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Monday 12 August 2019
Correctional officer indicted for accepting bribes to smuggle contraband into prisonRead the Press Release
DUBLIN, GA: A correctional officer at a federal prison has been charged in a 14-count indictment with accepting bribes in return for smuggling cigarettes to an inmate.
Michael Kerr, 30, of Vidalia, Ga., is charged with 12 counts of Bribery, one count of Providing Contraband into a Prison, and one count of making a false statement to law enforcement, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry possible punishment of up to 15 years in prison.
The indictment alleges that on 12 occasions Kerr, a correctional officer at McRae Correctional Facility, a private prison operated under a federal contract in Telfair County, accepted payments ranging from $400 to $640 in return for smuggling cigarettes to the inmate. The indictment alleges Kerr then lied when confronted about the allegations by claiming the payoff occurred only once, for $100. The forfeiture allegation included in the indictment contends Kerr accepted bribes totaling of $5,790.
“The corrections officers in our federal prison system perform outstanding work under difficult conditions,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Any guard who violates their oath makes the job for all the others more difficult, and as a consequence merits prosecution.”
“Introducing contraband undermines the integrity of federal prisons and creates a danger for correctional officers, prison staff, and inmates,” said Special Agent in Charge James F. Boyersmith, Department of Justice Office of the Inspector General, Miami Field Office. “Bribery and smuggling contraband into federal prisons will not be tolerated, and our agents will continue to root out these schemes. I’d like to thank U.S. Attorney Christine for his partnership in this effort.”
An indictment contains only charges. Defendants are considered innocent unless and until proven guilty in court.
The case was investigated by the U.S. Department of Justice Office of Inspector General, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Conman Who Posed as Beverage Entrepreneur Sentenced to more than 7 Years in Federal Prison for Running $7.5 Million Ponzi SchemeRead the Press Release
LOS ANGELES – A Canadian national was sentenced today to 87 months in federal prison for running a $7.5 million Ponzi scheme in which he defrauded investors by posing as a successful beverage entrepreneur with close ties to well-known business executives and professional sports stars, including NBA star Stephen Curry.
Khemraj Dave Hardat, 50, a former resident of the Ritz-Carlton Residences at L.A. Live in downtown Los Angeles who has been in federal custody since his arrest last November, was sentenced by United States District Judge Dale S. Fischer, who said Hardat was “not a misguided businessman; he was a very skillful fraudster.”
Hardat was sentenced after pleading guilty on April 22 to five counts of wire fraud. When he pleaded guilty, Hardat admitted that, from August 2014 through November 2018, he raised money from investors by falsely holding himself out as a successful investor and businessman in the performance beverage and water-bottling industries. Hardat duped his investors by falsely representing that he had a doctorate and that he maintained relationships with established business figures such as computer entrepreneur Michael Dell and the chief executive officer of PepsiCo.
Hardat falsely claimed that professional basketball star Stephen Curry would be endorsing one of his company’s products, and that PepsiCo and Dr. Pepper Snapple Group, Inc. owed him more than $100 million as the result of purported business deals he had consummated with them.
Hardat supported his bogus claims of financial success by showing victims doctored digital images of bank account statements showing inflated balances. One fraudulent image emailed to a victim showed a balance of nearly $500 million in one bank account, while another phony image showed a bank account balance of nearly $170 million.
In reality, Hardat used investor funds to pay off his personal debts, purchase luxury cars worth more than $100,000 each, pay rent at the Ritz-Carlton Residences, pay tuition to exclusive private schools, and purchase luxury boxes and tickets for sporting and entertainment events. Hardat also admitted that, in the style of a Ponzi scheme, he made payments to prior victim-investors out of subsequent victim-investors’ money. During the course of the scheme, Hardat took in approximately $7.5 million from investors, who suffered losses of more than $6.4 million.
“Fleeing the fallout and escaping the consequences of frauds he perpetrated in Canada, defendant immigrated to the United States, where he overstayed his visa and reconstituted his lucrative, luxurious life of financial crime,” prosecutors wrote in a sentencing memorandum. “[Hardat] befriended neighbors, fellow parents at his children’s school, and entrepreneurial would-be co-venturers, whose trust, loyalty, and hopes he carefully nurtured, only to betray them at the earliest opportunity.”
This matter was investigated by the Federal Bureau of Investigation.
This case was prosecuted by Assistant United States Attorney Adam P. Schleifer of the Major Frauds Section.
Columbus Man Pleads Guilty to Federal Drug Distribution and Firearm OffensesRead the Press Release
CHARLESTON, W.Va. – A Columbus, Ohio man pled guilty to federal drug distribution and firearm offenses, announced United States Attorney Mike Stuart. D’Alfonza Mikell, 26, pled guilty today to possession with intent to distribute methamphetamine and heroin and possession of a firearm in furtherance of a drug trafficking crime.
“Meth. Heroin. Firearm. And in a McDonald’s parking lot no less,” said United States Attorney Mike Stuart. “Definitely not a happy meal. Drug dealers aren’t wanted here and we’ll do everything within our power to remove them from our communities and to protect West Virginia families.”
On January 10, 2019, detectives with the Metro Drug Enforcement Network Team stationed themselves around the McDonald’s parking lot of Washington Street East, in Charleston. They had been warned that Mikell had come from Ohio and would be conducting a drug transaction that morning. A white pickup truck, with Mikell and three other individuals inside, pulled in and parked. Detectives watched as the defendant met with a confidential source. After meeting with the confidential source, MDENT detectives approached the truck in which Mikell was seated. Mikell was ordered out of the truck and at that time, detectives observed a Smith & Wesson .40 caliber pistol hidden underneath his leg. The defendant also had over 25 grams of methamphetamine and 2 grams of heroin inside his jacket pocket. Digital scales, 13 more grams of methamphetamine, and 2 more grams of heroin were inside the truck’s console.
Mikell faces a minimum of 5 years and up to life in federal prison when he is sentenced on December 16, 2019. Assistant United States Attorneys L. Alexander Hamner and Erik Goes are handling the prosecution.
Senior United States District Judge David A. Faber presided over the hearing.
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###California Drug Dealer to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced August 8, 2019, to 14 years in federal prison.
Michael Halstead, 32, originally from the Sacramento, California area, but most recently residing in Fort Dodge, Iowa, received the prison term after a February 28, 2019, guilty plea to conspiracy to distribute methamphetamine and illegal possession of ammunition. Halstead was previously convicted in California of felony transport of marijuana in 2006 and felony burglary in 2010.
At the plea hearing, Halstead admitted that from about August 2016 through November 2018, he was involved in a conspiracy that distributed more than seven pounds of methamphetamine in the Fort Dodge and Webster County areas. Halstead arranged for his mother, other family members and friends to transport methamphetamine, marijuana and cocaine from California to Iowa by car and train. In 2017, law enforcement made three one ounce buys of methamphetamine from Halstead. In 2018, law enforcement seized over 30 grams of methamphetamine, 30 grams of cocaine, ecstasy pills, $6,981, and well over 100 rounds of 9mm ammunition.
Halstead was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Halstead was sentenced to 168 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Halstead remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Webster County Sheriff’s Office, Fort Dodge Police Department, Iowa Division of Criminalistics Investigation, and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3046. Follow us on Twitter @USAO_NDIA.
Cabell County Man Pleads Guilty to Distributing OxycodoneRead the Press Release
HUNTINGTON, W.Va. – A Cabell County man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Billy Dean Vance, age 43, of Huntington, pled guilty to distributing oxycodone.
“Selling pills from his house and adding to the death, destruction and chaos of an epidemic,” said United States Attorney Mike Stuart. “Pill dealers have caused death and destruction across our state. Not anymore.”
On June 20, 2018, Vance sold 20, 30-milligram oxycodone pills for $700 to a person working as a confidential informant for the Drug Enforcement Administration. The sale occurred in the driveway of Vance’s Crestmont Drive home.
Vance had on prior occasions made two additional sales, both involving 10 30-milligram oxycodone pills. Those sales occurred on May 31 and June 12, 2018. On July 2, 2018, law enforcement served a search warrant at Vance’s residence and found more oxycodone pills, hydrocodone pills and marijuana. They also recovered approximately $3500 in cash.
Vance faces up to 20 years imprisonment and a fine of up to $1 million dollars when he is sentenced on November 18, 2019. The Drug Enforcement Administration conducted the investigation. United Stated District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
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CEO of Denver Technology Company Sentenced to over 6 years in Federal Prison for Obstructing and Defrauding the IRS as Well as Stealing Money from Employee Healthcare and 401(K) PlansRead the Press Release
DENVER – Riordan A. Maynard, age 50, of Centennial, Colorado, was sentenced today by U.S. District Court Judge Christine M. Arguello to serve 78 months (6 ½ years) in federal prison for corruptly impeding the administration of tax laws, conspiracy to defraud the United States, conspiracy to steal or embezzle employee benefit plan and healthcare funds, and theft or embezzlement in connection with healthcare. Maynard was found guilty of all counts charged on May 14, 2019 following a seven-day jury trial. The jury deliberated for about two hours before the sentence was handed down. He appeared at the sentencing hearing free on bond, and was ordered to report to a Bureau of Prisons facility once one is designated.
According to court records and evidence presented at trial, Maynard served as the Chief Executive Officer of two communications technology companies located in Denver, Colorado, Touchbase USA (TBUSA) and its successor company Touchbase Global Services, Inc. (TBGSI). TBGSI offered a 401(k) savings plan to the employees of both TBGSI and TBUSA. Maynard conspired with a co-conspirator to steal funds that employees had directed TBGSI to withhold from their paychecks for 401(k) plans, ultimately stealing over $68,000 of 401(k) for use on other TBGSI expenses.
TBGSI also claimed to offer its employees a healthcare benefit program under which the company would contribute $600 per month to each participant’s premiums. Participants were responsible for the remainder of the premium cost. TBGSI automatically deducted the participant contribution from each participant’s paycheck. TBGSI was then responsible for forwarding the full premium to the health insurance carrier, but ultimately never did so. Maynard was convicted of stealing over $50,000 in funds that employees had withheld from their paychecks for their health insurance plans. By June 2017, TBGSI owed over $100,000 to the health insurance carrier, which then terminated coverage for the employees. Numerous employee healthcare claims were subsequently denied, totaling over $135,000. The judge ordered that Maynard pay restitution to employees for the stolen premiums and the denied medical claims.
TBUSA and TBGSI were also required to pay payroll taxes to the IRS. From early 2012 through September 2017, Maynard corruptly impeded the IRS’s attempts to collect these taxes. Maynard closed TBUSA and reopened it as TBGSI to avoid paying more than $2.5 million in unpaid payroll taxes owed to the IRS. TBGSI then ran up an additional unpaid payroll tax liability of over $2.4 million. Maynard transferred funds from business accounts to Maynard’s personal account to avoid IRS levies. And he conspired with a co-conspirator to falsely tell TBGSI customers that IRS levies they had received were in error, in an effort to prevent customers from sending money to the IRS.
“Thanks to the hard work of this office, the Department of Labor and IRS Criminal Investigation, the defendant will live in a small cell for over 6 years for committing this complex economic crime,” said U.S. Attorney Jason Dunn. “As a result of this prosecution, those who were cheated of their benefits will receive justice.”
“IRS-Criminal Investigation enforces the nation's tax laws, and takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said IRS-Criminal Investigation Acting Special Agent in Charge Kevin Caramucci. “The victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm. Today’s sentencing of Riordan Maynard emphasizes our continued pursuit of those who use fraudulent methods in an attempt to corrupt our nation’s tax system.”
“Prosecuting those who misuse funds from employee benefit plans is a vital aspect of this agency’s mission to protect the rights of America’s workers,” said Jim Purcell, Department of Labor’s Employee Benefits Security Administration’s (EBSA) Regional Director in Kansas City. “EBSA will continue to aggressively investigate such crimes on behalf of workers nationwide.”
“Riordan Maynard embezzled over $100,000 in employee healthcare and retirement funds by depriving participants of money they set aside to pay for their health care and retirement expenses. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration to protect the integrity of DOL’s benefit programs,” said Quentin Heiden, Acting Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
This matter was investigated by the Department of Labor Office of Inspector General, the Internal Review Service Criminal Investigation, and the Department of Labor’s Employee Benefits Security Administration. This matter was prosecuted by Assistant U.S. Attorneys Rebecca S. Weber and Aaron M. Teitelbaum.
Casper Physician Sentenced for Prescription Drug Conspiracy Resulting in DeathRead the Press Release
United States Attorney’s Office today announced the sentencing of Shakeel Kahn and his brother Nabeel Kahn on federal charges of operating a continuing criminal enterprise and conspiring to distribute prescription medications, which resulted in the death Jessica Burch. The sentencing follows a nearly four week trial that concluded in May 2019.
Shakeel and Nabeel Kahn were sentenced by United States District Court Judge Alan B. Johnson.
Shakeel A. Kahn, (53) received a 25 year sentence for counts including drug distribution resulting in death, operating a continuing criminal enterprise, and the use of a firearm in furtherance of a federal drug trafficking crime. Nabeel Aziz “Sonny” Kahn (46), received a 15 year sentence, including a 5 year consecutive sentence for use of a firearm in furtherance of a federal drug trafficking crime.
“This is a substantial sentence that reflects the severity of the offenses in this case,” said U.S. Attorney Mark Klaassen. “In concert with the ongoing nationwide effort to combat opioid abuse, my office will continue to focus on stemming the tide of illegally prescribed drugs. These are particularly addictive and dangerous drugs that must be used with care, and we must ensure the integrity of the prescribing process to prevent abuse,” said Klaassen. “I appreciate the effort of the DEA diversion team in the investigation of this case.”
Numerous other defendants were charged and convicted in State court on drug trafficking charges for their involvement in selling prescription medications received through Shakeel Kahn’s practice.
The investigation of this case began in April 2016, based on a complaint from the Wyoming Board of Pharmacy indicating Shakeel Kahn was prescribing large amounts of controlled substances under two DEA registration numbers – one in Arizona and one in Wyoming. Trial testimony revealed that the Kahn drug distribution organization was unlawfully prescribing opioids in small rural communities located in and around Fort Mohave, Arizona; Casper, Wyoming; and the Wind River Indian Reservation between January of 2011 and December of 2016.
Shakeel Kahn purported to be a pain management physician. He targeted vulnerable addicts as customers. They received prescriptions for highly addictive opioids at rapidly escalating volume and in potentially deadly combination with other drugs. It was not uncommon for customers to pay as much as $4,000 per month to Kahn in exchange for the prescription opioids. The patients who received the medications often had no visible source of income that would allow them to afford the prescriptions – other than what they were earning re-selling the drugs on the street. Tragically, at least one patient, Jessica Burch, died as a result of an overdose of medications received from Shakeel Kahn’s practice.
This case was investigated with the assistance of the Drug Enforcement Administration and the Wyoming Division of Criminal Investigation.
Casper Physician Sentenced for Prescription Drug Conspiracy Resulting in DeathRead the Press Release
United States Attorney’s Office today announced the sentencing of Shakeel Kahn and his brother Nabeel Kahn on federal charges of operating a continuing criminal enterprise and conspiring to distribute prescription medications, which resulted in the death Jessica Burch. The sentencing follows a nearly four week trial that concluded in May 2019.
Shakeel and Nabeel Kahn were sentenced by United States District Court Judge Alan B. Johnson.
Shakeel A. Kahn, (53) received a 25 year sentence for counts including drug distribution resulting in death, operating a continuing criminal enterprise, and the use of a firearm in furtherance of a federal drug trafficking crime. Nabeel Aziz “Sonny” Kahn (46), received a 15 year sentence, including a 5 year consecutive sentence for use of a firearm in furtherance of a federal drug trafficking crime.
“This is a substantial sentence that reflects the severity of the offenses in this case,” said U.S. Attorney Mark Klaassen. “In concert with the ongoing nationwide effort to combat opioid abuse, my office will continue to focus on stemming the tide of illegally prescribed drugs. These are particularly addictive and dangerous drugs that must be used with care, and we must ensure the integrity of the prescribing process to prevent abuse,” said Klaassen. “I appreciate the effort of the DEA diversion team in the investigation of this case.”
Numerous other defendants were charged and convicted in State court on drug trafficking charges for their involvement in selling prescription medications received through Shakeel Kahn’s practice.
The investigation of this case began in April 2016, based on a complaint from the Wyoming Board of Pharmacy indicating Shakeel Kahn was prescribing large amounts of controlled substances under two DEA registration numbers – one in Arizona and one in Wyoming. Trial testimony revealed that the Kahn drug distribution organization was unlawfully prescribing opioids in small rural communities located in and around Fort Mohave, Arizona; Casper, Wyoming; and the Wind River Indian Reservation between January of 2011 and December of 2016.
Shakeel Kahn purported to be a pain management physician. He targeted vulnerable addicts as customers. They received prescriptions for highly addictive opioids at rapidly escalating volume and in potentially deadly combination with other drugs. It was not uncommon for customers to pay as much as $4,000 per month to Kahn in exchange for the prescription opioids. The patients who received the medications often had no visible source of income that would allow them to afford the prescriptions – other than what they were earning re-selling the drugs on the street. Tragically, at least one patient, Jessica Burch, died as a result of an overdose of medications received from Shakeel Kahn’s practice.
This case was investigated with the assistance of the Drug Enforcement Administration and the Wyoming Division of Criminal Investigation.
Buffalo Man Indicted by A Federal Grand Jury for Selling Heroin and FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury returned an indictment charging Jose Velez, 36, of Buffalo, NY, with five counts of distribution of heroin and fentanyl. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that according to the indictment, on four separate occasions between June 1 and July 12, 2017, the defendant distributed heroin and fentanyl in the Buffalo area.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is being detained.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo Man Going to Prison for More Than 21 Years for Selling Heroin and Fentanyl That Led to the Deaths of Two PeopleRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Aaron J. McDuffie, a/k/a “G”, 24, of Buffalo, NY, who was convicted of distribution of heroin and butyryl fentanyl causing death, and distribution of fentanyl, butyryl fentanyl, and furanyl fentanyl causing death, was sentenced to serve 262 months in prison by U.S. District Judge Lawrence J. Vilardo.
“Our community has adopted a multi-faceted approach—including enforcement, treatment, and prevention efforts—in our battle against the deadly opioid epidemic,” stated U.S. Attorney Kennedy. “While that approach has produced positive results, too many of our loved ones and friends continue to die. Just as the Erie County Opiate Task Force has sought to build on prior successes by devising new and innovative treatment and prevention efforts, this Office, together with our law enforcement partners, has been extremely forward-leaning in our effort to develop a comprehensive and relentless law enforcement plan to take-out those who are fill our streets with these deadly opioids. While no amount of jail time will ever bring back an overdose victim, aggressive prosecutions such as this, which result in long prison sentences, serve: to protect our community, by ensuring that this defendant will not have the opportunity to fatally poison anyone else in our community for a very long time; to deter others from engaging in future drug trafficking activity, by letting them know that they will face severe and certain punishment if they distribute drugs that injure or kill others; and finally, to reinforce the message that, in our Western New York community, all lives are deemed to be worthy of protection.”
Assistant U.S. Attorneys Misha A. Coulson and Wei Xiang, who handled the case, stated that on June 27, 2015, the defendant met with a repeat drug customer identified as “A.E,” a 24 year-old Cheektowaga man. McDuffie sold A.E. a quantity of powder that the defendant advertised as “fire,” a mixture that contained heroin and butyryl fentanyl. A.E. died as a result of using the drugs McDuffie provided to him.
On November 23, 2016, McDuffie met with another repeat drug customer identified as “D.M,” a 34 year-old West Seneca man, and sold him a quantity of powder that the defendant advertised once again as “fire.” This mixture contained fentanyl, butyryl fentanyl, and furanyl fentanyl. D.M. also died as a result of using the drugs McDuffie provided to him.
On November 30, 2016, law enforcement officers arrested McDuffie leaving his residence in Buffalo. The defendant was on his way to distribute a quantity of powder that contained fentanyl, butyryl fentanyl, and furanyl fentanyl. Under McDuffie’s living room couch, officers recovered a Hi-Point, .40 caliber semi-automatic handgun that was loaded with eight rounds of .40 caliber ammunition.
The sentencing is result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Division; Cheektowaga Police Department, under the direction of Chief David Zack; and the West Seneca Police Department, under the direction of Chief Daniel Denz.
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Belgian Citizen Pleads Guilty to Insider TradingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the Federal Bureau of Investigation, announced that NICHOLAS ZANEN, 46, of Belgium, pleaded guilty today before U.S. District Judge Alvin W. Thompson to a conspiracy charge stemming from his role in an insider trading scheme.
According to court documents and statements made in court, Zanen was employed by Cheniere Energy, Inc. (“Cheniere”), a Houston-based energy company whose common stock traded on the New York Stock Exchange under the symbol LNG. Zanen was a vice president of trading in the Cheniere’s United Kingdom Branch and was based in London. Cheniere maintained written policies prohibiting the direct or indirect disclosure of confidential information and requiring employees to prevent the disclosure of such confidential information. In his position, Zanen had access to material non-public information concerning Cheniere’s deals, financings, and other business information, and he was in possession of inside information prior to public announcements.
Between November 2011 and December 2012, Zanen disclosed Cheniere inside information to a friend, Francis J. Van Steenberge, and advised him whether to buy or sell Cheniere securities with the understanding that Van Steenberge would execute the security transactions on the basis of these instructions. Zanen and Van Steenberge generated approximately $1 million through this scheme.
Zanen also caused to be made materially false and fraudulent statements to the Financial Industry Regulatory Authority (“FINRA”) that he was unaware of the circumstances under which Van Steenberge gained knowledge of Cheniere’s business activities.
On June 4, 2014, a federal grand jury in New Haven returned an indictment charging Zanen with one count of conspiracy to commit securities fraud and three counts of securities fraud. Zanen, who was living abroad in London, Singapore and Belgium, was apprehended on April 22, 2019, in Pisa, Italy. He was extradited to the U.S. on June 13, 2019.
Zanen pleaded guilty to one count of conspiracy to commit securities fraud. Judge Thompson scheduled sentencing for November 4, 2019, at which time Zanen faces a maximum term of imprisonment of five years. Zanen has been detained since his arrest.
On April 4, 2014, Van Steenberge pleaded guilty to the same offense. He awaits sentencing.
In the companion case Securities and Exchange Commission v. Nicolas Zanen and Francis J. Van Steenberge, a judgment was issued ordering Zanen to pay a civil penalty of $432,775.70 to the SEC. Zanen has paid the penalty.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry. U.S. Attorney Durham thanked the U.S. Department of Justice’s Office of International Affairs for its assistance in this matter, in particular former DOJ Rome Attache’ Cristina Posa.
U.S. Attorney Durham stressed that protecting the integrity of the capital markets and ensuring that individuals comply with our nation’s securities laws is a priority of the Justice Department. Individuals who believe that they have been victimized by this insider trading scheme should contact the FBI in New Haven at 203-777-6311.
Barre Man Indicted on Firearms ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Demetericius Campbell, age 42, of Barre, Vermont, has been indicted on three federal firearms charges. Specifically, he is charged with two counts of making false statements to a gun store in connection with attempted firearms purchases, and one count of possessing a firearm while subject to a restraining order. At his arraignment in U.S. District Court in Burlington last Friday, August 9, 2019, Campbell pleaded not guilty to all counts. The government has filed a motion asking United States Magistrate Judge John M. Conroy to order Campbell detained in the custody of the U.S. Marshal’s Service pending disposition of the charges. A hearing on that motion is set for Tuesday, August 13, 2019, at 1:30 p.m.
Court records show that on December 4, 2018, the Vermont Superior Court in Washington County issued a 6-month extended relief from abuse order against Campbell. The protected parties were his ex-wife and three children. Among other things, the order restrained Campbell from threatening, abusing, and using physical force against the petitioning parties. Campbell was present for the hearing on the petition and was served by hand with the relief from abuse order. Under federal law, the order prohibited Campbell from possessing firearms and a portion of the paperwork served upon him notified him that certain qualifying restraining orders prohibited him from possessing firearms under federal law. On December 6, 2018, Campbell attempted to purchase two pistols at R&L Archery in Barre. On the firearm transaction form, Campbell falsely stated that he was not subject to a restraining order prohibiting him from threatening an intimate partner. R&L denied him the purchase because the background check revealed the existence of the restraining order. On January 25, 2019, Campbell attempted to purchase three pistols at R&L, again falsely denying on the transaction paperwork that he was the subject of a restraining order. R&L denied the purchase for the same reason. In February 2019, in the course of the execution of a search warrant at Campbell’s residence, law enforcement found a firearm and ammunition in his bedroom. The restraining order prohibited his possession of these items.
The Indictment is an accusation only and Campbell is presumed innocent until and unless proven guilty. The maximum possible sentence on each federal charge is 10 years of imprisonment. However, any sentence would be informed by the U.S. Sentencing Guidelines.
U.S. Attorney Christina E. Nolan thanked the ATF and the Barre City Police Department for their investigative work and collaboration. She stated: “We can, and must, use our federal gun laws to address and prevent domestic violence throughout Vermont. Roughly half of Vermont’s homicides arise in the domestic violence context and a substantial number of them are committed with firearms. We will continue to take guns out of the hands of dangerous individuals who possess or attempt to possess them unlawfully. This will continue to be an urgent priority, as it is quite literally a matter of life and death.”U.S. Attorney Nolan is representing the United States in this case. Campbell is represented by Robert Katims, Esq.
Baltimore Felon Sentenced to Seven Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Justin Hopkins, age 28, of Baltimore, Maryland, to seven years in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Justin Hopkins illegally possessed a firearm, which he fired at the father of his girlfriend’s child—in front of the child—in order to settle a dispute” said U.S. Attorney Robert K. Hur. “Hopkins will now serve more than seven years in federal prison, where there is no parole—ever. We must change the culture of gun violence in Baltimore. Please, put down the gun. You may save a life, including your own.”
According to his guilty plea, on February 22, 2018, Hopkins and his girlfriend were awaiting the arrival of her son at their residence in the 1900 block of McCulloh Street in North Baltimore. Prior to the child arriving at the residence, Hopkins and the child’s father, D.J., who was bringing the child to the house, had engaged in verbal altercations that involved threats of physical harm.
Hopkins was waiting outside when D.J. arrived at the house with his girlfriend, K.C., and his child. The two men immediately confronted each other. D.J. challenged Hopkins to a fight, and after exchanging threats, Hopkins stated, “I got something for you,” and went into the house. Within 30 seconds, Hopkins leaned out of a top floor window, pointing a gun at D.J. and K.C. D.J. walked into the middle of the street, daring Hopkins to shoot him. Hopkins fired multiple rounds, missing D.J. D.J. and his girlfriend entered the car to flee and Hopkins shot again, shattering the sunroof of their vehicle. D.J. and K.C. called the police and multiple officers responded.
D.J. and K.C. flagged down an officer in the area and pointed to Hopkins from half-a-block away. The officer saw Hopkins running away with a silver backpack with spikes on it. Officers followed Hopkins through a park to the 500 block of Presstman Street, where Hopkins emerged from the park and was apprehended, but without the backpack. An officer returned to the park and recovered a silver backpack matching the description of the backpack carried by Hopkins. Inside the backpack, officers recovered a .22-caliber short barreled rifle and spent ammunition. The barrel and handle of the rifle had been sawed off, with a barrel length less than 16 inches. Hopkins was prohibited from possessing a firearm or ammunition as a result of a previous felony conviction. When Hopkins saw the officer emerging from the park with the backpack, he fled again, but was recaptured by officers a block away. After his arrest, Hopkins made a recorded jail call to his girlfriend and admitted shooting at the vehicle driven by D.J.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Goldsticker and David Metcalf, who prosecuted the case.
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Another Laredoan Arrested for Transporting AliensRead the Press Release
LAREDO, Texas – A 25-year-old Laredo resident has been arrested on charges of transporting an undocumented alien after another local violent crash, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested Francisco Javier Quiroga Aug. 9, 2019. He is set to make his initial appearance today at 11:00 a.m. before U.S. Magistrate Judge Sam Sheldon.
The criminal complaint alleges that on Aug. 9, law enforcement observed multiple people being loaded into a vehicle near the Rio Grande River in Laredo. They attempted to perform an immigration inspection but the vehicle failed to stop, according to the charges. It crashed and rolled over. Authorities then observed people running out of the vehicle, according to the allegations.
According to the complaint, there were eight individuals in the vehicle, including Quiroga. The seven others were all allegedly undocumented aliens. One of them suffered a fractured sternum and three broken ribs as a result of the incident, according to the complaint.
If convicted of transporting an undocumented alien causing serious bodily injury, Rodriguez faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Allen Woman Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Allen, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 12, 2019, by U.S. District Judge Roberto A. Lange.
Clara Poor Bear, age 28, was sentenced to 60 months in federal prison, followed by 4 years of supervised release, and ordered to pay a $1,000 fine and a $100 special assessment to the Federal Crime Victims Fund.
Poor Bear was indicted by a federal grand jury on August 14, 2018. She pled guilty on May 29, 2019.
The conviction stemmed from a conspiracy that occurred between October 1, 2016, through January 31, 2017, where Poor Bear knowingly and intentionally conspired with others, and distributed between 350 and 500 grams of methamphetamine on the Rosebud Indian Reservation.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Poor Bear was immediately turned over to the custody of the U.S. Marshals Service.
Saturday 10 August 2019
Statement from Attorney General William P. Barr on the Death of Jeffrey EpsteinRead the Press Release
Attorney General William P. Barr issued the following statement:
“I was appalled to learn that Jeffrey Epstein was found dead early this morning from an apparent suicide while in federal custody. Mr. Epstein’s death raises serious questions that must be answered. In addition to the FBI’s investigation, I have consulted with the Inspector General who is opening an investigation into the circumstances of Mr. Epstein’s death."
Statement of Manhattan U.S. Attorney on the Death of Defendant Jeffrey EpsteinRead the Press Release
Manhattan U.S. Attorney Geoffrey S. Berman said: “Earlier this morning, the Manhattan Correctional Center confirmed that Jeffrey Epstein, who faced charges brought by this Office of engaging in the sex trafficking of minors, had been found unresponsive in his cell and was pronounced dead shortly thereafter of an apparent suicide. Today’s events are disturbing, and we are deeply aware of their potential to present yet another hurdle to giving Epstein’s many victims their day in Court. To those brave young women who have already come forward and to the many others who have yet to do so, let me reiterate that we remain committed to standing for you, and our investigation of the conduct charged in the Indictment – which included a conspiracy count – remains ongoing.
We continue to urge anyone who feels they may be a victim or have information related to the conduct in this case to please contact 1-800- CALL FBI.”
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Friday 9 August 2019
Young Laredoan to Appear in Court After Violent CrashRead the Press Release
LAREDO, Texas – A 23-year-old has been charged with transporting aliens following a vehicle crash that seriously injured eight, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested Oziel Rodriguez Aug. 2 and made his initial appearance the following Monday. Today, he is set to make his preliminary examination and detention hearing at 10:00 a.m. before U.S. Magistrate Judge Sam Sheldon.
The criminal complaint alleges that on Aug. 2, law enforcement noticed a sensor alert. Shortly thereafter, they witnessed a vehicle leaving the area, according ot the charges. The vehicle allegedly began to accelerate and eventually struck a median, causing it to rollover.
According to the complaint, a total of 12 people were in the vehicle at the time of the rollover, including Rodriguez. The other 11 were determined to be undocumented aliens, eight of whom sustained serious bodily injuries, the complaint alleges.
Rodriguez allegedly left the scene of the accident. The complaint alleges that authorities located him and noted injuries to his chest and arm consistent with those caused by a vehicle accident.
If convicted of transporting an undocumented alien causing serious bodily injury, Rodriguez faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol and the Laredo Police Department. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Warren man sentenced to 60 years in prison for selling heroin that resulted in the overdose death of woman, as well as other crimesRead the Press Release
A Warren man was sentenced to 60 years in federal prison for selling heroin that resulted in the overdose death of a woman, as well as other crimes.
A jury earlier this year found John G. Simer II, 40, guilty of all 13 counts he faced, including: distribution of heroin that resulted in death, possession with intent to distribute heroin, possession with intent to distribute cocaine, being a felon in possession of firearms, using firearms in furtherance of drug trafficking and being a felon in possession of body armor.
U.S. District Court Judge Christopher Boyko sentenced Simer to 55 years in prison, plus five years for having a firearm in relation to drug trafficking. That sentence must be served consecutively to the underlying prison sentence.
The judge also ordered Simer to pay $2,869.64 to the dead woman's family related to funeral expenses.
Simer sold heroin on March 20, 2017. A Warren woman ingested the heroin and fatally overdosed, according to court documents and trial testimony.
Simer possessed heroin and cocaine on April 19, 2017, when police searched his residence. He also possessed a Smith & Wesson .40-caliber pistol, 58 rounds of ammunition and body armor on that day, despite previous convictions for aggravated robbery and firearms offenses that made it illegal for him to have a firearm or body armor, according to court documents and trial testimony.
“This defendant was a one-man crime wave,” U.S. Attorney Justin Herdman said. “He sold heroin that killed a young mother and was found to have carfentanil, fentanyl, heroin, cocaine, firearms, ammunition and body armor. Our community is safer with him locked up for decades.”
Warren Police Chief Eric Merkel said: "I hope this case serves as a cautionary tale to anyone who thinks their criminal liability ends after they have sold their drugs. We will continue to investigate these overdose deaths and bring those responsible to justice. I would like to thank Detective Melanie Gambill and the Warren Street Crimes Unit for all of their hard work on this case."
This case was investigated by the Warren Police Department’s Street Crimes and prosecuted by Assistant U.S. Attorney Segev Phillips.
Ulster County Man Found Guilty of Sexually Exploiting a Child and Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Matthew Osuba, 34, of Saugerties, New York, was found guilty today of sexual exploitation of a child, of distributing child pornography, and of possessing child pornography following a three-day jury trial. 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).
The evidence at trial showed that Osuba videotaped himself sexually exploiting a minor child. The trial evidence also included that he sent three images of child pornography over the internet using a chat application on his mobile phone, and possessed three additional images of prepubescent girls engaged in sexually explicit conduct.
Sentencing is set for December 12, 2019, before Senior United States District Judge Thomas J. McAvoy. Osuba faces a minimum sentence of 15 years, and a maximum sentence of up to 70 years in prison, to be followed by a term of supervised release of up to life. He will also be required to register as a sex offender. 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 was investigated by the FBI, New York State Police, the Town of Colonie (New York) Police Department, and the Warren County (New York) Sheriff’s Department. It is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Shira C. Hoffman.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Two Charged for Hoax Bomb Threat at Deschutes County CourthouseRead the Press Release
EUGENE, Ore.—A federal criminal complaint was unsealed today charging two defendants with placing a hoax bomb at the Deschutes County Courthouse on July 29, 2019.
Kellie Kent Cameron, 31, and Jonathan Tyler Allen, 23, both of Bend, Oregon, were charged with conspiracy to make a threat regarding explosive materials in violation of 18 U.S.C. §§ 844(e) and (n) and false information and hoaxes in violation of 18 U.S.C. § 1038.
This case is being investigated by the FBI and the Deschutes County Sheriff’s Office and is being prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Toledo man charged in federal court for making threats against a member of Congress and illegally having ammunitionRead the Press Release
A Toledo man was charged in federal court for making threats against a member of Congress and illegally having ammunition.
Timothy J. Ireland, Jr., 41, was charged in U.S. District Court in Toledo with one count of being a felon in possession of a firearm, one count of being a fugitive in possession of a firearm and one count of making interstate threats.
According to a criminal complaint filed in the case:
The United States Capitol Police (USCP) received information on July 23 that threatening statements were posted on Facebook. The statements were perceived to be threats against a member of the U.S. House of Representatives. A screen shot was provided to USCP of a news story related to the member of Congress with linked comments that stated: “She should be shot. Can’t fire me, my employer would load the gun for me.”
The statement was made from a Facebook page whose listed user was Tim Ireland of Toledo, Ohio, according to the complaint.
A criminal history check revealed Ireland had outstanding warrants for felony failure to appear in Sarasota County, Florida, and a misdemeanor failure to appear related to a marijuana possession charge in Cook County, Georgia. Further review revealed Ireland had been convicted in 1996 in Sarasota County of four felony counts of dealing in stolen property.
USCP personnel called Ireland on August 2. He stated he made the statements and was very proud of the post he made. He also stated he has firearms and always carries them concealed, according to the complaint.
USCP and ATF agents executed a search of Ireland’s residence at 234 Kosciusko Street in Toledo on August 8. He was taken into custody on the warrant outstanding in Florida. A search revealed three rounds of .32-caliber ammunition and four rounds of .45-caliber ammunition.
“There is absolutely no place in the marketplace of ideas for threats of violence against any person, especially those who are elected to represent the American people,” U.S. Attorney Justin Herdman said. “Disagreement on political issues cannot lead to acts of violence, and if it does, we will seek federal prison time.”
“The mission of the United States Capitol Police is to protect the Congress, the U.S. Capitol, and all who work and visit here. I want to thank our special agents for their excellent work in investigating this case as well as our law enforcement partners and the U.S. Attorney’s Office for their assistance,” said U.S. Capitol Police Chief Steven A. Sund.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the United States Capitol Police, Bureau of Alcohol, Tobacco, Firearms and Explosives and Toledo Police Department. It is being prosecuted by Assistant U.S. Attorney Matthew Simko and Robert Melching.
A charge is only an allegation and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
A copy of the criminal complaint can be found here:
Three Parents Charged with Stealing Social Security Benefits from ChildrenRead the Press Release
COLUMBUS, Ohio – Three parents have been charged and two have pleaded guilty to receiving their children’s Social Security disability payments while the children were not in their care.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Tracey Thanos, Special Agent in Charge, Social Security Administration Office of Inspector General, announced the charges.
Shannon Scott, 35, of Columbus, pleaded guilty before Magistrate Judge Norah McCann King on Wednesday. Scott lost custody of her child in 2014 but falsely represented to Social Security that her child was still living with her in order to continue receiving her child’s disability payments through July 2018. In total, she fraudulently obtained more than $35,000.
Jennifer Riggs, 40, of Heath, pleaded guilty before Magistrate Judge Norah McCann King in June. In 2016, Riggs lost custody of her child but continued accepting the child’s Social Security benefits through May 2018, receiving nearly $17,000 in disability payments.
Maddo Tamboura, 42, of Whitehall, was charged by a federal grand jury on Thursday and arrested today. According to his indictment, Tamboura kept Social Security payments for two children that did not live with him, totaling more than $19,000.
Converting Supplemental Security Income benefits is a federal crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigations by the SSA’s Office of the Inspector General and Special Assistant United States Attorney Timothy Landry, who is prosecuting all three cases.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Three Orlando Men Indicted for Scheme to Facilitate Employment of Illegal Aliens and Evade Payroll Taxes and Workers’ Compensation LawsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging three Honduran nationals, Gregorio Fuentes-Zelaya (26), Santiago Erazo-Zelaya (25), and Dennis Barahona (36), with conspiracy to commit wire fraud. Fuentes-Zelaya is also charged with one count of conspiracy to commit tax fraud, five counts of wire fraud, and two counts of tax fraud. Additional charges against Erazo-Zelaya include one count of conspiracy to commit tax fraud, one count of wire fraud and one count of tax fraud. Barahona is also charged with one count of wire fraud.
Each wire fraud count carries a maximum penalty of 20 years in federal prison and each tax fraud count carries a maximum penalty of 5 years’ imprisonment. The indictment also notifies the defendants that the United States intends to seek forfeiture of a total of $1,367,625, the approximate amount obtained as a result of the wire fraud offenses, as well as a 2014 Land Rover, and two bank accounts (totaling $230,764) that were utilized during the scheme.
Fuentes-Zelaya and Erazo-Zelaya are Honduran citizens who are illegally present in the United States. On May 8, 2019, an immigration judge ordered Erazo-Zelaya to be deported to Honduras. Barahona is a naturalized U.S. citizen from Honduras.
According to the indictment, the three men established shell companies that purported to be the employers of construction work crews that were mostly made up of illegal aliens. The shell companies entered into agreements with construction contractors in which the shell companies purported to be subcontractors. The workers then performed construction work as directed by the contractors, but were paid through the shell companies. By obtaining and paying the workers through the shell companies, the contractors avoided responsibility for ensuring that the workers were legally authorized to work in the United States, that required state and federal payroll taxes were paid, and that adequate workers’ compensation insurance was provided.
Florida law requires any business that engages in construction work to secure and maintain workers’ compensation insurance. The defendants applied for workers’ compensation insurance policies to cover a few employees and a minimal payroll. The defendants then “rented” those insurance policies to numerous construction work crews employing hundreds of workers. The contractors wrote payroll checks to the shell companies for work performed by the work crews and then deposited those payroll checks into a bank and distributed the payroll to the work crew leaders, who in turn paid the workers. The defendants kept at least 6% of the amount of each payroll check as a fee.
During the period of the scheme, the defendants cashed payroll checks totaling approximately $22,793,748, and their fees totaled approximately $1,367,625. Had workers’ compensation policies been purchased for the payroll amount, the policy premiums would have totaled approximately $3.6 million. The policies purchased and then “rented” out by the defendants were for estimated payrolls of $80,800 to $100,800, and the insurance company issued those policies for annual premiums ranging from $15,206 to $31,268.
Although a total of almost $23 million of payroll passed through the shell companies, neither the defendants nor the contractors remitted payroll taxes to the IRS. According to the IRS, the estimated amount of payroll taxes due on the total wages is approximately $5.3 million.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
State Department Official Pleads Guilty to Procurement FraudRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C., woman pleaded guilty today to disclosing confidential State Department bid proposals in an effort to help a furniture company executive win a lucrative government contract to provide furniture to a United States embassy abroad.
According to court documents, Patricia DeLaughter, 69, was a State Department official who was responsible for procuring furniture for United States embassies. In or around December 2016, the State Department was constructing a new embassy in a foreign nation. DeLaughter and another Department official participated in the process of soliciting bid proposals from contractors for the procurement of furniture for the new embassy’s offices.
From in or around December 2016 to in or around March 2017, DeLaughter and the other State Department official knowingly disclosed to Steven Anstine, the vice president of sales for an American furniture manufacturer, the confidential bid prices and design plans of at least three of Anstine’s competitors. DeLaughter knowingly disclosed this information in order to give Anstine—with whom DeLaughter had a social relationship—a competitive advantage in securing the procurement contract for the new embassy. The information that DeLaughter and her coworker gave Anstine enabled him and his company to win the contract with a bid of approximately $1.56 million.
According to DeLaughter’s admissions, DeLaughter made intentionally false statements to agents investigating her conduct. She falsely told State Department Office of Inspector General special agents that she had nothing to do with the embassy furniture project. She also falsely told the agents that she did not have a social relationship with Anstine. In fact, DeLaughter and Anstine had a social relationship and attended dinners, sporting events, and concerts together. Anstine paid at least a portion of DeLaughter’s expenses for these events.
In June 2019, Anstine pleaded guilty to one count of illegally obtaining contractor bid or proposal information in the U.S. District Court for the District of South Carolina.
DeLaughter pleaded guilty to one count of illegally disclosing contractor bid or proposal information and faces a maximum penalty of five years in prison when sentenced on November 8. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division, and Steve A. Linick, Inspector General for the Department of State, made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the plea. Special Assistant U.S. Attorney Russell L. Carlberg, Deputy Chief Robert J. Heberle and Trial Attorney John P. Taddei of the Criminal Division’s Public Integrity Section 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-205.
St. Francis Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Aleah Walking Bull, age 24, was indicted on November 14, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 8, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 14, 2018, Walking Bull did forcibly assault, resist, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services.
The charge is merely an accusation and Walking Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Walking Bull was released on bond pending trial. A trial date has not been set.
South Florida Resident Sentenced to 70 months for Investment Fraud Scheme after Attempting to Flee the CountryRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the Florida Office of Financial Regulation (OFR) announced that Jorge Garrido, 45, of Miami, Florida, was sentenced by U.S. District Judge Cecilia Altonaga on August 7, 2019, to 70 months in prison. Garrido was also ordered to pay approximately $5.7 million in restitution after previously pleading guilty to orchestrating the investment fraud scheme (Case No. 18-20784-CR-ALTONAGA).
According to the court record, from 2010 to 2017, Garrido served as the president, director and registered agent of G & C Investment Corp (G&C). In those capacities with G&C, Garrido solicited investors for advance contributions of as much as $1 million, which Garrido stated he would use to monetize bank instruments, engage in platform trading, or fund humanitarian platforms, among other things. Garrido promised staggering returns to his investors of as much as 15- or 20-times their initial contribution. Garrido also claimed he could guarantee the safety of the investors’ principal by asserting he owned U.S. Treasury Notes which would serve as collateral for the investments. In reality, the Treasury Notes did not exist.
Garrido failed to provide promised returns to investors, and instead used nearly $5 million for his personal benefit. He then attempted to flee the country in March 2017 after learning of the Government’s case against him, and was apprehended at Palm Beach International Airport by the FBI as he was preparing to board a private charter jet headed for Europe.
Judge Altonaga ordered Garrido’s sentence to be run consecutively after he completes a 46-month sentence he is currently serving for a separate mortgage fraud case (Case No. 15-20973-CR-WILLIAMS).
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and OFR in this matter. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Sioux City Man Sentenced for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
A man from Sioux City, IA was sentenced August 9, 2019, to more than 9 years in federal prison.
Jesus Giron, age 22, from Sioux City, IA received the prison term after a pleading guilty to possession of a firearm in furtherance of a drug trafficking crime.
Evidence at his detention, change of plea, and sentencing hearings revealed on or about May 20, 2018, was stopped by law enforcement after burglarizing a motor vehicle in Sioux City, Iowa. Upon his arrest officers located 15 one-gram baggies of cocaine and $1,041.00 on his person.
Once at the Woodbury County Jail officers located 15 more baggies, each containing a half-gram of cocaine, in Giron’s waistband. A search warrant at his home revealed drug packaging materials, marijuana, and ammunition. In his living room more marijuana and five baggies of cocaine were discovered. In his basement, officers located a large duffel bag with a large quantity of marijuana and cocaine inside. Also in this bag was a handgun, digital scales, and drug packaging materials. Almost directly above where this bag was located, on top of an air duct, was a plastic shopping bag containing $5,000.
Giron was already a state felon, on state probation, and awaiting resolution of other state felony charges when these discoveries were made.
Giron was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Giron was sentenced to 117 months’ imprisonment and he must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4048.
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Second Former NYPD Officer Sentenced to Federal Prison for Social Security Disability Fraud and Tax EvasionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GERARD SCPARTA, a former New York City Police Department (“NYPD”) officer, was sentenced today to 18 months in prison for fraudulently obtaining over approximately $630,000 in disability benefits from the Social Security Administration (“SSA”) and underreporting income on his taxes by approximately $268,000. At the same time SCPARTA was fraudulently collecting disability benefits, he earned a total of approximately $1.6 million working as a security guard and host at a strip club (the “Strip Club”) located in Manhattan. SCPARTA was sentenced by U.S. District Judge Alison J. Nathan, before whom he had previously pled guilty to tax evasion and theft of government property.
Earlier this year, in a related case also involving a former NYPD police officer and New York City Fire Department (“FDNY”) firefighter, SCOTT MARAIO was sentenced to one year and one day in prison on January 23, 2019 by U.S. District Judge Sidney H. Stein for fraudulently collecting over approximately 360,000 in Social Security benefits over a period of ten years by lying repeatedly to the SSA about his purported inability to work due to disability, when he also worked at the Strip Club and in other employment.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Gerard Scparta, a former NYPD officer, illegally collected over $630,000 in disability benefits by claiming that he could not work in any capacity due to anxiety and depression. During the very same time period, Scparta felt well enough to earn over $1.6 million working at a Manhattan strip club. Gerard Scparta perverted the Disability Insurance system for his own personal gain, depleting a system intended for people with legitimate claims who depend on those benefits for their well-being. For his reprehensible conduct, Scparta has been sentenced to federal prison and will trade velvet ropes for steel bars.”
According to documents filed in Manhattan federal court:
The SSA administers Social Security Disability Insurance (“SSD”), a federal benefits program that provides monthly cash benefits to individuals who have worked in the past and paid into Social Security, but who can no longer engage in any substantial gainful activity due to medical disabilities. SSD is a disability benefit available only to individuals who have a qualifying disability and are unable to work in any profession. In order to receive SSD, a beneficiary must certify that he or she is incapable of performing any gainful activity due to disability. In addition, a beneficiary must report to the SSA all sources of income from work activity and any changes in the beneficiary’s medical condition, which are taken into account in determining whether the beneficiary is entitled to payments and the amount of those payments.
GERARD SCPARTA
Between in or about 1986 and in or about 1997, SCPARTA worked as a police officer with the NYPD. In or about 1997, after reportedly sustaining an injury at the age of 32, SCPARTA was referred to an individual (“CC-1”) who helped him fraudulently obtain disability benefits. Specifically, CC-1 submitted SSD application materials signed by SCPARTA that falsely stated, among other things, that SCPARTA suffered from severe depression and anxiety, could not do anything around his house, and was unable to work in any capacity. In addition, CC-1 coached SCPARTA to make the same false statements to physicians who examined SCPARTA for the purpose of establishing his disability and submitting reports to the SSA. For example, in one examination by a physician, SCPARTA pretended that he did not know where he was, could not remember the last four vice presidents, and had trouble repeating numbers that were told to him. Based on these false statements and representations by SCPARTA in documents and reports submitted to the SSA, the SSA approved SCPARTA to receive disability benefits from in or about 1997 onward.
In addition to lying about his disability status and inability to work, SCPARTA falsely claimed on multiple forms submitted to the SSA that he did not work, and failed to report earnings from employment as required. In fact, from in or about April 2004 up to and including at least in or about December 2017, SCPARTA worked as a security guard and host at the Strip Club. From in or about 1997 up to and including in or about 2017, SCPARTA received a total of over approximately $638,000 in disability benefits for himself, his wife, and his children, while at the same time SCPARTA earned approximately $1.6 million from his work at the Strip Club.
Further, from in or about 2012 up to and including in or about 2017, SCPARTA engaged in tax evasion by concealing and attempting to conceal from the IRS the nature and extent of his income. Specifically, SCARPTA utilized a nominee company registered to his wife to report income that SCPARTA earned from the Strip Club and falsely underreported that income by a total of approximately $268,602 for the tax years 2012 through 2016.
SCOTT MARAIO
From in or about 1985 through in or about 1986, MARAIO worked as an NYPD police officer. Beginning in or about July 1987, MARAIO began working as a firefighter with the FDNY. In or about January 2002, at the age of 37, MARAIO stopped working as a firefighter due to a claimed disability, and began receiving disability benefits. On multiple forms submitted to the SSA, MARAIO falsely claimed he could not work due to problems with his neck and back and failed to report earnings from employment as required. In fact, from in or about September 2008 through in or about August 2014, MARAIO worked as a security guard at the Strip Club. In addition, from in or about July 2012 through at least in or about February 2018, MARAIO worked for a staffing company (the “Staffing Company”) in various positions relating to fire safety on construction sites, including as a fire safety manager and fireguard. From in or about October 2008 through in or about February 2018, MARAIO received a total of over approximately $364,000 in disability benefits for himself, his wife, and his children, while at the same time MARAIO earned a total of approximately $450,000 from his employment at the Strip Club and with the Staffing Company.
* * *
In addition to his prison sentence, SCPARTA, 54, of Campbell Hall, New York, was sentenced to 3 years of supervised release and ordered to make restitution in the amount of $726,517 and to forfeit the $638,586 in Social Security disability benefits he obtained fraudulently.
MARAIO, 54, of Staten Island, New York, was also sentenced to three years of supervised release and ordered to pay restitution and forfeiture of $364,040.
Mr. Berman praised the outstanding investigative work of the United States Social Security Administration, Office of the Inspector General, and the Internal Revenue Service, Criminal Investigation Division. Mr. Berman also thanked the Manhattan District Attorney’s Office and the New York City Department of Investigation for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Seattle Felon Indicted for Possession of a Dozen Weapons Including Ar-Style Assault RiflesRead the Press Release
A 66-year-old Seattle resident was indicted today by a grand jury for being a felon in possession of firearms, announced U.S. Attorney Brian T. Moran. PARK QUAN was arrested July 29, 2019, after FBI agents investigating one of his roommates in connection with a data theft, served a search warrant on his home and discovered a cache of weapons. QUAN has two federal convictions and is prohibited from possessing firearms. QUAN remains in federal custody and will be arraigned on the indictment on August 22, 2019.
“Federal law enforcement makes it a priority to get weapons out of the hands of those who illegally possess them,” said U.S. Attorney Brian T. Moran. “I commend the FBI agents who went into a potentially-dangerous situation and secured these weapons without any shots fired. The U.S. Attorney’s office works every day with state, local, tribal and federal law enforcement to keep our communities safe.”
According to records filed in the case, agents investigating the data theft were sweeping the residence for safety when they observed numerous firearms in a bedroom used by QUAN. Agents applied for and got a second judicially-authorized search warrant and began collecting the firearms. The cache of weapons included four semi-automatic handguns, eight rifles, six of them semi-automatic rifles including two AR-style assault rifles.
QUAN has a 1983 conviction in Washington for being a felon in possession of explosives and a 1991 conviction in Texas for possessing an unregistered machine gun. QUAN also has a military court-martial conviction for soliciting the theft of military weapons. Due to those convictions, QUAN is prohibited from possessing firearms.
Being a felon in possession of a firearm is punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorneys Steven Masada and Andrew Friedman.
Rock Hill Man Sentenced to Federal Prison on Firearm ChargeRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Richard Darryl Moon, age 55, of Rock Hill, was sentenced to 2 years in federal prison after pleading guilty to being a felon in possession of firearms and ammunition.
Evidence presented to the court showed that the York County Sheriff’s Department was notified by an online gun distributor after Moon, a felon, had attempted to sell a SKS rifle online. That, coupled with information that Moon was selling firearms from his residence in Rock Hill, led the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the York County Multi-Jurisdictional Drug Enforcement Unit to open an investigation. Two undercover buys of firearms were made from Moon at his residence in September 2016. During those undercover buys, Moon was seen with assault rifles, handguns, and shotguns. Thereafter, in October 2016, a federal search warrant was executed upon Moon’s residence, where agents recovered four rifles, a shotgun, two handguns, and hundreds of rounds of ammunition. Agents also recovered a handgun from Moon’s truck. Moon, a felon, admitted to buying and selling firearms for six years, both online and in person.
Moon is prohibited under federal law from possessing firearms and ammunition. His prior state convictions include: possession of cocaine (1988), driving under the influence 3rd offense (1996), criminal domestic violence (2002), disorderly conduct (2002), criminal domestic violence of a high and aggravated nature (2002), and accessory after the fact of murder (2004).
United States District Judge Mary Geiger Lewis of Columbia sentenced Moon to 24 months in federal prison, to be followed by a 2-year term of court-ordered supervision. There is no parole in the federal system. In light of Moon’s current medical condition, the court allowed Moon to delay his report date to federal prison until the fall.
The case was investigated by ATF and the York County Multi-Jurisdictional Drug Enforcement Unit. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
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Raleigh Business Owner Charged with Defrauding Protein Powder ConsumersRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that a federal grand jury has returned a 41-count Indictment, charging ABHISHEK KRISHNAN, owner of American Pure Whey, LLC, of mail fraud, introducing adulterated and misbranded foods into interstate commerce, and money laundering. The Indictment seeks forfeiture of approximately six million dollars and several Raleigh, North Carolina real properties.
According to the Indictment, American Pure Whey sold protein powders in bulk to other dietary supplement manufacturers and in retail quantities to the public. Other dietary supplement suppliers purchased American Pure Whey products, but packaged them with their own labels, similarly reflecting high protein and low carbohydrate content. The American Pure Whey products were manufactured and packaged in New Bern, North Carolina.
KRISHNAN promoted the products on the website, www.americanpurewhey.com, which claimed the company followed strict quality control standards to produce the highest quality protein powder. In a single 33 gram serving, the website represented that the protein powder products contained as high as 29 grams of protein and as low as 1.58 grams of carbohydrates. The labels affixed to the products manufactured by American Pure Whey also represented the high protein and low carbohydrate amounts.
The Indictment alleges, however, that contrary to the representations on American Pure Whey’s website and on the product labels, the protein powder products manufactured and sold by American Pure Whey contained markedly lower protein and significantly higher carbohydrate contents in order to fraudulently increase the companies’ profit margin. The Indictment further alleges that between August 2015 and December 2018, U.S. Food and Drug Administration (FDA) agents acting in an undercover capacity and posing as consumers made six purchases on American Pure Whey’s website of various types of protein powder products. FDA analysis for protein and carbohydrate contents revealed significantly less protein and substantially more carbohydrates per serving than represented on the respective labels. For example, the 100% Whey Protein Isolate, cake batter flavor, purchased in December 2018, contained only ten grams of protein when the label declared 29 grams per serving. Further, there was 27 grams of carbohydrates when the label represented just 1.58 grams per serving.
The Indictment also alleged that contrary to KRISHNAN’S statements about American Pure Whey’s strict quality control standards, APW lacked basic quality control procedures in the manufacturing, packaging and labeling of APW products. The Indictment further describes KRISHNAN and American Pure Whey’s past interactions with the United States Food and Drug Administration (FDA), which conducted three regulatory inspections of American Pure Whey’s facilities between September 2015 and July 2019. At the close of each inspection, the FDA observed and noted numerous deficiencies in American Pure Whey’s manufacturing processes and procedures, including repeated issues with APW’s master manufacturing and batch production records. In addition, the FDA sent a Warning Letter to KRISHNAN in May 2016, informing him that all of American Pure Whey’s protein powder products were adulterated because they were manufactured under conditions that did not conform to current good manufacturing practice, and at least one product was misbranded because FDA analysis revealed that the product contained less than half the amount of protein declared on the label. KRISHNAN repeatedly responded to the FDA stating that he would take corrective actions to address the deficiencies.
Mr. Higdon commented: “This case is about honesty and integrity when offering a product to the public. And those principles are critical when a manufacturer offers food and dietary products. The FDA and the Justice Department are committed to ensuring that the public knows what it is getting when it purchases products of this sort. And we are committed to prosecuting those who willfully ignore the law.”
“American consumers rely on the FDA to ensure that their foods, including dietary supplements, are safe, wholesome, and properly labeled. When criminals manufacture and sell adulterated and misbranded dietary supplements, they not only cheat consumers, but also place the U.S. public health at risk,” said Justin C. Fielder, Acting Special Agent in Charge, FDA Office of Criminal Investigations, Miami Field Office. “FDA remains fully committed to pursuing and bringing to justice those who ignore the law.”
Investigation of this case was conducted by the FDA, Office of Criminal Investigation, and the United States Department of Homeland Security. The prosecution is being handled by Assistant United States Attorney Susan B. Menzer and Special Assistant United States Attorney and FDA Associate General Counsel Shannon M. Singleton.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Panama National Charged with Possession of Fraudulent Immigration DocumentsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that FELIX ANTONIO SANCHEZ-GOMEZ, age 54, a citizen of the Republic of Panama, was charged on Thursday, August 8, 2019 in a one-count bill of information with possession of fraudulent immigration documents, in violation of 18 U.S.C. ' 1546(a).
According to the bill of information, FELIX ANTONIO SANCHEZ-GOMEZ possessed a counterfeit Permanent Resident card, in violation of 18 U.S.C. ' 1546(a).
If convicted, FELIX ANTONIO SANCHEZ-GOMEZ faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00; two years supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Palm Bay Woman Convicted of Production of Child PornographyRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Rose Beth Litzky (33, Palm Bay) guilty of conspiracy to produce child pornography, production of child pornography, and possession of child pornography, involving two female children. Both of the victims, toddlers at the time, were under Litzky’s care. Litzky faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison on the conspiracy and production counts, and up to 20 years’ imprisonment on the possession charge. In addition, Litzky must forfeit an iPhone that was used in furtherance of the offenses. A sentencing hearing is scheduled for October 15, 2019.
Litzky was indicted on September 26, 2018.
According to evidence presented at trial, on September 15, 2016, Litzky’s boyfriend, Roberto Oquendo, was the subject of a traffic stop. During the traffic stop, deputies from the Brevard County Sheriff’s Office received a tip that Oquendo was possibly in possession of child pornography. As a result, task force agents with the Federal Bureau of Investigation and Homeland Security Investigations interviewed Oquendo. Oquendo disclosed to the agents that he had used a cellphone to take pictures of the genital area of two young children under his custody for his sexual gratification.
Further investigation led to the seizure and search of several computers and cellphones from a place in Brevard County where Oquendo had hidden them. Through forensic analysis, investigators found that one of his cellphones contained deleted chats between Litzky and Oquendo where they had discussed taking sexually explicit images and videos of the two children. The forensic evidence revealed that between October 2014 and September 15, 2016, Litzky caused the two children to engage in sexually explicit conduct while chatting with Oquendo through a social media app that allowed Oquendo to see the children in the nude for his sexual gratification. Some of the images depict Litzky as she caused the children to engage in sexual conduct. At the time the images were produced, Oquendo resided in Virginia, and Litzky resided in Florida. Oquendo created hundreds of screenshots of the visual depictions and transported them to Brevard County, where they were found on his cellphone.
Agents interviewed Litzky about the sexual exploitation of the children and she admitted to producing hundreds of visual depictions of the children in the nude that she then sent to Oquendo via text messaging for his sexual gratification. Litzky’s iPhone was searched and found to contain child pornography.
In January 2019, Oquendo pleaded guilty to two counts of production of child pornography. He faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison on each count. His sentencing hearing is scheduled for August 26, 2019.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security, Homeland Security Investigations, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Owner of AMA, A Rockland Based Consumer Products Testing Company, Arrested for Fraud Scheme Involving Fabricated Test ResultsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Catherine A. Hermsen, Director of the United States Food and Drug Administration (“FDA”) Office of Criminal Investigations (“OCI”), William F. Sweeney, Jr., Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Kevin Gilleece, Acting Rockland County District Attorney, announced that GABRIEL LETIZIA, Jr., the owner and executive director of AMA Laboratories, Inc. (“AMA”), a consumer products testing company in New City, has been charged with wire fraud and conspiracy to commit wire fraud in connection with his participation in a scheme to defraud AMA’s customers by reporting false laboratory test results. Letizia was arrested this morning and was presented and arraigned this afternoon before Magistrate Judge Paul E. Davison in White Plains federal court. The case is assigned to U.S. District Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “AMA Laboratories, a consumer products testing company, tested consumer products for other companies that relied on AMA for genuine, accurate test results in order to safely bring their products to the consumer market. Unbeknownst to them, AMA’s owner, Gabriel Letizia, and others were engaged in a scheme to falsify those crucial test results by testing their products on far fewer panelists than they reported. Letizia and his co-defendants’ scheme not only cost the victim companies millions, they endangered the safety of thousands of consumers.”
Director, FDA Office of Criminal Investigations Catherine A. Hermsen said: “Honest reporting of product testing is vital for ensuring the safety of drugs and cosmetics for U.S. consumers. When companies and individuals engage in criminal activity that puts the public health at risk, FDA will work to investigate and bring them to justice.”
Acting Rockland County District Attorney Kevin Gilleece said: “As if enriching themselves through theft and fraud wasn't bad enough, the 30-year scheme perpetrated by these individuals may have had a deleterious impact on the health and wellness of countless victims. Letizia and his employees broke the law and violated the ethical duties owed to their customers and volunteers. The teamwork exhibited by all participating agencies throughout the joint investigation that began with the Rockland County District Attorney's Office was exemplary.”
According to the allegations contained in the Indictment that was unsealed today and statements made in court proceedings[1]:
AMA is a consumer products testing company in Rockland County, New York. LETIZIA is AMA’s owner and executive director. David Winne served as AMA’s technical director, Mayya Tatsene served as AMA’s clinical laboratory director, Patrycja Wojtowicz served as AMA’s associate director of clinical studies, and Kaitlyn Gold served as AMA’s supervising laboratory technician. AMA tested the safety and efficacy of cosmetics, sunscreens and other products on specified numbers of volunteer panelists for consumer products companies.
From 1987 through April 2017, LETIZIA and others at AMA defrauded AMA’s customers of tens of millions of dollars by testing products on materially lower numbers of panelists than the numbers specified and paid for by AMA’s customers. LETIZIA, and AMA employees acting under his direction, sent the customers fraudulent reports, which falsely represented to the customers that AMA had tested the products on the number of panelists specified by the customers. LETIZIA and AMA employees acting under his direction also made materially false and misleading statements about the results of the tests to AMA’s Customers.
LETIZIA, 69, of New City, New York, was charged in the Indictment with conspiracy to commit wire fraud and wire fraud. The charges each carry a maximum prison term of 20 years.
David Winne pled guilty on May 23, 2019, before United States Magistrate Judge Judith C. McCarthy, to one count of conspiracy to commit wire fraud and one count of wire fraud. The charges each carry a maximum prison term of 20 years.
Mayya Tatsene pled guilty on May 29, 2019, before United States Magistrate Judge Lisa Margaret Smith, to one count of conspiracy to commit wire fraud and one count of wire fraud. The charges each carry a maximum prison term of 20 years.
Patrycja Wojtowicz pled guilty on June 12, 2019, before United States Magistrate Judge Judith C. McCarthy, to one count of conspiracy to commit wire fraud and one count of wire fraud. The charges each carry a maximum prison term of 20 years.
Kaitlyn Gold pled guilty on June 24, 2019, before United States District Judge Cathy Seibel, to one count of conspiracy to commit wire fraud and one count of wire fraud. The charges each carry a maximum prison term of 20 years.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the investigative work of the U.S. Food and Drug Administration, Office of Criminal Investigations, the Federal Bureau of Investigation, and the Rockland County District Attorney’s Office.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman, James McMahon, and Olga Zverovich are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Ohio, West Virginia, and Pennsylvania residents indicted for drug conspiracy in Ohio ValleyRead the Press Release
WHEELING, WEST VIRGINIA – Eight people are facing charges of distributing heroin, cocaine, “crack” cocaine, and fentanyl after being indicted by a federal grand jury in Wheeling earlier this week, United States Attorney Bill Powell announced.
“Whether you live in another state or not, engaging in federal criminal conduct in the Northern District of West Virginia will get you prosecuted,” said Powell.
The 24-count indictment alleges heroin, cocaine, “crack” cocaine, and fentanyl distribution in Hancock County and elsewhere from February 2018 to July 2019. Those named in the indictment are:
• Robert Leon Sullivan, age 55, of Steubenville, Ohio
• Antonio Dewayne Brown, age 35, of Weirton, West Virginia
• Michael Bernard Barnett, age 43, of Steubenville, Ohio
• Ryan Thomas Savage, age 36, of Wintersville, Ohio
• Rolland Kwame Owens, age 29, of Steubenville, Ohio
• Rashaan Donell Mukes, age 33, of Steubenville, Ohio
• Shannon Terill Loveless, age 41, of Steubenville, Ohio
• Zjaondezel Solomyn Douglas, age 35, of Zelienople, Pennsylvania“The men and women of the DEA, working alongside our law enforcement partners, are committed to making communities like Weirton safer by getting rid of illegal drugs, and locking up those who traffic them,” said D. Christopher Evans, Special Agent in Charge of DEA’s Louisville Field Division, which oversees the agency’s operations in West Virginia, Kentucky, and Tennessee, Kentucky.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Oak Ridge, Tennessee Doctor and Boca Raton, Florida Pain Clinic Owner Sentenced for Oxycodone Trafficking ConspiracyRead the Press Release
LONDON, Ky. – Timothy Dennis Gowder, 72, of Oak Ridge, Tennessee, and Anwar Mithavayani, 56, of Boca Raton, Florida, were sentenced to lengthy terms in federal prison by United States District Judge Robert E. Wier for conspiring to distribute oxycodone and other drugs, and for money laundering. Gowder received a sentence of 21 years of imprisonment. Mithavayani received a sentence of 25 years of imprisonment.
Gowder was the medical director at the Tennessee Pain Institute (TPI), a pain clinic that operated from 2011 to 2016 near Chattanooga. Mithavayani was a co-owner of the clinic with Pete Tyndale. After a month-long trial earlier this year, a jury convicted Gowder, Mithavayani, and Tyndale of operating TPI as a pill mill, and for money laundering related to proceeds from TPI. The three men were responsible for the illicit distribution of more than 1.6 million oxycodone 30mg pills, and hundreds of thousands of other narcotic pills and sedative pills, such as Xanax. Approximately half of TPI’s pill customers were traveling from eastern Kentucky.
Under federal law, Gowder and Mithavayani each must serve 85 percent of his prison sentence. Upon release, both will be under the supervision of the United States Probation Office for three years. The Court also imposed a fine of $250,000 and a community restitution award of $200,000 upon Gowder. Mithavayani must pay a $500,000 fine and a $400,000 community restitution award.
Co-defendants Tyndale and James Bradley Combs will be sentenced later this month. Co-defendant Larry Karr of Keavy, KY, pled guilty to the drug trafficking charge in May of 2018, and was later sentenced to 108 months in prison.
“The sentences imposed reflect the seriousness of the harm caused by the defendants’ unlawful and medically unnecessary distribution of controlled substances,” said United States Attorney Robert M. Duncan, Jr. “The defendants’ callous actions undoubtedly contributed to the current opioid crisis. We remain resolute in our commitment to hold accountable drug traffickers who profit from addiction, including those who illegally deal drugs under the guise of medical care.”
U.S. Attorney Duncan, Special Agent in Charge D. Christopher Evans of the Drug Enforcement Administration’s Louisville Field Division, Special Agent in Charge Matthew Line of the Internal Revenue Service, Criminal Investigation Division, Andy Beshear, Kentucky Attorney General, and Richard W. Sanders, Commissioner of Kentucky State Police jointly announced the sentences.
The investigation was conducted by the DEA, the IRS, and the Kentucky Attorney’s General Office as part of an Organized Crime Drug Enforcement Task Force. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Gregory Rosenberg.
New Orleans Tax Preparer Pleads Guilty to Failing to Declare More Than $695,000 in Income on Tax ReturnRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that QUINCY E. IRVIN, age 41 of New Orleans, Louisiana pled guilty on Wednesday, August 7, 2019 to a one count Bill of Information for making false statements on an income tax return in violation of Title 26, United States Code, Section 7206.
In papers signed by the defendant and filed in open court, Irvin admitted to owning two tax preparation companies, Discount Tax Services and Quincy Irvin Tax Services. Irvin admitted to failing to declare a total of $696,060 in income for the tax years 2012, 2013, and 2014. The total tax loss to the government was $249,074 as a result of Irvin’s false statements.
IRVIN faces 3 years incarceration, a $250,000 fine, the cost of the investigation, as well as restitution to the IRS. Sentencing is set for November 13, 2019.
U.S. Attorney Strasser praised the work of the Internal Revenue Service Criminal Investigation Division for their thorough investigation. The case is being prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
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New Bill Seeks to Make over 500 Violent Criminals (Including Many Rapists and Murderers) Immediately Eligible for Early ReleaseRead the Press Release
WASHINGTON –The Second Look Act of 2019, which is pending before the Council of the District of Columbia, will give violent criminals (including rapists and murderers) an opportunity to reduce their sentences after only serving 15 years in prison and will expand eligibility to adults who committed their crimes before they turned 25-years-old. Approximately 583 violent criminals will be immediately eligible to apply for release.
On March 26, 2019, Councilmember Charles Allen, Chairperson of the Committee on the Judiciary and Public Safety, held a public hearing to consider Bill 23-0127, the “Second Look Amendment Act of 2019.” If passed, the proposed legislation will expand eligibility to adult offenders who committed violent offenses between the ages of 18 to 24-years-old. The proposed legislation will also allow a defendant to be released after serving only 15 years in prison, regardless of the original sentence imposed, if the court determines that the defendant is not a danger to the community or to any person, despite the “brutality or coldblooded” nature of the offense.
This proposed legislation is the third iteration of the Incarceration Reduction Amendment Act (IRAA). The first version was passed on April 4, 2017. It provided an avenue for sentence reduction consideration for 16 and17-year-olds tried and convicted as adults who served 20 years of their original sentence and had not yet become eligible for parole. The second version, passed May 10, 2019, shortened the number of years a defendant must serve from 20 to 15, allowed them to apply even if parole had been denied, and removed “the nature of the offense” from the factors that a judge must consider.
More than 70 defendants have filed motions for sentence reduction or are in the process of doing so. To date, approximately 17 motions have been ruled on and only one petition has been denied. Of the 16 motions granted, 12 cases involved murders, two cases involved rapes, one case involved armed robbery, and one case involved armed kidnapping. Bureau of Prisons data suggests that of the 583 eligible criminals who could apply for early release under the proposed Amendment, one in three will reoffend within three years of release.
The U.S. Attorney’s Office thoroughly reviews each motion and evaluates the defendant’s request for a sentence reduction knowing that this request will affect the victim, the victim’s family, and the community. Our role in this litigation is broad and we consider a range of interests, which includes the victim, the victim’s surviving family, the community at large, and the defendant.
The IRAA in its current form, which now eliminates the nature of offense from the judge’s consideration, strips victims of their sense of finality, and upends decades of local and national efforts to ensure truth in sentencing. The proposed legislation ignores how painful this process is for victims and will drastically increase the number of victims who must be re-traumatized by expanding the age of eligible defendants.
“Our communities are safer when we do a better job of rehabilitating offenders in our custody,” said U.S. Attorney Jessie K. Liu. “The Council should not hastily pass this legislation but should instead gather data about how defendants released under the current version of the IRAA fare over time. The victims of these crimes and the community at large should not be jeopardized by the Council’s rush to expand the IRAA. The proposed legislation misses the mark.”
The U.S. Attorney’s Office is a national leader in criminal rehabilitation for non-violent offenders, and has nine diversion programs including one focused on restorative justice. These programs are geared towards rehabilitation.
The proposed legislation before the D.C. Council, helps violent offenders, with little or no benefit to non-violent offenders, and is unlike other criminal justice reform initiatives nationwide, including the federal First Step Act. This proposed legislation is not evidence-based, does little to protect the rights of victims and comes at a time when the homicide rate in the District has increased significantly.
The U.S. Attorney’s Office is committed to sensible criminal justice reforms that protect the rights of victims, ensure the safety of the community, and fairly consider the interests of defendants. Public Safety is our top concern.
For more information about the proposed changes, contact Councilmember Charles Allen at (202) 724-8072 or at [email protected].
Myrtle Beach Man Sentenced to 20 Years in Federal Prison for Selling "Speedball" That Caused Overdose DeathRead the Press Release
Florence, South Carolina --- United States Attorney Sherri A. Lydon announced today that James Latron Sumter, a/k/a “T”, age 35, of Myrtle Beach, was sentenced to 20 years in federal prison after pleading guilty to conspiring to distribute a quantity of cocaine and heroin, the use of which resulted in serious bodily injury or death. Chief United States District Judge R. Bryan Harwell of Florence accepted Sumter’s plea and imposed the sentence.
“The United States Attorney’s Office is locking arms with our state and local partners in the fight to end the opioid epidemic in our state,” said U.S. Attorney Lydon. “Locally, we are assisting our partners in Myrtle Beach and Horry County by working hand-in-hand with their narcotics and homicide detectives to identify, investigate, and prosecute those who deal these deadly drugs. Together, we are holding accountable the men and women introducing this poison into the Grand Strand and across South Carolina.”
At the change of plea and sentencing hearings, Assistant United States Attorney Everett McMillian presented evidence that reflects Sumter was contacted on December 29, 2017, by co-conspirator Charles Rayford Hunt, Jr., who was seeking to purchase what is commonly called a “speedball”—a potent combination of cocaine and heroin—for $100 for a female acquaintance of Hunt’s. Hunt met the female while working as an Uber driver and had a short-lived romantic relationship with her for two days prior to this incident. As reflected in text messages between Hunt and Sumter and statements from witnesses, Hunt drove the female victim to an apartment where Sumter provided the drugs sometime after 9:00 pm. Hunt then drove the victim to his apartment where she snorted the drugs and immediately thereafter showed signs of an overdose. Upon seeing her reaction, Hunt contacted Sumter and returned to pick him up. Not wanting to take the overdosing victim home to her father with whom she lived, Hunt and Sumter drove around and eventually stopped at Magoo’s Sports & Spirits to play pool sometime after midnight—leaving the overdosing victim passed out in the back seat of the car. After playing pool, Hunt took Sumter back to the apartment complex and drove around the Myrtle Beach area with the victim still passed out in the back seat of his car. Eventually, Hunt realized the victim had quit breathing at which time he “panicked” and dumped her body in a wooded area just across the North Carolina border during the early morning hours of December 30. Hunt then drove back to Myrtle Beach, throwing the victim’s cell phone into the intercostal waterway on the way back. He took the victim’s purse and belongings to another conspirator, Jose Anthony Ortiz, Jr., who destroyed many of the victim’s personal items in a burn pit at Hunt’s request.
On December 31, Special Agents with the Federal Bureau of Investigation and Drug Enforcement Administration learned of the incident. Working together, the FBI and DEA quickly collaborated with detectives from the Horry County Police Department and Columbus County Sheriff’s Office in North Carolina to unravel the scheme. Hunt was located, promptly confessed his role in the event, and led officials to the victim’s body. An autopsy and toxicology report later confirmed the victim died as a result of a heroin and cocaine overdose. Further investigation uncovered that Sumter had conspired with several other individuals in the Myrtle Beach area during 2017 to distribute cocaine and heroin on other occasions. The evidence reflects that another overdose in January 2017 may also be attributable to heroin Sumter provided. This second victim was revived by first responders using Narcan, and he has since reportedly recovered from his addiction.
Hunt and Ortiz were prosecuted for their roles in covering up the overdose. Both men pleaded guilty and are currently serving sentences in federal prison. Sumter has been in custody since he was arrested on this charge in August 2018.
This case is the result of a concentrated effort to disrupt and dismantle the flow of deadly opioids into the Myrtle Beach area. By partnering with local, state, and federal law enforcement partners, the United States Attorney’s Office will continue to aggressively prosecute those who deal in illegal narcotics, especially those individuals who distribute opioids that cause serious bodily injury or death to others.
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Montgomery Woman Sentenced to 72 Months for Filing False Tax ReturnsRead the Press Release
Montgomery, Alabama – On Thursday, August 8, 2019, a Montgomery woman, Laquanda Gilmore Garrott, 39, was sentenced to 72 months in prison for filing false federal tax returns, announced United States Attorney Louis V. Franklin, Sr., and Special Agent in Charge Thomas J. Holloman, III of the Internal Revenue Service’s Criminal Investigation Division, Atlanta Field Office. In addition to the six-year prison sentence, she was also ordered to pay $56,897.00 in restitution. There is no parole in the federal system.
The evidence presented at trial showed that, from 2011 through 2015, Garrott operated a tax preparation business called L&G Associates, LLC, in Montgomery. The government proved that Garrott knowingly put false information on multiple tax returns in order to increase refunds for clients, which also increased her own tax preparation fees. In one case, Garrott falsely claimed that a client lost more than $30,000 on a lawn care company even though she knew her client had no such business. By including the false business losses, Garrott was able to offset the client’s taxable income and make the client eligible for the Earned Income Tax Credit.
“Ms. Garrott stole money from the federal treasury when she filed false federal income tax returns, a crime that affects all of us,” noted United States Attorney Franklin. “Her significant sentence of imprisonment was appropriate and should act as a deterrent to any tax preparers who puts their own gain above their legal obligations.”
“Tax return preparer clients look to them for expertise and guidance. It is the tax return preparers’ obligation to faithfully and accurately prepare a return on behalf of their clients” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “Tax return preparers who purposely prepare false tax returns to get high refunds are stealing directly from American taxpayers and today’s sentencing shows IRS-CI, in concert with the Department of Justice, is committed to aggressively pursuing unscrupulous tax professionals that prey on the public.”
The case was investigated by the Internal Revenue Service’s Criminal Investigation Division. Assistant United States Attorneys Jonathan S. Ross and Alice S. LaCour prosecuted the case.
Montana Woman Sentenced for Wire Fraud and Tax EvasionRead the Press Release
United States Attorney Ron Parsons announced that a Kalispell, Montana, woman convicted of Tax Evasion and four counts of Wire Fraud was sentenced on August 7, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Judy Lynn Carroll, age 60, was sentenced to 7 years in federal prison, to be followed by 3 years of supervised release on the Wire Fraud charges. Carroll was also ordered to pay a total of $1,240,236.01 in restitution to several victims and a $400 special assessment to the Federal Crime Victims Fund.
The Wire Fraud charges relate to a scheme devised by Carroll to obtain money from others for her own benefit. As part of the scheme, Carroll falsely told others the Internal Revenue Service (IRS) had seized her financial account that contained several million dollars. Carroll knew the IRS had not seized her financial account and that she did not have any account that had millions of dollars. Carroll then convinced several individuals, including a resident of South Dakota, to send her hundreds of thousands of dollars between 2000 and 2016.
Carroll was also sentenced to 7 years in federal prison, to be followed by 3 years of supervised release, and ordered to pay $310,078.00 in restitution to the IRS and a $100 special assessment to the Federal Crime Victims Fund on the Tax Evasion charge, with the prison time to run concurrently with the Wire Fraud convictions.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Minnesota Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Minneapolis, Minnesota, man has been indicted by a federal grand jury for Production of Child Pornography and Receipt of Child Pornography.
Nicolas Edward Wilson, age 34, was indicted on July 9, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 5, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 30, 2014, Wilson knowingly enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, knowing such depiction would be transported in interstate or foreign commerce by computer.
The Indictment also alleges that on or about between September 23, 2012, and April 4, 2015, Wilson knowingly received and distributed, and attempted to receive and distribute, any child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
The charges are merely accusations and Wilson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Wilson was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for October 15, 2019.
Michigan man guilty of drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terrence D. Marsh, of Detroit, Michigan, was found guilty of drug distribution and firearms charges, United States Attorney Bill Powell announced.
After a four-day trial, a jury deliberated for 35 minutes before finding Marsh, age 37, guilty of one count of “Conspiracy to Possess With the Intent to Distribute and Distribute Controlled Substances,” one count of “Aiding and Abetting Possession With the Intent to Distribute Methamphetamine within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Heroin within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Fentanyl within 1000 Feet of a Protected Location,” and one count of “Aiding and Abetting Possession of Firearm in Furtherance of Drug Trafficking Crime.”
“Great perseverance by our trial team and law enforcement partners led to this conviction. We will continue to prosecute these cases aggressively. The type of criminal conduct exhibited by the defendant will never be tolerated,” said Powell.
Marsh conspired with others to distribute heroin, fentanyl, and more than 500 grams of methamphetamine in Marion County and elsewhere from the fall of 2018 to January 2019. Some of the drug dealing took place near West Fairmont Middle School, and included the presence of firearms.
The government is seeking the forfeiture of $18,540 in cash, two pistols, a rifle, and several rounds of ammunition.
Marsh faces not less than 10 years and up to life incarceration and a fine of up to $10 million for the conspiracy and aiding and possession of methamphetamine count. He faces up to 40 years incarceration and a fine of up to $2 million for each of the heroin and fentanyl counts, and faces five years to life incarceration and a $250,000 fine for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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. Attorneys Traci M. Cook and Brandon S. Flower are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Three Rivers Drug and Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mexican National Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that ROBERTO MUNOZ-AGUILAR, age 32 was sentenced Wednesday, August 7. 2019 on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a). He pled guilty on June 20, 2019. He was sentenced to time served.
In documents signed by the defendant in open court, he admitted to being an illegal alien who had previously been deported January 3, 2012 from Calexico, California. He admitted to illegally re-entering the United States without permission from the proper authorities. He has been incarcerated since May 2019 and faces deportation once again.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
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Mexican Man Sentenced for Illegal Use of a Social Security Number and Submitting False Information in an Attempt to Secure a U.S. PassportRead the Press Release
NEW ORLEANS, LOUISIANA – FRANCISCO JAVIER NUNEZ-ALEMAN, age 32, a citizen of Mexico was sentenced Wednesday, August 7, 2019 on a two-count indictment for illegal use of a Social Security number in violation of Title 42, United States Code, Section 408(a)(7)(B), and with using a false social security number in attempting to secure a U.S. Passport, a violation of Title 18, United States Code, Section 1542. He pled guilty on April 3, 2019.
NUNEZ-ALEMAN faced a maximum term of imprisonment of not more than five (5) years, a fine of $250,000.00, and a mandatory special assessment of $100.00 on both counts. Additionally, NUNEZ-ALEMAN is subject to a period of supervised release after imprisonment of up to three years. He was sentenced to time served. He has been incarcerated since November 2018.
The indictment further alleged that NUNEZ-ALEMAN applied for a U.S. Passport at the Bourg, La. Post Office. The State Department determined that the Social Security number he used belonged to another individual. NUNEZ-ALEMAN further used the fraudulently obtained social security number in applying for a job at a Houma, La. employer.
U.S. Attorney Peter G. Strasser praised the work of the United States Department of Homeland Security and the U.S. State Department Diplomatic Security Service in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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McKees Rocks Man Pleads Guilty to Possessing Heroin and FentanylRead the Press Release
PITTSBURGH, Pa. - A former resident of McKees Rocks, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to distribute heroin and fentanyl, United States Attorney Scott W. Brady announced today.
Jamorr Mathis, age 40, pleaded guilty to one count before United States District Court Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that, on November 16, 2017, FBI agents and other law enforcement officers executed a search warrant at Mathis’ residence in McKees Rocks. Agents recovered several bricks and bundles of heroin and fentanyl from a candle jar and a purse located inside of the residence. Mathis admitted that he sold about a brick or two a day and, he also admitted to buying about seven bricks every couple of days for $150 per brick.
Judge Bissoon scheduled sentencing for December 4, 2019. The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Mathis remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Stowe Township Police, McKees Rocks Police and Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Mathis.
Marion County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Marcus Devaughn Coleman, of Fairmont, West Virginia, was sentenced today to 46 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Coleman, age 35, pled guilty to one count of “Unlawful Possession of a Firearm” in April 2019. Coleman, who is prohibited from having a firearm, admitted to having 9mm pistol in March 2018 in Marion 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 Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marion County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Man Pleads Guilty to Delivering 11 Kilos of Drugs to VirginiaRead the Press Release
NEWPORT NEWS, Va. – A California man pleaded guilty today to conspiracy to distribute and possess with intent to distribute heroin.
According to court documents, Adrian Barraza-Pena, 27, of Riverside, was given a recreational vehicle in Riverside and was instructed to accompany another man to Memphis, in that recreational vehicle. On May 12, Barraza-Pena and the other man arrived in Memphis. Two days later, Barraza-Pena and the other man were instructed to start driving towards Virginia to meet a third man at a certain parking lot in South Hill. At this meeting, the man accompanying Barraza-Pena made contact with the third man and gave him a bag, which contained 8.54 kilograms of heroin and 3 kilograms of cocaine.
Barraza-Pena pleaded guilty to conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and faces a mandatory minimum of 10 years in prison and a maximum of life when sentenced on November 20. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorneys Amy E. Cross, Peter G. Osyf, and Kevin P. Hudson 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. 4:19-cr-47.
MS-13 Gang Member Sentenced in Connection with AssaultRead the Press Release
ALEXANDRIA, Va. – An MS-13 gang member was sentenced today to more than five and a half years in prison for his leadership role and participation in a violent gang-related assault of a victim with multiple baseball bats.
“The hallmark of MS-13 is extreme violence,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The sole purpose of this brutal and senseless assault was to instill fear in communities here in Northern Virginia and dissuade cooperation with law enforcement. Our investigation and prosecution of this case should send a clear message that the violent acts of MS-13 in our community will be prosecuted at every opportunity.”
According to court documents, in October 2018, Jose Ochoa Del-Cid, 21, of Falls Church, an admitted MS-13 gang member, conspired with several other members and associates of MS-13 to lure the victim to James Lee Park, in Falls Church, so that they could assault the victim. Del-Cid and other members and associates of MS-13 believed the victim was cooperating with law enforcement, falsely representing himself as a member of MS-13, and disparaging the local Silvas clique of MS-13. After luring the victim to the park under false pretenses, Del-Cid and approximately a dozen other members and associates of MS-13 beat the victim with bats, fists, and feet for approximately three minutes. As a result of the beating, the victim suffered multiple broken limbs and was hospitalized for several days.
“The FBI Washington Field Office remains aggressive in investigating and dismantling gang activity, to ultimately bring justice to the victims of the horrific violence of MS-13,” said Timothy Dunham, Special Agent in Charge of the Criminal Division, FBI Washington Field Office. “Our goal is take these violent offenders off the street, which should send a message to others that this violence will not be tolerated in our community.”
This matter was investigated by the FBI WFO’s Safe Streets/HIDTA Task Force – Northern Virginia which is composed of FBI Agents along with Task Force Officers from the Fairfax County Police, the Prince William County Police, the Loudoun County Sheriff’s Office, Leesburg Police Department, the Alexandria City Police, Fairfax City Police, Vienna Police Department, Herndon Police Department, and the Fauquier County Sheriff’s Office, along with Agents from the Department of Homeland Security, Homeland Security Investigations and ATF. The mission of this task force is to identify, investigate, disrupt and dismantle the most egregious and violent gangs operating in the Capital Region to include members of MS-13, a transnational street gang, known for its acts of violence.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Nicholas U. Murphy II and Morris Parker prosecuted 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-88.