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26 September 2019
Alexandria Woman Sentenced to Federal Prison for Submitting False Student Aid Applications to Department of EducationRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Adaysha Tanner, 36, of Alexandria, Louisiana, was sentenced September 25 by Chief U.S. District Judge S. Maurice Hicks Jr., to 10 months in federal prison followed by three years of supervised release for financial aid fraud, in connection with a scheme where she filled out and submitted false student aid applications for more than $95,000. Judge Hicks also ordered Tanner to pay $106,744 in restitution to the U.S. Department of Education. Tanner pleaded guilty on May 14, 2019.
Beginning in the spring semester of 2013 through the spring semester of 2015, Tanner filled out financial aid applications through the Free Application for Federal Student Aid (FAFSA) and through Federal Direct Loans for four students, representing that they would be attending Bossier Parish Community College (BPCC), and listed her physical address and email address as the contact information. In reality, Tanner would take over the individual’s BPCC student accounts, attend classes, and do minimal coursework in order to keep financial aid flowing. In one instance in particular, Tanner enrolled a student in 18 classes over four semesters, of which she withdrew from seven. In total, Tanner enrolled four students in classes, many of which were identical to classes that Tanner was taking at BPCC. For the majority of these classes, they were eventually withdrawn or given a failing grade.
On each occasion, after BPCC applied grants and loans to the costs of tuition and other fees, Bank Mobile sent a bank card to Tanner’s address with the remaining funds. She took the cards and spent the money for her own personal expenses. As a result of Tanner’s fraudulent scheme, the U.S. Department of Education disbursed a total of $106,744 in Federal Direct Stafford loans and Federal Pell grants to BPCC during the time of the fraud.
The Department of Education, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
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Additional New Jersey Case Announced as Part of Federal Health Care Fraud Takedown in Northeastern U.S.Read the Press Release
NEWARK, N.J. – The Justice Department today announced a coordinated health care fraud enforcement action across seven federal districts in the Northeastern United States, involving more than $800 million in losses and the distribution of over 3.25 million pills of opioids in “pill mill” clinics and doctors’ offices. The takedown includes new charges and convictions by guilty plea against 54 defendants for their roles in submitting nearly $800 million in fraudulent claims made to federal payers, including 15 doctors or medical professionals, and 24 defendants are charged for their roles in diverting opioids.
Attorney for the United States Rachael A. Honig said the cases prosecuted by this Office in connection with the takedown reflect all of the different facets of the office's health care and opioids work. Doctors, marketing executives, pharmacists, and the owners and operators of a genetic testing laboratory have been charged with, or have plead guilty to a range of criminal conduct, including: the criminal prescription of highly-addictive opioid pills to patients with no medical need, the paying of kickbacks and other fraud related to unnecessary genetic testing, fraud and abuse in the compounded medicines business, and other crimes that victimize federal health care programs like Medicare and Medicaid, as well as patients across New Jersey who need medical care.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the District of New Jersey, Eastern District of Pennsylvania, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-Criminal Investigation, DOD-DCIS, FDA-OIG, the Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the operation.
The charges involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests and guilty pleas come one-year after the Department of Justice announced the formation of the Newark/Philadelphia Regional MFSF, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“The FBI does not care about your status in life, your professional standing, your level of income, or your personal connections when you break the law,” Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office said. “If you try to scam the system, if you exploit your professional license just to pad your pockets, if you mortgage your morals just to inflate your bank account, you will only find yourself in deeper debt. We are committed to protecting the public; we are intent on rooting out fraud and corruption; we are duty-bound to track down and arrest anyone who is breaking our federal laws. Don’t be next.”
Among those charged in the District of New Jersey are the following:
- Aaron Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 40, of Englishtown, New Jersey, owners of approximately 25 durable medical equipment companies, pleaded guilty on Sept. 18 and Sept. 25, respectively, for their participation in a health care fraud scheme related to their payment of kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Levit’s conduct admittedly caused losses in excess of $120 million and Williamsky’s conduct admittedly caused losses in excess of $170 million. Williamsky also pleaded guilty to a money laundering conspiracy related to his attempt to conceal at least $1.65 million of the proceeds of the fraud. The case was investigated by FBI, HHS-OIG, IRS-CI and special agents of the U.S. Attorney's Office. The case is being prosecuted by Assistant U.S. Attorneys J. Stephen Ferketic and Sean Sherman and of the District of New Jersey.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
A complaint, information or indictment is merely an accusation, and all defendants are presumed innocent until and until proven guilty.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced SERGIO NERI-ARCE, 36, of Mexico on September 20, 2019 for illegal re-entry of a previously deported alien into the United States. Neri-Arce was arrested in Cheyenne, Wyoming. He received time served plus ten days to allow for deportation proceedings. The U.S. Department of Homeland Security investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced KIMBERLY DAWN DANIELS, 46, of Sheridan, Wyoming on September 17, 2019 for conspiracy to distribute methamphetamine and marijuana. Daniels was arrested in Sheridan, Wyoming. She received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay restitution in the amount of $500.00. The Wyoming Division of Criminal Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced MICHAEL DEE BEARCLAW, Jr., 30, of Lodge Grass, Montana on September 18, 2019 for stealing a firearm from a federal firearm licensee. Bearclaw was arrested in Casper, Wyoming. He received ninety months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $301.98. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
50 Individuals Charged with Drug Trafficking in Puerto Rico as Part of the Organized Crime Drug Enforcement Task Force (OCDETF)Read the Press Release
SAN JUAN, Puerto Rico – On September 25, 2019, a federal grand jury in the District of Puerto Rico returned an indictment against 50 defendants charged with conspiracy to possess with intent to distribute, and distribution of, controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), and the Puerto Rico Police Department (PRPD), Ponce Strike Force, were in charge of the investigation, with the collaboration of the US Marshals Service.
The indictment alleges that since the year 2013, the drug trafficking organization distributed heroin, crack, cocaine, and marihuana, within 1,000 feet of the real property comprising the José N. Gándara, and the Hogares de Portugués Public Housing Projects located in the Municipality of Ponce, and other areas in the southern part of Puerto Rico, all for financial gain and profit.
The 50 defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, enforcers, runners, and sellers. Sixteen defendants are also charged with possession of firearms in furtherance of a drug trafficking crime.
As part of the conspiracy, the members of the drug trafficking gang conducted meetings to discuss the activities of the organization. The defendants had access to different vehicles in order to transport money, narcotics, and firearms. The leaders had final approval authority as to disciplinary action to be imposed upon residents of the José N. Gándara Public Housing Project; the Hogares de Portugués Public Housing Project, and/or the members of the conspiracy should they disobey the rules imposed by the drug trafficking organization.
The drug distribution points were located at the staircases of the public housing project buildings, among other locations. The gates of the buildings would be locked to prevent law enforcement personnel’s access to the drug points, thereby avoiding detection. The gang also used homemade buckets, similar to a “weapon unloading station,” to test fire their firearms while concealing the sound of the shot. These buckets were located within different areas in the José N. Gándara Public Housing Project. Members of the conspiracy would create labels to identify controlled substances as “prescribed” in order to mislead law enforcement agents into believing that the controlled substance was authorized to treat medical conditions.
The defendants indicted are: Cristopher Román-Medina, a.k.a. “Keke”; Victor Torres Galindo, a.k.a. “Manuel Silva”; Hommy Santiago-Rodríguez, a.k.a. “Hommy/Cacique”; Jonathan Ramos, a.k.a. “Zurdo”; Josué Rosado-Ríos, a.k.a. “Josué”; Juan C. Borrero-Silva, a.k.a. “Mata/Matta”; Emilio J. Alomar-García, a.k.a. “Machua/Macho/Millo”; Alexandro Rivera-Pérez, a.k.a. “El Cojo/Alex El Cojo”; Santiago De Jesús-Martínez, a.k.a. “Junito/Yairan”; Alex Manuel Malavet-Rivera, a.k.a. “Alexito”; Hector Pagán-Vega, a.k.a. “Piky”; Eric Tomás Nazario-Torres, a.k.a. “Eric/Eric Cripy”; Jesús M. Vargas-Vargas, a.k.a. “Bombo/Manuel”; Anthony Nazario-Ortiz, a.k.a. “El Negro”; José Luis Pabón-Custodio, a.k.a. “Joseito”; José A. Cintrón-Ortiz, a.k.a. “Rubia/Colorao/Barbie”; Juan C. Borrero-Ramírez, a.k.a. “Aspirina/Aspi”; Gerardo Rosado, a.k.a. “Gistro/Yistro/El Chacal”; Yalexis Fernández-García, a.k.a. “Lija/Flaco”; Rubén A. Rivera-Soto, a.k.a. “Piño”; Jean C. Velázquez-Cebollero, a.k.a. “Cebollero”; Gilberto Laboy-Nadal, a.k.a. “Papito/Papito Winston”; Randell Soto-Alvarado, a.k.a. “Bambino”; Victor Andrés Segarra-Vega, a.k.a. “Andy/Andie”; Victor Manuel Segarra-Vega, a.k.a. “Ito”; William D. Sanabria-Torres Jr., a.k.a. “W/William”; Anthony Almodovar-Guzmán, a.k.a. “Anthony”; Christopher González-Figueroa, a.k.a. “Offer”; Jonathan González-Figueroa, a.k.a. “Menor/Johnny”; José Manuel López-Velázquez, a.k.a. “Gordo”; Erik Antonio Avilés- Vega, a.k.a. “Eric/Erick/Erikcito/Erik-Chiquito”; Christopher Rosa-Moreno, a.k.a. “Chris”; Joseph Joamil Fontanez-Colón, a.k.a. “Nueva Atenas/Joamil/Cano”; Vilma Janet Vázquez-Vargas, a.k.a. “Janet/La Pata”; José J. Colón-Ramírez, a.k.a. “Yaye”; Arístides Rivera-Alvarado, a.k.a. “Fama”; Alberto Pimentel-Rodríguez, a.k.a. “Alberto”; Alexander Omar González-Morales, a.k.a. “Alexander”; Luis Ángel García-Ríos, a.k.a. “Boxeador”; Wilson Berríos-Flores, a.k.a. “Panda”; Axcel Orlando-Barral, a.k.a. “Axel/Uno-Nene”; Jeisabel Torruella-Almodovar, a.k.a. “Jei”; Freddyson Orengo-Rivera, a.k.a. “Menor”; Kevin Antonio Colón-Meléndez, a.k.a. “Atleta”; Ángel L. González-Morales, a.k.a. “Anuel”; Javier I. Montes-Medina, a.k.a. “Ivan”; Fernando L. Rivera-Quiñones, a.k.a. “Nandin/Colorao/Nando”; Samuel Jesús Castillo-Santana, a.k.a. “Simbólico”; Pedro Pacheco-Rodríguez, a.k.a. “Pedro”; and Katherine Colón-Negrón, a.k.a. “Katy-Troll”.
“I am grateful for the tireless efforts of the investigators and prosecutors who have dismantled this drug trafficking organization with today’s indictment,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue to investigate these violent criminal organizations with our law enforcement counterparts, and send a clear message that drugs, firearms, and violence will not be tolerated in our neighborhoods.”
“The results of this operation show the commitment of HSI, and that of our partners in PRPD and the DEA, to rid our communities of individuals involved in criminal activity,” said Ivan J. Arvelo, special agent in charge for HSI San Juan. “Because of the hard work and efforts of HSI and DEA special agents and PRPD officers, we have 50 fewer alleged criminals in the streets, thus making our neighborhoods safer. This is only the beginning of a series of surges to return our communities to law-abiding citizens from unscrupulous criminals who have no respect for human life and dignity.”
“Today’s operation is a reflection of successful inter-agency cooperation. The dismantlement of violent organizations like this one, takes time. Since 2017, the Drug Enforcement Administration (DEA), Homeland Security Investigations, and the Puerto Rico Police Department have been relentless in targeting the criminal elements affecting the citizens of Ponce and surrounding municipalities. Working alongside the United States Attorneys’ Office, today we bettered the lives not only of the residents of these communities, but our quality of life as citizens of Puerto Rico. DEA will stay here, and we will prevail,” stated A.J. Collazo, DEA Caribbean Division Special Agent in Charge.
Assistant U.S. Attorney María L. Montañez-Concepción is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
This case is part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program operates nationwide and combines the resources and unique expertise of numerous federal agencies in a coordinated attack against major drug trafficking and money laundering organizations. All U.S. Attorney’s Offices work in partnership with federal, state, and local law enforcement, as well as the local civilian community, to develop effective, targeted strategies to reduce drugs and drug related violence in the communities. This case is a product of that collaborative effort.
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3 Pittsburgh Residents Charged with Drug and Gun CrimesRead the Press Release
PITTSBURGH, PA – John Burton, Nico Nixon, and Quintine Scales have been indicted by a federal grand jury in Pittsburgh for fentanyl, heroin, and crack cocaine trafficking and firearm crimes, United States Attorney Scott W. Brady announced today.
The Indictment, returned on September 24, charges Burton, age 31, Nixon, age 29, and Scales, age 35, all Pittsburgh residents, with distributing, possessing with intent to distribute, and/or conspiring to distribute 40 grams or more of fentanyl as well as fentanyl analogues, heroin, and crack cocaine between May 2019 and September 2019.
The law provides for a maximum total sentence of at least 10 years and up to life in prison and a fine of up to $7,500,000. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pittsburgh Bureau of Police, the United States Marshals Service, and the Pennsylvania Office of Attorney General conducted the investigation leading to the indictment in this case.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN) which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
19 charged in alleged narcotics ringRead the Press Release
DAYTON – A federal grand jury has charged 19 local individuals in a narcotics conspiracy involving more than 400 grams of fentanyl, 500 grams of methamphetamine, 500 grams of cocaine and heroin.
Eight of the defendants were arrested this morning, four were already in law enforcement custody and one has self-surrendered. Six currently remain at large.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the charges.
Those charged include:
Name
Age
City of Residence
Crawford P. Bogle
33
Dayton
Savon P. Pope
26
Dayton
Deshawn M. Harris
32
Phoenix, Ariz./Dayton
Kris A. Bogle
49
Dayton
Bryan K. Barney
36
Dayton
Lajuan M. Allen
32
Dayton
Donte (Deontay) A. Williams
28
Dayton
Marshall A. Cooper
32
Dayton
Jujuan D. Hansbro
26
Dayton
Qeuntin L. Robinson
35
Huber Heights
Dorian T. Bailey
32
Dayton
Storm A. Otey
28
Dayton
Dae-Sean L. Winn
21
Dayton
Jerome Bogle
52
Dayton
Brandon Henry
33
Dayton
Boyd D. Jackson
63
Middletown
Lisa N. Sumpter
34
Middletown
Kimberly L. Kelly
25
Dayton
Allen C.M. Maye
39
Dayton
*Currently a fugitive
According to the 27-count indictment, Crawford Bogle and Pope (with the assistance of other co-defendants) allegedly acquired for resale bulk amounts of controlled substances, including kilogram quantities of methamphetamine, fentanyl, heroin and cocaine. Crawford Bogle and Pope then allegedly processed and repacked the illegal drugs for resale in Southern Ohio, Kentucky and elsewhere.
It is alleged the group used 13 Dayton homes, apartments and business properties to process, store and distribute the drugs and cash proceeds.
The indictment details that defendants allegedly delivered hundreds of thousands of dollars to pay for kilogram quantities of the drugs. Crawford Bogle, Pope and others used proceeds from the drug sales to purchase a variety of high-end goods, including luxury cars.
Barney allegedly provided various members of the organization with fraudulent dealership tags to conceal their true ownership of vehicles through his car dealership.
In May 2019, Barney allegedly fled from a federal task force officer after an acquaintance of the illicit organization left a stash house in Dayton while in possession of more than $100,000 in cash.
In June 2019, members of the group allegedly hid bulk cash in a Dayton park while attempting to evade federal task force officers. It is alleged that Crawford Bogle searched the park the next day in an effort to locate the cash.
Defendants are charged with attempting to, conspiring to and distributing controlled substances (10 years up to life in prison), as well as communicating to facilitate a drug crime (up to four years in prison).
U.S. Attorney Glassman commended the investigation of this case by the DEA and the assistance of the Ohio State Highway Patrol, Montgomery County Sherriff’s Office, and Dayton, Middletown and Springfield police departments, as well as Assistant United States Attorneys Brent G. Tabacchi and Dominick S. Gerace, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you have any information regarding the whereabouts of those remaining at large, please text SOFAST and your tip to 847411.
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25 September 2019
Worcester Man Sentenced to 10 Years in Prison for Role in Multi-Kilogram Cocaine ConspiracyRead the Press Release
BOSTON – A Worcester man was sentenced yesterday in federal court in Worcester for his role in a cocaine trafficking ring responsible for smuggling over 20 kilograms of cocaine into central Massachusetts.
Jose Gonzalez, 38, was sentenced by U.S. District Court Judge Timothy S. Hillman to 10 years in prison and five years of supervised release. Gonzalez previously pleaded guilty to conspiring to distribute in excess of five kilograms of cocaine and possession with the intent to distribute over 500 grams of cocaine.
An investigation conducted in connection with federal wiretaps revealed, among other things, that in December 2017, Gonzalez had been the intended recipient of a package mailed from Puerto Rico containing three kilograms of cocaine.
In January 2018, wiretaps and surveillance revealed Gonzalez’s participation in the attempted smuggling of an additional six kilograms of cocaine from Puerto Rico, this time using a U.S. Postal employee to retrieve the packages of cocaine. As the scheme unfolded, agents seized one of the packages (found to contain three kilograms of cocaine) and allowed the second to be delivered to the conspiracy members under continuing electronic and physical surveillance. After observing the postal employee deliver the suspect package to a member of the conspiracy, authorities arrested several additional co-defendants. The second package was seized, and was found to contain another three kilograms of cocaine. Over $40,000 in cash and drug ledgers documenting the sale of well over 20 kilograms of cocaine were also seized during a search.
Gonzalez is the first of four defendants charged federally to be sentenced as a result of the investigation. Co-defendant Japhet Garcia is scheduled to be sentenced on Oct. 1, 2019, co-defendant Erick Cruz is scheduled to be sentenced on Oct. 8, 2019, and co-defendant Deibby Garcia is scheduled to be sentenced on Nov. 1, 2019. Another alleged member of the conspiracy, Caroline Cartagena, faces state charges. All of the defendants resided in Worcester.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph Cronin, Inspector in Charge of the United States Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; and Leicester Interim Police Chief Kenneth Antanavica made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Public Corruption Unit is prosecuting the case.
Worcester Man Indicted for Tax EvasionRead the Press Release
BOSTON – A Worcester man was arrested on Monday, Sept. 23, 2019, on charges of tax evasion and failing to file tax returns.
Leonard Ngunjiri a/k/a Leonard Gitonga, 50, was charged in an indictment with one count of tax evasion and five counts of failure to file a tax return. Ngunjiri was released on conditions following an arraignment in federal court in Worcester.
According to the indictment, Ngunjiri attempted to evade paying taxes for tax years 2006-2008 and 2011 by concealing his assets, directing his paychecks into bank accounts held in the names of others, and using other individuals for business and personal expenses. In addition, Ngunjiri did not file federal income tax returns from 2012 through 2017 despite making income in excess of the minimum filing requirements.
The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $100,000. The charge of failure to file tax returns provides for a sentence of up to one year in prison, one year of supervised release, and a fine of $25,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Woman Indicted for Attempting to Introduce Drugs to a Federal PrisonRead the Press Release
LONDON, Ky. – Keisha Pelote, 33, of Waldorf, Maryland, was indicted on Wednesday, on one count of possession with intent to distribute buprenorphine, aka Suboxone, and one count of attempting to provide it to an inmate in a federal prison.
The Indictment alleges that Pelote possessed the drug with the intent of distributing it and attempted to introduce it into FCI Manchester.
If convicted of the drug trafficking charge, Pelote faces up to 10 years of imprisonment, a $500,000.00 fine, and at least two years of federal supervised release. If convicted of attempting to introduce the buprenorphine into FCI Manchester, shefaces up to 20 years imprisonment, a $250,000 fine, and three years of federal supervised release.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, made the announcement after a federal grand jury in London returned the indictment.
Assistant United States Attorney R. Nicholas Rabold is prosecuting the case on behalf of the United States. The investigation preceding the indictment was conducted by the Bureau of Prisons, with the assistance of the Department of Homeland Security.
Pelote’s appearance before the United States District Court has not yet been set.
An indictment by a grand jury is an accusation only, and individuals charged in an indictment are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Watertown Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Watertown, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 23, 2019, by U.S. District Judge Charles B. Kornmann.
Danny Ray Callahan, Jr., age 40, was convicted of Conspiracy to Distribute a Controlled Substance and was sentenced to 151 months in federal prison, 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100. He is the last of six defendants to be sentenced.
The conviction stems from a methamphetamine conspiracy in and around the Watertown and Sisseton, South Dakota areas from November 23, 2017 through February 28, 2018. The conspiracy involved over 500 grams of methamphetamine, a Schedule II controlled substance. Callahan, and three other co-defendants, Alexis Dumarce, Amos Hall and Dayvon Byrd, were selling methamphetamine brought to South Dakota from California by co-defendants Josh Paul and Victor Caperon. Caperon and Paul were found with six pounds of methamphetamine on February 28, 2018 during a traffic stop in Corson County, South Dakota. This methamphetamine was intended for sale in the Watertown and Sisseton areas.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, Corson County Sheriff’s Office, Mobridge Police Department and the Watertown Police Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Callahan was immediately turned over to the custody of the U.S. Marshals Service.
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United States Files False Claims Act Complaint against Participants in Hospital Development Project for Improperly Obtaining Government-Insured Loan and Misusing Loan FundsRead the Press Release
The United States has filed a complaint under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 against Lakeway Regional Medical Center, LLC (LRMC); Surgical Development Partners, LLC (SDP); G. Edward Alexander; Frank Sossi; and John Prater for improperly obtaining a loan insured by the Federal Housing Administration (FHA) and for impermissibly distributing project funds relating to the development of Lakeway Regional Medical Center in Lakeway, Texas, the Department of Justice announced.
“Participants in FHA programs undertake important commitments, and they must honor them and be truthful in their representations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit demonstrates the Department’s commitment to holding accountable those who violate the requirements of this important program.”
“We will do what it takes to ensure that the American people are not left footing the bill when borrowers fail to comply with FHA program requirements intended to protect the public fisc,” said U.S. Attorney John Bash of the Western District of Texas.
The FHA, part of the U.S. Department of Housing and Urban Development (HUD), insures loans used to build hospitals in underserved areas. The United States’ complaint alleges that the defendants participated in a scheme to improperly obtain an FHA-insured loan to build the Lakeway hospital by delaying refunds to investors who had cancelled their investments to make it appear as if the project satisfied mortgage covenants regarding the cash on hand required to close the loan. The complaint also alleges that the defendants impermissibly distributed project funds.
“It is deeply disconcerting when industry professionals, who have fiduciary responsibilities and are expected to act as honest brokers, exploit federal programs created to aid legitimate medical facilities,” said Jeremy L. Kirkland, Counsel to the Inspector General, HUD Office of Inspector General. “This settlement demonstrates our continuing resolve, and should serve as a warning, that we will pursue those engaged in behavior that undermines federal insurance programs.”
“HUD will not tolerate FHA participants obtaining federally insured mortgages under false pretenses,” said HUD General Counsel Paul Compton. “Lakeway Regional Medical Center and its affiliates misrepresented facts that enabled them to obtain an FHA insured loan, and deliberately hid certain information from HUD. Today, HUD joins the Justice Department and the U.S. Attorney for the Western District of Texas to send a very clear message that the United States will seek accountability against those who defraud HUD programs.”
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Western District of Texas, HUD, and the HUD Office of Inspector General. The claims asserted against the defendants are allegations only, and there has been no determination of liability.
U.S. Attorney’s Office Uses New Program to Connect Patients to Treatment Following the Forced Closing of a Doctor’s OfficeRead the Press Release
PITTSBURGH – United States Attorney Scott W. Brady today announced a new program that helps connect patients to care or treatment following the closing of a doctor’s office by federal law enforcement. The program was first used earlier this week following the closing of the Fayette County practice of Dr. Emilio Ramon Navarro, who was charged with drug dealing and health care fraud.
U.S. Attorney Brady said, "We know that while shuttering an office might mean the end of a doctor’s illegal behavior, it marks the beginning of an opioid-dependent patient’s quest for a new prescriber, and sometimes the street is a first choice. Partnering with Pennsylvania Department of Health, the Centers for Disease Control and Prevention, and the Department of Health and Human Services we have identified an effective way to help patients find legitimate medical care or access treatment for opioid addiction if that is what is needed."
While agents were arresting Dr. Navarro and executing a search of his office, three Pennsylvania Department of Health employees and two drug and alcohol counselors – one each from Fayette and Washington Counties - were on scene to meet one-on-one with patients and provide them with information on accessing legitimate care. They distributed an informational flyer directing people where to seek care, and posted a copy on the door of the office. Through this effort, several dozen patients were directed to alternate facilities where they could obtain legitimate qualified care.
"The defendant was responsible for protecting the health and wellbeing of his patients, but instead he is charged with coercing them into sexual acts in exchange for medically unnecessary prescription medications that are fueling the opioid crisis in Pennsylvania," said Attorney General Josh Shapiro. "He exploited his position of power as a doctor, put his patients’ lives in danger, and defrauded Pennsylvania’s Medicaid Program, which provides health care to low-income Pennsylvanians. I’m proud to work with our state and federal partners to put an end to this dangerous behavior and connect his former patients to the treatment and care that they deserve."
Assistant United States Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting the Navarro case on behalf of the government.
The investigation leading to the indictment of Emilio Navarro was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
U.S. Attorney’s Office Hosts Roundtables on Sexual Harassment and Racial Discrimination in HousingRead the Press Release
Anchorage, Alaska -- U.S. Attorney Bryan Schroder announced that on Wednesday, Sept. 18 and Thursday, Sept. 19, the U.S. Attorney’s Office and Department of Justice’s Civil Rights Division hosted roundtable discussions on combating sexual harassment and racial discrimination in housing in Fairbanks and Anchorage.
The events included state, tribal, and federal agencies, non-profit organizations, and crisis and legal service providers that often work with Alaska’s most vulnerable populations, who could also become victims of sexual harassment or racial discrimination in housing.
“These roundtables compliment the mission of the Attorney General’s Rural Alaska Anti-Violence Enforcement Network (RAAVEN). Many women facing violence and abuse in rural Alaska come to Anchorage or Fairbanks looking for a fresh start and new opportunities. These roundtables will help ensure that women and other vulnerable populations from all over Alaska are treated respectfully and fairly as they seek housing,” said U.S. Attorney Bryan Schroder.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability.
Because victims may not be aware that the conduct they have experienced violates the Fair Housing Act or may not know where to turn, the U.S. Attorney’s Office and Department of Justice hope to collaborate with community organizations to raise awareness and help victims report abuse.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. In 2017, the Justice Department recovered more than $1 million in damages for victims. The Justice Department’s investigations frequently uncover sexual harassment or racial discrimination that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities. Many instances of sexual harassment or racial discrimination in housing continue to go unreported.
The roundtables were coordinated by Lauren Marks of the Housing and Civil Enforcement Section of the Civil Rights Division of Department of Justice.
The Department encourages anyone who has experienced sexual harassment or discrimination in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: [email protected].
usao/ak/19-066
Prepared by: Katie Schurig, 907-271-5022, [email protected]
U.S. Attorney's Office Hosts Roundtables on Initiative to Combat Sexual Harassment in HousingRead the Press Release
PORTLAND, Ore. – The U.S. Attorney’s Office for the District of Oregon and the Justice Department’s Civil Rights Division hosted two community roundtables on Wednesday to address the problem of sexual harassment in housing, kicking off a statewide initiative to combat this violation of federal law.
The initial Portland meetings included representatives from state and local law enforcement agencies, legal aid, advocacy organizations, the Fair Housing Council of Oregon, shelters, housing providers, victim advocates, and tribal representatives. These organizations often interact with and represent vulnerable populations who are most likely to become victims of sexual harassment in housing. The U.S. Attorney’s Office will continue this effort throughout other parts of Oregon to help educate victim advocates, social service organizations, and law enforcement, about the protections provided by the federal Fair Housing Act, and to encourage reporting of such violations across the state.
“Sexual harassment in housing is often underreported, and it is an egregious violation of a person’s right to fair housing,” U.S. Attorney Billy Williams said. “Landlords or managers, who use their power over tenants to extort sexual favors, or even commit assaults, is intolerable. Our office is dedicated to uncovering such violations where they exist and vigorously enforcing federal law.”
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Justice Department’s nationwide initiative, seeks to identify barriers to reporting sexual harassment in housing, increase awareness of the Justice Department’s enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
The U.S. Attorney’s Office is working closely with the DOJ Civil Rights Division to ensure people are aware of options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Often it is community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers, that are in the best position to identify housing abuses and recommend that victims report sexual harassment to DOJ’s Civil Rights Division. By increasing awareness and building strong partnerships, we can better combat this problem in our community.
The roundtables are an integral part of a DOJ initiative that seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts - both among victims and those they may report to - and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources. DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: [email protected]. Individuals who believe they may have been victims of such discrimination may also file a complaint with the U.S. Attorney’s Office for the District of Oregon by contacting Assistant U.S. Attorney Adrian Brown, at 503-727-1000.
Two Men Charged for Double Homicide and Armed Robbery of Brooksville, Florida CoupleRead the Press Release
Ft. Myers, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of an indictment charging Alex Jared Zwiefelhofer (22, Wisconsin) and Craig Austin Lang (29, Arizona and North Carolina) with conspiracy to commit robbery affecting commerce and to discharge a firearm during and in relation to a crime of violence, robbery interfering in commerce, and discharging a firearm during and in relation to a crime of violence, resulting in death. The statutory penalties for these offenses include up to life imprisonment and death.
According to court documents, on April 10, 2018, two individuals, S.L., Jr. and D.L., were found dead in Estero, Florida from multiple gunshot wounds to the head and body. Further investigation revealed that the couple had traveled to Estero from Brooksville, Florida to complete the purchase of several firearms from an individual that had listed them for sale on a website known as Armslist. As a result of the investigation, Zwiefelhofer and Lang, were identified as the individuals who were believed to have murdered the couple during the course of an armed robbery for $3,000 that the couple intended to use to purchase the firearms.
Zwiefelhofer made his initial appearance in Madison, Wisconsin, and was detained pending his return to the Middle District of Florida in Ft. Myers. Lang is currently in custody, in Ukraine, pursuant to a provisional arrest request from the United States.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Lee County Sheriff’s Office. It will be prosecuted by Ft. Myers Assistant United States Attorneys Jesus M. Casas and Josephine W. Thomas.
Two Men Arrested on Child Pornography ChargesRead 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 Jeffrey Wehs and Jordan Dunn, both 25, and both of Rochester, NY, were arrested and charged by criminal complaint with the receipt and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that the FBI’s Child Exploitation Task Force received a cyber tip from an online social media company indicating that an account holder had uploaded an image of child pornography using the company’s messaging application. Investigators traced the child pornography to an apartment Wehs and Dunn share in Rochester. On September 18, 2019, investigators executed a search warrant at the residence. Computers belonging to the defendants were seized. A review of the computers revealed multiple images and videos of child pornography.
Subsequent investigation determined that both Wehs and Dunn worked with children, including disabled children, at various organizations in the Rochester area.
Members of the public who have information related to this case are asked to call the FBI’s Rochester Office at 585-546-2220.
The defendants made an initial appearance today before U.S. Magistrate Judge Jonathan W. Feldman and were released under supervision.
The criminal complaint is the result of an investigation by the FBI's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Monroe County Sheriff's Office, under the direction of Sheriff Todd Baxter; the Greece Police Department, under the direction of Chief Patrick Phelan; the Livingston County Sheriff's Office, under the direction of Sheriff Thomas J. Dougherty; and the Ontario County Sheriff's Office, under the direction of Sheriff Kevin M. Henderson.
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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Two Kazakh Cybercriminals Plead Guilty in Global Digital Advertising Fraud Involving Tens of Millions of Dollars in LossesRead the Press Release
Sergey Ovsyannikov and Yevgeniy Timchenko, citizens of the Republic of Kazakhstan, pleaded guilty yesterday and today, respectively, in federal court in Brooklyn to conspiring to commit wire fraud and related charges, for their involvement in a widespread digital advertising fraud. Ovsyannikov was arrested in October 2018 in Malaysia and extradited to the United States in March 2019. Timchenko was arrested in November 2018 in Estonia and extradited to the United States in February 2019. Both plea proceedings took place before United States Magistrate Judge Steven M. Gold. When sentenced, Ovsyannikov faces up to 42 years in prison, and Timchenko faces up to 40 years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty pleas.
Background on Digital Advertising
The internet is, in large part, freely available to users worldwide because it runs on digital advertising, where website owners display advertisements on their sites and are compensated by intermediaries representing businesses that advertise goods and services to human customers. In general, digital advertising revenue is based on how many users click, or view, the advertisements on those websites. As alleged in court filings, the defendants in this case represented that they ran legitimate companies that delivered advertisements to human internet users, who accessed real internet webpages. In fact, the defendants faked both the users and the webpages they programmed computers they controlled to load advertisements on fabricated webpages, via an automated program, and fraudulently obtained digital advertising revenue.
The Botnet-Based Criminal Scheme (“3ve.2 Template A”)
Between December 2015 and October 2018, Ovsyannikov and Timchenko were involved in operating a purported advertising network and carried out a digital advertising fraud scheme, referred to in the advertising industry as “3ve.2 Template A.” In this scheme, the defendants used a global “botnet”¾ a network of malware-infected computers operated without the true owner’s knowledge or consent to perpetrate their fraud. The defendants developed an intricate infrastructure of command-and-control servers to direct and monitor the infected computers, and to detect whether a particular infected computer had been flagged by cybersecurity companies as being associated with fraud. By using this infrastructure, the defendants accessed more than 1.7 million infected computers belonging to individuals and businesses in the United States and elsewhere, and used hidden browsers on those infected computers to download fabricated webpages and load advertisements onto those fabricated webpages. Meanwhile, the owners of the infected computers were unaware that this process was running in the background on their computers. As a result of this scheme, the defendants falsified billions of advertisement views and caused businesses to pay more than $29 million for advertisements that were never actually viewed by human internet users.
The Defendants’ Roles
Ovsyannikov led the development of the 3ve.2 scheme, and was a principal and owner of the advertisement network used to carry out the scheme. Ovsyannikov set out the infrastructure of the scheme in a spreadsheet titled “[Ad Network] Structure. Hosting and Domains.” The spreadsheet listed many of the command-and-control servers and other servers involved in the scheme, including several designated as repositories of “spoof” webpages. Ovsyannikov maintained lists of webpages to fabricate (or “spoof”) in his cloud storage account and on servers that he controlled, including more than 86,000 webpages associated with online publishers, including the webpages of thousands of businesses in the United States. In communications with co-conspirators, Ovsyannikov explained how different aspects of the infrastructure worked together to perpetrate the fraud, such that a “bot” in the botnet would “set itself” to visit a “spoofed domain” and cause a falsified advertisement view. Ovsyannikov directed proceeds of the fraud to bank accounts in Switzerland, among other locations. As part of his guilty plea, Ovsyannikov will forfeit those Swiss bank accounts, which contain more than eight million dollars.
Timchenko worked for Ovsyannikov and handled logistical and administrative aspects of the 3ve.2 scheme. Timchenko assisted in creating the infrastructure of command-and-control servers and other servers that were instrumentalities of the scheme. Timchenko deliberately chose certain U.S. service providers because they had the “coolest processors” and a “larger” cache (for temporary data storage) than competing providers. Timchenko also researched webpages to fabricate, deliberately targeted webpages for businesses in the United States, and placed those webpages on a running list that both defendants kept that was titled “New companies for spoofing.”
Separately, Ovsyannikov provided technical assistance to the operators of another digital advertising fraud scheme, referred to in the advertising industry as “Methbot.” In the Methbot scheme, the perpetrators used computers housed in commercial datacenters, instead of in a botnet, to carry out the digital advertising fraud. Ovsyannikov helped the Methbot operators program the datacenter computers to mimic human behavior, disguise the computers’ automated browsers, and evade fraud detection software. The Methbot operators falsified billions of advertisement views and caused businesses to pay more than $7 million for advertisements that were never actually viewed by human internet users.
The Botnet Takedown
Following the arrest of Ovsyannikov by Malaysian authorities in October 2018, U.S. law enforcement authorities, in conjunction with various private sector companies, began the process of dismantling the criminal cyber infrastructure utilized in the botnet-based scheme, which involved computers infected with malicious software known “Kovter.” The FBI executed seizure warrants to redirect the internet traffic going to 23 internet domains used to further the charged botnet-based scheme or otherwise used to further the Kovter botnet (an action known as “sinkholing”), in order to disrupt and dismantle the botnet. The FBI also executed search warrants at 11 different U.S. server providers for 89 servers related to the charged botnet-based scheme or Kovter.
In addition, as part of its investigation, the FBI discovered an additional cybercrime infrastructure committing digital advertising fraud through the use of datacenter servers located in Germany, and a botnet of computers in the United States infected with malicious software known in the cybersecurity community as “Boaxxe.” The FBI executed seizure warrants to sinkhole eight domains used to further this scheme and thereby disrupt yet another botnet engaged in digital advertising fraud.
Finally, the United States, with the assistance of its foreign partners, executed seizure warrants for multiple international bank accounts in Switzerland and elsewhere that were associated with the schemes.
For technical details on the malware and botnets referenced in this case, please see US-CERT Alert TA18-331A: https://www.us-cert.gov/ncas/alerts/TA18-331A
The government’s case is being prosecuted by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, Michael T. Keilty, Alexander F. Mindlin and Karin K. Orenstein are in charge of the prosecution.
The Defendants:
SERGEY OVSYANNIKOV
Age: 30
Republic of KazakhstanYEVGENIY TIMCHENKO
Age: 31
Republic of KazakhstanE.D.N.Y. Docket No. 18-CR-633 (ERK)
Two Hudson Residents Plead Guilty to Fentanyl TraffickingRead the Press Release
CONCORD – Joseph Roy, 31, and Amelia Roy 30, both of Hudson, New Hampshire, pleaded guilty in federal court on Tuesday to drug trafficking charges, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, from November 9, 2018, until January 8, 2019, a cooperating individual, at the direction of Nashua Police Department detectives, arranged on three occasions to buy fentanyl from Joseph Roy. Amelia Roy, Mr. Roy’s sister, participated as an accomplice during one of the transactions.
Joseph and Amelia Roy are scheduled to be sentenced on January 3, 2020.
“Fentanyl trafficking has had devastating consequences throughout New Hampshire” said U.S. Attorney Murray. “Through Operation SOS we will continue to work with the Nashua Police Department and law enforcement agencies throughout Hillsborough County to bring those responsible to justice.”
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Two Charged in Connection to Fatal and Non-Fatal Overdoses Last WeekendRead the Press Release
PITTSBURGH – Two individuals have been charged in separate, but related, indictments relating to the September 22-23, 2019 overdose deaths of three people and non-fatal overdoses of five people that occurred in Pittsburgh and West Mifflin, United States Attorney Scott W. Brady announced today.
"These cases are stark reminders that although we have made significant progress, we continue to fight an epidemic," said U.S. Attorney Brady. "I commend the tireless efforts of our law enforcement partners who within 24 hours of the first overdose arrested the distributor of these deadly narcotics and took five kilograms of it off the streets."
A seven-count indictment returned today names Peter Rene Sanchez Montalvo aka Carlos, 25, of Coachella, California, as the sole defendant. According to the indictment and a criminal complaint filed in the case, on September 22, 2019, Montalvo distributed fentanyl and acetyl fentanyl at a party in an apartment located at 2626 Tunnel Boulevard on Pittsburgh’s South Side. The indictment alleges that the distribution resulted in the deaths of R.M., J.P., and J.S., as well as serious bodily injury to F.M., G.G., and P.R.
A one-count indictment returned today charges Derek Omar Smith, 36, of West Mifflin, Pennsylvania, with possessing with intent to distribute fentanyl and acetyl fentanyl. According to a criminal complaint filed in the case, on September 23, 2019 at 3:15 a.m., West Mifflin Police were dispatched to a suspected overdose at 4304 Bowes Avenue in West Mifflin. Upon arrival they located two individuals who had overdosed, and who medics were able to revive with Narcan. The homeowner identified one of the men as Derek Omar Smith. During the investigation, West Mifflin police located a bag laying on the ground outside. Police opened the bag and observed five blocks of narcotics.
Investigation by the Allegheny County Medical Examiner’s Office has determined the substances referenced in both cases to be fentanyl and acetyl fentanyl, an analogue of fentanyl.
Montalvo was arrested on Monday in McKees Rocks and Smith was arrested on Monday in West Mifflin. The United States Attorney’s Office intends to seek detention without bail of the defendants pending trial.
The law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $16,000,000, or both, for Montalvo. The law provides for maximum total sentence
of not less than 10 years and up to life in prison, a fine of $10,000,000, or both for Smith. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Brendan T. Conway and Robert C. Schupansky is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Pittsburgh Bureau of Police, the FBI’s Western Pennsylvania Opioid Task Force, which is comprised of law enforcement officers from the FBI, Port Authority Police of Allegheny County, the Allegheny County Sheriff’s Office, the North Versailles Police Department and the Stowe Twp. Police Department, with assistance from the Drug Enforcement Administration.
This case is being prosecuted as part of Operation S.O.S. (Synthetic Opioid Surge), a Department of Justice enforcement initiative designed to dismantle deadly fentanyl distribution networks through cooperation with local, state and federal law enforcement, as well as local and state prosecutors. The Western District of Pennsylvania is one of 10 districts from across the country to implement the S.O.S. program.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Trident USA Health Services LLC to Pay $8.5 Million to Resolve False Claims Act Liability for Alleged Kickback SchemeRead the Press Release
PHILADELPHIA, PA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced today an $8.5 million civil settlement to resolve two False Claims Act cases, United States et al. ex rel. Ravi Srivastava v. Trident USA Health Services LLC, Symphony Diagnostic Services No. 1, Inc. dba MobilexUSA, Civil Action No. 16-2956 (E.D. Pa.), and United States ex rel. Peter Goldman v. Symphony Diagnostic Services No. 1, LLC, d/b/a MobilexUSA, Civil Action No. 19-cv-01603 (E.D. Pa.). The lawsuits were filed by whistleblowers Ravi Srivastava and Peter Goldman, respectively, on behalf of the United States. The defendant is MobilexUSA, also known as Trident USA Health Services, LLC (Trident).
Trident provides mobile diagnostic services, including mobile x-rays, to individuals residing in skilled nursing facilities. The United States pays Trident to provide mobile x-rays to Medicare and Medicaid participants in these skilled nursing facilities. Whistleblower Srivastava had been Trident’s Chief Information Officer, and whistleblower Goldman had been a Trident regional sales manager. Based upon these whistleblowers’ allegations that Trident was engaged in a kickback scheme with skilled nursing facilities, the government investigated Trident’s pricing arrangements and its costs to provide mobile x-rays at these facilities.
Based upon its investigation, the government alleges that, from approximately June 2006 through September 2019, Trident engaged in illegal “swapping” arrangements under which Trident provided mobile x-rays to skilled nursing facilities at prices below Trident’s costs to provide the services, or below fair market value, for the purpose of inducing the facilities to refer lucrative federal health program business to Trident. Federal law prohibits the payment of kickbacks in exchange for the referral of federal healthcare business, including for healthcare that will be paid by the federal government through Medicare or Medicaid. Trident, like other companies that submit claims for payment to Medicare or Medicaid, is required to certify that it is compliant with federal anti-kickback laws. The government alleges that Trident’s certifications of anti-kickback law compliance were false certifications.
On February 10, 2019, Trident filed for bankruptcy protection. In bankruptcy, Trident sought to extinguish the government’s ability to collect any damages or penalties from Trident in connection with the illegal swapping arrangements. Despite Trident’s bankruptcy, the government and whistleblowers Srivastava and Goldman and their counsel worked together closely and continued their vigorous pursuit of the government’s claims, resulting in the $8.5 million settlement.
First Assistant U.S. Attorney Williams said: “Companies that violate the False Claims Act through illegal swapping arrangements, or by any other illegal scheme violating federal laws designed to protect the public fisc, will not find a safe harbor in bankruptcy court. The government will not relent or be deterred in our pursuit of justice for America’s taxpayers.”
Whistleblower Srivastava will receive $2,018,750.00 as his share of the government’s $8.5 million recovery, and whistleblower Goldman will receive $106,250.00. The whistleblowers were represented by attorneys Sherrie R. Savett, Esq. and Russell D. Paul, Esq., of Berger Montague, Philadelphia, PA, and James D. Young, Esq., of Morgan & Morgan Complex Litigation Group, Jacksonville, FL, respectively. “The whistleblowers and their lawyers provided vital and exceptionally valuable support to the government’s effort in this case, even after Trident’s bankruptcy put any recovery in doubt,” stated Williams.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. The lawsuits were handled by Assistant U.S. Attorneys Joel M. Sweet and Veronica J. Finkelstein, Auditor Dawn Wiggins, and Investigator Jeffrey R. Braun, from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, along with Trial Attorneys Alex Thor Pogozelski and Michael J. Podberesky of the Civil Frauds Branch of the Department of Justice. Assistant U.S. Attorney Jessica Hu of the U.S. Attorney’s Office for the Southern District of New York represented the United States in Trident’s bankruptcy proceedings.
The government’s settled civil claims are based on allegations. There has been no court determination of liability.
Three Members of Coney Island Street Gang Plead Guilty to Murder as Part of Racketeering ConspiracyRead the Press Release
Tysheen Cooper, Michael Liburd and Maurice Washington, members of the West End Enterprise, a Coney Island-based street gang, pleaded guilty in federal court in Brooklyn on September 24 and September 25, 2019 to a racketeering conspiracy involving their participation in the murder of Antwon Flowers. The guilty pleas were entered before United States District Court Judge Pamela K. Chen.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
As detailed in the superseding indictment, other public court filings and statements in court, the defendants were members of the West End Enterprise, a street gang comprising individuals residing in and around the Sea Rise Apartments, the Gravesend Houses and Surfside Gardens, also known as the “Mermaid Houses,” located in Coney Island. Between approximately 2011 and October 2017, the gang committed various criminal acts, including narcotics distribution, robbery, extortion and murder.
On January 17, 2016, the defendants agreed to murder Antwon Flowers in retaliation for what they believed was his role in setting up the killing of a West End Enterprise leader the previous day. As captured on surveillance video, Liburd and Cooper followed Flowers as he walked out of the Mermaid Houses, at which point they pulled out firearms and shot at Flowers, with Liburd’s shot striking Flowers in the head and killing him. Liburd and Cooper then fled in a getaway car that Washington had parked nearby.
“Families living in apartment buildings and public housing deserve to feel as safe, and to be as safe, as those living in mansions,” stated United States Attorney Donoghue. “We and our law enforcement partners will continue to prosecute gang members who inflict mindless violence not only on one another, but on the community.” Mr. Donoghue thanked the Drug Enforcement Administration and the New York City Housing Authority, Office of the Inspector General, for their assistance in the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Mathew S. Miller, Jennifer M. Sasso and Kayla Bensing are in charge of the prosecution.
The Defendants:
TYSHEEN COOPER (also known as “Billz”)
Age: 28
Brooklyn, New YorkMICHAEL LIBURD (also known as “Mike Mike” and “Mitty”)
Age: 33
Brooklyn, New YorkMAURICE WASHINGTON (also known as “Moe” and “Flaco”)
Age: 30
Brooklyn, New YorkEDNY Docket No. 17-CR-296 (PKC)
The Department of Justice Announces Launch of New Process for Filing Documents Pursuant to the Foreign Agents Registration Act of 1938 (FARA)Read the Press Release
The Department of Justice today announced a new online system for filing, storing, and searching registrations under the Foreign Agents Registration Act of 1938 (FARA).
This enhanced system (known as eFile) will increase public transparency and allow for better analysis of new filings. The system will also benefit new registrants who will file using fillable web-forms (instead of by filling out PDFs), making it easier for them to upload information and to update registrations, as the statute requires. These improvements build on the FARA Unit’s expansion, earlier this summer, of the website’s search features, which enable full-text searches and downloads of results in bulk format (e.g. CSV, XML) or via machine-readable API endpoints (e.g. CSV, XML, JSON) of more than 80,000 online FARA filings, and last year’s decision to publish its advisory opinions online.
“FARA helps protect the integrity of American democracy by combating covert foreign government influence in our political process,” said Assistant Attorney General John C. Demers. “Improving the FARA filing system is part of the Department’s commitment to improving transparency of foreign influence activities. This new system will make it easier for registrants to comply with their legal obligations and for the public to remain informed of their activities. The more accessible we make information on foreign political activities to the public, the better we accomplish our mission.”
The Department’s commitment to transparency and enforcement of the statute has borne fruit:
- In 2018 alone, more than 20 individuals and entities were criminally charged with violations involving FARA. That is more than the total number of individuals and entities charged in the prior 50 years.
- In May, the Division used its civil enforcement authority for the first time since 1991 to obtain a court order requiring RM Broadcasting to register as the agent of a Russian state-owned media enterprise.
- At current rates, the Department is on track to double the number of new registrants and new foreign principals registering annually as of 2016. Moreover, almost twice the number of individuals who work for registrants (known as “short-form registrants”) have registered, increasing transparency concerning the individuals (and not just the entities) engaged in foreign influence activities.
- The FARA Unit has increased the number of inspections of FARA registrants, to audit compliance with their record-keeping and reporting obligations, by over 30 percent, from an average of about 14 a year (from 2010 to 2018) to 20.
The revamped FARA eFile system will streamline the registration process and improve searching and analysis of FARA filings. The new process is self-guided, provides instructions and definitions, and automatically pre-populates data in subsequent filings. Importantly, eFile will help ensure all required fields are completed and responses are standardized, which will promote transparency and efficiency. Applicants can prepare their materials offline, using templates, which they can upload at the time of filing. Although only new FARA registrants will use the web-fillable eFile system at this time, and existing registrants will continue to use the legacy method, further updates to the website are planned that will transition all filings to the new platform. Additional details regarding this feature, including the templates, are posted on the FARA website.
Texas District Judge Sentenced to PrisonRead the Press Release
A Texas state district judge has been sentenced to 60 months in federal prison following his multiple convictions of conspiracy, bribery and obstructing justice, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
A federal jury in Houston convicted Rodolfo “Rudy” Delgado, 66, of Edinburg, July 11, 2019, following a six-day trial of one count of conspiracy, three counts of federal program bribery, three counts of travel act bribery and one count of obstruction of justice.
Delgado was sentenced by U.S. District Judge Alfred Bennett who also ordered Delgado to serve two years of supervised release.
Delgado was a justice in the 13th Court of Appeals for the State of Texas, having been elected in November 2018. He resigned from that position following his conviction.
Prior to that, he was previously the presiding judge for the 93rd District Court for the State of Texas, which has jurisdiction over Texas criminal and civil cases located within Hidalgo County. As a district judge, Delgado conspired with an attorney from January 2008 to November 2016 to accept bribes in exchange for favorable judicial consideration on criminal cases pending in his courtroom.
As part of the investigation, Delgado also accepted bribes on three separate occasions in exchange for agreeing to release three of the attorney’s clients on bond in cases pending before his court. The first two bribes totaled approximately $520 in cash and the third bribe - in January 2018 - totaled approximately $5,500.
After Delgado learned of the FBI’s investigation, he also attempted to obstruct justice by contacting the attorney and providing a false story about the payments.
The FBI conducted the investigation. Trial Attorney Peter M. Nothstein of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Arthur “Rob” Jones and Robert Guerra are prosecuting the case.
Rochester Woman Sentenced to 84 Months for Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD - Kristen Hodgkins, 30, of Rochester, was sentenced in to serve 84 months in federal prison for participating in a methamphetamine trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning about September 4, 2018, Hodgkins sold methamphetamine to an undercover police officer on multiple occasions. On December 20, 2018, agents traveled to a store in Rochester and located Hodgkins in a vehicle driven by another woman. New Hampshire State Police stopped the vehicle and Hodgkins was arrested on outstanding arrest warrants. During a search of Hodgkins’s bags, a police officer located bags containing approximately 146.4 grams of methamphetamine.
Hodgkins previously pleaded guilty on June 19, 2019.
“Methamphetamine is a powerful drug that endangers the health and safety of the citizens of New Hampshire,” said U.S. Attorney Murray. “The seven-year sentence imposed in this case should serve as a warning to those inclined to sell this substance in our state. We will continue to be aggressive in our efforts to identify, arrest, and incarcerate those who engage in this trade.”
“DEA will do everything in our power to bring to justice those who distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Ms. Hodgkins accountable for her crimes but serves as a warning that DEA and its local, state and federal partners will work diligently to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by the Drug Enforcement Administration, with assistance from the New Hampshire State Police and the Rochester Police Department. The case was prosecuted by Assistant U.S. Attorney John Davis.
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Registered Sex Offender Sentenced to Life in Federal Prison for Enticing Two ChildrenRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Romeo Valentin Sanchez (32, Cape Coral) to life in federal prison for producing child pornography, enticing a minor to engage in sexual conduct, and possessing child pornography. The court also ordered Sanchez to forfeit two cellphones that he had used to receive and store the images.
Sanchez was found guilty by a jury on February 25, 2019, after a five-day trial.
According to testimony and evidence presented at trial, Sanchez, a convicted sex offender, lured a 14-year-old victim into a sexual relationship that lasted several months. In addition to engaging in sex acts with the victim, Sanchez also induced the victim to make and send him pornographic videos.
After officers from the Cape Coral Police Department seized Sanchez’s phone and informed him that he was under investigation for his sexual exploitation of the first victim, Sanchez obtained a second cellphone and attempted to entice a second middle-school-aged child into a sexual relationship. Sanchez lured the victim by creating a fraudulent social media profile of a 13-year-old boy in an attempt to trick the victim into a sexual relationship. Although no in-person encounter occurred with the second victim, Sanchez was able to induce the victim to send him child pornography.
This case was investigated by the Federal Bureau of Investigation’s Innocent Images Task Force and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Charles Schmitz.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Prichard Man Sentenced to 96 Months Imprisonment for Drug TraffickingRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge Callie V. S. Granade sentenced Edward Lamar Hunt on September 25, 2019 to 95 months confinement for Possession with the Intent to Distribute Crack Cocaine in violation of Title 21 USC Section 841.
The defendant plead guilty to this offense on July 23, 2018. The facts of court record established that on July 25, 2017, Mobile Police Department officers prepared to execute a search warrant at an apartment where the defendant was living with his girlfriend. Just before execution of the search warrant, the defendant happened to be walking out of apartment on a stairwell with his girlfriend. The defendant was in possession of 43 grams of crack cocaine and 30 grams of powder cocaine at the time. Upon seeing law enforcement, the defendant dropped the crack cocaine and powder cocaine into his girlfriend’s purse. The defendant possessed the crack cocaine and powder cocaine with the intent to distribute it.
Upon execution of the search warrant officers also recovered a handgun from the master bedroom the defendant shared with his girlfriend.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Mobile Police Department and the Prichard Police Department. The case was prosecuted by Deputy Criminal Chief, Assistant United States Attorney George F. May.
Plum Borough Man Pleads Guilty in Heroin, Fentanyl and Cocaine Distribution SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Plum Borough, PA, pleaded guilty in federal court today to charges involving heroin, fentanyl, and cocaine trafficking, United States Attorney Scott W. Brady announced today.
Brandon Winters, age 43, pleaded guilty before Senior United States District Judge Nora Barry Fischer to the two-count Indictment charging him at Count One with conspiring to possess with intent to distribute and to distribute one kilogram or more of heroin and 400 grams or more of fentanyl; and at Count Two, with possessing with intent to distribute 500 grams or more of cocaine.
In connection with the guilty plea, the Court was advised that on January 30, 2019, investigators with the Federal Bureau of Investigation and Pennsylvania State Police Drug Law Enforcement Division executed a search warrant at an apartment located in Pittsburgh, which was utilized by Winters and his alleged co-conspirators, Eduard Rijo and Erick Martinez. Upon entry into the apartment, case agents located Winters, Rijo, and Martinez, approximately 1,500 "bricks" (the equivalent of roughly 75,000 individual dosage units) containing mixtures of heroin and fentanyl, and more than 500 grams of cocaine. Additionally, case agents seized over $250,000 in U.S. Currency, which was found in and around Mr. Winters and his alleged co-conspirators.
Judge Fischer scheduled sentencing for Feb. 6, 2020 at 9:00 a.m. The law provides for a total sentence of not less than 10 years up to life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court revoked Winters’s bond and remanded him to the custody of the United States Marshal.
Assistant United States Attorneys Jerome A. Moschetta and Tonya Sulia Goodman are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Winters.
Pittsburgh Man Indicted on Drug Possession ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Jeremie Mitchell, age 25, as the sole defendant.
According to the indictment, on or about September 3, 2019, Mitchell possessed with the intent to distribute 100 grams or more of a mixture and substance heroin, a Schedule I controlled substance, and a quantity of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance.
The law provides for a minimum sentence of 10 years and a maximum total sentence of life in prison, a fine not to exceed $8,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the Pittsburgh Bureau of Police 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.
Pharmacy Owners Agree to Pay $1.1 Million and Abide by 10-Year Federal Healthcare Exclusion to Resolve False Claims Act LiabilityRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced that the owners of E-Z Pharmacy in Philadelphia have agreed to pay $1,100,000 to resolve liability under the False Claims Act.
Dhanyabapa LLC, doing business as E-Z Pharmacy, and Shardaben Patel will jointly pay $1,100,000 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed during the period from January 1, 2012 to December 31, 2016. These medications include Advair Diskus, Humalog, Novolog, Renvela, and Lidoderm. Dhanyaba LLC and Shardaben Patel also agreed to a ten-year federal healthcare exclusion, which will prohibit them from receiving payments from any federally funded health care insurer such as Medicare for the next decade.
“Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse,” said U.S. Attorney McSwain. “We appreciate E-Z Pharmacy's willingness to promptly negotiate a resolution in this matter. I also want to thank the Department of Health and Human Services, Office of the Inspector General for its referral of this matter. Our Office will continue to work proactively with our law enforcement partners to identify and prosecute fraudulent conduct.”
“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayer dollars are only spent on bona fide medical claims.”
The settled civil claims are allegations only. There has been no determination of civil liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Deborah W. Frey, Civil Chief Gregory B. David, and Auditor George Niedzwicki.
National Telecommunications and Information Administration Releases Report on Effectiveness of Micro-Jamming Contraband Cellphones in PrisonsRead the Press Release
The National Telecommunications and Information Administration (NTIA) has released a report on the effectiveness of a new technology used to block illegal cellphone signals in correctional institutions. Department officials are encouraged by the promising results and the potential for the technology to disable contraband cellphones in prisons.
The NTIA report details the results of an April 2019 Federal Bureau of Prisons (BOP) pilot test of micro-jamming technology at a state prison in Columbia, S.C. The results are promising, showing that the new technology could be effective in preventing the use of contraband cellphones in prisons. As detailed in the report, NTIA observed micro-jamming technology installed and operated within half of an inmate housing unit. The testing was overseen by BOP staff who observed that cell signals inside the housing unit were blocked, while legitimate calls could be made one foot outside of the housing unit perimeter. This test followed two earlier tests at a federal corrections facility in Cumberland, Md., one of which included a micro-jamming test showing that the technology rendered cellular signals inoperable inside a single cell.
Contraband cellphones are used by inmates to engage in criminal activity, or even run entire criminal enterprises, while incarcerated, endangering law enforcement officers (including correctional staff) and the public. For instance, in June 2019, the Department of Justice announced charges against members and associates of the Aryan Brotherhood, many of whom are currently serving life prison sentences for murder. Some of the charged defendants allegedly used cellphones that had been smuggled into prison to order murders and oversee other criminal activities.
There are countless examples of prisoners using illegal cellphones from behind bars to engage in illicit activities, such as sextortion schemes and conspiracies to purchase a mail bomb over the Dark Web or traffic drugs. “We are pleased with the most recent test results, and our efforts to test and employ new technology will continue until inmates cannot use contraband cellphones to terrorize, threaten, or harm our communities,” said Assistant Attorney General Beth Williams. “We also want to thank Senators Lindsey Graham and Tom Cotton and Congressman David Kustoff for their leadership on this important issue."
The BOP will continue to evaluate cell signal detection and interception technologies and work with its partners and Congress to achieve cost-effective options to combat this threat to corrections and public safety. BOP does not endorse any specific vendor or product.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Eleven TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to five months in federal prison.
Gabriel Hernandez-Martinez, age 39, a citizen of Mexico illegally present in the United States received the prison term after a June 21, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Hernandez-Martinez admitted he had previously been deported from the United States in October 2009, December 2009, March 2010, and November 2010 and illegally reentered the United States without the permission of the United States government. Hernandez-Lopez and other illegal aliens were found by immigration agents in May 2019 after a traffic stop in Bremer County, Iowa. Hernandez-Martinez was also deported to Mexico one time in November 1998, three times in November 1999, two times on the same day in June 2005, and one additional time in October 2009.
Hernandez-Martinez was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Hernandez-Martinez was sentenced to five months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez-Martinez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2038.
Follow us on Twitter @USAO_NDIA.
Metairie Man Charged with Conspiracy to Distribute OxycodoneRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that a Bill of Information was filed September 24, 2019 against AARON JEFFREY DENN, age 34, of Metairie charging him with conspiracy to distribute oxycodone, a Schedule II controlled substance.
If convicted, DENN faces a possible maximum sentence of 20 years imprisonment and a $1,000,000 fine as to Count 1 of the Information. He also faces at least three years of supervised release.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, the Department of Health and Human Services, and the Jefferson Parish Sheriff’s Office for their work investigating the case. U.S. Attorney Strasser reiterated that the Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Jared Hasten of the U.S. Department of Justice Criminal Division, Fraud Section.
Merrimack Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD - Joseph Francis Brodie, Jr., 50, of Merrimack, pleaded guilty in federal court Tuesday to drug trafficking charges, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, on September 28, 2018, a cooperating individual, at the direction of Nashua Police Department detectives, arranged to buy heroin from Brodie. On October 2, 2018, the cooperating individual contacted Brodie again and arranged to buy more heroin. Lab testing revealed that Brodie sold a combination of fentanyl and heroin to the individual.
Brodie is scheduled to be sentenced on January 15, 2020.
“Trafficking in fentanyl and heroin has caused great damage to the health and safety of people throughout New Hampshire,” said U.S. Attorney Murray. “The U.S. Attorney’s Office is working closely with all of our law enforcement partners to identify and prosecute those who are distributing these deadly drugs.”
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Men from Lima and Willard sentenced to prison for child pornography crimesRead the Press Release
Two men from Northwest Ohio were sentenced to prison for crimes related to child pornography.
Dustin Davis, 42, of Lima, was sentenced to nine years in prison. He previously pleaded guilty to one count of receipt and distribution of child pornography.
Davis received and distributed numerous images of child pornography between September and November 2018, according to the indictment.
In a separate case, Karl Rogers, 35, of Willard, was sentenced to eight years in prison. Rogers was previously convicted at trial of receiving and distributing child pornography.
The Department of Homeland Security investigated the Davis case. The FBI and Ohio Internet Crimes Against Children investigated the Rogers case. Assistant U.S. Attorney Tracey Ballard Tangeman prosecuted both cases.
Members of Nationwide Child Exploitation Enterprise Sentenced to PrisonRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that the following sentences were handed down this week for defendants’ participation in a nationwide child exploitation enterprise and child pornography conspiracy occurring over the online communications service Discord: (a) Andrew Dowdle, 47, of Oswego, New York, was sentenced to 16 years’ imprisonment and 15 years of supervised release; (b) Carl Masters, 44, of Lawrence, Kansas, was sentenced to 27 years’ imprisonment and a lifetime of supervised release; and (c) Ric Crossfield, Jr., 24, of Queens, New York, was sentenced to 14 years’ imprisonment and 40 years of supervised release. All three defendants will be required to register as sex offenders upon their release from incarceration. All sentences were imposed by United States District Judge Harvey Bartle III.
The case represents the first child exploitation enterprise prosecution ever brought in the Eastern District of Pennsylvania.
The sentenced defendants and their co-conspirators congregated on Discord, an Internet communications service permitting users to create “servers” (essentially chat rooms with certain advanced features) typically organized around a particular common interest. In the case of the sentenced defendants and their co-conspirators, their common interest was child pornography streamed via web camera or cell phone camera over any of a number of video-streaming platforms (including Omegle, Skype, live.me, Snapchat, Periscope, musical.ly, YouNow and others).
Over various Discord servers, the defendants and the other enterprise members encouraged one another to produce child pornography by communicating over the Internet directly with minors and enticing them to broadcast sexually explicit videos of themselves, and then to share the results of their successful efforts (which they described as “wins”) with other members of the group. The members also provided each other with links to child pornography and technical advice designed to facilitate the viewing and retention of child pornography videos. Hundreds of minor children were victimized by the enterprise, and vast quantities of child pornography were produced.
Each of these sentences followed a previous guilty plea. Dowdle pled guilty to conspiracy to advertise child pornography on April 8, 2019. Masters pled guilty to engaging in a child exploitation enterprise and conspiracy to advertise child pornography on April 25, 2019. Crossfield pled guilty to engaging in a child exploitation enterprise and conspiracy to advertise child pornography on April 17, 2019.
“The harm caused by any child exploitation is devastating and long-lasting,” said First Assistant U.S. Attorney Williams. “In this case, the impact can be multiplied by the hundreds of victims these defendants and others manipulated for their own benefit. There can be no doubt that children across the nation, and the world, are safer now that these defendants are off the street. We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Seth M. Schlessinger and Trial Attorneys Lauren E. Britsch and Kaylynn N. Foulon of the Department of Justice’s Child Exploitation and Obscenity Section.
Maine Woman Sentenced to Prison and Home Confinement for Promoting ProstitutionRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Lourdes Suero, 46, of Biddeford, Maine, was sentenced today by U.S. District Court Judge Nancy Torresen to five months in prison and three years of supervised release for using a facility of interstate commerce to promote prostitution. After completing her prison sentence, Suero must serve up to five months of home confinement as a condition of supervised release. She pleaded guilty on March 18, 2019.
Court records reveal that on April 22, 2017, Suero went to a motel in Scarborough, Maine, where she met up with her adult son, Isaac Suero, and the female victim, who was 15 years old. The defendant booked a room at the motel for the evening of April 22, exchanged telephone numbers with the victim, and left the victim in the rented motel room. The defendant and the victim later texted about the victim’s prostitution activities, with the defendant agreeing to drive the victim to meet with a client. The victim engaged in multiple commercial sex acts while she was staying in the room the defendant rented, and ultimately left the motel on her own the following day. The defendant’s son, Isaac Suero, was sentenced in a related case in June to nine years in prison for conspiracy to commit sex trafficking of a minor. Records in that case show that in the days before Isaac Suero and the female victim met with the defendant in Scarborough, Isaac Suero was trafficking the victim in the Bangor area.
The District of Maine is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
The Southern Maine Gang Task Force—comprised of investigators from the FBI; the Portland, South Portland and Lewiston Police Departments; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Drug Enforcement Administration—investigated the case. The Androscoggin County Sheriff’s Office and District Attorney’s Office also provided assistance.
MEDIA ADVISORY: United States Attorney Mike Stuart to Hold Press Conference in Beckley TomorrowRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart, joined by federal, state and local law enforcement officials, will hold a press conference in Beckley on Thursday, September 26, 2019 at 1:30 p.m. to discuss law enforcement actions of significant interest.
Where: Robert C. Byrd Federal Building
110 North Heber Street
Beckley, WV
When: Thursday, September 26, 2019 @ 1:30 p.m.
Follow us on Twitter: SDWVNews
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Lynn Man Sentenced for Multi-Million Dollar Lottery Ticket ScamRead the Press Release
BOSTON - A Lynn man was sentenced on Monday, Sept. 23, 2019, for tax fraud charges in connection with a “ten-percenting” scheme, in which he purchased millions of dollars’ worth of winning Massachusetts state lottery tickets at a discount in order to help the ticket holders avoid taxes on the winnings.
Clarance Jones, 80, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to two months in prison and two years of supervised release with the first six months to be served in home confinement. In May 2019, Jones pleaded guilty to conspiring to commit tax fraud and filing false tax returns.
Co-conspirators George Kinslieh, 69, pleaded guilty to filing false tax returns and was sentenced to one year of probation, and Bhavna Patel, 44, pleaded guilty to one count of conspiring to defraud the Internal Revenue Service and was sentenced to one year of probation and ordered to pay a $1,000 fine.
From at least 2013 through 2015, Kinslieh and Patel, who were store owners, and others, purchased winning lottery tickets from the ticket holders for cash, at a discount to the value of the tickets, thereby allowing the ticket holders to avoid reporting the winnings on their tax returns – a scheme known as “ten-percenting.” Kinslieh and Patel gave the winning tickets to Jones, who presented them to the Massachusetts State Lottery Commission as his own, and collected the full winnings. Jones reported the winnings on his tax returns, but offset them with purported gambling losses. Jones and the store owners then shared the excess winnings.
For the tax years 2011 through 2017, Jones paid less than $16,000 in federal tax on a total of approximately $52,000 of reported income. During this period, Jones claimed that he was a professional gambler and that all of his winnings were offset by alleged gambling losses. Patel and Kinslieh did not report to the Internal Revenue Service or pay taxes on the income that they received from the ticket scheme.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. The Massachusetts State Lottery Commission provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit prosecuted the cases.
Lowell, Massachusetts Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Jesus Lopez, 27, of Lowell, Massachusetts, pleaded guilty in federal court on Tuesday to distributing a controlled substance, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, between October 26, 2017 and January 31, 2018, law enforcement officers used a cooperating individual to make three separate controlled purchases of fentanyl from Lopez in Hudson, New Hampshire.
Lopez is scheduled to be sentenced on January 15, 2020.
“Interstate fentanyl trafficking presents a grave risk to the health and safety of the citizens of New Hampshire,” said U.S. Attorney Murray. “We will continue to work closely with our law enforcement partners to identify and prosecute those who distribute this deadly drug. I commend the New Hampshire State Police for their efforts in this case.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Long-Term FBI Investigation Shutters Large Akron to West Virginia Drug Trafficking OrganizationRead the Press Release
21 Total Individuals Indicted for Roles in Drug Conspiracy
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced multiple indictments today charging numerous individuals with participating in a conspiracy to distribute methamphetamine and heroin which operated between Akron, Ohio and the Southern District of West Virginia. The indictments and subsequent arrests resulted from an extensive, joint investigation spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ona Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. Also included in the charges is information uncovered in a separate investigation conducted by the Huntington Police Department. The investigation resulted in two indictments charging a total of 21 individuals for their roles in distributing large quantities of methamphetamine and heroin, primarily in Cabell, Putnam, and Kanawha Counties in the Southern District of West Virginia.
“This case demonstrates the incredible commitment of federal, state and local law enforcement to work collaboratively and cooperatively across jurisdictional boundaries to shut down the pipeline of drugs flowing into West Virginia,” said United States Attorney Mike Stuart. “My Office has spearheaded many, many takedowns but this one is particular important. Indictments by a West Virginia grand jury are being executed today in Akron and West Virginia. Search warrants were executed and, trust me, this is dangerous work. I always pray for the safety of law enforcement involved in the arrests. Those arrested in Akron will be brought to West Virginia and prosecuted in West Virginia. When I took my oath of office nearly two years ago, I did so with the absolute conviction that I would do all in my power to root out the drug dealers, drug thugs and poison peddlers that have caused so much devastation, despair and death. As a son of West Virginia, my heart aches for the effects of this scourge on our people, our families and our children. I am impassioned to end this scourge. We will continue to do everything within our power and use every available resource to disrupt the supply of deadly drugs coming into our state, prosecute those responsible to the fullest extent of the law, and protect the people of West Virginia.”
"Drug dealers are trying to take advantage of the addiction problem this community and the entire state faces," said FBI Pittsburgh Special Agent in Charge Robert Jones. "They have chosen West Virginia to do business, but I’m here to tell them today, to take their business elsewhere. We and our law enforcement partners will use every tool we have to stop criminals from exploiting the vulnerable people."
This long-term investigation uncovered an ongoing scheme to transport large quantities of crystal methamphetamine and heroin from Akron to the Southern District of West Virginia. The drugs were then distributed across the Southern District, primarily in Cabell, Putnam, and Kanawha Counties. During the investigation, agents were able to purchase large quantities of methamphetamine and seize large quantities of methamphetamine and heroin. It is believed that the shuttering of this drug conspiracy will continue to address and curtail the availability of highly pure methamphetamine and heroin in the Southern District.
The investigation was a collaborative effort between numerous federal, state and local law enforcement partners and today’s actions would not have been possible without the seamless collaboration of all involved agencies. The investigation is ongoing and could result in additional federal and state charges in the future.
Please Note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Lexington Man Gets 8 Years in Federal Prison on Firearm ChargeRead the Press Release
Columbia, South Carolina -- United States Attorney Sherri A. Lydon announced today that Jason Cory Dix, age 42, of Lexington, was sentenced to 99 months in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition. United States District Judge J. Michelle Childs of Columbia imposed the sentence. After 99 months, Dix will remain under court-ordered supervision for an additional 3 years. There is no parole in the federal system.
Evidence presented in court established that on June 8, 2018, a Deputy with the Lexington County Sheriff’s Department was working patrol and turned into a gas station on South Lake Drive in Lexington. As he turned into the parking lot, he saw a black SUV waiting to exit the lot. The driver, later identified as Dix, quickly grabbed his seatbelt and fastened it, and as Deputy Smith drove past Dix he could not see a tag affixed to the rear of the SUV. As Deputy Smith turned around, he saw the SUV traveling at a high rate of speed and then run the red light at the intersection of Southwood Drive and Old Orangeburg Road. The Deputy activated his blue lights and siren to initiate a traffic stop, but Dix failed to stop. Dix reached speeds of 104 mph before colliding with another vehicle, the driver of which was taken to the hospital with non-life threatening injuries. When the Deputy searched the SUV, a Ruger P-89 9mm and two loaded magazines were found in the floorboard of the vehicle. Dix admitted that the firearm and ammunition were his.
Federal law prohibits Dix from possessing firearms and ammunition based upon multiple prior state convictions: a 1996 assault and battery of a high and aggravated nature, a 1998 possession of crack cocaine, three counts of breaking and entering a motor vehicle in 1999, a 2005 manufacturing methamphetamine and trafficking methamphetamine, and a 2016 manufacturing methamphetamine 2nd offense. Dix was on probation at the time of the June 18, 2018, offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. It was prosecuted as part of the joint federal, state, and local 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. Special Assistant United States Attorney Casey Rankin Smith of the Eleventh Judicial Circuit Solicitor’s Office prosecuted the case.
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Lawrence Man Sentenced to Prison for Conspiracy to Distribute FentanylRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Worcester in connection with a 2017 fentanyl trafficking conspiracy.
Ernesto Rodriguez, 49, was sentenced by U.S. District Court Judge Timothy S. Hillman to 20 months in prison and three years of supervised release. Rodriguez previously pleaded guilty to conspiring to distribute in excess of 40 grams of fentanyl.
In May 2019, co-defendant Jorge Burgos, 40, of Leicester, was sentenced to 60 months in prison and 40 months of supervised release, and in August 2019, another co-defendant, Joshua Sanchez, a/k/a Manuel Peguero, was sentenced to 34 months in prison and three years of supervised released. The last co-defendant, Carlos Rodriguez, previously pleaded guilty and is scheduled to be sentenced on Oct. 9, 2019.
As a result of various wiretaps capturing the defendants’ discussions of sales and purchases of fentanyl in November and December 2017, law enforcement agents conducted surveillance of Rodriguez participating in fentanyl sales on multiple occasions. On Dec. 20, 2017, after intercepted communications suggested that a co-defendant would be delivering 50 grams of fentanyl to a residence in Leicester, Mass., agents stopped the co-defendant’s vehicle and recovered just under 50 grams of fentanyl. That day, an additional 40 grams of fentanyl were turned over to authorities by Rodriguez.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the United States Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; and Leicester Interim Police Chief Kenneth Antanavica made the announcement. Assistant U.S. Attorney Mark Grady of Lelling’s Criminal Division prosecuted the case.
Laplace Man Pleads Guilty to Federal Drug and Firearm ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that ANDREW ANDERSON, age 38, a resident of LaPlace, Louisiana, pleaded guilty on September 23, 2019 to a three-count Superseding Bill of Information. In Count One, ANDERSON pled guilty to possession with the intent to distribute a quantity of a mixture or substance containing a quantity of heroin, cocaine base, and cocaine hydrochloride. In Count Two, ANDERSON pled guilty to possession of firearms in furtherance of drug trafficking crimes. In Count Three, ANDERSON pled guilty to being a convicted felon in possession of firearms and ammunitions.
The Honorable District Court Judge Lance Africk will sentence ANDERSON on January 8, 2020. ANDERSON faces a maximum sentence of up to twenty years of imprisonment, a fine up to $250,000.00, a period of supervised release not less than three years, and a mandatory assessment fee of $100.00, as it relates to Count One. For Count Two, ANDERSON faces a mandatory minimum sentence of five years of imprisonment, to run consecutive to any other sentence imposed by the court, a fine up to $250,000.00, a period of supervised release up to five years, and a mandatory assessment fee of $100.00. As it relates to Count Three, ANDERSON faces a maximum sentence of ten years imprisonment, a fine up to $250,000.00, a period of supervised release up to three years, and a mandatory assessment fee of $100.00.
This case was brought as part of Project Safe Neighborhoods (“PSN”), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Peter G. Strasser praised the work of the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. John Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Kidnapper Michael Webb Convicted of Abducting 8-Year Old GirlRead the Press Release
Kidnapper Michael Webb has been found guilty of abducting an 8-year-old girl and holding her captive for eight hours, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a two-day trial, a federal jury in Fort Worth, Texas convicted Webb, 51, of kidnapping after less than 10 minutes of deliberation.
“Today’s jury verdict represents closure and consequence -- closure for the family and consequence for Michael Webb,” said U.S. Attorney Nealy Cox. “Early on, I pledged to the family that my office would seek justice on behalf of this victim, this family, and this community. As a prosecutor and a mother, it was important for me to take part in presenting this case to a jury. We’re glad this jury delivered swift justice.”
"Today's verdict underscores the FBI's commitment to aggressively pursue those who would prey on the most vulnerable in our community," said Special Agent in Charge Matthew J. DeSarno of the FBI's Dallas Field Office. "I am proud of the outstanding collaboration in this case between the FBI's Child Exploitation Task Force, the Fort Worth Police Department's Major Case Unit Task Force, and the many citizen volunteers who worked tirelessly to help bring the victim home safely. The critical role volunteer searchers and other members of the public played in recovering the victim cannot be overstated, and the FBI is grateful for their assistance.”
According to evidence presented at trial, Webb grabbed the child as she and her mother were walking down Fort Worth’s 6th Avenue at 6:38 p.m. on Saturday, May 18. Neighborhood surveillance video shows the victim’s mother knocked to the ground as Webb’s car drives away.
The victim’s mother testified, describing her daughter as “brave, strong, and smart” before describing for the jury the horrific details of the “physical fight” for her daughter’s life.
In a three-hour recorded interview with the FBI, Webb confessed to the kidnapping, admitting that after successfully fighting off the child’s mother, he drove to a church parking lot. Later that evening, he admitted that he took the girl to Forest Hill’s WoodSprings Suites hotel, where he carried the child into a room and held her captive.
It was around midnight when a tip led Forest Hill police officers to Webb’s room. Shortly before their arrival, Webb admitted to threatening the girl, and hiding the girl from law enforcement in a small laundry basket. The officers, having visually inspected the room, left without finding the child.
Meanwhile, friends, volunteers, and law enforcement canvassed the city of Fort Worth looking for the missing girl. It was ultimately the efforts of a family friend who spotted Webb’s Ford sedan and called 911. Fort Worth Police Department responded and confirmed that there appeared to be blood on the front passenger seat. Law enforcement then acted quickly to gain entry into the hotel room, rescuing the victim who was found hidden in the laundry basket.
Jurors heard an emotional, “We got her, we got her!” from officers who announced the news over the radio moments after they found the girl. “He’s in custody; we have her.”
Webb, who has been in federal custody since his arrest on May 19, faces up to life in federal prison. A sentencing date has not yet been set.
The investigation was conducted by the Federal Bureau of Investigation’s North Texas Child Exploitation Task Force, the Fort Worth Police Department’s Major Case Unit Taskforce, which includes representatives of local law enforcement around the region, Homeland Security Investigations and the Texas Department of Public Safety. U.S. Attorney Erin Nealy Cox and Assistant U.S. Attorney Aisha Saleem, the District’s Project Safe Childhood Coordinator, are prosecuting the case. U.S. District Judge Reed C. O’Connor presided over the trial.
Jury Finds Brooklyn Man Guilty of Conspiracy and Attempting to Provide Material Support to ISISRead the Press Release
A jury in Brooklyn returned a verdict yesterday finding Dilkhayot Kasimov, 31, a citizen of Uzbekistan and resident of Brooklyn, New York, guilty of conspiracy and of attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS). The verdict followed a one-week trial before United States District Judge William F. Kuntz, II. When sentenced, Kasimov faces up to 30 years’ imprisonment.
“Dilkhayot Kasimov worked to support ISIS, including by collecting and giving money to another individual to fund his travel to join the terrorist group. The jury has held Kasimov accountable for his crimes,” said Assistant Attorney General for National Security John C. Demers. “The National Security Division is committed to help defend the nation against foreign terrorist groups and those who support them. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“As found by the jury, Kasimov was part of a conspiracy in which he willingly and eagerly sought to help fund a foreign fighter’s travel and expenses in Syria to wage violent jihad,” stated United States Attorney Richard P. Donoghue for the Eastern District of New York. “The Department of Justice and our law enforcement partners will continue working relentlessly to protect our country from those who would provide support of any kind to terrorists seeking to harm the United States and its allies.”
“This verdict should serve as a warning to those who provide support of any kind to foreign terrorist organizations and their sympathizers,” stated FBI Assistant Director-in-Charge Sweeney. “Kasimov joins a growing list of individuals facing significant jail time for their efforts to fund or carry out acts of terror. The public should know that the FBI continues to make every effort to protect Americans at home and abroad, and we’ll continue to work with our international partners to mitigate the threat posed by terrorists and would-be terrorists worldwide.”
“This case highlights how vital our work is in intercepting and halting those among us who remain willing to support the terrorism that threatens innocent lives,” stated NYPD Commissioner O’Neill. “It shows our commitment to remaining vigilant, with our law enforcement partners, against all forms of terrorist threats around the world and here at home.”
The evidence at trial established that Kasimov’s co-conspirators, Abdurasul Juraboev and Akhror Saidakhmetov, planned to travel to Syria to fight on behalf of ISIS, and Kasimov provided money – his own and cash collected by others – to help fund Saidakhmetov’s travel and expenses. On the evening of Saidakhmetov’s scheduled departure in February 2015, Kasimov drove to John F. Kennedy International Airport, met Saidakhmetov at Terminal 7 and handed him $1,600 in cash on behalf of himself, co-conspirator Abror Habibov and others.
Co-conspirators Juraboev, Saidakahmetov and Habibov, as well as co-conspirators Akmal Zakirov and Azizjon Rakhmatov, have previously pleaded guilty. Juraboev and Saidakahmetov were each sentenced to 15 years’ imprisonment. Habibov, Zakirov and Rakhmatov are awaiting sentencing.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Douglas M. Pravda, David K. Kessler, and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
Jury Convicts Johnstown Man of Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was found guilty after a three-day jury trial of distribution of crack cocaine, U.S. Attorney Scott W. Brady announced today.
Clarence M. Cosby, 37, of Johnstown, Pa., was convicted of distributing a quantity of cocaine base, commonly known as "crack," a Schedule II controlled substance on July 5, 2017.
U.S. District Judge Kim Gibson scheduled sentencing for Cosby on February 6, 2020, at 10 a.m. The law provides for a maximum sentence of 30 years in prison and a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and prior criminal history of the defendant.
The case is being prosecuted by Assistant U.S. Attorney Maureen Sheehan-Balchon.
U.S. Attorney Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigations and the Cambria County Drug Task Force for the investigation leading to the prosecution of Clarence Cosby.
Judge Delgado heads to prisonRead the Press Release
HOUSTON – A Texas state district judge has been ordered to federal prison following his multiple convictions of conspiracy, bribery and obstructing justice, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
A federal jury in Houston convicted Rodolfo “Rudy” Delgado, 66, of Edinburg, July 11, following a six-day trial of one count of conspiracy, three counts of federal program bribery, three counts of travel act bribery and one count of obstruction of justice.
Today, U.S. District Judge Alfred Bennett handed Delgado a 60-month sentence to be immediately followed by two years of supervised release. At the hearing, the court heard additional evidence and testimony that detailed the value of the bribery activities and its impact on South Texas. In handing down the sentence, the court noted that a corrupt judge, who abuses the trust the public placed in him to enrich himself, undermines the integrity of the entire criminal justice system and tears at the very fabric of our society.
“The sentencing of Delgado sends a strong message to any public official who chooses to serve him or herself rather than their community,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division. “As this case illustrates, the FBI will tirelessly pursue those who betray the public trust. We can only hold corrupt officials accountable if people refuse to accept this behavior and are willing to cooperate and come forward with information.”
Delgado was a justice in the 13th Court of Appeals for the State of Texas, having been elected in November 2018. He resigned from that position following his conviction.
Prior to that, he was previously the presiding judge for the 93rd District Court for the State of Texas, which has jurisdiction over Texas criminal and civil cases located within Hidalgo County. As a district judge, Delgado conspired with an attorney from January 2008 to November 2016 to accept bribes in exchange for favorable judicial consideration on criminal cases pending in his courtroom.
As part of the investigation, Delgado also accepted bribes on three separate occasions in exchange for agreeing to release three of the attorney’s clients on bond in cases pending before his court. The first two bribes totaled approximately $520 in cash and the third bribe - in January 2018 - totaled approximately $5,500.
After Delgado learned of the FBI’s investigation, he also attempted to obstruct justice by contacting the attorney and providing a false story about the payments.
Previously released on bond, Delgado was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorneys Arthur R. Jones and Robert Guerra are prosecuting the case along with Trial Attorney Peter Nothstein of the Criminal Division’s Public Integrity Section.
Ithaca-Area CPA Sentenced to 87 Months for Bankruptcy Fraud, Mail Fraud, and Money LaunderingRead the Press Release
BINGHAMTON, NEW YORK - Andrew N. LaVigne, age 66, of Lansing, New York, was sentenced today in federal court in Binghamton to serve 87 months in prison for bankruptcy fraud, mail fraud, and money laundering, announced United States Attorney Grant C. Jaquith, James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service, Criminal Investigations (IRS-CI), New York Field Division.
Senior United States District Judge Thomas J. McAvoy also ordered LaVigne to pay over $3.6 million in restitution to his victims.
LaVigne, a Certified Public Accountant (“CPA”) who practiced in the Ithaca, New York area for more than 30 years, filed for personal bankruptcy in 2004. At the time, he owed approximately $7.6 million to over 80 unsecured creditors following a failed scheme to use their money to purchase sports and entertainment memorabilia for resale. During the course of LaVigne’s years‑long bankruptcy proceedings, he claimed that his only asset was his home. He paid back no money to his 80 investors. In pleading guilty, LaVigne admitted that during his bankruptcy he used his CPA practice’s bank accounts to conceal between $3.5 and $9.5 million in assets from the United States Bankruptcy Court and the Office of the United States Trustee. LaVigne laundered money by depositing funds unrelated to his CPA practice into his business accounts and then using that money for his own benefit and that of his family, including buying himself sports memorabilia and writing checks to himself totaling tens of thousands of dollars that were never disclosed in his bankruptcy proceeding.
In pleading guilty, LaVigne also admitted to defrauding an elderly client in a $4.6 million mail fraud scheme. Between 2014 and 2016, LaVigne convinced the elderly victim to pay $3.6 million for shares of a company that LaVigne created, which LaVigne claimed would develop a piece of waterfront property on Pier Road in Ithaca. After the victim bought 90% of the company, LaVigne obtained an additional $1 million from her, purportedly as a further investment in the company. LaVigne did not use the $1 million to invest in the company, and he never developed the property. Instead, he used the victim’s money for his own purposes, including writing checks to himself, paying for the construction of a house for a family member, and funding payroll for his CPA practice. LaVigne also laundered payments he received from this scheme through his CPA practice accounts.
United States Attorney Grant C. Jaquith said, “Bankruptcy is intended to give honest debtors a fresh start. Andrew LaVigne is not that honest debtor. He abused the bankruptcy process for his own gain and attempted to leave his creditors with nothing while he hid and spent millions of dollars. Mr. LaVigne’s crimes did not stop there – he lied to an elderly client and defrauded her of millions of dollars that he spent on himself, his family, and his business. Mr. LaVigne’s frauds cost his victims dearly, and I am grateful to our partners at the IRS, the FBI, and the Office of the United States Trustee for helping to bring him to justice.”
“The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously,” said James N. Hendricks, Special Agent in Charge of the Federal Bureau of Investigation's (FBI) Albany Field Office. “We will continue working with our law enforcement partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”
“IRS Criminal Investigation uses financial investigative expertise to pursue those individuals who engage in corruption as demonstrated in this case by Mr. LaVigne.” said Jonathan D. Larsen, IRS Special Agent in Charge of the New York Field Office, “Money laundering and fraud constitutes a serious threat to our communities and to the integrity of our financial system; today’s sentence is an example of how the FBI and the IRS work together to make a formidable team as we prosecute the offenders.”
This case was investigated by the Internal Revenue Service, Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI), following a referral from the Office of the United States Trustee for the Northern District of New York. It was prosecuted by Assistant U.S. Attorneys Carina H. Schoenberger and Michael F. Perry.
ICE Deportation Officer Arrested on Federal ‘Structuring’ Charges Alleging He Hid Assets from His Then-Wife in Divorce CaseRead the Press Release
LOS ANGELES – A U.S. Immigration and Customs Enforcement deportation officer was arrested today on federal “structuring” charges alleging that he made cash withdrawals and deposits totaling nearly $100,000 designed to circumvent federal reporting requirements and also to conceal assets from his then-wife, who was divorcing him.
Vardan Keshishyan, 47, of Glendale, has been charged in a federal grand jury indictment with two felony counts of structuring of currency transactions to evade reporting requirements. He is expected to appear in United States District Court in downtown Los Angeles to be arraigned on the charges later today.
According to the indictment, in January 2015, Keshishyan deposited approximately $96,369 into a bank account he solely owned and controlled. That amount was the proceeds of the sale of the home he shared with his then-wife, who had filed for divorce two months earlier, according to the indictment.
In January and February of 2015, Keshishyan allegedly made 11 cash withdrawals, each of approximately $9,000, and ultimately totaling $99,400. During one attempted withdrawal, a bank manager warned him that it is a crime to break up a transaction into small amounts to evade the $10,000 reporting requirement mandated by federal law, the indictment alleges. After the manager informed Keshishyan that the bank would have to file a report to comply with federal law, he allegedly cancelled the transaction and instead went to a different bank branch the same day to withdraw $9,000 in cash.
The indictment further alleges that Keshishyan lied under oath to the judge at a June 2015 court hearing in his divorce case, falsely telling the court he had lost $95,000 of the family home sale proceeds, in part, through a bad investment. The court also told Keshishyan that the government “investigate[s]” repeated withdrawals of cash and warned him that transactions above $10,000 generate an “automatic notification.”
Despite these admonishments from the court and the bank manager’s prior warning to Keshishyan about structuring being a crime, Keshishyan allegedly structured $99,000 back into his bank accounts as soon as his divorce was nearly final. On August 19, 2016, just one day after Keshishyan and his then-wife had reached an agreement regarding the terms of their divorce, Keshishyan deposited $9,000 in cash into a bank account that he controlled, the indictment alleges. In January 2017, the month after final judgment was entered in the divorce, Keshishyan allegedly made 10 more cash deposits – each of approximately $9,000 – into two bank accounts that he controlled.
If convicted on both counts, Keshishyan would face a statutory maximum sentence of 10 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by Department of Homeland Security-Office of Inspector General.
This case is being prosecuted by Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Hingham Man Sentenced in Connection with International Money Laundering SchemeRead the Press Release
BOSTON - A Hingham man was sentenced yesterday in federal court in Boston in connection with an international money laundering scheme.
Yannick A. Minang, 26, was sentenced by U.S. District Court Judge F. Dennis Saylor to 46 months in prison, three years of supervised release, and forfeiture and restitution – each in the amount of $465,616. In January 2019, Minang pleaded guilty to a five-count indictment charging international money laundering, structuring, unlawful monetary transactions, concealment money laundering, and false statements.
In 2017, Minang opened, and caused to be opened, bank accounts in the names of sole proprietorship businesses as part of a business email compromise (BEC) scheme that targeted individuals about to purchase real estate. Generally, a BEC scheme is a sophisticated scam which targets businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques to cause individuals to transfer funds to accounts controlled by the scammers.
Minang’s scheme worked as follows: shortly before closing on properties, the victims received emails from their real estate agents or title companies containing wiring instructions that directed the victims to send funds to accounts that Minang and others had opened and controlled. The emails, however, were spoofed – made to appear to be coming from title company representatives and real estate agents, when in fact they were sent from email accounts created solely to carry out the fraud. After each deposit of fraudulent proceeds, the funds were wired to bank accounts abroad or withdrawn via structured cash withdrawals.
Earlier this year, Minang was charged in a separate federal indictment in connection with a similar, but different, business email compromise scheme. It is alleged that Minang committed that crime while charges in this case were pending.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, prosecuted the case.