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1 October 2019
Chicago Man Sentenced to 22 Years in Prison for Recruiting Minors to Engage in Sex ActsRead the Press Release
CHICAGO — A Chicago man has been sentenced to 22 years in federal prison for recruiting minors on Facebook to participate in sex acts with him and others.
BRYAN OSBORNE, 30, posed as a woman on Facebook to send thousands of messages to intended victims, most of them minors. Osborne enticed several children to agree to appear in sexually explicit films in exchange for a purported payment of thousands of dollars. He told the minors that they would first need to engage in sex acts with a male producer named “Trey,” purportedly so that “Trey” could make sure the minors were suitable for filming. Several of the minors agreed to the arrangement and engaged in sex acts with “Trey,” who turned out to be Osborne.
Osborne admitted to engaging in sex acts or attempting to engage in sex acts with 14 minor victims. Osborne often engaged in the sex acts with the minors inside and outside of a building in the Austin neighborhood on Chicago’s West Side. He later fabricated various reasons for why the minors could not be paid.
Osborne pleaded guilty in 2017 to sex trafficking of a minor by force, fraud or coercion. U.S. District Judge Sara L. Ellis on Monday sentenced Osborne to 22 years in prison, to be followed by 12 years of supervised release after imprisonment, and ordered him to pay restitution of $142,481 to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI; Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division; and Eddie Johnson, Superintendent of the Chicago Police Superintendent. Members of FBI Chicago’s Child Exploitation and Human Trafficking Task Force assisted in the investigation. The government is represented by Assistant U.S. Attorney Michelle Petersen.
According to evidence in the case, Osborne used various online personas to target children. Osborne told some of the minors that they could be paid larger sums if they referred even younger children to him for participation in the purported films, including victims under the age of 12.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
Cedar Rapids Man Who Led Police on Two Pursuits Sentenced to over Sixteen Years in Federal Prison for Distributing HeroinRead the Press Release
A Cedar Rapids man, responsible for selling over 480 grams of heroin, was sentenced September 30, 2019, to 200 months in prison.
Lloyd Koger, age 42, from Cedar Rapids, Iowa, received the prison sentence after a December 28, 2018 guilty plea to distribution of heroin after a prior felony drug conviction.
Information disclosed at sentencing and at his plea hearing showed that Koger was convicted in 1995, 1999, and 2004 of felony drug offenses in Illinois. During one such offense, Koger was found in possession of 170 baggies of heroin within 1,000 feet of a school. In 2016, Koger started selling heroin in the Cedar Rapids area. At times, he was selling daily and people would line up to get heroin from him. In February 2018, Koger led police on a pursuit after Cedar Rapids police officers attempted to stop the car he was driving. Koger eventually came to a stop. Officers located over $3,000 in drug proceeds on him.
On August 3 and August 9, 2018, Koger sold heroin to a confidential informant. In August 2018, Koger again led officers on another pursuit after Cedar Rapids police officers tried to stop the car he was driving. Koger drove up to 80 miles per hours through residential areas of Cedar Rapids. He eventually came to a stop after colliding with another vehicle. No one was injured in the crash. Koger had over $9,000 on him at that time.
In total, Koger was responsible for selling over 480 grams of heroin in the Cedar Rapid area. Koger has 17 criminal convictions going back to the age of 17.
Koger was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Koger was sentenced to 200 months’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and was investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department, Iowa Division of Narcotics Enforcement, Marion Police Department, Linn County Sheriff’s Department, Johnson County Drug Task Force, and the Drug Enforcement Agency.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00093.
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Braddock Man Sentenced to 5 Years in Prison for Possessing a Fentanyl AnalogueRead the Press Release
PITTSBURGH, Pa. – A former resident of Braddock, Pennsylvania, has been sentenced in federal court to a term of imprisonment of five years (60 months), to be followed by four years of supervised release on charges of possession with intent to distribute 10 grams or more of an analogue of fentanyl, United States Attorney Scott W. Brady announced today.
Senior United States District Court Judge David S. Cercone imposed the sentence on Trevon Woodson, 22. According to information presented to the court, Lynell Guyton is the main target of the investigation. From May 2017 until August 2017, he utilized various individuals to package drugs for him. Guyton purchased large quantities of fentanyl analogues from overseas purveyors to sell locally.
Trevon and his twin brother Drevon are Guyton’s cousins who also packaged narcotics for him. On July 10, 2017, the Woodsons and their friend were subjected to a traffic stop in the City of Pittsburgh. Trevon Woodson was sitting in the back seat, kicking at a blue plastic shopping bag at his feet. After searching the vehicle, officers found the shopping bag that was at Trevon Woodson’s feet, and discovered that it contained 16 bricks plus two stamp bags, marked "Louis Vuitton" in black ink. That was one of the three stamps distributed by Guyton. The substances tested positive for over 10 grams of cyclopropyl fentanyl.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The U.S. Immigration and Customs Enforcement’s (ICE)/ Homeland Security Investigations (HSI), assisted by the United States Postal Inspection Service, the Pennsylvania State Police and the Pittsburgh Bureau of Police, including the Pittsburgh Police SWAT Team, conducted the investigation leading to the Indictment in this case.
Bergen County Man Admits Money LaunderingRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted conspiring to launder the proceeds of narcotics activity, U.S. Attorney Craig Carpenito announced.
Bobbie L. Henderson III, 36, of Edgewater, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of conspiracy to launder monetary instruments.
According to the documents filed in this case and statements made in court:
From 2017 through May 23, 2019, Henderson conspired with others to launder the proceeds of narcotics distribution, with the intent to promote the distribution of narcotics. Henderson further admitted possessing more than $850,000 in furtherance of this conspiracy. These funds were seized by law enforcement during the course of the investigation.
Conspiracy to launder monetary instruments is punishable by a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the value of the property involved in the transaction, whichever is greater. Sentencing is scheduled for Jan. 8, 2020.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New York Division, under the direction of Special Agent in Charge Ray Donovan, with the investigation. Today’s guilty plea is the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA). 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.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA, the New York City Police Department, the New York State Police, Immigration and Customs Enforcement – Homeland Security Investigations, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime and Drug Enforcement Task Force.
Defense counsel: Scott E. Leemon Esq., New York
Belmont County, Ohio man indicted on fentanyl chargeRead the Press Release
WHEELING, WEST VIRGINIA – Nathan Parker, of Martins Ferry, Ohio, was indicted today on a fentanyl distribution charge, U.S. Attorney Bill Powell announced.
Parker, age 39, was indicted on one count of “Distribution of Fentanyl within 1,000 feet of a Protected Location.” Parker is accused of selling fentanyl near Madison Elementary School in July 2019 in Ohio County.
Smith faces at least one year and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Barrington Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONCORD – Thomas Whitney, 39, of Barrington, New Hampshire, pleaded guilty in federal court to production of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between a date unknown and September 19, 2018, Whitney produced visual depictions of a minor engaging in sexually explicit conduct using a cellular telephone.
Whitney is scheduled to be sentenced on January 13, 2020.
“Protection of children is a high priority for the U.S. Attorney’s Office,” said U.S. Attorney Scott Murray. “We will continue to work closely with the FBI and all of our law enforcement partners to safeguard young people.”
“Mr. Whitney is finally accepting responsibility for his heinous actions—coercing a five-year-old child into sexually explicit conduct,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will continue to do everything in its power to stop children from being exploited and bring to justice those responsible for terrorizing them.”
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Atlantic Beach Man Sentenced to More Than Three Years in Federal Prison for Failing to Register as A Two-Time Convicted Sex OffenderRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Jimmie Dwight Whitfield (43, Atlantic Beach) to 37 months in federal prison for failing to register as a sex offender after absconding from supervision in Georgia and establishing residence in Florida. Whitfield was also sentenced to a 5-year term of supervised release and required to register as a sex offender. He has been in custody since his arrest on October 25, 2018.
According to court documents, in 1995, Whitfield was convicted of sexually assaulting a 4-year-old child in Jacksonville. In 2006, he was convicted of sexual battery and sodomy against a mentally challenged adult in Valdosta, Georgia. Following his release from prison, Whitfield resided at a motel in Valdosta while serving a term of supervised probation. In March 2018, he cut off his ankle monitor, fled to Florida, and established a residence in Atlantic Beach. Whitfield failed to register as a sex offender in Florida as required by federal and state law. On October 25, 2018, he was arrested at his home in Atlantic Beach for violating his probation. During an interview with law enforcement, he admitted that he had cut off his ankle monitor and that he knew he was not allowed to leave Georgia without permission.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the United States Marshals Service, the Lowndes County (Georgia) Sheriff’s Office, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Armed Robber Sentenced to 30 Years in Federal PrisonRead the Press Release
SHREVEPORT, La. – A man who robbed a Burger King shift manager at gunpoint was sentenced September 30, 2019, to spend 30 years in federal prison announced United States Attorney David C. Joseph. Ivory Carl Myles, 30, of Shreveport, Louisiana, was sentenced by Chief U.S. District Judge S. Maurice Hicks Jr., for interference with commerce by robbery and use of a firearm during a crime of violence. Myles was also sentenced to five years of supervised release following confinement. The defendant pleaded guilty on December 13, 2018.
On July 21, 2017, around 3:30 a.m., while Ivory Myles was working at a Bossier City, Louisiana, Burger King restaurant, he entered the safe where the shift manager was making a cash drop, turned off the lights and put a gun to her head. He then told her to give him the money and threatened to kill her. Myles fled the scene in a vehicle and forced the victim at gun point to leave the Burger King with him. He made her drive while he sat in the back seat. On the way to Houston, Texas, he had her stop the vehicle in a parking lot and he sexually assaulted her. He then had her stop at a hotel where he sexually assaulted her again. Myles eventually released the victim in Houston, and was later apprehended by police in Beaumont, Texas, following a high-speed chase.
During a search of the vehicle, officers recovered a Walther .22-caliber handgun loaded with 11 hollow-point bullets and one bullet in the chamber.
The FBI and ATF investigated the case. Assistant U.S. Attorneys Tiffany E. Fields and Allison D. Bushnell prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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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Armed Drug Dealer SentencedRead 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 Demetrius Jackson, 43, of Rochester, NY, who was convicted of possession with intent to distribute cocaine, and possession of a firearm and ammunition by a convicted felon, was sentenced to serve 51 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that Jackson was arrested after police officers served a court-authorized search warrant at his residence on Wadsworth Street in Rochester, and found controlled substances and a loaded firearm.
While searching the location, police officers found a green container with 10 small zip-lock bags of cocaine in a bedroom which Jackson later admitted belonged to him. In the same bedroom, secreted in a crawl space, officers found a Taurus .45 caliber semiautomatic handgun which was loaded with 11 rounds of ammunition. In the living room, officers found a black container with additional quantities of cocaine, heroin and marijuana. A digital scale, typically used to weigh drugs for distribution, was located on a kitchen counter.
Jackson spoke with officers after he was arrested and admitted he was selling cocaine through a window in the residence. He said he had been selling cocaine for several weeks to earn money and acquired the handgun by exchanging cocaine for it.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Allenwood Federal Prison Inmate Sentenced for Contraband PossessionRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 30, 2019, Ruben Esparza, an inmate formerly of the United States Penitentiary Allenwood, was sentenced to six months’ imprisonment by United States District Court Judge Mathew W. Brann for possession of contraband.
According to United States Attorney David J. Freed, on June 27, 2015, Esparza was found in possession of heroin while he was an inmate at USP Allenwood. The prison sentence runs consecutively to Esparza’s present federal sentence imposed for drug trafficking.
The investigation was conducted by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Assistant U.S. Attorney Geoffrey W. MacArthur and Special Assistant United States Attorney Michael Figgsganter prosecuted the case.
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Akron Man Indicted on Drug Trafficking ChargeRead the Press Release
PITTSBURGH, PA - A resident of Akron, Ohio, has been indicted by a federal grand jury in Pittsburgh on a charge of drug trafficking, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on Sept. 25 and unsealed today, named Oshay Love, 28, as the sole defendant.
According to the indictment, on July 23, 2019, Love possessed with the intent to distribute fentanyl, and over $700 in cash that was seized from the defendant’s red Chevy Blazer. The court was further informed that the defendant attempted to evade arrest in the parking lot of the Monroeville Hampton Inn by fleeing in his vehicle, damaging multiple police vehicles, and jumping off a cliff before he was apprehended.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania Office of the Attorney General, and the Monroeville, Elizabeth, and Wilkinsburg Police Departments conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
30 September 2019
Wilmington Gang Member Receives 10 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, Chief United States District Judge Terrence W. Boyle sentenced TAVEON NIXON, 21, of Wilmington, North Carolina to 120 months imprisonment, followed by 3 years of supervised release.
On December 20, 2018, a Grand Jury sitting in the Eastern District of North Carolina returned a four-count indictment, charging NIXON with three counts of distribution of heroin and one count of possession with intent to distribute a quantity of heroin and quantity of cocaine base (crack). On May 20, 2019, NIXON pled guilty to distribution of a quantity of heroin and possession with intent to distribute a quantity of heroin and a quantity of cocaine base (crack).
According to the investigation, on November 29 and December 4, 2018, the Wilmington Police Department made two controlled purchases of heroin from NIXON in the area of South 9th Street in Wilmington.
On December 10, 2018, officers with the Security Threat Unit of the North Carolina Department of Public Safety conducted a warrantless probationary search at the NIXON’s residence in Wilmington. NIXON was on probation for possession of a firearm by a convicted felon. Law enforcement found heroin, crack cocaine, and $1,400 cash. NIXON was arrested as a result. Following this arrest, NIXON removed an ankle monitor in an attempt to evade law enforcement. According to law enforcement, NIXON was a validated gang member.
On January 17, 2019, NIXON had an outstanding federal arrest warrant. Law enforcement received information that NIXON was the passenger in a car with other gang members. Task Force Officers of the Federal Bureau of Investigation (FBI) and members of the New Hanover County Sheriff’s Office attempted to make a traffic stop at a gas station in New Hanover County. The driver struck a law enforcement car, while NIXON fled on foot. NIXON was arrested following a foot chase. Law enforcement found more than 250 bindles of heroin in the car and United States Currency. The driver and another passenger are scheduled to be sentenced in federal court later this month.
This case is part of an FBI-led Organized Crime Drug Enforcement Task Force (OCDETF) operation named “Dodge Ball.” This operation is focused on members of the Nine Trey sect of the United Blood Nation, a violent gang in Wilmington, North Carolina involved in the distribution of heroin, possession of firearms and associated violence. This is a joint investigation by the FBI Safe Streets Task Force (Gang Unit), Bureau of Alcohol, Tobacco, Firearms and Explosives, Wilmington Police Department, and New Hanover Sheriff’s Office. The FBI Safe Streets Task Force and ATF utilize resources from federal, state, and local law enforcement in order to efficiently and effectively target and combat criminal gangs and drug trafficking organizations operating in coastal southern North Carolina. A key component of federal task force’s success involves the use of task force officers from local law enforcement who have direct knowledge of the criminal gang activity in their areas.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Federal Bureau of Investigation Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, New Hanover County Sheriff’s Office, Wilmington Police Department, and North Carolina State Bureau of Investigation investigated this case. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Wichita Man Appears in Federal Court on Charge of Escaping CustodyRead the Press Release
WICHITA, KAN. - A Wichita man appeared in federal court here today on a charge of escaping custody, U.S. Attorney Stephen McAllister said.
Wade Dunn, 30, Wichita, Kan., is charged with one count of escape from custody. A criminal complaint filed in federal court alleges Dunn escaped from the Mirror, Inc., Residential Re-entry Center in Wichita.
In July 2017, Dunn was sentenced to 33 months in federal prison after being convicted on a charge of unlawful possession of a firearm by a convicted felon. In July 2019, the U.S. Bureau of Prisons transferred him to the residential re-entry center in Wichita to serve the remainder of his sentence.
On Sept. 23, 2019, Dunn left the halfway house on a pass at 9:30 a.m. and failed to return at 5:30 p.m. that day.
On Sept. 28, 2019, Wichita police announced they had arrested Dunn in connection with a random stabbing on Sept. 23 in the 7400 block of East 17th Street North.
Dunn will be held pending trial.
If convicted, he could face up to five years in federal prison and a fine up to $250,000. The Wichita Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Matt Treaster and Assistant U.S. Attorney David Lind are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Wetzel County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Robert Lee Lemasters, of Wheeling, West Virginia, was sentenced 15 months for a firearms charge, U.S. Attorney Bill Powell announced.
Lemasters, age 56, pled guilty to one count of “Unlawful Possession of a Firearm” in July 2019. Lemasters, who is prohibited from having a firearm because of a prior conviction, admitted to having a 9mm caliber pistol and 16 rounds of ammunition in Wetzel County in October 2018.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, West Virginia State Police, and the Paden City Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Westfield Man Sentenced to 9 years in PrisonRead the Press Release
HAMMOND - William Moit, age 72, who was formerly a resident of Rensselaer, Indiana -- but resided in Westfield, Indiana when arrested -- was sentenced before United States District Court Judge Philip P. Simon after his plea of guilty to receiving child pornography, announced U.S. Attorney Kirsch.
Moit was sentenced to serve a term of 108 months in prison followed by 10 years of supervised release and he was ordered to pay $5,000 in restitution.
According to documents in this case, Moit, who was convicted in Jasper County, Indiana in 2000 for possessing child pornography and contributing to the delinquency of a minor, was charged, in the federal indictment in 2017, with receiving child pornography. Between November 2014 and October 2015, Moit knowingly used a computer to receive 111 images and 157 videos depicting minors, some of which were under 12 years of age, engaging in sexually explicit conduct, including sadistic or masochistic conduct or other depictions of violence.
This case is the result of the investigative efforts of the Federal Bureau of Investigation and the Indiana State Police. The case was handled by Assistant U.S. Attorney Jill R. Koster.
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Weakley County Man Sentenced to 140 Months in Federal Prison for Drug and Gun OffensesRead the Press Release
Jackson, TN – Wesley Wilson, Jr., 43, has been sentenced to 140 months in federal prison for conspiracy to distribute a controlled substance and possession of a firearm during a drug trafficking crime. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on April 17, 2018 the Weakley County Sheriff’s Office responded to a complaint of child abuse. When law enforcement discovered Wilson and his wife Lacy traveling in a red truck, they were stopped and asked to return home. Upon approaching the truck, officers smelled the strong odor of marijuana coming from inside the vehicle and on Wilson’s person. Wilson acknowledged that he had marijuana cigarettes in his pocket. The defendant gave consent for the officers to search his truck and property, including his house and barn. The officers located a black shaving style kit bag in the bed of the truck that smelled strongly of marijuana. Inside was a large quantity of marijuana and approximately two ounces of methamphetamine, in crystal form. Both Wilsons were taken into custody.
Law enforcement located more methamphetamine inside the residence and barns in numerous small packages, along with scales and packaging materials, 4 ounces of methamphetamine, two ounces of marijuana, and numerous firearms, including an AR-15 and a .380 caliber semi-automatic pistol.
On September 24, 2019, U.S. Chief District Court Judge S. Thomas Anderson sentenced Wilson to 140 months in federal prison followed by 5 years supervised release. Wilson is also facing state charges of possession with intent to distribute methamphetamine, marijuana and drug paraphernalia.
U.S. Attorney D. Michael Dunavant said, "Armed drug dealers are a double threat, and this case demonstrates our focus on the priority areas of firearms and narcotics cases that impact public safety in our rural communities. We are pleased that this dangerous offender has been removed from the streets for over 10 years, and we appreciate the partnerships with our local law enforcement agencies in Weakley County."
This case was investigated by the Weakley County Sheriff’s Office.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Waterbury Man Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAEKWON OVERSTREET, 24, of Waterbury, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on February 19, 2019, as part of a special parole compliance check, law enforcement officials searched Overstreet and found that he had in his possession a loaded Springfield 9mm firearm.
Overstreet’s criminal history includes a state felony conviction for conspiracy to commit robbery in the first degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Meyer scheduled sentencing for January 13, 2020, at which time Overstreet faces a maximum term of imprisonment of 10 years.
Overstreet has been detained since his arrest on February 19, 2019.
This matter has been investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Veteran’s widow charged with defrauding VARead the Press Release
HOUSTON – A 49-year-old resident of Katy has been indicted for defrauding the Department of Veterans Affairs (VA) of more than $600,000, announced U.S. Attorney Ryan K. Patrick.
Tammy Wilson made her initial appearance today before U.S. Magistrate Judge Nancy Johnson.
A federal grand jury returned the three-count indictment Sept. 19, alleging she committed one count each of mail fraud, health care fraud and making a false statement relating to health care matters. She is set for trial before Chief U.S. District Judge Lee H. Rosenthal.
According to the charges, Wilson is a widow of military veteran. Her husband allegedly died of service related injuries, after which she was eligible to participate in the Civilian Health and Mental Program of the Department of Veterans Affairs (CHAMPVA) Program. CHAMPVA is headquartered in Denver, Colorado, and is a comprehensive health care program in which the VA reimburses for eligible out-of-pocket prescription expenses, according to the indictment.
From 2013 through 2017, Wilson allegedly submitted falsified prescription summaries to the CHAMPVA Program. In the scheme, according to the charges, Wilson claimed to have paid for hundreds of thousands of dollars worth of prescription medications. The VA then allegedly paid Wilson more than $640,000 for those claims. However, the indictment alleges the pharmacies never dispensed the prescriptions as she had claimed.
During the course of the scheme, Wilson was the biggest recipient of CHAMPVA funds in the world, according to the charges.
If convicted, Wilson faces up to 20 years in federal prison and a possible $250,000 maximum fine.
The VA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Heyward Carter is prosecuting the case.
An indictment is a formal accusation of criminal conduct.
A defendant is presumed unless and until convicted through due process of law.United States Recovers over $137,000 Resolving Allegations that Federal Gas Lessee Violated the False Claims ActRead the Press Release
GREAT FALLS— U.S. Attorney Kurt Alme today announced the settlement of a civil lawsuit and recovery of $137,500 in an oil and gas royalty dispute involving federal leases.
The settlement arises from allegations that Charles Janksy, and his two companies, Somont Oil Company and Ferdig Oil Company, violated the federal False Claims Act by failing to pay money owed to the Department of the Interior’s Office of Natural Resources Revenue (ONRR) for natural gas produced from federal leases located in Montana.
Jansky owns or is the controlling shareholder in both Somont and Ferdig. Somont holds a number of federal gas leases. The leases obligate Somont to pay the United States royalties on the value of the gas it produces. Each month, companies with federal leases are required to report to ONRR the amount of royalties due and then pay the amount owed.
The settlement resolves claims by the United States that Jansky and Somont failed to properly pay their full royalty obligation for gas produced from Somont’s federal leases in Montana from January 1, 2010 through December 31, 2016. The United States alleged that Somont and Jansky improperly treated their dealings with Ferdig as arms-length transactions, when in fact, Somont and Ferdig share common ownership. The United States alleged this caused Somont to knowingly underreport its royalty obligations.
“Companies that extract resources from federal lands must pay what they owe. We will hold accountable any company that tries to avoid its obligations,” said U.S. Attorney Alme.
“The obligation to properly pay federal mineral royalties is essential to the responsible development of oil and gas from public lands, and we are committed to work with our partners at the Department of Justice, Office of Natural Resources Revenue, and the Office of the Solicitor, to ensure that companies operating federal leases meet their legal responsibilities,” said Ron Gonzales, Special Agent in Charge of the Department of the Interior-Office of Inspector General’s Energy Investigations Unit.
The U. S. Attorney’s Office acknowledges the cooperation and teamwork demonstrated by governmental entities involved in today’s recovery. Special thanks are extended to the Office of Natural Resources Revenue, the Department of the Interior’s Office of the Solicitor, and the Department of the Interior’s Office of Inspector General.
Assistant U.S. Attorney Megan L. Dishong represented the United States.
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U.S. Attorney’s Guardians Project Results in Multiple Pleas and Sentencings for Theft, Embezzlement, Bribery & CorruptionRead the Press Release
United States Attorney Ron Parsons announced the resolution of several cases, all of which are separately noted below, that were brought pursuant to the U.S. Attorney’s Office’s Guardians Project. The Guardians Project is a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities.
The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating federal agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
“These cases demonstrate the success that the Guardians Project has had since its inception in South Dakota’s U.S. Attorney’s Office,” said U.S. Attorney Ron Parsons. “The Project has secured dozens of convictions involving millions of dollars that were unlawfully diverted by the few who were in positions of trust and power. As a result of the hard work of this Office and its federal partners, tax-payer funds are being safeguarded and that money is being returned to the communities that need it the most.”
Two Former Crow Creek Tribal Court Clerks
Sentenced for Embezzlement
Kathleen Goodlow, age 68, of Ft. Thompson, South Dakota, and Christine Reed, age 41, of Pukwana, South Dakota, were sentenced for their respective guilty pleas to Embezzlement and Theft from an Indian Tribal Organization. U.S. District Judge Roberto A. Lange presided over the sentencing hearings.
Goodlow was sentenced to federal custody for 1 month and to 2 years of supervised release. She was also ordered to pay restitution in the amount of $5,255, joint and several with Reed. Reed was sentenced to 2 years of probation and ordered to pay the same amount of restitution as Goodlow. Each was ordered to pay a special assessment of $100.
According to court documents, from August 2017 through October 2018, Goodlow and Reed embezzled and converted to their own use more than $5,000 of monies, funds, credits, goods, assets, and other property belonging to the Crow Creek Tribal Court, an Indian Tribal Organization.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Business Owner Pleads Guilty to Bribery Concerning
Programs Receiving Federal Funds
John Thomas German, Jr., age 35, of Peever, South Dakota, pleaded guilty to one count of bribery concerning programs receiving federal funds. He entered his guilty plea before U.S. District Judge Charles B. Kornmann on September 23, 2019.
According to court documents, John Thomas German, Jr., formed a business on December 15, 2016, called Tatanka Contracting. On October 27, 2017, Dakota Nations Development Corporation contracted with Tatanka Contracting to do the earthwork associated with the elderly village project. The contract was for a guaranteed price of $1,070,740, although a change order increased the total of the contract to $1,129,679. On November 6, 2017, German corruptly gave, offered, and agreed to give a thing of value to an agent of a tribal organization, Dakota Nations Development Corporation, intending to influence and reward that agent in connection with a transaction and series of transactions of the Dakota Nations Development Corporation involving $5,000 or more.
The maximum penalty upon conviction is up to 10 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The sentencing hearing will be held at the federal courthouse in Aberdeen on December 16, 2019.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
Business Owner Pleads Guilty to Embezzlement from
Sisseton-Wahpeton Tribal Organizations
Dustin Martin Kirk, age 46, of Sisseton, South Dakota, pleaded guilty to one count of felony embezzlement and theft from an Indian Tribal Organization. Kirk entered his guilty plea before U.S. District Judge Charles B. Kornmann on September 23, 2019.
According to court documents, in or about August 2016 and December 2018, in the District of South Dakota, Dustin Martin Kirk and his business embezzled, stole, and converted more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to Dakota Nation Development Corporation and the Sisseton-Wahpeton Housing Authority, both of which are entities of the Sisseton-Wahpeton Oyate Sioux Tribe and Indian Tribal Organizations.
The maximum penalty upon conviction on each count is up to 5 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victim’s Fund. Restitution may also be ordered. The sentencing hearing will be held at the federal courthouse in Aberdeen on May 11, 2020.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
Former Tribal Supervisor Pleads Guilty to Embezzlement
from Sisseton-Wahpeton Tribal Organization
Jerome Renville, age 42, of Peever, South Dakota, pleaded guilty to one count of misdemeanor embezzlement and theft from an Indian Tribal Organization. Renville entered his guilty plea before U.S. Magistrate Judge William D. Gerdes on September 16, 2019.
Renville embezzled, willfully misapplied, willfully permitted to be misapplied monies, funds, credits, goods, assets, and other property belonging to the Sisseton-Wahpeton Oyate Sioux Tribe, an Indian Tribal Organization. Renville was the Supervisor of the Tribe’s Facilities Maintenance for over 5 years. While serving in that position, Defendant willfully misapplied money and funds belonging to the Tribe; Defendant used and converted those monies and funds for his own personal use.
The maximum penalty upon conviction on each count is up to 5 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victim’s Fund. Restitution may also be ordered. The sentencing hearing will be held in the federal courthouse in Aberdeen on December 13, 2019.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Two Men Sentenced on Lake County Heroin ChargeRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Cesar Osiris DeLeon-Castillo (36, Clermont) and Jefry Agustin Valerio-Perez (39, Orlando) to 5 years and 4 years and nine months in federal prison, respectively, for possession with the intent to distribute one kilogram of heroin. DeLeon-Castillo and Valerio-Perez had pleaded guilty in June 2019.
According to court documents, DeLeon-Castillo and Valerio-Perez were arrested on March 14, 2019, in the parking lot outside a barber shop in Clermont, where DeLeon-Castillo had worked. At the time, the men were attempting to complete a drug transaction involving $56,000 in exchange for a kilogram of heroin that they had in their possession. DeLeon-Castillo and Valerio-Perez were taken into custody at the scene.
This case was investigated by the Drug Enforcement Administration with support from the Volusia County Sheriff’s Office and the Lake County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
Two Brazilian Citizens Indicted for Alien SmugglingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that two Brazilian citizens living in Canada, Tiago Mello-Lima, 32, and Renan Portela Bandeira De Souza, 32, have been charged by a federal grand jury in a 13-count indictment which charges them with conspiracy to bring aliens to the United States, alien smuggling for commercial advantage and private financial gain, and bringing an alien to the United States at a place other than a designated port of entry. Mello-Lima faces a mandatory minimum sentence of five years in prison and a maximum of 15 years if convicted. De Souza faces a mandatory minimum sentence of three years in prison and a maximum of 10 years if convicted.
Assistant U.S. Attorney Charles Kruly, who is handling the case, stated that according to the indictment, between approximately August 2018 and April 28, 2019, the defendants conspired together and with others to bring aliens to the United States, knowing that these individuals were aliens, at places other than designated ports of entry. Mello-Lima allegedly smuggled six aliens to the United States for commercial advantage and private financial gain, while De Souza is accused of smuggling two aliens into the United States.
Renan Portela Bandeira De Souza was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on October 10, 2019. Tiago Mello-Lima will be scheduled for arraignment at a later date.
The indictment is the result of an investigation by U.S. Border Patrol, under the direction of Chief Patrol Agent Eduardo Payan, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Timber thieves indicted in conspiracy that started 3,300-acre forest fireRead the Press Release
Seattle – Two former Hood Canal area residents are under arrest on an indictment charging eight federal felonies related to their scheme to steal the wood of big leaf maple trees from Olympic National Forest, announced U.S. Attorney Brian T. Moran. The indictment alleges that between April and August 2018, JUSTIN ANDREW WILKE and SHAWN EDWARD WILLIAMS felled and sold publicly-owned maple trees. The indictment alleges that, in August 2018, the defendants started a forest fire when they set fire to a bee’s nest in a tree they were trying to unlawfully harvest from the National Forest land. The resulting fire – known as “The Maple Fire” – burned more than 3,300 acres between August and November 2018 and cost approximately $4.5 million to contain.
According to the indictment, as early as April 2018, the defendants traveled into areas of the Olympic National Forest to scout for big leaf maple trees that might contain ‘figured’ wood – wood that is highly prized for musical instruments. The men looked for maple trees they could steal in areas around Elk Lake and Lena Lake. The men then cut the maple trees, took blocks of wood from the trees to a property near Lilliwaup, Washington, and sold the blocks to a lumber mill in Tumwater, Washington. The conspirators presented the mill owner with permits claiming the maple had been harvested on private land, when in fact it had been illegally cut and stolen from the National Forest.
In early August 2018, after selling thousands of dollars’ worth of maple to the mill, WILKE and WILLIAMS identified a big leaf maple they wanted to steal. However, the large tree contained a bee’s nest, which made it difficult to fell. After unsuccessfully attempting to get rid of the bees with wasp killer, the men decided to kill the bees by burning the nest. WILKE poured gasoline on the nest and lit it on fire. The men tried to put the fire out with water bottles but were unsuccessful. The fire grew into a 3,300-acre forest fire, damaging public lands in Olympic National Forest and costing $4.5 million to extinguish.
WILKE is charged with eight federal felonies: Conspiracy; two counts of depredation of public property; theft of public property; trafficking in unlawfully harvested timber; attempted trafficking in unlawfully harvested timber; setting timber afire; and using fire in furtherance of a felony. WILLIAMS is charged with conspiracy, depredation of government property, and attempted trafficking in unlawfully harvested timber.
WILKE will appear in U.S. District Court in Tacoma at 2:30 today. WILLIAMS is in state custody in California.
Conspiracy, setting timber afire, and trafficking in unlawfully harvested timber are each punishable by up to five years in prison and a $250,000 fine. Theft of public property and depredation of government property are punishable by up to ten years in prison and a $250,000 fine. Using fire in furtherance of a felony is punishable by a mandatory ten-year sentence of imprisonment.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the United States Forest Service. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Will Dreher.
wilke-williams_indictment.pdfSpringfield Man Sentenced to 27 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for his role in a conspiracy that distributed 45 kilograms of methamphetamine in southwest Missouri.
Kenneth R. Friend, 48, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 27 years in federal prison without parole.
Friend pleaded guilty on April 5, 2019, to participating in the conspiracy to distribute methamphetamine in Greene, Polk, Christian, Jasper, Laclede, and Webster Counties from June 1, 2013, through Nov. 29, 2014. Friend also pleaded guilty to money laundering by engaging in monetary transactions to promote unlawful activity.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The investigation resulted in the indictment of 29 defendants. Friend is among 28 defendants who have pleaded guilty in this case and have been sentenced.
Friend admitted the conspiracy was responsible for the distribution of more than 45 kilograms of methamphetamine.
During the conspiracy, Friend obtained large amounts of methamphetamine from various sources. For example, Friend paid one source $20,000 in early November 2014 for two pounds of methamphetamine. Friend also intended to purchase a large amount of methamphetamine from one of his sources on Nov. 27, 2014. As part of the investigation, law enforcement officers arrested Friend, his then-girlfriend and one of his suppliers. During the execution of a federal search warrant at the supplier’s residence in Springfield, agents found approximately $20,000 and approximately five and a half pounds of methamphetamine. Friend admitted that he intended to purchase at least two of the five and a half pounds seized from this source of supply. Agents also seized $34,310 from Friend, which he had intended to use to purchase the two pounds of methamphetamine.
Agents also seized Friend’s 1992 Harley Davidson motorcycle, which he used to distribute methamphetamine and which he purchased with proceeds from the sale of methamphetamine. Friend must forfeit the cash that was seized and the motorcycle to the government.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorneys Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Scammer who re-victimized unhappy investors sentenced to 30 months in prisonRead the Press Release
Seattle – A former Seattle resident who relocated to Laguna Niguel, California in the midst of his fraud scheme, was sentenced today in U.S. District Court in Seattle to 30 months in prison for mail fraud, announced U.S. Attorney Brian T. Moran. Between 2011 and 2014, TROY CLINTON VAN SICKLE, 48, fraudulently operated an asset recovery business that defrauded unhappy investors who previously had lost money they had invested with a Bellevue investment company. At sentencing, U.S. District Judge James L. Robart found that VAN SICKLE, had been living a life of crime since he was 21, and had shown no respect for the law.
According to records filed in the case, during May and June 2011, VAN SICKLE represented to the unhappy investors that he had a company, Troy C. Van Sickle Consulting and Collections, and that for a fee he could help them recover their lost funds. VAN SICKLE falsely claimed that he had helped other investors recover large sums, and, in order to win investors’ trust, VAN SICKLE made various promises, including entering into a romantic relationship with one of the investors.
In February of 2012, VAN SICKLE moved to California. After he moved, VAN SICKLE’s agent told the investors that if they loaned him $75,000, he would (1) use the money in order to recover their lost investment, and (2) repay the $75,000 in 30 days. In fact, VAN SICKLE planned to use the money for his own purposes, including paying his rent through the end of the year, and did not intend to repay the investors. In July 2013, after one of the investors who loaned VAN SICKLE funds repeatedly sought the return of the money he loaned VAN SICKLE, VAN SICKLE sent the investor an invoice with false charges purporting to explain how VAN SICKLE had used the loaned funds in order to try to recover the investor’s funds.
Over the course of the scheme, VAN SICKLE fraudulently took in $75,000. Under the terms of the Plea Agreement, in addition to repaying the investors that $75,000, VAN SICKLE has agreed to repay the investors an additional $175,000 in funds that he received from the investors.
The case was investigated by the FBI and the Washington State Department of Financial Institutions. The case is being prosecuted by Assistant United States Attorneys Arlen Storm and Andre Penalver
San Fernando Valley Swindler Sentenced to 20 Years in Federal Prison for Conning Elderly Victims Out of Their Homes and MoneyRead the Press Release
LOS ANGELES – A long-time con artist was sentenced today to 240 months in federal prison for running a multimillion-dollar real estate scam that conned elderly people out of their homes, gouging them with fraudulent threats of litigation and extorting monthly payments for illegal foreclosure and eviction delay.
Michael “Mickey” Henschel, 70, of Van Nuys, was sentenced by United States District Judge Virginia A. Phillips. A restitution hearing in this matter has been scheduled for December 2.
Henschel pleaded guilty on May 13 to one count of mail fraud after spending years filing fraudulent documents on homeowners’ properties, and then using the fraudulent filings and fraudulent litigation to steal money from victims, sometimes stealing homes outright, and other times extorting settlement payments in actual or threatened civil litigation.
Henschel – who used various aliases, including “Frank Winston,” “Steve Lopez” and “Ron Berman” – and his co-conspirators deceived vulnerable homeowners – typically elderly people in financial distress, some of whom spoke limited English. Henschel tricked the homeowners into signing fraudulent deeds on their properties with false promises that the deeds would help homeowners protect properties from creditors or enable them to get equity out of the properties. Unbeknownst to his victims, the deeds described fake loans that the homeowners were supposedly guaranteeing for third parties, and in signing the deeds, they were pledging their houses as collateral for these fake loans. Henschel used the fraudulent deeds to steal homes and money from the victims.
In total, the scheme generated more than $17 million in profits. Henschel’s fraudulent conduct also caused losses to mortgage lenders in connection with lawful foreclosure actions and to purchasers of foreclosed properties in depriving them of lawful possession to those properties.
Henschel’s criminal conduct devastated his victims, leaving some of them penniless. Many other victims had to face financial insecurity – even homelessness – in their old age as they struggled to pay for basic necessities such as food and clothing. Several victims lost homes that their families had owned for generations.
One victim, who spent her entire career teaching developmentally disabled students, purchased a home and spent decades paying down most of her mortgage, only to have Henschel and his co-conspirators fraudulently steal it from her.
The real estate fraud scheme had two parts: one involving property theft and litigation extortion, and the other involving illegal foreclosure and eviction delay.
In the property theft and litigation extortion part of the scheme, Henschel filed fraudulent documents on titles to homeowners’ properties and used these fraudulent filings to steal properties from some victims outright and to extort settlement payments from other victims in civil litigation. Henschel weaponized the state court litigation system against homeowners, using his specialized training and knowledge of the law (he attended law school but never was admitted to practice) to extort settlements from homeowners by dragging them through stressful lawsuits.
“Assault by legal paperwork, unscrupulous litigation tactics, and low-ball settlement demands were all part of the scheme, as victims often found it cheaper to pay defendant than to fight him, and defendant intentionally arbitraged the high cost of state court civil litigation to extort settlement payments,” the government wrote in its sentencing memorandum.
In the foreclosure rescue part of the scheme, Henschel and his co-conspirators used fraudulent filings to charge homeowners fees to delay foreclosure and eviction actions. Henschel and the others had homeowners sign fraudulent deeds that transferred interests to debtors in bankruptcy cases – but the bankruptcies were fraudulent and used solely as part of the fraudulent scheme, not as part of any genuine effort to restructure or eliminate debts.
Many of the fraudulent bankruptcies were filed in the names of fictional people and entities, and some involved stolen identities. Henschel and his co-conspirators sent fake deeds and fraudulent bankruptcy petitions to trustees to stop foreclosure sales. They delayed evictions in a similar way, mainly by filing fraudulent documents in state court unlawful detainer actions and then sending bogus documents to various county sheriff’s offices.
Henschel charged homeowners monthly fees for the illegal foreclosure- and eviction-delay services, collecting more than $7 million through this part of the scheme. The property theft portion of the scheme netted Henschel $10 million in ill-gotten gains.
A total of seven defendants linked to Henschel’s Van Nuys-based companies have been convicted of crimes related to the scheme. Those defendants are scheduled to be sentenced later this year.
The case against Henschel and the others are the result of an investigation by the Federal Bureau of Investigation, and the Federal Housing Finance Agency - Office of Inspector General. The United States Trustee’s Office for the Central District of California initially referred the matter for investigation and has provided substantial assistance. Also providing assistance during the investigation were the Alameda County District Attorney’s Office, the Los Angeles County Recorder’s Office, the Alameda County Recorder’s Office, and the San Diego County Recorder’s Office.
This case was prosecuted by Assistant United States Attorneys Kerry L. Quinn and Eddie A. Jauregui of the Major Frauds Section. The forfeiture part of the case is being handled by Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture Section.
San Antonio Man Sentenced to 15 Years in Federal Prison for Attempting to Solicit a Minor for SexRead the Press Release
In San Antonio today, Senior U.S. District Judge David A. Ezra sentenced Reynaldo Salinas of San Antonio to 15 years in federal prison followed by ten years of supervised release for attempting to coerce a minor into engaging in sexually explicit conduct, announced U.S. Attorney John F. Bash.
“I am proud that our office just took another child predator off the streets. I am also glad that increasing national attention is being focused on the problem of child sexual abuse in the United States. We need significantly greater efforts nationwide to fight this scourge,” stated U.S. Attorney Bash.
On June 27, 2019, a federal jury convicted the 27–year-old U.S. Army mechanic at Camp Bullis of one count of attempted enticement of a minor and one count of attempted transfer of obscene material to a minor. Evidence presented during trial revealed that in September 2017, Salinas engaged in online communications with someone he believed was a 14-year-old girl. During these online conversations, the defendant transmitted multiple nude photos of himself and expressed his desire to engage in sexual intercourse, as well as other sexually explicit behavior, with the minor. In reality, the defendant was communicating with an undercover federal agent.
Agents with the Air Force Office of Special Investigations investigated this case. Assistant U.S. Attorneys Bettina Richardson and Eric Yuen prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
Restaurant Owner Sentenced for Failing to File a Tax ReturnRead the Press Release
BOSTON – A Connecticut restaurant owner was sentenced on Friday, Sept. 27, 2019, in federal court in Springfield for failing to file tax returns.
Giuseppe Scuderi, 62, of West Suffield, Conn., was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison and ordered to pay $170,769 in restitution. In June 2019, Scuderi pleaded guilty to one count of failing to file a tax return for the year 2015, and his company, Scuderi’s Inc., pleaded guilty to five counts of filing false tax returns for the years 2010 through 2014. Scuderi and Scuderi’s Inc. were charged on May 3, 2019.
According to court documents, Scuderi was the owner of a Southwick restaurant that generated a substantial amount of cash sales. From 2010 to 2014, Scuderi took cash from the business, did not declare it as income, and kept two sets of books, which depicted both the actual sales of the business and the sales disclosed on his tax returns. As a result of his scheme, Scuderi failed to pay $170,769 in taxes to the government.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.
Repeat Offender Sentenced to Prison for Defrauding Social SecurityRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Malik Mustafa Al-Ameen (57, Summerfield) to 20 months in federal prison for theft of government funds. He was also ordered to pay the government $77,178 in restitution. Al-Ameen had pleaded guilty on July 1, 2019.
According to court records, Al-Ameen stole more than $77,000 from the Social Security Administration by submitting false documents regarding his eligibility for Supplemental Security Income (SSI) benefits. Al-Ameen had falsely claimed that he was single and owned no properties when, in fact, he was married and owned a rental property in West Palm Beach. Al-Ameen has more than 60 criminal state convictions in Florida, spanning 40 years, many of which involve fraud or stealing. This is his first federal conviction.
This case was investigated by the Social Security Administration. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
Principal of Cryptocurrency Escrow Company Indicted for $7 Million Fraudulent SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that a grand jury in the Southern District of New York has returned an indictment charging JON BARRY THOMPSON, a/k/a “J. Barry Thompson,” the principal of the cryptocurrency escrow company Volantis Escrow Platform LLC and the related company Volantis Market Making LCC (collectively “Volantis”) with commodities fraud and wire fraud offenses. As alleged, THOMPSON took over $7 million from two victim companies after making false promises in connection with Bitcoin transactions. THOMPSON was arrested in July based on a criminal complaint filed by this Office charging him with the same crimes. The case has been assigned to U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Jon Barry Thompson repeatedly lied to investors in cryptocurrencies about the safety of their investments made through his companies. As a result of Thompson’s lies, investors lost millions of dollars.”
In a separate civil action, the U.S. Commodity Futures Trading Commission (“CFTC”) today filed civil charges against THOMPSON.
As alleged in the Indictment and the criminal complaint previously filed in this case:[1]
THOMPSON claimed in promotional materials that Volantis “minimize[d] settlement default risk” in cryptocurrency transactions. THOMPSON claimed that because Volantis acted as a custodian of assets for “both sides of the transaction, there is no risk of default.”
In June and July 2018, THOMPSON made false statements to one victim company (“Company-1”) to induce Company-1 to send Volantis over $3 million to fund the purchase of Bitcoin for Company-1. THOMPSON falsely assured Company-1 that THOMPSON had the Bitcoin in hand and Company-1’s money could not be lost. Even though THOMPSON had told Company-1 that before any transaction, “cash is with me, coin is with me,” THOMPSON sent over $3 million of Company-1’s money to a third-party entity purportedly in exchange for Bitcoin without first receiving any of the Bitcoin in hand. After taking Company-1’s money, THOMPSON lied for days about the status of the transaction and the location of Company-1’s Bitcoin and money, which was never returned.
In July 2018, THOMPSON made false statements to another victim company (“Company-2”) to induce Company-2 to send Volantis over $4 million to fund the purchase of Bitcoin for Company-2. After receiving Company-2’s money, THOMPSON sent a substantial portion of the money to a third party without first receiving any Bitcoin in return. THOMPSON never provided Company-2 with any Bitcoin, nor did he return Company-2’s money. After receiving Company-2’s money, THOMPSON also lied to Company-2 about the location of the Bitcoin and the status of the transaction.
* * *
THOMPSON, 48, of Easton, Pennsylvania, is charged with two counts of commodities fraud, each of which carries a maximum sentence of 10 years in prison, and two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and also thanked the CFTC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes and Drew Skinner are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the Indictment, and the description of the Complaint and the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Portland Man Sentenced for Trafficking Cocaine and OxycodoneRead the Press Release
Bangor, Maine: A Portland man was sentenced today in federal court in Bangor for conspiring to distribute cocaine and oxycodone, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Nancy Torresen sentenced Ross Thompson, 33, formerly of Rangeley, Maine, to time served (one day) and three years of supervised release. Thompson pleaded guilty in March 2019.
According to court records, between January 2016 and July 2016, Thompson and others conspired to distribute cocaine and oxycodone in Franklin County. Thompson distributed drugs supplied by Jordan Richard, who was sentenced to over 13 years in federal prison in January 2019.
Following an incident on July 28, 2016, when Richard shot and killed one of two men who came to his Rangeley residence to rob him, Thompson spirited a large quantity of drugs out of the residence before law enforcement arrived on the scene. Thompson subsequently distributed the drugs to another dealer Richard was supplying.
The U.S. Drug Enforcement Administration; the Franklin County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine State Police; and the Rangeley Police Department investigated the case, with assistance provided by the Maine Office of the Attorney General. The case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Owner of Hobart Motel Pleads Guilty to Arson SolicitationRead the Press Release
OKLAHOMA CITY – KIRANKUMAN GANDHI, 49, has pleaded guilty to soliciting arson, announced U.S. Attorney Timothy J. Downing.
A federal grand jury indicted Gandhi on July 2, 2019, for attempting to destroy by fire a building at 1004 West 11th Street in Hobart, Oklahoma, where Gandhi owned the Hiway Inn. According to the indictment, the property was being rented and thus affected interstate commerce.
Today, Gandhi pleaded guilty to a superseding information that charges the related crime of solicitation to commit a crime of violence, in particular arson. During a hearing before U.S. District Judge David L. Russell, he admitted that between June 14, 2018, and June 12, 2019, he paid an undercover federal agent to burn down property affecting interstate commerce.
Gandhi faces a maximum potential penalty of ten years in prison and a fine of $125,000. He could also face up to three years of supervised release after any prison sentence.
This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Kiowa County Sheriff’s Office. Assistant U.S. Attorneys Mark R. Stoneman and Jacquelyn M. Hutzell are prosecuting the case.
Reference is made to public filings for more information.
Omaha Woman Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Joe Kelly announced that Tamesha Parker, 27, of Omaha, Nebraska, was sentenced today to 27 months in prison by Senior United States District Judge Laurie Smith Camp for being a felon in possession of a firearm. In addition to her prison term, Parker will serve three years of supervised release following her release from prison.
On October 13, 2017, dispatch received a call about two suspicious vehicles. Officers arrived and observed that one of the vehicles was running but unoccupied. An independent witnesses reported observing Parker operating the vehicle prior to contact with the officers. The other vehicle had three occupants, one of whom was Parker. She initially gave officers a fictitious name, then fled when officers attempted to confront her. An inventory search was conducted of the vehicle. Officers located a purse on the passenger seat which contained a handgun. Parker later admitted to knowing the gun was in her purse and to being a felon at the time.
This case was investigated by the Omaha Police Department.
Oklahoma Resident Indicted in Federal Court on Charges Related to Shooting in Walker CountyRead the Press Release
BIRMINGHAM – The first of three sisters indicted late last month on charges that they conspired to kill a Florida resident and his wife were arraigned today in federal court, announced United States Attorney Jay E. Town and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. Magistrate Judge John E. Ott today arraigned CHARIS MAPSON, an Oklahoma resident, on charges of conspiracy, two counts of interstate domestic violence, two counts of stalking, and one count of using a firearm in furtherance of a crime of violence. The six-count indictment filed in U.S. District Court also charges her sisters Tierzah Mapson and Elisa Mapson with the same charges. According to the indictment, the three sisters plotted to kill the father of Tierzah Mapson’s child, by luring him and his wife to a rural crossroads in Eldridge, Alabama, on June 18, 2018.
Defendants Tierzah Mapson and Elisa Mapson were arrested at a campground in northern California.
“This case took an enormous amount of investigative coordination between a multitude of agencies, both here and outside the district,” Town said. “I commend the FBI, the Walker County Sheriff’s Office, and District Attorney Bill Adair for their diligent work on this investigation. There is give and take to everything, and defendants that take off after their criminal activities here in Alabama will be given their day in federal court to account.”
The maximum prison sentence is five years for a conviction on the conspiracy count and 10 years for each of the interstate domestic violence and stalking charges. The count alleging the use of a firearm in furtherance of a crime of violence carries a mandatory 10 years in prison, which must be served consecutively to any other sentence imposed for the crime.
FBI investigated the case, which Assistant U.S. Attorneys Alan Baty and Jonathan Cross are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Ohio-to-Canada gun smuggling ringleader sentenced to prisonRead the Press Release
COLUMBUS, Ohio – A New York man was sentenced here in U.S. District Court to 36 months in prison and fined $30,000 for conspiring to illegally purchase firearms.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the sentence handed down by Chief U.S. District Judge Algenon L. Marbley.
Jerome Watkins Jr., 33, of Niagara Falls, was one of four individuals charged in an Ohio-to-Canada gun smuggling conspiracy in August 2018.
Jeremy Hearn, 40, and Marcedes Green, 28, both of Columbus, and Kristina DeLorenzo, 31, of Lewiston, N.Y., were also charged by a federal grand jury in Columbus.
According to court documents, from at least January 2018 until April 2018, they served as either straw purchasers, couriers or resellers of firearms purchased in Columbus and eventually resold in Canada.
Hearn would purchase the firearms from various federally-licensed firearms dealers in Central Ohio by providing false information on ATF Form 4473. He traveled to at least 12 different federal firearms licensee stores in Central Ohio.
Hearn purchased at least 32 firearms and Green, with money provided by Hearn, assisted in the purchase of at least six of the firearms.
Hearn, Watkins and DeLorenzo then acted as couriers or assisted in courier duties, regularly traveling between Columbus and Niagara Falls and/or across the Canadian border for resale.
U.S. Attorney Glassman commended the investigation of this case by ATF, and the assistance of the ATF field office in Buffalo, New York, the U.S. Attorney’s Offices for the Northern District of Ohio and the Western District of New York, and L.E.P.D. Firearms and Range in Columbus, as well as Assistant United States Attorneys S. Courter Shimeall and Kevin W. Kelley, who are prosecuting the case.
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Officer-Involved Shooting Leads to Maximum Prison Sentence for East St. Louis ManRead the Press Release
Demetrius O. Ward, 42, of East St. Louis, Illinois, was sentenced to the statutory maximum term of
10 years in federal prison for unlawful possession of a firearm by a convicted felon and possession of heroin. Ward will also be required to serve the maximum three years of supervised release once he completes his prison sentence.Evidence in the case established that on Jan. 19, 2019, a St. Clair County sheriff’s deputy attempted to stop the car Ward was driving. Ward refused to stop and led the deputy on a high speed chase that did not end until Ward crashed his car into a pole. Ignoring the officer’s commands to surrender, Ward fled on foot toward an occupied apartment complex armed with a stolen, fully-loaded handgun and 9 grams of heroin.
The officer chased Ward on foot and repeatedly ordered him to stop. Ward ignored those commands and continued to run. As he was approaching the apartment complex, Ward accidentally dropped the .9 mm gun. He stopped, turned around, and while facing the officer bent down and reached to pick it up.
The officer was forced to make a split-second decision to defend himself and fired his service weapon, striking Ward in the chest.At the time of the offense, Ward was prohibited from possessing a gun on account of seven prior felony convictions, including a 2005 conviction for armed robbery in St. Clair County Circuit
Court.
“In the aftermath of the shooting, Mr. Ward spoke to the media and claimed that he was the victim who was merely reaching for money and a cell phone when the deputy tried to kill him,” said U.S.
Attorney Steven D. Weinhoeft. “Those lies were exposed and justice was done in this case. But it is another stark reminder that the public should always wait for all of the facts to be known before reacting to an officer-involved shooting.”Weinhoeft continued, “At a time when law enforcement officers are increasingly under attack, we must send a clear message about right and wrong. Demetrius Ward may have been shot, but he was no victim. He was an armed criminal who created a dangerous situation that forced law enforcement to act. He caused his own injuries.”
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.This prosecution was the result of a collaborative investigation by the St. Clair County
Sheriff’s Department, the Illinois States Police, and the Federal Bureau of Investigation.
Northern California Resident Charged with Acting as an Illegal AgentRead the Press Release
The Department of Justice unsealed charges today in a criminal complaint charging Xuehua Peng, also known as Edward Peng, 56, for acting as an illegal foreign agent in delivering classified United States national security information to officials of the People’s Republic of China’s Ministry of State Security (MSS).
“According to the allegations, Peng conducted numerous dead drops here in the United States on behalf of Chinese intelligence officers and delivered classified information to them in China. His arrest exposes and disrupts an operation by those Chinese intelligence officers to collect such information without having to step foot in this country,” said Assistant Attorney General of National Security John C. Demers. “Coming on top of our many recent Chinese espionage cases—involving both national defense and intellectual property information—this case illustrates the seriousness of Chinese espionage efforts and the determination of the United States to thwart them.”
“The conduct charged in this case alleges a combination of age-old spycraft and modern technology,” said U.S. Attorney David L. Anderson for the Northern District of California. “Defendant Xuehua (Edward) Peng is charged with executing dead drops, delivering payments, and personally carrying to Beijing, China, secure digital cards containing classified information related to the national security of the United States.” U.S. Attorney Anderson further stated, “The charges announced today provide a rare glimpse into the secret efforts of the People’s Republic of China to obtain classified national security information from the United States and the battle being waged by our intelligence and law-enforcement communities to protect our people, our ideas, and our national defense.”
"The FBI, along with our partners, will aggressively pursue foreign agents operating illegally in the United States attempting to steal our country's most sensitive information." said Assistant Director John Brown of the Counterintelligence Division. "This case should serve as a warning to the government of China as well as any other foreign adversary looking to replicate this activity. The FBI, and our intelligence and law enforcement partners, will not waiver. We will bring all of our resources to bear to defeat hostile foreign intelligence services and protect our nation's security. I would like to thank FBI counterintelligence personnel throughout the country who tirelessly worked this investigation over the course of many years, particularly those personnel in our Counterintelligence and San Francisco Divisions."
“Putting an end to Mr. Peng’s alleged actions are an important and significant step in dismantling the PRC’s overall efforts against our country,” said Special Agent in Charge Bennett of the FBI San Francisco Division. "Our message is clear: the FBI, along with our intelligence community partners, will pursue foreign adversaries -at any level of an operation- and disrupt their malicious activity when it is detected."
According to the complaint filed Sept. 24, 2019, and unsealed this morning, Peng, 56, a U.S. citizen living in Hayward, California, acted at the direction and under the control of MSS officials in China in retrieving classified information passed to him by a confidential human source (the source), leaving money behind for the source, or both. His activities included one dry run and at least five successful “dead drops” between October 2015 and July 2018. The dead drops occurred in the Bay Area and in Columbus, Georgia.
The table below summarizes the allegations in the complaint about each successful dead drop, including the date of the dead drop, the location of the dead drop, what Peng left in the hotel room, and what Peng retrieved from the hotel:
Date
Location
Peng Left in the Hotel
Peng Retrieved from the Hotel
6/23/2015
Newark, CA
n/a
Empty package (dry run)
10/24/2015
Newark, CA
n/a
SD card
4/23/2016
Oakland, CA
$20,000
SD card
7/1/2017
Columbus, GA
$20,000
n/a
9/9/2017
Columbus, GA
$10,000
SD card
6/30/2018
Columbus, GA
$20,000
SD card
In the June 23, 2015, “dry run,” no information or money was exchanged. Instead, an empty package was left by the source for Peng at the front desk of a hotel, and Peng later retrieved it. In the first successful dead drop, Peng retrieved a package containing an SD card from the front desk of a hotel. In each of the other four successful dead drops, Peng booked hotel rooms and left a room key to be picked up by the source. Peng then left envelopes of cash in the room, retrieved a secure digital card left there by the source, or both.
In each instance in which he retrieved an SD card from the hotel room, Peng then traveled to Beijing, China, shortly thereafter. The complaint further alleges that Peng was told by an MSS handler, in coded language, where and when to conduct the dead drops, how much money to leave in exchange for the SD cards, and when to return to China to deliver them. As alleged in the Complaint, the FBI secretly filmed Peng conducting some of the dead drops, and intercepted Peng’s telephone conversations with his MSS handlers in China.
On Friday, Sept. 27, 2019, Peng was arrested at his residence in Hayward and made his initial appearance in federal court in San Francisco before U.S. Magistrate Judge Joseph C. Spero. Magistrate Judge Spero ordered Peng held without bond pending further proceedings. Peng’s next hearing has been scheduled for Oct. 2, 2019, at 10:30 am before the Honorable Jacqueline Corley, 450 Golden Gate Ave., 15th Floor, for a detention hearing and identification of counsel.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Peng faces a maximum sentence of 10 years, and a fine of $250,000 for acting as an agent of a foreign government without notifying the United States Attorney General in violation of 18 U.S.C. § 951. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California and the Counterintelligence and Export Control Section of the Department of Justice, National Security Division. The prosecution is the result of an investigation by the FBI.
Relevant footage is linked here: Exhibit 2A and Exhibit 2B.
North Platte Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Joe Kelly announced that John Howard, 43, of North Platte, Nebraska, was sentenced today to 46 months in prison by Senior United States District Judge Laurie Smith Camp for conspiracy to distribute and possess with intent to distribute five grams or more of actual methamphetamine. In addition to his prison term, Howard will serve four years of supervised release following his release from prison.
Between September, 2017, and October, 2017, Howard sold methamphetamine to a confidential informant and to an undercover officer in North Platte.
This case was investigated by the North Platte Police Department.
New York Man Sentenced to Prison for Trafficking Heroin and Cocaine BaseRead the Press Release
Bangor, Maine: A Rochester, New York man was sentenced today in federal court in Bangor for distributing heroin and conspiring to distribute heroin and cocaine base, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Sharoz Haywood, a/k/a “Baby Dreads,” a/k/a “Rah Rah,” 22, to two years in prison and three years of supervised release. Haywood pleaded guilty in March 2019.
According to court records, between November 2016 and September 2017, Haywood and others conspired to distribute cocaine base and heroin in central Maine. Haywood and other individuals sold the drugs, which were being transported from Rochester, New York. In July 2017, Haywood sold heroin to an informant for the Maine Drug Enforcement Agency (MDEA).
The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration; and the MDEA investigated the case. The case was prosecuted as part of the Department of Justice’s program to combat the opioid epidemic.
New Haven Man Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARIANO IRIZARRY, 35, of New Haven, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of possession of a firearm by a convicted felon and one count of distributing a controlled substance while on pretrial release.
According to court documents and statements made in court, in the early morning hours of January 1, 2019, New Haven Police officers assigned to a New Year’s Eve crime prevention detail responded to a disturbance and a report of an individual with a gun in front of a nightclub on Hamilton Street in New Haven. At the scene, a bystander identified Irizarry as being in possession of a gun. After ignoring various commands from officers, Irizarry opened the driver’s side door of his vehicle and made furtive movements in the area of the steering wheel. He then closed the door and surrendered to officers. A subsequent search of the area beneath the steering wheel revealed a loaded .40 caliber Glock 27 pistol.
The firearm had been reported stolen in a residential burglary in New Haven in March 2015.
Irizarry’s criminal history includes felony drug convictions in 2000 and 2010, and a felony conviction in August 2000 for illegal sexual contact with a minor.
Irizarry was arrested on a federal criminal complaint on February 6, 2019, and was released on a $50,000 bond. On June 17, 2019, he sold four bags of heroin, some of which contained fentanyl, to an individual working with law enforcement. He has been detained since his arrest on June 27, 2019.
Judge Meyer scheduled sentencing for January 14, 2020, at which time Irizarry faces a maximum term of imprisonment of 40 years.
This matter has been investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Nassau County Man Pleads Guilty to Child Pornography ChargeRead 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 Ross Susco, 34, of East Meadow, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession of child pornography, including prepubescent images. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between March 8 and March 27, 2018, the defendant possessed images of child pornography on a desktop computer. Susco received the images over the internet. Some of the images depicted prepubescent minors, including a one-year old child.
On March 8 and March 12, 2018, the defendant communicated on the internet with an undercover Homeland Security Special Agent. During those communications, Susco sent the agent two videos containing child pornography. Both videos depicted prepubescent girls engaging in sexually explicit conduct with an adult.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for December 16, 2019, at 10:15 a.m. before Judge Siragusa.
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Mt. Lebanon Real Estate Developer Charged with Illegally Removing Asbestos from Former Westinghouse FacilityRead the Press Release
PITTSBURGH, Pa. – A resident of Mt. Lebanon, Pennsylvania, was charged in federal court with violating the Clean Air Act, United States Attorney Scott W. Brady announced today.
Vikas Jain, 47, was charged by criminal Information with one count of knowingly violating work practice standards of the Clean Air Act.
"As western Pennsylvanians, we cherish our abundant natural resources, and we take seriously our responsibility to protect them," said U.S. Attorney Brady. "In this case, an unscrupulous developer is charged with illegally removing and dumping asbestos in violation of the Clean Air Act, thereby compromising not only our region’s air quality, but also the health of the workers hired to perform the removal activity."
According to the Information, the defendant controlled various business entities focusing primarily on residential and commercial real estate development and management. In approximately May 2012, the defendant, through one such entity, purchased the George Westinghouse Research and Technology Park (the Westinghouse Facility), a multi-building commercial and industrial complex located on approximately 150 acres in Churchill, Pennsylvania. The Westinghouse Facility was built between approximately the 1950s and 1970s, and it comprised over one million square feet of testing, laboratory, and office space across more than a dozen buildings. As alleged, the defendant sought to redevelop the Westinghouse Facility and surrounding property for commercial and residential mixed-use purposes.
The Information further alleges that, prior to completing the purchase of the Westinghouse Facility, the defendant obtained the results of an earlier environmental assessment of the property, which identified the presence of asbestos-containing materials (ACM) in, among other substances, floor tile and pipe insulation located throughout the complex. Between approximately May 2012 and February 2017, the defendant, through entities he controlled, allegedly leased space at the Westinghouse Facility to third-party tenants, including television production companies. For the most part, however, the Westinghouse Facility remained unoccupied.
In connection with one licensing agreement in approximately 2015, the defendant obtained two asbestos-abatement permits from the Allegheny County Health Department (ACHD) allowing for the proper removal of ACM in portions of two of the buildings at the Westinghouse Facility. The removal was completed by a licensed abatement contractor. Later, as alleged, in early 2017, the defendant, through a contractor working on the redevelopment project, obtained a proposal from a different licensed abatement entity to inspect another building that the defendant intended to demolish. The proposal was never consummated.
Rather, according to the Information, beginning no later than approximately February 1, 2017, and continuing until February 28, 2017, the defendant directed various workers to remove previously unabated ACM from two buildings at the Westinghouse Facility, including large quantities of ACM floor tiles, mastic, and pipe insulation. As alleged, the defendant further directed a worker to rent floor grinders, which the workers then used to remove and pulverize ACM floor tiles and mastic. The defendant did not apply for or obtain an ACHD permit for the abatement activity, and workers allegedly conducted the removal of ACM without proper protective clothing or adequate respirators. Once removed, ACM debris allegedly was placed in black trash bags and taken by workers via a pick-up truck to a dumpster located outside of one of the defendant’s residential rental properties. The contents of the dumpster, including sealed trash bags containing ACM, were subsequently taken to a local landfill that was not qualified to receive asbestos-contaminated waste.
Finally, the Information alleges that, after local authorities in Churchill and ACHD investigators learned of the illegal asbestos abatement, the defendant took steps to conceal the nature and extent of the removal activity, including by causing grinders to be removed from the Westinghouse Facility, cleaned, and, as to two grinders, returned to the equipment rental company prior to inspection by ACHD.
The defendant faces a maximum sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government, with assistance from Perry D. McDaniel, Regional Criminal Enforcement Counsel of the Environmental Protection Agency. The Federal Bureau of Investigation and Environmental Protection Agency’s Criminal Investigation Division conducted the investigation of the defendant.
A criminal Information is an accusation.
A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Montgomery County Attorney Charged with Mail FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Craig A. Cohen, age 55, of Blue Bell, Pennsylvania was charged by Information with one count of mail fraud. Cohen was an attorney who worked for approximately eight years for a Philadelphia, Pennsylvania law firm (“the Law Firm”). Cohen specialized in representing insurance companies in subrogation matters, particularly those matters involving losses generated by water damage. As a subrogation attorney, Cohen filed claims on behalf of insurance companies to obtain recoveries against product manufacturers and class action settlement funds after insurance companies covered losses of insured individuals due to water damage resulting from defective products.
Over the course of approximately four years, from 2015 through 2019, Cohen engaged in a fraudulent scheme to obtain financial recoveries from product manufacturers and class action settlement funds for his own benefit, based on (1) entirely fabricated subrogation claims; and (2) legitimate subrogation claims to which an insurance company client of the Law Firm, and not Cohen, was entitled to the financial recovery.
Cohen operated the scheme primarily from his home in Blue Bell where he created a legal entity, WLSP, PLLC (“WLSP”), which he used to file the fabricated claims. He also opened a post office box in Philadelphia and created internet domains and email addresses for his company so that his fraudulent business could function effectively and appear legitimate.
Cohen created fake subrogation claims by modifying the paperwork from legitimate claims that he and other attorneys had already successfully resolved on behalf of clients of the Law Firm. His fake paperwork for each claim made it falsely appear that losses to the insured were caused by one manufacturer’s defective product, when in fact, a different manufacturer’s product caused those losses. Where necessary, Cohen would physically damage products and take pictures of them to submit with his fraudulent claim. He also engaged an expert engineer to examine the defective product and issue a report describing the defect that would entitle Cohen’s purported client to a recovery against the product manufacturer or settlement fund.
In addition to submitting entirely fake claims, Cohen also used legitimate, unresolved claims from insurance company clients of the Law Firm and submitted those claims through WLSP, generating financial recoveries entirely for himself. In each of these cases, Cohen convinced the Law Firm’s client and the Law Firm that the claims were not viable and should not be pursued, when in fact, the claims were viable. In converting these legitimate claims to his own company’s name and pursuing them solely for his own benefit, Cohen defrauded the insurance company clients of the Law Firm that were entitled to a recovery as well as the Law Firm that was entitled to a contingency fee on those matters.
In total, Cohen submitted dozens of fraudulent claims, causing losses to numerous victims, including product manufacturers, class action settlement funds, insurance companies, and the Law Firm, for an alleged loss of at least approximately $3.4 million.
“Attorneys of any kind, public or private, take an oath to act in accordance with the law – not to use their law license to steal,” said U.S. Attorney McSwain. “The allegations here are particularly disturbing, as the defendant went to great lengths to deceive and defraud his employer and its clients of millions of dollars, which is illegal conduct for an employee in any line of work, but is especially egregious for a lawyer.”
If convicted, the defendant faces a maximum possible sentence of 20 years in prison.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Milwaukee Man Sentenced for Illegal Firearms Possession in Winnebago CountyRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that Nicholas O. Nelson (age: 36), of Milwaukee, was sentenced to 60 months in prison, followed by 36 months on supervised release, for the illegal possession of a firearm.
The investigation revealed that on February 26, 2017, Nelson possessed a loaded .40 caliber semiautomatic handgun while in a vehicle in the Village of Fox Crossing. Previous felony convictions prohibited Nelson from possessing a firearm. A routine records check on the firearm showed it was reported stolen from a location in the City of Milwaukee. After a 2-day trial in July 2019, a jury in federal court in Green Bay returned a verdict of guilty.
IIn sentencing Nelson, Chief Judge Griesbach noted the serious nature of the offense, and that previous attempts to intervene in Nelson’s criminal activity had failed. Chief Judge Griesbach also cited the need to deter others who might consider similar actions despite legal prohibitions against possessing firearms.
Fox Crossing Police Department investigated the case with assistance from the Wisconsin State Crime Laboratory. It was prosecuted by Assistant United States Attorneys Andrew J. Maier and Benjamin P. Taibleson.
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Mexican National Sentenced for Possessing Firearm Used in Connection with Marijuana CultivationRead the Press Release
FRESNO, Calif. — Fernando Daniel Velez Ruvalcaba, 35, of Jalisco, Mexico, was sentenced today to 21 months in prison for being an alien in possession of a firearm, which was found to have been used in connection with marijuana cultivation in the Sequoia National Forest, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers found Velez, an illegal alien who had previously been removed from the United States in 2012 and 2013, in a vehicle in the vicinity of a marijuana cultivation site in the Sequoia National Forest apparently waiting for suspects who fled from the site when it was raided. He was in possession of a loaded handgun that he had bought on the street for $600.
This case was the product of an investigation by the U.S. Forest Service and Fresno County Sheriff’s Office and was part of Operation Forest Watch, an enforcement effort targeting marijuana cultivation operations on public land and the damage they cause. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Media Advisory – Tri-Cities Violent Crime SummitRead the Press Release
WHAT: Federal, state, and local law enforcement leaders and community partners will hold the Tri-Cities Violent Crime Summit today at Good Shepherd Baptist Church in Petersburg.
WHERE: Good Shepherd Baptist Church, 2223 S Crater Rd, Petersburg, VA 23805
WHEN: Media check in at 2:45 p.m.
DETAILS: Members of the media are invited to attend the final wrap-up of the event from approximately 3:00 p.m. to 3:30 p.m. Audio and video recording is permitted.
Following the wrap-up, co-hosts of the summit will hold a brief press conference and take questions. After the press conference, select law enforcement officials will be available for one-on-one interviews. Community partners may also be available for one-on-one interviews.
RSVP: Please RSVP by Noon today to: [email protected]
CO-HOSTS: G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Miller, Director of Public Safety, Petersburg Bureau of Police; Kamran Afzal, Chief of Hopewell Police; Jeffrey W. Faries, Chief of Colonial Heights Police; Cheryl J. Wilson, Petersburg Commonwealth’s Attorney; Richard K. Newman, Hopewell Commonwealth’s Attorney; Alfred Gray Collins, III, Colonial Heights Commonwealth’s Attorney.
LAW ENFORCEMENT PARTNERS: Virginia State Police; Prince George County Police; Prince George County Commonwealth’s Attorney; Chesterfield County Police; Chesterfield County Commonwealth’s Attorney; Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Drug Enforcement Administration’s (DEA) Washington Field Division; FBI’s Richmond Field Office; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); U.S. Marshals Service; U.S. Postal Inspection Service; Virginia ABC Bureau of Law Enforcement; Virginia State University Police; Richard Bland College Police; Dinwiddie County Sheriff’s Office.
Manager of Middletown Mall admits to bankruptcy and tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dietrich S. Fansler, manager of Pin Oak Properties, has admitted to bankruptcy fraud and tax fraud, United States Attorney Bill Powell announced.
Fansler, of Morgantown, West Virginia, is the managing member of Pin Oak Properties, LLC, which operated Middletown Mall in Fairmont. Fansler, age 59, pled guilty to one count of “Fraudulent Concealment of Bankruptcy Estate Assets” and one count of “Willful Failure to Pay Over Tax.”
Fansler filed for Chapter 11 bankruptcy protection in June 2017. Between June 2017 and January 2018, Fansler collected rent from the tenants of the mall and was required to deposit that money into the debtor-in-possession account of Pin Oak Properties. Fansler admitted to using some of that collected rent, approximately $225,000, for expenses unrelated to Pin Oak Properties and concealing it from the creditors of the bankruptcy estate.
Fansler also admitted to failing to pay the withheld income taxes from employees of Pin Oak Properties and another one of his companies, Villa Rentals, Inc. He admits, too, that he did not pay personal income taxes for years 2009, 2010, 2012, and 2013. The total loss to the IRS is more than $880,000.
As a part of the plea, Fansler agrees to pay $225,000 in restitution to the bankruptcy trustee, as well as $880,446.82 in restitution to the IRS.
Fansler faces up to five years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the cases on behalf of the government. The Internal Revenue Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Charged in Criminal Complaint with Griffith RobberyRead the Press Release
HAMMOND- Ryan Smith, 56, was charged in a criminal complaint with the September 22, 2019 robbery, affecting interstate commerce, of Family Dollar in Griffith, Indiana, announced U.S. Attorney Kirsch.
U.S. Attorney Kirsch said, “Prosecuting violent crime is one of my top priorities. My office, along with our law enforcement partners, including the FBI, have a strong and continuing commitment to investigate and prosecute acts of violence such as those alleged in today’s charges.”
The criminal complaint alleges that Smith entered the Family Dollar store located on Ridge Road in Griffith, Indiana, on September 22, 2019. Smith is alleged to have given a note to an employee stating that he was committing a robbery. Smith is further alleged to have displayed a large knife and held it against an employee while ordering the employee to open a cash register from which he stole approximately $190 in cash.
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the FBI Gang Response Investigative Team and Griffith Police Department. This case is being prosecuted by Assistant United States Attorney David J. Nozick.
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Lexington Man Sentenced to 97 Months for Buying and Selling Stolen Firearms as a Convicted FelonRead the Press Release
LEXINGTON, Ky. – Wayne Russell Fugate, 49, of Lexington was sentenced on Monday, by Chief United States District Judge Danny C. Reeves, to 97 months in federal prison for buying and selling stolen firearms and for being a convicted felon in possession of over 25 stolen firearms.
Beginning in 2017, the eastern Kentucky area, as well as areas in Tennessee and Ohio, experienced a number of vehicle break-ins where firearms were stolen. A law enforcement task force led to the arrest of Dario Adrian Mauriz-Cruz, 27, and Jeremy D. Stidham, 27, as suspects in these break-ins. The investigation determined that Fugate acted as a “fence” for Stidham and Cruz, buying stolen firearms from them.
According to Fugate’s plea agreement, investigators executed a search warrant at his residence in Lexington, in November 2017. There, they located 22 stolen firearms and over 2,000 rounds of ammunition. Further investigation recovered six more stolen firearms purchased by Fugate. Fugate admitted to selling firearms to at least 11 others. Fugate had a prior federal felony conviction for being an unlawful user of controlled substances in possession of firearms.
Both Stidham and Cruz pleaded guilty to federal firearms charges, in August 2019. Cruz, also a convicted felon, was sentenced to ten years in prison for his role in stealing the firearms. Stidham was sentenced to 100 months.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for ATF Louisville Field Division; Richard W. Sanders, KSP Commissioner; Chief Lawrence Weathers, Lexington Police Department; Michael Helmig, Boone County Sheriff; Matt Sparks, Rowan County Sheriff; Ernie Kelty, Mercer County Sheriff; and Mike Coyle, Madison County Sheriff, collectively announced the sentencing.
The investigation was conducted by the ATF, Boone County Sheriff’s Office, the Kentucky State Police, Lexington Police Department, Madison County Sheriff’s Office, Mercer County Sheriff’s Office, and Rowan County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Roger W. West.
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Lathrup Village Doctor Pleaded Guilty to Diverting Prescription Pills and Committing Health Care FraudRead the Press Release
A Lathrup Village doctor pleaded guilty today in federal court in Detroit to charges of conspiracy and unlawful controlled substance distribution, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.
According to court records, Dr. Afzal Beemath, 43, pled guilty to twenty (20) counts charged in a first superseding indictment, involving a conspiracy to illegally distribute highly addictive opioids. The evidence revealed that from January 2013 through October 2018, Beemath, who owned and operated Afzal Beemath, M.D., P.C., which was marketed as a palliative care clinic in Lathrup Village, Michigan, prescribed more than 1.9 million dosages units of controlled substances. Included in this was more than 803,000 dosages Oxycodone, 296,000 dosages of Oxymorphone and 66,000 dosages of Alprazolam (Xanax). Beemath issued these prescription drugs outside the course of professional medical practice and without any legitimate medical need for the drugs so that they could be sold on the illegal street market. These opioids carried a conservative street value of $22 million.
Oxycodone and Oxymorphone are two of the most diverted controlled substances in our area. They are extremely powerful, addictive and in the opioid class that is easily abused, and can lead to addiction and eventual heroin use. Michigan has seen devastating statistics relating to opioid drug overdoses in the last five years.
This case was prosecuted by Assistant United States Attorneys Regina R. McCullough and Brandy R. McMillion as part of the district’s efforts to address the nation’s opioid crisis. The Eastern District of Michigan is one of twelve districts included in the Attorney General’s Opioid Fraud Abuse and Detection initiative. The case was investigated by special agents of the Federal Bureau of Investigation and the U.S. Department of Health and Human Services Office of Inspector General.