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24 September 2019
Citizen of Dominican Republic Pleads Guilty to Illegal ReentryRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that PLACIDO SANTIAGO, 62, a citizen of the Dominican Republic last residing in Bridgeport, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to reentry of a removed alien.
According to court documents and statements made in court, in October 1999, Santiago, who at the time was a lawful permanent resident of the U.S., was convicted in Massachusetts of indecent assault and battery on a child under 14. Santiago was deported to the Dominican Republic in October 2006.
On November 6, 2018, Santiago was arrested by the Bridgeport Police Department on assault charges. He has been detained since his arrest.
At sentencing, which is not yet scheduled, Santiago faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Department of Homeland Security, U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
Calhoun County Woman Charged with Embezzlement from Former EmployerRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a Calhoun County resident with a wire fraud scheme, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Patrick Davis.
The U.S. Attorney’s Office filed a one-count information in U.S. District Court, charging ANGELA CHEATWOOD, 41, with a wire fraud scheme.
According to the information, Cheatwood embezzled over $484,000 from Sacred Heart of Jesus Catholic Church and Sacred Heart School in Anniston, Alabama. Cheatwood was the bookkeeper for the church and the school. During her time as bookkeeper, Cheatwood wrote unauthorized checks to her personal bank account from the church bank account. Additionally, Cheatwood took cash which had been collected from fundraisers and donations for the school and deposited those funds into her personal bank account instead of the school’s bank account.
“Cheatwood substituted her own personal priorities ahead of the needs of parishioners, teachers, and the students, and betrayed their trust,” Town said. “Sadly, churches and schools are not immune from fraud, but hopefully prosecutions such as this will discourage others who seek to enrich themselves at the expense of their community.”
“Ms. Cheatwood’s betrayal as a bookkeeper for her own personal gain not only caused a significant loss to her church and it’s school, but to the Anniston, AL community that it serves,” Davis said. “The U.S. Secret Service will always seek prosecution of those that would exploit their position of trust for their own enrichment.”
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
United States Secret Service investigated the case, which Assistant U.S. Attorney Lloyd Peeples is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Brandon Woman Sentenced for Wire Fraud in McCrossan Boys Ranch Embezzlement CaseRead the Press Release
United States Attorney Ron Parsons announced that a Brandon, South Dakota, woman convicted of Wire Fraud was sentenced on September 23, 2019, by U.S. District Judge Lawrence L. Piersol.
Crystal Nelson, age 42, was sentenced to 12 months and 1 day in federal prison, followed by 3 years of supervised release, restitution in the amount of $199,533.52 to McCrossan Boys Ranch, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Nelson was indicted by a federal grand jury on February 6, 2019. She pled guilty on June 26, 2019.
The conviction stemmed from incidents beginning on or about December 2013, and continuing through September 2018, when Nelson, who was the bookkeeper for McCrossan Boys Ranch, falsely and fraudulently inflated her own payroll checks and then used the funds for her own purposes. She disguised her theft by debiting money from the payroll account and crediting the operating account, and by creating false documentation for McCrossan Boys Ranch’s payroll binder. Nelson also used the McCrossan Boys Ranch’s credit card without authority for her own personal expenses and stole money from client fund accounts.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Nelson has been allowed to self-surrender to the U.S. Marshals Service.
Augusta Man Sentenced to Two Years for Heroin, Crack and Fentanyl ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Donald Morang, a/k/a “DW,” 39, formerly of Augusta, Maine, was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr., to two years in prison and three years of supervised release for conspiracy to distribute heroin; cocaine base, commonly known as “crack;” and fentanyl. Morang pled guilty on October 17, 2018.
According to court records, between June 2015 and March 2017, Morang conspired with others to acquire heroin and crack in Rochester, New York and to distribute it in Central Maine. The defendant assisted the head of the conspiracy, Darrell Newton, and other dealers Newton sent from Rochester to distribute the drugs in Central Maine. He facilitated drug deals, introduced Rochester conspirators to area distributors, and assisted other conspirators in finding residences from which to sell drugs. He also dropped off drugs and picked up proceeds from residences in Central Maine.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department. This case was prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Atlantic City, New Jersey, Woman Charged with Drug Distribution Resulting in DeathRead the Press Release
NEWARK, N.J. – An Atlantic City, New Jersey, woman was indicted today on charges including drug distribution that resulted in a death, U.S. Attorney Craig Carpenito announced.
Rajeri Curry, 30, is charged by indictment with one count of distribution of heroin and fentanyl that resulted in a death, one count of conspiracy to distribute heroin and one count of possession with the intent to distribute heroin. Curry was charged by complaint in March 2019 and has been detained without bail.
According to documents filed in this case:
On June 1, 2018, Curry distributed a substance containing heroin and fentanyl to an individual who died as a result of using the substance. Law enforcement found the deceased victim inside a vehicle in the parking lot of an Atlantic City, New Jersey, restaurant. Inside the victim’s vehicle were multiple wax folds that contained heroin and fentanyl and were stamped with the words “BODY COUNT.” Shortly before the victim’s death, surveillance footage captured Curry distributing narcotics to the 30-year-old victim.
U.S. Attorney Carpenito credited special agents of the DEA’s Newark Office, under the direction of Special Agent in Charge Susan A. Gibson, officers from the Atlantic City Police Department, under the direction of Chief Henry M. White Jr., and the Atlantic County Prosecutor’s Office, under the direction of Damon G. Tyner, with the investigation leading to the charges.
The drug distribution resulting in death charge carries a maximum punishment of life in prison and a fine of $1 million. The other counts are each punishable by a maximum of 20 years in prison.
The charges and allegations in the indictment are merely accusations, and Curry is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Catherine R. Murphy and Heather Suchorsky of the U.S. Attorney’s Office Criminal Division in Newark.
Arizona Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – An Apache Junction, Arizona man pled guilty to possessing methamphetamine and heroin, announced United States Attorney Mike Stuart. Clint Gentile, 39, pled guilty to possession with the intent to distribute methamphetamine and heroin.
“550 grams of meth and 11 grams of black tar heroin,” said United States Attorney Mike Stuart. “Gentile was coming from Arizona, but I don’t care where drug dealers are bringing drugs from – we don’t want out-of-state drug dealers peddling their poisons here.”
Gentile admitted that on July 26, 2019 he was traveling on I-64 in Cabell County, West Virginia. The vehicle was pulled over for various traffic violations. Members of the Violent Crime and Drug Task Force West searched the vehicle and found approximately 550 grams of methamphetamine and 11 grams of black tar heroin. Gentile admitted that he had traveled to West Virginia with the intent to distribute the methamphetamine and heroin.
Gentile faces up to twenty years in prison when sentenced on January 6, 2020.
The Violent Crime and Drug Task Force West conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
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Additional Charges Brought Against Defendant in College Admissions CaseRead the Press Release
BOSTON – The 52nd defendant charged in the college admissions case, Xiaoning Sui, was charged in a superseding indictment today with international money laundering and conspiring to commit fraud and federal programs bribery in connection with a scheme to facilitate her son’s admission to the University of California at Los Angeles (UCLA) as a purported soccer recruit.
Xiaoning Sui, 48, a Chinese national residing in Surrey, British Columbia, Canada, was charged in an superseding indictment today with an expanded conspiracy charge, two counts of money laundering and three counts of wire fraud and honest services wire fraud. Sui was arrested on an indictment last week in Spain on one count of conspiracy to commit mail fraud and honest services mail fraud. Sui is currently detained pending her extradition to Boston.
According to the indictment, Sui agreed with William “Rick” Singer to pay $400,000 to facilitate her son’s admission to UCLA as a purported soccer recruit, even though he did not play soccer competitively. As a result of the scheme, Sui’s son was admitted to UCLA in November 2018, and awarded a 25 percent tuition scholarship.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud, honest services mail fraud and federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The mail fraud, honest services mail fraud, and money laundering charges each carry a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the court documents are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Attorney General Fox, US Attorney Alme Announce Plans for Second Missing Persons TrainingRead the Press Release
HELENA – Attorney General Tim Fox and U.S. Attorney Kurt Alme announced their offices, together with the FBI and the Bureau of Indian Affairs, will co-sponsor a second missing persons training for the public and law enforcement. The event will take place at the First Interstate Bank Operations Center in Billings on October 16.
The first joint missing persons training was held in June in Helena. “Because we had strong interest in our first collaborative training, U.S. Attorney Kurt Alme and I decided we wanted to offer a more convenient opportunity for law enforcement and the public on the eastern side of the state to attend,” Attorney General Tim Fox said. “Toward that end, we look forward to offering this second training to improve Montana’s response to missing persons cases, particularly those involving Native Americans.”
The event will provide instruction for law enforcement on accepting and entering a missing person’s report, use of missing persons alerts and advisories, and conducting missing persons investigations. A separate session for the public will offer information on how to report a missing person, give an overview of missing persons databases and alert systems, and discuss other resources that are available.
“We are pleased to be working again with Attorney General Fox, the Federal Bureau of Investigation and the Bureau of Indian Affairs to provide this important joint training on missing persons resources for all federal, state, local and tribal law enforcement in Montana and for tribal councils and members of the public,” U.S. Attorney Kurt Alme said. “By working with law enforcement and family and friends to better collect and share information about missing persons, particularly Native Americans, we can help bring more people home.”
23 September 2019
Western Iowa Methamphetamine Traffickers SentencedRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on September 19, 2019, Chase Lee Richard, age 34; Brandy Lee Kumpula, age 28; and Jackie Lynn Thielan, age 31, were sentenced for Conspiracy to Distribute Methamphetamine by United States District Court Judge John A. Jarvey. Richard was sentenced to 15 years in prison to be followed by five years of supervised release; Kumpula was sentenced to eight years in prison to be followed by five years of supervised release; and Thielen was sentenced to 10 years in prison to be followed by five years of supervised release.
In late 2017, the Iowa Division of Narcotics Enforcement with the Federal Bureau of Investigation Safe Streets Task Force began investigating a large drug trafficking organization that was transporting large quantities of methamphetamine in and around the Western Iowa and Eastern Nebraska areas. As part of that investigation, law enforcement determined that Jackie Thielen was transporting and distributing large amounts of the methamphetamine to various locations in Shelby County, Iowa. Law enforcement determined that Thielen was obtaining the methamphetamine from Chase Richard. Law enforcement learned that Richard was also providing large quantities of methamphetamine to multiple people including Brandy Kumpula, who was selling methamphetamine to individuals in Council Bluffs and Omaha.
Previously sentenced in this case were Jessica Snavely to a prison term of ten years and William LaBenz to a prison term of five years. Four additional defendants are pending sentencing.
The case was investigated by the Iowa Division of Narcotics Enforcement, Federal Bureau of Investigation’s Safe Streets Task Force, Omaha Police Department, Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, Harlan Police Department and the Shelby County Sheriff’s Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Waterbury Man Pleads Guilty to Theft of Social Security BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ZIMER KALICI, 55, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of theft of public money related to his illegal receipt of Social Security benefits.
U.S. Attorney Durham noted that individuals are not eligible for Social Security benefits when they permanently relocate to live outside of the U.S., and eligibility for Social Security benefits terminates upon death.
According to court documents and statements made in court, Kalici’s father, a Social Security benefits recipient, relocated from the U.S. to Macedonia in 2009, and died in January 2010. Kalici did not report his father’s death to the Social Security Administration and, between 2009 and 2018, deposited approximately $52,417.84 worth of Social Security checks intended for his father into his own personal bank account.
In November 2018, Kalici was interviewed by investigators with the Social Security Administration Office of Inspector General (“SSA OIG”). During the interview, Kalici stated that his father was still alive and had left the U.S. for Macedonia in May 2018. Kalici subsequently provided SSA OIG with a false funeral internment certificate that represented his father had died on November 26, 2018.
Judge Meyer scheduled sentencing for February 28, 2020, at which time Kalici faces a maximum term of imprisonment of 10 years.
Kalici is released on a $25,000 bond pending sentencing.
This matter is being investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.
Violent Member of Broadway Crips Gang Sentenced to 30 Years in Prison for Murder and Other Racketeering OffensesRead the Press Release
LOS ANGELES – A 27-year-old member of the Five Deuce Broadway Gangster Crips (BGC) who has been active in the gang for more than a decade was sentenced today to 30 years in federal prison after pleading guilty to racketeering and drug trafficking conspiracy charges and admitting that he participated in a murder.
Joshua Perez, aka "Tiny Ange," of Los Angeles, who pleaded guilty to the two felony offenses last year, was sentenced today by United States District Judge S. James Otero, who called the defendant "a very dangerous and callous individual" who acted as a "predator" on behalf of the gang.
Perez admitted he participated in a fatal shooting in 2012 when he and several other BGC members traveled into rival gang territory near the Hyde Park District of Los Angeles and fired a barrage of more than 40 bullets into a crowd of people walking into a rival gang’s party. William Sherman – who was not a member of that rival gang – was killed, and two others were injured in the attack motivated by a desire to retaliate against the rival gang for the recent murder of a BGC member. Perez was one of the shooters in the incident, and one of the guns used in the attack was recovered from his vehicle several months after the murder.
"Above all, it is defendant’s role in the conspiracy to murder victim W.S. that demonstrates defendant’s dangerousness and the nature and extent of his commitment to the violent lifestyle of the most hardened members of the Broadway Crips," prosecutors wrote in a sentencing memo.
As part of the racketeering conspiracy, Perez participated in a wide range of gang activity, including distributing crack cocaine, robbing people on the street, and engaging in violence against rivals and insubordinate BGC members. During Perez’s trial, former gang members testifying for the government outlined additional shootings, assaults, robberies, and gang discipline committed by Perez on behalf of the BGC.
Perez was one of 72 defendants named in a 2014 RICO indictment that described the criminal activities of the BGC, a street gang that claims territory in South Los Angeles and controls drug sales in an area just west of Skid Row in Downtown Los Angeles. The indictment outlined two decades of criminal conduct, including murders, robberies, extortion, illegal firearms possession, witness intimidation and narcotics trafficking.
The investigation into the BGC was called Operation "Gremlin Riderz" because authorities focused on a particularly violent "clique" – or subset of the gang – which gang members testified operated as the gang’s "hit squad." Perez was a member of the Gremlins who bore a large Gremlin tattooed across his chest.
All 72 defendants charged in the case have been convicted by guilty plea or at trial. Perez pled guilty on the fifth day of trial. Most of the defendants have been sentenced, receiving sentences of up to 35 years in federal prison.
The multi-year investigation into the BGC was conducted by agents and officers with the Federal Bureau of Investigation and the Los Angeles Police Department. Considerable assistance was provided during this investigation by the California Department of Corrections and Rehabilitation, the Torrance Police Department, the Buena Park Police Department, the El Segundo Police Department, the San Bernardino Police Department and the Los Angeles City Attorney’s Office.
This case is being prosecuted by Assistant United States Attorneys Mack E. Jenkins and Aron Ketchel of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Max B. Shiner and Wilson Park of the Violent and Organized Crime Section.
United States Files Suit Against Pharmacy, Pharmacy Owner, and Pharmacist-in-Charge for Alleged False BillingRead the Press Release
PHILADELPHIA, PA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced that the United States has filed a civil lawsuit against G & A Somerton Pharmacy LLC (“Somerton”), its owner Polina Khodak, and its pharmacist-in-charge, Inessa Lerner, alleging that they violated the False Claims Act when they knowingly billed Medicare for over $1 million worth of prescription drugs that were never actually dispensed to beneficiaries, during the period January 1, 2009 through December 31, 2015. These medications included but were not limited to Lidoderm, Advair Diskus, Omeprazole, Solaraze, Nexium, Donepezil, Novolog, Meclizine, Lidocaine, and Januvia.
The United States has also entered into a Stipulated Order and Consent Judgment with Somerton, Khodak, and Lerner, subject to the Court’s approval, which would resolve the matter without litigation. If approved by the Court, the Judgment will require the defendants to pay nearly $1.3 million. Significantly, it will also require Somerton and Khodak to agree to a 10-year healthcare exclusion, which will prohibit them from receiving payments from any federally funded health care insurer such as Medicare. And it will require Lerner to enter into an integrity agreement, requiring her to undertake substantial compliance obligations.
“Pharmacy fraud remains a priority for our Office,” said First Assistant U.S. Attorney Jennifer Arbittier Williams. “Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse. Our Office will continue to scrutinize and pursue such 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 taxpayers’ dollars are only spent on bona fide medical claims.”
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. For the U.S. Attorney’s Office, Assistant U.S. Attorney Deborah W. Frey, Civil Chief Gregory B. David, Auditor George Niedzwicki, and paralegal Patricia Bontempo, Certified Fraud Examiner, handled the matter.
The complaint contains allegations only; there has been no determination of liability
United States Attorney Announces Project Safe Neighborhoods Initiative: Partnering with the Faith-based Community to Address Violence and Encourage Community-Based Problem-SolvingRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today a partnership between the USVI Project Safe Neighborhoods Initiative and members of the faith-based community to encourage information-sharing and coordination as a means of combatting gun-related violence. The announcement follows meetings in St. Thomas and St. Croix today, where representatives of various churches and faith-based organizations, the St. Croix Long-Term Recovery Group, the Virgin Islands Police Department, and the U.S. Attorney’s Office discussed how best to address violence in the Territory.
"Today’s meetings represent a concerted effort by faith and community leaders in St. Thomas and St. Croix who are committed to working closely to break the cycle of violence," U.S. Attorney Shappert said. "Speakers at today’s meetings stressed the need to ‘break out of our silos’ and share valuable information about pressing needs and available resources." Building upon the success of a recent St. Croix Long-Term Recovery Group workshop in St. Croix, today’s discussions emphasized the importance of meeting the needs of students who lack afterschool learning and recreational opportunities; persons in correctional facilities who would benefit from education and mental health resources; and unemployed young people who require mentoring and vocational opportunities.
"What became apparent in today’s meetings, is that we all need to focus on identifying what resources are currently available in the Territory and what federal grants and other resources may be available to fill specific needs. One of the faith-based leaders emphasized the need for ‘wrap-around services,’ and that’s exactly what we will be looking for," Shappert said.
According to U.S. Attorney Shappert, "Project Safe Neighborhoods is the centerpiece of our crime reduction strategy. It is a tested and proven program to invest in our communities and foster vital partnerships. PSN enables the United States Attorney’s Office, together with our law enforcement partners, to target and prioritize criminal prosecutions on the most violent people in the most violent areas. Second, we engage with a wide variety of stakeholders—from federal and local law enforcement, to community groups, educators, faith-based organizations, and victims’ advocates—in order to identify the needs specific to our communities and to develop strategies to reduce crime."
Individuals wanting to know more about Project Safe Neighborhoods can check out Project Safe Neighborhoods. For those wishing to participate in the PSN initiative, please contact the U.S. Attorney’s Office, 340-774-5757.
Ulster County Man Pleads Guilty to Crack Cocaine and Fentanyl ConspiracyRead the Press Release
ALBANY, NEW YORK – Luis Curet, age 34, of Ellenville, New York, pled guilty today to his involvement in a drug trafficking organization that operated in Ulster County.
The announcement was made by United States Attorney Grant C. Jaquith; Angel M. Melendez, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); Ulster County District Attorney Holley Carnright; New York State Police Superintendent Keith M. Corlett; and Village of Ellenville Police Chief Philip Mattracion.
Curet admitted that between November and December 2018, he operated a stash house, and assisted in the distribution of crack cocaine and heroin laced with fentanyl to street dealers on behalf of the organization.
Curet faces at least 5 years and up to 40 years in prison, a term of supervised release of at least 4 years and up to life, and a maximum fine of $5 million. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors
The following defendants have also pled guilty in connection with the conspiracy, and face the following penalties:
Name
Age
Minimum
Maximum
Edwin Jorge
46
None
20 years
Randy Mandiville, aka “B-Murda”
30
None
20 years
The following defendants still face charges in this case, and face the following penalties:
Name
Age
Minimum
Maximum
Antonio Naveo, aka “Gratto,” aka “Green Eyes”
38
10 years
Life
Margaret Vandyke
56
10 years
Life
Iqwan Mandiville, aka “Qwan”
26
5 years
40 years
Jennifer McCombs, aka “Jennifer Marks”
49
5 years
40 years
Naveo is also charged with unlawful possession of a Mossberg shotgun as a previously convicted felon.
The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
U.S. Attorney's Office Presents "Fraud Bingo" Game to Help Teach Seniors How to Avoid ScamsRead the Press Release
Charleston, South Carolina – United States Attorney Sherri A. Lydon announced today that last week, the U.S. Attorney’s Office supported a Charleston Area Senior Citizens Elder Abuse Awareness event in Charleston. Assistant U.S. Attorneys Rob Sneed and Matt Austin gave a presentation to senior citizens using “Fraud Bingo” as a platform to provide tips on avoiding scams.
“Like senior citizens everywhere, South Carolina’s growing population of elderly residents is increasingly vulnerable to financial exploitation,” said U.S. Attorney Lydon. “As criminals get more innovative with their elder fraud schemes, we have to get more creative about how to thwart them. Fraud Bingo helps us teach seniors how to recognize scams that could have a devastating impact on their financial wellbeing and encourages them to report potential scams to the Department of Justice.”
Charleston Area Senior Citizens, Inc. (CASC) is a non-profit agency serving Charleston County that provides a wide range of programs, services, and activities that promote health, safety, socialization, and independence for adults age 60 and older in the community. This week, the Senior Companion Program (SCP), sponsored by CASC, held an Elder Abuse Awareness training for volunteers who provide individualized support and assistance to other adults with physical, mental, or emotional impairments, primarily the frail elderly. SCP is part of Senior Corps, which is under the umbrella of the Corporation for National and Community Service. SCP Program Director Berita Martin planned and executed the event.
AUSAs Sneed and Austin gave practical tips to help seniors prevent getting financially exploited. They operated a bingo-type game to teach seniors how to recognize and deal with scams. The game is played just like regular Bingo but with an added twist: Each time the Bingo game caller announces a square, participants read aloud the accompanying message found on their bingo card if they have a match. Each square has a message about fraud, identity theft, or scams. When there is a winner, shouts of “Fraud Bingo” ring out.
The U.S. Attorney’s Office was joined by several partners in its fight against elder fraud, abuse, and neglect. Dave Zoellner of Protection and Advocacy for People with Disabilities, Detective Jennie Antonio of the Charleston County Sheriff’s Department, and a representative from South Carolina Legal Services each provided information to help support and protect the elderly community in Charleston.
To learn more about the U.S. Attorney’s Office Elder Fraud program, visit https://www.justice.gov/usao-sc/elder-justice-initiative, or the Department of Justice’s Elder Justice Initiative website at https://www.justice.gov/elderjustice.
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Two Arrested for Smuggling $800,000 into St. Thomas Following Apprehension Near Savana IslandRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that complaints have been filed against two men for attempting to smuggle approximately $800,000 into St. Thomas by boat. Jose Ernesto Vazquez Colon and Abnel Belordo Colon were arrested Friday evening and made their initial appearances in federal court on Saturday in St. Thomas.
According to court documents, late Friday evening CBP Marine Unit agents noticed a boat traveling without navigational lights about three miles north of Savana Island. When CBP agents attempted to initiate a stop, the two individuals on the boat began throwing bags overboard. The bags were later found to contain roughly $800,000 in U.S. currency. After CBP agents disabled the boat’s motor, they boarded the vessel, apprehended the two defendants, and recovered multiple dumbbells with ropes attached. According to court documents, dumbbells tied to ropes are often used to ensure that contraband materials thrown overboard will sink to the bottom, enabling the contraband to be recovered later, using GPS.
This case is being investigated by the Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Nathan Brooks.
United States Attorney Shappert reminds the public that a complaint is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Sumter/Pee Dee Reentry Job Fair & Expo to Be Held September 26Read the Press Release
Florence, South Carolina – United States Attorney Sherri A. Lydon announced today that the United States Attorney’s Office; the South Carolina Department of Probation, Parole and Pardon Services; South Carolina Department of Employment and Workforce; SC Works; South Carolina Vocational Rehabilitation; South Carolina Department of Social Services; and the United States Probation Office are continuing their statewide partnership to help individuals with prior criminal backgrounds secure employment.
The Fourth Annual Pee Dee Reentry Job Fair & Expo will be held on Thursday, September 26, 2019, from 10:00 am to 1:00 pm at the Central Carolina Technical Advanced Manufacturing Technology Center, located at 853 Broad Street, Sumter, South Carolina 29150.
This fair, which targets the Pee Dee and eastern region of the State, is one in a series of fairs held annually, including in the Low Country, the Upstate, and the Midlands. The partner organizations believe that these tailored expos, for people with a criminal background, will provide some focused help for the particular obstacles individuals face after returning home, particularly in securing employment.
The first three Pee Dee Reentry Job Fairs were hosted in Florence and Myrtle Beach, where more than 600 job seekers attended over the three years, combined. The opportunity to host this year’s fair in Sumter will continue to expand the availability of resources to new employers and job seekers alike.
Professional dress is required. Job seekers should inquire with Marcos Barahona of the United States Probation Office at [email protected] or George Whitehead at (803) 734-9143, (803) 667-1258, or [email protected] if they have any questions about the event. Employers should contact Nicole Gardner at [email protected].
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Soldier at Fort Riley Charged with Distributing Instructions for BombsRead the Press Release
TOPEKA, KAN. B A soldier stationed at Fort Riley was charged in federal court here today with sending over social media instructions for making bombs, U.S. Attorney Stephen McAllister said.
Jarrett William Smith, 24, Fort Riley, Kan., was charged with one count of distributing information related to explosives and weapons of mass destruction.
Smith, a private first class infantry soldier, joined the Army June 12, 2017, and was transferred to Fort Riley, Kan., on July 8, 2019. According to an FBI investigator’s affidavit, Smith said on Facebook he was interested in traveling to the Ukraine to fight with a paramilitary group called the Azov Batallion.
During a Facebook chat, Smith offered to teach other Facebook users to make cell phone explosive devices “in the style of the Afghans.” On Aug. 19, 2019, Smith told an undercover investigator he was looking for “radicals” like himself. Smith talked about killing members of Antifa and destroying nearby cell towers or a local news station. On Aug. 21, Smith told an undercover investigator about how to make a vehicle bomb. When the investigator commented that most of the components were household items, Smith said: “Making AK47s out of expensive parts is cool, but imagine if you will if you were going to WalMart instead of a gun store to buy weapons.”
Smith also described in detail to the undercover investigator how to build a bomb that could be triggered by calling a cell phone.
“Be very careful with the fully armed device,” Smith warned the investigator.
If convicted, Smith could face up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Soldier at Fort Riley Charged with Distributing Instructions for BombsRead the Press Release
TOPEKA, KAN. - A soldier stationed at Fort Riley was charged in federal court here today with sending over social media instructions for making bombs, U.S. Attorney Stephen McAllister said.
Jarrett William Smith, 24, Fort Riley, Kan., was charged with one count of distributing information related to explosives and weapons of mass destruction.
Smith, a specialist first class infantry soldier, joined the Army June 12, 2017, and was transferred to Fort Riley, Kan., on July 8, 2019. According to an FBI investigator’s affidavit, Smith said on Facebook he was interested in traveling to the Ukraine to fight with a paramilitary group called the Azov Batallion.
During a Facebook chat, Smith offered to teach other Facebook users to make cell phone explosive devices “in the style of the Afghans.” On Aug. 19, 2019, Smith told an undercover investigator he was looking for “radicals” like himself. Smith talked about killing members of Antifa and destroying nearby cell towers or a local news station. On Aug. 21, Smith told an undercover investigator about how to make a vehicle bomb. When the investigator commented that most of the components were household items, Smith said: “Making AK47s out of expensive parts is cool, but imagine if you will if you were going to WalMart instead of a gun store to buy weapons.”
Smith also described in detail to the undercover investigator how to build a bomb that could be triggered by calling a cell phone.
“Be very careful with the fully armed device,” Smith warned the investigator.
If convicted, Smith could face up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Russian Hacker Pleads Guilty for Involvement in Massive Network Intrusions at U.S. Financial Institutions, Brokerage Firms, A Major News Publication, and Other CompaniesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ANDREI TYURIN, a/k/a “Andrei Tiurin,” pled guilty in Manhattan federal court to computer intrusion, wire fraud, bank fraud, and illegal online gambling offenses in connection with his involvement in a massive computer hacking campaign targeting U.S. financial institutions, brokerage firms, financial news publishers, and other American companies. These hacks included one of the largest thefts of customer data from a U.S. financial institution in history. TYURIN is charged with committing these crimes with Gery Shalon, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham”; Joshua Samuel Aaron, a/k/a “Mike Shields”; and Ziv Orenstein, a/k/a “Aviv Stein,” a/k/a “John Avery,” in furtherance of securities market manipulation, illegal online gambling, and payment processing fraud schemes perpetrated by Shalon, Aaron, Orenstein, and their co-conspirators. TYURIN pled guilty before U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Andrei Tyurin’s extensive hacking campaign targeted major financial institutions, brokerage firms, news agencies, and other companies. Ultimately, he gathered the customer data of more than 80 million victims, one of the largest thefts of U.S. customer data from a single financial institution in history. With today’s plea, Tyurin’s global reign of computer intrusion is over and he faces significant time in a U.S. prison for his crimes.”
According to the allegations contained in the Indictments to which TYURIN pled guilty, other filings in this case, and statements made during court proceedings, including TYURIN’s guilty plea hearing:
From approximately 2012 to mid-2015, TYURIN engaged in an extensive computer hacking campaign targeting financial institutions, brokerage firms, and financial news publishers in the U.S., including the theft of personal information of over 100 million customers of the victim companies. TYURIN’s hack of one financial institution headquartered in Manhattan resulted in the theft of personal information of over 80 million customers, making it one of the largest theft of customer data from a U.S. financial institution in history. TYURIN engaged in these crimes at the direction of Shalon and in furtherance of other criminal schemes overseen and operated by Shalon and his co-conspirators, including securities fraud schemes in the United States. For example, in an effort to artificially inflate the price of certain stocks publicly traded in the U.S., Shalon and his co-conspirators marketed the stocks in a deceptive and misleading manner to customers of the victim companies whose contact information TYURIN stole in the intrusions.
In addition to the U.S. financial sector hacks, TYURIN also conducted cyberattacks against numerous U.S. and foreign companies in furtherance of various criminal enterprises operated by Shalon and his co-conspirators, including unlawful internet gambling businesses and international payment processors. Nearly all of these illegal businesses, like the securities market manipulation schemes, exploited the fruits of TYURIN’s computer hacking campaigns. Through these various criminal schemes, TYURIN, Shalon, and their co-conspirators obtained hundreds of millions of dollars in illicit proceeds.
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TYURIN, 35, of Moscow, Russia, pled guilty to one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to violate the Unlawful Internet Gambling Enforcement Act, which carries a maximum sentence of five years in prison; and one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison. In addition, TYURIN pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 30 years in prison; and one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years prison, which was transferred from the Northern District of Georgia for purposes of his plea.
TYURIN is scheduled to be sentenced by Judge Swain on February 13, 2020.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by Judge Swain.
Mr. Berman praised the investigative work of the FBI and the U.S. Secret Service, and expressed his sincere gratitude to the Chief Prosecutor’s Office of Georgia and the Ministry of Justice of Georgia for their support and assistance with the extradition proceedings. He also thanked the Securities and Exchange Commission, Homeland Security Investigations, the Financial Industry Regulatory Authority, the Office of International Affairs of the U.S. Department of Justice for its assistance with the extradition, and the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information-sharing among the victim institutions.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi, Noah Solowiejczyk, and Sarah Lai are in charge of the prosecution.
Rockford Woman Sentenced to 34 Months in Prison for Transferring Firearms to FelonRead the Press Release
A Rockford woman was sentenced today in federal court before U.S. District Judge Philip G. Reinhard to 34 months in federal prison, to be followed by three years of supervised release, for selling and disposing of a firearm to a person she knew was a felon.
JASMINE C. TURNER, 26, pleaded guilty to the charge on June 12, 2019. According to a written plea agreement, Turner purchased a Glock .45-caliber pistol and a Diamondback 5.56-caliber pistol in May 2017 for her boyfriend at the time. Turner knew that her boyfriend previously had been convicted of second-degree murder, a felony. Turner admitted that she purchased the firearms at her boyfriend’s request and transferred the firearms to him shortly after purchasing them.
In addition, Turner admitted in the plea agreement that in April 2017 she made a false statement to a licensed firearms dealer in connection with the purchase of another firearm. Turner admitted that she falsely represented on a written form that she was the actual buyer of the firearm, when, in fact, Turner was buying the firearm for another individual. That individual was a friend-of-a-friend of Turner. Turner admitted that directly after the purchase, she gave the firearm to her friend to deliver to the other individual.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Dan O’Shea, Chief of the Rockford Police Department. The government is represented by Assistant U.S. Attorney Talia Bucci.
Queens Attorney Sentenced to 30 Months’ Imprisonment for Bribing a Witness in Double Homicide Trial on Long IslandRead the Press Release
John Scarpa, Jr., a criminal defense attorney, was sentenced today in federal court in Brooklyn to 30 months’ imprisonment and fined $10,000 by United States District Judge Carol Bagley Amon for bribing a witness to commit perjury in a double homicide trial in Suffolk County Supreme Court. Scarpa was convicted following a four-day trial in May 2019. Scarpa, who will be disbarred, had been practicing law in New York since 1982, and was a prosecutor at three district attorneys’ offices in the metropolitan area before entering private practice in 2003.
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 sentence.
“As a defense attorney and former prosecutor, Scarpa was sworn to uphold the law he so egregiously subverted,” stated United States Attorney Donoghue. “Scarpa went from practicing law to breaking the law and will now pay a price for his crime.” Mr. Donoghue thanked the Queens County District Attorney’s Office for its assistance during the investigation.
As proven at trial, Scarpa plotted with co-conspirator Charles Gallman to bribe a convicted murderer, Luis Cherry, to testify in support of Scarpa’s client, who was charged with the execution-style murders of two men. Cherry then falsely testified at trial that he alone committed the second of the two murders, and that Scarpa’s client was innocent. In exchange for his testimony, Scarpa and Gallman promised to help Cherry with the appeal of his own murder conviction, and to spread word in the prison system that Cherry was not a government informant. Despite the false testimony, the trial judge found Scarpa’s client guilty of both murders.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrey Spektor, Lindsay K. Gerdes and Keith D. Edelman are in charge of the prosecution.
The Defendant:
JOHN SCARPA, JR.
Age: 66
Hauppauge, New YorkE.D.N.Y. Docket No. 18-CR-123(S-1) (CBA)
Quality Control Officer of Connecticut Meat Supplier Admits Fabricating E. Coli Test ResultsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Administrator Carmen Rottenberg, U.S. Department of Agriculture’s Food Safety and Inspection Service, announced that DEBBIE L. SMITH, 60, of Ellington, waived her right to be indicted and pleaded guilty today in Hartford federal court to a charge related to a Connecticut meat processing business’s falsification of numerous E. coli test results.
According to court documents and statements made in court, New England Meat Packing, LLC, located in Stafford Springs, is a federally inspected business engaged in the slaughtering, processing, selling and transporting of meat and meat food products for human consumption. Pursuant to the U.S. Department of Agriculture’s (USDA) approved Hazard Analysis and Critical Control Point (HACCP) plan for New England Meat Packing, the company is required to perform one generic E. coli carcass swab for every 300 animals slaughtered and to periodically collect ground beef samples for E. coli testing.
Memet Bequiri is the owner and general manager of New England Meat Packing, and Smith is/was the HACCP Coordinator/Quality Control Officer for the company. Between November 3, 2016 and September 9, 2017, Smith prepared and submitted in the company’s Lab Sample Report binder, which the USDA’s Food Safety Inspection Service (FSIS) reviews, a total of 36 documents relating to 52 separate carcass swabs and ground beef samples on behalf of New England Meat Packing. The 36 documents were each on the letterhead of a certified laboratory that tests food product samples to ensure safety and wholesomeness and signed by the laboratory director. The documents stated that the required E. coli testing of samples submitted by New England Meat Packing had been conducted and completed, and that all 52 samples tested negative for E. coli. In fact, none of the 52 carcass swabs and samples had been submitted or tested by the identified laboratory, or any other laboratory, and the 36 documents were fraudulently prepared using laboratory letterhead obtained from previous testing that New England Meat Packing had conducted with that laboratory.
The investigation revealed that Beqiri authorized the preparation and submission of the fabricated E. coli test results. During an interview with a USDA’s FSIS investigator, Beqiri admitted that the documents were fraudulent, and that his business did not collect and submit the samples to the certified laboratory because he did not correlate the potential impact on food safety with his sampling program and wanted to create the appearance he was compliant with all USDA HACCP testing requirements.
There have been no known instances of illnesses reported by anyone who consumed the meat in any of the states where the meat was distributed.
Smith pleaded guilty to one count of making and using a false document, a charge that carries a maximum term of imprisonment of five years.
Smith is released on bond pending sentencing, which is scheduled for December 10, 2019.
On August 20, 2019, Beqiri pleaded guilty to one count of making and using a false document and aiding and abetting. He awaits sentencing.
The investigation was conducted by the U.S. Department of Agriculture, Food Safety and Inspection Service, Office of Investigations, Enforcement and Audit. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Philadelphia Woman Sentenced to Twenty Years’ Incarceration for Sex Trafficking of MinorsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Shyniquah Lightner, 27, of Philadelphia, Pennsylvania, was sentenced today to twenty years’ incarceration and fifteen years’ supervised release by United States District Judge C. Darnell Jones II for her role in a scheme to sex traffic minor children.
In 2016 and 2017, Lightner recruited two children, ages 14 and 15, to engage in commercial sex acts at a house in Philadelphia. She advertised the children on the website Backpage.com, and she collected money from the sex buyers who came to the residence for sexual encounters with the minors. Her co-defendant, Malik Hudson, participated in the trafficking of the 15-year-old.
“Lightner’s crimes were devastating to her minor victims,” said First Assistant U.S. Attorney Williams. “Today’s sentence of twenty years’ incarceration reflects the seriousness of her crimes and the irrevocable damage she caused, all in pursuit of financial gain. We will continue to work collectively to investigate these destructive crimes against vulnerable children.”
“Today’s sentencing is a significant step in holding Ms. Lightner accountable for trafficking children,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “Traffickers prey on the vulnerabilities of their victims, repeatedly exploiting them for their own personal gain. We will continue working with our partners at the Philadelphia Human Trafficking Task Force to hold these criminals accountable for their deplorable actions.”
The case was investigated by the Department of Homeland Security - Homeland Security Investigations, with assistance from the Philadelphia Police Department Special Victims Unit, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Philadelphia Man Convicted at Trial of Gun, Drug OffensesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Salim Davis, 34, of Philadelphia, PA was convicted at trial of one count of being a felon in possession of a firearm, one count of possession of a firearm in connection with a drug trafficking offense, one count of possession with intent to distribute a controlled substance, and one count of aiding and abetting the making of a false statement to a federal firearms licensee.
At trial, the government presented evidence that, on December 29, 2017, at approximately 3:25 p.m., an off-duty Philadelphia Police Inspector was driving his unmarked police car in the area of 2500 Island Avenue when he heard gunshots. Minutes later, he observed defendant Salim Davis and another man carrying firearms while walking in an alleyway near the Inspector’s car. The Inspector commanded that they stop and put their hands up, but Davis fled and discarded his jacket. Police eventually caught up with Davis, placed him in custody, and recovered from him money, a bottle containing 72 Alprazolam pills, and several loose pills in Davis’s pocket. In addition, upon picking up Salim’s discarded jacket, officers recovered a Smith & Wesson, .40 caliber, semi-automatic handgun loaded with 10 live rounds. Police later determined that the weapon they recovered was purchased by a third party on Davis' behalf at Double Action, a federal firearm licensee, in Yeadon, PA.
“This guilty verdict is another important step towards protecting our communities from drug and gun offenders who bring violence to our communities,” said First Assistant U.S. Attorney Williams. “The United States Attorney’s Office, with our law enforcement partners, will aggressively investigate, prosecute, and hold these offenders accountable. We deeply appreciate the cooperation of all of our federal, state, and local partners in defending our communities and bringing Davis to justice.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by ATF and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Kate Driscoll.
North Highlands Man Sentenced to 20 Years in Prison for Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Today, U.S. District Judge William B. Shubb sentenced William Lamar Blessett, 40, of North Highlands, to 20 years in prison for possession of child pornography, U.S. Attorney McGregor W. Scott announced. The 20-year sentence includes 18 years for Blessett’s December 5, 2018, jury trial conviction, and an additional 2 years for violating his terms of supervised release. Particularly, while on federal supervised release for a 2008 child pornography conviction, Blessett was caught and convicted again in this case for possessing child pornography.
According to evidence presented during a two-day trial in December 2018, between mid-2016 and October 2017, Blessett possessed over 2,000 electronic images and videos of child pornography in a Dropbox cloud storage account and on at least five electronic devices, including a laptop computer, two smartphones, and two tablet computers. Blessett possessed these images knowing that at least some of them showed minors engaged in sexually explicit conduct. Blessett accessed the pornographic images on the internet, at least in part by using links he obtained on an instant messenger application called Kik. Blessett viewed the images and downloaded them to a Dropbox account that he owned and operated. Blessett then used the account to organize and view the images and transfer them to his electronic devices.
During sentencing, Judge Shubb also relied on additional evidence showing that Blessett was using the internet to contact and communicate with minors. This evidenced showed that Blessett engaged in online communications with several minors and encouraged them to exchange sexually suggestive messages.
This case was the product of an investigation by the Sacramento County Sheriff’s Department, Central Investigative Division, Hi-Tech Crimes Bureau; the Sacramento Valley Internet Crimes Against Children Task Force; and the Federal Bureau of Investigation. Assistant U.S. Attorneys Grant Rabenn and Amy Hitchcock, and Special Assistant U.S. Attorney Robert Artuz prosecuted the case.
North Carolina Woman Who Embezzled More Than $130K from Connecticut Company Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SUSANNA KURUS, 44, of Garner, North Carolina, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 days of imprisonment, followed by 60 days of home confinement, for embezzling more than $130,000 from her former Connecticut employer. Kurus also must serve two years of supervised release, during which she is required to perform 100 hours of community service.
According to court documents and statements made in court, Kurus formerly resided in Connecticut and was employed as the accounting manager for a company based in Stratford. Between approximately October 2014 and June 2017, Kurus used the company’s financial accounting software to transfer customer credits to at least six personal debit card accounts, and then used the money for personal expenditures. Through this scheme, she stole $133,870.55.
Judge Shea ordered Kurus to make full restitution.
On March 13, 2019, Kurus pleaded guilty to one count of wire fraud.
Kurus, who is released on $200,000 bond, is required to report to prison on January 6, 2020.
This matter was investigated by the Connecticut Financial Crimes Task Force, U.S. Secret Service and Stratford Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Nebraska Man Charged with Aggravated Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Chadron, Nebraska, man has been indicted by a federal grand jury for four counts of Aggravated Sexual Abuse of a Minor.
William Bear Robe, age 36, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction for each charge is a mandatory minimum of 30 years up to life in prison, a mandatory minimum term of 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Bear Robe engaging in sexual acts with a female child, who had not reached the age of 12 years, between April and October of 2012, at Oglala, South Dakota.
The charges are merely accusations and Bear Robe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Bear Robe was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 19, 2019.
Muskegon Child Sex Trafficker Sentenced to 40 Years in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN - Richardo Leodoro Urbina, 58, of Muskegon, Michigan was sentenced to serve 480 months in the Federal Bureau of Prisons for sex trafficking three minors; attempting to sex traffic three more minors; conspiring to sex traffic minors; sex trafficking an adult by force, fraud, or coercion; distributing cocaine and cocaine base; and conspiring to distribute cocaine and cocaine base. U.S. District Judge Janet T. Neff also imposed a lifetime period of supervised release and $40,000 in fines.
In sentencing Urbina, Judge Neff stated that it is "difficult to find offenses more serious than these" and that this case "is among the most serious the Court has ever seen." Judge Neff also noted the "depravity of the methods Urbina used to recruit young girls and control them to make money for himself."
On May 14, 2019, Urbina was found guilty after a six-day jury trial. Over the course of trial, the jury heard from 10 girls about Urbina’s sexual exploitation of them while they were minors. The jury learned that in May of 2015, Urbina—then 54—recruited and pimped high-school aged girls. He located his victims by befriending high schoolers, who identified the most vulnerable girls they knew. Urbina targeted runaways who needed money and a place to stay. He gave them alcohol and cocaine to make it more likely they would agree to "dance" or give "massages" to men Urbina arranged for them to meet. The girls only learned the men expected them to have sex after they were alone with the johns. Urbina kept half the money the johns paid.
The jury also heard from one woman who Urbina sex trafficked after learning she needed a place to stay. He originally offered to help her by letting her live with him. The first night she stayed with Urbina, he forced her to have sex with a john for money. She lived with Urbina for about six months. He kept all of the money johns paid her and gave her narcotics instead. When she tried to leave, Urbina said she owed him $1,000 and had to pay it in order to be released. She had no money to pay and eventually escaped with the help of a john.
Urbina has an extensive criminal history, including three felony assault convictions, three larceny convictions, two felony drug convictions, a witness intimidation conviction, and a perjury conviction.
In announcing the sentence, U.S. Attorney Birge stated, "Urbina targeted the most vulnerable victims he could find—girls, many one-third his age, who thought they had nowhere else to turn. The 40-year sentence he received today should serve as a warning to others looking to engage in sex trafficking of minors in West Michigan."
"The perpetrator in this case used physical violence, fear, and coercion to further the sexual exploitation of his victims," stated Steven M. D’Antuono, Special Agent in Charge of the FBI Detroit Field Office. "Our investigation in this case through the West Michigan Based Child Exploitation and Human Trafficking Task Force, in conjunction with our local and state partners demonstrates that combating sex trafficking and violence in our communities is of the highest priority for the FBI."
The West Michigan Based Child Exploitation Task Force (WEBCHEX) investigated Urbina. The investigation included members of the FBI, Michigan State Police, Kent County Sheriff’s Office, and Ottawa County Sheriff’s Office. The case was tried by Assistant U.S. Attorneys Alexis M. Sanford and Davin M. Reust.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
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Monongahela Man Pleads Guilty to Possessing Sexual Images and Videos of ChildrenRead the Press Release
PITTSBURGH, PA - A resident of Monongahela, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Eric Allard, age 48, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that, on November 27, 2017, Allard possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Ambrose scheduled sentencing for March 17, 2020 at 10 a.m. The law provides for a maximum sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
Homeland Security Investigations, with the assistance of the Monongahela Police Department, conducted the investigation that led to the prosecution of Allard.
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 the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mineral County man sentenced to 14 years for role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Corey Alt, of Elk Garden, West Virginia, was sentenced to 168 months incarceration for his involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Alt, age 34, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in March 2019. Alt admitted to working with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Milwaukee Financial Advisor Sentenced to 30 Months in Federal Prison for Fraud Scheme that Targeted Elderly VictimsRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on September 19, 2019, the Honorable Pamela Pepper, United States District Court Judge for the Eastern District of Wisconsin, sentenced Chris Kubiak, 60, of Milwaukee, to 30 months in prison following his conviction for a fraud scheme that targeted elderly victims. The prison sentence will be followed by three years of supervised release. Kubiak also will be required to make restitution in the amount of $379,977 to the six victims named in the indictment.
Kubiak had earlier pleaded guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343. As admitted in his plea agreement, Kubiak worked as a financial advisor through Freedom Investors Corp, and Calton & Associates, Inc. In that role, Kubiak arranged to have funds withdrawn from several elderly clients’ investment accounts and mailed to their homes or wired to their bank accounts. Kubiak falsely told the clients that the funds were bonuses or dividends that he would reinvest for them. He solicited personal checks from the clients, but rather than reinvesting the money as promised, Kubiak deposited the funds into his own checking account and used the money for gambling and other personal expenses. The scheme spanned a period of five years and was ultimately discovered by a victim’s relative, who reported Kubiak to authorities.
Speaking for one of the victims, a relative described the debilitating emotional and mental distress suffered by her loved one who had long known and trusted Kubiak to grow her small nest egg. In sentencing Kubiak, the Court emphasized the need for punishment and deterrence, both for Kubiak and for others who might be similarly tempted to prey upon the elderly.
“The victims in this case entrusted Kubiak with savings they had earned through honest, hard work over their lifetimes,” said U.S. Attorney Krueger. “Kubiak exploited that trust and now faces years in federal prison. Let this case be a warning to anyone who would prey on elderly members of our community.”
The charges against Kubiak were announced as part of the U.S. Department of Justice’s largest-ever nationwide elder fraud sweep on March 7, 2019. The case was investigated by detectives from the Waukesha County Sheriff Department and the Franklin Police Department and Special Agents from the United States Secret Service Financial Crimes Task Force. The case was prosecuted by Assistant United States Attorney Carol L. Kraft.
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Michael Mann Charged with Bank FraudRead the Press Release
ALBANY, NEW YORK – Michael T. Mann, age 49, of Saratoga County, New York, appeared in federal court today on a criminal complaint charging him with committing a $70 million bank fraud.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the complaint (copy attached), Mann fraudulently obtained at least $70 million in loans from banks and other financial institutions. He created companies that had no purpose other than to be used in the fraud; fraudulently represented to banks and financing companies that his fake businesses had certain receivables that they did not have; and obtained loans and lines of credit by borrowing against these non-existent receivables. Mann began the fraudulent scheme in 2010 or 2011.
Mann operates MyPayrollHr, based in Clifton Park, New York.
Until this month, MyPayrollHR processed payroll and tax payments for approximately 1,000 small-business clients located across the country.
On September 5, 2019, MyPayrollHR suddenly ceased operations after Mann’s banks froze his accounts, suspecting him of fraud. This account freeze affected MyPayrollHR’s clients because, as part of the fraudulent scheme, Mann diverted clients’ payroll payments to a bank account he controlled.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Mann appeared today before United States Magistrate Judge Daniel J. Stewart. Mann was released on a financial bond and with pretrial supervision conditions.
If convicted of the charge set forth in the complaint, Mann faces up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI, with assistance from the New York State Attorney General’s Office, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.
The FBI continues to seek information from people and businesses who may have suffered financial loss due to the alleged activities of Mann, MyPayroll, and affiliated companies. Information can be sent to the FBI by filling out a form on the FBI’s web site, available at https://forms.fbi.gov/seeking-victim-information-in-mypayrollhr-investigation.
Merrimack Valley Operation Results in Arrest of 40 IndividualsRead the Press Release
BOSTON – Forty people have been charged with federal drug offenses, and at least a dozen more individuals face state charges, as part of a 10-week coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.”
The 10-week enforcement operation, which took place during the summer months, was a coordinated effort by federal, state, and local partners to focus on drug distribution activity in the City of Lawrence and between Lawrence and destinations in New Hampshire. The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges. In total, Operation Devil’s Highway resulted in the seizure of more than 14 kilograms of fentanyl, five kilograms of heroin, 29 kilograms of cocaine, four firearms, and body armor.
“Operation Devil’s Highway was tremendously successful in targeting street-level drug trafficking in Lawrence, which is a hub of illegal drug distribution for all of New England,” said United States Attorney Andrew E. Lelling. “This kind of operation can only succeed with the full commitment of federal, state and local law enforcement agencies, coupled with realistic planning to target the most prolific drug distributors. This will not be the last time we target drug dealers in Lawrence or their customers from points north.”
“Operation Devil’s Highway should serve as a warning to others thinking of filling the void created by these arrests—we aren’t finished. Everyone arrested this summer allegedly exploited Lawrence as their drug-trafficking hub, bringing perilous opioids like fentanyl and heroin - in addition to cocaine and marijuana - to neighborhoods across New England,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “That’s why the FBI and our law enforcement partners will not relent in putting those distributors profiting from addiction and lawlessness out of business, so that the hometowns they harm might heal.”
“DEA’s top priority is combating the opioid epidemic by bringing to justice anyone who distributes deadly drugs,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities. These enforcement actions with our federal, state and local partners show what happens when law enforcement works together.”
“The scourge of addiction continues to be fueled by Transnational Criminal Organizations who flood the streets of our commonwealth with poison. Motivated only by profit, we know all too well, that tackling this complex threat involves a united, comprehensive strategy and an aggressive approach by multiple entities across all levels of government,” said Jason J. Molina, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Boston. “The results of this operation should send a clear message that HSI Special Agents remain committed to combating the opioid crisis by pursuing traffickers at every level of the supply chain.”
The majority of criminal charges resulted from weekly “sweeps” in the City of Lawrence that targeted individuals distributing opioids. The enforcement actions brought together 40-60 federal, state, and local officers from Massachusetts and New Hampshire each week to conduct surveillance, investigate and arrest defendants.
During the operation, the following defendants were arrested on federal charges:
- Jason Medlen, 32, of Lisbon Falls, Maine, charged with conspiracy to possess with intent to distribute 40 grams or more of fentanyl and possession with intent to distribute 40 grams or more of fentanyl;
- Louis Delvecchio, 51, of Brunswick, Maine, charged with conspiracy to possess with intent to distribute 40 grams or more of fentanyl and possession with intent to distribute 40 grams or more of fentanyl;
- Santos Obispo Guerrero Lara, 35, of Lawrence, charged with possession with intent to distribute fentanyl;
- Douglas “Sunny” Grasso, 34, of Georgetown, charged with conspiracy to distribute fentanyl and possession with intent to distribute 40 grams or more of fentanyl;
- Brian Brea, 35, of Lawrence, charged with conspiracy to distribute fentanyl and possession with intent to distribute 40 grams or more of fentanyl;
- Enel Alfredo Mendez Aquino, 29, of Lawrence, charged with distribution of fentanyl and cocaine;
- Jorge Alexander Andujar Romero, 29, of Lawrence, charged with distribution of and possession with intent to distribute fentanyl;
- Edward Jesis Mar Carmona Ortiz, 42, of Lawrence, charged with possession with intent to distribute fentanyl;
- Steven de Jesus de Leon Trinidad, 22, of Lawrence, charged with distribution and possession with intent to distribute a heroin/fentanyl mix;
- Luis Felix Franco Herrera, 21, of Lawrence, charged with distribution of and possession with intent to distribute fentanyl;
- Jose Rodriquez-Walker, 32, of Lawrence, charged with possession with intent to distribute fentanyl, cocaine, and cocaine base;
- Johanny Mejia-Nunez, 43, of Philadelphia, Penn., charged with possession with intent to distribute 400 grams or more of fentanyl;
- Ronyel Pena, 18, of Lawrence, charged with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl;
- Jose Martinez, 24, of Lawrence, charged with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl, and being a felon in possession of firearms and ammunition;
- Ysrael Nunez, 37, of Lawrence, charged with conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl; distribution of and possession with intent to distribute fentanyl; distribution of and possession with intent to distribute 400 grams or more of fentanyl; and aiding and abetting;
- William Cabrera, 30, of Lawrence, charged with distribution of and possession with intent to distribute heroin; and possession with intent to distribute heroin and oxycodone;
- Oscar Guadalupe Martinez, 37, of North Andover, charged with conspiracy with intent to distribute and distribution of 1 kilogram or more of heroin;
- Stiven Torres Martinez, 21, of North Andover, charged with conspiracy with intent to distribute and distribution of 1 kilogram or more of heroin;
- Jason Jimenez, 24, of Bronx, N.Y., charged with possession with intent to distribute over 40 grams of fentanyl;
- Milton Elias Lara, 42, of Lawrence, charged with distribution of and possession with intent to distribute 40 grams or more of fentanyl;
- Alexsander Padro, 28, of Methuen, charged with possession with intent to distribute and distribution of heroin and 40 grams or more of fentanyl;
- John Mena, 24, of Lawrence, charged with possession with intent to distribute and distribution of 10 grams or more of fentanyl;
- Yunior Darismir Prandys Torres, 22, of Lawrence, charged with conspiracy to possess with intent to distribute and to distribute a controlled substance, to wit, fentanyl;
- Juan Perez Diaz, 22, of Lawrence, charged with conspiracy to possess with intent to distribute and to distribute a controlled substance, to wit, fentanyl;
- Jose Ventura, 37, of Lawrence, charged with distribution of and possession with intent to distribute 10 grams or more of fentanyl;
- Leisy Baez-Zapata, 21, of Lawrence, charged with conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl; distribution of and possession with intent to distribute 400 grams or more of fentanyl; and aiding and abetting;
- Erick Alberto Paulino Amador, 28, of Lawrence, charged with possession with intent to distribute and distribution of fentanyl;
- Bernardito Carvajal, 28, of Haverhill, charged with possession with intent to distribute fentanyl;
- Alfredo Rivera, 31, of Haverhill, charged with possession with intent to distribute fentanyl;
- Julio Esthil-Cifre, 30, of Lawrence, charged with possession with intent to distribute fentanyl;
- Edgar Castro, 45, of Revere, charged with conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of cocaine;
- Julio Ortiz 47, of Boston, charged with conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of cocaine;
- Crishanty Aybar Arias, 22, of Lawrence, charged with possession with intent to distribute fentanyl;
- Cesar Lara Castillo, 36, of Lawrence, charged with possession with intent to distribute a Schedule I controlled substance; false representation of social security number, and aggravated identity theft;
- Santiago Rubel Guerrero Tejeda, 22, of Lawrence, charged with possession with intent to distribute and distribution of fentanyl;
- Jesus Maria Aybar Franco, 34, of Lawrence, charged with distribution and possession with intent to distribute fentanyl;
- Marino Amador Baez, 34, of Lawrence, charged with possession with intent to distribute fentanyl;
- Willin Arias-Castillo, 35, of Lawrence, charged with possession with intent to distribute fentanyl.
- Julio Cruz, 21, of Lawrence, charged with possession with intent to distribute and distribution of fentanyl;
- Jonathan Marquez, 32, of Lawrence, charged with distribution of fentanyl.
The federal charge of drug distribution provides for a sentence of up to 20 years in prison, at least three years of supervised release and a $1 million fine. The charge of distribution of 40 grams or more of fentanyl provides for a minimum of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a $5 million fine. Charges of distribution of 400 grams or more of fentanyl and distribution of five kilograms or more of cocaine each provide for a minimum of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a $10 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, FBI Boston SAC Bonavolonta, DEA Boston SAC Boyle and HSI Boston Acting SAC Molina made the announcement today. Valuable assistance was provided by the Massachusetts State Police and New Hampshire State Police; the Lawrence Police Department; the Andover, Billerica, Boston, Braintree, Chelsea, Concord, Dartmouth, Dover (N.H.), Franklin, Haverhill, Lowell, Manchester (N.H.), Methuen, Milton, Nashua (N.H.), North Andover, Peabody, Portsmouth (N.H.), Reading, Waltham, Watertown, and Woburn Police Departments; Massachusetts Department of Corrections; New Hampshire Department of Corrections; and Essex, Norfolk and Suffolk County Sheriff’s Departments.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Manderson Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Manderson, South Dakota, man has been indicted by a federal grand jury for Assaulting a Federal Officer.
Jacob Harvey, age 21, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 8 years in prison, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Harvey kicking an officer in the hand, ribs, and knee on August 2, 2019, near Pine Ridge.
The charge is merely an accusation and Harvey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Harvey was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 19, 2019.
Man Pleads Guilty to Straw Purchasing Five FirearmsRead the Press Release
ALEXANDRIA, Va. – A Maryland man pleaded guilty today to aiding and abetting the straw purchase of multiple firearms.
According to court documents, between July and September 2018, Lawrence Paul Chambers, 21, of Silver Spring, aided and abetted the straw purchase of five firearms from federal firearm licensees in the Eastern District of Virginia by providing a woman he was dating money and counsel to illegally purchase firearms on his behalf. Police in Washington, D.C. recovered one of the illegally purchased firearms from a co-conspirator, 11 days after it was straw purchased.
Chambers pleaded guilty to making false statements with respect to the purchase of firearms and faces a maximum penalty of five years in prison when sentenced on Jan. 24, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Annie Zanobini are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-285.
Maine Man Charged with Attempted Sex Offenses Against a MinorRead the Press Release
ALBANY, NEW YORK – Jay Scott Cloutier, age 56, of Lyman, Maine, was charged today with attempting to entice and coerce a minor into committing criminal sex acts and traveling in interstate commerce for the purpose of meeting a minor for sex.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a criminal complaint, Cloutier used a social networking and online dating application, text messages and phone calls to attempt to entice and coerce an individual whom he believed to be a 14- or 15-year-old boy to engage in various sexual acts with him, and he traveled from Maine to Colonie, New York, with the motivating purpose of engaging in such sexual acts with the boy. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Cloutier appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, and was detained pending further proceedings.
If convicted, Cloutier faces a mandatory minimum of 10 years and up to life in prison on the enticement charge and up to 30 years in prison on the traveler charge, a fine of up to $250,000, per charge, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Madison Township Man Sentenced to Home Confinement for Stealing from Tobyhanna Army DepotRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Timothy Scheitlan, age 43, of Madison Township, Pennsylvania, was sentenced on September 20, 2019, to six months home confinement, by United States District Court Judge A. Richard Caputo for stealing money from Tobyhanna Army Deport. Judge Caputo also ordered Scheitlan to pay restitution in the amount of $95,000.
According to United States Attorney David J. Freed, Scheitlan previously pleaded guilty to stealing over $95,000 from Tobyhanna Army Depot between 2014 and 2017, and admitted that during the course of his employment, he removed money from vending machines for his own personal use. The money that Scheitlan stole from the vending machines is used to provide recreational facilities to military personnel.
The case was investigated by the U.S. Army Criminal Investigation Division. Assistant United States Attorney Jenny P. Roberts prosecuted the case.
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Lower Brule Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 10, 2019, by U.S. District Judge Roberto A. Lange.
Teresa Jandreau, age 40, was sentenced to 64 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jandreau was indicted by a federal grand jury on September 11, 2018. She pled guilty on May 28, 2019.
Beginning at a time unknown, but no later than December 1, 2015, through September 11, 2018, Jandreau knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota, in and around the Crow Creek and Lower Brule Sioux Indian Reservations. The conspiracy involved over 500 grams of methamphetamine that was supplied by Frank “Tank” Adams from St. Paul, Minnesota. Adams was recently found guilty of Conspiracy to Distribute Methamphetamine following a jury trial.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Indian Affairs Crow Creek and Lower Brule Agencies and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Jandreau was immediately turned over to the custody of the U.S. Marshals Service.
Lawrence Man Sentenced to 60 Months for Distributing FentanylRead the Press Release
CONCORD - Anthony Cabrera, 27, of Lawrence, was sentenced to 60 months for distribution of fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on March 12, 2019, the defendant traveled from Massachusetts to New Hampshire and sold approximately 49 grams of fentanyl to an undercover officer in Salem, New Hampshire.
Cabrera previously pleaded guilty on June 6, 2019.
“Interstate fentanyl trafficking threatens the health and safety of people throughout New Hampshire,” said U.S. Attorney Murray. “This conduct clearly merits the imposition of substantial prison sentences. We will continue to work closely with our law enforcement partners to investigate, prosecute, and incarcerate those who are responsible for distributing this deadly drug.”
“The state of New Hampshire is faced with a fentanyl crisis unlike ever before,” said DEA Special Agent in Charge Brian D. Boyle. “Those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA will aggressively pursue Drug Trafficking Organizations and individuals who are coming from out of state to distribute this poison in order to profit and destroy people’s lives.”
This matter was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Las Vegas Businessman Sentenced to Three Years in Prison for Role in $28 Million Tax Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas businessman who pleaded guilty to committing a $28 million tax fraud conspiracy was sentenced today to three years in federal prison, announced United States Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
Ramon Desage, 69, was charged by a second superseding indictment on February 11, 2014. On August 31, 2018, Desage pleaded guilty to one count of conspiracy to defraud the United States as charged in the second superseding indictment.
Today, in addition to the prison term, United States District Judge Jennifer A. Dorsey ordered Desage to pay $28,221,767 in restitution to the IRS and sentenced him to three years of supervised release upon his release from prison.
Desage admitted as part of his plea that, from about January 1, 2006, through about October 20, 2010, he conspired with his bookkeeper, co-defendant Gary Parkinson, and tax preparer, co-defendant Peter Akaragian, to cause fraudulent federal income tax returns to be filed for himself and his entities for tax years 2006, 2007, 2008, and 2009. According to court documents, Desage omitted tens of millions of dollars in income from his returns and created false business deductions to further avoid paying his income taxes. The false deductions that Desage and his co-conspirators claimed in the returns reclassified personal expenses as business expenses. Thus, they claimed fraudulent deductions for luxury car purchases, houses, jewelry, repayment of millions in gambling debts, private plane air travel, home improvements, and lavish gifts for Desage’s girlfriends and acquaintances. Desage’s outstanding tax due was approximately $28.2 million for tax years 2006 through 2009.
Akaragian pleaded guilty and was sentenced in October 2018, and Parkinson is scheduled to begin a jury trial in January 2020. The charges against Parkinson merely are allegations and he is presumed innocent unless and until proven guilty.
The case was investigated by IRS-Criminal Investigation. Assistant United States Attorney Patrick Burns prosecuted the case.
Knox County Man Pleads Guilty to Illegally Distributing Prescription PillsRead the Press Release
LONDON, Ky.- A Flat Lick, Kentucky man, Jerry “Rabbit” Cox, 70, admitted to drug trafficking in federal court on Monday.
Cox pled guilty to distributing a quantity of pills containing oxycodone and hydrocodone, before U.S. Magistrate Judge Hanly A. Ingram. Cox admitted to selling oxycodone 30 mg pills to an informant on April 17, 2018, from his residence in Knox County, and hydrocodone pills from his business in Knox County on April 26, 2018.
Cox was indicted in June 2019.
Robert M. Duncan Jr., U.S. Attorney for the Eastern District of Kentucky, Daniel Dodds, acting Special Agent in Charge, DEA Louisville Field Division, and Commissioner Richard W. Sanders, Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by the Drug Enforcement Administration and the Kentucky State Police. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jason D. Parman.
A sentencing date has not yet been set. He faces up to 20 years in prison and a maximum fine of $1 million. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Inmate Sentenced to 20 Years for Distributing Drugs and Cell Phones in State Prison by Bribing an OfficerRead the Press Release
NEWS RELEASE SUMMARY – September 23, 2019
SAN DIEGO – Martin Gomez of California was sentenced in federal court today to 240 months in prison for leading a conspiracy to smuggle methamphetamine, heroin, marijuana, and cell phones through a Corrections Officer into a state prison.
Gomez had previously pleaded guilty to Conspiracy to Distribute Methamphetamine pursuant to a plea agreement, after being indicted with 10 other co-conspirators.
One co-defendant, Juan Gutierrez, charged in the conspiracy remains awaiting trial, which is scheduled for January 21, 2020. The trial was continued from May 2019 after Gutierrez struck his own attorney in open court during a status hearing just prior to his trial.
From his cell in a California state prison in Los Angeles, Gomez organized and directed a group of at least 11 other participants to smuggle contraband into a different state prison, Richard J. Donovan (“RJD”), in San Diego. Gomez arranged for individuals outside of prison to deliver the drugs and cell phones to a Corrections Officer, Anibal Navarro. He then instructed Navarro to collect the contraband and money, and deliver the contraband to certain inmates inside the prison. Gomez directed those inmates to retrieve the contraband and deliver it to other inmates within RJD.
Gomez approached Navarro while an inmate at RJD, offering him an avenue to make extra money Gomez knew Navarro needed. Navarro was paid between $1,000 and $2,000 each time he smuggled the contraband into the prison. Even after Gomez was transferred out of RJD to another prison, Gomez led the conspiracy for over two years. Over 500 grams of methamphetamine, heroin, cell phones, and other contraband were smuggled into RJD at Gomez’s direction while he was incarcerated elsewhere.
Gomez was able to continue coordinating and supervising the operation by conducting conference calls with Sylvia Gonzales, Gomez’s associate outside the prison, Navarro, and others. During these calls, the conspirators arranged for narcotics, cellular telephones and cash to be delivered to Navarro at various locations in Southern California.
In addition to Gonzales, the smuggling operation was also aided by others outside the prison, including Everaldo Santana, Norma Alvarado-Medina and Vanessa Jackson. These individuals provided Navarro with the narcotics and cellular telephones to smuggle into the prison.
After the contraband was smuggled into the prison, RJD inmates Agustin Aceves, Juan Gutierrez, John Price, Jeremy Gaither and Hugo Alvarado received and distributed the narcotics and cellular telephones to other inmates. The phones were used to coordinate criminal activity both inside and outside the facility.
“This defendant personally profited from a corrupt drug smuggling scheme that significantly interfered with the rehabilitation of his fellow inmates,” said U.S. Attorney Robert S. Brewer, Jr. “He also created a dangerous prison environment by providing cell phones, which can result in drug trafficking, fraud, and even violence. This sentence signals that justice does not stop at the prison gate; those who engage in prison corruption will face significant consequences.”
With the exception of Gutierrez, Gomez’s codefendants have all pleaded guilty. They have been sentenced as follows.
Sylvia Gonzales was convicted of Conspiracy to Commit Honest Services Wire fraud, and sentenced to five years’ probation.
Everaldo Santana was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to time-served, with three years’ supervised release.
Agustin Aceves was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 151 months incarceration, to run 50% concurrent and 50% consecutive to his state case, followed by five years’ supervised release.
Norma Alvarado-Medina was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 41 months, with three years’ supervised release to follow.
John Price was convicted of Conspiracy to Distribute Methamphetamine and Heroin, and was sentenced to 51 months incarceration, to run 50% concurrent and 50% consecutive with his state case, followed by four years’ supervised release.
Vanessa Jackson was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 30 months, to be followed by four years of supervised release.
Hugo Alvarado was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to 18 months to run concurrent with his state sentence, with three years of supervised release to follow.
Edgar Arreguin was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to time served with three years’ supervised release.
The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
DEFENDANTS Case No. 17cr0446-AJB
MARTIN GOMEZ Age 58 Lancaster Prison
SYLVIA GONZALES Age 59 Sylmar, California
EVERALDO SANTANA Age 27 Los Angeles, California
AGUSTIN ACEVES Age 45 Lancaster Prison
NORMA ALVARADO-MEDINA Age 36 Al Monte, California
JUAN GUTIERREZ Age 44 Vacaville, California
JOHN PRICE Age 23 Salinas Valley Prison
VANESSA JACKSON Age 42 Pasadena, California
JEREMY GAITHER Age 35 Valley State Prison
HUGO ALVARADO Age 27 High Desert Prison
EDGAR ARREGUIN Age 44 Lemon Grove, California
DEFENDANTS Case No. 16cr1664-AJB
ANIBAL NAVARRO Age 40 Chula Vista, California
SUMMARY OF CHARGES
Conspiracy to Distribute Illegal Narcotics – Title 21, U.S.C., Sections 841(a) and 846
10-year mandatory minimum
Maximum penalty: Life in prison and $20,000,000 fine
AGENCY
Federal Bureau of Investigation – San Diego Field Office
California Department of Corrections and Rehabilitation’s Office of Internal Affairs
California Department of Corrections and Rehabilitation’s Investigative Service Unit
United States Postal Service – Inspector Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Inland Empire Man Pleads Guilty to Federal Narcotics Charges for Stealing Doctors’ IDs to Obtain Medication to Sell on the Dark-netRead the Press Release
LOS ANGELES – A Riverside County man pleaded guilty today to two federal drug trafficking charges, one of which involves the theft of at least nine doctors’ DEA numbers and dates of birth that he used to obtain oxycodone and other prescription medications that he later sold on the dark-net.
Christopher Lazenby, 29, of Homeland, pleaded guilty to a two-count criminal information charging him with possessing with intent to distribute methamphetamine and oxycodone.
According to his plea agreement, Lazenby perpetrated his scheme by stealing the identities of at least nine doctors and one physician’s assistant, which allowed him to use the Drug Enforcement Administration’s online registration system to change the addresses of eight doctors to mailboxes he had rented in South Los Angeles and Carson. Lazenby changed the address of a ninth doctor to show his medical office was a room at a Motel 6 in Inglewood, according to an affidavit filed with the criminal complaint in the case.
With official records showing new addresses for the doctors, Lazenby – who used the aliases “Jamey Neher,” “Bryan Sheldon,” and “Colin Bohlinger” – forged the doctors’ signatures on counterfeit prescriptions and ordered oxycodone, hydrocodone and Adderall to be sent to the addresses he controlled, the plea agreement states. Lazenby admitted that after he received the narcotics, he used the dark web and Craigslist to advertise the drugs for sale.
Lazenby was arrested on October 3, 2018 at his hotel room in Torrance, which he had rented using an alias, the plea agreement states. During searches of his hotel room and car, law enforcement seized narcotics including 196 grams of methamphetamine, oxycodone pills, prescription pads in the names of the identity theft victim doctors, rubber stamps in the names of ID theft victim doctors (which Lazenby used to fraudulently sign the counterfeit prescriptions), and computer equipment, according to the plea agreement.
United States District Judge Stephen V. Wilson scheduled a February 10, 2020 sentencing hearing, at which time Lazenby will face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 10 years in federal prison.
This matter was investigated by the Drug Enforcement Administration.
This case is being prosecuted by Assistant United States Attorney Benjamin R. Barron, chief of the Santa Ana Branch Office.
Illegal Alien sentenced for reentry chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Omar Antonio Murillo-Bonilla, a citizen of Honduras, was sentenced to time served for an immigration violation, United States Attorney Bill Powell announced.
Murillo-Bonilla, age 32, pled guilty to one count of “Reentry of Removed Aliens” earlier this month. Murillo-Bonilla admitted to reentering the country illegally after be removed twice before. The crime allegedly occurred in August 2019 in Jefferson County.
Assistant U.S. Attorney Jeffrey A. Finucane prosecuted the case on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Honduran National Sentenced to Prison for His Involvement in National Conspiracy to Sell Identity Documents to Illegal AliensRead the Press Release
A Honduran national was sentenced to 33 months in prison today for his role in a scheme to sell the identities of Puerto Rican U.S. citizens and corresponding identity documents to individuals illegally residing in the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Acting Director Matthew T. Albence of U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service made the announcement.
Jose Armando Pavon Salazar (Pavon), 37, a citizen of Honduras, was sentenced by U.S. District Judge Gustavo A. Gelpi of the District of Puerto Rico, who also ordered Pavon to serve three years of supervised release. Pavon pleaded guilty on June 4, to one count of conspiracy to encourage an alien to reside in the United States for financial gain. Pavon was also ordered removed from the United States upon completion of his prison sentence. Pavon was arrested in El Salvador in January 2018 and extradited to the United States on Nov. 28, 2018. Before his arrest and extradition, Pavon had been a fugitive since March 22, 2012, when a federal grand jury sitting in the District of Puerto Rico returned a 50-count superseding indictment charging Pavon and 52 other defendants with offenses involving a massive identity fraud scheme.
According to the admissions made in connection with his guilty plea, Pavon and his co-conspirators participated in a scheme to encourage illegal aliens to reside in the United States for financial gain. To accomplish the scheme, Pavon and his co-conspirators sold government-issued identity documents, including Government of Puerto Rico-issued birth certificates and corresponding U.S. social security cards (identity documents). Pavon and his co-conspirators knew these documents pertained to real people. Pavon admitted that the documents were sold to illegal aliens so they could assume the identities of Puerto Rican U.S. citizens, and/or fraudulently apply for other identity documents in that person’s name in order to reside in the United States.
Pavon paid his supplier approximately $400 for the identify documents, consisting of a Puerto Rican birth certificate and a social security card. The supplier would then use the U.S. mail to send the documents to Pavon. To date, dozens of persons have been convicted in connection with the scheme.
ICE’s Homeland Security Investigations (HSI) Chicago and the U.S. Postal Inspection Service led the investigation with assistance from HSI San Juan, Puerto Rico. The HSI Attaché Office in the El Salvador along with El Salvador’s Transnational Criminal Investigative Unit provided invaluable support, with assistance from ICE and U.S. Postal Inspection Service offices around the country.
Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted this case with assistance from the U.S. Attorney’s Office for the District of Puerto Rico. The Criminal Division’s Office of International Affairs handled the extradition in this matter.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website at www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html, www.ssa.gov/pubs/10064.html and www.irs.gov/privacy/article/0,,id=186436,00.html.
Hartford Man Pleads Guilty to Heroin Distribution and Firearm Possession OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAFAEL ARROYO, 34, of Hartford, pleaded guilty today in Hartford federal court to narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, on July 26, 2018, a court-authorized search of Arroyo’s Broad Street apartment revealed approximately 400 bags of packaged heroin, a distribution quantity of cocaine, a Star S.A. 9mm semiautomatic pistol, an H&R “Sportsman” .22 caliber long rifle revolver, a Group Industries 9mm firearm, assorted ammunition, and three bulletproof vests.
Arroyo pleaded guilty to one count of possession with intent to distribute heroin and cocaine, which carries a maximum term of imprisonment of 20 years, and one count possession of firearms in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on December 18, 2019.
Arroyo’s criminal history includes state felony convictions for drug and firearm offenses. Arroyo has been detained since his arrest on July 26, 2018.
This matter has been investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
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 neighborhoods safer for everyone.
Harrison County woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Teressa Hall, of Bristol, West Virginia, was sentenced today to 36 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Hall, age 34, pled guilty to one count of “Use of a Firearm During and in Relation to a Drug Offense” in February 2019. Hall admitted to having a .380 caliber semi-automatic pistol with her when in possession of methamphetamine in December 2017 in Harrison County.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Hamilton pain clinic doctor pleads guilty to running pill millRead the Press Release
CINCINNATI – The owner and operator of a Hamilton pain clinic pleaded guilty in U.S. District Court today to illegal distribution of controlled substances, health care fraud and violating the anti-kickback statute.
Nilesh Jobalia, 54, of Cincinnati, entered a guilty plea before U.S. District Judge Susan J. Dlott.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General; Ohio Attorney General Dave Yost; Anthony Groeber, Executive Director, State Medical Board of Ohio; Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy; and Stephanie B. McCloud, Administrator, Ohio Bureau of Workers Compensation, announced the plea.
“Today Dr. Jobalia accepted responsibility for trafficking drugs by means of a prescription pad, health care fraud, and receiving kickbacks,” U.S. Attorney Glassman said. “He faces a substantial term of imprisonment for his crimes.”
According to court documents, Jobalia owned and operated Cincinnati Centers for Pain Relief in Hamilton, Ohio from March 2013 through December 2017. Although the practice was not licensed as such, it operated almost exclusively as a pain clinic.
Patients were prescribed fentanyl, oxycodone, methadone, morphine and other controlled substances on many occasions without actually being seen by the doctor.
Jobalia’s practice also billed Medicare, Medicaid and the Bureau of Workers’ Compensation for medically unnecessary prescriptions and services not rendered.
For example, prescriptions to one customer alone caused the Bureau of Workers’ Compensation to pay more than $450,000 for medically unnecessary drugs. In total, Jobalia caused more than $2 million in false claims.
“Our investigators started looking at Dr. Jobalia in 2015 for suspicious prescribing, and we’re pleased to see this case come to a just end,” said BWC Administrator/CEO Stephanie McCloud. “Even more so, we’re pleased to see him out of practice and out of the BWC system. Our injured workers are better off.”
Jobalia also received more than $103,000 from a pharmaceutical company for purported speaking engagements about a fentanyl spray, a medication intended for breakthrough cancer pain.
The speaking engagements were actually sham programs, though, in which many attendees were not medical professionals permitted to prescribe the fentanyl spray. Usually, Jobalia, some of his staff and the pharmaceutical sales representative were the only people present at the engagements, which were held at fine dining restaurants in the Cincinnati area.
Jobalia was indicted by a federal grand jury in June 2018.
As part of his plea agreement, the parties involved in his case are recommending a sentence range of 78 to 144 months in prison.
“This pain relief clinic was nothing more than a front for hard drug handouts,” Ohio Attorney General Dave Yost said. “Shutting the operation down is a big win for a region that’s been hit especially hard by the opioid crisis.”
“I applaud the dedication of our agents in helping to secure this conviction,” said State of Ohio Board of Pharmacy Executive Director Schierholt. “The coordination among agencies demonstrates the importance of collaboration in addressing the criminal activity fueling Ohio’s drug epidemic.”
U.S. Attorney Glassman commended the investigation by the HHS-OIG, Ohio Medical and Pharmacy boards, Bureau of Workers’ Compensation and Ohio Attorney General’s Medicaid Fraud Control Unit, as well as Assistant United States Attorneys Maritsa Flaherty and Salvador A. Dominguez, who are prosecuting the case.
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Girl’s Softball Coach Indicted for Transportation of A Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a one-count indictment against Dennis Cotto-Alvarado for transporting a female minor with the intent to engage criminal sexual conduct, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Cotto-Alvarado was the coach of girls’ softball team called “Las Maratonistas de Coamo.”
The FBI is in charge of the investigation with the collaboration of the Puerto Rico Police Department and the Puerto Rico Department of Justice.
The indictment charges that from in or about June 2017 through February 2019, Cotto-Alvarado transported a 13-year-old female minor with the intent that the minor engage in unlawful sexual activity for which a person can be charged with a criminal offense under Puerto Rico law, all in violation of Title 18, United States Code, Section 2423(a).
The case is being prosecuted by Special Assistant U.S. Attorney Cristina Caraballo. If convicted, the defendant faces a mandatory minimum sentence of incarceration of ten years and a possible maximum statutory penalty of life imprisonment.
A criminal indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.