Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 8 August 2019
Justice Department Settles Sexual Harassment Lawsuit Against New York Property OwnerRead the Press Release
The Department of Justice today announced that Douglas S. Waterbury and his co-defendants will be obligated to pay $850,000 in damages and civil penalties to resolve two Fair Housing Act lawsuits alleging that Waterbury sexually harassed numerous female tenants and prospective tenants for nearly three decades at properties he owned in and around Oswego, New York. The Department filed one of the lawsuits and a group of private plaintiffs brought the other.
Under the Consent Decree in United States of America v. Douglas S. Waterbury, et al., which still must be approved by the U.S. District Court for the Northern District of New York, Defendants have agreed to pay a total of $450,000, which includes $400,000 in monetary damages to former tenants and potential tenants who were harmed as a result of the sexual harassment, as well as a $50,000 civil penalty. Additionally, the Defendants will pay $400,000 to compensate nine plaintiffs in the related private suit. The Consent Decree also bars Douglas Waterbury from participating in the rental or management of residential properties.
“The sexual harassment of the vulnerable female applicants and tenants in this case by their landlord is an egregious and intolerable violation of federal civil rights law,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to pursue any depraved landlords and others who prey upon vulnerable women.”
“No woman should have to endure harassment and discrimination to obtain housing,” said Grant C. Jaquith, United States Attorney for the Northern District of New York. “Landlords who sexually harass their tenants in our district will be held accountable under the Fair Housing Act.”
The Department’s complaint, filed in 2018, alleged that Douglas Waterbury, his business partner, and two related entities operated an extensive real estate business involving more than 50 residential rental properties in and around Oswego, New York. The lawsuit further alleged that Douglas Waterbury subjected former tenants and potential tenants of these homes to sexual harassment, including unwanted sexual intercourse, sexual advances and comments, groping or other touching of their bodies without consent, and offers to reduce or eliminate security deposits and rent in exchange for sexual contact. The complaint further alleged that Waterbury took or threatened to take adverse action against residents when they refused or objected to his advances.
In October 2017, the Justice Department launched an initiative to combat sexual harassment in housing. In April 2018, the Department of Justice announced the nationwide rollout of the initiative, including three major components: an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the launch of a national Public Service Announcement, and a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing.
Since launching the initiative, the Department of Justice has filed 10 lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 15 sexual harassment cases since January 2017, and has recovered over $2.6 million for victims of sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Justice Department Settles Lawsuit Against Warren County North Carolina Board of Education to Enforce the Employment Rights of United States Army ReservistRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with the Warren County, North Carolina, Board of Education (Warren County) that resolves a federal lawsuit brought under the Uniformed Services Employment and Reemployment Rights Act (USERRA) on behalf of Dwayne Coffer, a Command Sergeant Major (CSM) in the Army Reserve. In its complaint, the United States alleged that Warren County violated USERRA by eliminating Sergeant Major Coffer’s employment position while he was on active duty with the military and failed to re-employ him in a comparable position when he returned.
Under the terms of the settlement agreement, Warren County will reinstate Coffer to the position of Dean of Students at Warren County Middle School, and provide him with back pay and pension benefits. The reinstatement position is the one that Coffer held before his period of active duty with the Army.
“Command Sergeant Major Coffer was called upon to leave his civilian employment and serve our nation, and we are grateful for his service,” said Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division. “This settlement agreement with Warren County Resolves the USERRA claims brought by the United States and serves as a reminder that our servicemembers, like CSM Coffer, deserve fair and lawful reemployment following their returns from active military duty.”
“Members of our Reserves, like Command Sergeant Dewayne Coffer, are often called away from their civilian jobs in order to provide the security our nation depends on,” said United States Attorney Robert J. Higdon of the Eastern District of North Carolina. “These citizen servicemembers should never face losing their jobs or be forced to accept an inferior position when they answer that call. The Uniformed Services Employment and Reemployment Rights Act protects these brave men and women, and, as this lawsuit demonstrated, the Department of Justice is committed to enforcing it when it is violated.”
USERRA safeguards the rights of uniformed servicemembers to return to their civilian employment following absences due to military service obligations and protect servicemembers from discrimination on the basis of their military obligations. This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service (VETS). After resolution failed, VETS referred the complaint to the Department of Justice’s Civil Rights Division. This lawsuit was handled by Deborah Birnbaum and Brian McEntire in the Employment Litigation Section of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael G. James in the U.S. Attorney’s Office for the Eastern District of North Carolina.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and https://www.justice.gov/servicemembers, as well as on the Department of Labor’s website at https://www.dol.gov/agencies/vets/programs/userra.
Justice Department Settles Lawsuit Against Warren County (North Carolina) Board of Education Brought to Enforce the Employment Rights of United States Army ReservistRead the Press Release
WASHINGTON – The Department of Justice announced today that it has reached a settlement agreement with the Warren County, North Carolina, Board of Education (Warren County) that resolves a federal lawsuit brought under the Uniformed Services Employment and Reemployment Rights Act (USERRA) on behalf of Dwayne Coffer, a Command Sergeant Major (CSM) in the Army Reserve. In its complaint, the United States alleged that Warren County violated USERRA by eliminating Sergeant Major Coffer’s employment position while he was on active duty with the military and failed to re-employ him in a comparable position when he returned.
Under the terms of the settlement agreement (attached), Warren County will reinstate Coffer to the position of Dean of Students at Warren County Middle School, and provide him with back pay and pension benefits. The reinstatement position is the one that Coffer held before his period of active duty with the Army.
“Command Sergeant Major Coffer was called upon to leave his civilian employment and serve our nation, and we are grateful for his service,” said Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division. “This settlement agreement with Warren County Resolves the USERRA claims brought by the United States and serves as a reminder that our servicemembers, like CSM Coffer, deserve fair and lawful reemployment following their returns from active military duty.”
“Members of our Reserves, like Command Sergeant Dewayne Coffer, are often called away from their civilian jobs in order to provide the security our nation depends on,” said United States Attorney Robert J. Higdon of the Eastern District of North Carolina. “These citizen servicemembers should never face losing their jobs or be forced to accept an inferior position when they answer that call. The Uniformed Services Employment and Reemployment Rights Act protects these brave men and women, and, as this lawsuit demonstrated, the Department of Justice is committed to enforcing it when it is violated.”
USERRA safeguards the rights of uniformed servicemembers to return to their civilian employment following absences due to military service obligations and protect servicemembers from discrimination on the basis of their military obligations. This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service (VETS). After resolution failed, VETS referred the complaint to the Department of Justice’s Civil Rights Division. This lawsuit was handled by Deborah Birnbaum and Brian McEntire in the Employment Litigation Section of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael G. James in the U.S. Attorney’s Office for the Eastern District of North Carolina.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and https://www.justice.gov/servicemembers, as well as on the Department of Labor’s website at https://www.dol.gov/agencies/vets/programs/userra.
Justice Department Launches National Public Safety Partnership with Baton Rouge Police DepartmentRead the Press Release
BATON ROUGE, LA - Today, officials from the Department of Justice's Bureau of Justice Assistance, the United States Attorney's Office, Middle District of Louisiana, the Baton Rouge Police Department, and many other local, state and federal partners, convened in Baton Rouge, LA to initiate the National Public Safety Partnership (PSP) program. This Justice Department program is a three-year engagement that seeks to leverage department assets in support of a local jurisdiction’s commitment to drive down violent crime.
On June 3, 2019, Attorney General William Barr announced the selection of the Baton Rouge Police Department as one of ten FY 2019 PSP sites where the Justice Department will work collaboratively to provide training and technical assistance in areas such as crime analytics, emerging technology and community engagement.
Since 2017, the Justice Department has directed nearly $14.9 million in customized training and technical assistance to help build crime fighting capacity in PSP sites, including $6.6 million to support the FY 2019 sites through FY 2022. PSP seeks to bring law enforcement stakeholders together to work collaboratively in reducing violent crime attributed to felonious firearm use, drug trafficking and human trafficking.
“Today our team is on-site in Baton Rouge to collaborate with local law enforcement officials in their mission to improve public safety and drive down violent crime,” said Jon Adler, Director of the Bureau of Justice Assistance. "Through the Public Safety Partnership, we are committed to fulfilling the Attorney General's priority of supporting local law enforcement combat violent gangs, felonious firearms use and drug trafficking," added Adler.
U.S. Attorney Brandon J. Fremin stated, “I am extraordinarily grateful to Attorney General Barr for selecting Baton Rouge as a Public Safety Partnership site and for his willingness to supplement and support our local violent crime efforts with additional resources and training. Along with our state and local partners we will continue our collaboration to combat violent crime in our communities and will work tirelessly to achieve our goal of reducing violent crime in the district.”
Baton Rouge Police Chief Murphy Paul stated, "We look forward to our continued partnership with the US Department of Justice. The technical assistance and training our department will receive from DOJ experts will strengthen our ability to address violent crime in the city of Baton Rouge. As an agency, BRPD is committed to using innovative ways to improve public safety in our community."
Since 2017, the Justice Department has worked with more than 30 local jurisdictions under the nationwide PSP program. Many participating cities have already seen dramatic reductions in violent crime. New Orleans ended 2018 with 146 murders, the lowest number of murders since the early 1970s. In Milwaukee, homicides declined in 2018 for a third straight year after hitting a deadly peak in 2015.
Other agencies in attendance at this meeting included the Office of Justice Programs; East Baton Rouge Sheriff’s Office; East Baton Rouge District Attorney’s Office; Office of the Mayor-President; U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Drug Enforcement Administration; Federal Bureau of Investigation; U.S. Marshals Service; United States Secret Service; Internal Revenue Service; U.S. Customs and Border Protection; U.S. Department of Health and Human Services; Louisiana Attorney General’s Office; Louisiana Department of Justice; Louisiana Office of Alcohol Beverage Control; Zachary Police Department; Baker Police Department; and Southern University Police Department.
For more information about PSP, visit https://www.nationalpublicsafetypartnership.org.
Jury Convicts Hampton Duo for Cocaine DistributionRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Hampton man and woman yesterday on charges of cocaine distribution.
According to court records and evidence presented at trial, Marcus Troy Moody, 30, and Latoya Patrice Carter, 29, were stopped by Newport News police in December 2018 after committing multiple traffic infractions. A subsequent lawful search of Moody, Carter, and their vehicle yielded two loaded semi-automatic handguns, including one with an extended magazine; an additional loaded magazine; a digital scale with narcotics residue; narcotics packaging material; approximately 80 grams of cocaine; and approximately $4,000 in cash.
Moody and Carter face a mandatory minimum of 10 years and a maximum of life in prison when sentenced on November 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Steve R. Drew, Chief of Newport News Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the verdict. Assistant U.S. Attorney Peter G. Osyf and Special Assistant U.S. Attorney Kristen Taylor 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. 4:19-cr-51.
Jefferson County man admits to cocaine chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joroy Nigel Twyman, of Ranson, West Virginia, has admitted to distributing cocaine base, United States Attorney Bill Powell announced.
Twyman, age 40, pled guilty to one count of “Possess with Intent to Distribute Cocaine Base.” Twyman admitted to distributing cocaine base in April 2017 in Jefferson County.
Twyman faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Illegal possession of firearm sends Billings man to prison for 10 yearsRead the Press Release
BILLINGS—A Billings man who admitted illegally having a firearm that he discharged during a fight, sending a bullet through the brim of a person’s hat, was sentenced today to the statutory maximum of 10 years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Gary Duane Ervin, 51, pleaded guilty in April to being a prohibited person in possession a firearm.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court records that on Oct. 28, 2018, Billings Police officers responded to a weapons complaint at a residence and found Ervin and two other individuals. During an altercation between Ervin and one of the individuals, Ervin pointed a firearm in the air and fired, sending a round into the brim of the person’s hat. The firearm was .38-caliber revolver that had been reported stolen, and it had an obliterated serial number. Ervin was prohibited from possessing firearms because of a prior felony conviction.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Honduran Man Sentenced for Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that BAYRON MARTINEZ-RODRIGUEZ, age 28, a native of Honduras, was sentenced on Wednesday, August 7, 2019 after previously pleading guilty to illegally using a Social Security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
United States District Court Judge Martin L.C. Feldman sentenced MARTINEZ-RODRIGUEZ to time served (2 months of imprisonment), followed by 1 year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, on June 14, 2019, MARTINEZ-RODRIGUEZ submitted a fraudulent Form I-9 application in order to obtain employment with a local company. He attested on the form that he was someone else. He used a fraudulent Social Security card in the name of the other person which also contained that person’s actual Social Security number as verification. In order to finalize employment with that company, he was required to take a safety course at another location on June 18, 2019. He once again provided the fraudulent Social Security card as proof of his identity, but an employee suspected the card was fraudulent and alerted Customs and Border Protection. Subsequent record checks confirmed his real identity.
U.S. Attorney Strasser praised the work of United States Customs and Border Protection agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
* * *
Hartford Man Pleads Guilty to Possessing a Loaded FirearmRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CLETUS JONES, 39, of Hartford, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession of a firearm and ammunition by a felon.
According to court documents and statements made in court, on January 23, 2018, Hartford Police officers responded to a two-car motor vehicle accident near Elizabeth Park. At the scene, officers learned that Jones had gone into the park and placed something near a tree. A search of the area uncovered a loaded Taurus .38 semi-automatic handgun. Subsequently, Jones’ DNA profile was found on the gun.
Jones’ criminal history includes felony convictions for possession of narcotics, failure to appear in the first degree, robbery in the first degree and carjacking.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
When he is sentenced, Jones faces a maximum term of imprisonment of 10 years. A sentencing date has not been scheduled.
Jones has been detained since his arrest on August 8, 2018.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson and Law Student Intern Owen R. Eagan.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Grand Jury Indicts Steven Wiggins on Federal Charges Relating to Death of Dickson County Sheriff’s DeputyRead the Press Release
NASHVILLE, Tenn. – August 8, 2019 – A federal grand jury sitting in Nashville yesterday, returned a four-count indictment charging Steven J. Wiggins, 32, of Dickson, Tennessee with federal carjacking and firearms violations which resulted in the death of Dickson County Sheriff’s Sergeant Daniel Baker. U.S. Attorney Don Cochran immediately filed a notice with the Court that the government intends to seek the death penalty.
After a thorough review by the Department of Justice, Attorney General William P. Barr recently granted authority to seek the death penalty in this case.
According to the indictment and court records, on May 30, 2018, Sergeant Baker encountered Wiggins after responding to a suspicious vehicle call in Dickson County. Sergeant Baker subsequently determined that the vehicle Wiggins was occupying was stolen and ordered Wiggins and his passenger out of the car. Wiggins then fired several rounds at Baker from a .45 caliber handgun. As the wounded deputy lay on the ground, Wiggins fired several more rounds, killing Baker. The indictment also alleges that after shooting Sergeant Baker, Wiggins dragged his body to his patrol car and placed him in the rear seat. Wiggins then drove the patrol car several miles, parked it and set fire to the car.
Wiggins will make an initial appearance before a U.S. Magistrate Judge at a time yet to be determined. He is presumed innocent until proven guilty in a court of law.
Agencies involved in the search and capture of Wiggins and the subsequent investigation include the Dickson County Sheriff’s Department; the 23rd District Attorney General’s Office; the Tennessee Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Tennessee Highway Patrol; the FBI; and numerous other local, state and federal agencies. U.S. Attorney Don Cochran and Assistant U.S. Attorney Robert McGuire are prosecuting the case.
# # # # #
Franklin County Man Indicted for Charges of Attempted Enticement of a Minor and Soliciting Child PornographyRead the Press Release
St. Louis, MO – A federal grand jury returned an indictment charging Franklin County resident Patrick Estes, 57, with enticement of a minor (18 USC 2422(b)), solicitation of child pornography (18 USC 2252A(a)(3)(B)(ii)), and committing a felony involving a minor while a registered sex offender (18 USC 2260A). Estes has been taken into custody and ordered detained pending trial.
The defendant is a registered sex offender having been previously convicted by the State of Missouri for sexual offenses against minors.
As is always the case, charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Pursuant to our continuing effort to keep children safe, law enforcement is requesting that anyone with more information about this case or other possible victims please contact FBI Task Force Officer Det. Jacob Walk at the Franklin County Sheriff’s Office at 636-583-2567 or Investigator Donya Jackson with the U.S. Attorney’s Office at 314-539-2200.
Fort Wayne Man Convicted After 4-Day Jury TrialRead the Press Release
FORT WAYNE – Shawn Bacon, 39, of Fort Wayne, Indiana was convicted after a four-day jury trial before U.S. District Court Judge Holly Brady of two counts of possessing with intent to distribute controlled substances to include more than 500 grams of methamphetamine and more than 400 grams of fentanyl found in his house and more than 500 grams of a mixture or substance containing a detectable amount of methamphetamine found in his car, being a convicted felon in possession of a firearm, maintaining a drug involved premises, possessing a destructive device and a short barreled rifle not registered to him in the National Firearms Registration and Transfer Record, possessing body armor after having been convicted of a crime of violence, and possessing in furtherance of and carrying during and in relation to the drug trafficking offenses, firearms to include destructive devices, more particularly explosive bombs and a short barreled rifle, announced U.S. Attorney Kirsch.
According to the documents in this case, Bacon, was initially charge by way of a federal complaint, in December 2017 with multiple federal drug and firearm charges which resulted from a search warrant conducted on his residence and his vehicle. The execution of the search warrant resulted in the seizure of 22 firearms, some stolen, found in his car and residence, despite the fact that he had been convicted of at least 4 prior felony convictions. Bacon had many high capacity magazines, body armor, and various rounds of ammunition in this residence. There were destructive devices, more particularly pipe bombs, and a short barreled rifle in his possession that were not registered through the National Firearms Registration and Transfer Record. Bacon also had larger quantities of narcotics (methamphetamine, cocaine, heroin, fentanyl and marijuana) in his possession which were amounts consistent with distribution and not personal consumption. During the arrest process on the complaint, investigators photographed Bacon’s Aryan Brotherhood tattoos. As required under federal criminal procedures, Bacon was charged by way of an 8 count Superseding Indictment on July 10, 2019, on the gun, drug, and body armor charges on which he proceeded to trial.
This case is the result of the investigative efforts of the Bureau of Alcohol Tobacco Firearms and Explosives Fort Wayne Resident Office Agents, ATF Explosives Technology Branch, ATF Forensic Chemistry Laboratory, with the assistance of the Fort Wayne Police Department, Fort Wayne Police Department Vice and Narcotics Division, and the Indiana State Police. The case was prosecuted by Northern District of Indiana Assistant U.S. Attorney Lesly Miller-Lowery.
Former Sacramento Resident Sentenced to over 3 Years in Prison for Failure to Register as a Sex OffenderRead the Press Release
SACRAMENTO, Calif. — Tony Fernandez Barnes, 39, of Las Vegas, Nevada, was sentenced today by U.S. District Judge Morrison C. England Jr. to three years and one month in prison for failure to register as a sex offender, U.S. Attorney McGregor W. Scott announced.
According to court documents, Barnes had three prior Nevada state convictions for pandering of a minor, and failed to register as a sex offender upon his release in 2013. Between 2013 and 2018, Barnes lived in Sacramento and did not register as required under the Sex Offender Registration and Notification Act and Nevada and California law.
This case was the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorney Roger Yang prosecuted the case.
Former Rancho Cordova and Tracy Residents and Utah Resident Indicted for “Refund Fraud” SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 12-count indictment today against Johnathon Ward, 40, formerly of Tracy; Monica Nunes, 39, formerly of Rancho Cordova; and Talalima Toilolo, 44, of Salt Lake City, Utah, charging them with conspiracy to commit bank fraud and bank fraud, U.S. Attorney McGregor W. Scott announced. The indictment also charges Ward and Nunes with aggravated identity theft.
According to court documents, Ward, Nunes, and Toilolo conspired to defraud financial institutions using a scheme called “refund fraud” or “force post refund fraud.” This scheme exploited the refund process used by businesses and retail establishments to pay back customers for returns, reimbursements, and erroneous charges. The defendants posed as merchants and executed fraudulent debit or credit card refunds, which caused the unauthorized transfer of money from a merchant bank account to an account under the defendants’ control.
The defendants allegedly committed this scheme by stealing or purchasing point-of-sale (POS) terminals that are used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ banks to transfer funds to the defendants’ accounts. The defendants then drained the stolen funds from the accounts. The indictment alleges that this scheme caused at least $3.5 million in intended victim losses.
This case is the product of an investigation by the Regional Enforcement Allied Computer Team (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office, and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Ward and Nunes are in custody, and Toilolo was arrested yesterday in Salt Lake City, Utah, on a criminal complaint filed in this district.
If convicted, Ward, Nunes, and Toilolo face a maximum statutory penalty of 30 years in prison and a $1 million fine for each count of bank fraud and conspiracy to commit bank fraud. Additionally, if convicted of aggravated identity theft, Ward and Nunes face a mandatory two-year prison sentence, to be served consecutive to any other sentence, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Postal Workers Union Officer Admits EmbezzlementRead the Press Release
CAMDEN, N.J. – A former secretary-treasurer of a U.S. Postal Workers Union today admitted embezzling $34,500 of union funds, U.S. Attorney Craig Carpenito announced.
Robert Peter, 58, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an information charging him with one count of embezzling funds from the operating account of the Local 526 Postal Workers Union. Local 526 represents approximately 900 members who work in the clerk, maintenance, and motor vehicle crafts for the U.S. Postal Service in southern New Jersey.
Between May 1, 2018, and June 13, 2018, Peter issued eight checks to himself, totaling $22,500, by fraudulently utilizing the union president’s “signature stamp” to authorize the disbursement of members’ money. He also withdrew, without proper authorization, $12,000 in cash from the union’s account through ATM machines in Atlantic City.
The count of embezzlement carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain to the defendant or loss to the victim, whichever is greater. Sentencing is scheduled for Nov. 26, 2019.
U.S. Attorney Craig Carpenito credited the special agents of the Office of Labor Management Standards from the Philadelphia-Pittsburgh District Office, under the direction of District Director Kevin Kennedy, with the investigation leading to today’s guilty plea.
The government is represented by V. Grady O'Malley, Senior Litigation Counsel, of the U.S. Attorney's Office Organized Crime/Gangs Unit in Newark.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Former Personal Care Aide Pleads Guilty to Health Care FraudRead the Press Release
WASHINGTON – Mobolaji Tina Stewart, 58, of Laurel, Maryland, pled guilty today to a federal charge of health care fraud stemming from a scheme in which she caused the District of Columbia’s Medicaid program to be defrauded out of more than $500,000.
The announcement was made by U.S. Attorney Jessie K. Liu; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Charles A. Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C., and Daniel W. Lucas, District of Columbia Inspector General.
Stewart pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Stewart faces a likely range of 18 to 24 months in prison and a fine of up to $75,000. The plea agreement calls for Stewart to pay $534,073 in restitution and $302,414 in a forfeiture money judgment. The Honorable Senior Judge John D. Bates scheduled sentencing for October 24, 2019.
According to a statement of offense submitted to the Court, Stewart worked as a personal care aide for twelve home health agencies at various times between January 2014 and December 2018. The home health agencies employed Stewart to assist D.C. Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Stewart was supposed to document the care she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered.
Between January 2014 and November 2018, Stewart caused the D.C. Medicaid Program to issue payments totaling $534,073 for services that she did not render. As part of her fraud scheme, she submitted false timesheets to different home health agencies claiming that she provided 24 hours or more of personal care aide services. She also submitted false timesheets claiming to have provided personal care aide services while she was out of the country. She also submitted false timesheets claiming to have provided personal care aide services to a beneficiary while he was hospitalized. Stewart fraudulently earned more than $300,000 in wages as a result of the healthcare fraud scheme.
In announcing the plea, U.S. Attorney Liu, Assistant Attorney General Benczkowski, Acting Special Agent in Charge Dayoub, Special Agent in Charge Dixon of U.S. HHS-OIG, and District of Columbia Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services Office of Inspector General, and the District of Columbia Office of Inspector General. They also expressed appreciation for the work of Paralegal Specialist Brittany Phillips and former Paralegal Specialist Robert Fishman. Finally, they commended the work of Assistant U.S. Attorney Kondi Kleinman and Trial Attorney Amy Markopoulos, who are prosecuting the case.
Former Doctor Pleads Guilty to Federal Criminal Charges for Illegally Selling Painkillers for Cash at His High Desert Medical ClinicRead the Press Release
LOS ANGELES – An ex-physician pleaded guilty today to federal criminal charges for illegally prescribing and distributing the semi-synthetic opioid painkiller oxycodone to undercover operatives who visited his Victorville medical office.
Wendell Mark Street, 67, of Las Vegas, pleaded guilty to two felony counts of illegally prescribing oxycodone to patients without a legitimate medical purpose. United States District Judge George H. Wu has scheduled a December 9 sentencing hearing, at which time Street will face a statutory maximum sentence of 40 years in federal prison.
Street admitted in court today that, while he was a licensed anesthesiologist, on August 1, 2013, he sold two prescriptions for $300 each to a confidential informant and an undercover investigator with the California Medical Board. He further admitted that he wrote the prescriptions without a legitimate medical purpose and intentionally acted outside the usual course of professional practice, including by failing to conduct a physical examination, establish diagnostic testing, provide a treatment plan, and create documentation to establish a medication indication for the prescriptions.
The investigation showed that Street prescribed 7,769 prescriptions for narcotics, including 437,000 doses of oxycodone, from November 2012 to November 2013.
Street was charged in a 10-count indictment returned by a federal grand jury in February 2018. During the investigation into Street, investigators executed a search warrant at his Victorville office in 2014. Street surrendered his California medical license in 2016.
This matter was investigated by the Drug Enforcement Administration – Riverside District Office Diversion Group.
This case is being prosecuted by Assistant United States Attorneys Bryant Y. Yang of the International Narcotics, Money Laundering, and Racketeering Section and Jason C. Pang of the General Crimes Section.
Former District Government Employee Sentenced to 18 Months for Carrying Out Embezzlement SchemeRead the Press Release
WASHINGTON – Gary T. Holliday, 50, a former training supervisor and policy analyst for the District of Columbia Department of Human Services (DHS), was sentenced today to 18 months in prison for his involvement in a scheme in which he defrauded the agency of more than $400,000 in temporary assistance benefits meant for needy District residents.
The announcement was made by U.S. Attorney Jessie K. Liu, Charles A. Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, District of Columbia Inspector General Daniel W. Lucas, and Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
Holiday, of Fort Washington, Maryland, pled guilty in the U.S. District Court for the District of Columbia in February 2019. He was sentenced by the Honorable Rudolph Contreras. The judge also ordered Holliday to pay $404,800.31 in restitution and in forfeiture. Upon completion of his prison term, Holliday will be placed on two years of supervised release.
According to plea documents, Holliday embezzled money intended to provide temporary support and assistance to low-income families and individuals. Specifically, he targeted the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamps program, and Temporary Assistance for Needy Families (TANF), which consists of cash benefits. Benefits in both programs were provided to clients via electronic benefit cards.
Holliday’s job responsibilities at DHS included representing the agency at “fair hearings” that involved disputes between DHS and its clients about eligibility and benefits. In cases where the agency lost the hearing, Holliday was responsible for creating a memorandum summarizing the conclusions of the hearing and directing another employee at DHS to calculate and pay whatever “underpayments” the client was owed. Holliday created and submitted a fraudulent memorandum in which he falsely claimed that as a result of a purported fair hearing, a client of DHS needed to be processed for SNAP and TANF underpayments.
In fact, the named client had not applied for benefits (the client’s alleged application had been forged by Holliday) and there had never been a fair hearing regarding the client’s eligibility for benefits. As a result of the Holliday’s actions, another employee created an active underpayment account for the client in the DHS computer system. Then, between June 2017 and November 2018, Holliday used his access to the DHS computer system to create over 400 fraudulent underpayments for the client, totaling in excess of $400,000. He accessed the fraudulent proceeds by using the client’s benefit card.
In announcing the sentence, U.S. Attorney Liu, Acting Special Agent in Charge Dayoub, District of Columbia Inspector General Lucas, and Special Agent in Charge Dixon of U.S. HHS-OIG, commended the work of those who investigated the case from the FBI’s Washington Field Office, the District of Columbia Office of the Inspector General, and the U.S. Department of Health and Human Services Office of Inspector General. They also expressed appreciation for the work of Assistant U.S. Attorney Emily A. Miller who prosecuted the case and Paralegal Specialist Aisha Keys who assisted.
Former CEO of Israeli Company Found Guilty of Orchestrating $145 Million Binary Options Fraud SchemeRead the Press Release
The former CEO of the Israel-based company Yukom Communications, a purported sales and marketing company, was found guilty yesterday for orchestrating a scheme to defraud investors in the United States and worldwide by fraudulently marketing approximately $145 million in financial instruments known as “binary options.”
Lee Elbaz, 38, a citizen of Israel, was found guilty after a three-week jury trial of one count of conspiracy to commit wire fraud and three counts of wire fraud. Sentencing is scheduled for Dec. 9, 2019, before U.S. District Judge Theodore D. Chuang of the District of Maryland, who presided over the trial. Elbaz was arrested on a criminal complaint in September 2017 and indicted in March 2018.
“This verdict demonstrates that the Department will hold accountable those who deceive American investors with false claims and rates of returns,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “We are committed to prosecuting financial fraud, even when perpetrated from abroad.”
“I would like to commend the FBI agents, analysts and our DOJ colleagues for their hard work to seek justice for the victims of Lee Elbaz’s fraud,” said Acting Assistant Director in Charge of the FBI's Washington Field Office, John P. Selleck. “We would not be successful in our work if not for our partners around the world; and this investigation demonstrates that no matter where fraudsters and criminals try to hide, we will work tirelessly to locate them.”
According to the evidence presented at trial, the defendant and her co-conspirators fraudulently sold and marketed binary options to investors located in the United States and throughout the world through two websites, known as BinaryBook and BigOption. The evidence showed that in her role as CEO of Yukom, Elbaz, along with her co-conspirators and subordinates, misled investors using BinaryBook and BigOption by falsely claiming to represent the interests of investors when, in fact, the owners of BinaryBook and BigOption profited when investors lost money; by misrepresenting the suitability of and expected return on investments through BinaryBook and BigOption; by providing investors with false names and qualifications and falsely claiming to be working from London; and by misrepresenting whether and how investors could withdraw funds from their accounts. Representatives of BinaryBook and BigOption, working under Elbaz’s supervision, misrepresented the terms of so-called “bonuses,” “risk free trades” and “insured trades,” and deceptively used these supposed benefits in a manner that in fact harmed investors, the evidence showed.
This case was investigated by the FBI’s Washington Field Office. Principal Assistant Chief Henry Van Dyck and Trial Attorneys L. Rush Atkinson and Caitlin Cottingham of the Criminal Division’s Fraud Section are prosecuting the case. Assistant Chief Tracee Plowell and Trial Attorney Ankush Khardori previously prosecuted the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information at: https://www.justice.gov/criminal-vns/case/lee-elbaz.
Final Defendant Pleads Guilty in Bid-Rigging Conspiracy Involving Government ContractsRead the Press Release
SACRAMENTO, Calif. — Loraine Dixon, 61, of Granite Bay, pleaded guilty today to a conspiracy to commit bid rigging, U.S. Attorney McGregor W. Scott announced.
According to court documents, Dixon conspired with John Brewer, 50, of San Francisco, and Brent Vinch, 49, of New York, to rig the state of California’s competitive bidding process. Dixon was a regional representative for a software company that produced software used by several California state agencies. Brewer and Vinch were the owners of, and senior executives for, a company called Expert Network Consultants (ENC), which submitted bids to the state for various government contracts, including contracts to supply the software produced by Dixon’s employer.
Working together, Dixon, Brewer, and Vinch thwarted the competitive bidding process in order to ensure that ENC won contracts with California agencies to supply the software in question. The process requires that any IT purchase over $4,999 and not advertised must obtain at least two bids from prospective sellers, and the contract must be awarded to the lowest bidder. Brewer solicited bids from individuals and companies that had no intention or ability to perform the work called for in the contracts, and Brewer directed Vinch to create and submit non-competitive bids. Dixon often directed Brewer and Vinch to create, collect, or submit bids to certain agencies, and on other occasions advised them on how to act in bidding. Dixon solicited cash and wine from Brewer and Vinch to continue steering contracts to them and advising them on the non-competitive bidding process, and she joined ENC as an employee in 2012.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew M. Yelovich prosecuted the case. The California Attorney General’s Office conducted the initial investigation into this matter.
Brewer was sentenced on April 26, 2018, to 15 months in prison.
Dixon is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 31. Vinch is scheduled to be sentenced on Jan. 9, 2020. They each face a maximum statutory penalty of 10 years in prison and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Prison Inmate Sentenced for Assaulting Fellow InmateRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Carl Richardson, 40, was sentenced today by U.S. District Judge James D. Peterson to 48 months in federal prison for assaulting an inmate at the Federal Correctional Institution at Oxford, Wisconsin. Richardson pleaded guilty to this charge on May 22, 2019. This sentence is to be served consecutively to Richardson’s current federal sentence for being a felon in possession of a firearm.
On November 5, 2017, Richardson brutally attacked a fellow inmate at FCI-Oxford using a combination lock that he secured to the end of a belt. As a result, the victim sustained significant injuries to his hands, face, neck, and head. During sentencing, Judge Peterson stressed the importance of keeping people safe in prison. He also explained that inmates insult the integrity of the institution by engaging in such conduct.
The charge against Richardson was the result of an investigation conducted by the Federal Bureau of Investigation and the Bureau of Prisons – Special Investigative Services. The prosecution of the case has been handled by Special Assistant U.S. Attorney Chadwick M. Elgersma.
Federal Jury Convicts on Federal Gun and Ammunition ChargesRead the Press Release
Yesterday, a federal jury convicted Christopher McNabb (a.k.a. “Rudy”) from Leeds, Alabama, of three firearm and ammunition related offenses announced U.S. Attorney Jay E, Town and the Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
The jury returned its guilty verdict against McNabb after two days of testimony before U.S. District Judge Karon O. Bowdre. McNabb will be sentenced on December 10, 2019, and faces up to 10 years in federal prison.
“Our prosecutors and law enforcement partners continue to show that they will not leave their fight in the dressing room, and as a result another violent offender has been convicted,” Town said. “This is the third trial, and third conviction, in the last three weeks of this type. The public can rest assured that we will continue to bring justice to these defendants. These criminals can rest assured in a federal prison bed.”
“Reducing the potential for violent crime in this case was critical due to ATF partnering with our state, local and federal partners,” Watson said.
Evidence at trial proved that McNabb, a known member of the Southern Brotherhood white supremacist gang, possessed a machinegun, a .223 caliber assault rifle as well as two .380 caliber pistols and assorted ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant United States Attorneys Kevin Sanchez and Michael Pillsbury prosecuted the case.
Fayetteville Man Sentenced to Seven Years for Drug DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced MIGUEL ANGEL GIERBOLINI, 27, of Fayetteville, North Carolina, to 84 months imprisonment, followed by 5 years of supervised release.
GIERBOLINI was named in an Indictment filed on May 8, 2018, and on August 7, 2018, he pled guilty to Conspiracy to Distribute and Possess with the Intent to Distribute 5 Kilograms or More of Cocaine and a quantity of Heroin.
Investigators with the Fayetteville Police Department, the Sampson County Sheriff’s Office, and the Federal Bureau of Investigation identified members of a Puerto Rican drug trafficking organization (DTO) that were shipping kilograms of cocaine locations in Cumberland and Sampson counties, North Carolina via the United States Postal Service. Surveillance, wiretap interceptions, and confidential sources of information (CSIs) were used to identify multiple drug traffickers working in connection with the DTO. Indicted members of the DTO include Luis Joel Robles Latorres; Wilmer Luis Mejias; Luis Morales; Wayne Williams; Carlton Roy Hughes; and Miguel GIERBOLINI.
The investigation showed that the DTO shipped more than 100 kilograms of cocaine from Puerto Rico to North Carolina, with a total street value of approximately $3.5 million. Agents also seized multiple firearms from DTO members pursuant to search warrants. Luis Joel Robles Latorres was identified as the head of the DTO. Wilmer Mejias assisted in the distribution of cocaine and the collection of drug proceeds. Wayne Williams, Carlton Hughes, and Luis Morales were also large-scale drug distributors in North Carolina.
The investigation also identified GIERBOLINI as one of the suppliers within the DTO. He worked with DTO leader Luis Joel Robles Latorres, who was sentenced to 162 months imprisonment on June 18, 2019.
Agents began receiving information about the DTO from CSI #1. Specifically CSI #1 identified Latorres as the individual responsible for arranging cocaine shipments from Puerto Rico. Latorres was also responsible for collecting drug proceeds and sending them back to the DTO in Puerto Rico.
GIERBOLINI was identified as Latorres’ drug business partner by a cooperating defendant (CD#1). CD#1 stated that between the fall of 2015 through January 2016, CD#1 received between 4 and 9 ounces of cocaine per week from Latorres. CD#1 also noted that GIERBOLINI was his heroin source of supply, and he purchased 3 ounces of heroin from GIERBOLINI in the summer of 2017. Furthermore, CD#1 noted that Latorres and GIERBOLINI possessed firearms. Specifically, Latorres possessed a handgun during several of the drug transactions, and GIERBOLINI wore a gun in a holster during drug transactions. CD#1 advised he purchased cocaine directly from GIERBOLINI on four occasions. The total amount of cocaine purchased directly from GIERBOLINI during the drug transactions was 18 ounces (510.3 grams).
A second cooperating defendant (CD#2) identified GIERBOLINI as Latorres’ “right hand man,” and the witness noted that all of the cocaine received from Puerto Rico went to GIERBOLINI for “safekeeping” after it was inspected by Latorres. Specifically, CD#2 noted that at any given time, GIERBOLINI stored between 1 and 4 kilograms of cocaine at his residence in Fayetteville for Latorres. GIERBOLINI also kept firearms and large amounts of U.S. Currency at his home.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF) named Operation La Vida Loca. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Investigation of this case was conducted by the Fayetteville Police Department, the Federal Bureau of Investigation, the Sampson County Sheriff’s Office, and the Wilmington Police Department. Assistant United States Attorney Scott A. Lemmon represented the government.
Eau Claire Man Sentenced to 7 Years for Possessing Methamphetamine for SaleRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Manuel Small, 48, Eau Claire, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to seven years in federal prison for possessing methamphetamine with the intent to sell it. Small pleaded guilty to this charge on April 17, 2019.
Small was arrested in Eau Claire on July 30, 2018, after officers searched his hotel room and found over 50 grams of methamphetamine packaged for resale. Officers had been surveilling the room a few days before the search and watched numerous individuals visit the room. Officers received information that Small was selling methamphetamine out of that room during that time.
In sentencing Small, Judge Peterson considered the amount methamphetamine involved, the fact that Small involved others to deal for him, and Small’s extensive and serious criminal history, including several convictions for domestic violence. Judge Peterson was also concerned that Small’s criminal history began later in life when he was in his 30’s, and continued until his arrest at an age one would expect to see criminal behavior begin to subside. Judge Peterson nonetheless saw the potential for Small to be law abiding, if he could address his substance abuse and anger issues.
The charge against Manuel Small was the result of an investigation conducted by the Eau Claire Police Department and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Laura A. Przybylinski Finn.
Drug Trafficker Who Possessed Firearm Sentenced to 12 Years in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Daniel Rodriguez-Santos, age 38, of Yakima, Washington, was sentenced after having been convicted after a 2-day jury trial in May 2019, of possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. United States District Judge Salvador Mendoza, Jr., sentenced Rodriguez-Santos to a 12-year term of imprisonment, to be followed by a five-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, law enforcement officers with the U.S. Drug Enforcement Administration (“DEA”) and the Yakima Police Department obtained a warrant to search Rodriguez-Santos’ residence. During execution of the warrant, officers found a large quantity of methamphetamine and a .380 caliber handgun and ammunition in his bedroom closet.
United States Attorney Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for individuals who may engage in drug trafficking and firearm-related offenses. I commend the DEA and Yakima Police Department officers for their tireless efforts in combating drug trafficking and related offenses in our community.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Yakima Resident Office of the U.S. Drug Enforcement Administration, and the Yakima Police Department. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Dominican Republic National Who Operated the Underground Nightclub in St. Thomas, USVI Arrested for Crimes Related to Alien Smuggling and Prostitution SchemeRead the Press Release
St. Thomas, USVI - Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division and U.S. Attorney Gretchen C.F. Shappert for the District of the Virgin Islands. Announced today that Yohanna Gonzalez-McFarlane, 38, of the Dominican Republic, was arrested yesterday and charged in a criminal complaint with one count of alien harboring for financial gain and one count of interstate transportation for prostitution.
According to court documents unsealed today, between at least December 2018 and August 2019, defendant Gonzalez-McFarlane operated the Underground Nightclub in St. Thomas. She recruited young foreign women and arranged to have them smuggled into the U.S. Virgin Islands to engage in prostitution while working at the bar. The defendant then housed the women at a residence on St. Thomas and required them to engage in commercial sex at the defendant’s nightclub to repay their smuggling debts. According to court documents, the defendant’s activities came to law enforcement’s attention when one of the women originally from Venezuela secretly reported the conditions of her treatment to her family via text messages and calls. The young woman’s family members in turn contacted the Virgin Islands Police Department (VIPD). According to court documents, the young woman sent messages indicating that she was forced to engage in prostitution and was in fear of physical danger.
Court documents also indicate that the Federal Bureau of Investigation (FBI) conducted a recovery operation and rescued the young woman from the bar. An FBI agent posing as a bar patron, negotiated with defendant Gonzales-McFarlane to obtain a "date" with the young woman, away from the premises of the bar. As a result, the young woman was able to escape.
Court documents also describe threats allegedly made by the defendant and others at the bar to kill another one of the young foreign women forced to work there and to burn one of the women’s passports.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until found guilty beyond a reasonable doubt in a court of law.
This case is being investigated by Homeland Security Investigations and the FBI, and supported by Customs and Border Protection, the U.S. Marshal Service, U.S. Postal Inspection Service, Drug Enforcement Administration, and VIPD. It is being prosecuted by Assistant U.S. Attorney Meredith Edwards for the District of the Virgin Islands and Trial Attorney Mark Probasco and Special Litigation Counsel Rose Gibson for the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit.
Dominican National Sentenced for Social Security Fraud and Identity TheftRead the Press Release
BOSTON – A Dominican national residing in Lawrence was sentenced yesterday in federal court in Boston for Social Security fraud and aggravated identity theft.
Ulises Mota Carmona, 36, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to two years and one day in prison. He will be subject to deportation upon completion of his sentence. Mota Carmona was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
Dubbed “Double Trouble,” the investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On Aug. 5, 2015, Mota Carmona applied for a learner’s permit with the Massachusetts Registry of Motor Vehicles using the name and Social Security number of a U.S. citizen from Puerto Rico. He presented a birth certificate and Social Security card in the other person’s name to the Massachusetts Registry of Motor Vehicles as proof of his identity. Mota Carmona also used the name and Social Security number of a U.S. citizen to receive MassHealth benefits.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Arrested in U.S. Virgin Islands for Crimes Related to Alien Smuggling and Prostitution SchemeRead the Press Release
Yohanna Gonzalez-McFarlane, 38, of St. Thomas, U.S. Virgin Islands, was arrested on August 7, and charged in a criminal complaint with one count of alien harboring for financial gain and one count of interstate transportation for prostitution. The arrest was announced by Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division and U.S. Attorney Gretchen C.F. Shappert for the District of the Virgin Islands.
According to court documents that were unsealed today, between at least December 2018 and August 2019, the defendant recruited young foreign women and arranged to have them smuggled into the U.S. Virgin Islands. The defendant then housed the women at a residence on St. Thomas and required them to engage in commercial sex at the defendant’s nightclub to repay a smuggling debt. The case came to law enforcement’s attention when one of the women reported the conditions of her treatment to her family, who then called the Virgin Islands Police Department.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until found guilty beyond a reasonable doubt in a court of law.
This case is being investigated by Homeland Security Investigations and the FBI. It is being prosecuted by Assistant U.S. Attorney Meredith Edwards for the District of the Virgin Islands and Trial Attorney Mark Probasco and Special Litigation Counsel Rose Gibson for the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit.
Department of Justice Antitrust Division to Hold Workshop on Competition in Labor MarketsRead the Press Release
WASHINGTON – The Department of Justice will hold a public workshop on September 23, 2019, to discuss the role of antitrust enforcement in labor markets and promoting robust competition for the American worker. The workshop will cover a variety of labor competition issues, including, among other topics: anticompetitive no-poach and wage-fixing agreements, approaches to labor market definition, the role of employer collaboration and contractual arrangements between employers on competition for workers, labor monopsony in merger enforcement, and antitrust exemptions for collective bargaining and other labor union activity. Panelists will discuss recent developments in the law, economic research, and policy proposals, as well as how to effectively develop cases challenging labor monopsony.
Assistant Attorney General for Antitrust Makan Delrahim will open the workshop, which will bring together economists, attorneys, labor representatives, and industry experts who examine competition in labor markets and who have experience litigating or studying labor antitrust cases. The Division intends to explore the practical considerations that antitrust enforcers and private litigants face in bringing cases that involve labor markets. The workshop will begin with an overview of the status of labor economics, followed by a series of panels examining (1) approaches to defining labor markets; (2) antitrust analysis of labor restraints arising out of competitor collaborations and contractual partnerships between employers; and (3) statutory and non-statutory antitrust exemptions for labor union activities.
The Department of Justice invites comments from the public on the topics covered by this workshop. Interested parties may submit public comments online now through October 23, 2019 at [email protected].
The workshop is free and open to the public and will take place in the Great Hall of the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, D.C., from 10:00 a.m. to 5:00 p.m. EST on September 23, 2019. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, directions to the event, and a list of speakers will be available in the near future on the event web page. Attendees are encouraged, but not required, to register in advance for the workshop at [email protected]. Members of the press also should copy [email protected] on their registration email. Seating will be on a first-come, first-served basis. Attendees should bring a valid government-issued photo ID (government badge, license, passport, etc.) and arrive in time to go through security.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact Alexei Woltornist in the Office of Public Affairs at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
Defense Contractor to Pay $3.3M to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Ambu, Inc. (“Ambu”), will pay $3.3 million to resolve False Claims Act allegations that it manufactured products in China and Malaysia for sale to United States government agencies in violation of the Trade Agreements Act (“TAA”).
The settlement resolves allegations that, between December 2011 and March 2015, Ambu, a provider of medical supplies, submitted false claims to the Defense Logistics Agency (“DLA”) and the Department of Veterans’ Affairs (“VA”) for payment relating to Ambu’s sales of medical supplies. The Trade Agreements Act (“TAA”) requires that products sold to government agencies must come only from countries with which the United States has a trade agreement. While many countries qualify as TAA compliant countries, China and Malaysia do not. Ambu began manufacturing its products in these countries and selling them to government agencies in violation of the TAA. Indeed, over 80% of Ambu’s sales to DLA and VA under these contracts were from these non-compliant countries during the years covered by the settlement. Ambu executives certified that its products came from compliant countries despite allegedly knowing that most of the products were manufactured in non-compliant countries.
“Congress passed the Trade Agreements Act as an important part of the United States’ economic, diplomatic, and defense strategy,” said U.S. Attorney McSwain. “Contractors must follow the law and manufacture their products in TAA compliant countries, whether they like it or not. By investigating the allegations and reaching a settlement in this case, we have put all companies doing business with the United States government on notice that the TAA is an important law that must be respected.”
“The Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of the U.S. Defense Department’s (DoD) procurement process and ensuring that defense contractors comply with all applicable laws, such as the Trade Agreements Act (TAA),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “The settlement agreement announced today is the direct result of a joint effort by the DCIS, Army CID, VA-OIG and the U.S. Attorney’s Office, to guarantee that medical supplies purchased by the DoD for members of the U.S. military and their dependents are manufactured in TAA compliant countries.”
This case was a cooperative effort among the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Defense Criminal Investigative Services, the United States Army Criminal Investigation Division and the Department of Veterans Affairs Office of Inspector General. For the United States Attorney’s Office, Assistant United States Attorney Colin Cherico and Auditor Dawn Wiggins handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Dallas Brothel Owner Targeted in Sting Operation Pleads GuiltyRead the Press Release
Brothel owner Helen Kim pleaded guilty today to a racketeering charge, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Ms. Kim, 59, was apprehended by law enforcement in November, after a sting operation at a Dallas hotel liberated a number of foreign-born commercial sex workers.
She pleaded guilty Thursday morning to one count of use of a facility of interstate commerce in aid of a racketeering enterprise involving prostitution before Magistrate Judge Renee Toliver.
“I am proud that our law enforcement partners poured significant resources into this sting operation in order to liberate the numerous women that Ms. Kim sold for sex,” said U.S. Attorney Nealy Cox. “We were determined to hold her accountable for her willingness to demean other women for financial gain.”
In plea papers, Ms. Kim – the owner of brothels “Pink One” and “Illusion Spa” – admitted that she agreed to take more than $40,00 in exchange for providing illicit sex services to a group of out of town “businessmen” partying at a local hotel.
Those “businessmen” were in fact undercover law enforcement. More than 50 officers from the Dallas Police Department, the Texas Department of Public Safety, and Homeland Security Investigations participated in the Nov. 1 undercover operation, which involved agents posing as businessmen posted at the hotel bar and in rooms upstairs.
According to an indictment returned in November, Ms. Kim and her 36-year-old son had previously negotiated the businessmen’s private sexual liaisons with 20 to 25 women at a rate of $2,000 each, for a total of at least $40,000. The pair promised the “girlfriend experience,” and even allowed an undercover detective to meet several of the women at a local Sushi bar.
“The way this is set up,” her son allegedly told the undercover officer, “it could be considered human trafficking.”
In her plea papers, Ms. Kim admitted that she employed more than 10 commercial sex workers at her two brothels. Many of the women lived at the establishments, in order to cater to customers at all times of the day and night, she acknowledged.
Ms. Kim now faces up to five years in federal prison.
Assistant U.S. Attorneys Ryan Raybould and Cara Foos Pierce are prosecuting the case.
Convicted Felon Charged with Firearm and Drug Law ViolationsRead the Press Release
PITTSBURGH, PA- A resident of Duquesne, PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on July 30 and unsealed today, named Rarji Neal, 26, as the sole defendant.
According to the Indictment, on December 11, 2018, Neal possessed with intent to distribute 100 grams or more of heroin and a quantity of cocaine. The indictment further alleges that Neal unlawfully possessed a Ruger 9 millimeter firearm, a Glock 9 millimeter firearm, an Intratec 9 millimeter firearm, and ammunition, after being convicted of carrying a firearm without a license. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of life in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy Criswell Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Neighborhoods, (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Columbus, Macon Bank Robber Sentenced to Federal PrisonRead the Press Release
MACON – A federal judge sentenced a bank robber to 48 months in prison for his crimes, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Clifford Terrell, 44, of Barnesville, GA previously pleaded guilty to one count of Bank Robbery on May 2, 2019. U.S. District Judge Marc Treadwell sentenced Mr. Terrell in Macon federal court on August 7, 2019. There is no parole in the federal system.
Mr. Terrell admitted to committing three bank robberies in the Middle District of Georgia. In each instance, the defendant used force and intimidation, threatening bank tellers verbally and using written demand notes. The first occurred on September 5, 2017 at the BB&T on North Lee Street in Forsyth. The second happened ten days later, on September 10, 2017, at the CB&T on Milgen Road in Columbus, and the third bank robbery was on September 22, 2017, at the SB&T on Zebulon Road in Macon. The defendant was arrested on September 27, 2017 at his Barnesville residence.
“Over a period of 17 days in September 2017, this individual terrorized hard working employees and citizens at three banks in the Middle District of Georgia. The defendant will now pay the consequence for his crime spree by spending the next four years in federal prison,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “I want to commend the multiple law enforcement agencies that joined forces to quickly shut down and arrest this serial bank robber.”
The case was investigated by the Forsyth Police Department, the Bibb County Sheriff’s Office, the Monroe County Sheriff’s Office, the Lamar County Sheriff’s Office, the U.S. Marshals Southeast Regional Fugitive Task Force, and the FBI. Assistant U.S. Attorney Will R. Keyes is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Chief Financial Officer of Norman Company Indicted for Employment Tax FraudRead the Press Release
OKLAHOMA CITY – A federal grand jury has returned an indictment charging CHRISTINA ROCHELLE ANGLIN, of Burnsville, North Carolina, with six counts of failure to collect and pay over employment taxes, announced U.S. Attorney Timothy J. Downing.
According to the indictment, Anglin was the Controller and Chief Financial Officer for a group of companies owned by the Alabama-Quassarte Tribal Town, located in Wetumpka, Oklahoma. In that role, Anglin was responsible for collecting and paying over to the IRS taxes withheld on behalf of the employees of Atmospheric Technology Services Company (ATSC), which was headquartered in Norman, Oklahoma.
The indictment alleges that Anglin failed to collect and pay over a total of $1,744,047.68 for the employees of ATSC from the second quarter of 2017 through the third quarter of 2018. Meanwhile, Anglin allegedly approved hundreds of thousands of dollars of non-tax expenditures, including salary and bonuses for herself and payments for the personal benefit of another person associated with the companies.
If found guilty, Anglin faces up to five years in prison and up to three years of supervised release for each count.
Agencies responsible for the multi-year investigation that led to the indictment include the Internal Revenue Service—Criminal Investigation, the FBI Oklahoma City Division, the Defense Criminal Investigative Service, the General Services Administration—Office of Inspector General, the Small Business Administration—Office of Inspector General, the Naval Criminal Investigative Service, and the Army Criminal Investigation Command.
The public is reminded that these charges are merely allegations and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
CEO of Miami Investment Management Companies Pleads Guilty to Defrauding Investors of over $7.5 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that FABIO BRETAS DE FREITAS pled guilty today before U.S. District Judge Laura T. Swain to defrauding a group of investors (the “Victims”) by soliciting funds for investment in the commodity futures markets, but instead using the funds for personal and other expenses. BRETAS lulled his Victims and furthered the scheme by distributing fictitious financial statements to the Victims, purporting to show their investments’ position and growth under his management. When his companies were audited by regulators, the Commodities Futures Trading Commission (“CFTC”) and the National Futures Association (“NFA”), BRETAS lied to the regulators in order to cover up his crimes, going so far as to steal the identity of one Victim and to impersonate that Victim in email communications with the NFA.
Manhattan U.S. Attorney Geoffrey Berman said: “Fabio Bretas De Freitas solicited investor funds from several companies he operated by touting his prolific ability to profit from his futures market trading strategies. In reality, Bretas’ core strategy was swindling investors, using the funds to line his own pockets while doing minimal trading for his investors. Bretas now faces serious time in prison, and this case is a prime example of the inevitability of getting caught when defrauding investors.”
According to the allegations in the criminal complaint, the indictment, and other documents filed in federal court, as well as statements made in public court proceedings:
BRETAS operated a group of investment companies, including Phynance Capital Management LLC (“Phy Cap”), Phy Global Partners Fund LLC (“PGP”), Absolute Experience LLC (“Absolute”), and Global Partners Investors LLC (“GPI”), that he used to solicit investments from. Phy Cap was a commodity pool operator and commodity trading advisor, registered with the NFA, as required by CFTC. In his companies’ marketing materials, BRETAS represented that he used “statistical analysis and mathematical modeling of historical data to develop quantitative systematic methodologies applied to managed futures strategies.” In fact, while BRETAS solicited more than $7.5 million from individual investors, he conducted only a minimal level of trading; his predominant use of his companies was the theft of investor money, using it to cover his personal expenses and transferring investor funds abroad. In order to continue the scheme, and solicit additional investments, BRETAS prepared false monthly statements, purporting to demonstrate the investments’ growth, and distributed them to the Victims. When his regulators, the CFTC and NFA, initiated an audit in 2017, BRETAS lied about his affiliation with Absolute, falsely claimed that the funds that the Victims invested in PGP were mere loans to his company, lied about the use of those funds and the solicitation of investments, and ultimately created a fraudulent email account for the purpose of impersonating one victim in communications with the NFA.
BRETAS, 53, of Miami, Florida, pled guilty to one count of conspiracy to commit wire fraud and commodities fraud. That offense carries a maximum prison term of 25 years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BRETAS is scheduled to be sentenced by Judge Swain on December 17, 2019.
Mr. Berman praised the outstanding investigative work of the FBI’s New York Money Laundering Investigation Squad, and thanked the attorneys and investigators at the CFTC whose expertise and diligence were integral to the development of this investigation and today’s successful guilty plea.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Benet J. Kearney is in charge of the prosecution.
Brooklyn Man Pleads Guilty to Investment Scheme that Defrauded Elderly VictimsRead the Press Release
Earlier today in federal court in Brooklyn, John Cucinella, the former investment manager of Mackrow Asset Management Group (Mackrow), a purported asset management firm located in Brooklyn, pleaded guilty to securities fraud. As part of his plea, Cucinella agreed to forfeit $948,530 that he misappropriated from investors. The guilty plea was before United States Magistrate Judge Steven L. Tiscione.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“John Cucinella represented himself to investors as a ‘financial concierge’, but rather than service the needs of elderly investors, he swindled them out of thousands of dollars and then spent the money on himself,” stated United States Attorney Donoghue. “The Department of Justice and this Office are committed to prosecuting to the fullest extent of the law those who prey on vulnerable victims for their own selfish benefit.”
According to court filings and facts presented at the plea proceeding, between approximately March 2015 and April 2018, Cucinella falsely represented to Mackrow investors, many of whom were elderly, that their funds would be used to invest in pre-initial public offering (pre-IPO) shares of private companies, including a company purportedly that manufactured bug spray. In a brochure that Cucinella provided to clients, Mackrow was described as “providing you all the resources of a true financial concierge.” During the same time period, Cucinella transferred more than $400,000 from the Mackrow account to bank accounts he controlled, and spent approximately $108,000 for credit card payments and $40,000 at a Mercedes-Benz dealership in Brooklyn. More than 80 individuals invested approximately $778,000 with Mackrow, and received only $80,818 in return.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney David Gopstein is in charge of the prosecution.
The Defendant:
JOHN CUCINELLA
Age: 41
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-347 (RRM)
Brooklyn Man Charged with Stealing More than $80,000 from New York State Assemblyman’s Campaign AccountRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Maruf Alam with wire fraud in connection with his theft of more than $80,000 in campaign contributions from a New York State Assemblyman’s campaign account. Alam was arrested this morning, made his initial appearance this afternoon before United States Magistrate Judge Sanket J. Bulsara, and was released on a $100,000 bond.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, Alam was caught red-handed using a New York State Assemblyman’s campaign account as his personal piggy bank,” stated United States Attorney Donoghue. “Alam betrayed the trust placed in him to act honestly as the treasurer for the account, and then attempted to cover up his crime by filing false disclosure reports for years. Today’s arrest makes clear that dishonest public employees will face the consequences of their crimes and be prosecuted to the fullest extent of the law.” Mr. Donoghue extended his grateful appreciation to the enforcement staff at the New York State Board of Elections (NYSBOE) for their assistance during the investigation.
“As alleged, Alam violated the trust of an elected New York State Assemblyman by brazenly diverting more than $80,000 in campaign contributions to his own personal accounts,” stated FBI Assistant Director-in-Charge Sweeney. “Alam went to great lengths to conceal his fraud, including traveling to China to illicitly withdraw funds from a campaign account and then filing false disclosure reports with the New York State Board of Elections. Today’s action should serve as a reminder that the FBI will continue to bring to justice those who aim to exploit positions of public trust to satisfy their selfish greed.”
According to the complaint, since 2008 Alam was employed in various capacities, including chief of staff, for a New York State Assemblyman. Alam also acted on a voluntary basis as the treasurer for the Assemblyman’s campaign account, and was responsible for filing periodic disclosure reports with the NYSBOE to disclose contributions received and expenditures made by the Assemblyman’s campaign committee. From approximately January 2012 to January 2019, Alam allegedly stole campaign funds that had been contributed to support the candidacy of the Assemblyman, and deposited the cash into his personal account. For example, campaign account records disclose that on November 9, 2015 and November 13, 2015, two ATM withdrawals from the campaign account were made at two locations in China. Travel records reflect that Alam traveled to China on November 5, 2015, and returned to the United States on November 19, 2015. In total, during the relevant time period, the Assemblyman’s campaign account records reflect approximately $80,000 in cash withdrawals by Alam that were not reported to NYSBOE.
The charges in the complaint are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted, Alam faces a statutory maximum of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Nathan Reilly and Maria Cruz Melendez are in charge of the prosecution
The Defendant:
MARUF ALAM
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 19-MJ-710
Boston Man Sentenced for Business Loan SchemeRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston in connection with making false statements on a loan application.
Alexander Grinis, 47, of Jamaica Plain, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to nine months in prison, two years of supervised release and ordered to pay restitution of $91,403.
In May 2019, Grinis pleaded guilty to one count of making false statements on loan applications. In June 2018, Grinis was arrested and charged with co-defendant Igor Moiseev, 59, of Newton, who previously pleaded guilty and is awaiting sentencing.
Grinis was the manager of Eastern Bank in Auburndale. His responsibilities included assisting customers with opening and closing accounts and applying for loans and lines of credit. In approximately February 2015, Grinis assisted Moiseev in opening a checking and savings accounts at Eastern Bank with the license and Social Security card of another individual, without the knowledge or consent of that person. Later that year, Grinis assisted Moiseev in adding the individual to a business account in the name of TFC Enterprises, LLC. Thereafter, Moiseev forged the individual’s name on applications for two purported business loans. On each loan application, Grinis falsely certified that he had complied with all bank procedures and, as a result, the loans were approved. The proceeds of the two loans were subsequently distributed to the business checking account and Moiseev forged the individual’s name on checks and withdrew money from the account to pay for his own personal expenses. In addition, Moiseev, with Grinis’ assistance, caused proceeds from the business checking account to be wire transferred to Russia, Canada, and elsewhere overseas using the individual’s name. Both loans defaulted and were never paid back to Eastern Bank, resulting in a loss of over $90,000.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Bossier Parish School Board member pleads guilty to anabolic steroid distribution conspiracyRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Caddo Parish School Board member pleaded guilty today for his role in an anabolic steroid distribution scheme. Mike Mosura, 44, of Bossier City, Louisiana, pleaded guilty before U.S. District Judge Elizabeth E. Foote for conspiracy to possess with intent to distribute anabolic steroids.
From January 2016 to May 2018, Mosura was involved in a scheme to distribute anabolic steroids in the Shreveport-Bossier City area, along with co-defendants Brant R. Landry, 39, and wife Julie Landry, 42, both of Bossier City. When a Bossier Parish deputy stopped Brant Landry’s vehicle on May 22, 2018, for driving erratically, Brant Landry told the deputy that he had a .45-caliber pistol and medication inside the vehicle. After searching it, the deputy found a plastic baggie containing a white powdery substance that was later identified as Xanax and 11 vials of yellow liquid, later determined to be anabolic steroids.
Further investigation revealed that Brant Landry distributed steroids to Mosura, who in turn consumed and distributed the steroids to third parties. Mosura admitted to receiving and distributing the steroids.
Mosura faces 10 years in prison, two years to life of supervised release and a $500,000 fine. Judge Foote set Mike Mosura’s sentencing date for December 5, 2019. Brant Landry and Julie Landry are scheduled for trial on September 9, 2019.
The DEA, U.S. Postal Inspection Service and the Bossier Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Earl M. Campbell is prosecuting case.
Birmingham Man Sentenced to 241 months for Drug and Gun ConvictionsRead the Press Release
BIRMINGHAM – On Tuesday, a federal judge sentenced Jarrett Denard Boykins, of Birmingham, to serve 241 months in prison for convictions related to drug trafficking and gun possession, announced U.S. Attorney Jay E. Town and Bureau of Alcohol Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
“This sentence demonstrates that felons in possession of firearms while dealing deadly narcotics will continue to be prosecuted and continue to do time behind bars,” Town said. “Drug dealers who arm themselves to further their illegal drug trade have bed space waiting for them in federal prison.”
“ATF’s Crime Gun Intel partnerships are working together more effectively than any combination of criminal enterprises that attempt to endanger the safety of our communities,” Watson said.
In March, a federal jury found Boykins guilty of one count of possession with the intent to distribute more than 50 grams of crystal methamphetamine, one count of possession with the intent to distribute 152 methamphetamine tablets, two counts of carrying a gun in relation to a drug-trafficking crime, and three counts of possession of a firearm by a convicted felon.
Evidence at the trial proved that on October 2, 2017, Boykins, was found in the Pleasant Grove City Park after dark with more than 50 grams of methamphetamine and a firearm. Approximately six months later, Boykins was stopped by a Homewood police officer and found to have 152 methamphetamine tablets in a diaper bag in the back seat of his vehicle next to his infant child. Officers also found a pistol inside the diaper bag. On October 2, 2018, ATF agents along with officers from the Birmingham Police Department travelled to a Birmingham residence to arrest Boykins. Upon entering the residence, agents found Boykins in possession of another firearm, a non-controlled substance that was packaged for sale to appear like methamphetamine, and a large quantity of various calibers of ammunition scattered throughout the residence.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with the Pleasant Grove Police Department, Homewood Police Department, and Birmingham Police Department investigated the case, which Assistant United States Attorneys Brad Felton and Alan Baty prosecuted.
Billings man sentenced for illegal gun possessionRead the Press Release
BILLINGS—A Billings man who admitted to illegally possessing a firearm was sentenced today to 15 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Kenneth Clarence Altman, 26, pleaded guilty in March to being a prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
Billings Police officers arrested Altman after responding to a suspicious activity call on Sept. 15, 2018, the prosecution said. Officers learned there was a warrant for Altman and asked if he had any weapons. Altman replied he had a gun, a 9 mm semi-automatic pistol, in his pants pocket. Altman was convicted in 2015 of a crime punishable by more than a year and was prohibited from possessing firearms.
Assistant U.S. Attorney Tim Tatarka prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Bail Bondsman Pleads Guilty to Mail FraudRead the Press Release
GREENSBORO, N.C. - Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that MICHAEL KIRK SCHON pleaded guilty to a felony charge of mail fraud relating to a forfeiture of a bail bond.
SCHON, age 48, of Spotsylvania, Virginia, pleaded guilty before Chief United States District Judge Thomas D. Schroeder in federal court in Winston-Salem.
SCHON was licensed as a surety bail bondsman by the North Carolina Department of Insurance in 2014 and was employed by All American Bail Bonds, LLC, in Randleman, North Carolina. Bankers Insurance Company underwrote and served as surety on bail bonds issued by All American Bail Bonds, LLC. In 2013, All American Bail Bonds wrote $250,000 secured bond underwritten by Bankers Insurance Company, to secure release of an individual whose initials are F.S.L., in the alias name “Renaildo Santiago Dominguez.” F.S.L. had been arrested and charged with trafficking and other state drug charges in Superior Court in Guilford County. However, F.S.L. failed to appear and as a result the bail bond was declared forfeited on October 29, 2013.
Under state law, the Guilford County Board of Elections receives payment on forfeited bail bonds issued to secure the appearance of defendants charged in the District and Superior Courts in Guilford County. In March 2014, the Guilford County Board of Education and Banker’s Insurance Company, through SCHON, entered into a settlement agreement establishing a schedule for payments on the forfeited bond. The settlement agreement provided that scheduled payments would be waived if F.S.L. died before the due date of any payment. After the first scheduled payment of $80,000, SCHON procured and provided to the Guilford County Board of Education a false death certificate showing that F.S.L. had died on May 12, 2014, in Sinaloa, Mexico, when in fact F.S.L. was not dead. Relying on the false death certificate, the Board of Education issued a satisfaction of judgment cancelling the remaining $170,000 in payments.
The defendant faces a maximum penalty of twenty years imprisonment, a fine of up to $250,000, or both, and a term of supervised release of not more than three years. He may also be ordered to pay restitution. Sentencing will occur in Winston-Salem on November 19, 2019 at 9:30 a.m.
The case was investigated by the United States Postal Inspection Service and the North Carolina Department of Insurance. The case was prosecuted by Assistant United States Attorney Frank J. Chut.
###
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced FRANCISCO GONZALES-DIAZ, 29, of Mexico on July 20, 2019 for illegal re-entry of a previously deported alien into the United States. Gonzales-Diaz was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation proceedings. The U.S. Department of Homeland Security investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced TERRY TERRILL BLANKS, 36, of Murray, Utah on August 5, 2019 for two counts of transportation in interstate commerce for the purpose of prostitution. Blanks was arrested in Cheyenne, Wyoming. He received forty months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $200.00 special assessment. The Cheyenne Police Department and the FBI investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced SAMANTHA BROOKE SCHIEFER, 23, of Gillette, Wyoming on August 5, 2019 for conspiracy to distribute methamphetamine. Schiefer was arrested in Cheyenne, Wyoming. She received forty-one months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $200.00. The Wyoming Division of Criminal Investigation investigated this case.
A Morgan County Man Who Faked His Death Pleads GuiltyRead the Press Release
BIRMINGHAM – A Morgan County man who faked his death pled guilty today in federal court, announced U.S. Attorney Jay E. Town and Social Security Administration Office of Inspector General Special Agent in Charge Rod Owens.
Jackson Matthew Hall, 28, of Lacey Springs, AL, entered his guilty plea before U.S. District Judge R. David Proctor to charges of Social Security fraud and aggravated identity theft. The indictment was unsealed on May 21st.
“Mr. Hall thought he could get lost in Thailand and avoid federal prosecution,” Town said. “Instead - because of the hard work and dedication of the Social Security Administration Office of Inspector General, the United States Marshal Service, the State Department, and the Morgan Country Sheriff’s office - justice found him.”
According to Hall’s plea agreement, Hall was facing criminal charges of rape 1st degree and sodomy 1st degree (a child under 12 years of age) in Cullman County, Alabama, and an aggravated child abuse charge in Madison County, Alabama. Hall had pending court dates in both counties in March 2016 and April 2016. Between December 2015 and February 2016, Hall used another person’s identifiers to obtain a social security card, Alabama Driver’s license, and U.S. passport. He then faked his death and used those documents to travel out of the country. In September 2017 Hall was apprehended in Koh Samui, Thailand, by Thai authorities. In October 2017, the U.S. Marshals Service, along with a Madison County task force officer assigned to the Gulf Coast Regional Fugitive Task Force traveled to Bangkok, Thailand, and took custody of Hall and transported him back to the United States of America.
The maximum penalty for Social Security fraud is five years in prison and maximum fine of $250,000.
The penalty for aggravated identity theft is two years in prison and a maximum fine of $250,000.
The Social Security Administration Office of Inspector General, along with U.S. Marshals Service Gulf Coast Regional Fugitive Task Force, State Department, and the Morgan County Sheriff’s Office investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
Wednesday 7 August 2019
Wetzel County man indicted for firearms violationsRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Harrison, of Pine Grove, West Virginia, was indicted by a federal grand jury today for firearms charges, United States Attorney Bill Powell announced.
Harrison, age 49, is charged with one count of “Unlawful Possession of a Firearm” and one count of “Possession of a Firearm with an Obliterated Serial Number.” Harrison, who is not permitted to have a firearm because of a prior convictions, is accused of having a .45 caliber pistol with an obliterated serial number and ammunition in June 2019 in Wetzel County.
Fuller faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wetzel County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Washington Parish Men Plead Guilty to Gun and Heroin OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that ALEX MILLER, age 37 and LARRY DAVIS, age 40, both from Washington Parish, Louisiana pled guilty to heroin and gun charges.
Both DAVIS and MILLER pled guilty to conspiring to distribute 100 grams or more of heroin, and to being felons in possession of a firearm. MILLER also pled guilty to possessing a firearm in furtherance of drug trafficking. DAVIS pled guilty yesterday, and MILLER pled guilty on July 23, 2019.
For the drug charge, DAVIS and MILLER face a sentence of imprisonment of at least five years and up to forty years in prison. For the charge of possessing a firearm as a felon, MILLER faces up to ten years in prison, while DAVIS may face at least fifteen years and up to life in prison, as a result of the Armed Career Criminal Act. For the charge of possessing a firearm in furtherance of drug trafficking, MILLER faces at least five years, consecutive to any other sentence, and up to life in prison.
Judge Wendy B. Vitter set sentencing for MILLER on October 15, 2019, and for DAVIS on October 29, 2019.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Washington Parish Sheriff’s Office Drug Task Force, and the Bogalusa Police Department. Assistant United States Attorneys Nicholas D. Moses and André Jones are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCEDTF) program, the keystone drug enforcement program of the Department of Justice.
United States Files Suit Against Montgomery County Psychiatrist for Alleged Improper Opioid PrescribingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that the United States filed a civil lawsuit against Elizabeth N. Kuh, a psychiatrist practicing in Montgomery County, alleging that she wrote improper opioid and benzodiazepine prescriptions for two of her patients. According to the complaint, Kuh wrote 30 opioid and benzodiazepine prescriptions to a husband and wife couple which lacked a legitimate medical purpose, were issued outside the usual course of professional practice, and many of which resulted in false claims to Medicare.
The complaint filed by the United States alleges that Kuh had no specialization or training in pain management, but she repeatedly prescribed the couple 80mg OxyContin and benzodiazepine controlled substances. The prescriptions were allegedly issued to the couple frequently by mail without an in-person physical examination, without urine drug screens or diagnostic testing, frequently not recorded in Kuh’s records, and frequently while the wife’s pain management and other conditions were managed by other providers. Kuh’s improper prescribing continued for years, even after she learned that the wife’s opioids could be harming her mental health and contributing to hallucinations.
The complaint alleges that this prescribing by Kuh only ended shortly after the husband committed suicide. Kuh had allegedly sent multiple prescriptions of OxyContin through the mail to the husband—once again, without physical examination, urine drug screen, diagnostic testing, or attempting less dangerous alternatives. Kuh allegedly responded by mailing additional OxyContin prescriptions to the wife at her request. The United States’ suit seeks damages for the alleged false claims to Medicare, civil penalties for the improper prescriptions, and injunctive relief to restrict Kuh’s controlled substance registration.
The United States and Kuh have entered into a Stipulated Order and Consent Judgment, subject to the Court’s approval, which would resolve the matter without litigation. If approved by the Court, the Judgment would require Kuh to pay $250,000 to the United States, prohibit Kuh from ever writing another opioid prescription, and would treat any future violation as contempt of court.
“While all healthcare providers have a duty to ensure the well-being of their patients, psychiatrists have the responsibility of treating and caring for particularly vulnerable patients,” said U.S. Attorney McSwain. “Psychiatrists who write opioid or benzodiazepine prescriptions to their patients must ensure that the prescriptions are appropriate and comply with federal and state law. My Office’s Affirmative Civil Enforcement Strike Force will continue to aggressively pursue improper opioid and controlled substance prescribing, hold providers accountable, and protect the citizens of the Eastern District of Pennsylvania.”
“All registrants, to include Dr. Kuh, have an obligation to prescribe controlled substances such as opioids and benzodiazepines solely for a legitimate medical purpose and within the course of professional medical practice,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “The allegations against Kuh, who repeatedly prescribed these powerful drugs without any training in pain management and without conducting routine physical examinations, are deeply concerning.”
“Civil enforcement is an important tool to recover funds when physicians cause improper claims to the Medicare program,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG will continue to work with the Affirmative Civil Enforcement Strike Force and our other law enforcement partners to ensure the integrity of the Medicare program.”
This investigation was conducted with the Philadelphia Field Division of the Drug Enforcement Administration, the Pennsylvania Department of State’s Bureau of Enforcement and Investigation, and the Department of Health and Human Services Office of Inspector General. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano and Auditors Dawn Wiggins and Denis Cooke handled the matter.
The complaint contains allegations only; there has been no determination of liability.
U.S. Attorney’s Office Honors AUSA Michael Elmore as Part of Purple Heart Recognition DayRead the Press Release
PIERRE, S.D. – At the request of the South Dakota Department of Veterans Affairs, South Dakota Governor Kristi Noem has proclaimed Wednesday, August 7, 2019, as “Purple Heart Recognition Day,” calling on all South Dakotans to honor those men and women who are recipients of the Purple Heart Medal.
Our nation’s oldest military medal, the Purple Heart is awarded to those men and women who have been wounded or killed as the result of enemy action while serving in the United States Armed Forces. The Purple Heart was created on August 7, 1782, by the commander-in-chief of the Continental Army, General George Washington, whose likeness is now featured on the medal.
The United States Attorney’s Office for the District of South Dakota is pleased to honor Assistant U.S. Attorney Michael J. Elmore, a federal prosecutor in our Pierre office, who was awarded the Purple Heart while serving overseas in the United States Marine Corps.
AUSA Elmore was born and raised in Gillette and Campbell County, Wyoming, where his family still resides. He grew up working the family cattle ranch. From 2007 to 2011, he was in the United States Marine Corps, serving as a Scout Sniper, conducting operations as part of combat reconnaissance and surveillance teams. He had three deployments in support of the Global War on Terror, including to Southeast Asia, Africa, and Afghanistan. In 2010, Elmore was awarded the Purple Heart as a result of injuries sustained in support of Operation Enduring Freedom in Helmand Province, Afghanistan.
In 2011, Elmore was honorably discharged having attained the rank of Sergeant. After his honorable discharge, he attended St. Edward’s University, Austin, Texas, and graduated from Baylor Law School in Waco, Texas, in 2015. While in Texas, Elmore worked extensively with non-profit agencies to promote awareness and raise money for wounded veteran and memorial groups.
From 2016 to 2018, he served as a Deputy County Attorney in Custer County, Montana. In 2018, Elmore joined the Pierre branch of the United States Attorney’s Office for the District of South Dakota. He is a member of the South Dakota Bar Association and the United States District Court Bar. He is assigned to work cases arising on the Rosebud Sioux Indian Reservation, and his present work includes prosecuting violent crime, firearm, and methamphetamine offenses arising in Central South Dakota.
“We are pleased to honor our friend and colleague, Michael Elmore, for his heroism and sacrifice on behalf of our country,” said United States Attorney Ron Parsons.
U.S. Attorney Announces “Federal Initiative for the Tenderloin” A New Federal Law Enforcement Partnership to Address Crime in San Francisco’s Tenderloin DistrictRead the Press Release
SAN FRANCISCO – In his first press conference since being sworn in as the U.S. Attorney for the Northern District of California, the Honorable David L. Anderson announced a new federal initiative to address crime in San Francisco’s Tenderloin District. The program, called the Federal Initiative for the Tenderloin, brings together the resources of more than 15 federal law enforcement agencies to combat endemic drug trafficking, firearms offenses, robberies, and other crime in the neighborhood. At today’s press conference, U.S. Attorney Anderson also announced charges against 32 individuals as the first steps in implementing the new program.
Since being sworn in on January 15, 2019, U.S. Attorney Anderson has been the lead law-enforcement officer in the Northern District of California. At today’s press conference, he was flanked by 13 law-enforcement partners including representatives from such agencies as the U.S. Marshal Service; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Federal Bureau of Investigation. The full list of federal participants is below. Each partnering agency has pledged resources to investigate federal crime in the Tenderloin neighborhood, as well as to prioritize investigations and support the resulting prosecutions that follow. For his part, U.S. Attorney Anderson announced that his office will devote 15 Assistant United States Attorneys (“AUSAs”) to the initiative.
The Tenderloin neighborhood encompasses about 50 square blocks of downtown San Francisco. Generally, it is bounded on the north by Geary Street, on the east by Powell Street, on the south by Mission Street, and on the west by Van Ness Avenue. U.S. Attorney Anderson described the Tenderloin as ethnically, socially, and racially diverse; relatively more affordable than other neighborhoods in San Francisco; and having one of the highest concentrations of school-aged children in San Francisco according to published reports. These attributes, argued U.S. Attorney Anderson, make for a wonderful neighborhood being “smothered by lawlessness.” “Innocent residents, commuters, tourists, and persons with business in one of the four major federal buildings in the Tenderloin should not be required to run a gauntlet of crime,” said U.S. Attorney Anderson.
During the press conference, U.S. Attorney Anderson also described some of the parameters of the initiative. The initiative will prioritize federal charges for criminal misconduct with a nexus to the Tenderloin including drug trafficking, firearms offenses, escape, Hobbs Act robberies, false passports and visas, postal crimes, crimes on federal land, human trafficking, identity theft, and benefits fraud. The initiative will not be directed against innocent homelessness. The initiative will not be focused on drug use or possession without distribution. The initiative will persist for a minimum of one year.
“The Tenderloin neighborhood deserves the benefits of the rule of law every bit as much as other neighborhoods in this city.” U.S. Attorney Anderson said.
U.S. Attorney Anderson also announced the existence of a number of law enforcement actions that already have taken place in connection with his plan. The cases include the following:
Case Name
Case Number
U.S. v. Eduar Ramos et al.
19-CR-0305 RS
U.S. v. Francisco Padilla
19-CR-0306 WHO
U.S. v. Carlos Vargas
19-CR-0360 CRB
U.S. v. Jose Vasquez Arteaga et al.
19-CR-0287 CRB
U.S. v. Julio Viera-Chirinos
19-mj-71156
U.S. v. Eduardo Alfonso Viera-Chirinos et al.
19-mj-71145
U.S. v. Andy Reanos-Moreno et al.
19-mj-71162
U.S. v. Moyses Raudales
19-mj-71171
U.S. v. Henry Jovany Sevilla Sevilla
19-mj-71192
U.S. v. Jose Diaz
19-mj-71169
Separate press releases for these cases can be found here:
- Thirteen Defendants Charged In Cross-Bay Drug Trafficking Conspiracy
- Nine Defendants Charged In International Drug Trafficking Conspiracy
“Today,” U.S. Attorney Anderson announced, “we announce the unsealing of ten cases. So far, there have been 32 individuals charged with more to come. While making no promises about the number or types of cases to be brought or the specific outcomes to be achieved, I can say that we intend to devote substantial federal resources over an extended period of time toward this initiative and the neighborhood that it will serve.”
PARTICIPANT REPRESENTATIVES
David L. Anderson, U.S. Attorney for the Northern District of California
Chris Nielsen, Special Agent in Charge, U.S. Drug Enforcement Administration
Jay Bieber, Chief Deputy U.S. Marshal
Jennifer Cicolani, Assistant Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives
Scott Schelble, Assistant Special Agent in Charge, Federal Bureau of Investigation
Tatum King, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations
Timothy McHugh, Deputy Regional Director, Federal Protective Service
Thomas Edwards, Special Agent in Charge, U.S. Secret Service
Mike Sena, Director, Northern California High Intensity Drug Trafficking Area/Northern California Regional Intelligence Center
Kareem Carter, Special Agent In Charge, Oakland Field Office, U.S Internal Revenue Service- Criminal Investigation
Steve Ryan, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General
Don Hoang, Special Agent in Charge, U.S. Forest Service
Richard Sheehan, Assistant Inspector in Charge, U.S. Postal Inspection Service
Julie Ryer, Special Agent, U.S. Food and Drug Administration
Garrett Shore, Special Agent, U.S. Social Security Administration, Office of the Inspector General
Two defendants sentenced for operating clandestine PCP laboratory that exploded in 2013 fireRead the Press Release
ATLANTA – Coleman Warnock and Adrian Banks have been sentenced to federal prison for conspiring to manufacture and possess phencyclidine, a psychedelic controlled substance commonly known as “PCP” and “angel dust,” with intent to distribute. The concealed drug lab they operated in Fulton County exploded in July 2013, and burned for two days.
“Their clandestine laboratory put an entire community at risk through their illicit enterprise,” said U.S. Attorney Byung J. “BJay” Pak. “That risk became reality when the chemicals they were using to produce the poison exploded, causing an inferno that lasted for two days. The fire that destroyed the home could have injured neighbors nearby but thankfully, it did not. Nor did it destroy the evidence that landed these two long federal sentences.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said of the sentencings, “The clandestine PCP manufacturing site in South Fulton County was one of the largest ever discovered on the east coast. When these defendants chose to manufacture PCP, the subsequent explosion and fire proved to be a recipe for disaster. Not only was the structure burned to the ground, but surrounding neighbors were put at risk and were inconvenienced for several days as public safety and law enforcement officials worked tirelessly to snuff out the two-day burning fire. Because of the collective efforts between DEA, its local, state and federal law enforcement counterparts and the U.S. Attorney’s Office, these defendants will spend well-deserved time in prison.”
According to U.S. Attorney Pak, the charges and other information presented in court: Warnock, a multi-convicted felon whose criminal history stretches back to the early 1990s, and Banks, a convicted drug trafficker, conspired to manufacture large quantities of PCP in the basement of a Fairburn, Georgia home.
On July 6, 2013, while Warnock and Banks were working in the laboratory, some of the chemicals ignited and caused the laboratory to catch fire. Over the next two days, the home that concealed the lab burned to the ground. Investigators who responded to the scene of the fire recovered numerous barrels and canisters of chemicals, as well as protective equipment such as suits, gloves, and respiratory masks.
Based on the quantity of chemicals recovered by law enforcement, DEA determined that the illicit lab was one of the largest in the country. DNA taken from some of the protective equipment matched the DNA of Warnock and Banks.
The co-conspirators sentenced by U.S. District Judge Amy Totenberg are:
- Coleman Warnock, 46, of Powder Springs, Georgia, and Compton, California, was sentenced to 15 years in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $85,000. Warnock pleaded guilty to conspiracy to possess with the intent to distribute and manufacture phencyclidine on March 27, 2019, and was sentenced on July 23, 2019.
- Adrian Banks, 44, of Douglasville, Georgia, was sentenced to 20 years and two months in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $85,000. Banks pleaded guilty to conspiracy to possess with the intent to distribute and manufacture phencyclidine on August 28, 2014, and was sentenced on June 30, 2017.
This case was investigated by the Drug Enforcement Administration and Georgia Bureau of Investigation. Numerous other state and local agencies, including the former Fulton County Fire & Rescue Department, the Fulton County Police Department, the Georgia State Fire Marshal’s Office, and the Atlanta Fire Department, provided valuable assistance.
Assistant U.S. Attorney Theodore S. Hertzberg and Special Assistant U.S. Attorney Valerie Verduce prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.- Coleman Warnock, 46, of Powder Springs, Georgia, and Compton, California, was sentenced to 15 years in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $85,000. Warnock pleaded guilty to conspiracy to possess with the intent to distribute and manufacture phencyclidine on March 27, 2019, and was sentenced on July 23, 2019.