraud, and Unlawful Provision of Controlled Substances to Wong
GUAGLIARDO engaged in a long-running scheme to defraud MCU, with the agreement and assistance of, among others, Wong. Among other things, GUAGLIARDO defrauded and embezzled from MCU by causing it to direct more than $250,000 to a purported security company created and controlled by GUAGLIARDO, but operated in another’s name, which did little to no real work for MCU. GUAGLIARDO also defrauded and embezzled from MCU by over-billing for more than $200,000 for purported web advertising services provided by a non-profit organization that GUAGLIARDO also controlled.
In addition, during substantially the same period in which GUAGLIARDO was committing and concealing these offenses, GUAGLIARDO participated in a scheme to unlawfully distribute controlled substances to Wong, in the form of prescription drugs, some of which were obtained from GUAGLIARDO’s spouse, who worked as a doctor affiliated with a public hospital, and some of which were obtained from a doctor affiliated with the New York City Police Department.
* * *
ASH, 62, of Brooklyn, New York, is charged with one count of conspiracy to obstruct justice, which carries a maximum penalty of five years in prison; and two counts of obstruction of justice, each of which carries a maximum penalty of 20 years in prison.
GUAGLIARDO, 62, of Brooklyn, New York, is separately charged with one count of conspiracy to embezzle from a federal credit union, which carries a maximum penalty of five years in prison; one count of embezzlement, one count of conspiracy to defraud a financial institution, and one count of defrauding a financial institution, each of which carries a maximum penalty of 30 years in prison; and one count of conspiracy to distribute controlled substances, and one count of distribution of controlled substances, each of which carries a maximum penalty of 20 years in prison.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
U.S. Attorney Berman praised the outstanding work of the Special Agents of the United States Attorney’s Office. Mr. Berman also thanked the New York County District Attorney’s Office, the New York State Department of Financial Services, and the New York City Police Department Internal Affairs Bureau for their assistance.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark and Daniel C. Richenthal are in charge of the prosecution, with assistance of Special Assistant U.S. Attorney Alona Katz from the New York County District Attorney’s Office.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints, and the description of the Complaints set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Baltimore Felon Pleads Guilty to Federal Charge for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – Malik Moseley, age 28, of Baltimore, Maryland, pleaded guilty today to a federal charge for being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; and Anne Arundel County Police Chief Tim Altomare.
“This case is part of the initiative undertaken by state and federal law enforcement to reduce fentanyl overdoses in Baltimore. Under this program, prosecutors in Baltimore City, the U.S. Attorney’s Office, and DEA agents are reviewing every arrest involving distribution of fentanyl in Baltimore, with the support of the Baltimore City Police Department’s Laboratory Section,” said U.S. Attorney Robert K. Hur. “I am grateful to Baltimore City State’s Attorney Marilyn Mosby for providing a cross-designated Assistant State’s Attorney to facilitate and coordinate this review.”
According to his guilty plea, in September and October 2018, members of the Baltimore Police Department conducted two controlled purchases of drugs from Moseley at a residence in the 400 block of Freeman Street in South Baltimore. Law enforcement officers also conducted covert surveillance outside the residence and observed Moseley and another individual engage in suspected hand-to-hand drug transactions in front of the home.
Based on this information, BPD officers obtained a search warrant for the residence, which they executed on October 17, 2018. At the time, Moseley had an open arrest warrant from Anne Arundel County, Maryland. While approaching the residence, the officers observed Moseley standing outside, and they immediately apprehended and arrested him. In a search of Moseley’s person incident to his arrest, the officers recovered a 9mm semi-automatic pistol, loaded with eight rounds of ammunition; a plastic bag containing nine suboxone strips, and $790 in cash. Moseley had a previous felony conviction and was therefore prohibited from possessing a firearm or ammunition.
During the search of the residence, the officers recovered bags containing a total of approximately 47 grams of fentanyl; a bag containing approximately 5 grams of a heroin-fentanyl mixture; drug paraphernalia, including three digital scales with drug residue; razor blades with residue; a glass plate with residue; a pill press with residue; and various drug packaging material. In addition, law enforcement recovered a gun holster; two remote-control surveillance drones; a home surveillance system with two high-definition cameras; $101 in cash, and $30 in counterfeit currency.
Moseley faces a maximum of 10 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for January 23, 2020 at 10:30 a.m.
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. 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.
United States Attorney Robert K. Hur commended the DEA, the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Christina A. Hoffman, who is prosecuting the case.
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Bakersfield, California Man Sentenced to 41 Months for Possession of AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Sidney Charles Shannon, age 35, of Bakersfield, California, was sentenced to 41 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the District 18 Drug and Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleges that on or about October 30, 2018, within the Eastern District of Oklahoma, the defendant, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, eight rounds of Precision Made Cartridges 9mm caliber ammunition, which had been shipped and transported in interstate and foreign commerce.
United States Attorney Brian J. Kuester said, “Violent crime reduction is always a top priority for law enforcement agencies because it is at the heart of what it means to serve and protect. By enforcing federal laws related to unlawful possession of firearms and ammunition, we help our local law enforcement partners in their efforts to battle violent crime in their communities.”
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.Acupuncturist Pleads Guilty to Charges in Scheme that Caused Millions of Dollars in Losses to Amtrak’s Health Care PlanRead the Press Release
LOS ANGELES – A licensed acupuncturist pleaded guilty today to federal criminal charges and admitted fraudulently billing Amtrak’s health care plan for millions of dollars’ worth of acupuncture, massages and facials that either were medically unnecessary or were never provided.
Guiqiong Xiao Gudmundsen, 52, a.k.a. “Kimi” Gudmundsen, of Anaheim Hills, pleaded guilty to one count of health care fraud and one count of money laundering.
Gudmundsen owned Healthy Life Acupuncture Center, which operated in Riverside and in Los Angeles. From January 2008 until December 2015, Gudmundsen recruited Amtrak employees to visit Healthy Life and then, among other things, billed the Amtrak health care plan for acupuncture, which she knew wasn’t being provided, according to her plea agreement.
Gudmundsen also admitted to billing the health plan for medically unnecessary services such as massages and facials, as well as for work-related injuries she knew the Amtrak plan did not cover. She also provided medical services to non-Amtrak health care plan participants and then billed the plan for it under the name of an actual Amtrak plan participant, the plea agreement states. Gudmundsen admitted that she regularly waived co-payments, co-insurance, and deductibles for Amtrak health care plan participants, something the plan did not permit.
Gudmundsen also knowingly and routinely funneled her ill-gotten gains through bank accounts opened in the names of a shell company and her relatives, according to the plea agreement.
The government estimates the total loss to the Amtrak health plan to be at least $3.8 million.
United States District Judge Dolly M. Gee has scheduled a January 22 sentencing hearing, at which time Gudmundsen will face a statutory maximum sentence of 30 years in federal prison.
This matter was investigated by Amtrak Office of Inspector General, IRS Criminal Investigation, and the U.S. Department of Labor, Employee Benefits Security Administration.
This case is being prosecuted by Assistant United States Attorneys Scott D. Dubois and Jenna Williams of the General Crimes Section.
10 October 2019
Wilmerding Drug Trafficker Will Spend 8+ Years in Prison for Possessing Large Amounts of a Heroin/Fentanyl Mixture Sourced from New York CityRead the Press Release
PITTSBURGH, Pa. – A former resident of Wilmerding, PA, was sentenced to eight years and four months (100 months) in federal prison and six years of supervised release for possessing with the intent to distribute 40 grams or more of fentanyl, United States Attorney Scott W. Brady announced today.
Ronnell Lawrence, 31, was sentenced on October 8, 2019, before United States District Judge David Cercone. Lawrence has been detained since his initial appearance in federal court and will continued to be detained as he starts to serve his sentence.
In connection with the guilty plea, the court was advised that on July 10, 2017, Rondell Lawrence drove his brother and co-defendant, Ronnell Lawrence to the Greyhound Bus Station in downtown Pittsburgh. Ronnell Lawrence then boarded a bus bound for New York City. Ronnell Lawrence returned to Pittsburgh after spending only one hour in New York City. On July 11, 2017, Rondell Lawrence returned to the Greyhound Bus Station to pick up his brother. Investigators observed Ronnell putting a large camouflage backpack into the back of the Nissan Pathfinder. Investigators later stopped the Nissan Pathfinder for having an expired registration. A subsequent search of the vehicle and the camouflage bag placed there by Ronnell revealed eight large bags of suspected heroin and fentanyl and a bus ticket to New York City. The Drug Enforcement Agency Laboratory later tested the substances seized from the bag and revealed that the substances were approximately 390 grams of a heroin/fentanyl mixture.
Co-defendant Rondell Lawrence was previously sentenced to five years (60 months) incarceration on the same charge.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Allegheny County District Attorney’s Narcotics Enforcement Team (DANET), Pittsburgh Bureau of Police, and North Versailles Police Department conducted the investigation leading to the guilty pleas and sentences in this case.
West Palm Beach Man Pleads Guilty to Stealing Dozens of Letters from Residence in Lantana with over $170,000 in Checks InsideRead the Press Release
Marchello Wilbon, 34, of West Palm Beach, entered a guilty plea yesterday before U.S. District Judge Rodolfo A. Ruiz II to the one-count indictment charging him with mail theft, in violation of Title 18, United States Code, Section 1708. (Case No. 19-80119-CR-Ruiz). The defendant faces up to 5 years in prison, and up to $250,000 in fines on the charge when he is sentenced on December 13, 2019.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Sean Scheller, Chief of Police for the Town of Lantana, Florida, and Lesley Allison, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
According to court documents, including the indictment, criminal complaint and factual proffer in the plea agreement, on July 15, 2019, at approximately 8:30 am, a Lantana resident who lives on S.E. Atlantic Drive placed letters containing 39 checks with face value of approximately $171,599 in the mailbox located outside the resident’s home for pick up by the U.S. Postal Service. Wilbon was charged with stealing the mail, containing the checks, from the resident’s mailbox.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Lantana Police Department, and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
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 at http://pacer.flsd.uscourts.gov.
U.S. DOJ awards federal grants aimed at battling opioid epidemicRead the Press Release
Seattle – U.S. Attorney Brian T. Moran today announced significant grants to Western Washington counties and health departments to battle the opioid epidemic. The Washington State Health Department, King County, Whatcom County, Skagit County and Pacific County were all awarded U.S. Department of Justice grant funding.
“Many of these grants are aimed at providing treatment and support to those who are reentering society after prison sentences,” said U.S. Attorney Moran. “With these funds DOJ is making a commitment to breaking the harmful cycle of substance abuse and incarceration.”
Pacific County in Southwest Washington was awarded two grants totaling $1,250,000 to focus on substance abuse and reentry from prison. The bulk of the grant funds support the Pacific County Second Chance Reentry Program that works to reduce recidivism of individuals with substance abuse and mental disorders.
Whatcom County received a $900,000 grant to implement a Law Enforcement Assisted Diversion (LEAD) program to expand access to treatment and recovery support services in the criminal justice system. The Whatcom County Prosecutor’s Office will partner with law enforcement, public defenders, the local health department and health care providers on diversion to treatment and supportive housing options.
The Seattle King County Health Department was awarded $1.2 million to focus on treatment within the corrections system and the transition to community based substance abuse treatment options. The support will assist those with substance abuse disorder as they leave prison and connect to community treatment providers.
Skagit County was awarded $997,407 to support innovative work in reentry from prison to the community. The Jail to Community Transitions Program aims to reduce recidivism with data driven programs that focus on public safety. The program is expected to serve 200 participants.
The Washington State Department of Health was awarded nearly $2 million to support its prescription monitoring program. The $1,996,316 grant will improve the monitoring of opioid prescriptions for educational and law enforcement purposes.
The Washington State Health Care Authority was awarded two grants totaling $222,637 to provide residential drug treatment in jails and prisons.
For additional information on individual grants, please contact the recipient organizations.
U.S. Attorney Liu Written Statement to the D.C. Council on Firearms Trafficking in the Washington Metropolitan RegionRead the Press Release
WASHINGTON – The United States Attorney's Office for the District of Columbia submitted written comments for the record to the Committee on the Judiciary and Public Safety of the D.C. Council in response to the Committee’s invitation to testify or submit written testimony on the topic of Firearms Trafficking in the Washington Metropolitan Region and Legislative Strategies to Respond to Firearm Violence. In particular, the Office responded to the Committee’s solicitation of comments on interagency efforts to combat gun trafficking.
The Office looks forward to partnering with D.C. community leaders and its law enforcement partners to enhance public safety in the District of Columbia. Full text of the Office’s comments follows:
The United States Attorney's Office for the District of Columbia (USAO-DC) commends the Committee on the Judiciary & Public Safety for its efforts to convene a discussion on combatting firearms violence in the District of Columbia. As you know, illicit firearms play a role in most forms of the violent crimes that we see here in the District and serve to empower organized criminal groups. Firearms violence, often committed at the hands of repeat offenders, too often shakes our community to its core as innocent bystanders lose their lives. To tackle this intractable issue, we must all work together to devise a multi-disciplinary, multi-agency, and multi-jurisdictional set of effective solutions. As a result, my Office has partnered with the D.C. Metropolitan Police Department (MPD), the United States Attorney's Office for the Eastern District of Virginia, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in an effort to address a significant source of illegal firearms in the District. As we have indicated previously (most recently in the October 2, 2019, letter of Renata Cooper to the Committee), the ATF stands ready to meet with the Committee and staffers to discuss further the nexus between firearms access and firearms trafficking as well as trends important to trafficking and violent crime reduction.
Firearms make their way into the District in a variety of ways. Most firearms are produced legally and then diverted into the illicit market. They are frequently stolen and trafficked. Some unlicensed firearms sellers purchase firearms in one state, then transport them to their state of residence and sell, trade, or distribute the firearms, which can end up in the hands of those who commit crimes. Some prohibited purchasers (such as convicted felons) also use "straw purchasers," individuals who buy firearms on behalf of persons who would otherwise be precluded from buying guns themselves. Gun traffickers have also found ways to exploit the loopholes in federal law by purposefully purchasing guns through sales that do not require background checks or sale records.
Our challenge, therefore, is to determine how can we reduce the number of firearms-related incidents and keep guns out of the hands of those who should not have them. One effective strategy is to address the problems of unscrupulous gun dealers, stolen weapons, and illegal purchasers and suppliers. We have sought to do this through increased information sharing and coordination with our federal and local law enforcement partners. This allows us to identify specific incidents and trends, thereby enabling us to move quickly in investigating and prosecuting these offenses in the most appropriate venue.
Further, our partnership with the ATF, the federal agency tasked with investigating firearms trafficking, has hammered home how essential the ability to track firearms is to the reduction of trafficking and the successful investigation of firearms-related crimes. In fact, through ATF's firearms tracing capabilities and the use of the National Integrated Ballistic Information Network (NIBIN), our collective partnership has been able to gain intelligence regarding specific recovered firearms that assists not only in identifying the firearm's source, but its connection to other shootings, crimes, and violent offenders.
Working side by side with our partners on this issue has allowed us to prosecute individuals involved in the illegal trafficking of firearms. For example, as recently as April 2019, Isaiah Green of Washington, D.C., was sentenced to 50 months in prison for his role in drug trafficking schemes in which he illegally trafficked 31 guns, and Stephon Jeter of Washington, D.C., was sentenced to 63 months for his role in a multi-state firearms trafficking conspiracy in which 25 firearms were recovered.
USAO-DC will continue to prosecute aggressively those who commit criminal offenses using firearms, those who illegally traffic in firearms, and those who illegally possess firearms in our city. The correlation between violent crime and the availability and use of illegal guns is undeniable, and we will continue to work closely with our partners in the law enforcement community in the promotion of public safety and the pursuit of justice. We stand by our message to those who traffic in illegal firearms: You will be prosecuted to the full extent of the law. And we stand by each and every one of our partners in the District without whose invaluable partnerships we cannot find solutions to the illegal flow of firearms.
U.S. Attorney Brady Announces Progress in Making our Communities Safer through Targeted Strategies to Combat Violent CrimeRead the Press Release
PITTSBURGH, PA - Scott W. Brady, United States Attorney for the Western District of Pennsylvania, today announced continued progress in combatting violent crime through a series of targeted strategies as part of the revitalized Project Safe Neighborhoods (PSN) initiative.
Two years ago, the Department of Justice strengthened and enhanced Project Safe Neighborhoods, an evidence-based program that serves as the centerpiece of the Department’s violent crime reduction strategy. In the Western District of Pennsylvania, U.S. Attorney Brady has deployed the enhanced PSN program to attack a broad range of violent crime issues facing the district. Western District of Pennsylvania prosecutors target violent criminal organizations and drug trafficking enterprises, while also removing the most violent offenders from the community through prosecution of individual violent crime and illegal firearm possession cases. PSN resources are also invested in local prevention and reentry programs that seek to implement lasting reductions in violent crime through community engagement.
"The revitalized Project Safe Neighborhoods program is a major success," said Attorney General William P. Barr. "It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger."
Throughout the past two years, the U.S. Attorney’s Office for the Western District of Pennsylvania has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. Partnerships with county District Attorney’s offices are critical to this mission, including the Allegheny County District Attorney’s Narcotics Enforcement Team (DANET), and District Attorney’s Offices in Beaver, Erie, Mercer and Washington Counties. Additionally, through a partnership with the Allegheny County Police, we are identifying crime hotspots and focusing federal resources where they can make the most impact.
"Creating safer neighborhoods by decreasing violent crime, including large-scale drug trafficking, illegal possession and use of firearms, gang activity and organized crime, is a top priority of this office," said U.S. Attorney Scott W. Brady. "By working with our federal, state and local law enforcement partners, as well as our community partners, we have developed an effective strategy to reduce violence in the Western District of Pennsylvania. We will continue to use every available federal law enforcement tool to keep our citizens safe."
As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Reduction in Firearms-Related Violent Crime in Western Pennsylvania
For the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics, according to the FBI’s 2018 Unified Crime Report. In 2018, both the number of violent crimes and the violent crime rate fell from 2017 numbers, by 3.3% and 3.7%, respectively.
In western Pennsylvania, the 2018 statistics show a more significant decrease. Firearms-related violence (murders, robberies and assaults committed with a firearm) fell 19% for the 25 counties comprising the Western District of Pennsylvania, including a 25% reduction in Allegheny County, a 10% reduction in Erie County, a 39% reduction in Washington County and a 14% reduction in Westmoreland County. Firearms-related violent crime fell 32% in the City of Pittsburgh.
Enforcement Actions
The PSN program has enabled the U.S. Attorney’s Office to partner with local and state law enforcement to ensure federal efforts are focused against the most violent offenders. This partnership has resulted in significant increases in the prosecution of violent crime and gun offenders. In fiscal years 2018 and 2019, the U.S. Attorney’s Office charged more federal firearm offenses in each year than were charged in each of the fiscal years of 2004 through 2016.
Federal prosecution of violent criminals provides several key advantages:
• Pretrial detention – a presumption that the defendant is a danger and a risk of flight, and should be held without bond pending trial.
• Severe penalties with mandatory minimum sentences - we are able to incapacitate these dangerous criminals and protect the community from further crimes by them.
• No parole or early release. Defendants serve their full sentence.
Gang Prosecutions
"Because every citizen deserves to live free from the fear of violent crime, we made prosecuting and dismantling violent street gangs a top priority of our office," said U.S. Attorney Brady.
• In June, following a Title III wiretap investigation, we charged 33 residents of Braddock, Pa. and Allegheny County with drug trafficking and firearms possession. Many of these individuals were members or associates of the "SCO" gang, a violent, multi-generational drug trafficking network involved in the illegal distribution of cocaine, heroin and marijuana.
• Also in June, following a separate Title III wiretap investigation, 39 people – 37 from the Pittsburgh-area – were indicted on charges of drug trafficking and firearms violations. The named conspirators included leaders, members, drug suppliers and associates of a violent neighborhood gang known as Darccide-Smash 44 (DS44), based out of the Knoxville, Arlington and Mt. Oliver neighborhoods on Pittsburgh’s South Side.
• Through a partnership with the Lawrence County District Attorney’s Office, nine Ellwood City residents were charged in separate but related indictments with violating federal narcotics and firearms laws. One of those defendants, Derick Davare, was sentenced to 12½ years (150 months) for conspiring to possess 400 grams or more of fentanyl and illegally possessing guns and ammunition as a felon.
• In Summer 2018, 28 members and associates of the violent Greenway Boy Killas (GBK) street gang were charged with drug trafficking in and around an area known as the Greenway Projects located in the West End of the City of Pittsburgh. As of October 2019, 16 of the defendants charged have entered guilty pleas. Gang member Brett Rodgers was sentenced in July to 16 years and eight months (200 months) in prison for conspiring to distribute crack cocaine.
Armed Robberies
"Armed robberies are among the most violent crimes investigated and prosecuted by our office. We are committed to bringing these violent criminals to justice," said U.S. Attorney Brady.
Examples of armed robberies cases prosecuted in federal court in the Western District of Pennsylvania in 2019 include:
• In August, four Allegheny County residents were indicted on charges of conspiracy to commit Hobbs Act robbery and aiding and abetting. The indictment alleges that Jaron Davis, True Kinnon, Rudolph McBride and Wayne Edward conspired to commit a series of armed robberies in December 2018 and January 2019 of various convenience stores throughout Pittsburgh and Allegheny County.
• In September, Rayshawn Patterson of Cleveland, Ohio pleaded guilty to conspiracy to burglarize Federal Firearms Licensees (FFLs) in Clarion and Jefferson Counties and transport the stolen firearms back to Cleveland. Traveling from Cleveland to rural areas of western Pennsylvania, Patterson and his co-conspirators burglarized DSD Sports in Brookville, Pa., by smashing the front door and windows with a sledgehammer and other tools. Once inside the store, they stole 16 firearms including 14 handguns and two assault rifles, which they transported back to Cleveland. Patterson is scheduled to be sentenced on February 18, 2020.
• Last October, following their conviction at trial, Kahlil Shelton, formerly of Duquesne, Pa., was sentenced to 16 years (192 months) and Deron Howell, formerly of Swissvale, Pa., was sentenced to 42½ years (511 months) on numerous drug, firearm and robbery violations stemming from two violent robbery incidents in Cranberry Township and Pittsburgh in the summer of 2017.
•In September, Glenn Ford of Wilkinsburg, Pa. was sentenced to 12 years and seven months (151 months) on his conviction of bank robbery and Hobbs Act robbery. Ford, wearing various costumes, was responsible for a spree of robberies of banks and convenience stores in the City of Pittsburgh.
Illegal Possession/Saleof Firearms
Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition. The prosecution of felons who illegally possess firearms has long been a key part of an effective PSN anti-violence strategy by the U.S. Attorney’s Office. Working collaboratively with federal and local law enforcement, the prosecution of felons possessing firearms endeavors to prosecute those criminals with a history of violence, thereby disrupting the cycle of violence in neighborhoods throughout the district.
The U.S. Attorney’s Office has increased its prosecution of illegal possession of firearms cases–charging more gun defendants in each of the past two years than in any single year in more than a decade.
Examples of felon in possession cases prosecuted in federal court in the Western District of Pennsylvania in 2019 include:
• In December 2018, Thomas Stanko of Latrobe, Pa., was indicted for the unlawful possession of 17 firearms and ammunition, after having been convicted of multiple crimes related to retaliation against a witness or victim, criminal conspiracy, firearms not to be carried without a license, receipt of stolen property, and forgery.
• In May, Federal Firearms License dealer William Midberry, of Slippery Rock, Pa., pleaded guilty to making false entries onto federal firearms purchase forms and selling 21 firearms without performing required background checks. Midberry, who operated the Slippery Rock Outfitters gun dealership, is scheduled to be sentenced on December 5, 2019.
• In January, Brandon Mlinac of North Versailles. Pa., was sentenced to 2½ years’ imprisonment for the illegal possession of an unregistered New England Firearms 20 gauge sawed-off shotgun, with an obliterated serial number and ammunition, based upon an outstanding protection from abuse order entered against him in December 2017. Mlinac also possessed a Savage Arms 17 caliber rifle while unlawfully using methamphetamine.
• In January, Stanley Patterson of Carnegie, Pa., was sentenced to seven years (84 months) in prison for illegally possessing multiple firearms, ammunition and body armor. Patterson has prior convictions for crimes that include robbery, criminal conspiracy, burglary, theft, receiving stolen property and felony criminal trespass. A person is prohibited from possessing body armor under federal law if they have been convicted of a prior crime of violence, such as robbery.
• In October, Darnell Shipman of Pittsburgh was sentenced to 7½ years’ imprisonment for unlawfully possessing a Canik 9-millimeter pistol and ammunition after having been convicted of 13 prior offenses in seven different cases between 2010 and 2018.
Community Partnerships
The U.S. Attorney’s Office sponsors, supports and collaborates with multiple community organizations and leaders to engage the public in PSN, not just as recipients of violent crime reduction messages, but also as active participants in the initiative to reduce crime in our community.
• U.S. Attorney’s Police-Community Relations Group - These groups, which operate in both southwestern Pennsylvania and Erie, work to ensure that the civil rights of all are protected and respected, while recognizing the need for effective law enforcement strategies to combat crime and enhance public safety. The groups bring together law enforcement and community leaders who work to build and enhance trust and mutual respect.
• Pittsburgh Group Violence Initiative, a strategy that aims to reduce gang-related gun violence by targeting the city’s most violent gang members while also offering social services and support to those who agree to stop the violence.
• Unified Erie, a data-driven violence reduction strategy that focuses on prevention, enforcement and re-entry.
• Pittsburgh Downtown Safety Coalition, which ensures the safety of more than 1,200 students transitioning through the downtown area, minimize disruption and create avenues for positive interaction between law enforcement and the students.
• Beaver County Community and Law Enforcement Coalition, which was established to build trust between community and police by enhancing communication and addressing safety concerns.
Reentry Programs
"Reentry programs are a critical part of the Department’s mission to help ex-offenders to successfully reenter society and lead productive, fulfilling lives," said U.S. Attorney Brady.
The U.S. Attorney’s Office leads several reentry programs for ex-federal offenders. Given that federal offenders with significant criminal histories or a history of violent crime recidivate at rates of more than 70% and 63%, respectively, according to the U.S. Sentencing Commission, it is a priority of our office to provide those offenders returning to our community with the tools needed for a successful reentry. These include:
• The Reintegration into Society Effort (RISE) Court connects defendants to mental health and substance abuse treatment, education and literacy programs, employment and vocational training, family counseling, healthcare, and housing. In exchange for accruing credits for compliance and attending RISE court, participants can earn a reduction of up to half of their remaining term of supervised release.
• With nearly 10% of federal defendants having served in the United States Armed Forces, the Veterans Treatment Court was created with the goal of assisting veterans on federal supervision with mental health and substance dependency issues that relate to their military service. The Veterans Court offers intensive, specialized court supervision to veterans; coordinates the provision of services and treatment to qualified veterans through the Veterans Administration; and provides a veteran peer mentor for each participant. Participation is voluntary and graduates from the program may have their terms of supervision reduced.
• The BRIDGES Presentence Court was created to identify and address those defendants with significant substance abuse and/or mental health abuse issues. A voluntary program, Bridges participants agree to intensive supervision that includes regular court appearances and mandatory participation in substance abuse and/or mental health abuse treatment programs. The program also provides support with employment, education, cognitive behavioral therapy, and other needs. Participants enter a guilty plea before the assigned District Court Judge, and are then required to comply with an intensive supervision program of approximately 12 to 18 months. BRIDGES Court has two tracks for participants who successfully comply with intensive supervision, that result in either (1) dismissal of the charges; or (2) an agreed upon non-incarceration sentence.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Traverse City Practice Pays over $600,000 to Resolve False Claims Act Allegations Regarding Anesthesia BillingRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that Traverse Anesthesia Associates, P.C. ("TAA"), and six of its anesthesiologists, agreed to pay the United States $607,966 to resolve allegations, under the federal False Claims Act, that they falsely submitted certain anesthesia claims to Medicare. TAA is a medical professional corporation that provides anesthesiology and pain management services at a number of hospitals and outpatient sites in the Traverse City region. The United States specifically contended that, for certain claims billed as medically directed anesthesia services, TAA and its anesthesiologists did not meet the regulatory requirements and conditions of payment for billing those services as medically directed.
This case resulted from a civil lawsuit filed by two whistleblowers who previously worked as employees at TAA. The lawsuit, known as a qui tam action, was filed under the False Claims Act, which allows private whistleblowers to bring lawsuits on behalf of the United States and receive a share of any recoveries. In this case, the Government partially intervened in the whistleblowers’ lawsuit. The whistleblowers will collectively receive over $120,000 of the settlement proceeds. The qui tam case is docketed as United States, et al. ex rel. Stone, et al., v. Traverse Anesthesia Associates, P.C., et al., No. 1:18-cv-1416 (W.D. Mich.).
"Those who provide medical services to Medicare beneficiaries and then bill for those services, must ensure compliance with Medicare’s billing requirements," said U.S. Attorney Birge. "My office investigates allegations of fraudulent billing and will enforce compliance with Medicare’s regulations. Billing Medicare for one level of service, while providing another, is exactly the type of activity that my office will aggressively pursue."
This case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Andrew J. Hull represented the United States.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
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Three Topeka Men Charged in Federal Drug Trafficking InvestigationRead the Press Release
TOPEK, KAN. – Federal charges were unsealed today against three men who are accused of drug trafficking in Topeka, U.S. Attorney Stephen McAllister said.
On Wednesday, federal, state and local law enforcement agencies served search warrants at 13 locations and arrested three defendants as part of the investigation.
Charges have been filed in federal court in Topeka against the following defendants:
James Charles Booker, Jr., 35, Topeka, one count of conspiracy to possess with intent to distribute cocaine.
Brett Damon McMurray, 48, Topeka, one count of conspiracy to possess with intent to distribute cocaine.
Maurice Ross, 47, Topeka, one count of distributing cocaine.
Upon conviction, the crimes carry the following penalties:
- Conspiracy to possess with intent to distribute crack cocaine: Not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
- Distributing cocaine: Up to 20 years in federal prison and a f fine up to $1 million.
The Federal Bureau of Investigation and the Safe Streets Task Force of Topeka investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Texas Tax Return Preparer Sentenced to Prison for Defrauding the United StatesRead the Press Release
A Texas tax return preparer was sentenced yesterday to 60 months in prison for her role in a scheme to defraud the United States and for 27 months (consecutive) for filing a false federal tax return, for a total of 87 months, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment and information provided to the court, Stacey Anderson owned a tax return preparation business, Anderson Professional Tax Services, and operated the business out of her residence. With the assistance of co-defendant Janell Lightner, Anderson prepared 2013 and 2014 tax returns claiming false business items and/or education tax credits, in order to fraudulently increase their clients’ tax refunds from the Internal Revenue Service (IRS). These returns were prepared for clients in Texas, Maryland, and the District of Columbia. Anderson also filed a 2014 tax return for herself, falsely claiming an education credit and reporting a fraudulent income amount. The total tax loss generated from this scheme exceeded $10 million.
In addition to the term of imprisonment, U.S. District Judge Alan D. Albright, in Waco, Texas, ordered Anderson to serve a term of three years of supervised release and to pay restitution to the United States in the amount of $8,100,492.64.
On Aug. 6, 2019, co-defendant Janell Lightner pleaded guilty to conspiring to defraud the United States. Her sentencing, also in front of Judge Albright, is currently scheduled for Dec. 5, 2019.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation and the Inspector General of the Social Security Administration, who conducted the investigation, and Tax Division Trial Attorneys Robert Kemins and David Zisserson, who prosecuted the case. Mr. Zuckerman also thanked the U.S. Attorney’s Office for the Western District of Texas (Waco Division) for their substantial assistance on this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tax preparer charged with fraud in 36-count indictmentRead the Press Release
STATESBORO, GA: A tax preparer has been charged with preparing fraudulent federal income tax returns that resulted in illegally excessive refunds for multiple clients.
Shawree A. Hagins, 58, of Millen, Ga., is charged with 36 counts of Fraud and False Statements in a federal indictment, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. In addition to fines and asset forfeiture, the charges carry a possible sentence of up to three years in prison, followed by a period of supervised release. There is no parole in the federal system.
According to the court documents, Hagins is charged with preparing 36 tax returns on behalf of 12 clients, fraudulently claiming deductions in excess of the amount to which the taxpayers were entitled. The fraudulent claims resulted in excessive refunds of $162,890.
“Tax fraud steals from every legal, taxpaying citizen,” said U.S. Attorney Christine. “In the Southern District, tax preparers who think they can earn a few extra bucks by committing fraud are in for a rude awakening – and a day of reckoning.”
“We cannot allow anyone to claim money that doesn’t belong to them at the expense of the American taxpayer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The allegations against Hagins indicate a flagrant disrespect for the law and an abuse of a position of trust simply for personal greed.”
“The IRS Criminal Investigation Division takes tax violations very seriously,” said Thomas J. Holloman III, Special Agent in Charge of the Atlanta Field Office. “As we approach the 2020 tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced in this indictment. The indictment of Shawree Hagins emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America’s tax system.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated by the Internal Revenue Service Criminal Investigations and the FBI, and is being prosecuted for the United States by Assistant U.S. Attorney Tara Lyons.
Stockton Man Indicted for Illegal Firearm Possession and SalesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Antonio Soto-Perez, 26, of Stockton, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, over the course of four undercover purchases, Soto-Perez sold an informant a total of nine firearms, including a weapon with a high-capacity magazine, one with an obliterated serial number, and two assault rifles.
This case is the product of an investigation by the FBI and the San Joaquin County Metropolitan Narcotics Task Force. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Soto-Perez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stevensville man sentenced for illegal firearms possessionRead the Press Release
MISSOULA—A Stevensville man who was on probation was sentenced to 30 months in prison and three years of supervised release after law enforcement officers found a loaded revolver and methamphetamine in his vehicle, U.S. Attorney Kurt Alme said.
Terry Wayne Nunnery, II, 30, pleaded guilty in June to being a felon in possession of a firearm.
U.S. District Judge Donald W. Molloy presided.
The prosecution said in court records that on June 12, 2018 a search of Nunnery’s vehicle in Missoula led to the recovery of meth and a loaded revolver. Records indicated that Nunnery had been convicted of a felony. When questioned by law enforcement, Nunnery admitted he possessed the firearm in violation of his probation.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by Homeland Security Investigations and the Missoula High Intensity Drug Trafficking Area Task Force.
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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St. Francis Man Indicted for Domestic Assault by an Habitual Offender, Child Abuse, and Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender, Child Abuse, and Assaulting, Resisting, and Impeding a Federal Officer.
Adrian Hawkman, age 35, was indicted on June 11, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 8, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 23, 2019, in Todd County, South Dakota, Hawkman unlawfully committed a domestic assault against a spouse or intimate partner and, at the time of the domestic assault, Hawkman had at least two prior convictions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner. The Indictment further alleges that at the same time and place, Hawkman did abuse, expose, torture, torment, and cruelly punish a child who had not attained the age of eighteen. The Indictment further alleges that on February 24, 2019, Hawkman did forcibly assault, oppose, impede, intimidate, and interfere with a corrections officer who was employed by the Rosebud Sioux Tribe, and that such conduct involved physical contact.
The charges are merely accusations and Hawkman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Hawkman remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Springfield Man Sentenced to 27 Months in Prison for Possessing Loaded Gun in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM SCOTT, 40, of Springfield, Massachusetts, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 27 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded firearm in Hartford.
According to court documents and statements made in court, on July 2, 2018, Hartford Police responded to a residence after a complaint that Scott was in possession of a gun. Officers located Scott near the residence. A subsequent search of Scott’s car revealed a loaded Smith and Wesson .380 caliber pistol.
Scott’s criminal history includes felony convictions in Massachusetts in 2003 and 2012 for possession of cocaine with intent to distribute and, in 2012, for unlawful possession of a firearm.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Scott has been detained since his arrest on July 2, 2018. On March 29, 2019, he pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
South African Man Sentenced for Transportation of Obscene MatterRead the Press Release
United States Attorney Ron Parsons announced that a man from South Africa was sentenced to time served on October 4, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court. He previously pled guilty to Transportation of Obscene Matter.
Andries Snyman, age 45, was one of ten men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2016 Sturgis Motorcycle Rally, targeting internet predators. Following several chats and texts with a person Snyman believed to be a 14 year-old boy, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet to have sex. Additionally, Snyman asked for details about parts of the boy’s physical appearance, which constituted an obscene and lewd writing. When Snyman went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office.
Assistant U.S. Attorney Sarah Collins prosecuted the case.
Sixth Defendant Pleads Guilty in Firearm Trafficking from Tennessee to Kings CountyRead the Press Release
FRESNO, Calif. — Elvia Sanchez, 42, of Lenoir City, Tennessee, pleaded guilty today to conspiring to traffic in firearms by an unlicensed person, and the illegal transportation of firearms received in a state of residency, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Nov. 29, 2016, and June 12, 2017, Elvia Sanchez mailed firearms from Tennessee to Rafael Sanchez in California in connection with a conspiracy to traffic in firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City Police Department in Tennessee, Homeland Security Investigations (HSI), and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant U.S. Attorneys Thomas Newman and Stephanie Stokman are prosecuting the case.
Elvia Sanchez is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on Jan. 6, 2020. Sanchez faces a maximum statutory penalty of five years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person, and five years in prison and a $250,000 fine related to illegal transportation of firearms from her state of residence. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Siloam Springs Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that David Ely, age 34, was sentenced yesterday to 120 months imprisonment followed by four years of supervised release for one count of Possession of More Than 50 Grams of Methamphetamine with Intent to Distribute. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in April 2019, investigators received information that Ely was in route from Siloam Springs, Arkansas to Fayetteville, Arkansas in possession of a large amount of methamphetamine. During a search incident to Ely’s arrest, officers located a duffle bag behind the passenger’s seat that contained 13 bags of methamphetamine, each weighing just over one ounce, a bag of unused syringes, a digital scale, and multiple baggies. The DEA lab results determined that the substance contained 334.7 grams of actual methamphetamine.
Ely was indicted in May 2019 on federal charges and entered his guilty plea in July 2019.
This case was investigated by the 4th Judicial District Drug Task Force (JDDTF), the Washington County Sheriff’s Office, and the DEA. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Seven Individuals Charged in Federal Narcotics and Firearms InvestigationRead the Press Release
WASHINGTON – Seven people have been arrested on federal charges stemming from an ongoing investigation into the distribution of narcotics and the possession of firearms in the Washington, D.C. metropolitan area. To date, large quantities of heroin, fentanyl, and cocaine base (crack) have been seized as a result of the investigation, along with six firearms.
The charges are contained in three indictments and a complaint unsealed in the U.S. District Court for the District of Columbia. The charges were announced by U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Seven defendants were charged with narcotics and firearm offenses: Vontate Talley, 48; Marcus Stackhouse, 37; Kevin Stackhouse, 31; Bayney Pinard Parker, 39; Michael Thomas, 50; Alonzo Weatherspoon, 56; and Dayron Wright, 27, all of Washington, D.C.
Two sets of defendants were charged in conspiracies to traffic large quantities of narcotics, and all of the defendants were charged with separate offenses of distributing narcotics or possessing narcotics with the intent to distribute them. During the execution of nine search warrants, law enforcement seized packaged narcotics for distribution, drug paraphernalia, U.S. currency, six firearms, multiple replica firearms, magazines, and a large quantity of ammunition.
Three of the seven defendants had pending narcotics and firearms charges when committing the offenses alleged in the indictments unsealed today.
“Through this coordinated law enforcement effort, we were able to remove significant quantities of drugs and firearms from the streets,” said U.S. Attorney Liu. “This investigation is another example of our determination to target drug trafficking organizations that bring crack, heroin, fentanyl, and firearms into the District and to make our neighborhoods safer.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
This case was also prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime-reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the District of Columbia, U.S. Attorney Jessie K. Liu coordinates PSN efforts in cooperation with federal, state, and local law enforcement officials.
An indictment or a complaint is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the work of those who investigated the case, including ATF and MPD. They also expressed appreciation for the assistance provided by the United States Secret Service, U.S. Marshals Service, Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland.
Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorneys Christopher Macchiaroli and Gregory Rosen of the Violent Crime and Narcotics Section; Paralegal Specialists Teesha Tobias, Kim Hall, and Candace Battle; and Legal Assistant Peter Gaboton.
Seven Felons Indicted, Dozens of Firearms Seized as Part of Investigation Targeting Criminal Gun Sales in Orange CountyRead the Press Release
SANTA ANA, California – Law enforcement has arrested six Orange County residents charged in an indictment alleging three defendants conspired to traffic more than two dozen firearms – including 12-gauge shotguns and AR-style rifles – while other defendants, including a convicted sex offender, illegally possessed firearms and ammunition.
The 11-count indictment, unsealed today, charges seven defendants with multiple federal felonies, including conspiracy to sell firearm without a license, and selling firearms without a license. The arrested defendants are scheduled to make their initial court appearances this afternoon in United States District Court in Santa Ana.
Over the course of the six-week investigation, law enforcement seized a total of 68 firearms – 30 of which were “ghost guns” or firearms that bore no serial numbers – more than 2,000 rounds of ammunition, and 1.3 pounds of methamphetamine.
According to the indictment, between August 21 and September 18, the defendants illegally possessed and some conspired to illegally sell firearms such as a .40-caliber Glock pistol, a .243-caliber Savage Arms rifle, and a Mossberg 12-gauge shotgun, among other weapons, some of which bore no serial numbers.
Pedro Javier Villalobos, 22, of Santa Ana, arranged to sell firearms to customers and eventually received a fee for brokering firearms sales, according to the indictment. The indictment further alleges that Villalobos enabled defendants Michael Rivera Delgado, 38, a.k.a. “Player,” of Anaheim, and Rosember Jiménez Jr., 29, a.k.a. “Junior,” of Santa Ana, and others to sell firearms to customers without being federally licensed.
For example, on September 3, Villalobos allegedly agreed to sell firearms to a customer, who in fact was an undercover agent. The following day at Villalobos’s home, Jiménez allegedly sold the agent a Mossberg shotgun, a Spike’s Tactical rifle, and an AR-type rifle bearing no serial number, for $4,800. That same day, Villalobos accepted $300 from the agent for brokering the sale of the three firearms from Jiménez, the indictment alleges.
In addition to the unlawful firearms dealing charges, the indictment alleges that other defendants, including Jiménez, were convicted felons in possession of firearms and ammunition. Jiménez’s criminal history includes convictions for unlawful sexual intercourse with a minor and aggravated assault on a firefighter or peace officer.
The statutory maximum penalties for unlicensed firearms dealing and being a felon in possession of firearms or ammunition is 10 years in federal prison. A conviction on a conspiracy charge carries a statutory maximum sentence of five years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Costa Mesa Police Department.
This case is being prosecuted by Assistant United States Attorney Anne C. Gannon of the Santa Ana Branch Office.
San Antonio Eastside Drug Dealer Enters Guilty Plea to Federal Drug Trafficking and Firearm ChargesRead the Press Release
In San Antonio today, 38-year-old Charles Lee Bethany admitted to distributing crack cocaine on the city’s east side, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred Milanowski, Houston Division; and, San Antonio Police Chief William McManus.
Appearing before U.S. District Judge Fred Biery, Bethany pleaded guilty to one count of possession with intent to distribute 280 grams or more of cocaine base (“crack”) and one count of being a convicted felon in possession of a firearm. By pleading guilty, Bethany admitted that from March 15, 2017, to July 26, 2017, he distributed crack cocaine from his eastside stash house in the 600 block of J Street in San Antonio.
On July 21, 2017, investigators searched the premises with a warrant and seized approximately 56 grams of cocaine powder and 56 grams of crack cocaine. Investigators also recovered video surveillance equipment. Officers of the San Antonio Police Department Repeat Offenders Project arrested Bethany on July 26, 2017. He has since remained in federal custody.
Court records also reveal information obtained by investigators that suggests Bethany may have been the intended target of a drive-by shooting in the 400 block of Spriggsdale that occurred shortly after 4:00 p.m., on July 19, 2017. That shooting was followed by another the same day, shortly before midnight in the 200 block of Hub Street, in which a 4-year-old boy was killed. Surveillance video recovered from Bethany’s stash house indicates that later that night a number of individuals appearing to be in possession of firearms left the location on J Street about 12 minutes before the shooting on Hub Street. According to the surveillance, those individuals returned to the J Street address moments after the shooting. While Bethany was not part of that group, he is see on the video possessing three firearms including an AR-15 pistol. The investigation into those shootings continues.
Bethany’s criminal history includes two felony convictions for possession of a controlled substance (2004, 2008) and one felony conviction for evading detention motor vehicle (2008), all in Bexar County, Texas.
Bethany, who faces between ten years and life in federal prison, is scheduled for sentencing on February 13, 2020, in front of Judge Biery.
The FBI, ATF and San Antonio Police Department conducted this investigation. Assistant U.S. Attorney Sarah Wannarka is prosecuting this case on behalf of the government.
Saluda Woman Sentenced to Federal Prison for Filing False Tax ReturnsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Brenda Rodgers, age 57, of Saluda, was sentenced to 25 months in federal prison after pleading guilty to filing false tax returns. Rodgers was also ordered to pay $156,536.09 in restitution to the IRS for back taxes. United States District Court Judge Timothy Cain, of Anderson, presided.
Evidence presented to the court established that from 2012 through 2016, Rodgers was an employee of a property and casualty insurance agency located in Columbia. Rodgers embezzled by writing checks from a particular client’s account to herself and forging the name of her supervisor. During the tax years 2012 through 2016, Rodgers wrote herself 325 checks totaling over $337,000. Rodgers concealed her activity by making false entries in the accounting records and on check stubs. She also removed pages from the bank statements that contained photocopies of the checks transferring funds into her bank account. By creating false entries and removing bank records, Rodgers avoided reporting taxable income associated with her embezzlement. As a result, she avoided tax payments totaling $156,536.09.
Rodgers confessed to deputies of the Richland County Sheriff’s Department, explaining that she used the money to pay bills, make car payments, and pay off her mortgage.
The United States Internal Revenue Service and the Richland County Sheriff’s Department investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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Rowan County Drug Dealers Sentenced to PrisonRead the Press Release
GREENSBORO, N.C. – Two Rowan County men were sentenced to prison on October 4, 2019, for unrelated instances of selling narcotics, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
WILLIE EARL WILLIAMS, JR., age 34, of Salisbury, North Carolina, was sentenced to 98 months’ imprisonment by the Honorable N. Carlton Tilley, Jr., in federal court in Greensboro. WILLIAMS pleaded guilty to distribution of a mixture and substance containing 5 grams or more of methamphetamine in Rowan County. In addition to the prison term he was ordered to serve a five-year term of supervised release after completing his sentence. According to documents filed in court, WILLIAMS sold methamphetamine or cocaine base (“crack”) on six occasions between May 9, 2018, and June 5, 2018, to a confidential informant and to an undercover officer.
JOSHUA DWAYNE PRUITT, age 26, of Spencer, was also sentenced by Judge Tilley in federal court in Greensboro on October 4, 2018, to 17 months’ imprisonment. PRUITT pleaded guilty to distribution of a mixture and substance containing cocaine base. In addition to the prison term he was ordered to serve a three-year term of supervised release after completing his sentence. PRUITT sold 3.32 grams of crack cocaine to an undercover agent in Salisbury on May 15, 2018.
Both cases were investigated by the Rowan County Sheriff’s Department, Salisbury Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives, in a joint operation to combat firearm and controlled substance violations within Salisbury. The cases were prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on October 8, 2019, by U.S. District Judge Roberto A. Lange.
Bernard Young, age 58, was sentenced to 18 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Young was indicted by a federal grand jury on June 11, 2019. He pled guilty on July 22, 2019.
Young was convicted of Aggravated Sexual Abuse in April 2002. As a result of this conviction, he is required to register as a sex offender for his natural life. Young failed to update his registration between March 25, 2019, and April 24, 2019.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Young was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on October 7, 2019, by U.S. District Judge Roberto A. Lange.
Jason Kimmel, Sr., age 38, was sentenced to 24 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kimmel was indicted by a federal grand jury on June 11, 2019. He pled guilty on July 23, 2019.
Kimmel was convicted of Sexual Abuse of a Minor in 2005. As a result of this conviction, he is required to register as a sex offender for his natural lifetime. Between March 25, 2019, and April 24, 2019, Kimmel, failed to properly register and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Kimmel was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on October 7, 2019, by U.S. District Judge Roberto A. Lange.
Michael Anthony Toledo, age 39, was sentenced to 4 months in federal prison, followed by 4 months home confinement, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Toledo was indicted by a federal grand jury on March 12, 2019. He pled guilty on July 22, 2019.
The conviction stemmed from an incident that occurred on April 18, 2017, when Toledo did forcibly assault and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, when Toledo repeatedly spat upon the officer while being arrested.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Toledo was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Abusive Sexual Contact was sentenced on October 7, 2019, by U.S. District Judge Roberto A. Lange.
Jesse James Leader Charge, age 24, was sentenced to 27 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Leader Charge was indicted by a federal grand jury on January 23, 2019. He pled guilty on July 15, 2019.
The conviction stemmed from an incident that occurred on January 1, 2017, in Fairground Housing in Rosebud. On that date, Leader Charge was consuming alcoholic beverages and socializing with the 15-year-old victim at her house, unbeknownst to the adults at the house. The victim was found unconscious, and Leader Charge was found squatting over the victim’s body with his hand between her thighs. He stood up and left the house when an adult came into the room and told him to leave.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Leader Charge was immediately turned over to the custody of the U.S. Marshals Service.
Romanian nationals unlawfully in United States charged in $1 million ATM skimming and cash-out schemeRead the Press Release
ATLANTA – Ovidiu Nedelcu and Ovidiusz Dragos Cordas, both citizens of Romania, have been charged in a 32-count indictment with bank fraud, access device fraud, and aggravated identity theft offenses for their roles in a nationwide conspiracy.
“The defendants are accused of making their living by stealing from Americans’ bank accounts,” said U.S. Attorney Byung J. “BJay” Pak. “They allegedly installed ATM skimming devices to steal customer data, and then used their network of conspirators to cash-out and profit from their crimes.”
“This investigation and subsequent indictment demonstrates the Secret Service’s commitment to safeguarding our nation’s critical financial infrastructure and payment systems,” said Kimberly A. Cheatle, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “These cyber criminals used a national network of co-conspirators to withdraw large sums of money from ATM machines. Our success in this case is due to the level of cooperation and information sharing throughout this investigation by all law enforcement partners.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From 2018 to 2019, the defendants, Ovidiu Nedelcu and Ovidiusz Dragos Cordas, a/k/a Dragos Ovidiusz Folea, conspired with one another and others to use account numbers and PINs stolen from bank and credit union customers in order to unlawfully withdraw money from those customer accounts. They accomplished this by conspiring with each other and others to:
- Cause surreptitious electronic devices, known as ATM “skimmers,” to be installed over ATM card slots at various locations in order to capture and record account access information from customers of numerous financial institutions;
- Cause tiny surreptitious cameras to be installed above the keypads of the ATMs with the ATM skimmers in order to visually record the key strokes as customers entered their PINs for their accounts;
- Cause stolen customer account access information recorded on the ATM skimmers to be encoded onto blank magnetic stripes on unbranded plastic cards; and
- Cause the stolen account access information—customer account numbers and PINs—to be used to unlawfully withdraw United States currency from those compromised financial institution accounts at ATMs in Georgia, and elsewhere, including Florida, Colorado, and Washington.
Ovidiu Nedelcu, 41, of Craiova, Romania, and Ovidiusz Dragos Cordas, a/k/a Dragos Ovidiusz Folea, 50, of Oradea, Romania, were indicted by a federal grand jury on September 18, 2019. Both defendants are present in the United States illegally.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Secret Service, with assistance from the DeKalb County Police Department. Assistant U.S. Attorneys John S. Ghose and Alex R. Sistla are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ringleader of $2 Million Fraudulent Check Scheme Targeting Home Improvement Stores Sentenced to 37 Months in PrisonRead the Press Release
NEWARK, N.J. – An Irvington, New Jersey, man has been sentenced to 37 months in prison for his role in a phony check scheme that stole more than $2 million in merchandise from multiple home improvement stores throughout the country, U.S. Attorney Craig Carpenito announced today.
Reginald Phillips, 56, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to commit wire fraud. Judge Hayden imposed Phillips’s sentence Oct. 9, 2019, in Newark federal court.
According to documents filed in this case and statements made in court:
Starting in December 2013 and continuing through February 2017, Phillips spearheaded a conspiracy of several individuals – four of whom have also pleaded guilty in the case – who worked together to obtain merchandise or store credit from home improvement stores along the eastern United States, including New Jersey, by purchasing items with fraudulent checks.
Phillips and his conspirators entered home improvement and other retail stores and gathered high-value items like air conditioners, hardwood flooring, and expensive home wiring. They then “purchased” the items by handing a cashier a fraudulent check with a phony name but authentic account and routing numbers or by pretending to be an authorized signatory on a store credit account that they had previously opened with a phony check.
During many of the transactions, Phillips displayed fake driver’s licenses that had been created by one of the other conspirators, which either duplicated the phony name imprinted on the fraudulent check they presented for payment or matched the name of an authorized signatory on a store credit account that they had previously opened.
In total, Phillips and his conspirators stole over $2.4 million in merchandise from various retailers in New Jersey, New York, Pennsylvania, Delaware, North Carolina, Georgia, Virginia, Connecticut, Massachusetts, and South Carolina.
In addition to the prison term, Judge Hayden sentenced Phillips to three years of supervised release.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Union Township Police Department, the Holmdel Police Department, the Passaic County Prosecutor's Office, the Totowa Police Department, and the Monroe Township Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark