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19 September 2019
Massive Takedown Targets East County Drug Trafficking NetworksRead the Press Release
NEWS RELEASE SUMMARY – September 19, 2019
SAN DIEGO – Eight indictments were unsealed today in San Diego federal court charging 85 members of drug distribution networks linked to the Sinaloa Cartel, with federal drug trafficking, money laundering and firearms offenses.
During the coordinated takedown that began early this morning, investigators executed over a dozen search warrants and seized approximately four pounds of methamphetamine and two firearms. As of today at 1 p.m., 47 of the 85 defendants are either in federal or state custody. Authorities are continuing to search for 38 defendants. Many of the defendants are scheduled to be arraigned before U.S. Magistrate Judge Allison H. Goddard at 2:00 p.m. tomorrow.
According to the indictments and other publicly filed court documents, this year-long investigation led by the Drug Enforcement Administration and the Internal Revenue Service targeted multiple San Diego-based drug distribution and money laundering networks led respectively by Juan Carlos OCHOA, Rene VALDEZ Jr., Ramon CASTILLO, Michael WRIGHT, Alfonso ARROYO, Douglas BOWEN, Samuel BECERRA, and Javier VERGARA. These affiliated networks supplied multi-kilogram quantities of controlled substances (primarily methamphetamine and heroin but also fentanyl) to dozens of subdistributors located throughout Southern California. These networks were also responsible for laundering tens of thousands of dollars in narcotics proceeds back to Sinaloa Cartel-associated drug traffickers in Mexico. During this investigation, agents coordinated seizures of narcotics and drug proceeds throughout San Diego County and across the United States.
To avoid detection by law enforcement, the defendants also utilized various encrypted communication services like Signal and WhatsApp to communicate among themselves. Despite their sophisticated efforts, law enforcement penetrated this network with a variety of investigative techniques, including physical surveillance, obtaining phone records, financial documents, tracking warrants on telephones and vehicles, and undercover agents. Over the course of the investigation, agents obtained dozens of search warrants and conducted a 10-month-long federal wiretap to track the communications and the location of the defendants. In conjunction with the wiretaps, agents ultimately seized approximately 175 pounds of methamphetamine, heroin, and fentanyl tied to these networks, approximately $50,000 in cash, multiple firearms, and a 2020 Cadillac Escalade (valued at over $115,000).
“Today we sent a message to drug traffickers in our community. If you sell drugs in San Diego, we will find you and prosecute you to the full extent of the law,” said U.S. Attorney Robert Brewer. “I want to congratulate the outstanding federal, state, and local law enforcement cooperation that has resulted in this highly successful investigation. This case represents yet another critical strike against the Sinaloa Cartel and its U.S.-based networks.”
“Today’s operation was about community care taking,” said DEA Special Agent in Charge Karen Flowers. “We took criminals off the street in South County who were selling drugs and committing violent crimes - robberies - home invasions - identity theft - fraud - and other property crimes. The void left is an opportunity for the communities in South County to exhale and breathe in fresh air. Freedom is priceless. Today South County is free to live without a criminal undertone which eroded their daily quality of life.”
“A significant portion of the indictments unsealed today are alleged money laundering conspiracy violations and the asset forfeiture allegations,” stated Assistant Special Agent in Charge Johnathan Smith. “Multiple defendants are charged with conspiracy to commit money laundering violations, a charge which carries a statutory maximum sentence of 20-years imprisonment. These are serious crimes that come with serious time.”
This case was led by the Drug Enforcement Administration’s Narcotics Task Force (NTF) and the Internal Revenue Service. The NTF is a DEA-led task force comprised of federal and local law enforcement from the DEA, San Diego County Sheriff’s Department (SDSD), the San Diego Police Department (SDPD), United States Border Patrol (USBP), and the San Diego County Probation Office. Agents and officers from the United States Marshals Service, United States Secret Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Prisons also provided vital assistance for the investigation. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, likewise provided critical work as part of the investigative team.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The United States is represented in court by Assistant U.S. Attorneys Matthew J. Sutton, and Mario J. Peia.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Defendant Information
19-cr-3624-CAB Indictment - Click HERE
Defendants Criminal Case No: 19-cr-3624-CAB
Defendant Number
Name
Hometown
1
Juan Carlos Ochoa
El Cajon, CA
2
Belinda Maria Menke
El Cajon, CA
3
Oscar Clemente-Perez
El Cajon, CA
4
Anton Dockery
El Cajon, CA
5
Amira Novelo-Torres
Tijuana, MX
6
Guillermo Castellano
El Cajon, CA
7
Monica Alcantar
El Cajon, CA
8
Alberto Frayre
Chula Vista, CA
9
Ivan Rodriguez
El Cajon, CA
10
Brian Perin
San Diego, CA
11
Edward DiBartola
San Diego, CA
12
Juanita Ortiz
El Cajon, CA
13
Lorena Torres
El Cajon, CA
14
Marcus Dewayne Caldwell
San Diego, CA
15
Candace Marie Spears
San Diego, CA
16
Eduardo Lerma
El Cajon, CA
17
Gene Fitzgerald
San Diego, CA
18
Melissa Young
San Diego, CA
19
Jessie Avina
El Cajon, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3625-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3625-CAB
Defendant Number
Name
Hometown
1
Alfonso Arroyo
San Diego, CA
2
James Anthony Tate
San Diego, CA
3
Alice Chairez
San Diego, CA
4
Zena Marie Gonzalez
San Diego, CA
5
Steven Geiss
San Diego, CA
6
Tommy Diego Duenas
San Diego, CA
7
Josephina Hernandez
San Diego, CA
8
Kajlid Jafar Wilks
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Possession with Intent to Distribute Methamphetamine (21 U.S.C. § 841(a)(1))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3626-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3626-CAB
Defendant Number
Name
Hometown
1
Samuel Becerra
San Diego, CA
2
Gabrielle Logue
San Diego, CA
3
Kelly Daniels
San Diego, CA
4
Larry Meisner
San Diego, CA
5
Walter Kuttner
Spring Valley, CA
6
Kelly Jean Kelly
San Diego, CA
7
Kurt Roiz
San Diego, CA
8
Rodolfo Andrade
Chula Vista, CA
9
Alfredo Gomez
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3627-CAB Inictment - Click HEREDefendants Criminal Case No: 19-cr-3627-CAB
Defendant Number
Name
Hometown
1
Douglas Bowen
San Diego, CA
2
Erick Cifuentes
San Diego, CA
3
John Bordwell Jr.
San Diego, CA
4
Raya Jaye Kimball
San Diego, CA
5
Stephen Robert Chavez
San Diego, CA
6
Robert David Houser
San Diego, CA
7
Justin Scott Baker
San Diego, CA
8
Janette Lee Taylor
San Diego, CA
9
Emilio Vanegas
San Diego, CA
10
Christopher Nobis
San Diego, CA
11
Maximino Padilla
San Diego, CA
12
Erika Marlene Ramirez-Ramirez
San Diego, CA
13
Heaven Rapp
San Diego, CA
14
Shelley Marie Cobb
San Diego, CA
15
Sarrah Jean Kent
San Diego, CA
16
David Hopkins
San Diego, CA
17
Matthew Bogan
San Diego, CA
18
Emily Uscanga
San Diego, CA
19
Michael Bowen
Colorado Springs, CA
20
Edson Garcia
San Diego, CA
21
Brandon Brooks
San Diego, CA
22
Raheem Jackson
San Diego, CA
23
Heather Kieley
San Diego, CA
24
Yvette Romero
San Diego, CA
25
Bobby Lee Crisp
San Diego, CA
26
Dario Navarro
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Felon in Possession of a Firearm (18 U.S.C. § 922(g)(1))
Importation of a Controlled Substance (21 U.S.C. §§ 952, 960 and 963)
Possession with Intent to Distribute Methamphetamine (21 U.S.C. § 841(a)(1))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3628-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3628-CAB
Defendant Number
Name
Hometown
1
Ramon Castillo
San Diego, CA
2
Samuel Jones
San Diego, CA
3
Julio Noriega
San Diego, CA
4
Johanna Trujillo
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3629-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3629-CAB
Defendant Number
Name
Hometown
1
Rene Valdez Jr.
San Diego, CA
2
Araceli S. Lomeli
San Diego, CA
3
David Valdez
San Diego, CA
4
Robert Tate Allen
San Diego, CA
5
Sergio Eduardo Gutierrez Martinez
Tijuana, MX
6
Milton Perez Cruz
Tijuana, MX
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3630-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3630-CAB
Defendant Number
Name
Hometown
1
Javier Vergara
San Diego, CA
2
Raul Alonso Varela-Ruiz
San Diego, CA
3
Michelangelo Becerra
San Diego, CA
4
Candice Harrington
San Diego, CA
5
Amanda Bitticks
San Diego, CA
6
Eduardo Pardo
San Diego, CA
7
Rose Velasquez
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3631-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3631-CAB
Defendant Number
Name
Hometown
1
Michael Wright
San Diego, CA
2
Rhiannon Hiller
San Diego, CA
3
Michael Branch
San Diego, CA
4
Bryan Carlton
San Diego, CA
5
Charles Moore
San Diego, CA
6
Sara Syverson
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
AGENCIES
Drug Enforcement Administration, Narcotics Task Force
Internal Revenue Service - Criminal Investigation
San Diego County Sheriff’s Department
United States Marshals Service
United States Border Patrol
United States Secret Service
United States Bureau of Alcohol, Tobacco, Firearms and Explosives
Federal Bureau of Prisons
San Diego Police Department
El Cajon Police Department
Chula Vista Police Department
San Diego County Probation Office
San Diego County District Attorney’s Office
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
U.S. Attorney’s Office for the District of Alaska
U.S. Attorney’s Office for the District of Colorado
Maryland Residents Facing Federal Charges for Stealing over $820,000 in V.A. Benefits Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment charging Angela Marie Farr, a/k/a Angela Pace, Angela Mullins, and Angela Biggs, age 33, of Leonardtown, Maryland; Michael Vincent Pace, age 39, of Leonardtown, Maryland, and Mary Francis Biggs, age 62, of Lexington Park, Maryland with conspiracy and theft of government property. Farr was also charged with aggravated identity theft and social security fraud.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge of the Mid-Atlantic Field Office Kim R. Lampkins for the U.S. Department of Veterans Affairs Office of Inspector General; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General.
The five-count indictment alleges that Farr served as the organizer of a conspiracy in which she submitted false and fraudulent documents to the Department of Veterans Affairs (“VA”) claiming that Farr, her then-husband, Michael Pace, and her father, Individual 1, were homebound and required full-time assistance and disability compensation. Farr’s mother, Mary Biggs, conspired with Farr to file fraudulent documents on behalf of Individual 1, and, when Farr so exaggerated Individual 1’s disabilities that the VA determined that Individual 1 could not handle his own finances, appointed Biggs as Individual 1’s fiduciary.
Angela Marie Farr was a member of the United States Navy from August 2, 2005 to April 19, 2007. On October 6, 2009, Farr received a service-connected disability rating of 70% based on fraudulent documentation she submitted, which purported that she suffered from post-traumatic stress disorder from an incident in which she was raped by another serviceman. Farr admitted to local law enforcement to fabricating the incident. Farr also claimed to the VA that she suffered a traumatic brain injury from an on-duty car accident, which was also determined to be a fabrication. Ultimately, the VA increased Farr’s service-connected disability rating to 100% based on additional fraudulent documentation she submitted. As a result, Farr received approximately $390,000 from the VA to which she was not entitled.
Farr is also charged with stealing the identity of a physician identified in the indictment as “Doctor 1” when she submitted forged documents to the VA purportedly authored by that physician. Farr is also charged with social security fraud for fraudulently receiving $35,000 in Social Security Disability Insurance benefits for her claimed disabilities.
Michael Vincent Pace was a member of the United States Army from August 30, 2001, to February 2, 2002, and from January 4, 2005, to June 2, 2006, as well as the United States Army National Guard from May 22, 2007, to October 28, 2007. Pace and Farr were married from 2008 until they divorced on December 5, 2017. Pace was deemed to be 100% disabled by the VA, based on fraudulent medical documentation submitted to the VA. Despite claiming to be profoundly disabled, Pace also received a Caregiver Assistance stipend from the VA exceeding $2,500 per month for purportedly caring for Farr. As a result, Pace received approximately $274,000 from the VA to which he was not entitled.
Mary Francis Biggs was Farr’s mother, and the wife of Individual 1. Individual 1 was a member of the United States Navy from January 29, 1974, to January 31, 1997, and is Farr’s father. Individual 1 received a 100% service-connected disability rating by the VA based on fraudulent documentation Farr and Biggs submitted on his behalf.
On July 5, 2017, the VA determined, based on fraudulent documentation, that Individual 1 was not capable of managing his finances because of his purported disabilities, and appointed Biggs as Individual 1’s fiduciary. As such, Biggs was responsible for the receipt and expenditure of Individual 1’s fraudulently obtained VA benefits funds. As a result, Biggs and Individual 1 received approximately $156,000 in disability compensation and SMC to which they were not entitled. Biggs conspired with Farr to hide from the VA the fact that Individual 1 was capable of working, and was in fact actively employed.
Farr, Pace, and Individual 1 purported to be wheelchair-bound and to require in-home nursing to accomplish everyday tasks due to their claimed service-connected injures. However, during the period they were purportedly disabled, Farr operated a social media marketing company based in Leonardtown, Maryland, Pace raised his three children and regularly exercised at a local CrossFit gym, and Individual 1 was employed as a division head at the Naval Air Warfare Center Aircraft Division in Patuxent River, Maryland.
If convicted, Farr faces a mandatory minimum of 2 years in federal prison and a maximum sentence of 10 years in prison; Biggs and Pace face a maximum sentence of 10 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the VA-OIG and the SSA-OIG for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael Davio, who is prosecuting the case.
# # #
Many felon sent to federal prison for drug and firearm chargesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Jakey P. Sepulvado, 26, of Shreveport, was sentenced Wednesday by Chief U.S. District Judge S. Maurice Hicks Jr. to 130 months in prison for illegally possessing drugs and a firearm.
Sepulvado pleaded guilty on June 13, 2019, to possessing methamphetamine with the intent to distribute and to possessing a firearm in furtherance of a drug trafficking crime. According to information presented in court, DeSoto Parish Sheriff’s deputies observed Sepulvado make a traffic violation on October 2, 2018, and attempted to stop his vehicle. Instead of stopping, Sepulvado sped away, wrecked the car and fled on foot, but was later located and arrested. When the deputies searched his clothing and vehicle, they found methamphetamine and a Taurus, Model 85, .38-caliber revolver and eight rounds of ammunition.
Sepulvado has a prior felony conviction for attempted simple robbery. Under federal law, felons are not allowed to possess firearms and ammunition.
The DEA, ATF and DeSoto Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Leon H. Whitten and Earl M. Campbell prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Manhattan U.S. Attorney Announces Indictment of New Jersey Man for Terrorist Activities on Behalf of Hizballah’s Islamic Jihad OrganizationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that ALEXEI SAAB, a/k/a “Ali Hassan Saab,” a/k/a “Alex Saab,” a/k/a “Rachid,” was charged today in a nine-count Indictment for offenses related to his support for Hizballah and separate marriage-fraud offenses. SAAB was arrested July 9, 2019, in New York, New York, pursuant to a criminal complaint, and remains detained. The case is assigned to U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As a member of the Hizballah component that coordinates external terrorist attack planning, Alexei Saab allegedly used his training to scout possible targets throughout the U.S. Even though Saab was a naturalized American citizen, his true allegiance was to Hizballah, the terrorist organization responsible for decades of terrorist attacks that have killed hundreds, including U.S. citizens and military personnel. Thankfully, Saab is now in federal custody, and faces significant prison time for his alleged crimes.”
Assistant Attorney General John C. Demers said: “According to the allegations, while living in the United States, Saab served as an operative of Hizballah and conducted surveillance of possible target locations in order to help the foreign terrorist organization prepare for potential future attacks against the United States. Such covert activities conducted on U.S. soil are a clear threat to our national security and I applaud the agents, analysts, and prosecutors who are responsible for this investigation and prosecution.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As alleged, Saab began his training with Hizballah operatives overseas and, while living in the U.S., surveilled multiple locations in major cities. Today’s announcement highlights the persistent efforts of a sophisticated international terrorist organization to scout targets at home and abroad, identifying vulnerabilities, and gathering essential details useful for a future attack. In the city that never sleeps, neither do the FBI agents, detectives, and analysts who work on the JTTF to protect it, and because of their work, Saab’s future surveillances will be limited to a cell. We cannot do this work alone. I would like to thank the countless private security professionals who protect many of these sites, remind them to remain vigilant in order to make the enemy’s job more difficult, and I would ask the general public to continue to report suspicious activity to law enforcement like you have so many times in the past.”
NYPD Commissioner James P. O’Neill said: “Saab operated in the streets of New York as a covert operative for Hizballah, gathering intelligence and sizing up targets for potential attacks on US soil. This case brings us another important piece of the puzzle in our long term investigations into the terrorist groups targeting New York City. I commend the teamwork of the NYPD detectives, FBI agents and all the partner agencies in the Joint Terrorism Task Force”.
According to the Indictment and Complaint unsealed today in Manhattan federal court:[1]
Hizballah is a Lebanon-based Shia Islamic organization with political, social, and terrorist components. Hizballah was founded in the 1980s with support from Iran after the 1982 Israeli invasion of Lebanon, and its mission includes establishing a fundamentalist Islamic state in Lebanon. Since Hizballah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including United States citizens and military personnel. In 1997, the U.S. Department of State designated Hizballah a Foreign Terrorist Organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2001, pursuant to Executive Order 13224, the U.S. Department of Treasury designated Hizballah a Specially Designated Global Terrorist entity. In 2010, State Department officials described Hizballah as the most technically capable terrorist group in the world, and a continued security threat to the United States.
The Islamic Jihad Organization (“IJO”), which is also known as the External Security Organization and “910,” is a component of Hizballah responsible for the planning and coordination of intelligence, counterintelligence, and terrorist activities on behalf of Hizballah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, which killed six people and injured 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, and a seizure of similar chemicals in May 2015 in connection with the arrest of another IJO operative. In June 2017, two IJO operatives were arrested in the United States and charged with terrorism-related offenses in the Southern District of New York. In May 2019, a jury convicted one of those two IJO operatives on all counts.
SAAB joined Hizballah in 1996. SAAB’s first Hizballah operation occurred in Lebanon, where he was tasked with observing and reporting on the movements of Israeli and Southern Lebanese Army soldiers in Yaroun, Lebanon. Among other things, SAAB reported on patrol schedules and formations, procedures at security checkpoints, and the vehicles used by soldiers.
In approximately 1999, SAAB attended his first Hizballah training. The training focused on the use of firearms, and SAAB handled and fired an AK-47, an M16 rifle, and a pistol, and threw grenades. In 2000, SAAB transitioned to membership in Hizballah’s unit responsible for external operations, the IJO, and he then received extensive training in IJO tradecraft, weapons, and military tactics, including how to construct and detonate bombs and other explosive devices. In 2004 and 2005, Saab attended explosives training in Lebanon during which he received detailed instruction in, among other things, triggering mechanisms, explosive substances, detonators, and the assembly of circuits.
In 2000, SAAB lawfully entered the United States using a Lebanese passport. In 2005, SAAB applied for naturalized citizenship and falsely affirmed, under penalty of perjury, that he had never been “a member of or in any way associated with . . . a terrorist organization.” In August 2008, SAAB became a naturalized U.S. citizen.
While living in the United States, SAAB remained an IJO operative, continued to receive military training in Lebanon, and conducted numerous operations for the IJO. For example, SAAB surveilled dozens of locations in New York City – including the United Nations headquarters, the Statue of Liberty, Rockefeller Center, Times Square, the Empire State Building, and local airports, tunnels, and bridges – and provided detailed information on these locations, including photographs, to the IJO. In particular, SAAB focused on the structural weaknesses of locations he surveilled in order to determine how a future attack could cause the most destruction. SAAB’s reporting to the IJO included the materials used to construct a particular target, how close in proximity one could get to a target, and site weaknesses or “soft spots” that the IJO could exploit if it attacked a target in the future. SAAB conducted similar intelligence gathering in a variety of large American cities, including Washington, D.C. The FBI recovered photographs from SAAB’s electronic devices reflecting his surveillance activities, including photographs of New York City landmarks.
In addition to his attack-planning activities in the United States, SAAB conducted operations abroad. For example, SAAB attempted to murder a man he later understood to be a suspected Israeli spy. SAAB pointed a firearm at the individual at close range and pulled the trigger twice, but the firearm did not fire. SAAB also conducted intelligence-gathering for Hizballah in Istanbul, Turkey.
Finally, unrelated to his IJO activities, in July 2012, SAAB married another individual (“CC-1”) so that CC-1 could apply for naturalized citizenship in the United States based on their marriage. On March 13, 2015, SAAB and CC-1 jointly filed a petition seeking to obtain naturalized citizenship for CC-1. In doing so, SAAB and CC-1 falsely claimed under penalty of perjury that their marriage was “not for the purpose of procuring an immigration benefit.”
* * *
SAAB, 42, of Morristown, New Jersey, is charged with providing material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; conspiracy to provide material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; receiving military-type training from a designated foreign terrorist organization, which carries a sentence of 10 years in prison or a fine; conspiracy to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison; unlawful procurement of citizenship or naturalization to facilitate an act of international terrorism, which carries a maximum sentence of 25 years in prison; marriage fraud conspiracy, which carries a maximum sentence of five years; citizenship application fraud, which carries a maximum sentence of 10 years; naturalization fraud, which carries a maximum sentence of five years; and making false statements, which carries a maximum sentence of five years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman and Mr. Demers praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. They also thanked the Counterterrorism Section of the Department of Justice’s National Security Division as well as the Attorney General’s Hezbollah Financing and Narcoterrorism Team.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Michael K. Krouse and Jason A. Richman are in charge of the prosecution, with assistance from Trial Attorneys Bridget Behling and Alexandra Hughes of the Counterterrorism Section.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment and the description of the Complaint and Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Pleads Guilty to Distribution of Crack CocaineRead the Press Release
CONCORD – Darrius Weekly, 25, of Manchester, pleaded guilty in federal court to distributing cocaine base, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between September 17, 2018 and November 7, 2018, law enforcement officers made five separate controlled purchases of cocaine base (also known as crack cocaine) from Weekly in and around Manchester.
Weekly is scheduled to be sentenced on January 10, 2020.
“Crack cocaine endangers the health and safety of our citizens,” said U.S. Attorney Murray. “We are committed to working closely with our law enforcement partners to stop the distribution of this dangerous substance in the Granite State.”
This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Manchester Man Guilty of Lying to Federal Law Enforcement During InterviewRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a jury in New Haven has found FAREED AHMED KHAN, 61, of Manchester, guilty of making a false statement during an interview with federal law enforcement. A trial before U.S. District Judge Jeffrey A. Meyer began on September 16 and the jury returned its verdict this morning.
According to the evidence presented during the trial, Khan was born in Pakistan and became a naturalized U.S. citizen in February 2003. Khan was a member of the Islamic Circle of North America (“ICNA”) and was responsible for collecting cash and check donations to ICNA for its various charitable events. In 2014, the Federal Bureau of Investigation learned that, over the course of approximately eight years, Khan received more than $200,000 in cash deposits into his bank account. Investigators also learned that Khan was transacting with an individual in Pakistan who was arranging for third parties to deposit cash into Khan’s account to fund medical equipment purchases for the individual in Pakistan. Khan then collected the purchased medical equipment, repackaged the items, and shipped them to Pakistan.
On June 26, 2015, the FBI interviewed Khan. During the interview, Khan made multiple false statements, including that he was not affiliated with ICNA, did not know anyone from ICNA, had never collected charitable donations for ICNA, and that the only packages he had ever sent to Pakistan were to his sister and brother and contained clothing.
On October 13, 2015, investigators conducted court-authorized search of Khan’s residence and seized numerous items related to Khan’s role in ICNA. In addition, a search of Khan’s cellular phone revealed WhatsApp messages between Khan and his associate in Pakistan detailing Khan’s involvement in multiple shipments of medical equipment to Pakistan.
At sentencing, Khan faces a maximum term of imprisonment of five years. A sentencing date is not scheduled.
Khan is released on a $50,000 bond.
This matter has been investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, Internal Revenue Service – Criminal Investigation Division, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), U.S. Postal Inspection Service, Federal Air Marshal Service, and Manchester Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Rahul Kale, with the assistance of Trial Attorneys Troy Edwards and David Cora of the Justice Department’s National Security Division.
Man Sentenced for Heroin TraffickingRead the Press Release
RICHMOND, Va. – A Fredericksburg man was sentenced today to 12 years in prison for distributing heroin and fentanyl over a 14-month period.
According to court documents, Aaron J. Talley, 34, conspired with several others to distribute heroin in the Fredericksburg area from January 2018 until March 2019. Federal agents from the FBI, in partnership with the Fredericksburg Police Department, conducted an undercover investigation into Talley’s heroin distribution ring. During 2018, law enforcement working in an undercover capacity set up multiple purchases of heroin from Talley and his associates. In all, the task force conducted 20 undercover buys of heroin, many samples of which, although relatively small in weight, also contained fentanyl.
For sentencing purposes, Talley admitted to distributing between 80–100 grams of heroin as part of the conspiracy. Moreover, for purposes of the federal sentencing guidelines, Talley was determined to be a career offender and a leader or organizer of the conspiracy. As such, the advisory guideline range was substantially increased.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, and David W. Nye, Chief of Fredericksburg Police, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Peter S. Duffey 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. 3:19-cr-66.
Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to charges of mail fraud and acting as an unregistered commodity pool operator, both stemming from his execution of an investment fraud scheme he operated for nearly a decade.
According to court documents, Leonard J. Cipolla, 71, was the founder, owner, and operator of Tate Street Trading, Inc. in Richmond. Between 2009 and 2019, Cipolla solicited more than $7 million in investment funds from more than 30 individuals located in Virginia, New York, and Washington, D.C. Cipolla convinced these individuals to provide him with their savings by assuring the investors that he was a highly experienced, highly successful trader in commodity futures and options. Cipolla promised his investors that he could guarantee them significant fixed rates of return on their investments, and that Cipolla’s management fee would be drawn only from the profits that Cipolla made over and above each investor’s promised rate of return. He also assured investors that Cipolla was qualified to manage tax-deferred retirement accounts, and that he would roll the investor’s existing Individual Retirement Account (IRA) into a Tate Street-managed, tax-deferred IRA. As time passed, Cipolla provided many of his investors with account statements that purported to show the investor’s principal was safely intact, and growing at the promised rate of return.
In reality, Cipolla pooled his investors’ savings as soon as those individuals’ personal checks, IRA roll-overs, and wires were deposited into his bank accounts. Cipolla used only a fraction of those pooled investment funds to trade in the futures market, and he ultimately lost nearly the entire amount of investor funds that he actually invested. Cipolla further dissipated the remainder of his investors’ savings on unauthorized expenses, to include making payments to earlier investors, and paying his own personal expenses.
Cipolla pleaded guilty to charges of mail fraud and unregistered commodity pool operator and faces a maximum penalty of 20 years in prison when sentenced on Jan. 28, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, David W. Archey, Special Agent In Charge of the Richmond Field Office, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorneys Katherine Martin and Thomas Garnett are prosecuting the case.
The U.S. Commodity Futures Trading Commission and the Virginia State Corporation Commission Division of Securities provided significant assistance during this investigation.
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. 3:19-cr-126.
Media AdvisoryRead the Press Release
WHEN: Friday, September 20, 2019 at 1:00pm
WHERE: Vance County Courthouse
156 Church Street
Henderson, North Carolina
Re: USMS Roundup – Operation 310
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the recently completed fugitive roundup in Vance County that has taken place over the last week, called Operation 310. Coordinated by the United States Marshals Service, in partnership with multiple law enforcement agencies including those listed below, these roundup resulted in the arrest of over 25 fugitives in Vance County and the seizure of numerous firearms and U.S. Currency. More information and details about the results of this operation will be provided during the press conference.
The federal, state, and local law enforcement agencies that took part in Operation 310 included: United States Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office, Henderson Police Department, North Carolina Department of Public Safety, North Carolina State Bureau of Investigation, and the Vance County Sheriff’s Office.
In addition to United States Attorney Robert J. Higdon, Jr. and United States Marshal Michael East, it is anticipated members of federal, state and local law enforcement agencies will be present at this event, along with the District Attorney for Vance County, Michael Waters.
Man from Santa Fe County Faces Federal Charges of Being a Felon in Possession of a Firerarm and AmmunitionRead the Press Release
ALBUQUERQUE – Rufino Jody Martinez, 40, of Santa Fe County, N.M., made an initial appearance in federal court today on a criminal complaint charging him with being a felon in possession of a firearm and ammunition.
The charges against Martinez are the result of an FBI-led multi-agency effort to reduce violent crime in northern New Mexico communities. U.S. Attorney John C. Anderson, Special Agent in Charge James C. Langenberg of the FBI Albuquerque Division, New Mexico State Police Chief Tim Johnson, and Santa Fe County Sheriff Adan Mendoza announced the results of the multi-agency collaboration today in a series of press releases.
“Reducing violent crime in America is one of the Department of Justice’s highest priorities,” said First Assistant U.S. Attorney Fred Federici. “The U.S. Attorney’s Office is committed to working with our federal, state, and local law enforcement partners to protect the safety of New Mexicans by dismantling the violent criminal organizations that are responsible for so much of the violence in our communities, jails, and prisons.”
“The FBI has been working closely with our law enforcement partners for years to weaken and eventually eliminate this violent prison gang, arresting approximately 160 of its members and associates,” said Special Agent in Charge James C. Langenberg. “This latest arrest should send a clear message that those who plot to undermine the security of our communities and correctional system will be held accountable.”
“Today’s operation should make citizens of New Mexico proud in that many law enforcement agencies worked together for a common goal; to eliminate violent career criminals from our communities,” said New Mexico State Police Chief Tim Johnson. “80 New Mexico State Police officers were assigned to take part in today’s successful operation. The New Mexico State Police is excited to be part of the Violent Crimes Task Force. New Mexico State Police will continue to work together with law enforcement partners and conduct proactive police operations, targeting the most dangerous criminals in New Mexico. The New Mexico State Police is committed to addressing the concerns of New Mexicans impacted by crime.”
“Working in collaboration with local and federal law enforcement agencies is an important aspect of public safety, said Sheriff Mendoza. “This operation and arrest is a collaborative effort to enforce current state and federal gun laws to ensure that those who unlawfully posses firearms and terrorize our communities will be brought to justice.” According to the criminal complaint, Martinez allegedly committed this offense on October 24, 2018. The complaint alleges Martinez went to a residence in Cuarteles, N.M., where he shot another man in the groin. The victim drove himself to the hospital and received medical attention following the shooting. Martinez allegedly also possessed additional ammunition at his home on this date. Martinez was prohibited from possessing a firearm or ammunition based on previous felony convictions for aggravated battery, battery upon a police officer, attempted robbery, and possession of controlled substances.
Martinez is currently in custody awaiting trial. He faces up to 10 years in prison if convicted of the charged offense. A complaint is only an accusation. A criminal defendant is presumed innocent until proven guilty.
The Albuquerque office of the FBI investigated this case with the New Mexico State Police, New Mexico Corrections Department, and Santa Fe County Sheriff’s Office. Assistant U.S. Attorneys from the Las Cruces Branch Office are prosecuting the case as part of the OCDETF Program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Man from Las Vegas, N.m. Faces Federal Charges of Cocaine Possession and RobberyRead the Press Release
ALBUQUERQUE – Gary Coca, 46, of Las Vegas, N.M., appeared in federal court in Albuquerque today on a federal complaint charging him with possession with intent to distribute cocaine and robbery by interference with commerce by threats or violence.
The charges against Coca are the result of an FBI-led multi-agency effort to reduce violent crime in northern New Mexico communities. U.S. Attorney John C. Anderson, Special Agent in Charge James C. Langenberg of the FBI Albuquerque Division, New Mexico State Police Chief Tim Johnson, Las Vegas (New Mexico) Police Chief David T. Bibb, and Richard Flores, District Attorney for the Fourth Judicial District of New Mexico, announced the results of the multi-agency collaboration today in a series of press releases.
“Reducing violent crime in America is one of the Department of Justice’s highest priorities,” said First Assistant U.S. Attorney Fred Federici. “The U.S. Attorney’s Office is committed to working with our federal, state, and local law enforcement partners to protect the safety of New Mexicans by dismantling the violent criminal organizations that are responsible for so much of the violence in our communities, jails, and prisons.”
“The FBI has been working closely with our law enforcement partners for years to weaken and eventually eliminate this violent prison gang, arresting approximately 160 of its members and associates,” said Special Agent in Charge James C. Langenberg. “This latest arrest should send a clear message that those who plot to undermine the security of our communities and correctional system will be held accountable.”
“Today’s operation should make citizens of New Mexico proud in that many law enforcement agencies worked together for a common goal; to eliminate violent career criminals from our communities,” said New Mexico State Police Chief Tim Johnson. “80 New Mexico State Police officers were assigned to take part in today’s successful operation. The New Mexico State Police is excited to be part of the Violent Crimes Task Force. New Mexico State Police will continue to work together with law enforcement partners and conduct proactive police operations, targeting the most dangerous criminals in New Mexico. The New Mexico State Police is committed to addressing the concerns of New Mexicans impacted by crime.”
“I’ve often said that when different agencies work in a collaborated effort, great things can happen,” said District Attorney Flores. “I am very thankful to the United States Attorney’s Office and the FBI for spearheading this operation. It’s helped in making our community that much safer.”
According to the criminal complaint, police in Las Vegas, N.M., stopped Coca for driving erratically on May 2, 2019. Coca and a passenger allegedly ran from the vehicle and officers chased after them. During the chase, Coca allegedly took off his jacket and left it behind as he jumped a fence. Coca got away, but police located his jacket and searched it. They allegedly found a plastic bag containing about 13.5 grams of crack cocaine and a digital scale.
According to the criminal complaint, Coca allegedly went into a home improvement store in Albuquerque on August 7, 2019. He allegedly selected about $1003 worth of merchandise and went to leave the store without paying. When security tried to stop Coca, he allegedly pulled a handgun from his waistband and pointed it at a store employee. Coca got away in his car. Police officers from the Pueblo of Sandia arrested Coca on August 14, 2019.
Coca is currently in custody pending trial. He faces up to 20 years in prison for the drug and robbery offenses. A complaint is only an accusation and a defendant is presumed innocent until proven guilty.
The Albuquerque Office of the FBI investigated this case with assistance from the Albuquerque Police Department, Las Vegas Police Department, Sandia Police Department, and New Mexico State Police, with assistance from the 4th Judicial District Attorney’s Office. Assistant U.S. Attorneys Maria Armijo and Randy Castellano are prosecuting the case.
Local Man Guilty of Escaping from CustodyRead the Press Release
HOUSTON – A 37-year-old resident of Houston has entered a guilty plea to federal charges stemming from his escape from custody, announced U.S. Attorney Ryan K. Patrick.
Anthony Brown Jr. was convicted of being a felon in possession of a firearm in 2009 and has been in custody since that time.
On April 8, 2019, Brown was placed in a local half-way house to complete that sentence. A few weeks later, during a regular accountability check, officials discovered he was missing. They discovered he did not have permission to leave or absence himself from custody and opened a fugitive investigation.
Authorities conducted a stop May 3 near Pinemont street on U.S. highway 290 after a vehicle had committed a traffic violation. Brown was driving. They immediately discovered who he was and took him into custody.
During the search of his vehicle, officers found a semi-automatic handgun hidden behind the glove box.
U.S. District Judge Alfred H. Bennett accepted the plea and will set sentencing at a later date. At that time, Brown faces up to five more years in federal prison and a possible $250,000 maximum fine.
The U.S. Marshals Service, Texas Department of Public Safety and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation and arrest. Assistant U.S. Attorney Joe Porto prosecuted the case.
Leader of New Jersey Gang and Associate Charged with Distributing Heroin and Fentanyl in Prison, Resulting in Inmate OverdoseRead the Press Release
NEWARK, N.J. – Two Hudson County men were charged for their alleged roles in trafficking heroin and fentanyl into a New Jersey state prison, which resulted in an inmate’s overdose, U.S. Attorney Craig Carpenito announced today.
Noel Salgado, 39, a/k/a “Kuko,” and Rodgerick Garrett, 38, a/k/a “50,” a/k/a “Fif,” a/k/a “Boo,” both of Jersey City, New Jersey, were each charged by indictment with one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of distribution and possession with intent to distribute heroin and fentanyl, which resulted in serious bodily injury to a person. Both men are scheduled to appear Sept. 30, 2019, for arraignment before U.S. District Judge Brian R. Martinotti.
According to the indictment, other documents filed in this case, and statements made in court:
Salgado is the leader of the “Loyal Hoody Gang” subset of the Neighborhood Rolling 20 Bloods, a nationwide street gang. While incarcerated as an inmate at Bayside State Prison, Salgado directed other gang members and associates to provide narcotics proceeds to him and his associates and to smuggle narcotics and other contraband into prison.
On Oct. 17, 2015, Salgado called Garrett from prison to arrange for the purchase and smuggling into the prison of heroin and fentanyl. A third conspirator picked up the narcotics from Garrett and smuggled them to Salgado on Oct. 18, 2015. The following day, an inmate to whom Salgado had distributed the narcotics was found unresponsive in his cell suffering from a drug overdose. The inmate only regained consciousness after medical personnel administered an opiate antidote to revive the inmate, who was hospitalized for two days following his overdose.
The charge of distribution and possession with intent to distribute heroin and fentanyl, which resulted in serious bodily injury, carries a mandatory minimum penalty of 20 years in prison, and a maximum potential penalty of life in prison, and a $1 million fine. The conspiracy charge carries a maximum potential penalty of 20 years in prison.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and investigators with the N.J. Department of Corrections, Special Investigations Division, under the direction of Acting Commissioner Marcus O. Hicks, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Christopher D. Amore and Elaine K. Lou of the U.S. Attorney’s Office in Newark.
Las Vegas Man Sentenced to Two Years in Prison for Possession of 65 Firearms Stolen from A Gun ShowRead the Press Release
LAS VEGAS, Nev. – A trade show worker who pleaded guilty to stealing 65 firearms (including machine guns and silencers) from the 2019 Shooting, Hunting, and Outdoor Trade (SHOT) show in Las Vegas was sentenced today to two years in federal prison followed by two years of supervised release, announced United States Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Jamikko Foster, 27, of Las Vegas, pleaded guilty in June 2019, to one count of theft of a firearm from a Federal Firearms Licensee (FFL) and one count of unlawful possession of a machine gun. United States District Judge Richard F. Boulware II presided over the sentencing hearing.
Foster admitted that, from January 20 to 29, 2019, he stole 65 firearms and suppressors (known as “silencers”) from four separate FFLs at the SHOT show. Among the 65 stolen firearms were 18 handguns, six rifles, three machine guns, one short barreled rifle, and 35 suppressors. On February 11, 2019, after the investigation identified Foster as one of the suspects in the theft, police obtained and executed search warrants for Foster’s residence and vehicle. During the execution of the warrants, all the stolen firearms (and all but two suppressors) were recovered.
Co-defendant Eduardo Limon, 28, pleaded guilty to the charges and is scheduled to be sentenced on October 24, 2019.
The case was investigated by ATF’s Las Vegas Field Office and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Peter S. Levitt prosecuted the case.
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Lafayette felon sentenced to federal prison for illegally possessing a firearmRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that Jeremy C. Melancon, 36, of Lafayette, was sentenced by U.S. District Judge Robert R. Summerhays to 27 months in federal prison followed by two years of supervised release for possessing a firearm as a convicted felon. Melancon previously pleaded guilty on June 10, 2019.
According to information presented in court, Lafayette police officers responded to a call on May 7, 2018, at Melancon’s home and neighbors informed them that Melancon had lost his temper and fired a gun into the ground. Officers spoke to Melancon, who admitted to firing one shot into the ground. Officers also spoke to Melancon’s wife, who said she owned certain firearms but secured them in a shed she owned on the property. Officers found spent shell casings on the ground where Melancon admitted to firing the gun and determined that the guns belonging to Melancon’s wife did not match the shell casings.
The police officers left the scene, but on May 10, 2018, a neighbor who lives next door to Melancon, called police and reported that she had found a gun in her flowerbed. An ATF forensic examination matched the Smith & Wesson, Model M&P Bodyguard, .380-caliber pistol that was found in the flowerbed with the shell casings found on the night of May 7, 2018.
Melancon is a convicted felon who pleaded guilty on October 27, 2005, to distribution of cocaine in the Louisiana 15th Judicial District Court. He was sentenced to seven years of hard labor. Under federal law, a felon is not allowed to possess a firearm or ammunition.
The ATF and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department Files Lawsuit Against City of Troy, Michigan, for Restrictions on Muslim Religious Group Trying to Establish a Place to WorshipRead the Press Release
The Justice Department today announced that it has filed a lawsuit against the City of Troy, Michigan, alleging that the City violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) by treating places of worship worse than equivalent nonreligious assemblies in its zoning code and denying zoning approval to a Muslim group seeking to establish a place of worship.
“Zoning laws that treat mosques, churches, synagogues, and other religious assemblies less favorably than nonreligious assemblies illegally restrict religious exercise in violation of the Religious Land Use and Institutionalized Persons Act,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division of the Department of Justice. “The Department of Justice is committed to ensuring that local governments do not discriminate against faith communities in violation of federal law.”
“Troy is obligated to treat religious assemblies and institutions on equal terms with nonreligious assemblies and institutions,” said Matthew Schneider, United States Attorney for the Eastern District of Michigan. “This complaint reflects our commitment to protect the religious liberties of all people in this district.”
The complaint, filed in the Eastern District of Michigan, alleges that in 2018 the City of Troy (City) denied zoning approval to Adam Community Center, an organization of Muslims who live and work in Troy, to operate a place of worship. In 2018, after a nine-year search for a permanent location in Troy, the Center acquired a building in one of the City’s commercial districts to use as a community center and place of worship. The City’s zoning laws allow a nonreligious place of assembly, such as a theater or banquet hall, to use the same building without further approval. But because of zoning restrictions on places of worship, the Center had to overcome an additional hurdle and seek City approval to use the building.
On June 19, 2018, Troy’s zoning board denied the Center’s application. The complaint alleges that the City’s denial of approval for the Center, and its unequal treatment of all places of worship in the City compared to nonreligious uses, violate a provision of RLUIPA that requires religious assemblies to be treated at least as well as nonreligious assemblies. The suit also alleges that the City’s actions imposed a substantial burden on the Center’s religious exercise in violation of another provision of RLUIPA.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Justice Department Files Lawsuit Against City of Troy, Michigan, for Restrictions on Muslim Religious Group Trying to Establish A Place to WorshipRead the Press Release
The Justice Department today announced that it has filed a lawsuit against the City of Troy, Michigan, alleging that the City violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) by treating places of worship worse than equivalent nonreligious assemblies in its zoning code and denying zoning approval to a Muslim group seeking to establish a place of worship.
“Zoning laws that treat mosques, churches, synagogues, and other religious assemblies less favorably than nonreligious assemblies illegally restrict religious exercise in violation of the Religious Land Use and Institutionalized Persons Act,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division of the Department of Justice. “The Department of Justice is committed to ensuring that local governments do not discriminate against faith communities in violation of federal law.”
“Troy is obligated to treat religious assemblies and institutions on equal terms with nonreligious assemblies and institutions,” said Matthew Schneider, United States Attorney for the Eastern District of Michigan. “This complaint reflects our commitment to protect the religious liberties of all people in this district.”
The complaint, filed in the Eastern District of Michigan, alleges that in 2018 the City of Troy (City) denied zoning approval to Adam Community Center, an organization of Muslims who live and work in Troy, to operate a place of worship. In 2018, after a nine-year search for a permanent location in Troy, the Center acquired a building in one of the City’s commercial districts to use as a community center and place of worship. The City’s zoning laws allow a nonreligious place of assembly, such as a theater or banquet hall, to use the same building without further approval. But because of zoning restrictions on places of worship, the Center had to overcome an additional hurdle and seek City approval to use the building.
On June 19, 2018, Troy’s zoning board denied the Center’s application. The complaint alleges that the City’s denial of approval for the Center, and its unequal treatment of all places of worship in the City compared to nonreligious uses, violate a provision of RLUIPA that requires religious assemblies to be treated at least as well as nonreligious assemblies. The suit also alleges that the City’s actions imposed a substantial burden on the Center’s religious exercise in violation of another provision of RLUIPA.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Johnstown Man Pleads Guilty to Possessing Multiple DrugsRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws United States Attorney Scott W. Brady announced today.
Derrick L. Harper, Jr., 26, pleaded guilty to three counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Nov. 27, 2018, Harper possessed with intent to distribute a quantity of cocaine base, in the form commonly known as crack, fentanyl and cocaine.
Judge Gibson scheduled sentencing for February 6, 2020, at 1:30 p.m. The law provides for a maximum total sentence of 60 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Johnstown Police Department conducted the investigation that led to the prosecution of Harper.
Harrison County man admits to drug and firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA –Richard Warren Wilkinson, of Salem, West Virginia, has admitted to maintaining a drug house and a firearms charge, United States Attorney Bill Powell announced.
Wilkinson, age 40, pled guilty to one count of “Unlawful Possession of a Firearm as a Drug User” and one count of “Maintaining Drug-Involved Premises.” Wilkinson, who is prohibited from having a firearm, admitted to having a 9mm pistol and a rifle in Harrison County in August 2015. Wilkinson also admitted to maintaining a home on Lick Run Road in Salem, West Virginia to manufacture, store, and distribute marijuana from March to August 2015.
Wilkinson faces up to 10 years incarceration and a fine of up to $250,000 for the firearms charge and faces up to 20 years incarceration and a fine of up to $500,000 for the drug charge. 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 Andrew R. Cogar is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Greenville Business Owner Convicted in Federal Court of Conspiracy to DefraudRead the Press Release
Greenville, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Dana Q. Roush, age 38, of Greenville, was found guilty of a conspiracy to commit mail fraud and equity skimming. A federal jury returned guilty verdicts late Wednesday evening after an hour and a half of deliberation. United States District Judge Timothy M. Cain of Anderson received the verdicts and will sentence Dana Roush and her husband Michael “Bubba” Roush,” who pleaded guilty to the mail fraud conspiracy prior to trial, after reviewing a Presentence Investigation Report which will be prepared by the United States Probation Office.
Evidence presented at trial showed that Dana and Bubba Roush owned and operated Kingdom Connected Investments, LLC (“KCI”). They marketed their company as a Christian organization and promised to create “win-win” situations for home sellers and buyers. They sought homeowners who often owed more on their home than the property was worth, and buyers who lacked good credit and thus could not obtain a conventional mortgage.
KCI promised to relieve the homeowner from the burdens of mortgage payments by “buying” the home and placing a buyer in the home who would rent-to-own. KCI promised to make all the sellers’ mortgage payments. KCI misled sellers to believe that they would be immediately removed from the property’s title and that they were no longer responsible for the original loan.
KCI promised buyers an easy road to homeownership. In exchange for the down payment (typically 10 percent of the purchase price), the buyers were told that they were renting-to-own and building up equity. KCI further concealed from the buyers that a third party—the seller—had an existing mortgage on the property that KCI was responsible for paying.
Rather than using the down payments and rents received from the buyers to pay the sellers’ mortgage payments, Bubba and Dana Roush used the money for personal expenses and to expand their real estate business.
The sellers, many of whom believed they were off the title and note, received foreclosure notices. They learned that KCI, despite having a renter in the home, had stopped paying on the mortgage. Buyers often learned they had no real ownership interest when the home was purchased by a third-party at a foreclosure sale and the new owner started eviction proceedings.
Victims of the scheme suffered myriad injuries including loss of money, dreams, and ruined credit. Special Agent Matt Jacobson of the Federal Bureau of Investigation testified that KCI received $2.6 million from buyers and only paid $1.4 million in mortgage payments. Approximately 130 properties were involved in the scam, and Agent Jacobson testified that in only two instances did a buyer actually become a homeowner and a seller not face foreclosure and ruined credit.
“Protecting South Carolinians from financial fraud is one of our top priorities,” said U.S. Attorney Lydon. “Dana and Bubba Roush lined their own pockets by preying on distressed homeowners and families hoping to achieve the American dream of home ownership. The U.S. Attorney’s Office will vigorously investigate and prosecute individuals like the Roushes who make false representations to enrich themselves at the expense of others.”
“This verdict is the result of excellent work by FBI Special Agents, prosecutors from the United States Attorney’s Office and investigators from the Department of Housing and Urban Development. I commend them all. These schemes, based on absolute greed, prey on the vulnerable by perverting trust. The FBI will continue to work with our partners to track down such schemes and bring those responsible to justice,” said FBI Special Agent in Charge Jody Norris.
In addition to the FBI, Department of Housing and Urban Development, Office of Inspector General (HUD OIG) participated in the investigation. Nadine E. Gurley, Special Agent in Charge at HUD, stated “HUD OIG is dedicated to protecting HUD from individuals seeking to defraud the Federal Housing Administration (FHA) program. HUD OIG will continue to partner with other federal, state and local authorities to ensure that corrupt individuals do not use their positions to enrich themselves at the government’s expense. We remain steadfast in working with the U.S. Department of Justice to pursue any unscrupulous individuals who attempt to defraud our programs for their own personal enrichment.”
The maximum sentence the Roushes face is imprisonment for 20 years, a fine of $250,000, and supervised release for three years. Special Assistant United States Attorney Ian Conits and Assistant United States Attorney Bill Watkins of the Greenville office prosecuted the case on behalf of the Government.
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Grand Jury Returns Three IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
New Richmond Man Charged with Mortgage Fraud Scheme
Aston Wood, 55, New Richmond, Wisconsin, is charged with four counts related to an alleged mortgage fraud scheme. The indictment charges that Wood engaged in a scheme to defraud from September 2015 to July 2019. He is charged with one count of wire fraud, one count of mail fraud, one count of bankruptcy fraud, and one count of criminal contempt of court.
The indictment alleges that Wood represented to owners of homes in foreclosure that he could help them stay in their home by obtaining refinancing or modification of their mortgage, and that he instructed customers to make monthly mortgage payments towards a new or modified loan in an amount he selected, payable to him or to a limited liability company of which he was the sole member. The indictment alleges that rather than remit the payments to lenders as promised, Wood instead deposited the payments in bank accounts he controlled and used the funds for his own personal expenses.
The indictment further alleges that Wood offered to help some customers buy back their foreclosed property, and he continued to solicit and receive funds from customers or their families based on false representations that the funds would be used to repurchase the property. In addition, the indictment alleges that Wood told some customers to file for bankruptcy to stall foreclosure proceedings, which allowed Wood to delay detection and continue collecting monthly mortgage payments from customers.
The fourth count of the indictment alleges that Wood disobeyed a lawful order of a Court of the United States, an injunction issued on October 24, 2017, by U.S. Bankruptcy Judge Catherine J. Furay in the Western District of Wisconsin, which permanently enjoined Wood from soliciting customers, offering to perform, and performing services related to mortgage foreclosure and debt relief.
If convicted, Wood faces a maximum penalty of 20 years in federal prison on both the wire fraud charge and the mail fraud charge, and five years on the bankruptcy fraud charge. The criminal contempt of court charge has no maximum penalty; the penalty is at the Court’s discretion.
The charges against Wood are the result of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Housing Finance Agency – Office of Inspector General. The U.S. Attorney’s Office acknowledges the assistance of the Office of the U.S. Trustee. Assistant U.S. Attorney Meredith Duchemin is handling the prosecution.
Clark County Man Charged with Methamphetamine Crime
Keith Strong, 49, Thorp, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on June 30, 2019.
If convicted, Strong faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Chippewa County Sheriff’s Office and the Drug Enforcement Administration. Special Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Middleton Man Charged with Distributing Cocaine
Cameron A. Bates, 30, Middleton, Wisconsin, is charged with five counts of distributing cocaine. The indictment alleges that he distributed cocaine on five occasions in July and August 2019.
If convicted, Bates faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Madison Police Department and the Dane County Narcotics Task Force, with the assistance of the Middleton Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Georgia Man Sentenced to Four Years for Credit Card Fraud and Identity Theft at Resort and Theme ParksRead the Press Release
Orlando, FL – U.S. District Judge G. Kendall Sharp today sentenced Melvin Mack Gatlin (34, Tucker, GA) to four years in federal prison for committing credit card fraud and identity theft while visiting Orlando in early April 2018. The court also ordered Gatlin to forfeit the computer and credit card encoder he had used to commit the offense and, to pay $7,184.24 in restitution to his victims. Gatlin had pleaded guilty on June 17, 2019.
According to court documents, on April 1, 2018, Gatlin used a fake driver license and a counterfeit credit card, in the name of a victim, R.P., to check into a resort hotel. The following day, using the fake driver license and a counterfeit credit card, he purchased 11 theme park tickets. On April 3, 2018, he purchased 11 more theme park tickets using the fake driver license and a counterfeit credit card. Gatlin was arrested and admitted that he had obtained the fake credit cards and stolen account numbers on the dark web. Investigators found that Gatlin had incurred thousands of dollars in fraudulent transactions in just a few days in Orlando.
This case was investigated by the United States Secret Service, with assistance from the Orlando Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.
Fresno Man Indicted for Credit Card Fraud and Possession of Stolen MailRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Justin Deger, 28, of Fresno, charging him with credit card fraud and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, between Dec. 5, 2018, and March 28, 2019, Deger allegedly conducted more than $1,000 in unauthorized transactions on another person’s credit card, possessed 15 or more people’s credit cards or other access devices without their authorization, and possessed more than 2,000 pieces of stolen mail.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Fresno Police Department. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.
If convicted, Deger faces a maximum penalty of 10 years in prison and a $250,000 fine for the counts of credit card fraud, and a maximum penalty of five years in prison and a $250,000 fine for the stolen mail count. Any sentence, however, will be determined at the discretion of the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Man Charged with Possession of a Machine Gun and Being a Felon in Possession of FirearmsRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Walter Ryan Keith, 41, of Fresno, charging him with being a felon in possession of firearms and possession of a machine gun, U.S. Attorney McGregor W. Scott announced.
According to court documents, after execution of a search warrant at his home on June 5, Keith was found in possession of 14 firearms and a machine gun conversion device. Keith is a previously convicted felon and is prohibited by law from possessing a firearm.
This case is the product of an investigation by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Customs and Border Protection. Assistant U.S. Attorney Jessica A. Massey is prosecuting the case.
If convicted, Keith faces a maximum statutory penalty of 10 years in prison 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Fraud and Identity Theft Conspiracy Ringleader Pleads GuiltyRead the Press Release
PROVIDENCE, RI – The leader of a multi-state conspiracy that stole and used personal identifying information of others to defraud banks, finance companies, car dealerships and retailers of more than $1.3 million pleaded guilty in federal court in Providence today to conspiracy, aggravated identity theft and fraud charges, announced United States Attorney Aaron L. Weisman; Stephen Marks, Special Agent in Charge of the U.S. Secret Service; and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Octavio Andres Difo-Castro, 28, of Brooklyn, New York, admitted that he employed several individuals who, at his direction, opened bank accounts and applied for and received financing for automobiles, clothing, and electronic devices using fraudulent driver’s licenses, Social Security numbers, and other documents he created with stolen information he purchased on the Dark Web.
Difo-Castro’s admitted to the court that, at his direction, several individuals opened bank accounts using fraudulent IDs he provided to deposit and withdraw fraudulently obtained funds; to pose as both the seller and the buyer of vehicles in order to fraudulently secure bank and/or credit union financing from financial institutions in several states; and used stolen IDs he provided to obtain retail store credit and make purchases at clothing and cellphone retailers in Rhode Island, Massachusetts, Connecticut and Pennsylvania.
According to information presented to the court, banks and credit unions were defrauded of $899,866; cellphone retailers of $117,341; and clothing retailers of $14,067.
Difo-Castro pleaded guilty today to one count each of conspiracy to commit wire fraud and conspiracy to access device fraud, two counts of aggravated identity theft, and nineteen counts of wire fraud. He is scheduled to be sentenced on January 13, 2020.
Also charged and convicted in these matters are:
- Reynaldo Martinez, 25, of Providence, who pleaded guilty in November 2017 to four counts of aggravated identity theft, two counts of access fraud, and one count each of bank fraud, conspiracy to commit fraud, attempted access fraud, and interstate transportation of stolen goods. Martinez was sentenced by U.S. District Court Judge John J. McConnell, Jr., to 48 months in federal prison and ordered to pay restitution totaling $38,126.62 to businesses he defrauded;
- Jason McDonald, 37, of Attleboro, MA, pleaded guilty in March 2018 to conspiracy, attempted bank fraud, fraudulent use of a Social Security number, and aggravated identity theft. McDonald was sentenced by U.S. District Court Judge John J. McConnell, Jr., to 39 months in federal prison;
- Donald A. Wicklund, 33, of Pawtucket, pleaded guilty on April 12, 2018, to two counts of wire fraud, five counts of fraudulent use of a Social Security Number, five counts of aggravated identity theft and three counts of bank fraud. Wicklund was sentenced by U.S. District Court Judge John J. McConnell, Jr., to 24 months and one day in federal prison; and
- Patricia Peralta, 28, of Patterson, N.J., pleaded guilty on August 21, 2019, of conspiracy to commit wire fraud, conspiracy to commit access fraud, aggravated identity theft, wire fraud, and fraudulent use of a Social Security number. She is scheduled to be sentenced on January 9, 2020.
Yenesia Pujols, 47, of Providence, R.I., arrested on February 8, 2019, is awaiting trial on one count each of conspiracy to commit wire fraud, conspiracy to commit bank fraud, aggravated identity theft, and Social Security fraud, and three counts of wire fraud.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland, with the assistance of Assistant U.S. Attorney Zachary Cunha.
The investigations were led by the U.S. Secret Service, with the assistance of the Social Security Administration, Office of the Inspector General/Office of Investigations.
United States Attorney Aaron L. Weisman acknowledges and thanks the United States Postal Inspection Service; East Providence, Warwick, Seekonk and Mansfield Police Departments; and the Rhode Island State Police for their assistance in the investigation of these matters.
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Franklin County Man Sentenced to 18 Months for Making False Statement in Attempt to Purchase a Firearm Was Subject to Domestic Violence OrdersRead the Press Release
FRANKFORT, Ky. – On Tuesday, Joshua Bybee, 23, of Frankfort, Kentucky, was sentenced to 18 months in federal prison by United States District Judge Gregory F. Van Tatenhove for making a false statement in the acquisition of a firearm.
Bybee had previously pleaded guilty to one count involving the making of a false statement during the purchase of a firearm. On January 14, 2019, Bybee entered Dan’s Discount Jewelry and Pawn in Frankfort, a federally licensed firearms dealer, and attempted to purchase a 9mm pistol. In his attempt, Bybee represented that he was not legally prohibited from purchasing or possessing a firearm when, in fact, he was subject to two separate domestic violence orders from two different individuals. Both domestic violence orders restrained Bybee from harassing, stalking, or threatening individuals covered under the order. Additionally, both orders prohibited the Bybee from possessing a firearm while each order was in effect. Federal law prohibits the possession of firearms by persons subject to domestic violence orders. The business declined to sell the firearm to Bybee after a background check revealed the domestic violence orders.
Bybee must serve 85 percent of his 18 month sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of three years.
“The making of false statements in an attempt to obtain a firearm is a serious felony offense, especially when the person is prohibited for possessing firearms by domestic violence orders,” said United States Attorney Robert M. Duncan, Jr. “The defendant attempted to conceal the existence of his domestic violence orders by misrepresenting his status to the federally licensed firearms dealer. Fortunately, the background check worked; it prevented the sale, kept the firearm out of the hands of a an individual already subject to two court orders due to violence, and helped prevent a more dangerous situation.”
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Tommy Estevan, Acting Special Agent in Charge, ATF, Louisville Field Division, jointly made the announcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Fourth Defendant in Unemployment Benefits Fraud Scheme Sentenced to over Four Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Russell White III, 38, of San Jose, was sentenced today by U.S. District Judge Morrison C. England Jr. to four years and three months in prison for his role in a scheme to defraud the state of California by filing false unemployment insurance claims, U.S. Attorney McGregor W. Scott announced.
According to court documents, between July 22, 2015, and July 14, 2016, White conspired with others to defraud the state of California. Pamela Emanuel, 58, of San Jose, worked as a tax compliance representative for the California Employment Development Department (EDD). She allegedly used her position to access the personal identifying information of workers throughout California, and she and her conspirators used that information to file fraudulent unemployment claims in the names of the unknowing victims.
White participated in the scheme by receiving and facilitating EDD documents at two Turlock addresses associated or controlled by him and using at least 12 EDD debit cards issued in the names of identity-theft victims to withdraw the fraudulently obtained benefits. In total, the conspirators filed at least 269 false claims seeking over $2.4 million in fraudulent benefits. EDD’s actual overpayment was approximately $887,199.
“Russell White engaged in a scheme with his co-defendants to defraud the California Employment Development Department by filing for unemployment insurance (UI) benefits in the names of identity theft victims who were not entitled to such benefits. We will continue to work with our law enforcement partners to protect the integrity of the UI system from those who exploit these benefit programs,” said Quentin Heiden, Acting Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation and the California Employment Development Department, Investigations Division. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Three other co-conspirators have pleaded guilty and have been sentenced in relation to this scheme. On August 16, 2018, Brittany Maunakea was sentenced to two and a half years in prison and ordered to pay $139,000 in restitution. On September 20, 2018, Sergio Doriante Sanchez Reyna was sentenced to four years and three months in prison and ordered to pay $436,000 in restitution. On February 22, 2019, Gregory Lee of Antioch was sentenced to nine years in prison and ordered to pay $353,000 in restitution. The charges against Emanuel are pending; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four-time convicted felon sentenced to 10 years in federal prison for unlawful firearm possessionRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Andre L. Johnson, 36, of Shreveport, was sentenced Wednesday by Chief U.S. District Judge S. Maurice Hicks Jr. to 10 years in federal prison followed by three years of supervised release for being a felon in possession of a firearm.
According to information presented in court at Johnson’s guilty plea hearing on June 10, 2019, Shreveport police were conducting surveillance on a residence on November 26, 2018, when they observed Johnson arrive in a vehicle. As police approached Johnson, he fled on foot and discarded a pistol. Officers recovered a loaded Walther, Model PPK, .380-caliber pistol, and Johnson was later located and arrested. He admitted to police that he possessed the weapon.
Andre Johnson was previously convicted of attempted possession of a firearm by a convicted felon, possession with intent to distribute illegal drugs, second degree battery and simple burglary. Under federal law, felons are not allowed to possess firearms and ammunition.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Owner of Marble Mining Company in Afghanistan Sentenced to Prison for Defrauding U.S. Government Agency, Leading to Default on a $15.8 Million LoanRead the Press Release
The former owner of a marble mining company in Afghanistan was sentenced to 54 months in prison today for his role in a scheme to defraud the Overseas Private Investment Corporation (OPIC), a U.S. government agency, which led to the default on a $15.8 million loan.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Azam Doost, aka “Adam Doost,” “Mohammad Azam Doost” and “Mohammad Azim,” 41, most recently of Union City, California, was sentenced by U.S. District Judge Amit P. Mehta of the District of Columbia, who also ordered Doost to serve 36 months of supervised release and to pay $8.9 million in forfeiture and separate restitution in the same amount. After a seven-day jury trial in September 2018, presided over by Judge Mehta, Doost was found guilty of three counts of major fraud against the United States, eight counts of wire fraud, four counts of false statements on loan applications or extensions and eight counts of money laundering.
The evidence at trial showed that in February 2010, while working at his company, Equity Capital Mining LLC, Doost, along with his brother, obtained a $15.8 million loan from OPIC for the development, maintenance and operation of a marble mine in western Afghanistan. The loan proceeds were paid directly from OPIC to the alleged vendors who provided equipment for the mine, as reported to OPIC by Doost or his consultant. Doost was required to deal with these companies in arms-length transactions or, to the extent any transactions were other than at arms-length, he was required to report any affiliation he had with a vendor. Doost falsely informed OPIC that he had no affiliation with any of the vendors with whom he dealt, when in fact he had financial relationships with several of them.
The evidence also showed that Doost’s business partner was listed on the bank accounts for a number of these vendors and that, upon receipt of money from OPIC into the respective accounts, Doost caused significant amounts of this money to be transferred from that respective account to companies and individuals with whom Doost was associated, or to pay debts Doost owed. Doost’s consultant received a commission of $444,000 for his purported consulting services with the first of three disbursements from OPIC, and shortly after $40,000 was transferred from the consultant’s account to a Doost company in California.
The evidence at trial further showed that when the time came for Equity Capital Mining LLC to repay the loan to OPIC, Doost provided purported reasons to OPIC why it was not able to make those repayments at a time when Doost had control of sufficient funds to make those repayments. Doost and his brother failed to repay any of the principal on the OPIC loan, and only a limited amount of interest, and ultimately defaulted on the loan, the evidence showed.
SIGAR investigated the case with assistance from the FBI. Trial Attorneys Daniel Butler and Michael McCarthy of the Criminal Division’s Fraud Section prosecuted the case. The Criminal Division’s Office of International Affairs also provided important assistance.
Former Law Enforcement Officer Admits to ExtortionRead the Press Release
BROWNSVILLE, Texas – A 32-year-old former La Feria deputy constable has entered a guilty plea to extortion under color of official right, announced U.S. Attorney Ryan K. Patrick.
At the time of the offense, Armando Gonzalez was a Precinct 5 deputy constable.
While serving as a deputy constable, he admitted he received a $50 Bass Pro Shop gift card in exchange for conducting a license plate check on a vehicle for someone he personally knew. Gonzalez also knew that individual had been involved in narcotics trafficking. Gonzalez spent the gift card a few days later.
According to the plea agreement, Gonzalez also committed another extortion act. Gonzalez admitted that on May 26, 2016, at the request of the same person, he caused another license plate check to occur on another car. On June 8, 2016, Gonzalez received $40 in cash in exchange for conducting that second check.
U.S. District Judge Rolando Olvera will impose sentencing Dec. 18, 2019. At that time, Gonzalez faces up to 20 years in federal prison and a possible $250,000 maximum fine. Gonzalez was permitted to remain on bond pending sentencing.
The FBI, Border Patrol, Drug Enforcement Administration, Immigration and Customs Enforcement’s Homeland Security Investigations and Cameron County District Attorney’s Office conducted the Organized Crime Drug Enforcement Task Force Operation dubbed Something About Maria. Assistant U.S. Attorney Jody Young and Oscar Ponce are prosecuting the case.
Former FSU Credit Union Official Sentenced for $1.2 Million Bank Fraud, Aggravated Identity Theft, and Filing False Tax ReturnsRead the Press Release
TALLAHASSEE, FLORIDA - Kevin Robert Lee, 35, of Tallahassee, was sentenced yesterdayto 66 months in federal prison after he pleaded guilty to 20 counts of bank fraud, aggravated identity theft, and theft from a lending institution, as well as three counts of filing a false tax return. The crimes involved more than $800,000 in theft. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Between June 2014 and November 2017, Lee was the lending director of FSU Credit Union (FSUCU), a Tallahassee-based credit union. As lending director, Lee’s position allowed him to open new customer accounts and approve lines of credit. He also served as treasurer of the Tallahassee Chapter of Credit Unions (TCCU), a non-profit organization that advocates legislation favorable to credit unions. In 2014, Lee used the name, date of birth, and social security number of the President of TCCU to create a second fraudulent account for that organization. Lee used the original TCCU account for fraudulent activity while leaving the new account for legitimate TCCU transactions. Lee also created two accounts using the names, dates of birth, and social security numbers of his college roommates and used them as "intermediary accounts" into which funds stolen from FSUCU customers were deposited. Lee transferred funds from inactive customer accounts to pay down the lines of credit to the intermediary accounts he created or deposited them into TCCU’s original bank account. He also used the stolen funds to pay off personal credit cards, make mortgage and car payments, and pay for his children’s private school tuition. In total, Lee stole over $800,000 from the FSUCU. Additionally, in February 2016, March 2017, and March 2018, Lee filed tax returns in which he failed to claim as income the funds he stole from FSUCU.
"One of the most important assets of American financial institutions is customers’ faith in their integrity, and this defendant used his position of trust to steal their funds and the credit union’s reputation," Keefe said. "This sentence should send a clear message that anyone who tries to violate the public’s trust will end up paying severe consequences."
Lee was sentenced to 66 months years in federal prison, followed by 5 years supervised release. Additionally, he was ordered to pay $979,839.49 in restitution to the FSUCU and its insurance company, and to the United States Internal Revenue Service. Additionally, Lee was also ordered to pay $11,589.48 in prosecution costs to the United States Internal Revenue Service.
Assistant United States Attorney Justin M. Keen prosecuted the case, which was investigated by the Florida Department of Law Enforcement and the Internal Revenue Service – Criminal Investigation, after being alerted by FSU Credit Union. Mary Hammond, Special Agent in Charge, IRS-CI, Tampa Field Office said, "This case was an outstanding example of the kind of state and federal cooperation that puts criminals behind bars. The agents of the IRS will not allow criminals to undermine the public’s confidence in upstanding institutions through their abuse of positions of trust."
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Former CEO sentenced to prison for defrauding Food and Drug Administration and distributing adulterated drugsRead the Press Release
INDIANAPOLIS – The Department of Justice and United States Attorney Josh J. Minkler announce that the former president of a drug compounding company was sentenced to prison for his convictions for conspiring to defraud the Food and Drug Administration (FDA) and for multiple counts of distributing adulterated drugs.
U.S. District Judge James R. Sweeney II sentenced Paul J. Elmer, 68, the former president and owner of Pharmakon Pharmacueticals, Inc. to 33 months in prison. Elmer also was ordered to pay a $25,000 fine and serve one year of supervised release after serving his prison sentence.
“The Department of Justice takes seriously conduct that unlawfully undermines the safety of compounded drugs,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division. “We will not tolerate actions that impede the FDA’s efforts to ensure the safety of such drugs, and we will thoroughly investigate and prosecute those who knowingly endanger patients.”
“Pharmaceutical manufacturers, such as Pharmakon, have a duty to ensure they are producing drugs that are formulated correctly and are safe for public consumption,” said Minkler. “The U.S. Attorney’s Office is committed to prosecuting those individuals who prioritize profit over safety and negligently compromise the integrity of their product.”
On April 10, 2019, after an eight-day trial, a jury in Indianapolis, Indiana, convicted Elmer, formerly a licensed pharmacist, of one felony count of conspiracy to defraud the FDA and to obstruct FDA inspections, three misdemeanor counts of introducing adulterated drugs into interstate commerce, and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce.
Pharmakon was a Noblesville, Indiana drug compounding company, founded by Elmer, which made and distributed compounded, sterile, intravenous drugs to military and civilian hospitals throughout the United States.
In June 2017, a grand jury returned an indictment against Elmer and Pharmakon’s former compliance director, Caprice R. Bearden, for the conspiracy and adulteration offenses. On April 29, 2019, Bearden was sentenced to five months in prison and three years of supervised release, following her entry of a guilty plea to all charges.
The evidence at trial showed that, between 2013 and 2016, at Elmer’s direction, Pharmakon routinely shipped compounded drugs to hospitals without having received laboratory test results that verified that the drugs were their purported strengths. Furthermore, evidence shows that, despite later receiving laboratory test results showing potency failures, Elmer did not recall over- or under-potent drugs, notify the FDA of the potency failures, or conduct any investigation to determine the cause of the potency failures. The evidence showed that Pharmakon shipped customers at least 70 lots of over- or under-potent drugs from 2013 to 2016.
FDA consumer safety officers testified at trial about two inspections of Pharmakon they conducted in 2014. One inspection was prompted by Pharmakon’s distribution of 200 percent potent midazolam, a sedative that was used to treat premature infants, to an Indianapolis hospital. The consumer safety officers testified to observing — and informing Elmer of — numerous violations of FDA regulations during each inspection. And Former Pharmakon employees testified that Elmer and Bearden misled and interfered with these FDA inspections to prevent the FDA from knowing about the potency failures as well as other aspects of the business. Former employees also testified that certain changes in process that Elmer and Bearden told the FDA Pharmakon would enact never happened.
According to other evidence at the trial, in February 2016, Pharmakon distributed 2,460 percent super-potent morphine sulfate, an opioid pain medication, to hospitals in Indianapolis and Chicago. Nurses at the Indianapolis hospital administered the morphine, not knowing that it was 2,460 percent super potent, to infants in the pediatric unit. Three infants suffered adverse effects from the narcotic overdose. One infant needed to be revived through the administration of Naloxone (commonly known as Narcan) and sent by helicopter to a nearby hospital with a neo-natal intensive care unit. These adverse events led to a final FDA inspection in which FDA consumer safety officers testified that they discovered evidence of multiple previous potency failures that had been concealed by Bearden during the first two inspections. Former employees testified that Elmer and Bearden misled and interfered with this final FDA inspection as well.
“Producing unsafe drugs puts patients at risk and is particularly concerning when they reach already vulnerable populations such as premature infants. This conviction demonstrates that those, including drug compounders, who distribute harmful drugs will be held accountable under the law,” said Director Catherine A. Hermsen, FDA Office of Criminal Investigations. “The FDA continues to play an important role in protecting patients — including young children — and we will continue to work with our law enforcement partners to pursue and bring to justice those who place profits before the health of U.S. patients.”
“When drug compounders disregard safety standards and violate the law, patient health can be put at significant risk. In this case, we saw unacceptable behavior from the defendant whose company distributed dangerous products that led to serious adverse events in infants,” said Stacy Amin, FDA Chief Counsel. “The FDA is fully committed to working with the Department of Justice to stop these bad actors and protect patients from potential public health risks.”
Assistant Attorney General Jody Hunt and U.S. Attorney Minkler commended the FDA’s Office of Criminal Investigations, which conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Cindy J. Cho of the U.S. Attorney’s Office for the Southern District of Indiana and Senior Litigation Counsel David A. Frank of the Department’s Consumer Protection Branch, with assistance from Paul Joseph of the FDA’s Office of Chief Counsel.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.
Former CEO Sentenced to Prison for Defrauding Food and Drug Administration and Distributing Adulterated DrugsRead the Press Release
The former president of a drug compounding company was sentenced to prison for his convictions for conspiring to defraud the Food and Drug Administration (FDA) and for multiple counts of distributing adulterated drugs, the Department of Justice announced today.
U.S. District Judge James R. Sweeney II sentenced Paul J. Elmer, 68, the former president and owner of Pharmakon Pharmacueticals Inc. to 33 months in prison. Elmer also was ordered to pay a $25,000 fine and serve one year of supervised release after serving his prison sentence.
“The Department of Justice takes seriously conduct that unlawfully undermines the safety of compounded drugs,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division. “We will not tolerate actions that impede the FDA’s efforts to ensure the safety of such drugs, and we will thoroughly investigate and prosecute those who knowingly endanger patients.”
On April 10, 2019, after an eight-day trial, a jury in Indianapolis, Indiana, convicted Elmer, formerly a licensed pharmacist, of one felony count of conspiracy to defraud the FDA and to obstruct FDA inspections, three misdemeanor counts of introducing adulterated drugs into interstate commerce, and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce.
Pharmakon was a Noblesville, Indiana, drug compounding company, founded by Elmer, which made and distributed compounded, sterile, intravenous drugs to military and civilian hospitals throughout the United States.
In June 2017, a grand jury returned an indictment against Elmer and Pharmakon’s former compliance director, Caprice R. Bearden, for the conspiracy and adulteration offenses. On April 29, 2019, Bearden was sentenced to five months in prison and three years of supervised release, following her entry of a guilty plea to all charges.
The evidence at trial showed that, between 2013 and 2016, at Elmer’s direction, Pharmakon routinely shipped compounded drugs to hospitals without having received laboratory test results that verified that the drugs were their purported strengths. Furthermore, evidence shows that, despite later receiving laboratory test results showing potency failures, Elmer did not recall over- or under-potent drugs, notify the FDA of the potency failures, or conduct any investigation to determine the cause of the potency failures. The evidence showed that Pharmakon shipped customers at least 70 lots of over- or under-potent drugs from 2013 to 2016.
FDA consumer safety officers testified at trial about two inspections of Pharmakon they conducted in 2014. One inspection was prompted by Pharmakon’s distribution of 200 percent potent midazolam, a sedative that was used to treat premature infants, to an Indianapolis hospital. The consumer safety officers testified to observing — and informing Elmer of — numerous violations of FDA regulations during each inspection. Former Pharmakon employees testified that Elmer and Bearden misled and interfered with these FDA inspections to prevent the FDA from knowing about the potency failures as well as other aspects of the business. Former employees also testified that certain changes in process that Elmer and Bearden told the FDA Pharmakon would enact never happened.
According to other evidence at the trial, in February 2016, Pharmakon distributed 2,460 percent super-potent morphine sulfate, an opioid pain medication, to hospitals in Indianapolis and Chicago. Nurses at the Indianapolis hospital administered the morphine, not knowing that it was 2,460 percent super potent, to infants in the pediatric unit. Three infants suffered adverse effects from the narcotic overdose. One infant needed to be revived through the administration of Naloxone (commonly known as Narcan) and sent by helicopter to a nearby hospital with a neo-natal intensive care unit. These adverse events led to a final FDA inspection in which FDA consumer safety officers testified that they discovered evidence of multiple previous potency failures that had been concealed by Bearden during the first two inspections. Former employees testified that Elmer and Bearden misled and interfered with this final FDA inspection as well.
“Pharmaceutical manufacturers, such as Pharmakon, have a duty to ensure they are producing drugs that are formulated correctly and are safe for public consumption,” said U.S. Attorney Josh Minkler for the Southern District of Indiana. “The U.S. Attorney’s Office is committed to prosecuting those individuals who prioritize profit over safety and negligently compromise the integrity of their product.”
“Producing unsafe drugs puts patients at risk and is particularly concerning when they reach already vulnerable populations such as premature infants. This conviction demonstrates that those, including drug compounders, who distribute harmful drugs will be held accountable under the law,” said Director Catherine A. Hermsen, FDA Office of Criminal Investigations. “The FDA continues to play an important role in protecting patients — including young children — and we will continue to work with our law enforcement partners to pursue and bring to justice those who place profits before the health of U.S. patients.”
“When drug compounders disregard safety standards and violate the law, patient health can be put at significant risk. In this case, we saw unacceptable behavior from the defendant whose company distributed dangerous products that led to serious adverse events in infants,” said Stacy Amin, FDA Chief Counsel. “The FDA is fully committed to working with the Department of Justice to stop these bad actors and protect patients from potential public health risks.”
Assistant Attorney General Jody Hunt and U.S. Attorney Josh Minkler commended the FDA’s Office of Criminal Investigations, which conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Cindy J. Cho of the U.S. Attorney’s Office for the Southern District of Indiana and Senior Litigation Counsel David A. Frank of the Department’s Consumer Protection Branch, with assistance from Paul Joseph of the FDA’s Office of Chief Counsel.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.
Former Bank Employee in Austin Sentenced to Federal Prison for Stealing over One Million Dollars from CustomerRead the Press Release
In Austin today, a federal judge sentenced 40–year-old former Austin Capital One bank employee Paola Gallego of Round Rock, TX, to five years in federal prison for stealing over $1 million from a bank customer, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Special Agent in Charge Laurie L. Younger, FDIC Office of Inspector General (FDIC OIG), Dallas Region.
In addition to the prison term, U.S. District Judge Robert Pitman ordered Gallego to pay a monetary judgment forfeiture in the amount of $1.2 Million; pay $1,403,979.13 in restitution to Capital One Bank (which had reimbursed the victims for their losses); and, be placed on supervised release for a period of four years after completing her prison term. Gallego remains on a $1 million bond pending Bureau of Prisons notification as to when and where to report to begin her prison sentence.
On May 9, 2019, Gallego pleaded guilty to one count of bank fraud and agreed to liquidate and remit certain assets and properties to be applied towards restitution.
Court records and testimony show that beginning in April 2014, Gallego began servicing the Capital One accounts of an elderly Austin couple. Gallego told one of her victims that if the spouse should die, another family member could take control of the money in their bank account—approximately $4.4 million. In September 2016, the victim took $400,000 and opened up an account at Wells Fargo Bank with Gallego’s assistance. Over the next two weeks, Gallego spent $94,779.13 on personal and family expenditures including a $50,000 wire transfer to Bancolombia on September 28, 2016, and a $20,586.81 online credit card payment to Chase Bank to an account in the name of her mother. Wells Fargo closed that account on suspicions of elder abuse.
Gallego and her victim subsequently opened another joint checking account, this time at J.P. Morgan Chase (Chase Bank). Gallego told a Chase Bank employee that she was her victim’s caretaker and a stay-at-home mother, which was false. Gallego then opened up a separate individual bank account at Chase Bank. Between October 14, 2016 and April 20, 2017, Gallego’s victim withdrew $1.2 million from the joint Capital One account via cashier’s checks with the understanding that Gallego would deposit those funds into their joint account at Chase Bank for investment purposes. Instead, Gallego deposited those checks into her own Chase Bank account and used the money for personal expenses, including purchasing a Range Rover Sport HSE, shopping, a Hawaiian vacation, making home improvements including a pool, making mortgage payments, paying off family member’s credit card balances, and purchasing a VW Passat for her parents.
“Stealing money by defrauding the elderly is reprehensible. We will continue to smoke out wrongdoers in our community who take advantage of the most vulnerable citizens,” stated U.S. Attorney Bash.
“This is a clear cut case of an individual taking full advantage of vulnerable victims for financial gain,” stated FBI Special Agent in Charge Combs. “We will continue our vigorous pursuit of those who commit such unscrupulous actions with little or no regard for their victims.”
“The FDIC OIG, along with its law enforcement partners, is dedicated to pursuing those who commit schemes to defraud the nation’s federally insured financial institutions and its customers,” stated FDIC OIG Special Agent in Charge Younger.
Agents with the FBI, including an FBI Task Force officer from the Texas Department of Public Safety, and the FDIC OIG investigated this case. Assistant U.S. Attorneys Michael Galdo and Neeraj Gupta prosecuted this case on behalf of the Government.
Florida Man Who Molested 12-Year-Old Child in Philadelphia Hotel Sentenced to 15 Years in PrisonRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Liam Heim, 23, of St. Petersburg, Florida, was sentenced to 180 months’ imprisonment, and lifetime supervised release by United States District Judge Petrese B. Tucker for child exploitation offenses which occurred in Philadelphia.
In early 2018, while living in Florida, the defendant started an online forum on the messaging service Discord, through which he met a 12-year-old girl living with her parents in southern New Jersey. Heim groomed his seventh-grade victim to believe that they were in a romantic relationship, eventually convincing her to meet with him in person so that he could sexually assault her. On March 29, 2018, Heim flew from Florida to Philadelphia, picked up the victim in southern New Jersey, and brought her to a hotel near the airport in Philadelphia where he repeatedly sexually assaulted her over the course of an approximately 36-hour period before the victim was recovered by authorities and Heim was arrested. The defendant ultimately pled guilty to charges of traveling in interstate commerce to engage in illicit sexual conduct with a minor, and transportation of a minor in interstate commerce with intent to engage in unlawful sexual activity.
“The harm caused by any child exploitation is devastating and long-lasting,” said First Assistant U.S. Attorney Williams. “And in this case, the conduct wasn’t limited to online communications – this defendant followed through, traveled here from out-of-state, and actually assaulted a young and vulnerable child. There can be no doubt that our children and our community are safer now that this defendant is off the street. We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children.”
"The sexual exploitation of children is a heinous offense,” said Marlon V. Miller, special agent in charge of Homeland Security Investigations, Philadelphia. “This joint investigation with the Philadelphia Police Department Special Victims Unit, Collingswood Police Department and Camden County Prosecutor’s Office Special Victims Unit demonstrates HSI’s commitment to working with our law enforcement partners to bring perpetrators to justice.”
The case was investigated by Homeland Security Investigations, Philadelphia Police Department and the Camden County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Seth M. Schlessinger.
Florida Man Sentenced to More Than 26 Years for Drug and Gun CrimesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Tobais Deshawn McKay, 40, of Ft. Meyers, Florida, was sentenced in federal court in Mobile to 322 months’ imprisonment. In April of 2019, McKay pled guilty to three federal charges, attempt to distribute cocaine, felon in possession of a firearm and using, carrying or possessing a firearm in relation to or in furtherance of a drug trafficking felony.
Court documents filed in connection with his guilty plea reflect that McKay made contact with a confidential informant working with Homeland Security Investigations agents about obtaining large amounts of cocaine in Mobile which he would then take back to south Florida for distribution. They agreed on two kilograms as the initial delivery. When McKay arrived in Mobile to accept delivery, he brought cash and jewelry to exchange for the drugs. He was also found in possession of four guns. McKay’s prior felony convictions include Aggravated Battery with a Deadly Weapon and Trafficking in Heroin. McKay’s criminal history supported a finding under the United States Sentencing Guidelines that he is a career criminal, which set his advisory guideline range at 262 months to 287 months.
United States District Court Judge William H. Steele imposed the sentence of 322 months’ imprisonment, consisting of 262 months on the drug count, and 120 months on the felon in possession count, with those sentences running concurrent. Judge Steele ordered the 60 month mandatory minimum sentence for the using, carrying and possessing a firearm in relation to or in furtherance of the drug trafficking felony to run consecutively, as required by that statute. The total sentence was 322 months. Judge Steele also ordered that McKay will serve a total of 5 years on supervised release, following his release from imprisonment. He ordered that McKay will pay $300 in special mandatory assessments, but no fine was imposed. McKay will also undergo testing and treatment for drug abuse as a separate condition of his supervision.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Florida Licensed Mental Health Counselor and Counseling Center Owner Indicted for Medicaid Fraud, Conspiracy, False Statements, and Aggravated Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Stephanie Lynn Fleming, 42, and Helen Elizabeth Storey, 37, both of Waldorf, Maryland (and formerly of Tallahassee, Florida), were arrested in Maryland after a federal grand jury in Tallahassee returned an indictment charging them with conspiracy to commit health care fraud, 75 counts of health care fraud, false statements in connection with a health care matter, and two counts of aggravated identity theft. The offenses are alleged to have been committed in the Northern District of Florida. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The indictment alleges that Storey was the owner of North Florida Mental Health (NFMH), a Tallahassee-based counseling center that employed Fleming as one of its licensed mental health counselors. The indictment further alleges that beginning on or about April 15, 2016, Fleming and Storey submitted and caused to be submitted false and fictitious claims for payment and reimbursement to Florida Medicaid and its managed care organizations (MCOs) for psychotherapy, psychiatric diagnostic evaluations, and therapeutic behavioral services. In total, it is alleged that Fleming and Storey improperly obtained or attempted to obtain more than $250,000 from Florida Medicaid.
The indictment also alleges that in order for Fleming and NFMH to receive Florida Medicaid claim reimbursements:
• In or about February 2016, Storey made and submitted a materially false Florida Medicaid Provider Enrollment Application in which she falsely attested that Fleming (1) had not pled guilty or nolo contendere to a felony, (2) had no disciplinary action taken against any of her business or professional licenses held in Florida or any other state, and (3) had not surrendered a business or professional license in Florida or any other state.
• From about March 2016 to about March 2017, Fleming made and submitted a materially false Provider Agreement and a materially false Practitioner Network Application, in which she falsely attested that she had not pled guilty or nolo contendere to illegal conduct within the past ten years, and that she had not pled guilty or nolo contendere to a felony.
Fleming and Storey face the following potential penalties:
• Conspiracy to commit health care fraud: a maximum of 20 years prison;
• Health care fraud: a maximum of 10 years in prison per count;
• False statements in connection to health care matters: a maximum of 5 years in prison per count; and
• Aggravated identity theft: a 2-year mandatory minimum prison sentence per count, consecutive to any other sentence imposed.
This case resulted from an investigation by the Florida Attorney General’s Office – Medicaid Fraud Control Unit and the United States Department of Health and Human Services Office of Inspector General. Assistant United States Attorney Justin M. Keen is prosecuting the case.
"Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds," U.S. Attorney Keefe said. "This indictment is the next step in holding these two defendants accountable for their actions."
Florida Attorney General Ashley Moody said, "Providing health care services without a valid license is not just a safety concern, it is illegal. Our Medicaid Fraud Control Unit worked closely with federal officials on this case to stop health care fraud and protect patients. Fraud of any kind will not be tolerated in Florida, and we will continue to work with our federal partners to protect the integrity of the Medicaid program."
Special Agent in Charge Omar Perez Aybar of the U.S. Department of Health and Human Services, Office of Inspector General said "Medicaid recipients deserve to receive services from licensed health care professionals. Those who submit materially false information on Medicaid agreements and applications, and enrich themselves through the submission of false claims, will be investigated and held accountable by our state and federal law enforcement partners."
The arraignment of Fleming and Storey is scheduled for September 26, 2019, at 1:30 p.m. at the United States Courthouse in Tallahassee.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Federal Jury Finds Stockton Man Guilty of Heroin and Crack Cocaine Trafficking OffensesRead the Press Release
SACRAMENTO, Calif. — After a three-day trial, James Randolph Sherman, 55, of Stockton, was found guilty today of eight counts related to his heroin and crack cocaine trafficking operation, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, Sherman was the head of a heroin and crack cocaine distribution operation based in Stockton. Between March 14, 2012, and July 15, 2013, the operation was investigated using a confidential source to buy heroin and crack cocaine from Sherman’s front man and co-defendant, Lindsey Mills, 61, of Stockton. During the investigation, Mills sold 226.1 grams of heroin and 451.2 grams of crack cocaine. On the day of his arrest on July 15, 2013, Mills was found in possession of 22.9 grams of crack cocaine. Through recorded conversations, phone toll records, physical surveillance, and other investigative techniques, agents were able to confirm that Sherman was Mills’ heroin and crack cocaine supplier. On Dec. 3, 2015, Mills pleaded guilty to a charge of conspiracy to distribute and possess with intent to distribute heroin and cocaine based upon his partnership with Sherman. He was sentenced on May 19, 2016, to four years and nine months in prison.
This case is the product of an investigation by the Drug Enforcement Administration, the San Joaquin County Metro Narcotics Task Force, and the FBI’s Safe Streets Violent Crimes Task Force. Assistant U.S. Attorneys Jason Hitt and Cameron L. Desmond are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Sherman is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Dec. 12. Sherman faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison. The actual sentence, 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 Jury Convicts East Bay Subcontractor of Defrauding Matrix Service CompanyRead the Press Release
OAKLAND – A federal jury found Brian Federico guilty of mail fraud conspiracy and mail fraud, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The guilty verdicts followed a two-week trial before the Honorable Yvonne Gonzalez Rogers, United States District Judge.
Federico, 54, of Tracy, Calif., was project manager for Imperial Shotcrete, a company hired to perform concrete construction services as a subcontractor for Matrix Service Company. Matrix constructs tanks and provides tank maintenance and repair services to petrochemical companies. The evidence at trial showed that between 2006 and 2010, Matrix and the FBI uncovered a complex fraudulent invoicing scheme in its Suisun City, Calif., office. Evidence uncovered during the investigation caused Matrix to reimburse over $1.3 million to its customers.
For his part in the scheme, Federico caused Matrix to pay fraudulent invoices. The evidence at trial showed that Federico created false and fraudulent invoices both by using the name and logo of a real company without its authorization and by using bogus invoices from CEMS, another company Federico controlled. In addition, Federico submitted fraudulent invoices to two Matrix project managers who were receiving downstream payments from Imperial—these project managers often were the same persons responsible for authorizing Matrix to pay the Imperial invoices. Most of the funds that Matrix paid on the fraudulent invoices eventually were deposited into bank accounts that Federico controlled. Pursuant to his part of the scheme, Federico defrauded Matrix of a total of $1,289,403. Federico directed that more than $875,000 of the payments be deposited into bank accounts of his choosing, many of which he controlled.
On December 6, 2012, a federal grand jury indicted Federico and his co-defendants, charging each with various financial crimes related to the scheme. The two Matrix project managers Federico conspired with will be, or have been, sentenced for their respective roles in the scheme as follows:
Defendant’s name
Age/residence
Charge
Sentence
Kevin Laney
51/
Three Forks, Montana
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349
Scheduled to be sentenced on December 12, 2019.
Brandon Hourmouzus
44/
Vacaville, California
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349
Sentenced 10/08/2015 to three years and six months probation, $100 special assessment, and $196,410 restitution
Charles Burnette
38/
Aliso Viejo, California
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349
Sentenced 09/11/2014 to
five years’ probation, $100 special assessment, and $145,149 restitution
Judge Gonzalez Rogers scheduled Federico’s sentencing hearing for December 18, 2019. The maximum statutory penalties for a violation of 18 U.S.C. §§ 1341 and 1349 are a maximum prison term of 20 years, a fine of $250,000, 3 years of supervised release, and restitution. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas R. Green and Jonathan U. Lee are prosecuting this case with the assistance of Jessica Rodriguez Gonzalez, Tina Rosenbaum, and Noble Hughes. This prosecution is the result of an investigation by the Federal Bureau of Investigation.
Elizabeth, PA Man Admits Having Child Pornography on His Cell Phone and Dropbox and Yahoo AccountsRead the Press Release
PITTSBURGH - A resident of Elizabeth, Pennsylvania, pleaded guilty in federal court to a charge of possession of child pornography, United States Attorney Scott W. Brady announced today.
Ernest Gill, 65, of pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that, on July 20, 2017, law enforcement executed a search warrant on Gill’s residence and recovered a Samsung cell phone, which contained a collection of child pornography. A subsequent search of Gill’s Dropbox and Yahoo accounts also revealed child pornography. In addition to possessing child pornography, Gill acknowledged that he also distributed child pornography.
Judge Bissoon scheduled sentencing for January 9, 2020. The law provides for a total sentence of up to 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County District Attorney Investigations Unit, and the Allegheny County Police Department conducted the investigation that led to the prosecution of Gill.
Eight Individuals Charged in Fraud Scheme Targeting Widows; Created False Identities, Feigned Relationships, Took MoneyRead the Press Release
SALT LAKE CITY – A federal grand jury returned a 10-count superseding indictment Wednesday afternoon charging eight individuals in connection with a fraud scheme primarily targeting widowed women over 65 years old. The indictment alleges that over approximately two years, the defendants defrauded dozens of victims out of more than $6 million, which they laundered through accounts they controlled.
According to the indictment, the defendants and unnamed co-conspirators used social media and social gaming applications to target widows. The defendants created false identities to befriend potential victims, feigned romantic interest, and eventually pressured them to send money to the defendants. The indictment also alleges the defendants engaged in a series of subsequent transactions to disguise the origins of the funds and promote the operation of the conspiracy – often sending significant sums of money overseas.
Charged in the indictment are Jeffersonking Anyanwu, age 25, Daniel Negedu, age 21, Onoriode Kenneth Adigbolo, age 31, Chukwudi Kingsley Kalu, age 28, and Godsent Nwanganga, age 24, all Nigerians living in Orem; David Maduagu, age 27, a Nigerian living in Taylorsville; and Richard Ukorebi, age 38, and Adrianna Sotelo, age 20, both of West Valley City. Ukorebi is also Nigerian.
All defendants are charged with one count of conspiracy to commit mail fraud, three counts of mail fraud, and one count of money laundering conspiracy. Anyanwu, Negedu, Adigbolo, Kalu, Ukorebi, Nwanganga and Sotello are also each charged with one count of money laundering.
The indictment alleges that in the typical execution of the scheme, the defendants and their co-conspirators would create a fake online personality on a social media website or dating application, befriend a woman through that website, and convince the woman through the fake persona that they had some urgent financial need. The fake profiles included a businessman in Europe, high ranking United States military officers, a successful Utah businessman, an individual in Sweden under house arrest, and an engineer working as a subcontractor for a large oil company working in Oman. The fake schemes alleged in the indictment included telling women that a U.S. military member was stranded overseas, pitching loans or investment opportunities, and describing an urgent business need to purchase equipment. After presenting the false financial need, the victims were provided with the defendants’ bank account information. Once the money was in the defendants’ accounts, they would transfer the money to each other and to overseas accounts, withdraw the money as cash, or use the money for personal expenses. The indictment includes several examples of fake profiles the defendants allegedly used to obtain and launder money from victims. The victims in these examples ranged in age from 52 to 76.
One victim of the alleged scheme, a 75-year-old woman identified as C.S. in the indictment, was contacted on social media by the defendants using the profile “Aaron.Brain.” “Brain” claimed to be a businessperson living in Germany. “Brain” provided photos and discussed his business, claiming he was involved in a business supplying pipe for a sewer in Turkey. “Brain” provided photographs of industrial pipes in a warehouse. He told the victim she could make $600,000 in his business venture. He convinced C.S. to send 10 checks totaling $275,000 and make five wire transfers totaling $81,000 between April 2, 2018 and May 17, 2018.
The defendants and their unnamed co-conspirators used the name of a U.S. military general to befriend N.W., a 74-year-old woman, through social media. Using the persona of the general, they pretended to be a high-ranking officer at Ft. Bragg deployed overseas. They claimed to have a “portfolio” that was restricted due to customs fees and he needed her assistance to get his “portfolio” released. They instructed N.W. to send checks made out to several of defendants. The address they provided for mailing the checks was an address for Negedu in Vineyard, Utah, and other locations. N.W. sent approximately $140,150.
The maximum potential penalty for each of the first four counts in the indictment is 20 years in prison and a fine of $250,000 (or double the stolen amount). The penalty for each money laundering and money laundering conspiracy count is 10 years in federal prison and $250,000 (or double the laundered amount).
Anyanwu, Negedu, and Adigbolo were initially charged in an indictment returned by a federal grand jury in late May. They were arraigned on the charges and entered pleas of not guilty. They will remain in custody pending resolution of the case after U.S. Magistrate Judge Paul M. Warner found them to be a financial danger to the community, a risk of non-appearance, or both. Ukorebi, Maduagu, and Sotelo were previously charged by criminal complaint and arrested. Ukorebi and Maduagu were ordered detained pending trial. Sotelo is released on supervision pending trial. Nwanganga is incarcerated on unrelated charges. Kalu remains at large.
Assistant U.S. Attorneys in Salt Lake City are prosecuting the case. Special agents of the FBI and Postal Inspectors from the U.S. Postal Inspection Service are investigating the case.
The defendants were arrested and charged as part of DOJ’s Operation reWired, a coordinated international enforcement operation. (DOJ September 10, 2019 Press Release).
Effingham Man Pleads Guilty to Fentanyl Trafficking Conspiracy and Firearm ChargesRead the Press Release
CONCORD – Justin English, 35, of Effingham, pleaded guilty in federal court to participating in a fentanyl trafficking conspiracy and possessing firearms in furtherance of his drug trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between early 2018 and October 4, 2018, the Federal Bureau of Investigation’s Southern Maine Safe Streets Gang Task Force conducted an investigation into English’s fentanyl trafficking in Effingham, New Hampshire and York, Maine. On October 4, 2018, the FBI executed a search warrant on English’s residence, arrested English and his co-conspirator, and seized approximately 200 gram so fentanyl, currency, collectible coins, and four firearms. Under the terms of the plea agreement, English agreed to forfeit to the United States $28,386 in cash and $45,738 in collectible coins. The FBI previously administratively forfeited the firearms.
Sentencing is currently scheduled for January 2, 2020.
“Fentanyl trafficking poses a significant danger to the community,” said U.S. Attorney Murray. “When drug traffickers are armed, the risk to public health and safety are even higher. We are working closely with our law enforcement partners each day to identify, arrest, and prosecute the armed drug dealers who endanger the citizens of the Granite State.”
This matter was investigated by the Federal Bureau of Investigation’s Southern Maine Safe Streets Gang Task Force, the York, Maine County’s Sheriff’s Office, the Effingham, New Hampshire Police Department and the New Hampshire Attorney General’s Drug Task Force. The case is being prosecuted by Assistant U.S. Attorney Jennifer Davis.
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Edgerton Felon Sentenced to 4 Years for Possessing FirearmsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that David Hill, 39, Edgerton, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to four years in federal prison for or unlawfully possessing five firearms as a convicted felon. Hill pleaded guilty to this charge on July 3, 2019. His prison term will be followed by a three-year period of supervised release.
On February 23, 2019, the Edgerton Police Department received an anonymous tip that Hill, a convicted felon, was in possession of firearms. At the time, Hill was on probation in Rock County, stemming from a 2013 conviction for possessing a firearm as a felon. An Edgerton police officer contacted Hill's probation agent, and together they found Hill's Facebook page. On January 19, 2019, Hill posted photos of himself on Facebook, while holding one firearm. Additional firearms were depicted behind him, hanging on a wall.
On February 25, 2019, Edgerton officers arrested Hill on a probation violation warrant, as he was parking at his place of employment. Hill got out of his car, carrying a canvas bag. Officers searched the bag incident to arrest and recovered a loaded Glock 9mm pistol, as well as two fully loaded 15-round magazines and additional boxes of ammunition. The firearms depicted in the Facebook photo were recovered from Hill’s basement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives laboratory determined one operated as a machine gun.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charge against Hill was the result of an investigation conducted by the Edgerton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Dominican National Charged with Unlawful ReentryRead the Press Release
BOSTON – A Dominican national was indicted today in federal court in Boston of illegally reentering the United States.
Manuel A. Mendez Pimentel, 44, a Dominican national formerly residing in New Bedford, was indicted on one count of unlawfully reentering the United States after being deported.
According to the indictment, Mendez Pimentel was removed in 2009 and subsequently reentered the United States without permission. The indictment further alleges that Mendez Pimentel was deported after being convicted of an aggravated felony.
Mendez Pimentel faces a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Mendez Pimentel will also be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Marcos D. Charles, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice and EPA Reach Clean Air Act Settlement with Hyundai for Engines and Construction Equipment Illegally Imported and Sold in the United StatesRead the Press Release
Under a settlement with the U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA), Hyundai Construction Equipment Americas Inc. (HCEA) and Hyundai Heavy Industries Co. Ltd (HHI) (collectively known as “Hyundai”) has agreed to pay a $47 million civil penalty for violating Title II of the Clean Air Act. The settlement resolves allegations that Hyundai sold heavy construction vehicles with diesel engines that were not certified to applicable emission standards.
From 2012 to 2015, Hyundai pre-purchased, or “stockpiled” engines that met outdated emissions standards and then illegally imported, marketed and sold heavy construction equipment with these engines installed, in violation of the Clean Air Act. Additionally, Hyundai imported, marketed and sold units of equipment in quantities that exceeded their exemption allowance limit under the Transition Program for Equipment Manufacturers (TPEM) program regulations. Defendants allegedly introduced into United States commerce at least 2,269 illegal diesel nonroad vehicles. Under the terms of the settlement, Hyundai has agreed to pay a $47 million civil penalty to resolve their Clean Air Act violations.
“Hyundai put profits above the public’s health and the requirements of the law,” said Jeffrey Bossert Clark, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “We will not tolerate such schemes that skirt the Clean Air Act, designed by Congress to improve air quality.”
“EPA is holding Hyundai accountable for importing and selling diesel engines and heavy-duty construction vehicles that did not meet Clean Air Act emission standards,” said Susan P. Bodine, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance. “By ignoring regulatory requirements, Hyundai not only gained a market advantage over their competitors, but they also introduced higher polluting vehicles into the United States, undermining the protection of human health and the environment.”
In 2015, the EPA received a whistleblower tip reporting illegal importation of nonroad diesel equipment that did not meet applicable emission standards. Based upon the information received from the whistleblower, the EPA initiated both criminal and civil investigations. In the criminal proceeding, the court imposed a sentence of, among other things, a $1,950,000 criminal fine.
Hyundai’s illegal nonroad diesel vehicles were not certified as meeting applicable pollutant emission standards, including for nitrogen oxides (NOx) and particulate matter (PM). NOx is a reactive gas that contributes to the formation of PM and ozone. PM is a form of air pollution composed of microscopic solids and liquids suspended in air. Ozone is a highly reactive gas that is formed in the atmosphere, in part, from emissions of NOx. Exposure to ozone and PM is linked to a number of health effects as well as premature death. Children, older adults, people who are active outdoors (including outdoor workers), and people with heart or lung disease are particularly at risk for health effects related to ozone or PM exposure.
For more information on this settlement: https://www.epa.gov/enforcement/hyundai-construction-vehicles-clean-air-act-settlement-information-sheet.
Delray Beach Doctor Sentenced to Prison and Ordered to Pay Restitution on Federal Child Pornography ChargesRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office, announced that Dr. David Edward Nowak, 42, of Delray Beach, Florida, was sentenced to prison on federal child pornography charges.
Dr. Nowak previously pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B) (Case No. 19cr80049). On September 17, 2019, U.S. District Judge Roy K. Altman sentenced Dr. Nowak to 9 years in prison, to be followed by 20 years of supervised release. Dr. Nowak was also ordered to pay $100,000 in restitution to the victims.
According to court records, from 2015 through 2019, Nowak accessed peer-to-peer networks to obtain images and videos of child pornography. Those images and videos included pre-pubescent children engaged in forced sexual acts.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Ariana Fajardo Orshan commended the investigative efforts of the FBI in this matter. This case was prosecuted by Assistant U.S. Attorney Gregory Schiller.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Coushatta man sentenced to 10 years in federal prison for accessing a “Dark Web” site with intent to view child pornographyRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Paul Andrew Talley, 51, of Coushatta, Louisiana, was sentenced Wednesday by Chief U.S. District Judge S. Maurice Hicks Jr. to 10 years in federal prison followed by five years of supervised release for accessing the internet with intent to view child pornography. Talley is also required to register as a sex offender.
According to documents presented at Talley’s guilty plea hearing on April 11, 2019, law enforcement agents identified Talley’s computer as accessing a “Dark Web” child porn site and being a regular user. Forensic analysis on the computer equipment seized from Talley’s home on August 20, 2015, revealed more than 2,300 images of child pornography. The images found on the computer matched the images from the “Dark Web” site.
The Dark Web, also called the DarkNet, is a collection of underground marketplaces where websites selling illegal content design their sites to hide identities of users and evade law enforcement detection. For more information, visit www.fbi.gov/news/stories/a-primer-on-darknet-marketplaces.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
The FBI conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Convicted Sex Offender Sentenced to 25 Years in Prison, Lifetime Supervised Release for Producing Child Pornography on SnapchatRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of BARTON GEORGE SCOTT, 36, a registered sex offender, to 25 years in prison for producing child pornography. SCOTT, who pleaded guilty on February 6, 2019, was sentenced today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
United States Attorney Erica MacDonald said, “Mr. Scott is a convicted sex offender and a sextortionist. He terrorized his victims by hacking into their Snapchat accounts to access highly sensitive and private pictures. He then taunted his victims and threatened to disseminate their private pictures if they didn’t comply with his demands. Today’s sentence sends a clear message that sextortion is a serious crime that will be met with serious consequences.”
“A case like this really underscores the FBI’s proactive approach to identifying people who exploit children with pornography,” said Jill Sanborn, Special Agent in Charge of the FBI’s Minneapolis Division. “Our agents are vigilant and continue their active role to ensure that children are protected and that sexual predators are removed from children’s lives.”
According to the defendant’s guilty plea and documents filed in court, between April 30 and August 8, 2017, SCOTT gained unauthorized access to the Snapchat accounts of dozens of victims, including minors between 14-16 years of age. In several cases, SCOTT used threats and extortionate tactics in an attempt to obtain sexually explicit images and videos from the victims.
Based on the evidence obtained in this case, authorities believe there may be additional victims of this alleged conduct. Anyone with information about this matter is encouraged to call the FBI at (763) 569-8000. Callers may remain anonymous.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, the New Richmond Police Department, the Anne Arundel County Police Department, the Carver County Sheriff’s Office, the St. Croix County Sheriff’s Office, the Stillwater Police Department, the Spring Green Police Department, and the Washington County Sheriff’s Office.
Assistant U.S. Attorney Katharine T. Buzicky prosecuted the case.
Defendant Information:
BARTON GEORGE SCOTT, 36
City of residence unknown
Convicted:
- Production of child pornography, 1 count
- Penalties for registered sex offenders, 1 count
Sentenced:
- 300 months in prison
- Lifetime of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Compounding Pharmacy, Two of Its Executives, and Private Equity Firm Agree to Pay $21.36 Million to Resolve False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that compounding pharmacy Diabetic Care Rx LLC, or Patient Care America (PCA), PCA’s Chief Executive Officer Patrick Smith, PCA’s former Vice President of Operations Matthew Smith, and private equity firm Riordan, Lewis & Haden Inc. (RLH) have agreed to resolve a lawsuit alleging that they violated the False Claims Act through their involvement in a kickback scheme to generate referrals of prescriptions for expensive pain creams, scar creams, and vitamins, regardless of patient need, which were reimbursed by TRICARE, the federal health care program for military members and their families. PCA and RLH have agreed to pay $21,050,000, Patrick Smith has agreed to pay at least $300,000, and Matthew Smith has agreed to pay at least $12,788. These settlement amounts were based on defendants’ ability to pay.
“Kickback schemes taint decision-making and cause taxpayer-funded health care programs to pay for items or services that patients may not need,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will hold accountable health care providers involved in such schemes designed to induce referrals of prescriptions that are reimbursed by federal health care programs.”
“The prosecution and resolution of this case demonstrates the U.S. Attorney’s Office continuing commitment to hold all responsible parties to account for the submission of claims to federal health care programs that are tainted by unlawful kickback arrangements,” said United States Attorney Ariana Fajardo Orshan. “Kickback schemes lead to unnecessary medical services and drive up the cost of health care for all.”
“This settlement sends a clear message about the Defense Criminal Investigation Service (DCIS) and its law enforcement partners’ unwavering commitment to protect the integrity of TRICARE, the Department of Defense’s health care program which serves to protect our U.S. military, their family members, and military retirees,” said Special Agent in Charge Cyndy Bruce of the DCIS Southeast Field Office. “Health care providers who manipulate and abuse the TRICARE program in order to seek financial gain by submitting false claims and demonstrating a lack of regard for TRICARE patients and the health care plan which is charged to provide their medical care, will be diligently investigated and held accountable for their actions.”
This settlement resolves a lawsuit pursued by the United States against PCA for allegedly paying kickbacks to outside “marketers” to target military members and their families for prescriptions for compounded creams and vitamins, which were formulated to ensure the highest possible reimbursement from TRICARE. The United States alleged that the marketers paid telemedicine doctors who prescribed the creams and vitamins without seeing the patients, or in some cases, even speaking to them. The settlement also resolves the United States’ allegations that PCA and a marketer routinely jointly paid the copayments owed by patients referred by the marketer, without any verification of the patients’ financial needs, and then disguised the payments as coming from a sham charitable organization, which was affiliated with the marketer. Finally, the settlement resolves the United States’ allegations that PCA continued to claim reimbursement for prescriptions referred by the marketers despite regularly receiving complaints from patients that revealed the prescriptions were being generated without patient consent or a valid patient-prescriber relationship. RLH, the private equity firm that managed PCA on behalf of its investors, allegedly knew of and agreed to the plan to pay outside marketers to generate the prescriptions and financed the kickback payments to the marketers. Patrick Smith and Matthew Smith were executives of PCA who allegedly executed the scheme.
The lawsuit resolved by the settlement was originally filed under the whistleblower (or “qui tam”) provisions of the False Claims Act by Marisela Medrano and Ada Lopez, two former employees of PCA. The qui tam provisions permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The False Claims Act authorizes the United States to intervene and take over such lawsuits, which the United States did here, in part. The share to be awarded in this case has not been determined yet.
This civil settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch (Fraud Section), the United States Attorney’s Office for the Southern District of Florida, the Defense Criminal Investigative Service, and the U.S. Food & Drug Administration’s Office of Criminal Investigations.
The lawsuit is captioned United States ex rel. Medrano and Lopez v. Diabetic Care Rx LLC, d/b/a Patient Care America, et al., No. 15-CV-62617 (S.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Collin County Couple Indicted in Sex Trafficking ConspiracyRead the Press Release
PLANO, Texas – Two Plano residents have been arrested for federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown and Homeland Security Investigation Special Agent in Charge Ryan Spradlin today.
Quan Tu, 48, a Vietnamese national, and Li Xin, 44, a Chinese national, were arrested on Aug. 15, 2019, in Houston on Dallas County charges stemming from an ongoing sex trafficking investigation in Collin and Dallas counties. On Sep. 11, 2019, a federal grand jury in the Eastern District of Texas returned a three-count indictment charging Tu and Xin with conspiracy to commit sex trafficking by force, fraud, or coercion; conspiracy to use interstate facilities to manage and facilitate an unlawful prostitution enterprise; and money laundering.
Beginning in December 2018, residents in Richardson, Texas began complaining to the Richardson Police Department that men were traveling to a condominium at all hours of the day and night, some of whom were knocking on neighbors’ doors, seeking sexual services. Upon further investigation by a task force of state and federal law enforcement agencies, officers determined that Tu and Xin were allegedly operating a prostitution enterprise from that location. During the investigation, it was revealed that similar operations were being conducted by the same actors in a single-family residence in Plano and a commercial foot spa in Garland.
The investigation further revealed that advertisements for commercial sex were placed on various websites, listing phone numbers that connected back to Tu and Xin. In the meantime, Asian women traveled to the north Texas area from other states, cities, and countries, often with the promise of legitimate masseuse jobs. Once in Tu and Xin’s employ, the women were taken to one of the three locations (Richardson, Plano, or Garland) where they lived and serviced customers. Tu and Xin collected fees from the women, maintained financial control over them, and intimidated them, thereby compelling them into prostitution. The scheme resulted in the proceeds which allowed Tu and Xin to maintain their lifestyle and to purchase vehicles, including a 2017 Toyota Tundra.
“These defendants took advantage of women who were vulnerable,” said United States Attorney Joseph D. Brown. “The women relied on the defendants for what they needed to live in the United States and it was clear that the defendants were coercive in keeping these women in their employment. Human trafficking degrades its victims and keeps them trapped in unhealthy situations, and we are committed to doing everything we can to stop it.”
“In many cases, victims of human trafficking are immigrants who have been duped into deplorable circumstances by false promises of a better life. Regardless of the scenario, HSI takes a victim-centered approach in these investigations, and we have the unique ability to provide assistance/benefits to victims no matter their citizenship,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “As public awareness increases, our HSI special agents along with our tremendous partners are identifying, investigating and pursuing prosecution against more and more sex traffickers who criminally and without mercy exploit women against their will to generate profits.”
If convicted, Tu and Xin each face up to life in federal prison. Anyone with information regarding this case or any similar activities, can contact the U.S. Attorney’s Office at 1-800-804-3547. This is a confidential line. This case is being investigated by Homeland Security Investigations, Texas Department of Public Safety, and the Richardson Police Department, with assistance of the Plano Police Department, Garland Police Department, and Dallas County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Marisa Miller. It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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