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16 September 2019
Midland Man Sentenced to 24 Years in Prison for Distribution and Receipt of Child Pornography, and Coercion and Enticement of a MinorRead the Press Release
Seth Ryan Mose, a 35-year-old resident of Midland, Michigan, was sentenced on September 12, 2019, to 290 months in federal prison for one count of Distribution and Receipt of Child Pornography and one count of Coercion and Enticement of a Minor, announced U.S. Attorney Matthew Schneider. Schneider was joined in the announcement by Rainer S. Drolshagen, Acting Special Agent in Charge of the FBI’s Detroit Field Office.
United States District Judge Thomas L. Ludington imposed sentence on Mose following his guilty pleas to Distribution and Receipt of Child Pornography and Coercion and Enticement of a Minor. Ludington also imposed five years of supervised release following his term of imprisonment and restitution payments to identified victims.
According to court documents, between February 2, 2018, and June 12, 2018, Seth Ryan Mose knowingly possessed, distributed, and received approximately 387 photographs and 102 videos containing child pornography through the use of various online social networks and chat rooms. In the fall of 2014, Mose used these social networks and chat rooms to entice a 12-year-old girl to send him nude photographs of herself. Later, Mose traveled from Michigan to Ohio and engaged in sexual contact with the 12-year-old girl, conduct that amounted to rape under Ohio law.
The case was investigated by the FBI and the Michigan State Police’s Computer Crimes Unit and Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Anca Pop.
Mexican Lawyer Sentenced to 96 Months for Laundering Millions of Dollars of Narcotics Proceeds for Sinaloa CartelRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Gibran Rodriguez-Mejia, a lawyer from Sinaloa, Mexico, was sentenced in federal court today by U.S. District Judge Roger T. Benitez to eight years in custody for laundering millions of dollars of drug proceeds for the Sinaloa Cartel.
Rodriguez, who has a Mexican law degree with a specialization in business and civil law, pleaded guilty in April, admitting that he operated a currency exchange house that received the proceeds of multi-kilogram quantities of cocaine, methamphetamine and heroin smuggled into the United States by the Sinaloa Cartel. Rodriguez, who was extradited from Mexico to San Diego in September 2018, is the fourth Mexico-based defendant in this case to be sentenced.
In his plea agreement, Rodriguez admitted to laundering $3.5 million in drug proceeds. He coordinated with couriers, primarily located in Southern California, who smuggled the bulk U.S. currency from the United States to Mexico. Rodriguez also admitted that he arranged for currency to be smuggled to an exchange house in Tijuana, Mexico that was owned and operated by co-defendant Cesar Hernandez-Martinez, who has also pleaded guily and is set to be sentenced on December 2, 2019. After the money was converted to Mexican pesos, Rodriguez provided financial accounts in Mexico into which the money was deposited for the benefit of the Mexican-based drug traffickers.
According to court records, in one instance in April 2014, Rodriguez and an individual referred to as “Doc” arranged for a southbound money courier to pick up $100,000 dollars from Philadelphia, Pennsylvania, and transport that sum to Mexico. “Doc” provided the courier’s identity to Rodriguez, who arranged the purchase of a plane ticket for the courier to travel to Philadelphia to make the pick up. When the courier landed, law enforcement conducted surveillance and then seized the $100,000 in cash on the courier’s person and in his hotel room.
“Those who launder proceeds for the world’s most violent drug trafficking organizations will continue to be targeted and brought to justice no matter where they may be located,” said U.S. Attorney Robert Brewer. “We will continue to combat efforts to further the flow of dangerous narcotics across the border into and through Southern California by every means at our disposal.”
In addition to the six defendants in U.S. custody in this case, approximately 20 other individuals have entered guilty pleas and have been sentenced previously in related cases. Those cases have involved individuals based in the United States or who frequently crossed into the United States and served as money couriers, drug couriers and drug stash house operators and who were part of, or related to, the same money laundering and drug trafficking organization.
Three other defendants have previously entered guilty pleas in this case and been sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; and Joel Acedo-Ojeda) and two others (Cesar Hernandez-Martinez and Oscar Rodriguez-Guevara) have entered guilty pleas. Hernandez-Martinez entered his plea on April 4, 2019 and will be sentenced on October 21, 2019 at 9:00 a.m. before Judge Benitez and Rodriguez-Guevara entered his plea on August 22, 2019 and will be sentenced on December 2, 2019 at 9:00 a.m., also before Judge Benitez.
The U.S. Attorney’s Office prosecuted this case with the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice in Washington, D.C.
DEFENDANT Case Number 15-cr-950
Gibran Rodriguez-Mejia Age: 31 Culiacan, Sinaloa, Mexico
SUMMARY OF CHARGE
Hernandez-Martinez
Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h).
Maximum Penalties: Twenty years in prison; $500,000 fine or twice the value of the funds involved.
Prior Guilty Pleas and Sentences
Joel Acedo-Ojeda: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 135 months custody and $20,000 fine.
Omar Ayon-Diaz: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 120 months custody and $15,000 fine.
Osvaldo Contreras-Arriaga: Pleaded guilty to Conspiracy to import cocaine, in violation of Title 21, U.S.C., Secs. 952, 960 and 963; sentenced to 132 months custody and $1,000 fine.
Cesar Hernandez-Martinez: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); will be sentenced on October 21, 2019.
Oscar Rodriguez-Guevara: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); will be sentenced on December 2, 2019.
INVESTIGATING AGENCY
Homeland Security Investigations
Maximum sentence removes violent felon from Savannah neighborhoodRead the Press Release
SAVANNAH, Ga: A Savannah man has received the maximum federal prison sentence after his conviction for possession of a firearm by a convicted felon.
Hosea Scott, 39, was sentenced to 120 months in prison by U.S. District Court Judge R. Stan Baker, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Scott, who was convicted after a jury trial in June, also was sentenced to serve three years of supervised release after completion of his sentence. There is no parole in the federal system.
Scott’s arrest occurred in March 2018 after the police initially responded to a 911 call regarding a domestic dispute. Scott fled the scene before police arrived and was apprehended a short time later in possession of a loaded 9mm pistol equipped with a high-capacity magazine.
“Convicted felons are prohibited from possessing firearms at any time - period,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “We are committed to prosecuting repeat criminals who fail to get this message, and will work to ensure that gun crimes will bring hard prison time.”
The value of this type of case can be measured in human lives,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “This case involved illegally possessed firearm in the hands of a criminal. It demonstrates the cooperation that exists between the Savannah Police Department and ATF.”
The case was investigated by the Savannah Police Department and the ATF, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer Kirkland and Frank Pennington.
Leader of Armed Robbery Crew Sentenced to 41 YearsRead the Press Release
Tampa, Florida – United States District Judge William F. Jung has sentenced Rashid Iman Turner (32, Ft. Myers) to 41 years in federal prison for his involvement in a string of armed robberies of banks and retail stores. Turner was also ordered to pay $103,782.78 in restitution to the victims. A federal jury had found Turner guilty on May 29, 2019.
According to evidence presented at trial, in August and October 2017, Turner and co-defendant Petrie Addison robbed Family Dollar and Dollar General stores in Lehigh Acres. In both retail robberies, shortly after closing time, Turner and Addison held the employees at gunpoint, threatened to kill them and their families, forced them to open the safes, and stole cash from the stores. Co-defendant Dakiriya Lias served as their getaway driver for the Dollar General robbery.
In November 2017, Turner and Addison robbed a Wells Fargo Bank in Spring Hill. And, in December 2017, co-defendant Zachary Gloster joined Turner and Addison and they robbed Seacoast Banks in Arcadia and Port St. Lucie. In each of the bank robberies, the defendants stormed through the bank’s front doors shortly after opening time, held the employees at gunpoint, looted the teller drawers, and fled less than two minutes later.
Addison, Gloster, and Lias pleaded guilty for their roles in this case prior to Turner’s trial. This morning, Gloster was sentenced to 20 years in prison for his role. Addison and Lias are currently awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Ft. Myers Police Department, the Lee County Sheriff’s Office, the Pasco County Sheriff’s Office, the Hernando County Sheriff’s Office, the Florida Highway Patrol, the Arcadia Police Department, the Port St. Lucie Police Department, and the Sarasota County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael M. Gordon.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Lake Andes Man Sentenced for Abusive Sexual Contact of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Lake Andes, South Dakota, man convicted of Abusive Sexual Contact by Force was sentenced on September 11, 2019, by U.S. District Judge Karen E. Schreier.
Terry Clement Blaine, age 63, was sentenced to 240 months in federal prison, followed by 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Blaine was indicted by a federal grand jury on November 6, 2018. He pled guilty on June 26, 2019.
The conviction stemmed from incidents that occurred between 2010 and 2013, when Blaine knowingly engaged in sexual contact with a child under 12 years old. The molestation occurred while the child visited a relative's home.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Blaine was immediately turned over to the custody of the U.S. Marshals Service.
In the Aftermath of Hurricane Dorian Department of Justice Reminds the Public to be Aware of Fraud and Report it to the National Center for Disaster FraudRead the Press Release
The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“In the aftermath of Hurricane Dorian, I urge the public to be wary of fraudsters looking to exploit victims of the hurricane through identity theft schemes, solicitations for fake charities, or other types of fraud. Report suspected disaster fraud to the National Center for Disaster Fraud,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director.
Since Hurricane Dorian’s landfall, many people are left without food, water, or shelter, and are experiencing devastating damage to life and property. Unfortunately, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorneys’ offices have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
Members of the public are reminded to apply a critical eye and exercise due diligence before trusting anyone purporting to be working on behalf of disaster victims. They should also exercise the same care before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
In the Aftermath of Hurricane Dorian Department of Justice Reminds the Public to Be Aware of Fraud and Report It to the National Center for Disaster FraudRead the Press Release
WASHINGTON – The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“In the aftermath of Hurricane Dorian, I urge the public to be wary of fraudsters looking to exploit victims of the hurricane through identity theft schemes, solicitations for fake charities, or other types of fraud. Report suspected disaster fraud to the National Center for Disaster Fraud,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director.
Since Hurricane Dorian’s landfall, many people are left without food, water, or shelter, and are experiencing devastating damage to life and property. Unfortunately, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorneys’ offices have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
Members of the public are reminded to apply a critical eye and exercise due diligence before trusting anyone purporting to be working on behalf of disaster victims. They should also exercise the same care before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Illegal Alien Who Used Another Person’s Name and Social Security Number Sentenced to PrisonRead the Press Release
A man who used another person’s Social Security number to get a job was sentenced today to more than three months in federal prison.
Rony Sandoval-Ramirez, age 28, a citizen of Guatemala illegally present in the United States and residing in Toledo, Iowa, received the prison term after a June 25, 2019, guilty plea to one count of misuse of a social security number.
In a plea agreement, Sandoval-Ramirez admitted that on November 3, 2015, he used someone else’s name and social security number on employment forms and state and federal tax forms when applying for work in Tama, Iowa.
On September 5, 2016, Sandoval-Ramirez was arrested in Nobles County, Minnesota, and charged with driving while intoxicated. On September 7, 2016, Sandoval-Ramirez was arrested by immigrations for being illegally present in the United States and then released on an immigration bond. In July 2017, Sandoval-Ramirez was convicted of driving while intoxicated.
Following his release from immigration custody, Sandoval-Ramirez continued working under the false name in Tama, Iowa. He updated his employment forms in October 2018, again using the name and social security number of the other person. Sandoval-Ramirez worked under that person’s name until he was again arrested by immigration officials after he was charged with domestic assault with injury and two counts of child endangerment on May 25, 2019. These charges are currently pending in the Iowa District Court for Tama County.
Sandoval-Ramirez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Sandoval-Ramirez was sentenced to 98 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Sandoval-Ramirez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-61.
Follow us on Twitter @USAO_NDIA.
Guatemalan National Man Pleads Guilty to an Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – A Guatemalan national man pled guilty to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Daniel Lopez-Ajqui, 26, faces up to two years in prison, a $250,000 fine, three years of supervised release, a special assessment, and possible removal from the United States when he is scheduled to be sentenced on October 21, 2019. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE).
“This is Constitution Week in the United States and I celebrate that it is not only the finest document ever written by man but that it is also the foundation for the greatest nation in the history of the earth. But to be an American, you must follow the rules and come to this nation legally. This is Lopez-Ajqui’s third removal,” said United States Attorney Mike Stuart. “If he legally entered our country, he would be welcomed to stay.”
On June 11, 2019, Lopez-Ajqui was found in Elkview by members of ICE after they received information Lopez-Ajqui was working illegally in Elkview. ICE agents traveled to Elkview to confirm his legal status. The defendant admitted to agents that he was in the United States illegally. Lopez-Ajqui was arrested and ICE agents matched his fingerprints to previous removals from the United States. ICE agents further spoke to the defendant to confirm his identity. Lopez-Ajqui again admitted being in the United States illegally and had no identification documents permitting him legal status in the United States.
Fingerprinting matched Lopez-Ajqui to two prior removals from the United States in 2018 from Texas. In all prior removal hearings, Lopez-Ajqui was found by immigration judges to be in the United States illegally and he was deported to Guatemala. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Lopez-Ajqui further admitted to ICE agents that he was a Guatemalan citizen.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
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Georgia Man Pleads Guilty to Using the Internet to Attempt to Entice A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Douglas Scott Phillips (52, Richmond Hill, Georgia) has pleaded guilty to using the internet to attempt to entice a child to engage in sexual activity. Phillips faces a minimum mandatory penalty of 10 years, and up to life, in federal prison, and a potential life term of supervised release.
According to court documents, on November 15, 2018, a detective from the St. Johns County Sheriff’s Office engaged in an online undercover operation to identify individuals seeking to meet children for sex. The detective posted a notice on an online bulletin board using the fictitious persona of a “mother” with “a young 11-year-old daughter.” Phillips responded to the notice and confirmed the age of the “daughter.” Phillips indicated that he was “very interested” and sent the “mother” an explicit photo of himself.
Over the next two months, Phillips and the undercover officer had several online conversations in which Phillips expressed his desire and intention to engage in sexual activity with the “child.” During the conversations, Phillips instructed the “child” how to masturbate and sent pornographic photos illustrating how to do so. Phillips stated that he wanted to teach the “child” about sex in person. On January 7, 2019, Phillips told the “mother” that he was “serious about making this [meeting with the “child”] happen” and confirmed that he had texted with the “child” about masturbation.
On January 18, 2019, Phillips was arrested at his home in Georgia. During an interview, Phillips admitted seeing the advertisement and following up “just to see what it was.” He also admitted to engaging in sexual conversations with the “mother” and sending explicit pictures of himself to the “child.”
This case was investigated by the St. Johns County Sheriff’s Office, Homeland Security Investigations, the Liberty County (GA) Sheriff’s Office, and the Bryan County (GA) Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fourth Baltimore Man Pleads Guilty to Participating in A Conspiracy to Rob A Marijuana DealerRead the Press Release
Baltimore, Maryland – James Dorsey, a/k/a Boosey, Boosey Boo, and Bad Ass, age 24, of Baltimore, Maryland, pleaded guilty today to a commercial robbery, which resulted in the death of 18-year-old Markel Benson.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on October 12, 2015, Dorsey, Ameer Baker, Keyon Hawkins, and a juvenile planned a robbery of Benson, who sold marijuana outside a restaurant located in the 2300 block of W. North Avenue in Baltimore. Before the robbery, Dorsey, Baker, Hawkins, and the juvenile drove around the block where the restaurant was located to make sure that Benson was there. Baker was driving Hawkins’ car. After seeing Benson, Baker drove the men to Pulaski and Smallwood Roads, where they met Deonta Douglas. Baker gave Hawkins a gun. Hawkins, Douglas and the juvenile returned to the restaurant on foot, while Baker and Dorsey drove Hawkins’ car.
At approximately 6:40 p.m., Hawkins, Douglas, and the juvenile approached the restaurant and asked a friend of Benson’s if anyone had any “weed.” Benson’s friend indicated that Benson, who was inside the restaurant, had weed. Hawkins went inside and robbed Benson of his drugs, cash, and phones. Hawkins and the other men ran away. Benson was angry and wanted to find the men who robbed him and get his property back. Benson and his friend went to a nearby associate’s house to get a gun, then walked to the area where Benson believed they would find the robbers. Benson and his friend were captured on a CCTV street camera walking together and Benson appeared to be carrying a gun. The time noted on the CCTV camera was 6:55 p.m.
In the meantime, Douglas, Hawkins, Baker, Dorsey, and the juvenile were back on Ridgehill Avenue. Hawkins returned Baker’s gun to him and gave him Benson’s stolen phone. Hawkins started to roll a joint using Benson’s stolen marijuana when Douglas let the others know that Benson and his friend were coming up the street. Douglas yelled “line ‘em up,” a street phrase meaning to shoot someone. At that moment, Dorsey and Baker ran up an alley and Dorsey fired three shots. One shot hit Benson, killing him. Baker’s gun jammed. The CCTV camera captured individuals scattering on foot, running away from the shots.
Immediately after the shooting, Baker, at Dorsey’s direction, contacted a co-conspirator to take them from the scene of the crime. Baker used Benson’s stolen phone to call Hawkins and a family member.
Dorsey and the government have agreed that, if the Court accepts the plea agreement, Dorsey will be sentenced to 15 years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for December 16, 2019 at 3:00 p.m.
Keyon Hawkins, age 25; Deonta Douglas, a/k/a Cuzzo, age 24; and Ameer Baker, a/k/a Meer, age 25, all of Baltimore, previously pleaded guilty to their roles in the robbery. Hawkins was sentenced to 111 months in federal prison. Judge Bennett has scheduled sentencing for Baker and Douglas on November 12 and December 4, 2019, respectively, each at 3:00 p.m.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Lindsey N. McCulley, who are prosecuting the case.
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Four People Charged in $99 Million Scheme to Commit Health Care Fraud and Wire Fraud and Pay Kickbacks to Doctors and Their EmployeesRead the Press Release
TRENTON, N.J. – Four people have been charged for their roles in conspiracies to commit health care fraud and wire fraud and to pay kickbacks to doctors and doctors’ employees, U.S. Attorney Craig Carpenito announced today.
Alex Fleyshmakher, 33, of Morganville, New Jersey, was arrested this morning and will have his initial appearance this afternoon before U.S. Magistrate Judge Douglas Arpert in Trenton federal court. Also charged in the superseding indictment are: Ruben Sevumyants, 36, of Marlboro, New Jersey; and Samuel “Sam” Khaimov, 47, and Yana Shtindler, 44, both of Glen Head, New York. Sevumyants was previously charged by indictment, and Khaimov and Shtindler were each previously charged by complaint.
According to documents filed in this case:
Prime Aid Pharmacies – now closed – operated as “specialty pharmacies” out of locations in Union City, New Jersey, and Bronx, New York. They processed expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis. Fleyshmakher worked at Prime Aid Union City and was an owner of Prime Aid Bronx. Khaimov was an owner of Prime Aid Union City and the lead pharmacist of Prime Aid Bronx. Shtindler was Prime Aid Union City’s administrator, and Sevumyants was its operations manager.
Initially, Prime Aid Pharmacies obtained retail network agreements with several pharmacy benefit managers (PBMs), which allowed them to receive reimbursement payments for prescription medications, including specialty medications. PBMs acted as intermediaries on behalf of Medicare, Medicaid, and private healthcare insurance providers, so that when a pharmacy received a prescription, the pharmacy then submitted a claim for reimbursement to the PBM that represented the beneficiary’s drug plan.
Starting in 2009, in order to obtain a higher volume of prescriptions, Khaimov, Sevumyants, Fleyshmakher, and other Prime Aid employees paid bribes and kickbacks to doctors and doctors’ employees to induce them to steer prescriptions to Prime Aid Pharmacies. The kickbacks included expensive meals and payments by cash, check, and wire transfers. Another method of bribery also involved paying an employee to work inside a doctor’s office for the doctor’s benefit.
Prime Aid Union City – at the direction of Shtindler, Khaimov, and Sevumyants – also engaged in the pervasive fraudulent practice of billing health insurance providers for medications that were never provided to patients. While Prime Aid generally provided medications for initial prescriptions it received, it systematically billed for refills for those same medications without ever dispensing them to patients. From 2013 through 2017, Prime Aid Union City received over $65 million in reimbursement payments from Medicare, Medicaid, and private insurers for medications the pharmacy not only failed to give patients, but never even ordered or had in stock.
PBMs conducted routine audits of Prime Aid Union City and discovered its practice of billing but not dispensing medications. In response to these audits, Shtindler instructed Prime Aid employees to falsify records submitted to the PBMs. Sevumyants forged shipping records of a private commercial shipping company to make it appear as if medications were shipped to the patients when, in fact, they were not.
Despite these concealment efforts, some PBMs terminated the Prime Aid Pharmacies from their PBM networks. In order to continue profiting from these same PBMs, Khaimov and Shtindler opened new pharmacies, including Your Care Pharmacy in Bronx, New York, and transferred patients from the terminated Prime Aid Pharmacies to Your Care. To facilitate this scheme, Shtindler and Khaimov lied to the PBMs about the true ownership of those pharmacies, including Your Care, in order to ensure that in approving such pharmacies, the PBMs did not know the affiliation between the terminated pharmacies and the new pharmacies. This scheme resulted in one PBM being defrauded into paying Your Care over $34 million in reimbursement payments.
The superseding indictment charges each defendant as follows:
Counts
Defendants
Charge
One
Khaimov
Shtindler
Sevumyants
Health Care Fraud Conspiracy
Two – Five
Khaimov
Shtindler
Sevumyants
Health Care Fraud
Six
Khaimov
Shtindler
Wire Fraud Conspiracy
Seven – Nine
Khaimov
Shtindler
Wire Fraud
Ten
Khaimov
Sevumyants
Fleyshmakher
Kickback Conspiracy
The healthcare fraud counts charged in Counts One through Five are each punishable by a maximum of 10 years in prison. The wire fraud counts charged in Count Six through Nine are each punishable by a maximum of 20 years in prison. The conspiracy to pay illegal kickbacks charged in Count 10 in punishable by a maximum of five years in prison. All 10 counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Scott J. Lampert; and the N.J. Office of the State Comptroller, Medicaid Fraud Division, under the direction of Director Josh Lichtblau, with the ongoing investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care & Government Fraud Unit, and Senior Trial Counsel Jason S. Gould of Criminal Division of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Fleyshmakher: TBD
Khaimov: Anthony Iacullo Esq., Nutley, New Jersey
Shtindler: Lawrence S. Lustberg Esq., Newark
Sevumyants: Amy Luria Esq. & Michael Critchley Sr. Esq., RoselandFormer Tribal Officials Make Appearances and Plead Guilty to Embezzlement from an Indian Tribal Organization and Aiding and AbettingRead the Press Release
United States Attorney Ron Parsons announced today that two former Crow Creek Sioux Tribe councilmembers made appearances in federal court for their respective charges of Embezzlement & Theft from an Indian Tribal Organization, and Aiding and Abetting.
Tina Grey Owl, age 63, was charged for the offense by Information and made her appearance in federal court in Pierre on September 5, 2019. She appeared before U.S. District Judge Roberto A. Lange and pled guilty to the embezzlement offense set forth in the Information.
On September 9, Rozanne Lynette Sazue, age 62, also appeared before Judge Lange and pled guilty to the charge contained in the Superseding Indictment.
According to the Superseding Indictment, in about March 2014 through February 2019, Roland Robert Hawk, Sr., Francine Maria Middletent, Roxanne Lynette Sazue, Jacquelyn Ernestine Pease, and Brandon Sazue embezzled, stole, willfully misapplied, willfully permitted to misapplied, and converted to their own use over $1,000 of monies, funds, credit, goods, assets, and other property belonging to the Crow Creek Sioux Tribe. During times relevant to each defendant’s case, Brandon Sazue served as Chair of the Crow Creek Sioux Tribe, Hawk served as the elected Treasurer of the tribe, Roxanne Sazue was also chair, and Middletent and Grey Owl were elected councilpersons. When not serving in their respective leadership positions, all defendants, except for Brandon Sazue, worked for Hawk in the tribe’s finance office. In their respective leadership roles and employment positions, the defendants had the access and opportunity to the funds that were embezzled from the tribe.
The maximum penalties for each defendant upon conviction are as follows: 5 years imprisonment, a $250,000 fine, or both; 3 years, of supervised release; $ 100 to the Federal Crime Victims Fund; and restitution may be ordered.
The investigation is being conducted by the U.S. Attorney’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Roxanne Sauze and Tina Grey Owl were released on bond pending sentencing. A trial date for the other defendants has been set for October 8, 2019. The charges against the others are merely accusations and those defendants are presumed innocent until and unless proven guilty.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Salesman of Porsche Dealership Pleads Guilty to over $3 Million Fraud Scheme Involving Non-Existent Rare Porsche ModelsRead the Press Release
On September 13, 2019, a former salesman for Copans Motorsports d/b/a Champion Porsche, Shiraaz Sookralli, 45, of Plantation, pled guilty for leading a fraud scheme in which he entered into bogus sales orders for the sale of exotic Porsche models to over 30 customers throughout the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Gregory Tony, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Sookralli pled guilty to conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 19cr60188). He is scheduled for sentencing on November 14, 2019, at 10:00 am before U.S. District Judge Rodney Smith. He faces a maximum sentence of twenty years in prison.
According to his signed factual proffer and other court documents, in 2017, Sookralli opened a shell corporation with a name bearing a close resemblance to both Champion Porsche and another corporate affiliate of the dealership. After forming the shell corporation, Sookralli opened a bank account in the shell corporation’s name. Sookralli then entered into bogus sales orders with customers for the unauthorized sales of non-existent future exotic Porsche models. The majority of the vehicles were rare, highly sought-after, Carrera 911 models. The defendant required deposits from his victims in the form of, wire transfers, bank checks, and cash that he later deposited into his shell company’s bank account. The buyers relied on Sookralli’s longtime employment at Champion Porsche, title as “Vice President of Marketing,” representations that he or she would receive a yet-to-be-built Porsche vehicle, and the seemingly legitimate bank account for wiring deposits to Sookralli. Champion Porsche did not authorize Sookralli to conduct these transactions.
To further his scheme, Sookralli typically provided the customers with signed false and fraudulent purchase orders, sham vehicle build sheets showing the specifications of the customers' vehicle, as well as other false and fraudulent documents. Sookralli often communicated with customers using email and other wire communications. Some customers sent Sookralli payments using the United States mails and interstate bank wire transfers. During this same fraud scheme, Sookralli defrauded another victim with whom he had agreed to sell, “on consignment,” a certain Porsche vehicle for the victim. Once the defendant sold the car, he kept the money for himself.
Throughout the conspiracy, customers wired or otherwise transferred approximately $3,000,000 to Sookralli which he used for his personal benefit. As set forth in the court documents, the defendant used the money for extravagant expenditures including luxury vehicles, jewelry, nightclubs, and restaurants. Sookralli also funneled amounts in excess of $10,000 at a time from his shell company account to bank accounts he controlled.
Prior to executing the fraud scheme involving the bogus sales orders for the Porsche vehicles, in or around 2014 through 2016, Sookralli opened a separate “shell” company named Color Pro Motorsport. Through that company, Sookralli embezzled additional money from Champion Porsche.
After Champion Porsche uncovered Sookralli’s fraud scheme, it contacted his victims and began its cooperation with the criminal investigation. All of Sookralli's victims with valid claims were made whole by Champion.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, IRS-CI, and BSO in this matter. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Navy MP Sentenced to 20 years in Prison for Sexual Exploitation and Enticement of a MinorRead the Press Release
Assistant U.S. Attorneys Janet Cabral (619) 546-8715 or Amanda Griffith (619)546-8970
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Isaiah Smallwood Jackson, a former Navy military police officer, was sentenced today to 20 years in prison for sex crimes involving a 14-year-old girl.
Jackson was convicted by a federal jury in October 2018 of sexual exploitation of a minor and enticement of a minor. At the time of the offense in September of 2017, Jackson, 21, was on active duty with the U.S. Navy.
The jury found that Jackson created a profile on Spotafriend, a teens-only mobile application designed to allow teens to meet new friends. Because the terms of service for Spotafriend did not allow users over the age of 19 to create an account, Jackson created a user profile listing his name as “Logan” and listing his age as 17. In the description portion of the profile, however, he stated he was actually 21.
Using Spotafriend, Jackson began chatting with a 14-year-old girl from northern San Diego County. Early in their conversation, after making sure the victim knew he was 21, Jackson told the victim “is it bad that I don’t care about your age?” Jackson got the victim’s phone number and continued communicating with her through text messages. In one text Jackson asked the victim, “Okay cuteness, so are you ready to lose your virginity?” Jackson also enticed the victim to take explicit nude photos of herself to send to him.
Jackson got the victim’s home address and convinced her to permit him come to her home, telling her when she expressed that she was nervous, “Please I’m dying to see you” and “Take a leap of faith.” Once at the victim’s home, Jackson engaged in sexual acts with her, outside the home. Shortly after Jackson left, the victim reported the contact to her sister, who called the Oceanside Police Department.
Jackson was arrested by the Oceanside Police Department on September 21, 2017 and charged with state offenses relating to his sexual contact with the victim. At the time of his arrest, Jackson made a statement admitting he had communicated with the victim, and that he had gone to her house and engaged in sexual acts with her.
On October 25, 2017, Jackson was charged in federal court with use of a facility and means of interstate commerce to attempt to induce a minor to engage in unlawful sexual activity. Thereafter, a federal grand jury returned an indictment charging Jackson with sexual exploitation of a minor and enticement of a minor. A federal jury convicted Jackson on all counts after trial.
At sentencing, the victim’s family talked about how the victim has been devastated as a result of the contact with Jackson and is now afraid to be out in public or around men.
In imposing sentence, the Hon. Cynthia A. Bashant told Jackson that the Court “cannot ignore you engaged in clearly predatory conduct” by using a teens-only application to meet the victim and then continuing to communicate with the victim to convince her to let him come to her house.
Following his time in custody, Jackson will be on supervised release for a period of 10 years, during which he will be required to register as a sex offender, will be prohibited from initiating contact with minors or loitering in places primarily frequented by minors, and will be prohibited from accessing the internet except on devices where his use can be monitored by U.S. Probation Officers.
This case serves as a reminder for parents of the dangers posed by the internet, and the need for teenagers and their parents to maintain open lines of communication regarding online activity. Defendant’s abuse of a seemingly safe chat application for teens allowed Jackson access to this 14-year-old victim that he would not otherwise have had. From the time Jackson began chatting with the victim, until the time she reported the sexual contact to the police, just over 24 hours elapsed. Parents are urged to educate themselves and discuss these dangers with their children.
DEFENDANT Criminal Case No. 18cr1805-BAS
Isaiah Smallwood Jackson Age: 23 Vista, CA
SUMMARY OF CHARGE
- Count 1 – Title 18, United States Code, Section 2251(a), Sexual Exploitation of a Minor
- Count 2 – Title 18, United States Code, Section 2422(b) – Enticement of a Minor
- Criminal forfeiture – Title 18, United States Code, Section 2243 and 2428
Maximum penalties:
- Count 1 – 30 years in prison, with a minimum mandatory 15 years in prison
- Count 2 – Life in prison, with a minimum mandatory 10 years in prison
- As to all Counts, $250,000 fine
INVESTIGATING AGENCIES
Oceanside Police Department
Former Garden Plain Water Operator Pleads Guilty to Making False ReportRead the Press Release
WICHITA, KAN. - The former operator of the water system in Garden Plain, Kan., pleaded guilty today to falsifying a report on the quality of the city’s drinking water, U.S. Attorney Stephen McAllister said.
Arthur Wolfe, 64, Norwich, Kan., pleaded guilty to one count of a making a false statement in a report to the Kansas Department of Health and Environment that is required by the Environmental Protection Agency. Wolfe certified a bacteriological report in falsely represented water samples taken at the water treatment plant as samples taken at other locations.
Sentencing is set for Dec. 2. He faces a penalty of up to a year in federal prison and a fine up to $100,000. McAllister commended the Environmental Protection Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Former Fontana City Treasurer Sentenced for EmbezzlementRead the Press Release
WICHITA, KAN. – A former treasurer for the city of Fontana in Miami County, Kan., was sentenced Monday to 12 months and a day in prison for embezzlement, U.S. Attorney Stephen McAllister said.
Deborah Sell, 56, Fontana, Kan., pleaded guilty to one count of wire fraud and one count of filing a false tax return. In her plea, she admitted she used her position as treasurer to steal money from the city. She issued city checks to pay her personal expenses, withdrew cash using a city debit card for personal expenses, and deposited cash payments received from customers into her personal account.
At a sentencing hearing today, prosecutors told the court Sell embezzled a total of more than $174,000 from the city, including a debit card withdrawal of $414 at an ATM in a casino in Riverside, Mo.
She admitted her 2016 tax return failed to include more than $94,000 in income she embezzled that year.
McAllister commended the U.S. Secret Service, IRS-Criminal Investigation and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Duquesne Man Sentenced to Prison for Straw Purchasing and Trafficking FirearmsRead the Press Release
PITTSBURGH, Pa – A former resident of Duquesne, PA was sentenced to two years and 10 months (34 months) in prison and three years of supervised release on violations of federal firearms laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Khalil Armstrong, age 27, for conspiracy to make false statements in acquisition of a firearm, making a false statement in the acquisition of a firearm, and making a false statement to a licensed firearm dealer. Armstrong has been detained since his initial appearance in federal court.
According to information presented to the court, in and around January and February 2018, Armstrong, co-defendant Melvin Bowles, and others conspired to have Armstrong purchase firearms on behalf of Bowles and others. To further this conspiracy, Armstrong made false statements on required federal firearms forms and to federally licensed firearms dealers representing that he was the true purchaser of the firearms. In fact, Armstrong was not the true purchaser and was buying the firearms for other individuals including Bowles, a convicted felon. In total, Armstrong purchased 23 firearms in this manner and distributed them to Bowles and other individuals. On February 15, 2018, The Bureau of Alcohol, Tobacco, Firearms, and Explosives – Pittsburgh division executed a search warrant at Bowles’ residence and recovered the firearm purchased by Armstrong. The 22 remaining firearms have not been recovered. Melvin Bowles was sentenced previously to 14 months of time served.
Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
The Bureau of Tobacco, Alcohol, Firearms and Explosives conducted the investigation leading to the guilty plea and sentence in this case.
Former Corrections Officer, Union Treasurer Charged with Wire FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tony J. Liesenfeld, age 49, of Selinsgrove, Pennsylvania, was charged on September 13, 2019 in a felony information with wire fraud.
According to United States Attorney David J. Freed, the information alleges that between June 11, 2001 and November 25, 2015, Liesenfeld embezzled over $77,000 from American Federation of Government Employees Local 148. Liesenfeld allegedly used a union credit card to make unauthorized purchases and cash withdrawals, and forged checks from a union account to the same ends.
The case was investigated by the U.S. Department of Labor Office of Labor-Management Standards and is being prosecuted by Assistant U.S. Attorney Sean A. Camoni.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The highest maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Consultant to Airport Contractor Sentenced for Concealing Scheme to Defraud AirportRead the Press Release
Angelo D’Alessandro, 55, of Shelby Township, was sentenced today to 24 months probation and ordered to pay $73,000 in restitution, as well as a $5,000 fine, after having pleaded guilty to covering up co-defendant Gary Tenaglia’s efforts to defraud the Wayne County Airport Authority (WCAA) of over $1.5 million in 2012 and 2013, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Rainer S. Drolshagen, Acting Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Andrea M. Kropf, Special Agent-in-Charge of the Chicago Field Office of the United States Department of Transportation, Office of Inspector General.
According to court records, D’Alessandro, a business associate of Tenaglia’s, owned and operated a construction company, AQD Construction. Beginning in 2012, Tenaglia conceived and executed a scheme to defraud the WCAA by charging for the application of thousands of pounds of deicing salt called, “NAAC,” which was not applied. In order to conceal the fraudulent charges, Tenaglia fabricated invoices showing a purchase of NAAC for the WCAA from D’Alessandro’s construction company, which Tenaglia never purchased. After learning of Tenaglia’s scheme to defraud the airport, and assisting in its concealment, D’Alessandro failed to notify law enforcement of the crime.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Transportation. The case is being prosecuted by Assistant U.S. Attorneys Eaton P. Brown, Paul Kuebler, and R. Michael Bullotta.
First Wave of Indictments Returned in Jackson from U.S. Marshals Operation “Bluff City Blues”Read the Press Release
Jackson, TN – Three defendants have been indicted by a Federal Grand Jury in Jackson, TN on federal firearms offenses arising from the recent initiative led by the U.S. Marshals Service, Operation "Bluff City Blues". U.S. Attorney D. Michael Dunavant announced the new indictments today.
Operation "Bluff City Blues" was a two-week-long joint federal, state and local law enforcement initiative that resulted in the arrests of 214 individuals in West Tennessee. These individuals were arrested on a variety of criminal charges, including homicide, aggravated assault, robbery, carjacking, arson, drug distribution, illegal gun crimes and failure to register as sex offenders. Today, the first defendants arrested in that operation were indicted for the following offenses:
Isaac Caprice Williamson, of Jackson, TN – charged with one count of being a prohibited felon in possession of a firearm, pursuant to 18 U.S.C. 922(g)(1). The indictment alleges that Williamson was found to be in possession of a Glock 30 .45 caliber handgun during a traffic stop in Jackson, TN on August 20, 2019. Williamson is a convicted felon, having been convicted of multiple prior felony offenses in Madison Co., TN prior to his unlawful possession of the firearm on the above date.
Reginald Dontae Williamson, Jr., of Jackson, TN – charged with two counts of being a prohibited felon in possession of a firearm, pursuant to 18 U.S.C. 922(g)(1). The indictment alleges that Williamson, Jr. was found in possession of two firearms: a Cobray Mac-10 pistol and a Savage Stevens 320 12 gauge shotgun, during the execution of a state search warrant at his residence in Jackson on August 20, 2019. Williamson, Jr. is a convicted felon, having been convicted of multiple prior felony offenses in Madison Co., TN prior to his unlawful possession of the firearms on the above date.
Reggie Carnell James, Jr., of Jackson, TN - charged with three counts of being a prohibited felon in possession of a firearm, pursuant to 18 U.S.C. 922(g)(1). The indictment alleges that James, Jr. was found in possession of three firearms: a Glock 19 .9mm semi-automatic handgun, a Taurus PT111 .9mm semi-automatic handgun, and a Smith & Wesson .38 caliber revolver, during a search of his vehicle in Jackson on August 20, 2019. James, Jr. is a convicted felon, having been convicted of multiple prior felony offenses in Madison Co., TN prior to his unlawful possession of the firearms on the above date.
If convicted of the above federal firearms offenses, each defendant faces sentences of up to 10 years in prison for each count.
Operation "Bluff City Blues" was a coordinated violence reduction initiative led by the U.S. Marshals Service that brought together federal, state and local law enforcement partners, including the Jackson Police Department, the Madison County Sheriff’s Office, the Tennessee Highway Patrol in the Jackson Division, and the District Attorney General’s Office in Madison County, in an effort to reduce crime in West Tennessee by identifying and arresting violent fugitives, targeting violent gang activity, and collecting intelligence to allow for the systematic removal of individuals who have been charged with committing violent crimes in West Tennessee.
Assistant United States Attorney Joshua Morrow is prosecuting these cases on behalf of the government.
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Final Defendant Pleads Guilty in Connection with the State's Largest Methamphetamine SeizureRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of PETER MARTIN, 35, for conspiring to distribute approximately 191 pounds of methamphetamine. MARTIN and co-conspirators FERNANDO RAMOS-MEZA, 34, JAVIER LOPEZ-LOPEZ, 47, and JUAN DANIEL VALDEZ-MENDOZA, 24, were indicted on November 7, 2018. MARTIN pleaded guilty today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. He is scheduled to be sentenced on January 14, 2020.
According to the defendant’s guilty plea and documents filed in court, on September 11, 2018, law enforcement officers with the Cannon River Drug and Violent Crimes Task Force executed a search warrant at RAMOS-MEZA’s residence in north Minneapolis. During the search of the residence, officers located several items of contraband, including a 12-gauge sawed-off pump shotgun, and approximately 191 pounds of methamphetamine (with packaging).
This case is the result of an investigation conducted by the Cannon River Drug and Violent Crimes Task Force, Homeland Security Investigations, and the Minneapolis Police Department.
Assistant United States Attorney David P. Steinkamp is prosecuting the case.
Defendant Information:
PETER MARTIN, 35
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts Rochester Man of Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Sofonzia Mack, 37, of Rochester, NY, of possession with intent to distribute marijuana, and being a felon in possession of a handgun and ammunition. The charges carry a maximum penalty of 10 years in prison and a $500,000 fine.
Assistant U.S. Attorneys Matthew T. McGrath and Charles E. Moynihan, who handled the trial of the case, stated that on March 28, 2017, Rochester Police officers stopped a blue Kia Sedona in the 800 block of Exchange Street in Rochester after seeing the driver commit multiple violations of the New York State Vehicle and Traffic Law. As officers approached the vehicle, they smelled what they believed to be marijuana coming from inside. The driver and the defendant, who was in the front passenger seat, were directed to get out of the vehicle so officers could further investigate the smell.
While searching the defendant, officers found a .25 caliber, semiautomatic pistol in Mack’s jacket pocket. Officers could see the serial number on the firearm had been defaced and that it was loaded with four rounds of ammunition. Officers also seized 21 plastic vials containing marijuana in a draw-string bag, which the defendant had secured over his shoulder at the time of the stop, and over $900 in United States currency located in the center console.
On July 30, 2007, in Albany County Court, the defendant was convicted of Attempted Criminal Sale of a Controlled Substance in the Third Degree and sentenced to serve three years in prison. As a result, Mack was legally prohibited from possessing a gun.
The jury found the defendant not guilty of possessing a firearm in furtherance of a drug trafficking crime and knowingly possessing a defaced handgun.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The verdict is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
Sentencing is scheduled for December 5, 2019, at 10:00 a.m. before Judge David G. Larimer, who presided over the trial of the case.
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Father and two sons among six more defendants sentenced to prison in Operation Vanilla GorillaRead the Press Release
SAVANNAH, GA: Another round of sentencings in the Operation Vanilla Gorilla drug trafficking investigation is sending more defendants to substantial terms in federal prison.
Cody Penfield, 28, of Savannah, Ga., was sentenced Thursday, Sept. 12, 2019, in U.S. District Court in Savannah by Judge R. Stan Baker to 162 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
According to court filings and evidence presented in Court, Cody Penfield conspired with his brother, Nick Penfield, and his father, Michael Penfield, and others as part of a major drug trafficking organization that included associates of the Ghost Face Gangsters criminal street gang to distribute kilograms of crystal methamphetamine in the Southern District of Georgia and beyond. Nick Penfield is serving a sentence of 210 months in federal prison, and Mike Penfield is serving 175 months in federal prison. There is no parole in the federal system.
“A father and his two sons have now each been sentenced to more than a decade in prison for distributing poison throughout Georgia and the Southern District,” said U.S. Attorney Christine. “Instead of responsibly guiding his children, Mike Penfield teamed up with his adult sons to earn dishonest profit from criminal drug trafficking. They’ve now earned stiff prison sentences as payment for their crimes.”
All 43 defendants indicted in November and December 2018 in the conspiracy have pled guilty, and most have been sentenced to prison. Members of the drug-trafficking organization also recently sentenced include:
- Baby Dwayne Garrison, 55, of Bloomingdale, Ga., sentenced to 145 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine;
- Mike Penfield, 54, Savannah, sentenced to 175 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine;
- Marcus Logan Greco, 29, of Rincon, Ga., sentenced to 170 months of imprisonment for Conspiracy to Possess with Intent to Distribute Methamphetamine and Heroin, and to a consecutive 120 months in prison for Possession of a Firearm by a Prohibited Person;
- Robert Fuller, 40, of Richmond Hill, Ga., sentenced to 100 months of imprisonment for Conspiracy to Possess with Intent to Distribute Methamphetamine; and,
- David Rahn, 41, of Savannah, sentenced to 151 months in prison for Possession of Methamphetamine with Intent to Distribute.
Most of these defendants were on probation or parole when they committed the offenses, so the federal sentences will be run consecutive to the sentences for violating state probation or parole. After serving their federal sentences, each of the defendants will then be on federal supervision for at least three years.
Operation Vanilla Gorilla was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Georgia Bureau of Investigations (GBI), the Drug Enforcement Administration (DEA), the Chatham-Savannah Counter Narcotics Team (CNT), the Georgia Department of Corrections Intelligence Division, the Savannah Police Department, the Chatham County Sheriff’s Office, the Bryan County Sheriff’s Office, the Richmond Hill Police Department, the Pooler Police Department, the Effingham County Sheriff’s Office and the Bloomingdale Police Department, with assistance from the U.S. Marshals Service.
The case is being prosecuted by Assistant United States Attorneys E. Greg Gilluly Jr. and Frank Pennington. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Ex-Credit Union Manager Sentenced to More Than 14 Years in Federal Prison for $40 Million Embezzlement that Made Institution InsolventRead the Press Release
LOS ANGELES – The former manager of CBS Employees Federal Credit Union was sentenced today to 169 months in federal prison for a two-decade-long embezzlement that caused the credit union a loss of $40 million – a scheme that ultimately led to the financial cooperative being forced into insolvency.
Edward Martin Rostohar, 62, of Studio City, was sentenced by United States District Judge Otis D. Wright II.
Rostohar pleaded guilty on May 20 to one count of bank fraud. He used his position as a manager at the credit union, a federally insured financial institution, to make online payments from the credit union to himself or by forging the signature of another credit union employee on checks made payable to himself.
Prior to his three decades of employment at the credit union, Rostohar was a trained accountant and an examiner at the National Credit Union Administration (NCUA), a federal agency that regulates credit unions. During his approximately 20 years of embezzling from CBS Employees FCU, he used his senior position at the institution to falsify its records to hide his fraud and make credit union appear to be profitable despite it suffering more than $40 million in losses as a direct result of his scheme.
The scheme was exposed in March when a credit union employee, after discovering a $35,000 check payable to Rostohar, conducted an audit and discovered approximately $3.8 million in checks made payable to Rostohar between January 2018 and March 2019. Rostohar told law enforcement he gambled away much of the money and spent the rest on traveling by private jet, buying expensive watches, and giving his wife a weekly allowance of $5,000. Rostohar also started a coffee business in Reno, Nevada in December 2018, and he wrote tens of thousands of dollars’ worth of checks to himself to cover the business’s costs as well as to pay a $5,000 monthly mortgage on a home in Reno he recently purchased.
“(Rostohar) has the moral culpability of someone who was willing to leave as many as 43 depositors with deep losses so that he could wear $100,000 watches, buy a new vehicle every couple years, and impress women less than half his age with trips on private jets to international vacation resorts, Tiffany jewelry, and gambling parties,” the government wrote in the prosecution’s sentencing memorandum.
Rostohar has agreed to forfeit his ill-gotten gains, including bank accounts in his name and the names of his shell companies, four automobiles, including a Porsche, a Tesla and a Lexus, homes in Studio City, Reno, and Mexico, luxury watches, and jewelry.
Rostohar’s long-running fraud resulted in the decision by the NCUA to liquidate the credit union and discontinue its operations after determining the Studio City-based CBS Employees was insolvent with no prospect of restoring viable operations on its own. In March, University Credit Union of Westwood assumed CBS Employees’ assets, loans, and all member shares. At the time of its liquidation and sale, CBS Employees served 2,798 members and had assets of $21,037,558, according to the credit union’s most recent Call Report.
Rostohar has been in federal custody since his arrest on March 13.
This case was investigated by the Federal Bureau of Investigation and the Los Angeles Police Department.
This matter is being prosecuted by Assistant United States Attorneys Andrew G. Brown of the Major Frauds Section and Victor A. Rodgers, deputy chief of the Asset Forfeiture Section.
Employee at U.S. Military Base Admits to Accepting Bribes and KickbacksRead the Press Release
NEWARK, N.J. – A civilian employee of Picatinny Arsenal (PICA) and an employee of a defense contractor today admitted their roles in conspiring with others to receive bribes and other gratuities in return for assistance with the awarding of government contracts, U.S. Attorney Craig Carpenito announced.
Robert Dombroski, 64, of Branchville, New Jersey, a high ranking civilian employee at PICA, pleaded guilty before U.S. District Judge John Vazquez in Newark federal court to an information charging him with conspiring to commit wire fraud in order to accept or receive things of value in return for favorable assistance with government contracts and with making false claims against the United States.
Indra Nayee, 53, of Metuchen, New Jersey, pleaded guilty before Judge Vazquez to an information charging him with conspiring to give, offer or promise anything of value to a public official and to make false claims against the United States.
According to documents filed in this case and statements made in court:
Dombroksi worked at PICA, a U.S. Army installation in Morris County, New Jersey, for more than 30 years. PICA conducts research, development, acquisition and lifecycle management of advanced conventional weapons systems and advanced ammunitions and provides products and services to all branches of the U.S. military. Dombroski admitted that from at least January 2010 through December 2017, he conspired with other employees at PICA, with Subsystems Technology (STI) – a defense contracting firm that works with PICA and specializes in advanced engineering, advanced analytics, management consulting and IT services, including cyber-security – and employees of STI. He conspired to seek and accept gifts and other items of value, such as Apple products, luxury handbags, Beats headphones, and tickets to a luxury sky box at professional sporting events, valued at least $150,000 to $250,000, from STI in exchange for assistance in obtaining and retaining government contracts and other favorable assistance at PICA. He also admitted that in order to cover up his crimes, he filed false statements to the Department of Defense by failing to list the items of value he received from STI on his annual confidential financial disclosure form known as an OGE Form 450.
Nayee, an employee of STI, admitted that from January 2012 through December 2016, he conspired with STI and other employees of STI to offer gifts and other items of value to numerous individuals employed at PICA in order to obtain and retain contracts and other favorable assistance at PICA. He also admitted that he and other employees at STI, and the company, submitted false bills to the United States writing off the cost of the bribes as “materials” needed on United States government contracts, when in fact the gifts and other items of value were for the personal use and enjoyment of the employees at PICA and not for any legitimate government purpose.
The conspiracy charge to which Dombroski and Nayee pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing for Dombroski is scheduled for Nov. 19, 2019, and sentencing for Nayee is scheduled for Dec. 16, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Leigh-Alistair Barzey, Special Agent in Charge, DCIS Northeast Field Office; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge L. Scott Moreland, with the investigation leading to today’s guilty pleas.
The government is represented by Senior Trial Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office’s National Security Unit in Newark.
Eagle Butte Man Sentenced for Third Degree BurglaryRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Third Degree Burglary was sentenced on September 9, 2019, by U.S. District Judge Roberto A. Lange.
Michael Charlton, age 18, was sentenced to 6 months in federal prison, 6 months of home confinement, 3 years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and restitution in the amount of $6,785.83.
Michael Charlton was indicted by a federal grand jury on April 9, 2019. He pled guilty on June 18, 2019.
The conviction stemmed from an incident on January 29, 2019, where Charlton broke into a business in Eagle Butte, and stole over $2,500 in coins. While in the business, he also damaged several pieces of equipment, causing further loss to the victim.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Charlton was immediately turned over to the custody of the U.S. Marshals Service.
Dominican National Sentenced for Stealing Citizen’s Identity and Selling DrugsRead the Press Release
BOSTON – A Dominican national residing in Mattapan was sentenced today in federal court in Boston for Social Security fraud, aggravated identity theft, and drug possession.
Yhoan Alexis Nivar Rodriguez, 30, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 43 months in prison. Nivar will be subject to deportation upon completion of his sentence. Nivar previously pleaded guilty to Social Security fraud, aggravated identity theft, and possession with intent to distribute fentanyl, cocaine, and crack cocaine.
Nivar was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud. Dubbed “Double Trouble,” the investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force, comprised of local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
On Dec. 15, 2015, Nivar went to a Registry of Motor Vehicles office in Braintree and successfully applied for a Massachusetts driver’s license using the name, date of birth, and Social Security number of a female U.S. citizen from Puerto Rico. In July 2018, federal agents executed a search warrant at Nivar’s apartment. Inside a safe in Nivar’s bedroom, agents recovered over 70 grams of fentanyl, cocaine, and crack cocaine packaged for street-level sales, plus a drug ledger and $1,500 cash. Another $2,753 cash was found on a table in the bedroom. Nivar admitted to buying and selling drugs.
United States Attorney Andrew E. Lelling; Jason Molina, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Unlawful ReentryRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Diostene Pimental, 42, a Dominican national formerly residing in Boston, pleaded guilty to one count of unlawfully re-entering the United States after being deported. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 9, 2019.
According to the indictment, Pimental was removed in November 2012 and subsequently re-entered the United States without permission. The indictment further alleges that Pimental was deported after being convicted of an aggravated felony.
Pimental 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. Pimental will 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 Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
Defendant who conspired to steal aircraft secrets pleads guiltyRead the Press Release
SAVANNAH, GA: A North Carolina man has admitted taking part in a conspiracy to steal design information from aircraft companies to speed up approval of competing airplane technology.
Craig German, 59, of Kernersville, N.C., entered a guilty plea to Conspiracy to Steal Trade Secrets in U.S. District Court in Savannah, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
German faces up to 10 years in prison, a $250,000 fine and three years of supervised release upon completion of his sentence. There is no parole in the federal system.
According to court documents and testimony, German agreed with his co-conspirators to steal trade secrets from aircraft companies in order to assist a competitor company in developing their own anti-ice aircraft technology. Without authorization, German copied anti-ice trade secret documents onto a storage device from the aircraft company for which he worked, and then emailed those documents to his co-conspirators.
“German and his co-conspirators stole the secrets of U.S. companies rather than do the hard work necessary to succeed,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Our office takes the theft of intellectual property very seriously, and we will remain on the front lines of defending U.S. companies against this emerging economic threat.”
“Companies spend millions of dollars to develop trade secrets to compete in a free market system,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We cannot allow anyone to circumvent the system by using illegal and deceptive practices to steal protected information. The FBI is committed to identifying and prosecuting anyone who does.”
The case is being investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee.
Decatur County Man Sentenced to 8 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Jackson, TN – Joshua Emile Malone, 28, of Parsons, TN., has been sentenced to 97 months in federal prison for possession of methamphetamine with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on April 12, 2018, during the execution of felony arrest warrants at a residence in Parsons, Tennessee, Malone was found at home with a loaded .22 caliber revolver and a loaded .45 caliber semi-automatic pistol. After law enforcement secured the house, they executed a search warrant and recovered the following items in Malone’s bedroom:
9.2 g marijuana
3.2 grams methamphetamine
Remington Model 770
Stevens Savage model 77C18I sawed off pump shotgun (15 in barrel)
2 digital scales
Glass pipe
(31) 12 gauge shotgun shells
(5) 20 gauge shotgun slugs
(26) .25 caliber pistol rounds
(11) .38 caliber pistol rounds
(50) .380 caliber pistol rounds
(2) .45 long Colt pistol rounds
(1) 30-30 rifle round
(1) 25-06 rifle round
(2) 300 win mag rifle rounds
(4) 10 gauge shotgun shells
(9) 16 gauge shotgun shells
U.S. Attorney D. Michael Dunavant said, "The U.S. Attorney’s Office is a full-service federal prosecution office, and we have the ability and intention to charge any violations of federal law, no matter where they occur in the Western District of Tennessee. This case demonstrates our focus on the priority areas of firearms and narcotics cases that impact public safety in our rural communities, and we appreciate the partnerships with our local law enforcement agencies in Decatur County."
On September 12, 2019, U.S. Chief District Court Judge S. Thomas Anderson sentenced Malone to 97 months imprisonment followed by 3 years supervised release.
"I'd like to thank the DOJ and the FBI for their assistance in the prosecution of this violent offender. My investigators are working extremely hard on removing these types of offenders from our county. Having a good working relationship with these federal agencies insures stiffer sentences for these offenders. It also sends a message to other offenders in our county that this department is serious about providing a safe environment for our children," said Decatur County Sheriff, Keith Byrd.
This case was investigated by the Decatur County Sheriff's Department, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Hillary Parham prosecuted this case on behalf of the government.
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Dealer Admits Selling Deadly Fentanyl Laced PillsRead the Press Release
Sherri Walker Hobson (619) 546-6986
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Christopher James Stracuzzi entered a guilty plea in federal court today, admitting that he distributed fentanyl that resulted in the death of a San Diego man. Stracuzzi will be sentenced on December 2, 2019 at 9 a.m., before U.S. District Judge Thomas J. Whelan.
According to court documents, on July 18, 2018, at approximately 8:43 p.m., the San Diego Police Department received a 911 call about an unconscious male passed out on the floor in his apartment. His roommate attempted to perform CPR even though she was groggy from have taken a pill herself. Paramedics arrived on scene and unsuccessfully attempted resuscitation. The man was pronounced dead at 9:12 p.m.
The roommate of the deceased man told investigators that Stracuzzi sold the deceased 12 tablets that the deceased believed to be oxycodone pills. Both the roommate and the deceased man took a pill. After learning from the Medical Examiner's Office that her roommate died of a fentanyl overdose, the roommate suspected that the pills they had taken that fateful night were not oxycodone, but were in fact, counterfeit pills containing fentanyl. When the DEA Southwest Regional Laboratory, tested the remaining 10 tablets, chemists determined they contained fentany1.
The Drug Enforcement Administration, Homeland Security Investigations, San Diego Police Department, Federal Bureau of Investigation and California State Department of Health Care Services, along with the San Diego District Attorney’s Office and the U.S. Attorney’s Office, are part of a team that investigates and prosecutes fatal overdose cases.
“Dealers beware: You will be held responsible for the deaths of your customers,” said U.S. Attorney Robert “But we can’t reverse the tragedy of the shattered lives of the victims and their families. I cannot say this any more strongly or directly: Don’t take these black market pills. You may pay the ultimate price for this terrible mistake.”
“Tragic cases of overdose deaths caused by fentanyl will leave scars on families in our communities for decades to come,” said HSI San Diego SAC Dave Shaw. “HSI is committed to working with our partners to remove this scourge from our streets. We urge everyone to take the time to learn about these deadly drugs and take the steps necessary to protect their families and loved ones.”
“We are living in a world where drug cartels are getting rich from making counterfeit pills that contain fentanyl and we are paying a heavy price, in blood,” said DEA Special Agent in Charge Karen Flowers. “There is no quality control or FDA oversight. If you didn’t get that pill directly from a pharmacy with a prescription in your name, you won’t be able to tell if the pill is real or counterfeit. Even the experts can’t tell until it is examined in a laboratory. When you crush or swallow that blue pill that looks like a 30 mg oxycodone tablet, you are risking your life. I’ll say it again, your dealer, BFF, lover, or classmate may become your murderer and the medical examiner your personal physician. Life is precious. Don’t gamble yours away for a quick high that sends you home from the party in a body bag.”
These case is being prosecuted by Assistant United States Attorney Sherri Walker Hobson.
DEFENDANT Case Number 19CR0368W
Christopher James Stracuzzi San Diego
SUMMARY OF CHARGES
Title 21 U.S.C. §§ 841(a) & 841(b)(1)(C) Distribution of Fentanyl Resulting in Death
Title 18 U.S.C. § 2 Aiding and Abetting
Maximum penalty: Life in custody, with a mandatory minimum penalty of 20 years
AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
San Diego Sheriff’s Office
San Diego Police Department
Federal Bureau of Investigation
Department of Health Care Services
DeKalb felon sentenced for robbing multiple Waffle House restaurants and a motelRead the Press Release
ATLANTA – Joseph Orlando Hood, a career offender, has been sentenced following his armed robbery of three Waffle House restaurants and a DeKalb County motel.
“Hood threatened the lives of multiple citizens and law enforcement officers during his crime spree,” said U.S. Attorney Byung J. “BJay” Pak. “He demonstrated a complete lack of concern for the victims in this case and justly deserved this lengthy prison sentence.”
“Criminals who choose to use guns to harm or intimidate their victims have no regard for others,” said ATF Special Agent in Charge Arthur Peralta. “Mr. Hood initiated those acts of violence and his actions placed many innocent people at risk of great bodily harm or worse.”
According to U.S. Attorney Pak, the charges, and trial transcript: Hood robbed three Waffle House restaurants and a motel during a one-week span. Two of the restaurant robberies occurred on the same day. Hood shot at a customer during one of the Waffle House robberies. While he missed the customer, Hood nearly struck a Waffle House employee. During the motel robbery, Hood hit an employee on the head with the butt of his gun, knocking the employee unconscious.
Hood’s robbing spree ended during the early morning hours of November 17, 2016. That day, Hood entered a local bar and grill restaurant and walked towards a backroom where customers were seated. Hood pointed two firearms at the customers and demanded money. While Hood was taking money from the customers, one of the men tried to escape. Hood fired his gun at the man and chased him through the Bar, while firing additional rounds.
After fleeing the restaurant, Hood exchanged gunfire with the bar’s owner. During the gun battle, the bar owner shot Hood in the leg. Hood then fled to a nearby apartment complex, where DeKalb County police officers arrested him. The officers transported Hood to a local hospital from where Hood subsequently escaped. Shortly after, Atlanta Police officers apprehended him.
Joseph Orlando Hood, 32, of Scottsdale, Georgia was sentenced by U.S. District Judge Steve C. Jones to 39 years in federal prison, followed by five years of supervised release. On February 12, 2019, a jury found Hood guilty of four counts of Hobbs Act robbery and four counts of brandishing a firearm during those robberies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the DeKalb County Police Department.
Assistant U.S. Attorneys Dash A. Cooper and Joseph Plummer prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected].
Dallas County Woman Charged with Theft of Government Funds and Aggravated Identity TheftRead the Press Release
United States Attorney, Richard W. Moore, of the Southern District of Alabama announces that Tonya Lewis, a 39 year old resident of Selma, Alabama was charged in a two Count Indictment with Theft of Government Funds (Count One) and Aggravated Identity Theft (Count Two). The Indictment alleges that Lewis stole approximately $95,689.44 from HUD that was entrusted to the Selma Housing Authority and that she stole the identity of another person to obtain a credit card.
Upon conviction, Lewis will face a maximum penalty of 10 years of incarceration, a fine of $250,000 and a supervised release term of three years for Count One. Lewis faces a minimum mandatory two years consecutive to any other sentence imposed, a fine of $250,000 and a supervised release term of three year for Count Two.Nadine E. Gurley, Special Agent in Charge, HUD-OIG remarked, ” [a]s the Office of Inspector General for the U.S. Department of Housing and Urban Development (HUD), it is our responsibility to investigate allegations of fraud against HUD and HUD funded agencies such as the Selma Housing Authority. We will continue to promote our efforts in conjunction with the U.S. Attorney’s Office during this investigation.”
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until and unless he or she is proven guilty at trial.
Dallas County Man Found Guilty of Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Jarriet Rascoe, a 32 year old resident of Selma, Alabama was found guilty of possession of a firearm after conviction of a felony. The trial was held on September 6, 2019.
The evidence produced at trial showed that on February 7, 2019, Rascoe knew he was a felon. A Selma police officer conducted a traffic stop on a white Oldsmobile Cutlass being driven by Rascoe that was speeding. As the vehicles came to a stop, the officer ran a check on the tag of the vehicle. The vehicles came to a stop in Rascoe’s driveway. As the officer approached the driver’s side of the vehicle, Rascoe quickly exited the vehicle and said, “I don’t want a speeding ticket.” The officer told him to stop and stay where he was. Rascoe complied. The officer then asked Rascoe for his driver’s license and proof of insurance. Rascoe responded that he did not have his license on him and that he did not have insurance. Rascoe asked a child in the yard at his residence to retrieve his license from inside a different vehicle in the yard of the residence and the child did. The officer then ran Rascoe’s license and also learned that the tag came back to a different vehicle. The officer then believed that the vehicle may have been stolen. Next, he asked Rascoe if the vehicle was his and Rascoe said, “Yes.” Rascoe appeared nervous. The officer then asked Rascoe if he had illegal drugs or weapons in the vehicle. Rascoe replied, “No.” Next, the officer asked for permission to search the vehicle and Rascoe said, “No.” The officer decided to call for a K-9 unit. The K-9 unit arrived approximately four minutes later. The K-9 officer walked his dog around the vehicle and the dog alerted on the front driver’s door. A search was then conducted of the vehicle. Seized from the driver’s side floorboard was a very small quantity of marijuana. Seized from the trunk of the vehicle were three firearms. Two of the firearms were loaded. The firearms were described as a Smith & Wesson, model SD40, .40 caliber pistol, a Ruger, model P89, .9 caliber pistol and Smith & Wesson, model 51, .22 caliber revolver. Rascoe told the officers that he was aware of one of the firearms but not the other two. Rascoe asked the officers if the “feds were going to get the case?” One officer respond, I don’t know.” Rascoe asked again, “do you think the feds are gonna pick up this case?” That officer then responded, “You know you are a felon and should not be riding around with guns in the trunk.” At that time, Rascoe had been convicted of a felony.Officers of the Selma, AL Police Department along with special agents of the Bureau of Alcohol Tobacco Firearms and Explosives investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Current and Former Precious Metals Traders Charged with Multi-Year Market Manipulation Racketeering ConspiracyRead the Press Release
Two current precious metals traders and one former trader in the New York offices of a U.S. bank (Bank A) were charged in an indictment unsealed today for their alleged participation in a racketeering conspiracy and other federal crimes in connection with the manipulation of the markets for precious metals futures contracts, which spanned over eight years and involved thousands of unlawful trading sequences.
Charged in the indictment are:
- Gregg Smith, 55, of Scarsdale, New York. Smith was an executive director and trader on Bank A’s precious metals desk in New York. He joined Bank A in May 2008 after it acquired another U.S. bank (Bank B).
- Michael Nowak, 45, of Montclair, New Jersey. Nowak was a managing director and ran Bank A’s global precious metals desk. He joined Bank A in July 1996.
- Christopher Jordan, 47, of Mountainside, New Jersey. Jordan joined Bank A in March 2006 and was an executive director and trader on Bank A’s precious metals desk in New York. Jordan left Bank A in December 2009 and worked as a precious metals trader at a Swiss bank (Bank C) in New York from March 2010 until August 2010. From June 2011 until October 2011, Jordan traded precious metals futures contracts as an employee of a financial service company (Company D) in New York.
“The defendants and others allegedly engaged in a massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants,” said Assistant Attorney General Brian A. Benczkowski. “These charges should leave no doubt that the Department is committed to prosecuting those who undermine the investing public’s trust in the integrity of our commodities markets.”
“Smith, Nowak, Jordan, and their co-conspirators allegedly engaged in a complex scheme to trade precious metals in a way that negatively affected the natural balance of supply-and-demand,” said FBI Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office. “Not only did their alleged behavior affect the markets for precious metals, but also correlated markets and the clients of the bank they represented. For as long as we continue to see this type of illegal activity in the marketplace, we’ll remain dedicated to investigating and bringing to justice those who perpetrate these crimes.”
Each of the three defendants was charged with one count of conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity (more commonly referred to as RICO conspiracy); one count of conspiracy to commit wire fraud affecting a financial institution, bank fraud, commodities fraud, price manipulation and spoofing; one count of bank fraud and one count of wire fraud affecting a financial institution. In addition, Smith and Nowak were each charged with one count of attempted price manipulation, one count of commodities fraud and one count of spoofing.
Smith is expected to make an initial appearance in the Southern District of New York before U.S. Magistrate Judge Judith C. McCarthy, and Nowak and Jordan are expected to make their initial appearances in the District of New Jersey before U.S. Magistrate Judge Michael A. Hammer. The case was indicted in the Northern District of Illinois and has been assigned to U.S. District Judge Edmond E. Chang.
As alleged in the indictment, between approximately May 2008 and August 2016, the defendants and their co-conspirators were members of Bank A’s global precious metals trading desk in New York, London and Singapore with varying degrees of seniority and supervisory responsibility over others on the desk. As it relates to the RICO conspiracy, the defendants and their co-conspirators were allegedly members of an enterprise—namely, the precious metals desk at Bank A—and conducted the affairs of the desk through a pattern of racketeering activity, specifically, wire fraud affecting a financial institution and bank fraud.
The indictment alleges that the defendants engaged in widespread spoofing, market manipulation and fraud while working on the precious metals desk at Bank A through the placement of orders they intended to cancel before execution (Deceptive Orders) in an effort to create liquidity and drive prices toward orders they wanted to execute on the opposite side of the market. In thousands of sequences, the defendants and their co-conspirators allegedly placed Deceptive Orders for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc. (NYMEX) and Commodity Exchange Inc. (COMEX), which are commodities exchanges operated by CME Group Inc. By placing Deceptive Orders, the defendants and their co-conspirators allegedly intended to inject false and misleading information about the genuine supply and demand for precious metals futures contracts into the markets, and to deceive other participants in those markets into believing something untrue, namely that the visible order book accurately reflected market-based forces of supply and demand. This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling precious metals futures contracts at quantities, prices and times that they otherwise likely would not have traded, the indictment alleges.
As also alleged in the indictment, the defendants and their co-conspirators defrauded Bank A’s clients who had bought or sold “barrier options” by trading precious metals futures contracts in a manner that attempted to push the price towards a price level at which Bank A would make money on the option (barrier-running), or away from a price level at which Bank A would lose money on the option (barrier-defending). Namely, when barrier-running, the defendants and their co-conspirators would allegedly place orders for precious metals futures contracts in a way that was intended to deliberately trigger the barrier option held by Bank A. Conversely, when barrier-defending, the defendants and their co-conspirators would allegedly place orders for precious metals futures contracts in a way that was intended to deliberately avoid triggering the barrier option held by clients of Bank A.
The indictment also identifies two former Bank A precious metals traders, John Edmonds and Christian Trunz, as being among the defendant’s co-conspirators. Edmonds worked at Bank A from 2004 to 2017 and was a trader on Bank A’s precious metals desk, leaving as a vice president. On Oct. 9, 2018, Edmonds pleaded guilty in the District of Connecticut to an information charging him with one count of commodities fraud and one count of conspiracy to commit wire fraud, commodities fraud, price manipulation and spoofing. Trunz is a former precious metals trader at Bank A who worked at the bank from 2007 to August 20, 2019, leaving as an executive director. On Aug. 20, 2019, Trunz pleaded guilty in the Eastern District of New York to an information charging him with one count of conspiracy to engage in spoofing and one count of spoofing.
This case is the result of an ongoing investigation by the FBI’s New York Field Office. The Commodity Futures Trading Commission’s Division of Enforcement provided assistance in this case. Trial Attorneys Avi Perry and Matthew F. Sullivan of the Criminal Division’s Fraud Section are prosecuting the case.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information at https://www.justice.gov/criminal-fraud/victim-witness-program.
Couple Who Worked at Local Research Institute for 10 Years Charged with Stealing Trade Secrets, Wire FraudRead the Press Release
COLUMBUS, Ohio – A former Dublin, Ohio couple has been charged with crimes connected to stealing exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
John C. Demers, Assistant Attorney General for National Security, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, Yu Zhou, 49, and Li Chen, 46, currently of San Diego, Calif., conspired to, attempted to and did steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for their own personal financial gain.
The defendants were arrested in California in July and the case was unsealed today at the defendants’ arraignments in federal court in Columbus at 2pm before U.S. District Judge Sarah D. Morrison.
Zhou and Chen are spouses who worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
The husband and wife allegedly founded a company in China in 2015 without the hospital’s knowledge. While Zhou and Chen continued to be employed by Nationwide Children’s, they marketed products and services related to exosome isolation through their Chinese company.
The indictment also alleges that in 2017, Zhou helped co-found an American biotechnology company. As of 2019, the company’s website advertised multiple products and services related to exosome isolation, including a kit that was developed from a trade secret created at a Nationwide Children’s research lab.
Zhou and Chen allegedly used the hospital’s Research Institute resources and equipment to conduct the exosome research for their unauthorized, outside work.
In November 2017, Zhou and Chen allegedly received more than $876,000 and stock related to an asset purchase agreement involving the American biotechnology company. It is also alleged Zhou entered into a stock purchase agreement with that same company under which he would receive $450,000.
Zhou resigned from the Research Institute at Nationwide Children’s, effective November 10, 2017. On January 31, 2018, Chen resigned from her position at the research institute.
Before his official last day of employment with the research institute, Zhou allegedly participated in a press release announcing the American company’s plans to market and distribute “proprietary exosome isolation systems” from its headquarters in Central Ohio.
“Nationwide Children’s Hospital devoted years of work and its own money to researching exosomes in order to promote honorable medical advances,” U.S. Attorney Glassman said. “The hospital’s Research Institute took reasonable measures to keep its trade secrets secret. I commend the cooperation of Nationwide Children’s throughout this investigation.”
“The theft of trade secrets is a growing threat that severely impacts our economy and our national security,” stated FBI Cincinnati Special Agent in Charge Todd Wickerham. “The FBI is committed to investigating these cases and working with all of our partners to protect intellectual property.”
Conspiring to, attempting to and committing theft of trade secrets is punishable by up to 10 years in prison. Conspiring to, attempting to and committing wire fraud carries a potential maximum sentence of up to 20 years in prison.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate and J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, who are prosecuting the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Couple Who Worked at Local Research Institute for 10 Years Charged with Stealing Trade Secrets, Wire FraudRead the Press Release
A former Dublin, Ohio, couple has been charged with crimes related to stealing exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions announced Assistant Attorney General John C. Demers of National Security, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Assistant Director John Brown of the Counterintelligence division and FBI Special Agent in Charge Todd Wickerham of the Cincinnati division.
“Nationwide Children’s Hospital devoted years of work and its own money to researching exosomes in order to promote honorable medical advances,” U.S. Attorney Glassman said. “The hospital’s Research Institute took reasonable measures to keep its trade secrets secret. I commend the cooperation of Nationwide Children’s throughout this investigation.”
“The theft of trade secrets is a growing threat that severely impacts our economy and our national security,” stated FBI Cincinnati Special Agent in Charge Todd Wickerham. “The FBI is committed to investigating these cases and working with all of our partners to protect intellectual property.”
According to the indictment, Yu Zhou, 49, and Li Chen, 46, currently of San Diego, California, conspired to, attempted to and did steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for their own personal financial gain.
The defendants were arrested in July and the case was unsealed today at the defendants’ arraignments in federal court in Columbus at 2pm before U.S. District Judge Sarah D. Morrison.
Zhou and Chen are spouses who worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
The husband and wife allegedly founded a company in China in 2015 without the hospital’s knowledge. While Zhou and Chen continued to be employed by Nationwide Children’s, they marketed products and services related to exosome isolation through their Chinese company.
The indictment also alleges that in 2017, Zhou and Chen helped co-found an American biotechnology company. As of 2019, the company’s website advertises multiple products and services related to exosome isolation, including a kit that was developed from a trade secret created at a Nationwide Children’s research lab.
Zhou and Chen allegedly used the hospital’s Research Institute resources and equipment to conduct the exosome research necessary for their unauthorized, outside work.
In November 2017, Zhou and Chen allegedly received more than $876,000 and stock related to an asset purchase agreement involving the American biotechnology company. It is also alleged Zhou entered into a stock purchase agreement with that same company under which he would receive $450,000.
Zhou resigned from the Research Institute at Nationwide Children’s, effective Nov. 10, 2017. On Jan. 31, 2018, Chen resigned from her position at the research institute.
Before his official last day of employment with the research institute, Zhou allegedly participated in a press release announcing the American company’s plans to market and distribute “proprietary exosome isolation systems” from its headquarters in Central Ohio.
Conspiring to, attempting to and committing theft of trade secrets is punishable by up to 10 years in prison. Conspiring to, attempting to and committing wire fraud carries a potential maximum sentence of up to 20 years in prison.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as Assistant United States Attorneys S. Courter Shimeall, Peter Glenn-Applegate and J. Michael Marous and National Security Division trial attorney Matthew J. McKenzie, who are prosecuting the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
Corrections Officer Sentenced for Scheme to Smuggle Opioids into MCI-NorfolkRead the Press Release
BOSTON – A former corrections officer at the Massachusetts Correctional Institute facility in Norfolk (MCI-Norfolk) was sentenced today in federal court in Boston in connection with a conspiracy to smuggle Suboxone strips into the facility for an inmate.
Steven J. Frazer, 29, of Cumberland, R.I., was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 30 days in prison, two years of supervised release and ordered to pay forfeiture of $2,500. In May 2019, Frazer pleaded guilty to an Information charging him with one count of conspiracy to possess a controlled substance with intent to distribute.
Beginning around Nov. 14, 2018, Frazer, who was working as a corrections officer, arranged with a cooperating witness to smuggle Suboxone strips into MCI-Norfolk to sell to inmates. Suboxone is a Class III controlled substance used to treat heroin addiction, but some people abuse it to get high. It is coveted as contraband in prisons across the nation and particularly in New England.
Around midnight on Sunday, Nov. 18, 2018, the cooperating witness met Frazer in a South Attleboro parking lot and provided him with 40 Suboxone strips, 24 pages of K2 (a synthetic cannabinoid, which is more powerful and more dangerous than marijuana), and $2,500 in cash. After the meeting – which was audio and video recorded by law enforcement – federal agents arrested Frazer.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol A. Mici of the Massachusetts Department of Correction made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
Chinese Government Employee Charged in Manhattan Federal Court with Participating in Conspiracy to Fraudulently Obtain U.S. VisasRead the Press Release
The Department announced today the arrest of Zhongsan Liu, who was charged by complaint for his involvement in a conspiracy to fraudulently obtain U.S. visas for Chinese government employees. Liu was arrested today in Fort Lee, New Jersey, and presented this afternoon in Manhattan federal court before the U.S. Magistrate Judge Ona T. Wang.
“We welcome foreign students and researchers, including from China, but we do not welcome visa fraud – especially on behalf of a government,” said Assistant Attorney General John C. Demers of National Security. “We will continue to confront Chinese government attempts to subvert American law to advance its own interests in diverting U.S. research and know-how to China.”
“As alleged Zhongsan Liu conspired to obtain research scholar visas fraudulently for people whose actual purpose was not research but recruitment,” said U.S. Attorney Geoffrey S. Berman. “Rather than helping to bring students to the U.S., Liu allegedly conspired to defraud this country’s visa system to advance his efforts to attract U.S. experts to China. Thanks to the FBI, this alleged abuse of the visa system has been halted.”
"Zhongsan Liu broke the law by seeking visas for employees of the government of The People's Republic of China to enter the United States under false pretenses. Individuals obtained visas under the guise of research scholars, but in reality their assignment was to recruit top U.S. talent to benefit the government of China," said Assistant Director John Brown of the FBI's Counterintelligence Division. "The FBI recognizes the immense benefit of academic freedom in our open society, and we will investigate those who break our laws in an effort to take advantage of that freedom.”
“The allegation that an employee of a foreign government has worked to mask the true purpose of an individual’s presence in the United States isn’t news to the FBI,” said FBI Assistant Director William F. Sweeney Jr. “This alleged behavior should be another alarm bell that foreign governments are constantly working to exploit research work being conducted throughout the United States. Not everyone shares the honest goal of conducting open research to benefit society as a whole. This case is another example of the pervasive and organized effort, in this instance an allegedly flat-out illegal one, to fulfill a top priority of collecting information to advantage a foreign adversary. Putting a halt to Mr. Liu’s alleged actions are an important and significant step to highlighting these activities. The FBI New York, along with our intelligence community partners, will continue to disrupt the behavior when it is detected.”
According to the allegations in the Complaint unsealed in Manhattan federal court:
From approximately 2017, up to and including September 2019, Liu participated in a conspiracy to fraudulently procure U.S. visas for employees of the government of the People’s Republic of China (PRC Government). Liu operates the New York office of the China Association for International Exchange of Personnel (CAIEP-NY). CAIEP-NY is a PRC Government agency that, among other things, recruits U.S. scientists, academics, engineers and other experts to work in China.
Liu worked with others, including other PRC Government employees in the United States, to fraudulently procure J-1 Research Scholar visas for a CAIEP-NY employee (CC-1) and a prospective CAIEP-NY employee (the CAIEP-NY Hire). The J-1 Research Scholar visa program permits foreign nationals to come to the United States for the primary purpose of conducting research at a corporate research facility, museum, library, university or other research institution.
In or about April 2018, CC-1 applied for and received a J-1 visa to conduct research at a particular U.S. university (University-1) located outside of New York. Although CC-1 represented to the U.S. Government that she was entering the United States for the primary purpose of conducting research at University-1, CC-1’s actual purpose in the United States consisted of performing full-time talent-recruitment work at CAIEP-NY. Liu helped CC-1 take measures to enhance her false appearance as a Research Scholar at University-1 by, among other things, directing CC-1 to report to University-1 upon her arrival in the United States; ensuring that CC-1 obtained a driver’s license in the state where University-1 is located; and instructing CC-1 to periodically visit University-1 while working full-time at CAIEP-NY.
In addition, Liu attempted to enable the CAIEP-NY Hire to obtain a J-1 Research Scholar visa under false pretenses. In particular, Liu reached out to contacts at multiple U.S. universities in order to arrange for a university to invite the CAIEP-NY Hire to come to the United States as a J-1 Research Scholar. In truth and in fact, however, Liu intended that the CAIEP-NY Hire’s primary purpose in the United States would consist of engaging full-time in the talent-recruitment work of CAIEP-NY.
Liu, 57, of Fort Lee, New Jersey, is charged with one count of conspiracy to commit visa fraud, which carries a maximum sentence of five years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Assistant Attorney General Demers and U.S. Attorney Berman praised the outstanding investigative work of the FBI, and thanked the U.S. Department of State, Department of Homeland Security, Homeland Security Investigations, and the Counterintelligence and Export Control Section of the U.S. Department of Justice’s National Security Division for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Gillian Grossman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Chinese Government Employee Charged in Manhattan Federal Court with Participating in Conspiracy to Obtain U.S. Visas FraudulentlyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and John Brown, Assistant Director of the FBI’s Counterintelligence Division, announced the arrest of ZHONGSAN LIU, for his involvement in a conspiracy to fraudulently obtain U.S. visas for Chinese government employees. LIU was arrested today in Fort Lee, New Jersey, and presented this afternoon in Manhattan federal court before the U.S. Magistrate Judge Ona T. Wang.
U.S. Attorney Geoffrey S. Berman stated: “As alleged Zhongsan Liu conspired to obtain research scholar visas fraudulently for people whose actual purpose was not research but recruitment. Rather than helping to bring students to the U.S., Liu allegedly conspired to defraud this country’s visa system to advance his efforts to attract U.S. experts to China. Thanks to the FBI, this alleged abuse of the visa system has been halted.”
Assistant Attorney General John C. Demers said: “We welcome foreign students and researchers, including from China, but we do not welcome visa fraud – especially on behalf of a government. We will continue to confront Chinese government attempts to subvert American law to advance its own interests in diverting U.S. research and know-how to China.”
FBI Assistant Director William F. Sweeney Jr. said: “The allegation that an employee of a foreign government has worked to mask the true purpose of an individual’s presence in the United States isn’t news to the FBI. This alleged behavior should be another alarm bell that foreign governments are constantly working to exploit research work being conducted throughout the United States. Not everyone shares the honest goal of conducting open research to benefit society as a whole. This case is another example of the pervasive and organized effort, in this instance an allegedly flat-out illegal one, to fulfill a top priority of collecting information to advantage a foreign adversary. Putting a halt to Mr. Liu’s alleged actions are an important and significant step to highlighting these activities. The FBI New York, along with our intelligence community partners, will continue to disrupt the behavior when it is detected.”
According to the allegations in the Complaint unsealed in Manhattan federal court[1]:
From approximately 2017, up to and including September 2019, LIU participated in a conspiracy to fraudulently procure U.S. visas for employees of the government of the People’s Republic of China (the “PRC Government”). LIU operates the New York office of the China Association for International Exchange of Personnel (“CAIEP-NY”). CAIEP-NY is a PRC Government agency that, among other things, engages in talent-recruitment for the benefit of the PRC. In particular, CAIEP recruits U.S. scientists, academics, engineers, and other experts to work in China.
LIU worked with others, including other PRC Government employees in the United States, to fraudulently procure J-1 Research Scholar visas for a CAIEP-NY employee (“CC-1”) and a prospective CAIEP-NY employee (“the CAIEP-NY Hire”). The J-1 Research Scholar visa program permits foreign nationals to come to the United States for the primary purpose of conducting research at a corporate research facility, museum, library, university, or other research institution.
In or about April 2018, CC-1 applied for and received a J-1 visa to conduct research at a particular U.S. university (“University-1”) located outside New York. Although CC-1 represented to the U.S. Government that she was entering the United States for the primary purpose of conducting research at University-1, CC-1’s actual purpose in the United States consisted of performing full-time talent-recruitment work at CAIEP-NY. LIU helped CC-1 take measures to enhance her false appearance as a Research Scholar at University-1 by, among other things, directing CC-1 to report to University-1 upon her arrival in the United States; ensuring that CC-1 obtained a driver’s license in the state where University-1 is located; and instructing CC-1 to periodically visit University-1 while working full-time at CAIEP-NY.
In addition, LIU attempted to enable the CAIEP-NY Hire to obtain a J-1 Research Scholar visa under false pretenses. In particular, LIU reached out to contacts at multiple U.S. universities in order to arrange for a university to invite the CAIEP-NY Hire to come to the United States as a J-1 Research Scholar. In truth and in fact, however, LIU intended that the CAIEP-NY Hire’s primary purpose in the United States would consist of engaging full-time in the talent-recruitment work of CAIEP-NY.
* * *
LIU, 57, of Fort Lee, New Jersey, is charged with one count of conspiracy to commit visa fraud, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI, and thanked the U.S. Department of State, Department of Homeland Security - Homeland Security Investigations, and the Counterintelligence and Export Control Section of the U.S. Department of Justice’s National Security Division for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Gillian Grossman is in charge of the prosecution.
The charges contained in the Complaint 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 the descriptions of the Complaint constitute only allegations, and every fact described should be treated as an allegation.
Cape Coral Man Sentenced to 8 Years for Possession of Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Warren Alan Baxter (54, Cape Coral) to eight years in federal prison for possession of child pornography. The court also ordered Baxter to forfeit his computer, hard drive, and cellphone, which he had used to facilitate the offense.
Baxter had pleaded guilty on June 20, 2019.
According to court documents, on June 5, 2018, law enforcement received a report that Baxter had asked a 17-year-old boy to send him nude photos. On July 5, 2018, pursuant to that report and a subsequent investigation, officers went to Baxter’s home. During an interview with officers, Baxter admitted that he had images of underage girls on his phone, and he provided the officers with his computer, hard drive, and cellphone. A search of those items revealed more than 700 videos and more than 900 images of minors engaging in sexually explicit conduct. Baxter acknowledged that he knew there were images of young children engaged in sexually explicit conduct on his devices and that he had obtained all of the images over the internet.
This case was investigated by the Federal Bureau of Investigation’s Innocent Images Task Force, with assistance from the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Charles D. Schmitz and Yolande G. Viacava.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brazen theft crew stole jewelry and cash from temples around the countryRead the Press Release
ATLANTA – Valer Iazmin Varga, Robert-Auras Adam, and Ana-Loredana Adam, all Romanian nationals, have been arraigned on federal charges of conspiracy to transport, in interstate commerce, stolen goods with a value of at least $5,000 and transporting, in interstate commerce, gold jewelry with a value of at least $5,000, which the defendants stole from the Hindu Temple of Atlanta, in Riverdale, Georgia. Co-defendant Stela Patricia Varga was arrested on September 11, 2019 in Slidell, Louisiana on a federal arrest warrant related to the same charges.
“These defendants posed as tourists and allegedly stole gold and money from places of worship,” said U.S. Attorney Byung J. “BJay” Pak. “They exploited their victims’ custom of receiving visitors with open arms in their temples and religious centers, and also allegedly involved their minor children in their theft scheme.”
“It is deeply troubling and hard to fathom that criminals would exploit the tenets of one’s faith by taking advantage of their kindness,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Even though these suspects are alleged to have travelled from state to state to commit these crimes, they were not able to elude arrest, thanks to our partnerships with federal, state and local law enforcement agencies in six different states.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendants traveled to Hindu and Buddhist places of worship in at least six states, including Georgia, for the purpose of stealing gold jewelry or cash. Visiting the temples during operating hours, the defendants allegedly posed as tourists and asked representatives of the temples questions regarding the customs and practices associated with the temples. As one or more of the defendants questioned temple staff members, other defendants stole gold jewelry and cash from the temples, sometimes taking gold jewelry directly from statues within the sanctuaries in the form of various deities.
Although the defendants allegedly attempted to interfere with the temples' security cameras, the defendants were captured on camera within the sanctuaries; and in some cases, the defendants were captured on film in the act of stealing jewelry. When three of the defendants were arrested on local charges in connection with the thefts in early June 2019, they were in possession of over $50,000 in U.S. currency, despite the fact that the defendants have no record of employment in the U.S.
Valer Iazmin Varga, 28, Robert-Auras Adam, 31, and Ana-Loredana Adam, 30, all Romanian nationals, were arraigned on September 11, 2019, before U.S. Magistrate Judge Russell G. Vineyard. The defendants were indicted by a federal grand jury in the Northern District of Georgia on August 20, 2019.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI, Atlanta Division, Transnational Organized Crime Squad with assistance by the FBI’s New Orleans Gang Task Force, the Forsyth County Sheriff’s Office (Georgia), the Lilburn Police Department (Georgia), the Clayton County Police Department (Georgia), the Delaware County Sherriff’s Office (Ohio), the Bloomingdale Police Department (Illinois), the Lemont Police Department (Illinois), the Bridgeton Police Department (Missouri), and the Franklin Police Department (New Jersey).
Assistant U.S. Attorney Jessica C. Morris is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Braxton County woman admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brandi Dawn Singleton, of Burnsville, West Virginia, has admitted to her role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Singleton, age 41, pled guilty to one count of Distribution of Methamphetamine in Proximity to a Protected Location.” Singleton admitted to selling methamphetamine near Gilmer County High School in September 2018.
Singleton faces at least one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Belgrade man sentenced to 20 years in prison for child porn crimesRead the Press Release
MISSOULA—Belgrade resident John Michael Whitehead, who admitted child pornography crimes after sending an undercover agent images of children engaged in sexually explicit conduct, was sentenced today to 20 years in prison, followed by 20 years of supervised release and $3,000 restitution to one of the victims, U.S. Attorney Kurt Alme said.
Whitehead, 36, pleaded guilty in March to distribution of child porn and receipt of child porn.
Chief U.S. District Judge Dana L. Christensen presided.
“Child pornography crimes will not be tolerated in Montana and those who seek to harm children for sexual gratification will be prosecuted to the fullest extent of the law. Every person who distributes or receives child pornography re-injures the victims,” U.S. Attorney Alme said.
“I want to thank Assistant U.S. Attorney Cyndee Peterson, who prosecuted the case, along with the Internet Crimes Against Children Task Force, FBI, Homeland Security Investigations and Washington D.C. Internet Crimes Against Children Task Force. I also want to thank our Montana law enforcement partners, including the Gallatin County Sheriff’s Office, Bozeman Police Department, Belgrade Police Department, Lewis and Clark Sheriff’s Office, Helena Police Department and Montana Department of Child and Family Services,” U.S. Attorney Alme said.
"When crimes against children fall under the authority of the FBI, we will act swiftly to protect society's most vulnerable and investigate those who exploit them," said Paul Haertel, Special Agent in Charge of the FBI's Salt Lake City Field Office. “The FBI is appreciative of our law enforcement partners’ expeditious assistance and cooperation in ensuring the safety and welfare of Montana’s children.”
In court documents filed in the case, the prosecution said that in December 2018, an undercover agent with the FBI’s Task Force in Washington, D.C., was chatting online with Whitehead in a group known to exchange child porn. During the chat, Whitehead sent the agent an image of a child engaged in sexually explicit conduct. In January, Whitehead again sent the agent a video of a prepubescent child engaged in sexually explicit conduct with an adult male.
The investigation led to the execution of a search warrant of Whitehead’s residence on Jan. 9, 2019. Agents seized multiple items, including two smart phones. Whitehead admitted in an interview with agents that he had been using an app on his phone to trade child porn. Investigators found videos and images of child porn on the two phones.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Internet Crimes Against Children Task Force, FBI, Homeland Security Investigations and the Washington D.C. Internet Crimes Against Children Task Force.
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Baltimore Bail Bonds Business Owner Sentenced to 7 Years in Federal Prison for A Sex Trafficking Conspiracy Involving A Minor FemaleRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Charles Mario Brown, Sr., age 48, of Baltimore, to seven years in federal prison, followed by 15 years of supervised release, for conspiracy to commit sex trafficking. Brown admitted that he operated a prostitution business involving a 16-year-old female, and at least four adult females, who performed commercial sex acts in the Baltimore area.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI); and Harford County Sheriff Jeffrey R. Gahler.
U.S. Attorney Robert K. Hur stated, “We will continue to work with our law enforcement partners to bring human traffickers to justice. These violent criminals exploit our most vulnerable for profit and must be stopped.”
According to Brown’s plea agreement, Brown and his co-conspirator met a 16-year-old runaway (“Victim 1”) in November 2016, while she was walking in Baltimore. Brown and the co-conspirator directed Victim 1 to meet with sex customers who called or sent text messages in response to online prostitution advertisements featuring the victim, which were posted by the conspirators. The conspirators agreed to provide Victim 1 with food and a place to stay in exchange for money she earned through commercial sex acts, and bought her lingerie that she wore in photos taken for prostitution ads. Brown drove Victim 1 to outcalls, where Victim 1 engaged in commercial sex acts and collected payment. Brown and the co-conspirator directed Victim 1 to give them at least some of the proceeds from her commercial sex acts, and she did so.
On December 9, 2016, an undercover Harford County Sheriff’s Office detective contacted a phone number found in the cell phone of a deceased male sex customer A.G. (A.G. suffered a fatal heroin overdose in a hotel room in Edgewood, Maryland in the presence of one of Brown’s adult female sex workers.) The detective contacted the phone number to arrange an overnight commercial sex date at a hotel in Edgewood and to request heroin. At the co-conspirator’s request, Victim 1 communicated with the detective to make arrangements for the commercial sex date, which included taking $1,000 for the purchase of heroin after arriving at the hotel.
As detailed in his plea agreement, Brown and the co-conspirator transported Victim 1 and an adult female to the hotel. Victim 1 and the woman went into the hotel room identified by the detective. Investigators recognized Victim 1 from prostitution ads posted online, and Victim 1 identified herself by the name listed in those ads. Brown and his co-conspirator, who were waiting in the SUV outside the hotel room, were arrested and their cell phones were seized. Forensic examination of the cell phones revealed numerous communications in furtherance of the prostitution business.
This case was investigated by law enforcement agencies who are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members of the Task Force include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html. Suspected instances of human trafficking can be reported to HSI’s tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
In addition, the case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
United States Attorney Robert K. Hur commended Homeland Security Investigations and the Harford County Sheriff’s Office for their work in the Brown case. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the case.
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Allentown Man Sentenced to 31 Months’ Imprisonment for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Deovonie Birch, age 23, of Allentown, was sentenced on September 13, 2019 to serve 31 months’ imprisonment by Senior U.S. District Court Judge A. Richard Caputo, for his role in a conspiracy to distribute and possess with intent to distribute heroin.
According to United States Attorney David J. Freed, the defendant previously pleaded guilty to participating in the conspiracy during 2015 and 2016. Deovonie Birch admitted that he acted as a sub-distributor of heroin for his father, Robert Birch, who headed-up the conspiracy. The conspiracy obtained heroin from suppliers in New York and Allentown, and distributed it to customers in Carbon County, Pennsylvania, and elsewhere. Deovonie Birch was responsible for distributing between 60 and 80 grams of heroin, which is approximately equivalent to between 2300 and 3300 retail bags of heroin.
Judge Caputo also ordered Birch to serve three years on supervised release following his prison sentence.
Birch was indicted by a grand jury in September 2016, as a result of an investigation by agents of the Drug Enforcement Administration, members of the Pennsylvania State Police, and Allentown Police. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Allentown Man Guilty of Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Birch, age 46, of Allentown, pleaded guilty on September 13, 2019 to conspiracy to distribute more than 100 grams of heroin before Senior U.S. District Court Judge A. Richard Caputo.
According to United States Attorney David J. Freed, Birch admitted to regularly obtaining heroin from suppliers in New York and Allentown and distributing the drug in Carbon County, Pennsylvania, and elsewhere. Birch admitted to being responsible for distributing between 100 grams and 400 grams of heroin, which is approximately equivalent to between 4000 and 16,000 retail bags of heroin.
Judge Caputo scheduled sentencing for September 25, 2019.
Birch was indicted by a grand jury in September 2016, as a result of an investigation by agents of the Drug Enforcement Administration, members of the Pennsylvania State Police, and Allentown Police. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law is 40 years’ imprisonment. The charge also carries a mandatory minimum penalty of five years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Akron Woman Sentenced to Prison for Trafficking Heroin, Carfentanil and MethamphetamineRead the Press Release
CHARLESTON, W.Va. – An Akron, Ohio, woman was sentenced to federal prison for a drug trafficking crime, announced United States Attorney Mike Stuart. Azriel Irene Westfall, 21, was sentenced to 18 months in prison for possession with intent to distribute heroin and methamphetamine. Westfall must also serve a three year term of supervised release after her prison term.
“Another Akron drug dealer bringing powerful and deadly drugs – 30 grams of a heroin and carfentanil mixture, heroin and methamphetamine - into our area,” said United States Attorney Mike Stuart. “We are working closely with our partners in Akron and the Northern District of Ohio. Our partnerships are growing stronger and our ability to stop drug dealers in the act is improving. We don’t want drug dealers here. If they come to my district and are arrested, they can plan on no return trips anytime soon. Westfall won’t being going home to Akron until she serves her time in federal prison.”
On February 28, 2018, police investigators executed a search warrant on a drug house on Mountain Road in Charleston, where Westfall was staying with several other people. The investigators searched Westfall’s purse and found close to 30 grams of a mixture of heroin and carfentanil (a powerful fentanyl analogue); almost 10 grams of heroin; and around 3 grams of ice methamphetamine. Westfall was also carrying over $6,000 in drug proceeds in her purse.
The Metropolitan Drug Enforcement Network Team (MDENT) and the Drug Enforcement Administration conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Drew O. Inman handled the prosecution.
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"Serial Fraudster" Sentenced to 10 Years in Prison for Bank FraudRead the Press Release
ROCK ISLAND, Ill. – Ramsey Denwon Hampton, 49, of Chicago, has been ordered to serve 10 years in federal prison for defrauding IH Mississippi Valley Credit Union. On April 5, 2019, Hampton pleaded guilty to making false statements regarding his true identity to open an account at IH Mississippi Valley Credit Union, wherein he deposited forged checks and withdrew funds. When Hampton was arrested, he possessed the identities of more than 800 individuals.
At sentencing, on Sept. 13, 2019, the government requested a sentence above the range prescribed by the U.S. Sentencing Guidelines. Chief U.S. District Judge Sara Darrow agreed noting that Hampton is “a serial liar, a serial thief, and a serial fraudster,” and that Hampton’s criminal record and the manner in which he committed the offenses necessitated a sentence significantly higher than the Guidelines range. Judge Darrow found that Hampton committed a serious crime that required thought, intellect, scheming, and sophisticated methods to prey on his victims. In addition, Chief Judge Darrow noted that Hampton’s criminal record includes convictions for bank fraud, forgery, theft of mail, interstate transportation of stolen checks, check deception, deceptive practices, possession of fictitious driver’s licenses, identity theft, and aggravated identity theft.
The U.S. Secret Service and the Silvis Police Department conducted the criminal investigation. Assistant U.S. Attorney Alyssa Raya prosecuted the case on behalf of the government.