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3 October 2019
Great Falls man sentenced to five years in prison for receiving child pornographyRead the Press Release
GREAT FALLS—A Great Falls man who admitted receiving child pornography on his computer was sentenced today to five years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Lothar Konrad Krauth, 81, pleaded guilty in April to receipt of child pornography.
U.S. District Judge Brian M. Morris presided. Judge Morris also ordered $9,000 restitution.
The prosecution said in court records that agents from the Great Falls Homeland Security Investigations team received a CyberTipline report in October 2018 from the National Center for Missing and Exploited Children. NCMEC reported that the user of an internet provider address in Great Falls had uploaded an image of a nude prepubescent boy. An investigation found the address belonged to Krauth. HSI and Great Falls police executed a search warrant at Krauth’s residence on Oct. 26, 2018 and seized about 20 items of electronic media, including a desktop computer, external hard drives, thumb drives and more. A search of the electronic media found thousands of images of child porn, including images of prepubescent children engaged in sexually explicit conduct.
Assistant U.S. Attorneys Tom Bartleson and Cyndee Peterson prosecuted the case, which was investigated by Homeland Security Investigations, U.S. Border Patrol and the Internet Crimes Against Children Task Force.
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Great Falls heroin trafficker sentenced to more than 11 years in prisonRead the Press Release
GREAT FALLS—A woman who admitted possessing heroin for distribution as part of a Great Falls methamphetamine and heroin distribution ring was sentenced today to 11 years and four months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Jacqueline Marie Kirkaldie, 32, of Great Falls, pleaded guilty in July to possession with intent to distribute controlled substances.
U.S. District Judge Brian M. Morris presided.
An investigation into a meth and heroin ring in Great Falls began in September 2018 by the Russell Country Drug Task force and Drug Enforcement Administration, the prosecution said in court records.
Investigators became aware that Kirkaldie redistributed meth and heroin for the group, which included co-defendants Anthony Beltran and David Awberry. Beltran has pleaded not guilty and is pending trial. Awberry has pleaded guilty and awaiting sentencing. Kirkaldie possessed with intent to distribute meth and heroin from September 2018 until April.
Prosecutors allege that Beltran had a California source for drugs and that he used numerous individuals, including Kirkaldie, to redistribute the drugs in Great Falls. A witness told law enforcement that he or she bought heroin from Kirkaldie and had seen her in possession with distributable amounts of heroin and meth. When arrested at a casino in on Jan. 5, Kirkaldie had two baggies of heroin. Another individual told law enforcement of receiving heroin from Kirkaldie. In April 2019, law enforcement seized 2,191 grams, or about 4.8 pounds, of actual methamphetamine from a home where the group stored their drugs. The amount of meth seized from the home is the equivalent of about 17,395 doses.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Drug Enforcement Administration and the Russell Country Drug 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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Fresno Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Darren Duane Coleman, 24, of Fresno, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, during a traffic stop, police officers observed Coleman reaching up in the area of the sunroof of the car that he was driving. Officers subsequently located a loaded firearm tucked in a pocket behind the car’s sunroof. Coleman is a convicted felon and prohibited from possessing firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, and the California Highway Patrol. Assistant U.S. Attorney Katherine Schuh is prosecuting the case.
If convicted, Coleman 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.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fourth Parent Sentenced to Prison in College Admissions CaseRead the Press Release
BOSTON – The former co-chairman of a global law firm became the fourth parent to be sentenced to prison in connection with his involvement in the college admissions case.
Gordon Caplan, 53, of Greenwich, Conn., was sentenced today by U.S. District Judge Indira Talwani to one month in prison, one year of supervised release, ordered to complete 250 hours of community service and to pay a fine of $50,000. In May 2019, Caplan pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of eight months in prison, one year of supervised release and a fine of $40,000.
Beginning in 2018, Caplan conspired with William “Rick” Singer and others to have his daughter’s college entrance exam corrected, thereby fraudulently inflating the score. During a June 2018 phone call, Caplan and Singer discussed the scheme and the cost. Over the next several months, Caplan took steps to facilitate the scheme, including securing extended time for his daughter to take the ACT and arranging for her to take the exam at a test center in West Hollywood that Singer “controlled” through the center’s corrupt administrator. During a phone call with Singer that was intercepted pursuant to a Court-authorized wiretap, Caplan noted that he was “not worried about the moral issues here.” Caplan ultimately made payments totaling $75,000 to Singer’s sham charity, the Key Worldwide Foundation, to pay for the scheme.
Co-defendants Felicity Huffman, Devin Sloane, and Stephen Semprevivo were previously sentenced to two weeks, four months, and four months in prison, respectively.
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.
Four People Charged, Fifth Pleads Guilty, in $4.5 Million Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Four people, including two doctors, are scheduled to appear in court today on charges they defrauded New Jersey state health benefits programs and other insurers of $4.5 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced. A fifth individual, a physician’s assistant, has pleaded guilty to participating in the health care fraud conspiracy.
Steven Monaco, 37, of Sewell, New Jersey; Daniel Oswari M.D., 48, of Bordentown, New Jersey; Michael Goldis D.O., of Mt. Laurel, New Jersey; and Aaron Jones, 25, of Willingboro, New Jersey, were all charged in a 33-count indictment with conspiracy to commit health care fraud and wire fraud. Monaco, Oswari, and Goldis also were each charged with individual acts of health care fraud and wire fraud, and Jones was charged with 10 false statement counts. Monaco and Oswari were charged with a conspiracy involving kickbacks for referrals for laboratory work.
The cases are assigned to U.S. District Judge Robert B. Kugler in Camden. The indicted defendants are expected to appear today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to the indictment:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2014 through April 2016, the conspirators recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from a Louisiana pharmacy, identified in the indictment as the “Compounding Pharmacy 1,” and a Pennsylvania pharmacy, identified in the indictment as “Compounding Pharmacy 2.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the indictment as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, and other insurance plans. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey or the other insurance plans for the amounts paid.
Richard Zappala, who previously pleaded guilty to conspiracy to commit health care fraud, had agreements to receive a percentage of the amount that Compounding Pharmacies 1 and 2 received for prescriptions obtained by Zappala and his associates. Zappala had Monaco and other conspirators find people who would agree to receive prescriptions for compounded medications. Zappala’s sentencing is scheduled for Nov. 13, 2019.
The conspirators recruited public employees and others covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from Compounding Pharmacies 1 and 2 without any evaluation or determination by a medical professional that the medications were medically necessary. The defendants paid individuals to agree to receive prescription medications from the Compounding Pharmacy. The defendants completed prescriptions for these individuals and selected the most expensive medications with the highest number of refills to obtain the highest possible insurance reimbursement. The conspirators would have prescriptions signed by a doctor or medical professional who did not examine the patients or determine that the medications were medically necessary. Monaco paid kickbacks to Dr. Oswari and another medical professional to reward them for signing prescriptions, and Zappala paid Dr. Goldis for signing prescriptions. Jones, who was a medical assistant in Goldis’ office, also forged Goldis’ signature on other prescriptions.
The completed prescriptions were faxed to the Compounding Pharmacies, which filled the prescriptions and billed the Pharmacy Benefits Administrator. The Pharmacy Benefits Administrator paid Compounding Pharmacies 1 and 2 over $4.5 million for compounded medications obtained by the conspiracy. Compounding Pharmacies 1 and 2 paid Zappala a percentage of that amount, which he used to pay members of the conspiracy.
The indictment charges Monaco and Oswari with a second conspiracy in which Monaco caused Oswari to receive kickbacks for referring laboratory work and signing prescriptions. Monaco, who worked for a blood and urine testing lab, arranged for his employer to hire Oswari’s medical assistant as a phlebotomist, while continuing to do medical assistant work for Oswari. In return for receiving the free services of an employee for over two years, Oswari referred his blood and urine samples to Monaco’s employer for testing, and Monaco received a commission from the insurance payments made for tests run on those samples. It was also part of this conspiracy that Monaco paid kickbacks to Oswari for writing prescriptions for compounded medications and received money from the resulting insurance payments.
The health care fraud and wire fraud conspiracy count with which all indicted defendants are charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The kickbacks conspiracy count and the false statement counts each carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense
On Oct. 2, Jason Chacker, 36, of Feasterville, Pennsylvania, a physician’s assistant who practiced in Mercer County, pleaded guilty before Judge Kugler to conspiracy to commit health care fraud. Chacker admitted that he and his conspirators recruited individuals who had prescription drug benefits administered by the Pharmacy Benefits Administrator that covered compounded medications. At the request of a conspirator, Chacker signed prescriptions for individuals without ever meeting them or evaluating whether they needed the compounded medications. He also paid one individual to receive compounded medications. Chacker received $3,200 and other valuable items from a conspirator for his role. The Pharmacy Benefits Administrator paid $365,454 for prescriptions fraudulently obtained by Chacker and his conspirators.
Chacker faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 5, 2020.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the indictment and guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Monaco: Gerard Egan Esq., Exton, Pennsylvania
Daniel Oswari: Scott Krasny Esq., West Trenton, New Jersey
Michael Goldis: Ralph Kramer Esq., Haddon Heights, New Jersey
Aaron Jones: Christopher O’Malley Esq., Camden, New Jersey
Jason Chacker: Teri Lodge Esq., Marlton, New JerseyFour Louisiana Businessmen Plead Guilty to Conspiracy to Commit Bribery of Former MDOC Commissioner and Kemper County SheriffRead the Press Release
Jackson, Miss. – Four Louisiana businessmen pled guilty yesterday before U.S. District Judge Henry Wingate to conspiring to pay bribes to former Mississippi Department of Corrections (MDOC) Commissioner Christopher B. Epps and current Kemper County Sheriff James Moore in exchange for receiving contracts involving MDOC and a regional detention facility located in Kemper County, Mississippi, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
Michael LeBlanc, Sr., 71, of Baton Rouge, Louisiana, Tawasky Ventroy, 60, of Opelousas, Louisiana, Michael LeBlanc, Jr., 42, of Prairieville, Louisiana, and Jacque Jackson, 51, of LaPlace, Louisiana, attempted to bribe former Commissioner Epps and Sheriff Moore who were both assisting the FBI at the time of the investigation. The four men paid the bribes in an attempt to secure lucrative contracts in commissary and inmate calling services. The men were associated with Brothers Commissary Services and American Phone Systems, both located in Louisiana but operating in the state of Mississippi.
"Mississippians are sick and tired of corruption, and those who bribe our public officials will soon find themselves in a federal indictment. This office has made fighting public corruption a priority, and we will continue working with all of our partners to end corruption throughout our state," said U.S. Attorney Hurst.
“I want to thank Sheriff Moore who made the conscious effort to help the FBI in combating public corruption,” said FBI Special Agent in Charge Sutphin. “Corruption of public officials at any level is something that we take very seriously and is one of our top criminal priorities.”
On October 16, 2014, LeBlanc, Sr. spoke with a confidential informant about his intent to put something in the hands of former Commissioner Epps that would help LeBlanc, Sr. obtain MDOC and County contracts. During the conversation, he stated that he would let his business partner in American Phone Systems, Tawasky Ventroy, meet with former Commissioner Epps because they were both African Americans. On October 21, 2014, Tawaksy Ventroy traveled to Jackson and met former Commissioner Epps in his office. Ventroy provided former Commissioner Epps with a $2,000 cash bribe. The payment was to influence former Commissioner Epps into helping American Phone Systems receive contracts in state corrections facilities.
During this same time, LeBlanc, Jr. and his business partner, Jackson, were trying to secure contracts for Brother’s Commissary and American Phone Systems in Kemper County. On December 8, 2019, while attending the Mississippi Sheriff’s Conference, LeBlanc, Jr. retrieved $2,000 worth of casino chips from a table game and provided the chips to Jackson. At Jackson’s request, Sheriff Moore met Jackson in the men’s restroom of the casino in Biloxi, Mississippi. Jackson gave Sheriff Moore the casino chips to influence him into helping Jackson and LeBlanc, Jr. secure the contracts for commissary and inmate calling services in Kemper County. Jackson told Sheriff Moore that he would provide another $1,000 once the contract was awarded. On January 16, 2015, when confronted by the FBI, Jackson admitted to passing the $2,000 in casino chips to Sheriff Moore in exchange for his assistance with securing the lucrative contracts.
The defendants will be sentenced by Judge Wingate on February 10, 2020 at 10:00 a.m. They each face a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
The case was investigated by the FBI and prosecuted by First Assistant United States Attorney Darren LaMarca and Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Founder of Meridian Capital Asset Management Pleads Guilty in Manhattan Federal Court to Conspiring to Commit Securities and Wire FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOHN GERACI pled guilty in Manhattan federal court today to conspiring to commit securities and wire fraud. GERACI’s plea stems from his participation in a scheme to defraud clients of his company, Meridian Capital Asset Management. GERACI caused two clients (“Victim-1” and “Victim-2”) to invest in a hedge fund called the Meridian Matrix Long Short Fund (the “Meridian Matrix Fund”). Between in or about December 2015 and November 2016, GERACI provided fictitious account statements and updates to Victim-1 and Victim-2, telling them that their investment was worth millions when, in reality, GERACI knew that large portions of it had been stolen by the Meridian Matrix Fund’s administrator. GERACI eventually liquidated the Meridian Matrix Fund and misappropriated significant portions of the remaining funds. Although he had recovered over $1 million of Victim-1 and Victim-2’s investment, GERACI falsely told them that their entire investment had been lost, and improperly used their money to pay his own personal and business expenses.
GERACI was arrested on August 7, 2018, and pled guilty today before United States District Judge Alison J. Nathan.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, John Geraci lied to his clients about how much of their money was lost in investments with Nicholas Mitsakos. What wasn’t actually lost to Mitsakos was stolen by Geraci. Now Geraci, like Mitsakos, is a convicted felon.”
According to the Complaint, the Indictment, and other statements made in open court:
JOHN GERACI was the principal and founder of Meridian Capital Asset Management. In or about February 2015, GERACI was introduced to another individual, Nicholas Mitsakos, who purported to operate a hedge fund called Matrix Capital (“Matrix”). Mitsakos told GERACI that Matrix had tens of millions of dollars under management and had achieved annual returns between 19.4% and 66.3% from 2012 to 2014. GERACI and Mitsakos subsequently entered into an arrangement whereby GERACI would raise money for Mitsakos, Mitsakos would manage that money through a new vehicle, the Meridian Matrix Fund, and GERACI and Mitsakos would then split any fees that the Meridian Matrix Fund generated. As part of this arrangement, GERACI solicited Victim-1 and Victim-2 to invest approximately $2 million in the Meridian Matrix Fund, in large part by relying on Mitsakos’s claims about his supposed fund’s assets under management and performance returns.
In or about December 2015, however, GERACI learned that Mitsakos had only invested approximately $1.2 million of Victim-1 and Victim-2’s investment, and had misappropriated significant portions of the remaining money. GERACI also learned that Mitsakos never had any actual assets under management, and that his performance returns were accordingly fictitious and misleading. Nonetheless, GERACI never told Victim-1 or Victim-2 that their investment was in jeopardy or had been solicited with misleading information. To the contrary, GERACI sent Victim-1 and Victim-2 updates that hid Mitsaskos’s misappropriation and falsely claimed that their investment had appreciated. GERACI sent these fictitious updates even after GERACI had liquidated the Meridian Matrix Fund’s trading positions in or about June 2016.
In or about August 2016, Mitsakos was charged in this District with securities fraud and other offenses. In or about September 2016, GERACI changed course: instead of providing fictitious account updates to Victim-1 and Victim-2, GERACI told them, in substance and in part, that their entire investment had been wiped out through Mitsakos’s fraud. GERACI did this even though he had ultimately received approximately $1.1 million of Victim-1 and Victim-2’s investment back from Mitsakos after liquidating the Meridian Matrix Fund’s trading positions. Rather than returning this amount to Victim-1 and Victim-2, GERACI used it to pay for his own personal and business expenses, including, for example, payments on a BMW automobile, a gym membership, gas, groceries, travel expenses, and his cellphone bill.
In addition to sending false account updates to Victim-1 and Victim-2 even after learning that Mitsakos had lied about his fund’s assets and performance and that Mitsakos had stolen significant portions of Victim-1 and Victim-2’s investment, GERACI continued to try to raise money for an investment related to Meridian Matrix Fund from others. In attempting to do so, moreover, GERACI relied on the same representations about Matrix’s assets and performance that he knew to be false.
Mitsakos pled guilty to conspiring to commit securities fraud and wire fraud on May 25, 2017, and on November 7, 2017, was sentenced to 30 months in prison by the Honorable Denny Chin, a judge on the United States Court of Appeals for the Second Circuit who was sitting by designation in the Southern District of New York.
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GERACI, 62, pled guilty to one count of conspiring to commit securities and wire fraud. This charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
GERACI will be sentenced on January 23, 2020.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Jared Lenow and Drew Skinner are in charge of the prosecution.
Former mayor pro tem admits to child pornography chargesRead the Press Release
HOUSTON – A 68-year-old resident of Seabrook has entered a guilty plea to receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Ocal John Miller is a former law enforcement officer, having served as chief of police in Martinsville, West Virginia; and city councilman and mayor pro tem for Seabrook.
Miller came to the attention of law enforcement in June 2016 when the National Center for Missing and Exploited Children (NCMEC) sent multiple cybertips to the Houston Metro Internet Crimes Against Children Task Force.
The investigation revealed Miller was using Skype to receive and distribute child pornography images to others via the internet. Miller also used Dropbox and Kik Messenger to obtain and store child pornography. Based on information gathered during the investigation, authorities executed a federal search warrant for Miller’s home in Seabrook March 30, 2017. At that time, they seized a computer, iPhone and several digital storage devices. Forensic examination resulted in the discovery of more than 1,300 images and 1,000 videos containing child pornography.
U.S. District Judge Alfred Bennett accepted the plea today and set sentencing for Dec. 12. At that time, Miller faces a minimum of five and up to 20 years for receipt as well as a maximum of 10 years for possessing it. Miller will also have to register as a sex offender and abide by special conditions limiting his use of the internet and interactions with persons under the age of 18. He also faces up to a $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and police departments in Webster and Pearland conducted the investigation as part of the Houston Metro Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Former Parkersburg Physician Pleads Guilty for His Role in Hope Clinic ConspiracyRead the Press Release
CHARLESTON, W.Va. – A former Parkersburg physician pled guilty to a drug conspiracy, announced United States Attorney Mike Stuart. Paul W. Burke, 68, pled guilty to conspiracy to distribute controlled substances not for legitimate medical purposes in the usual course of professional medical practice and beyond the bounds of medical practice.
Burke worked at the Charleston HOPE Clinic, a chronic pain clinic, from April 2014 through September 2014. Burke admitted that the owner of the HOPE Clinic recruited him to work there despite Burke being primarily an emergency room doctor and surgeon with little experience in dealing with chronic pain patients and no training in prescribing schedule II narcotics for the treatment of chronic pain. The owner explained to Burke that narcotics auditors employed by PPPFD who were “former DEA Agents,” would screen customers for abuse, addiction, and diversion prior to the customer ever seeing him. In approximately April 2014, Burke began working at the Charleston HOPE Clinic. Burke understood at the time he was contracted that the purpose of HOPE Clinic was to provide pain customers with oral opiate pain medicine. As the practice manager and owner both knew, however, Burke had no background or specialized training in chronic pain management.
Burk admitted that when he started working at the HOPE Clinic, it became apparent that some of the customers were not getting properly evaluated prior to the doctors writing them prescriptions for opioids, that the customers’ files were poorly kept and had little relevant medical information in them. Burk admitted that many of the patients came to the HOPE Clinic from out of state, and most customers paid in cash. He also admitted that he often received a bonus on top of his hourly pay that was clearly based on the number of paying customers at the Clinic. Despite all of these red flags, Burke admitted that he continued to work at the HOPE Clinic and continued to write customers prescriptions for Schedule II narcotics. For example, Burke admitted that he and other doctors at HOPE Clinic should not have prescribed Schedule II opioid medications to customer S.W. Doctors at the HOPE Clinic, including Burke, prescribed oxycodone to S.W., and Burke admitted those prescriptions were not for a legitimate medical reason in the usual course of professional practice and were beyond the bounds of medical practice. Between December 2012 and September 2014, eight different doctors at the HOPE Clinic wrote her prescriptions for a total of 720 oxycodone 10 mg pills and 2,670 oxycodone 15 mg pills. During that less than two-year period, S.W. took eight drug tests and failed every single one. Burke admitted to only recognizing that S.W. failed three drug tests. Between December 2012 and September 2014, no one at the HOPE Clinic discussed drug addiction, drug abuse, drug treatment or drug diversion with S.W. On August 25, 2014, despite the clear evidence of abuse and diversion, Burke admitted to writing S.W. a prescription for 150 oxycodone 15 mg and 60 Percocet 10 mg.
“As I’ve said many times, medical professionals who prey on individuals struggling with substance use disorder to line their own pockets will be held accountable,” said United States Attorney Mike Stuart. “A drug dealer in a lab coat is still just a drug dealer. We will work with our law enforcement partners to remove them from our communities to protect West Virginia families.”
“Patients struggling with opioid addiction are someone’s parents, children, friends or loved ones, and it’s our responsibility to protect them from bad actors who seek to profit from their struggle” said Maureen R. Dixon, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General-Philadelphia Regional Office (HHS-OIG). “Today’s conviction shows we are holding bad actors accountable and working to prevent further harm to patients.”
“Distributing addictive opioids for illegitimate purposes poses a serious threat to patients and public health and will not be tolerated,” said Mark S. McCormack, Special Agent in Charge, U.S. Food and Drug Administration's Office of Criminal Investigations, Metro Washington Field Office. “We will continue to pursue and bring to justice unscrupulous actors who unlawfully distribute these dangerous drugs to the American public.”
Burke faces up to five years in prison when sentenced on January 30, 2020.
The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General (OIG), the Internal Revenue Service – Criminal Investigations, the Food and Drug Administration - Office of Criminal Investigations, the Federal Bureau of Investigation, the West Virginia State Police, the Kentucky State Police, the Beckley Police Department, the Virginia State Police, the Charleston Police Department, and the Drug Enforcement Administration. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Monica D. Coleman and Steven I. Loew are handling the prosecution.
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Former New Haven Tax Preparer Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DEVON WILLIAMS, 30, of Atlanta, Georgia, pleaded guilty yesterday before U.S. District Judge Janet C. Hall in New Haven to preparing false tax returns
According to court documents and statements made in court, Williams formerly owned and operated Perfect Preparers, LLC, a tax preparation business based in New Haven. Between approximately 2014 and 2017, Williams prepared numerous federal tax returns for clients that contained false deductions, including deductions for unreimbursed employee expenses, charitable donations, and mortgage interest. Some returns contained false Schedule C (sole proprietorship business) information.
Williams pleaded guilty to one count of aiding and assisting the preparation of a false tax return, an offense that carries a maximum term of imprisonment of three years.
In pleading guilty, Williams agreed that losses suffered by the IRS as a result of his fraud totaled more than $550,000.
Judge Hall scheduled sentencing for December 27, 2019. Williams is released on a $150,000 bond pending sentencing.
As a result of Williams’ fraudulent conduct, many of his clients’ filed tax returns will need to be amended. Williams’ clients are required to resolve their own tax liability with the IRS.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Former KPMG Executive Pleads Guilty to Fraudulent Scheme to Steal Confidential PCAOB Information and Use That Information to Fraudulently Improve KPMG Inspection ResultsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID BRITT, a former KPMG partner who was the co-head of the Banking and Capital Markets Group within the audit group of KPMG’s Department of Professional Practice (“DPP”), pled guilty today to participating in a scheme to defraud the PCAOB by obtaining, disseminating, and using confidential lists of which KPMG audits the PCAOB would be reviewing so that KPMG could improve its performance in PCAOB inspections. BRITT pled guilty to one count of conspiracy to commit wire fraud before the Honorable J. Paul Oetken.
Manhattan U.S. Attorney Geoffrey S. Berman said: “David Britt, a former KPMG partner, admitted today to obtaining confidential lists that contained the information on which KPMG audits would be reviewed by the PCAOB. Using the playbook he illicitly acquired, Britt used that information to improve the results his of firm’s audits. Independent reviews of accounting firm audits exist to ensure their integrity and accuracy. David Britt corrupted that process and now faces time in federal prison.”
According to the allegations contained in the Indictment filed against BRITT and statements made in related court proceedings, including the trial of co-defendants David Middendorf and Jeffrey Wada:
The PCAOB is a nonprofit corporation overseen by the SEC that inspects the audit work performed by registered accounting firms with respect to the financial statements of publicly traded companies. The PCAOB inspects the largest U.S. accounting firms on an annual basis. As part of the inspection process, the PCAOB chooses a selection of audits performed by the accounting firm for a closer review. Until shortly before an inspection occurs, the PCAOB does not disclose which audits are being inspected, or the focus areas for those inspections, because it wants to ensure that an auditor does not perform additional work or modify its work papers in anticipation of an inspection. Following the completion of an inspection, the PCAOB issues an Inspection Report containing any negative findings or “comments” with respect to both the specific audits reviewed and the accounting firm more generally.
KPMG is one of the largest accounting firms in the world. In recent years, KPMG fared poorly in PCAOB inspections, and in 2014 received approximately twice as many comments as its competitor firms. By at least in or about 2015, KPMG was engaged in efforts to improve its performance in PCAOB inspections, including but not limited to recruiting and hiring former PCAOB personnel, including Brian Sweet. At the time, BRITT was a partner in DPP, which was broadly responsible for the quality of KPMG’s audits and KPMG’s performance in PCAOB inspections.
KPMG’s efforts to improve inspection results, however, were not limited to legitimate means. Instead, between 2015 and 2017, BRITT, David Middendorf, Thomas Whittle, Cynthia Holder, Brian Sweet, and Jeffrey Wada worked to illicitly acquire valuable confidential PCAOB information concerning which KPMG audits would be inspected, in an effort to game the system and improve inspection results. For example, during Sweet’s first week of employment at KPMG in 2015, BRITT, Middendorf, and Whittle began asking Sweet for confidential PCAOB information about which KPMG audits would be inspected by the PCAOB that year.
In March 2016, Holder obtained the PCAOB’s confidential 2016 inspection selections for KPMG from Wada, who was still working at the PCAOB but who had recently been passed over for a promotion. Wada – who was not responsible for KPMG inspections at the PCAOB– accessed and stole valuable confidential information from the PCAOB and passed it on to Holder. Holder, in turn, provided the 2016 inspection selections to Sweet, who passed them to Middendorf, Whittle, and BRITT. Middendorf, Whittle, BRITT, and Sweet then agreed to launch a stealth program to “re-review” the audits that had been selected. In order to cover up their illicit conduct, BRITT gave other KPMG engagement partners a false explanation for the re-reviews. The stealth re-review program allowed KPMG to double-check its audit work, strengthen its work papers, and, in some cases, identify deficiencies or perform new audit work that had not been done during the live audit.
In January 2017, Wada, who had again been passed over for promotion at the PCAOB, again stole valuable confidential PCAOB information, misappropriating a preliminary list of confidential 2017 inspection selections for KPMG audits and passing it on to Holder. At the same time, Wada provided Holder with his resume and sought her assistance in helping him to acquire employment at KPMG. Sweet shared the preliminary inspection selections provided by Wada with Whittle and BRITT, while noting that the information was only preliminary. Whittle’s response was to ask Sweet to confirm that they would get the final list as well.
In February 2017, Wada texted Holder saying “I have the grocery list. . . . All the things you’ll need for this year.” Wada then spoke to Holder and provided her with the full confidential 2017 final inspection selections. Holder again shared the stolen information with Sweet, who shared it with Middendorf, Whittle, and BRITT, so that it could be acted upon to improve the audits on the list.
In 2017, a KPMG partner who received early notice that her engagement was on the confidential 2017 inspection list reported the matter, and it was ultimately reported to KPMG’s Office of General Counsel.
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DAVID BRITT, 56, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for May 8, 2020 before the Honorable J. Paul Oetken.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and also thanked the Securities and Exchange Commission, which has brought an administrative proceeding against BRITT.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes, Margaret Graham, Martin Bell, and Rebecca Mermelstein are in charge of the prosecution.
Former Assisted Living Facility Employee Accused of Embezzling from an Assisted Living Facility ResidentRead the Press Release
BIRMINGHAM – A four-count information filed today in U.S. District Court charges a former Oak Landing Assisted Living Facility employee with embezzling money and assets from a former resident at Oak Landing, announced U.S. Attorney Jay E. Town, Special Agent in Charge Patrick M. Davis, United States Secret Service, Special Agent in Charge Rod Owens, Social Security Administration Office of the Inspector General and Special Agent in Charge Thomas J. Holloman, III, Internal Revenue Service Criminal Investigation.
Lisa Talton Wells Daugherty, 52, of Rainbow City, a former Unit Coordinator at Oak Landing Assisted Living Facility in Atalla, Alabama is charged with one count each of wire fraud, money laundering, filing a false tax return, and theft of government property. The information alleges that while Daugherty was the Unit Coordinator at Oak Landing Assisted Living Facility, she obtained power of attorney from the victim. Daugherty then arranged for the victim to become a resident of Oak Landing. Beginning in January 2017, after the victim became a resident of Oak Landing, Daugherty used the power of attorney to gain access to the victim's assets. Daugherty subsequently transferred the victim's assets to herself and purchased a primary residence, multiple vacations homes, automobiles, and paid her ordinary living expenses. In addition, Daugherty is charged with embezzling the victim's Social Security benefits and filing a false tax return. The information seeks forfeiture of a number of assets seized from Daugherty, including cash and automobiles.
“Elder abuse cases like this all too often go unreported and unchecked.” Town said. “The dedication and hard work of the agents investigating this case assures the people of Alabama that one such abuser will spend time as a resident of the federal prison system. In addition, the assets seized will begin to help restore some of the losses the victim sustained.”
“The U.S. Secret Service remains steadfast in its resolve to bring those who would take advantage of the elderly for their own financial gain to justice,” Davis said. “This case highlights the extent that some individuals will go to financially exploit those who are among the most vulnerable in our community. Without the intervention of the U.S. Secret Service, these individuals would have been able to steal millions of dollars, collectibles, personal effects, and property from the victim.”
“Social Security benefits are a lifeline to millions of Americans in retirement. We are committed to pursuing those who misuse these benefits and victimize some of our most vulnerable citizens,” Owens said. “We will continue to work with our law enforcement partners and the U.S. Attorney's Office to protect elderly and disabled Americans from this type of fraud.”
"Elder fraud is a fast-growing problem in our communities as it disproportionally affects seniors,” Holloman said. “Individuals who seek to exploit our elderly through financial fraud schemes involving trickery, deception and outright theft deserve the wrath of all Americans. IRS Criminal Investigation and all of its partners will remain vigilant in identifying, investigating and seeking prosecuting of those individuals who seek to willfully defraud our most vulnerable citizens.”
The maximum penalties for the charged crimes include the following: Wire Fraud, 20 years and a fine of not more than $250,000 or twice the gross gain; Money Laundering, 10 years and a fine of not more than $250,000 or twice the amount of criminally derived property involved in the transaction; Filing a False Tax Return, 3 years and a fine of not more than $100,000; and Theft of Government Property, 10 years and a fine of not more than $250,000.
The United States Secret Service, Social Security Administration Office of Inspector General, and Internal Revenue Service Criminal Investigation investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
Florida Woman Pleads Guilty to Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kimberly Dumbleton, 47, of Casselberry, FL, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to distribute heroin and fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that between 2016 and December of 2018, the defendant conspired with others to sell heroin and fentanyl to customers at 774 Smith Street in Rochester, NY.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and Rochester Police Department, under the direction of Chief La’Ron Singletary.
Sentencing is scheduled for January 10, 2020, at 10:00 a.m. before Judge Geraci.
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Florida Man Sentenced to over 12 Years for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Justin Scott Hunt (31, Tampa) to 12 years and 8 months in federal prison for attempting to entice a minor to engage in sexual activity and attempting to transfer obscene material to a minor.
A jury found Hunt guilty on March 21, 2019.
According to court documents, Hunt engaged in six months of online conversation with someone he believed to be a small child and the child’s mother. In reality, he was talking to an undercover agent. On numerous occasions, Hunt requested to meet the child and described, in graphic detail, the sex acts that he planned to engage in with the child.
“This predator intended to rape a young child,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs. “Instead, he was stopped in his tracks by HSI special agents and will now be held accountable for his crimes.”
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Candace Garcia Rich.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fentanyl Distributor who Used the Dark Web and Crypto Currency in Furtherance of his Criminal Enterprise Sentenced to 30 Years in Federal PrisonRead the Press Release
In what is believed to be the first fentanyl distribution case using the dark web and crypto currency in the Southwest Organized Crime Drug Enforcement Task Force (OCDETF) Region, a federal judge in San Antonio today sentenced 30-year-old Alaa Mohammed Allawi to 30 years in federal prison for distributing approximately 245 kilograms of fentanyl, cocaine, methamphetamine, oxycodone and Xanax. The distribution of fentanyl-laced oxycodone pills, through the use of the dark web and crypto currency, resulted in the overdose death of a U.S. Marine stationed at Camp Lejeune, North Carolina, and serious bodily injury to two Grand Forks, North Dakota, residents.
That announcement was made today by U.S. Attorney John F. Bash, DEA Special Agent in Charge Will Glaspy, Houston Division; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office; Naval Criminal Investigative Service Special Agent in Charge Charles Humenansky, Carolinas Field Office; San Antonio Police Chief William McManus; and, University of Texas at San Antonio Police Chief Gerald Lewis, Jr.
In addition to the prison term, Senior U.S. District Judge David A. Ezra entered a $14.32 million money judgment against Allawi based on his online dark net sales profit. Judge Ezra also ordered that Allawi forfeit to the government his San Antonio residence, valued at approximately $270K; five firearms including an AR style assault rifle; approximately $28K in U.S. currency; more than $21K in crypto currency, an assortment of jewelry valued at over $31K, four (4) vehicles including a 2013 Maserati Gran Turismo, and any and all rights in a “DRNK coffee + tea” franchise (in California).
“The United States welcomed Allawi into our country from war-torn Iraq in 2012. But instead of taking advantage of the many opportunities this country affords, he decided to make money by peddling a deadly narcotic to Americans in the grips of addiction,” said U.S. Attorney Bash. “This case illustrates many of the emerging threats that law enforcement is confronting. Allawi and his co-conspirators manufactured and distributed oxycodone laced with deadly fentanyl – over 350,000 such pills – to people suffering from opioid addiction, targeting a college campus here in San Antonio. At least one victim – a United States Marine – died from a fentanyl overdose, and at least two others suffered non-fatal overdoses. The co-conspirators attempted to conceal their activities by operating through the dark web and using seven different crypto-currencies. I am proud of our office and the law enforcement partners who uncovered and destroyed this conspiracy. Thirty years in federal prison is a just sentence for this despicable conduct.”
On June 21, 2019, Allawi pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl resulting in death and serious bodily injury, one count of possessing a firearm in furtherance of a drug trafficking crime and one count of conspiracy to commit money laundering.
According to records, Allawi arrived in the U.S. from Iraq in 2012 on a SQ1 visa granted to him based on his service as an interpreter for the Department of Defense while in Iraq.
This investigation began in 2015, when the San Antonio Police Department and the University of Texas at San Antonio (UTSA) Police Department began looking into a surge in various prescription pills found on the campus and in the student housing of UTSA. Allawi was subsequently identified as the manufacturer and supplier of the pills. By pleading guilty, Allawi admitted that beginning in 2015, he purchased fentanyl and industrial size pill presses from the dark net website called AlphaBay. Allawi also used AlphaBay to sell his pills which were laced with fentanyl or methamphetamine. Allawi accepted seven different crypto currencies, such as Bitcoin and Ethereum, as payment for the pills. AlphaBay has been subsequently shut down by law enforcement.
There are a total of eight (8) defendants in this federal indictment. Three, including Allawi, have been sentenced. Five have entered guilty pleas and are awaiting sentencing. A 9th defendant, Kunal Kalra, age 25 of Los Angeles, is charged by an Information pending in the Central District of California with conspiracy to launder monetary instruments. Allawi laundered his digital currency through Kalra. Kalra and Allawi both set up sham businesses as fronts to transfer the digital currency into U.S. currency, and vice versa. In so doing, Allawi used his illegal proceeds to purchase interest in a business, vehicles, residences, and jewelry.
On May 17, 2017, authorities executed a search warrant at Allawi’s stash house in Fort Bend County and seized ½ kilogram of fentanyl powder, ½ kilogram of crystal methamphetamine, ½ kilogram of powder cocaine, 10 kilograms of Hydrocodone pills laced with fentanyl, four kilograms of Adderall pills laced with methamphetamine, five kilograms of Xanax tablets, multiple industrial-size pill presses and four firearms. The total number of pills distributed on the dark web by Allawi during his scheme is estimated to be around 850,000, including:
Oxycodone laced with fentanyl 359,553 pills Weight 35.9 kilograms
Adderall laced with methamphetamine 342,551 pills Weight 173.6 kilograms
Xanax 45,395 pills Weight 32.36 kilograms“Today’s sentencing of Allawi is an indication of the sophistication and callousness with which Allawi conducted his illegal drug activities. From his use of the dark web, to his clandestine manufacturing of counterfeit pills laced with fentanyl, to his drug sales targeting college students, Allawi operated with little concern for the people in our communities,” said DEA Special Agent in Charge Glaspy.
Regarding the overdose death, NCIS Special Agent in Charge Humenansky noted that fentanyl-laced pills sold by Allawi were purchased using the dark web by Marine Sergeant Anthony P. Tognietti, in coordination with Marine Corporal Marcos Jamie Villegas; both of whom were stationed at Camp Lejeune, North Carolina. During a party in 2017, Villegas gave a fentanyl-laced pill to 20-year-old Corporal Mark M. Mambulao, who died shortly after consuming it. Villegas was kicked out of the Marine Corps on Tuesday and was arraigned yesterday in federal court in the Raleigh Division of the Eastern District North Carolina, for distributing a quantity of pills containing oxycodone and fentanyl, and aiding and abetting. Sgt. Tognietti was arraigned on the same charges in April of this year.
“This case underscores the value of law enforcement agencies working together. The U.S. Postal Inspection Service (USPIS), and the Drug Enforcement Administration (DEA) were actively investigating Allawi when NCIS made them aware of the death of Corporal Mambulao. The subsequent joint investigation by DEA, USPIS and NCIS linked the pills purchased by Villegas to Allawi, which ultimately resulted in the charge of conspiracy to possess with intent to distribute 400 grams or more of fentanyl resulting in death or serious bodily injury, and today’s stiff 30-year sentence for Allawi,” stated NCIS Special Agent in Charge Humenansky.
“Opioids such as fentanyl are a public health crisis that have taken countless lives and destroyed many more,” said U.S. Postal Inspector in Charge Gonzalez. “Postal Inspectors have always made it their mission to protect the public and the U.S. Postal Service from drug traffickers who try to use the mail to distribute their poison. The sentence handed down today should serve as a reminder to other perpetrators engaged in this type of criminal activity that we will continue to work closely with all of our law enforcement partners to ensure they are brought to justice.”
“Today’s sentencing of Alaa Allawi for his role in the distribution of illegal drugs laced with deadly fentanyl and money laundering of the illegal proceeds from his operation is a victory for the American public and a defeat to drug traffickers everywhere,” said IRS Criminal Investigation Special Agent in Charge Goss. “The Special Agents of IRS Criminal Investigation continue in their mission to disrupt the flow of ill-gotten gains that is the life-blood for these criminals.”
Agents and officers with the DEA, U.S. Postal Inspection Service, IRS Criminal Investigation, Naval Criminal Investigation Service (NCIS), San Antonio Police Department and the University of Texas at San Antonio Police Department conducted this OCDETF investigation. Assistant U.S. Attorney Sarah Wannarka is prosecuting this case on behalf of the government. Mr. Bash extends his appreciation to the U.S. Attorney’s Offices in the Eastern District of North Carolina, District of North Dakota and the Central District of California for their cooperation with this prosecution.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
Federal charges are not considered as evidence of guilt. The defendants are innocent until proven guilty in a court of law.
Fentanyl Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Christopher Hurd, 33, of Harrington, was sentenced today by the U.S. District Court Chief Judge Leonard P. Stark to 10 years in prison for his role in conspiracy to distribute furanyl fentanyl.
Between August 30, 2017 and November 9, 2017, Hurd and his co-conspirator ordered furanyl fentanyl, a powerful fentanyl analog, from China on the Dark Web. They then packaged the fentanyl into baggies which they branded with a “predator” stamp and sold the drug on the streets of Harrington, Delaware. On November 7, 2017, a woman ingested the furanyl fentanyl contained in one of those “predator” branded bags, overdosed on the drug, and died. When police executed a search warrant at Hurd’s residence, they found additional furanyl fentanyl.
Fentanyl’s high potency and unpredictable effects continue to lead to victim overdoses and deaths in record numbers in this country. A very small amount of fentanyl can be lethal. In sentencing Hurd, Chief Judge Stark spoke about the recklessness with which Hurd acted and pointed out that his drug dealing had a devastating consequence.
“We at the Department of Justice seek to reduce the supply of illegal drugs in the United States by aggressively investigating and prosecuting drug traffickers who distribute fentanyl knowing of its deadly effects,” said U.S. Attorney Weiss. “We are grateful that our state and federal law enforcement partners acted swiftly in this instance to remove this harmful drug from our community and to bring some small measure of justice to the victim’s family.”
“Hurd was convicted of distributing furanyl fentanyl, a dangerous and incredibly powerful synthetic opioid, that lead to the fatal overdose of a woman in this case,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “For the drug traffickers that seek to obtain and distribute these dangerous drugs, the penalties are severe.”
This case was investigated by the Drug Enforcement Administration and the Dover Police Department. It was prosecuted by Assistant U.S. Attorney Maureen McCartney.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No.18-29.
Felon with a Firearm Sentenced to 92 Months ImprisonmentRead the Press Release
GREENSBORO, N.C. B A Rowan county resident was sentenced September 27 in federal court in Greensboro for knowingly possessing a firearm after previously being convicted of a felony, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
LAMICHAEL DONELL FEAMSTER, age 27, of Salisbury, North Carolina, was sentenced to a 92 month term of imprisonment by Senior United States District Judge N. Carlton Tilley, Jr. In addition to prison time, FEAMSTER was ordered to serve three years of supervised release and to pay a special assessment of $100.00. FEAMSTER pleaded guilty on July 8, 2019 to knowing possession of a 9mm handgun even though he had previously been convicted of a felony offense punishable by imprisonment for more than one year.
Court records show that on July 16, 2018, officers with the Salisbury Police Department attempted to serve FEAMSTER with an outstanding warrant for arrest at a residence in Salisbury. When they arrived, Feamster was standing on the sidewalk near the rear of the apartment. When instructed to walk toward the officers, FEAMSTER instead fled into the apartment, where he was apprehended soon after. During FEAMSTER’s arrest, a silver 9mm SSCY Industries handgun fell out of his waistband. The firearm had been reported stolen in May of 2018. Detectives reviewed video surveillance footage of the incident in which the firearm was stolen and positively identified him from the video footage. FEAMSTER has a 2014 conviction for felony eluding arrest, which resulted in a term of imprisonment of 7 to 18 months.
The case was investigated by the Salisbury Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Felon with 13 Prior Convictions Sentenced to 7½ Years’ Imprisonment for Illegally Possessing Handgun and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of imprisonment of seven years and six months to be followed by three years of supervised release on his conviction of possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Darnell James Shipman, age 29.
Previously, in connection with Shipman’s guilty plea, the court was advised that on or about May 2, 2018, Shipman unlawfully possessed a Canik 9-millimeter pistol and ammunition after having been convicted of multiple crimes punishable by more than one year in prison. Shipman’s prior convictions included 13 offenses in seven different cases between 2010 and 2018. Federal law prohibits an individual with any felony convictions from possessing a firearm or ammunition. The court was specifically advised that on May 2, 2018, Pittsburgh Police arrested Shipman on outstanding warrants and recovered the Canik pistol and 17 rounds of 9-millimeter ammunition in the center console of a vehicle he was driving.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of Shipman.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fayetteville Man Sentenced to Federal Prison for Drug TraffickingRead the Press Release
CHARLESTON, W.Va. – A Fayetteville man was sentenced to federal prison for heroin, fentanyl, and methamphetamine trafficking, announced United States Attorney Mike Stuart. Jason Dean Treadway, 36, was sentenced to 200 months in prison for possession with intent to distribute 50 grams or more of methamphetamine, along with quantities of heroin and fentanyl. Upon completing his prison sentence, Treadway will serve an additional term of four years of supervised release.
“200 months. Over 16 years in federal prison,” said United States Attorney Mike Stuart. “Treadway was on supervised release at the time he was selling meth, heroin and fentanyl in house with multiple guns. It will be quite a while before he has another opportunity re-offend while on supervised release.”
Treadway previously admitted that he sold heroin and fentanyl to an informant on January 14, 2019 at his residence on Deepwater Mountain Road. On January 15, 2019, members of the Central West Virginia Drug Task Force executed a search warrant at the residence and seized 446 grams of methamphetamine, 89.95 grams of heroin, 90.82 grams of fentanyl and three handguns. Treadway’s girlfriend, Jessica Lynn Hall, 29, was sentenced to 71 months in prison after pleading guilty to her role in the offense.
The Central West Virginia Drug Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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False Statement on Firearms Form Lands Cedar Rapids Man in Federal PrisonRead the Press Release
A man who falsified ATF forms in order to purchase firearms was sentenced October 2, 2019, to more than a year in federal prison.
Joseph Lamont Thompson, age 24, from Cedar Rapids, Iowa, received the prison term after a May 2, 2019 guilty plea to one count of making a false declaration during the purchase of a firearm.
In a plea agreement, Thompson admitted that between May 2017 and March 2018, he was an unlawful user of heroin. Thompson also admitted that, between November 2016 and May 2018, he purchased at least 11 firearms in Iowa. Law enforcement eventually recovered at least four of those guns in the possession of people other than Thompson. Thompson admitted that he repeatedly falsified ATF forms while purchasing guns. At sentencing, Thompson admitted that he had sold two of the guns he purchased to a heroin dealer, and that he had purchased one of the guns for another heroin dealer.
Thompson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Thompson was sentenced to 12 months and one day of imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Thompson was released on the bond previously set and is to surrender to the United States Marshal on October 16, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorney Dan Chatham.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00009-CJW-MAR.
Follow us on Twitter @USAO_NDIA.
Ex-manager of Wibaux oil processing plant that exploded sentenced for Clean Air Act violationRead the Press Release
BILLINGS—The former project manager of an oil processing plant that exploded in Wibaux in 2012, injuring three employees and extensively damaging the facility, was sentenced today to two years of probation and fined $5,000, U.S. Attorney Kurt Alme said.
Mark Hurst, 44, of Edmonton, Alberta, Canada, pleaded guilty on Feb. 27 to Clean Air Act-negligent endangerment.
On Sept. 27, a jury in Billings convicted co-defendant Peter Margiotta, 62, of Edmonton, Alberta, Canada, of all three counts related to the plant explosion. The jury found Margiotta guilty of conspiracy, Clean Air Act-general duty and Clean Air Act-knowing endangerment. Margiotta was president and director of Custom Carbon Processing, Inc., a Wyoming company that constructed the Michels Disposal Well and Oil Processing facility in Wibaux in 2012. Hurst testified against Margiotta at trial.
“As project manager, the defendant was aware of the danger to the employees and the public at the facility, notified management, and yet the plant continued to operate. Today’s sentence holds the defendant accountable for his actions. Compliance with environmental regulations is required and violators will be prosecuted,” U.S. Attorney Alme said. “I want to thank Assistant U.S. Attorney Bryan Dake, Special Assistant U.S. Attorney Eric E. Nelson, the Environmental Protection Agency and the U.S. Department of Transportation Office of Inspector General for their work in prosecuting and investigating this case.”
“We believe today’s sentencing sends a strong message to those responsible for properly handling hazardous material,” said Jeffrey Dubsick, Regional Special Agent in Charge for the U.S. Department of Transportation Office of Inspector General. “Working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to protect against those who would risk the safety of the public and the environment for personal gain.”
“By knowingly operating an oil processing facility without appropriate safeguards, the defendant endangered workers and the public,” said Jeff Martinez, Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program. “Today’s sentencing reflects the egregious nature of the defendant’s actions.”
At Margiotta’s trial, the prosecution presented evidence that Custom Carbon constructed the plant in ways that allowed hydrocarbon vapors, extremely hazardous substances and hazardous air pollutants to be released into the air. The plant opened on July 4, 2012 before appropriate electrical wiring, ventilation and other safety measures were installed.
The prosecution in court documents presented evidence that Hurst, who was the project manager, was aware of the ventilation and electrical problems. In a July 4, 2012 email from Hurst to Margiotta, Hurst noted the risks posed at the plant because of its design and construction. Referring to the electrical panels, Hurst wrote, “We also run the risk of killing someone, not only our operators but also customers.”
In a November 2012 email Hurst sent to Custom Carbon management, he again noted “outstanding deficiencies” at the Wibaux plant, including issues with venting, and wrote, “I wanted all things venting into the building to be vented out the building.” Hurst continued to work at the plant as its project manager and the plant remained open.
On Dec. 29, 2012, the plant accepted a delivery of highly volatile and flammable natural gas condensate or “drip gas.” During the offloading of the material at the plant, hazardous and flammable vapors from the natural gas condensate filled the plant building and spread out the open bay doors where the truck delivering the condensate was located. The vapors reached an ignition source, causing an explosion that injured three employees and extensive damage to the plant, the truck and trailer involved in the delivery.
AUSA Bryan Dake and SAUSA Eric Nelson prosecuted the case, which was investigated by the Environmental Protection Agency and the U.S. Department of Transportation Office of Inspector General.
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East Idaho Meth Dealer Sentenced to 210 Months in Federal PrisonRead the Press Release
POCATELLO - Steven Tobin, 47, of Blackfoot, Idaho, was sentenced this week in U.S. District Court to 210 months in prison, followed by five years of supervised release, for conspiracy to distribute a controlled substance, U.S. Attorney Bart M. Davis announced. Tobin was sentenced by Chief U.S. District Judge David C. Nye. Tobin pled guilty to the federal drug offense on November 8, 2018.
According to court records, between May 2016 and August 2017, Tobin conspired to distribute methamphetamine in Idaho. Tobin was the leader and organizer of a drug distribution conspiracy. Tobin imported methamphetamine into Idaho and directed other dealers to distribute it. Between May 2016 and August 2017, Tobin distributed over two hundred pounds of methamphetamine. These activities culminated in a search of Tobin’s residence on June 12, 2017, where officers found 6.7 pounds of methamphetamine, $30,632, and 49 firearms.
The case was investigated by the Drug Enforcement Administration and the Idaho State Police.
The indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and the U.S. Marshals Service.
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Drug Trafficker Sentenced to Federal Prison for Distributing HeroinRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Jose Manuel R. Andrade, age 43, of Parker, Washington, was sentenced today after having pleaded guilty on June 13, 2019, to distributing heroin. Chief United States District Judge Thomas O. Rice, sentenced Andrade to a 24-month term of imprisonment, to be followed by a 2-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in December 2012, U.S. Drug Enforcement Administration (“DEA”) agents observed Andrade distributing 133 grams of heroin to another individual in the parking lot of a truck stop off I-90 near Medical Lake, Washington. Andrade was subsequently indicted by a federal grand jury in the Eastern District of Washington, and an arrest warrant was issued. On March 25, 2019, Andrade was arrested in California by U.S. Department of Homeland Security, Customs and Border Protection officers at the San Ysidro Port of Entry when he sought admission to the United States from Tijuana, Mexico.
United States Attorney Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking just punishment for individuals who distribute drugs in our communities. I commend the DEA, U.S. Marshals Service and the U.S. Department of Homeland Security, Customs and Border Protection officers, for their commitment to this successful prosecution.”
This case was investigated by the U.S. Drug Enforcement Administration. This case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
Drug Trafficker Sentenced to 84 Months in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Daniel Alfredo Coreas, Jr., age 28, of Soap Lake, Washington, was sentenced today after having pleaded guilty on July 2, 2019, to possession with the intent to distribute 5 grams or more of methamphetamine. Chief United States District Judge Thomas O. Rice sentenced Coreas to an 84-month term of imprisonment, to be followed by a 4-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on June 12, 2018, while executing a warrant to search Coreas’s residence, the Grant County Interagency Narcotic Enforcement Team (INET) seized over 18 grams of methamphetamine and multiple rounds of ammunition.
United States Attorney Hyslop said, “This prosecution was made possible by the diligent work of agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Grant County INET. The United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for drug traffickers.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Grant County Interagency Narcotics Enforcement Team. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Drug Trafficker Sentenced to 10 Years in Federal Prison for Possessing with Intent to Distribute MethamphetamineRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Jose Manual Mendoza, age 30, of Pasco, Washington, was sentenced after having pleaded guilty on July 18, 2019, to possession with the intent to distribute 50 grams or more of methamphetamine. United States District Judge Salvador Mendoza, Jr., sentenced Jose Manual Mendoza to a 10-year term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, the METRO Drug Task Force and Benton County Sheriff’s Office identified Jose Manual Mendoza as he was leaving a residence in a pickup truck. At the time, Mendoza was under the supervision of the Washington State Department of Corrections (“DOC”) and there were felony warrants for his arrest. When officers initiated a traffic stop on the truck, Mendoza tried to conceal his identity by providing the officers with a false identification document and an alias name. After confirming his true identity, the officers arrested Mendoza and applied for a warrant to search his truck. While searching Mendoza’s truck, officers found a half pound of methamphetamine, two loaded 9mm firearms and a digital scale.
United States Attorney Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the U.S. Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, METRO Drug Task Force and Benton County Sheriff’s Office who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court removes a drug trafficker from our streets and sends a clear message to others who may choose to engage in such criminal activity.
This case was investigated by the U.S. Drug Enforcement Administration Tri-cities Task Force, the METRO Drug Task Force, the Benton County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. This case was prosecuted by Stephanie Van Marter, an Assistant United States Attorney for the Eastern District of Washington.
Dominican National Sentenced for Identity TheftRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced today in federal court in Boston for Social Security fraud and aggravated identity theft.
Yonelin Manuel Baez Soto, 24, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to two years and one day in prison and two years of supervised release. In June 2019, Baez Soto pleaded guilty to three counts of false representation of Social Security numbers and three counts of aggravated identity theft. Baez Soto will be subject to deportation proceedings upon completion of his sentence.
On Oct. 15, 2014, Oct. 17, 2014, and Aug. 4, 2015, Baez Soto applied for a Massachusetts learner’s permit and/or a Massachusetts identification card using the name, date of birth and Social Security number of a Puerto Rican born United States Citizen. In September 2018, law enforcement agents encountered Baez Soto when he was serving a sentence at Essex County Correctional Facility for possession with intent to distribute fentanyl in the Puerto Rican man’s identity. Baez Soto was identified from, among other things, a fingerprint match with a Dominican Republic identification document issued to him and bearing his photo.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Convicted of Identity Theft OffensesRead the Press Release
BOSTON – A Dominical national who has been arrested numerous times under a false identity for heroin offenses pleaded guilty today to identity theft charges.
Marlon Suazo Santos, 31, a Dominican national who resided in Dorchester, pleaded guilty to two counts of false representation of a Social Security number and one count of aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Jan. 14, 2020.
Suazo Santos used the identity of a U.S. citizen on more than a dozen applications submitted to the Massachusetts Registry of Motor Vehicles for driver’s licenses and other identification documents. Suazo Santos also used this identity on applications for MassHealth benefits and during booking when arrested for numerous heroin-related offenses and other crimes.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
Dominican National Charged with Unlawful ReentryRead the Press Release
BOSTON – A Dominican national was charged today in federal court in Boston with one count of unlawful re-entry of a deported alien.
Reymond Arias Valdez, 25, who resided in Providence, RI, was indicted on one count of unlawfully re-entering the United States after being deported. According to the indictment, Arias Valdez was removed in April 2019 and subsequently re-entered the United States without permission.
Arias Valdez faces a sentence of up to two years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Marcos D. Charles, Acting Field Office Director of U.S Immigration and Customs Enforcement, Enforcement and Removal Operations, New England Field Division made the announcement today. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doddridge County woman sentenced for methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kelly Wright-Meyers, of West Union, West Virginia, was sentenced today to 34 months incarceration for distributing methamphetamine, United States Attorney Bill Powell announced.
Wright-Meyers, age 36, pled guilty to one count of “Distribution of Methamphetamine” in April 2019. Wright-Meyers admitted to selling methamphetamine in December 2017 in Harrison County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part 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. District Judge Thomas S. Kleeh presided.
Denver Doctor Pleads Guilty to Illegally Prescribing Controlled SubstancesRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Dr. Andrew Mark Ho, age 54, of Denver, pled guilty yesterday to illegally dispensing or illegally causing to be dispensed oxycodone, a controlled substance. Ho pled guilty before Chief U.S. District Court Judge Philip B. Brimmer. Judge Brimmer is scheduled to sentence Ho on January 10, 2020. The defendant appeared at the change of plea hearing free on bond. The bond was continued at the conclusion of the hearing.
According to the stipulated facts contained in Ho’s plea agreement, Andrew Mark Ho is a medical doctor licensed to practice in the State of Colorado. Ho was registered with the Drug Enforcement Administration (“DEA”) until approximately December 13, 2016, authorizing him to write prescriptions for controlled substances on Schedules II through V. He is an owner of and practices at Harvard Avenue Internal Medicine LLC. Dr. Ho stipulated that between 2014 and 2016, he prescribed controlled substances comprising the so-called “Holy Trinity,” outside the scope of accepted medical practice.
The “Holy Trinity” is a colloquial term to describe the prescription of a combination of drugs comprised of a benzodiazepine, an opioid, and a muscle relaxant, which while highly sought out on the street, is especially dangerous because each of those medications depress the central nervous system and the ability to breathe.
“Overprescribing controlled substances, especially prescribing the “Holy Trinity” of prescription drugs is dangerous, and there is no acceptable medical reason to do so,” said U.S. Attorney Jason Dunn. “In this case, it’s simply flat-out drug dealing and is being treated accordingly.”
“The DEA is committed to identifying the sources of illicit prescribing and will continue to hold providers and distributors accountable for their actions that denigrate this community,” said DEA Denver Division Acting Special Agent in Charge Deanne Reuter. “By Dr. Ho relinquishing his ability to prescribe controlled substances, there will be fewer people in this state being provided highly addictive controlled substances for no legitimate medical reason, which in this case resulted in abuse and illegal distribution.”
This case was investigated by the DEA. The defendant was prosecuted by Assistant U.S. Attorneys Hetal J. Doshi and Bryan D. Fields.
Dennis Port Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A Dennis Port man was indicted today in federal court in Boston on charges of receipt and possession of child pornography.
Sean Gleason, 35, was indicted by a federal grand jury on one count of receipt of child pornography and one count of possession of child pornography. An arraignment date has not yet been scheduled. On Sept. 10, 2019, Gleason was arrested and charged by criminal complaint and has been in custody since.
Following an investigation into the use of a messaging application in the exchange of child pornography, a federal search warrant was executed at a residence in Dennis Port. A preliminary forensic review of Gleason’s cell phone revealed hundreds of images of child pornography.
The charges of receipt and possession of child pornography each carry a sentence of up to 20 years in prison, and the charge of receipt of child pornography carries a mandatory minimum sentence of five years in prison. Both charges provide for a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason A. Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Convicted felon who threatened residents with a gun sentenced for possessing firearm, ammunitionRead the Press Release
CINCINNATI – Dayvon Cook, 25, of Cincinnati, was sentenced in U.S. District Court to 64 months in prison for possessing a firearm and ammunition after being convicted of a felony crime.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Cincinnati Police Chief Eliot K. Isaac announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, in September 2018, Cincinnati Police received a 911 call regarding a male carrying a gun and threatening to rob people in the parking lot of the Stanley Rowe Tower apartment complex.
Cincinnati Police officers responded to the scene and identified a suspect matching the call, who was later identified as Cook. Cook ran from the officers and threw a semi-automatic pistol under a car. The firearm was loaded with sixteen rounds of ammunition in an extended magazine.
Cook had previously been convicted of a felony crime. He is currently in state custody for a separate firearms crime and will serve his federal sentence after his current 24-month state sentence that was imposed on Feb. 27, 2019.
Cook pleaded guilty in his federal case in April 2019.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Glassman commended the cooperative investigation by the Cincinnati Police Department and ATF, as well as Assistant United States Attorney Ashley Brucato, who is representing the United States in this case.
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Columbia Man Sentenced in Federal Court for Dumping Hazardous Waste into CreekRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Michael Greene, age 45, of Columbia, was sentenced to 90 days in federal prison and fined $25,000, after pleading guilty to violating the Clean Water Act. United States District Court Judge J. Michelle Childs presided.
Facts presented to the court showed Greene worked for an environmental company offering hazardous waste disposal services. Greene’s job was to transport the liquid runoff from solid waste at an Eastover landfill to the Florence Wastewater Management Facility. Instead, he illegally dumped the liquid runoff, or ‘leachate,’ into the Leesburg Branch Creek on multiple occasions in mid-2017.
The United States Environmental Protection Agency (EPA), South Carolina Department of Health and Environmental Control (DHEC), and the South Carolina Department of Natural Resources (DNR) investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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Cincinnati Man Sentenced to 130 Months for Trafficking Heroin in Pulaski CountyRead the Press Release
LONDON, Ky. - Stephen Ushery, Jr., of Cincinnati, was sentenced Wednesday to 130 months in federal prison, by United States District Judge Robert E. Wier, for conspiracy to distribute one kilogram or more of heroin.
The conviction followed a two and a half year investigation that established Ushery as a drug supplier, who traveled from his home in Cincinnati to distribute multi-ounce quantities of heroin to several other local drug dealers in the Pulaski County area. In his plea agreement, Ushery admitted that between 2015 and 2018, he was responsible for distributing over one kilogram of heroin into the Eastern District of Kentucky. Ushery’s heroin distribution conspiracy ended in September of 2018, when law enforcement arrested him and raided the apartment he was using as his base of drug distribution in Somerset, finding nearly 50 grams of heroin and over $5,000 in drug proceeds.
Several of Ushery’s co-conspirators have also been sentenced in connection with their heroin trafficking activities, including Chad Puchalski (sentenced to 180 months), Sonie Meatchem, Jr. (sentenced to 70 months), Diana Chiree Sullivan (47 months), Samantha Pointer (39 months), Kimberly Ann Sweeten (33 months), and Tyler Hargis (20 months).
Under federal law, Ushery must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years following his release.
“Combatting the trafficking of dangerous drugs, particularly heroin, is a fundamental priority for our Office,” said United States Attorney Robert M. Duncan, Jr. “The defendant’s transportation and distribution of significant quantities of heroin adversely impacted the lives of many in the Pulaski County area. I commend the work of the federal, state, and local law enforcement agencies involved in helping hold this defendant, and his co-defendants, accountable for their actions.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge of the DEA; Sheriff Greg Speck, Pulaski County Sheriff’s Office; Chief Tony Duncan, Somerset Police Department; Director Wayne Conn, Lake Cumberland Drug Task Force; Commissioner Richard Sanders, Kentucky State Police; and Chief Brian Carter, Mt. Vernon Police Department, collectively announced the sentence.
The investigation was conducted by the DEA, the Pulaski County Sheriff’s Office, the Somerset Police Department, the Kentucky State Police, the Lake Cumberland Drug Task Force, and the Mount Vernon Police Department. The United States was represented by Assistant U.S. Attorney Andrew H. Trimble.
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Christopher Hasson Pleads Guilty to Federal Charges of Illegal Possession of Silencers, Possession of Firearms by an Addict to and Unlawful User of A Controlled Substance, and Possession of A Controlled SubstanceRead the Press Release
Greenbelt, Maryland –Christopher Paul Hasson, age 50, of Silver Spring, Maryland, pleaded guilty today in U.S. District Court in Maryland to four federal charges, including unlawful possession of unregistered silencers, unlawful possession of firearm silencers unidentified by serial number, possession of firearms by an addict to and unlawful user of a controlled substance, and possession of a controlled substance. Hasson was arrested on related charges on February 15, 2019, and has been detained since his arrest.
The guilty plea was 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; Special Agent in Charge Art Walker of the U.S. Coast Guard Investigative Service; and Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
“I am grateful for the hard work of the agents and prosecutors to obtain this guilty plea. I look forward to the opportunity for the government to present additional evidence to the Court at sentencing,” said United States Attorney Robert K. Hur.
According to his plea agreement, Hasson was a Lieutenant in the United States Coast Guard. Prior to June 2016, Hasson owned a residence and lived in Currituck, North Carolina. In approximately June 2016, Hasson moved to a residence in Silver Spring, Maryland, and worked at Coast Guard Headquarters in Washington, D.C.
Hasson admitted that from at least March 2016 through early February 2019, he used various e-mail accounts, including an overseas encrypted e-mail account, to order Tramadol, which is an opioid, from various illegal Internet-based distributors. Hasson usually paid for the Tramadol by using MoneyGram or Western Union to send money to individuals in Mexico, at the direction of the Mexico-based distributor. The distributor then had the Tramadol shipped to Hasson, typically in 100mg pills, at addresses Hasson provided, including his North Carolina and Maryland residences. Hasson admitted that he then concealed the Tramadol in other packaging at his residence and work. Hasson ordered at least 4,650 Tramadol pills and personally took the pills, usually daily, including while he was at work. Hasson knew that he did not have a lawful prescription for Tramadol and that his possession of the drug was illegal. During the time of his use of Tramadol, Hasson also conducted Internet searches and visited websites that discussed addiction and Tramadol withdrawal.
As detailed in his plea agreement, at the time of Hasson’s arrest on February 15, 2019, agents recovered 196 Tramadol pills from Hasson’s backpack. Search warrants executed the same day recovered 106 Tramadol pills from Hasson’s desk at Coast Guard Headquarters and 122 Tramadol pills from Hasson’s residence. From Hasson’s residence, law enforcement also recovered the following firearms: seven rifles; two shotguns; four pistols; two revolvers; an assembled firearm silencer; and a disassembled firearm silencer. In close proximity to the guns, agents found multiple magazines that could accept more than 15 rounds of ammunition, as well as hundreds of rounds of ammunition.
According to the plea agreement, Hasson ordered the components of the firearm silencers from a company in California and used a drill to complete and assemble one firearm silencer. Hasson knew the firearm silencers were not registered in the National Firearms Registration and Transfer Record, and that they did not have serial numbers, as required by law.
Hasson faces a maximum sentence of 10 years in prison for each of the three charges related to firearms and the firearm silencers, and a maximum of one year in prison for possession of tramadol. U.S. District Judge George J. Hazel has scheduled sentencing for January 31, 2020, at 9:30 a.m.
United States Attorney Robert K. Hur commended the FBI, the U.S. Coast Guard Investigative Service, and the ATF for their work in the investigation. Mr. Hur thanked his office’s national security prosecutors, who are handling the case.
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Charleston Man Sentenced to Federal Prison for Gun CrimeRead the Press Release
BECKLEY, W.Va. – A Charleston man was sentenced to federal prison for illegally possessing a firearm, announced United States Attorney Mike Stuart. Harvery Booker, 54, was sentenced to 78 months in prison, to be followed by a 3 year term of supervised release, for being a felon in possession of a firearm.
Booker previously admitted that on September 12, 2018 he broke into a house in St. Albans and stole 32 firearms, including a machine gun. At the time he stole the firearms, Booker had previously been convicted of at least three counts of breaking and entering, one count of aggravated robbery, and one count of escape.
“I believe in second chances but, sadly, this guy never learned from his prior lengthy history in the American justice system,” said United States Attorney Mike Stuart. “He stole 32 firearms, including a machine gun. Incredibly dangerous activity and he was a felon to boot. This is an egregious case.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kanawha County Sheriff’s Office, and the West Virginia State Police conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Drew Inman handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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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Carrollton Man Sentenced to 30 Years for Child Sexual Exploitation ViolationsRead the Press Release
PLANO, Texas – A 50-year-old Carrollton, Texas man has been sentenced to 30 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joseph Patrick Mosher pleaded guilty on March 19, 2019, to two-counts of sexual exploitation of children and was sentenced to 360 months in federal prison by U.S. District Judge Sean D. Jordan on Oct. 2, 2019. Mosher must also pay a fine of $50,000 and an assessment pursuant to the Justice for Victims of Trafficking Act of $10,000, and must forfeit $50,000 from the sale of his home.
According to information presented in court, in September of 2018, a teenager known to Mosher reported to school officials that he believed he had been secretly filmed in a bathroom of Mosher’s home. Carrollton Police Department detectives executed a search warrant at the home and seized a number of hidden cameras and electronic devices. A forensic review of those devices revealed a number of videos of males captured in private spaces within the home. It appeared that the males did not know they were being recorded or that Mosher had obtained footage of them engaged in private or personal activities. A total of five victims were identified in recordings from Mosher’s home. Mosher’s sentence also included a conviction for communicating with a minor online, persuading the minor to engage in sexually explicit conduct, and then filming the child – again without the child’s knowledge.
“This case is another warning to parents to be aware of who their children are communicating with, and to be careful about who they allow to be around their children,” said United States Attorney Joe Brown. “There are threats from so many different directions these days, and the internet makes it so much easier for offenders. We have to get the message to our kids to be aware of these threats.”
“This predator of children volunteered for a position of trust as a host parent for international foreign exchange students so that he could sexually exploit these children,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “For grossly abusing that trust, he has earned the 30-year prison sentence imposed upon him after victimizing at least five of these students.”
“On behalf of the Carrollton Police Department, I thank the U.S. Attorney’s Office for the Eastern District for partnering with us to protect children from predators like Joseph Patrick Mosher,” said Carrollton Police Chief Derick Miller. “May this sentence bring peace to his victims and may it encourage others as yet unheard to speak out.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and the Carrollton Police Department and prosecuted by Assistant U.S. Attorney Marisa J. Miller.
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Cameron Collins and Stephen Zarsky Plead Guilty to Insider Trading Scheme Involving Former Congressman Christopher CollinsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that CAMERON COLLINS, the son of former United States Congressman Christopher Collins, and STEPHEN ZARSKY, the father of CAMERON COLLINS’s fiancée, pled guilty to participating in a scheme to commit insider trading in the stock of Innate Immunotherapeutics, a biopharmaceutical company for which Christopher Collins served on the board of directors.
U.S. Attorney Geoffrey S. Berman said: “Insider trading corrupts the integrity of our markets. The strength of our financial system depends on investors knowing that everyone is playing by the rules. Today’s guilty pleas reaffirm the commitment of this Office and our law enforcement partners to protecting and defending those values.”
The following facts are based on the allegations contained in the Superseding Indictment and statements made in related court filings and proceedings:
The Insider Trading Scheme
The Scheme
In or about June 2017, Christopher Collins, who, in addition to serving on Innate’s board of directors, was also one of Innate’s largest shareholders, participated in a scheme to commit insider trading. Specifically, on or about June 22, 2017, Christopher Collins learned that MIS416 – a multiple sclerosis drug that Innate was developing – had failed a critical drug trial that was meant to determine the drug’s clinical efficacy (the “Drug Trial”). The negative Drug Trial results were highly confidential, and, as an insider who owed duties of trust and confidence to Innate, Christopher Collins was obligated to keep the Drug Trial results secret until Innate publicly released them. Instead, in breach of those duties, Christopher Collins tipped his son, CAMERON COLLINS, who was also a substantial Innate shareholder, so that CAMERON COLLINS could make timely trades and tip others before Innate publicly released the Drug Trial results. CAMERON COLLINS traded on the inside information and passed it to the father of his fiancée, STEPHEN ZARSKY, as well as to three individuals not named in the Superseding Indictment (“Individual-1,” “Individual-2,” and “Individual-6”), so that they could utilize the information for the same purpose. ZARSKY, in turn, traded on the information and used it to tip three more individuals not named in the Superseding Indictment (“Individual-3,” “Individual-4,” and “Individual-5,”) so that they too could engage in timely trades in Innate stock. All of the trades preceded the public release of the negative Drug Trial results.
In total, these trades allowed CAMERON COLLINS and ZARSKY, and Individual-1 through Individual-6, to avoid over $768,000 in losses that they would have otherwise incurred if they had sold their stock in Innate after the Drug Trial results became public.
The Drug Trial Results
In or about October 2014, Innate initiated a Phase 2B clinical trial of its primary drug, MIS416. Successful completion of the Drug Trial was a necessary prerequisite to the commercialization of MIS416. Because Innate had no other significant products in development, its stock price was tied to the success of MIS416.
The Drug Trial was widely expected to be completed around the summer of 2017. For example, on or about June 9, 2017, Innate’s chief executive officer (“CEO”) sent various individuals, including Christopher Collins, an email stating that “the delivery date for [the] review and ‘verdict’” of the Drug Trial “will [] occur at COB on US Thursday June 22nd.” As the summer progressed, individuals within Innate remained optimistic that MIS416’s Drug Trial results would be positive. The initial Drug Trial results were made available by trial administrators to Innate’s CEO on June 22, 2017. These results established that MIS416 lacked therapeutic value in the treatment of multiple sclerosis. The results were not publicly released at that time. Instead, they were released publicly on June 26, 2017, after the U.S. markets had closed (the “Public Announcement”). Innate’s stock price subsequently crashed, dropping 92% on the first trading day following the Public Announcement.
Dissemination of the Drug Trial Results
On or about June 22, 2017, at approximately 6:55 p.m., Innate’s CEO sent an email describing the Drug Trial results to the company’s Board of Directors, including Christopher Collins. The email explained to Innate’s Board of Directors for the first time that the Drug Trial had been a failure. The email began, in part, “I have bad news to report,” and continued to explain that “the top line analysis of the ‘intent to treat’ patient population (ie every subject who was successfully enrolled in the study) would pretty clearly indicate[s] ‘clinical failure.’” The email continued, “Top-line 12-month data . . . show no clinically meaningful or statistically significant differences in [outcomes] between MIS416 and placebo,” and concluded by stating, “No doubt we will want to consider this extremely bad news. . . .”
At the time Christopher Collins received this email, he was attending the Congressional Picnic at the White House. At 7:10 p.m., Christopher Collins replied to the email, stating, in part, “Wow. Makes no sense. How are these results even possible???” After responding to the Innate CEO’s email, Christopher Collins called his son, CAMERON COLLINS. They traded six missed calls between 7:11 p.m. and 7:15 p.m.. At 7:16 p.m., Christopher Collins and CAMERON COLLINS spoke for more than six minutes. During that six-minute phone call, Christopher Collins told CAMERON COLLINS, in sum and substance, that MIS416 had failed the Drug Trial.
Trading and Tipping by CAMERON COLLINS and ZARSKY
CAMERON COLLINS began placing orders to sell his Innate shares the morning after he received inside information from Christopher Collins. Between the morning of Friday, June 23, 2017 and the close of the market on Monday, June 26, 2017, CAMERON COLLINS sold approximately 1,391,500 shares of Innate stock. These sales allowed CAMERON COLLINS to avoid approximately $570,900 in losses.
Furthermore, after learning the Drug Trial results from Christopher Collins, on or about the night of June 22, 2017, CAMERON COLLINS provided the Drug Trial results to at least the following three sets of individuals so that they could trade in advance of the Public Announcement: (1) his fiancée, Individual-1; (2) ZARSKY and ZARSKY’s wife, Individual-2; and (3) CAMERON COLLINS’s friend, Individual-6. Collectively, these individuals avoided approximately $186,620 in losses as a result of their trading on inside information.
On or about the morning of June 23, 2017, ZARSKY provided the negative Drug Trial results that he had learned from CAMERON COLLINS and Individual-1 to at least the following individuals, among others, or otherwise caused them to trade or attempt to trade in advance of the Public Announcement: (1) his brother, Individual-3; (2) his sister, Individual-4; and (3) his longstanding friend, Individual-5. Collectively, these individuals avoided approximately $10,900 in losses as a result of their trading on inside information.
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CAMERON COLLINS, 26, and STEPHEN ZARSKY, 67, each pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum penalty of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the Judge.
Mr. Berman praised the outstanding work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Scott Hartman, Max Nicholas, and Damian Williams are in charge of the prosecution.
Camden Men Indicted for Pine Bluff Robbery and MurderRead the Press Release
LITTLE ROCK— Two Camden men have been charged with robbing a gas station and attempting to rob a pawn shop and killing the shop’s owner. A federal grand jury has charged Daryl Strickland, Jr., 22, and Rodney Tyrone Henry, 22, following the November 2018 robbery of the Alon Gas Station and the attempted robbery of the Wise Buck Pawn Shop, both in Pine Bluff. The indictment alleges that Strickland and Henry caused the death of Brandon McHan, who owned the pawn shop.
According to the indictment, which was returned by a federal grand jury Thursday, Strickland and Henry conspired on November 12, 2018, to rob the Wise Buck Pawn Shop, which was a federally licensed firearms dealer. The indictment charges them with the attempted robbery of the pawn shop and with causing the death of McHan, a pawn shop employee, while carrying a firearm during the attempted robbery. The indictment also charges them with conspiring to rob the Alon Gas Station, robbing the gas station, and using a firearm during the robbery.
The penalty for conspiring to, attempting to, or interfering with commerce by robbery is not more than 20 years imprisonment, followed by a term of supervised release of not more than three years. The penalty for brandishing a firearm in furtherance of a crime of violence is not less than seven years and not more than life imprisonment, and that term runs consecutively to any other term imposed. The penalty for murder while discharging a firearm in furtherance of a crime of violence is any term of years, up to life imprisonment, or death. Each crime charged carries a fine of up to $250,000.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and William McCrary, Assistant Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives– New Orleans Field Division, announced the indictment. The investigation was conducted by the ATF, the Pine Bluff Police Department, the Camden Police Department, and Arkansas Community Corrections. The case is being prosecuted by Assistant United States Attorneys Benecia Moore and Kristin Bryant.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
California Man Charged with Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – A Montclair, California, man was charged in federal court today for transporting more than four pounds of heroin and approximately five pounds of fentanyl aboard a bus enroute to New York City.
Daniel O. Villanueva, 20, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Missouri, with possessing heroin and fentanyl with the intent to distribute. Villanueva remains in federal custody pending a detention hearing, which has not yet been scheduled.
According to an affidavit filed in support of today’s federal criminal complaint, detectives with the MoWIN (Missouri Western Interdiction and Narcotics) Task Force contacted Villanueva at a local bus station when he disembarked from a bus originating from Los Angeles, California, en route to New York City. Villanueva was acting nervous, the affidavit says, and gave detectives permission to search his backpack in the overhead bin in the passenger compartment of the bus. No contraband was found in the backpack.
Near Villanueva’s backpack was a green backpack, which Villanueva claimed did not belong to him. Detectives removed the green backpack and a police service canine alerted to the presence of controlled substances inside the backpack. When passengers boarded the bus, detectives asked whether the backpack belonged to any of them. No one claimed the backpack, so detectives removed it from the bus and searched it. They found four bundles concealed within men’s clothing. Two bundles contained a total 2.022 kilograms (approximately 4.4 pounds) of heroin and 2.27 kilograms (approximately five pounds) of fentanyl.
Villanueva, who had been escorted off the bus, told detectives the green backpack was his, the affidavit says. Villanueva told detectives he was to be paid $5,000 to deliver the heroin and fentanyl to New York City.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Ashleigh Ragner and Jeffrey Q. McCarther. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
Boston Man Charged with Being Felon in Possession of FirearmRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for being a felon in possession of a firearm and ammunition.
Elvis R. Abinader, 20, was indicted by a federal grand jury on one count of being a felon in possession of a firearm and ammunition. Abinader was initially charged by criminal complaint and has been in custody since Sept. 10, 2019.
The indictment alleges that Abinader possessed a Ruger .380 caliber pistol with an obliterated serial number and three rounds of ammunition on June 24, 2019, at the Mt. Pleasant Play Area, a playground in Boston. Federal law prohibits Abinader from possessing a firearm or ammunition due to a prior felony conviction for a narcotics distribution offense.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Suffolk County District Attorney Rachael Rollins; and Boston Police Commissioner William G. Gross made the announcement today. Assistant U.S. Attorney James R. Drabick of Lelling’s Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bordentown Man Charged with Conspiracies go Commit Wire Fraud and Launder Money for Defrauding Internet DonorsRead the Press Release
CAMDEN, N.J. - A Burlington County, New Jersey, man has been charged in connection with his role in a GoFundMe scheme that collected money from donors on the Internet, purportedly to benefit a homeless man, U.S. Attorney Craig Carpenito announced today.
Mark D’Amico, 40, formerly of Bordentown, New Jersey, is charged by criminal complaint with one count each of conspiring to commit wire fraud and conspiring to commit money laundering. He is expected to appear later this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
On March 6, 2019, two conspirators – Katelyn McClure and Johnny Bobbitt Jr. – pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, respectively, in connection with the same scheme.
According to documents filed in this case and statements made in court:
In November of 2017, D’Amico and McClure created a crowd source funding page on GoFundMe’s website entitled “Paying It Forward.” The campaign solicited donations from the public purportedly for the benefit of homeless veteran Bobbitt. On the website, D’Amico and McClure posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a Good Samaritan and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited, with a goal of $10,000, to get Bobbitt off the streets and provide living expenses for him.
The story told by D’Amico and McClure was not true. McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure conspired to create the false story to obtain money from donors based on false information. The false story was quickly picked up by local and national news outlets and went viral. Approximately $400,000 from more than 14,000 donors throughout the country was raised in less than one month.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts on D’Amico’s gambling addiction, vacations, a BMW automobile, clothing, handbags and other personal items and expenses.
In mid-November of 2017, when the donations had reached approximately $1,700, D’Amico and McClure told Bobbitt about the campaign and the false story. In December of 2017, after D’Amico helped open a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
The charge of wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of conspiracy to commit money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges. He also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; and officers of the Florence Township, New Jersey, Police Department for their work on the case.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Billings woman sentenced to prison for meth traffickingRead the Press Release
BILLINGS—A Billings woman who admitted trafficking methamphetamine after law enforcement found meth, drug making materials and $10,000 in silver coins in a residence she shared with her father was sentenced today to five years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Brittany Nicole Green, 40, pleaded guilty in March to possession with intent to distribute meth.
Green’s father, Gregory Paul Green, 64, was sentenced in August to three years in prison. He pleaded guilty to conspiracy to possess with intent to distribute meth and possession with intent to distribute.
U.S. District Judge Susan P. Watters presided at both sentencings.
Prosecutors said in court records that law enforcement became aware of Gregory Green in December 2018 after a package that was addressed to Green was intercepted in Port Huron, MI. The package was labeled “Organic Fitness Vitamin” and opened by law enforcement. The package contained 1,471 Xanax pills. Investigators determined that 112 packages from various locations, including Canada, had been shipped to Green’s residence since December 2017.
Law enforcement executed a search warrant on Green’s house after the package was accepted by a person at the residence. Officers found meth, drugs and drug paraphernalia. In Green’s room was a computer displaying the “dark web” and a screen showing where the Greens were selling Xanax across the country. Agents also found meth totaling about 229 grams, or 8 ounces, along with packages and extensive packaging material, including hundreds of feet of glass tubing, glass beakers, a 100 pound butane tank and recipes for combining drugs. In addition, agents seized about $10,000 in silver coins.
Assistant U.S. Attorneys Colin Rubich and Bryan Dake prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, the FBI and the Billings Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Berkeley County man sentenced for illegal firearms saleRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Loren Hoffman, III, of Falling Waters, West Virginia, was sentenced to six months incarceration for a firearms sales violation, United States Attorney Bill Powell announced.
Hoffman, age 52, pled guilty to one count of “Making a False Entry in records by Federal Firearms Dealer” in August 2019. Hoffman sold a .45 ACP caliber Hi-Point rifle and knowingly failed to make an appropriate entry of the sale in his records. The crime took place in October 2018 in Berkeley County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Attorney General’s Office has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Ronald Monroe, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Monroe, age 39, pled guilty to one count of “Unlawful Possession of Firearm.” Monroe, having been previously convicted of a felony, admitted to having a 9mm pistol and a .380 caliber pistol in August 2017 in Berkeley County.
Monroe faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Attorney General William P. Barr Announces Progress in Making our Communities Safer through Project Safe NeighborhoodsRead the Press Release
Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. 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.
Throughout the past two years, the department’s United States Attorneys have 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.
According to FBI’s 2018 Crime in the United States Report released this week, for the second consecutive year, the estimated number of violent crimes in the nation decreased 3.3 percent from the 2017 number. The violent crime rate fell 3.9 percent when compared with the 2017 rate. The 2018 statistics show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants.
“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.”
Attorney General Barr Signs Letter to Facebook from US, UK, and Australian Leaders Regarding Use of End-To-End EncryptionRead the Press Release
The Department of Justice today published an open letter to Facebook from international law enforcement partners from the United States, United Kingdom, and Australia in response to the company’s publicly announced plans to implement end-to-end-encryption across its messaging services.
The letter is signed by Attorney General William P. Barr, United Kingdom Home Secretary Priti Patel, Australia’s Minister for Home Affairs Peter Dutton, and Acting Homeland Security Secretary Kevin McAleenan.
Addressed to Facebook’s CEO, Mark Zuckerberg, the letter requests that Facebook not proceed with its end-to-end encryption plan without ensuring there will be no reduction in the safety of Facebook users and others, and without providing law enforcement court-authorized access to the content of communications to protect the public, particularly child users.
Facebook’s proposals would put at risk its own vital work that keeps children safe. In 2018, Facebook made 16.8 million reports of child sexual exploitation and abuse content to the National Center for Missing & Exploited Children (NCMEC), 12 million of which it is estimated would be lost if the company pursues its plan to implement end-to-end encryption.
The concerns highlighted in this letter to Facebook are at the core of the Department of Justice’s Lawful Access Summit that will take place on Friday, Oct. 4, 2019, on warrant-proof encryption and its impact on child exploitation cases.
The summit will feature a keynote address by Attorney General Barr along with remarks by Deputy Attorney General Jeffrey A. Rosen, FBI Director Christopher Wray, and NCMEC co-founder John Walsh. The summit also includes a dialogue with Australian Minister Dutton and U.K. Home Secretary Patel, who will discuss international perspectives on the area of encryption and why Facebook must reconsider its plan to implement end-to-end encryption.
Use of end-to-end encryption, which allows messages to be decrypted only by end users, leaves service providers unable to produce readable content in response to wiretap orders and search warrants. This barrier allows criminals to avoid apprehension by law enforcement by limiting access to crucial evidence in the form of encrypted digital communications. The use of end-to-end encryption and other highly sophisticated encryption technologies significantly hinders, or entirely prevents serious criminal and national security investigations.
Many service providers, device manufacturers, and application developers who use encryption fail to implement technology that would allow the government to obtain electronic evidence necessary to investigate and prosecute threats to public safety and national security. Law enforcement believes it is crucial for technology companies to include lawful access mechanisms in the design of their products or services. The Department of Justice is committed to developing a coherent national and international policy that encourages responsible encryption, enhances public safety, while protecting privacy and cybersecurity.
Atlantic City Mayor Admits Defrauding Contributors to A Youth Basketball TeamRead the Press Release
CAMDEN, N.J. – The mayor of Atlantic City today admitted to defrauding contributors to a youth basketball team of more than $87,000, U.S. Attorney Craig Carpenito announced.
Frank Gilliam, 49, of Atlantic City, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of wire fraud.
“Mayor Gilliam took advantage of his victims’ desire to assist underprivileged children by falsely representing that the money contributed to the AC Starz Basketball Club would go to pay for school supplies or to support youth basketball,” U.S. Attorney Carpenito said. “Instead, he spent the money on himself. When a public official like Gilliam abuses either a public or a private trust to commit a fraud, this Office and our agency partners will investigate and prosecute that official. The people of New Jersey are entitled to better.”
“When a scheme depletes charity for children, it's unconscionable,” Special Agent in Charge Gregory W. Ehrie said. “But when the fraud is perpetrated by someone the public trusts, it damages the community's confidence in their public servants. This defendant betrayed the trust of his community and of people who wanted to improve the lives of children. The FBI is committed to uncovering fraud and corruption. If you break the law, no matter who you are, you will face the consequences.”
According to documents filed in this case and statements made in court:
Gilliam was the co-founder of AC Starz Basketball Club (AC Starz), a non-profit that he incorporated to operate a youth basketball team. While serving as a member of the Atlantic City Council and later, as mayor of Atlantic City, Gilliam solicited donations for AC Starz from various individuals and entities under the false pretense that the contributions were for a youth basketball team and/or school supplies for underprivileged children. In reality, Gilliam used most of the money for personal expenses – including luxury clothing, expensive meals, and trips – that were completely unrelated to the operation of a youth basketball team. Gilliam defrauded the contributors of $87,215.
The charge to which Gilliam pleaded guilty is punishable by a maximum penalty of 20 years in prison and a potential fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 7, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI-Newark Atlantic City Resident Agency’s Atlantic City Public Corruption Task Force, which includes the Atlantic County Prosecutor’s Office, Cape May County Prosecutor’s Office and the Atlantic City Police Department, under the direction of Special Agent in Charge Ehrie; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Harry H. Rimm Esq., New York
Aroostook County Man Pleads Guilty to Child Sexual Exploitation OffensesRead the Press Release
Bangor, Maine: A former Fort Fairfield resident pleaded guilty today in federal court in Bangor to sexually exploiting a child and possessing child pornography, U.S. Attorney Halsey B. Frank announced.
According to court records, Kyle Sirois, 28, produced video files depicting child pornography sometime between March 2015 and October 2017. Sirois also possessed other images and videos of children engaging in sexually explicit conduct, which he had purposefully sought out and received through the internet. These images and videos depicted the sexual exploitation of prepubescent children under the age of 12.
Sirois faces 15–30 years in prison for sexually exploiting a child, and up to 20 years in prison for possessing child pornography. He also faces a $250,000 fine and from five years to a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Maine State Police Computer Crimes Unit, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Fort Fairfield Police Department investigated the case. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Antitrust Division Applauds Recognition of Attorney-Client Privilege by Mexico's Competition AgencyRead the Press Release
On Sept. 30, Mexico’s Federal Economic Competition Commission (COFECE) issued guidelines setting forth the agency’s procedures for treatment of attorney-client communications. Previously there had been no specific recognition of attorney-client privilege in Mexico. Protection of privileged material is an essential element of procedural fairness that is included both in the United States-Mexico-Canada-Agreement’s (USMCA’s) Competition Policy Chapter and in the Framework on Competition Agency Procedures (CAP) that the United States and over 60 other jurisdictions launched in May at the annual multilateral conference of the International Competition Network (ICN) in Cartagena, Colombia. The Antitrust Division applauds COFECE’s guidelines, issued after a public consultation.
“These guidelines will add to the due process rights of all firms operating in Mexico and help to harmonize the antitrust enforcement environment in North America,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “They will also encourage firms to seek legal advice and thus contribute to a more effective compliance regime in Mexico.”