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13 September 2019
Georgia Man Sentenced to Almost 30 Years in Federal Prison for Carjacking and RobberiesRead the Press Release
Jackson, Miss. – Jalen Sean Benton, 19, of Georgia, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 358 months in federal prison, followed by five years of supervised release, for carjacking, two business robberies, and using a firearm to commit each offense, announced U.S. Attorney Mike Hurst, FBI Jackson Division Special Agent in Charge Michelle A. Sutphin, and Warren County Sheriff Martin Pace. Benton was also ordered to pay a $1,500 fine.
On March 25, 2019, Benton robbed the Jimmy Johns Restaurant in Meridian, the McDonalds in Brandon, and carjacked a vehicle in Vicksburg. Benton used pistols in committing each offense. The Warren County Sheriff’s Office arrested Benton in Vicksburg after shooting at law enforcement and subsequently committing the carjacking.
On April 16, 2019, Benton was charged in a federal criminal indictment with carjacking, two business robberies, and using a firearm to commit each offense. He pled guilty before Judge Jordan on June 12, 2019.
"Because of the courage and bravery of our law enforcement, this criminal’s rampage of terror is over. He will now spend the next three decades of his life repaying a debt to society for the harm he has caused others. I want to sincerely thank our law enforcement for literally putting themselves in harm’s way in order to stop this violent criminal from harming anyone else," said U.S. Attorney Hurst.
"The crime spree that this individual went on put the innocent lives of citizens across Central Mississippi in danger," said FBI Special Agent in Charge Sutphin. "Without the assistance and quick actions of Sheriff Pace and his deputies, this individual could have committed more violent crime. Cooperation with all levels of law enforcement is essential in cases like these to bring justice to the affected victims and communities."
"The excellent cooperation between the FBI, the U.S. Attorney's Office and the Warren County Sheriff's Office has made our community a safer place and made certain this violent offender will serve a very long time in federal prison," said Warren County Sheriff Martin Pace.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions 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.
Georgetown Woman Pleads Guilty to Bank FraudRead the Press Release
BOSTON – A Georgetown woman pleaded guilty yesterday in federal court in Boston in connection with embezzling over $419,000 from her employer.
Michelle Higson, 44, pleaded guilty to four counts of bank fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Dec. 12, 2019. Higson was indicted in November 2018.
Higson began working as a part-time bookkeeper for a Wilmington company in 2013. From 2015 until her termination in 2018, Higson stole a series of the company’s checks, made them payable to herself or to her husband, and forged her employer’s signatures. Higson cashed and deposited the checks for her own personal use. To conceal her criminal conduct and avoid detection by the company, Higson falsified entries in the company’s books to make it appear as if the stolen checks had been issued to satisfy payment to actual vendors. In addition, on several occasions, Higson inflated her pay rate and falsified the number of hours she worked, thereby collecting more money than what she actually earned. In total, Higson embezzled over $419,000.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, and a fine of up to $1 million. 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 Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Anne Paruti of Lelling’s Major Crimes Unit is prosecuting the case.
Georgetown Man Pleads Guilty in Federal Court to Clean Water Act ViolationRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Maurice Avent, age 48, of Georgetown, pleaded guilty in federal court to a misdemeanor violation of the Clean Water Act. United States District Court Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will sentence Avent after receiving and reviewing a pre-sentence report prepared by the United States Probation Office.
Evidence presented at the hearing established that at the end of August 2018, the South Carolina Department of Health and Environmental Control (DHEC) received a complaint about raw sewage in the marsh behind a hotel in Georgetown. A duty officer went to the hotel and observed a concrete pump station, also known as a wet well, with a black hose coming out of the top. The hose was attached to a sump pump. Raw sewage was inside the wet well. The hose ran through the back parking lot, over a wooden fence, and into the marsh. The sump pump was running at the time and was discharging sewage into the marsh.
Maintenance man Maurice Avent was contacted and said that the two pumps that normally emptied the well had stopped working. Those pumps routed sewage from the wet well into the city sewage system. When a fix was not immediately available, Avent improvised. He bought the sump pump and directed the hose into the marsh. The hose had been in place for about a week, but the sump pump only activated when needed.
City and state government officials suggested to Avent that he put the hose into the city sewage opening, which is where the original pumps – when working – were routed, and he followed that suggestion.
The maximum penalty faced by Avent is imprisonment for one year, with a potential fine between $2,500 and $25,000 for each day of the violation.
The United States Environmental Protection Agency, the South Carolina Department of Health and Environmental Control, and the City of Georgetown investigated the case. Assistant United States Attorneys Winston David Holliday, Jr., of the Columbia office, and Emily Evans Limehouse, of Charleston, are prosecuting the case.
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Former NYPD Officer Pleads Guilty to Tax FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced that ALFRED FERATOVIC pled guilty today in Manhattan federal court to fraudulently under-reporting income in his United States individual income tax returns between 2012 and 2017, while employed as an officer for the New York City Police Department (“NYPD”). FERATOVIC, who is no longer with the NYPD, was arrested and charged in connection with this offense in June 2019, and he pled guilty today to aiding the preparation of fraudulent tax returns before United States District Judge Ronnie Abrams.
Manhattan U.S. Attorney Berman said: “Alfred Feratovic admitted today that while enforcing the laws as an NYPD officer, he was violating the law himself by falsifying his tax records and failing to report hundreds of thousands of dollars in income. Our Office is committed to demonstrating that no one is above the law, and that tax fraud is a serious offense that we will prosecute to the fullest extent of the law.”
Special Agent in Charge Jonathan D. Larsen said: "As a New York City police officer, Mr. Feratovic betrayed the public trust by not paying his fair share in taxes. Nobody is above the law and IRS-CI will continue to investigate individuals who underreport rental income."
According to the allegations set forth in the Information filed against FERATOVIC in Manhattan federal court, and statements made in court proceedings, including FERATOVIC’s guilty plea hearing:
Between 2012 and 2017, FERATOVIC was employed as a police officer, and received income from his employment with the NYPD. FERATOVIC also owned and operated residential rental properties from which he derived significant personal income. He reported rental income from those properties on his U.S. federal income tax returns. In particular, FERATOVIC owned and operated more than 10 rental properties in New York and Connecticut. Rental income he received from those properties was reported to the IRS on certain schedules and filings in FERATOVIC’s tax returns, which he participated in preparing and filing with the IRS.
For each of the tax years 2012 through 2017, FERATOVIC falsely reported to his tax return preparer, and caused to be reported to the IRS, rental income from his properties in amounts significantly below the true rental income he received. He did so in generally increasing amounts during the relevant years, with the largest under-reporting occurring in 2017, during which he failed to report hundreds of thousands of dollars in rental income.
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FERATOVIC, 39, of Staten Island, New York, pled guilty to one count of aiding the preparation of fraudulent federal tax returns, which carries a maximum sentence of three years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the sentence of the defendant will be determined by the court.
Mr. Berman praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and the Internal Revenue Service, and thanked the New York City Police Department for their valuable assistance in the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Alex Rossmiller is in charge of the prosecution.
Former Medical Practice Employee Pleads Guilty to Obtaining Controlled Substances by FraudRead 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 Shannon Lambert, 33, of Canandaigua, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to obtaining controlled substances by fraud and identify theft. The charges carry a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that between 2011 and February 2019, the defendant was employed at Cornerstone Eye Associates in Rochester. Through her position, Lambert had access to Cornerstone’s internal computer databases, including an electronic prescription program which doctors at Cornerstone used to write and submit prescriptions to pharmacies on behalf of their patients.
Between approximately January 2018 and February 2019, the defendant accessed Cornerstone’s electronic prescription program and issued 73 fraudulent prescriptions in her name or the names of her family members. Lambert then had those prescriptions filled, and she picked them up from local pharmacies. The defendant used the name and an authentication device of an ophthalmologist who worked at Cornerstone, without their authorization, to issue the prescriptions. The 73 prescriptions totaled approximately 5,048 dosage units of Schedule II controlled substances, including hydrocodone and oxycodone.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for December 16, 2019, at 2:30 p.m. before Judge Wolford.
Former Holyoke Teacher Arrested for Possession of Child PornographyRead the Press Release
BOSTON – A former Holyoke kindergarten teacher was arrested last night and charged with possession of child pornography. Yesterday, the defendant resigned from his position as a kindergarten teacher for the Holyoke Public Schools where he was employed.
Gregory Lisby, 40, of Worcester, was arrested last night in Northboro and charged today with one count of possession of child pornography. Lisby will appear in federal court in Boston at 2:15 p.m. today.
According to the charging documents, investigators received a tip that an image depicting child pornography had been uploaded to a Microsoft OneDrive account that was determined to belong to Lisby. Pursuant to a search warrant, investigators reviewed the OneDrive and identified approximately 180 images and 15 videos of child pornography. On Sept. 11, 2019, a search was executed at Lisby’s home where a preliminary on-scene review of Lisby’s OneDrive account, on both his iPad and cellphone, was conducted. Lisby was subsequently arrested last night and charged with possession of child pornography.
Members of the public who have questions, concerns or information regarding this case should call the U.S. Attorney’s Office at 617-748-3274.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. 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 Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Worcester, Holyoke, Northboro and Southboro Police Departments, along with the Massachusetts State Police provided assistance with the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Hempstead School District Official Pleads Guilty to Credit Card FraudRead the Press Release
Timothy Gregg, the former Provisional Supervisor of Facilities for the Hempstead School District, pleaded guilty today at the federal courthouse in Central Islip to access device fraud in connection with his misuse of a school district credit card. The plea was entered before United States District Judge Joanna Seybert. When sentenced, Gregg faces up to 15 years in prison, as well as forfeiture and a fine of up to $250,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Thomas P. DiNapoli, Comptroller, Office of the New York State Comptroller, and Madeline Singas, District Attorney, Nassau County District Attorney’s Office, announced the guilty plea.
As described in court filings and the plea proceeding, Gregg was the Chief of Facilities at the Hempstead School District from 2016 to 2018. In that capacity, Gregg was authorized to use a school district credit card for purchases for the school district. Instead, Gregg allowed a local contractor to use the credit card for his own personal purchases at Home Depot, in exchange for kickbacks to Gregg of cash and materials exceeding $50,000 in value.
“Today’s guilty plea of former Hempstead School District official Timothy Gregg drives home an important lesson: corrupt officials who abuse their position to enrich themselves will be prosecuted to the fullest extent of the law,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation to the United States Department of Education Office of Inspector General for their assistance during the investigation.
“Mr. Gregg abused the public's trust by using taxpayer dollars to fund his personal home improvement projects. Such corruption must not be tolerated and my office assisted in exposing this abuse,” stated Comptroller DiNapoli. “Thanks to our partnership with U.S. Attorney for the Eastern District of New York Donoghue, Nassau County District Attorney Singas, Assistant Director-in-Charge Sweeney, Jr., of the FBI's New York Field Office and the U.S. Department of Education Office of Inspector General, Mr. Gregg will now have to account for his crimes.”
"The defendant used a school board-issued credit card for home improvement projects and allowed a contractor to freely utilize that credit card for kickbacks,” stated Nassau County District Attorney Singas. “This plea sends a strong message that corrupt local officials will be held accountable for stealing taxpayer money.”
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor and Special Assistant United States Attorney Joseb Gim are in charge of the prosecution.
The Defendant:
TIMOTHY GREGG
Age: 49
Uniondale, New YorkE.D.N.Y. Docket No. 19-368 (JS)
Former Executive Director of Military Charity Sentenced to 12 Months for Fraud and Tax EvasionRead the Press Release
WASHINGTON – Patricia Driscoll, the former executive director of the Armed Forces Foundation, was sentenced yesterday to 12 months and a day in prison for her role in a scheme in which she stole from a non-profit charity, defrauded donors, and lied to the Internal Revenue Service and the public about her salary and benefits.
U.S. Attorney Jessie K. Liu, Timothy Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Kelly R. Jackson, Special Agent in Charge of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office made the announcement today.
Driscoll, 41, of Ellicott City, Maryland, was found guilty of two counts of wire fraud and two counts of tax evasion, all federal offenses, and one count of first-degree fraud, a District of Columbia offense, in November 2018. The verdict followed a trial in the U.S. District Court for the District of Columbia. In addition to the period of incarceration, the Honorable Richard J. Leon ordered Driscoll to serve 36 months supervised release, a period of home confinement, 360 hours of community service, and to pay $154,289 in restitution and $81,779 in a money judgment forfeiture.
According to the government’s evidence, until July 2015, Driscoll was the executive director of the Armed Forces Foundation, a tax-exempt non-profit charity based in Washington, D.C. The foundation’s stated mission was to protect and promote the physical, mental, and emotional wellness of military service members, veterans, and their families.
“The mission of the Armed Forces Foundation was to protect and promote the physical, mental, and emotional wellness of military service members, veterans, and their families,” said U.S. Attorney Jessie K. Liu. “Patricia Driscoll lied and decided to use the foundation for her own personal gain and schemes such as these undermine the work of non-profit organizations.”
While Driscoll was the executive director, in its promotions and requests for money, the Armed Forces Foundation claimed that 95% of all donations went directly to military members and their families through the charity’s programs. As a “highly compensated individual,” Driscoll’s salary and benefits were required to be disclosed on annual reports (called “Form 990”) to be filed each year with the IRS. These publicly available documents are often used by charity watch groups and donors to judge worthiness of the charity and by the IRS to determine whether the organization was operating with IRS law and regulations.
According to the evidence, Driscoll caused false reports to be filed on the Form 990s in a number of ways. For example, she failed to include the fact that she received commissions from fundraising, the amounts of commissions that she received from fundraising, and the other benefits that she received. Driscoll also falsely categorized and caused others to falsely categorize expenses in the Armed Forces Foundation’s books and records as being for the benefit of the veterans, troops, and their families, when, in fact, they were for her own private benefit. Driscoll also concealed from the foundation’s accountants the money she took from the charity, such as rent that was paid for the use of office space in a building that she co-owned.
Additionally, Driscoll falsely reported and caused others to falsely report the amount of donations received by the foundation on Forms 990, by inflating the amounts of donations and incorrectly listing the types of donations. According to the evidence, she sent false and fraudulent Forms 990 to members of the foundation’s Board of Directors and to the IRS, and caused to be published Forms 990, containing false and fraudulent information.
The jury found that Driscoll took the foundation’s money for her own personal use and to pay her for-profit business expenses. The tax evasion charges are for tax years 2012 and 2013.
In announcing the verdicts, U.S. Attorney Liu, Special Agent in Charge Dunham, and Special Agent in Charge Jackson commended the work performed by Special Agents from the FBI and Revenue Agents from the IRS. They also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Yvonne Bryant; Victim/Witness Services Coordinators Tonya Jones and Katina Adams-Washington; Supervisory Paralegal Specialist Tasha Harris; Paralegal Specialists Diane Brashears and Amanda Rohde; Forensic Accountant Bryan Snitselaar; Assistant U.S. Attorney Diane Lucas; former Paralegal Specialists Christopher Toms, Corinne Kleinman, and Kaitlyn Kruger; Litigation Technology Supervisor Leif Hickling; former Litigation Technology Supervisor Josh Ellen, and David Goodhand, Special Counsel to the U.S. Attorney, who provided midtrial legal research and writing.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Virginia Cheatham, Kathryn Rakoczy, and Derrick Williams, who investigated and prosecuted the case.
Former Dentist Pleads Guilty to Health Care FraudRead the Press Release
WASHINGTON – Bilal Ahmed, 47, of Potomac, Maryland, pled guilty on September 6, 2019, to a federal charge of health care fraud stemming from a scheme in which he and others caused the District of Columbia’s Medicaid program to be defrauded out of more than $5 million.
The announcement was made today by U.S. Attorney Jessie K. Liu, Timothy Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General, for the region that includes Washington, D.C., and Daniel W. Lucas, District of Columbia Inspector General.
Ahmed was indicted in January 2019, along with his former office manager, on one count of conspiracy to commit health care fraud, one count of health care fraud, and five counts of wire fraud. Ahmed pled guilty in the U.S. District Court for the District of Columbia to Count II of the Indictment and the remaining charges will be dismissed at sentencing. The charge carries a statutory maximum sentence of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Ahmed faces a likely range of 57 to 71 months in prison and a fine of up to $200,000. The plea agreement calls for Ahmed to pay $5,421,227 in restitution and $3,978,879.93 in a forfeiture money judgment. While the government has agreed to join in Ahmed’s request for a sentence that runs concurrently with the 16-year sentence that he currently is serving for sexually assaulting patients, that request is not binding on the Court. The Honorable Judge Colleen Kollar-Kotelly scheduled sentencing for January 17, 2020.
According to the statement of offense submitted to the Court, Ahmed was a practicing dentist who owned and operated Universal Smiles, a dental practice, in Northwest, Washington, D.C. When Ahmed’s dental license was suspended by the D.C. Dentistry Board, and subsequently was surrendered by him, Ahmed opened and operated Dental Equipment and Services (“DES”). DES was a Maryland company that employed dentists on contract to work at Universal Smiles’ former business location in the District of Columbia. Through Universal Smiles and DES, Ahmed and his office manager, engaged in a scheme to enrich themselves by defrauding D.C. Medicaid, a health care benefits program jointly funded by the federal government and the District of Columbia to provide health care services to residents who meet the income qualifying requirements. As part of the scheme, Ahmed with the assistance of the office manager, applied to be a Medicaid provider. Once approved to bill Medicaid, Ahmed and the office manager sought to increase the dental practice’s profits by recruiting Medicaid recipients as patients. Ahmed and the office manager then billed D.C. Medicaid for thousands of provisional crowns that were not provided to the Medicaid patients and shared the fraud proceeds. From August 9, 2012, through February 26, 2014, D.C. Medicaid paid Universal Smiles approximately $12.4 million; and it paid DES approximately $1.2 million from November 17, 2014, though February 1, 2016. Of the more than $13 million that D.C. Medicaid paid to Universal Smiles and DES, approximately $5.4 million was for provisional crowns. Of the $5.4 million that D.C. Medicaid paid for provisional crowns, Ahmed obtained approximately $4 million from the fraudulent scheme and the office manager obtained approximately $1.4 million.
In announcing the plea, U.S. Attorney Liu, Special Agent in Charge Dunham, and Special Agent in Charge Dixon commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services Office of Inspector General, and the District of Columbia’s Office of the Inspector General. They also expressed appreciation for the work of Paralegal Specialists Aisha Keys and Brittany Phillips, Forensic Financial Analyst Bryan Snitselaar, and the DC OIG MFCU investigations team. Finally, they commended the work of Assistant U.S. Attorney Denise A. Simmonds, and former Assistant U.S. Attorneys Michelle Bradford and Lionel Andre, who prosecuted the case.
Former Alabama Resident Pleads Guilty to Concealing Terrorism FinancingRead the Press Release
BIRMINGHAM – A criminal information was filed on Sept. 11, 2019, against Alaa Mohd Abusaad, charging her with concealment of terrorism financing, in violation of Title 18, United States Code, Sections 2339C and 2. Abusaad pleaded guilty to the charge today. Assistant Attorney General for National Security John C. Demers, United States Attorney Jay E. Town of the Northern District of Alabama, and FBI Special Agent in Charge Johnnie Sharp Jr. of the Birmingham Division made the announcement today.
As set forth in the previously filed complaint, Abusaad instructed an FBI undercover employee (UCE) about how to send money to the mujahedeen—fighters engaged in jihad. Abusaad told the UCE that money “is always needed. You can’t have a war without weapons. You can’t prepare a soldier without equipment.” Abusaad also advised the UCE on how to send money in a manner that would avoid detection by law enforcement, including by using fake names and addresses when conducting electronic money transfers. Subsequently, Abusaad introduced the UCE to a financial facilitator who could route the UCE’s money to “brothers that work with aq” (meaning al Qaeda).
The maximum penalty for concealment of terrorism financing is ten years in prison and a $250,000 fine, and up to a life term of supervised release.
Investigation of the case was conducted by the FBI, including FBI offices in Birmingham, Alabama and Cleveland and Toledo, Ohio. The prosecution is being handled by Assistant United States Attorneys Henry Cornelius and Manu Balachandran and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.
Former Alabama Resident Pleads Guilty to Concealing Terrorism FinancingRead the Press Release
A criminal information was filed on Sept. 11, 2019, against Alaa Mohd Abusaad, charging her with concealment of terrorism financing, in violation of Title 18, United States Code, Sections 2339C and 2. Abusaad pleaded guilty to the charge today. Assistant Attorney General for National Security John C. Demers, United States Attorney Jay E. Town of the Northern District of Alabama, and FBI Special Agent in Charge Johnnie Sharp Jr. of the Birmingham Division made the announcement today.
As set forth in the previously filed complaint, Abusaad instructed an FBI undercover employee (UCE) about how to send money to the mujahedeen—fighters engaged in jihad. Abusaad told the UCE that money “is always needed. You can’t have a war without weapons. You can’t prepare a soldier without equipment.” Abusaad also advised the UCE on how to send money in a manner that would avoid detection by law enforcement, including by using fake names and addresses when conducting electronic money transfers. Subsequently, Abusaad introduced the UCE to a financial facilitator who could route the UCE’s money to “brothers that work with aq” (meaning al Qaeda).
The maximum penalty for concealment of terrorism financing is 10 years in prison and a $250,000 fine, and up to a life term of supervised release.
Investigation of the case was conducted by the FBI, including FBI offices in Birmingham, Alabama, and Cleveland and Toledo, Ohio. The prosecution is being handled by Assistant United States Attorneys Henry Cornelius and Manu Balachandran and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.
Flint Man Sentenced to 135 Months in Federal Prison for Facebook RobberyRead the Press Release
Rashaaud K. Garrett, 21, of Flint was sentenced on September 12, 2019 to 135 months (11¼ years) in federal prison following his conviction for interference with commerce by robbery and discharging a firearm during a crime of violence, U.S. Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by James Deir, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Detroit Field Division.
U.S. District Court Judge Matthew F. Leitman imposed sentence on Garrett, a convicted felon, following his guilty pleas to interference with commerce by robbery and discharging a firearm during a crime of violence. Leitman also sentenced Garrett to three years of federal supervised release following his term of incarceration.
According to court documents, in the days leading up to October 7, 2018, Garrett negotiated the sale of his car to the victim using the Facebook Marketplace internet application. On October 7, Garrett picked the victim up in the car and travelled to Pemberton Drive in Flint so Garrett could remove his personal belongings from the car before the sale was finalized. After parking the car, Garrett approached the victim who was seated in the back seat. Garrett brandished his firearm and demanded the victims cash, marijuana, and property. A brief scuffle ensued before the victim was able to escape. The victim fled the scene on foot, leaving behind his cell phone and a quantity of marijuana. As the victim ran from the scene, Garrett discharged his firearm twice. Garrett was arrested several days later following another incident where he discharged his firearm.
When the public and law enforcement work together, violent criminals are held responsible for their actions,” said Special Agent in Charge James Deir. “Rashaaud Garrett’s sentence should serve as a warning. ATF will use every available resource to protect the public from those preying on innocent citizens.”
“Guns in the hands of violent convicted felons is a recipe for disaster. Our office will continue to work with our federal, state, and local law enforcement partners to target violent criminals who use guns to achieve their selfish ends,” said Schneider. Schneider advised the public to be cautious when buying and selling items to strangers they meet online noting that many local police departments allow these transactions to be conducted in their parking lots.
This investigation was conducted by the ATF’s Flint Field Office, the Michigan State Police, and Flint Police Department. The case was prosecuted by Assistant United States Attorney Anthony P. Vance.
First Parent in College Admissions Case Sentenced to PrisonRead the Press Release
BOSTON – Felicity Huffman was sentenced today to 14 days in federal prison for her involvement in the college admissions case. She must report to the Bureau of Prison on Oct. 25, 2019.
Huffman, 56, was sentenced by U.S. District Judge Indira Talwani to 14 days in prison, one year of supervised release and ordered to pay a fine of $30,000. The government had recommended a sentence of one month in prison, one year of supervised release and a fine of $20,000. In May 2019, Huffman pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
Beginning in at least 2017, Huffman conspired with Rick Singer to have her daughter’s college entrance exam corrected, thereby fraudulently inflating the score. During an August 2017 meeting with Rick Singer at her home, Huffman and Singer discussed the scheme and the cost. Over the next year and a half, Huffman took multiple steps to facilitate the scheme, including securing extended time for her daughter to take the SAT and arranging for her daughter to take the exam at a test center in West Hollywood that Singer “controlled.” Huffman also agreed to lie to her daughter’s high school guidance counselor by falsely telling the counselor that her daughter would take the test elsewhere over a weekend so that she would not miss any school. Thereafter, Huffman paid for the scheme by making a purported contribution of $15,000 to Singer’s sham charity, Key Worldwide Foundation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O'Connell, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
Federal Charges Filed Against Greenpeace ProtestersRead the Press Release
HOUSTON – A total of 22 people from 13 states plus the District of Columbia will soon have to appear before a federal judge to answer charges following their alleged protest at the Fred Hartman Bridge in Houston, announced U.S. Attorney Ryan K. Patrick.
The criminal information, filed today, charges each with one count of aiding and abetting obstruction of navigable waters. They are currently in state custody on related charges but are expected to make their initial appearances before U.S. Magistrate Judge Dena Palermo at 12:00 p.m. Saturday, Sept. 14.
“I commend the Harris County Sheriff’s Office (HCSO) for their professionalism,” said Patrick. “This was a unique situation that required hours of preparation and execution to bring to a close. Rather than peacefully protesting, these defendants are charged with a crime that put lives at risk.”
The charges allege each aided and abetted each other and others known and unknown to unlawfully obstruct the navigable capacity of the waters of the United States. Specifically, the information alleges they obstructed the waterway by rappelling off and suspending themselves from the Fred Hartman Bridge over the San Jacinto River. Their actions caused a disruption and affected vessel traffic within the Houston Ship Channel - to and from the Port of Houston, according to the allegations.
Those charged in federal court include California residents Zeph Fishlyn, 52, Tamura R. Seiji, 29, and Richard A. Sisney, 32, all of Oakland, and Cole Asher Taylor-Martin, 35, of Fullerton; Missouri residents Jayden Allen, 20, of Warrensburg, and Dakota P. Schee, 25, of Kansas City; Jonathan Butler, 29, and Tracye Redd, 28, both of Washington, DC; Washington State residents Ryan Harris, 41, of Olympia, and Piper Werle, 29, of Port Orchard; New York women Brianna Gibson, 28, of Brooklyn, and Kim Irene, 26, of Jerico; Colorado residents Julie A. McElvain, 36, of Steamboat Springs, and Cheloee Price, 23, of Denver; as well as Christan Bufforu, 32, of Ellerwood, Georgia; Sydney Clifford, 21, of Portland, Oregon; Heather Doyle, 35, of Albequrque, New Mexico; Michael Herbert, 36, Hyattsville, Maryland; Tyler N. McFarland, 27, of Dover, New Hampshire; Sarah Newman, 42, of Lexington, Kentucky; Heidi Nybroten, 26, of Minneapolis, Minnesota; and Shevone Torres, 39, of Pennsauken, New Jersey.
If convicted of the misdemeanor charges, each faces up to a year in federal prison and a possible $2,500 fine.
HCSO led the investigation and arrests with the participation and assistance of Harris County Precinct 8 Constables’ Office, U.S. Coast Guard, Houston Police Department, FBI, Texas Department of Transportation, Federal Aviation Administration and fire departments in Houston and Baytown. Assistant U.S. Attorney Mark McIntyre is prosecuting the case.
An information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Drug trafficker from central Louisiana sentenced to 30 years in prisonRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that George Earl White Jr., 35, of Alexandria, was sentenced on Tuesday to 360 months in prison and five years of supervised release by U.S. District Judge Dee D. Drell for his role in distributing illegal narcotics in Rapides Parish.
A federal jury found White guilty of one count of conspiracy to possess with intent to distribute methamphetamine, heroin and cocaine after a three-day trial that ended May 30, 2019. Testimony presented during his trial showed that White conspired with Derrick Anthony Felton, 40, of Alexandria, Reginald Felton Jr., 27, of Colfax, Louisiana, and Darian Dewayne Napoleon, 35, of Colfax, Louisiana, to sell methamphetamine, heroin and cocaine in the central Louisiana area. Law enforcement agents found that Derrick Felton would, under White’s direction, travel to California to obtain large quantities of methamphetamine, which was then shipped to Louisiana. Once the shipments arrived in central Louisiana, White would distribute the narcotics to other members of the conspiracy who would then sell the drugs to lower-level distributors or users.
During the course of the investigation, Louisiana State Police seized approximately 33 kilograms of methamphetamine, 1 kilogram of heroin, 1 kilogram of powdered cocaine and 4 pints of promethazine cough syrup.
White’s co-conspirators all pleaded guilty to the conspiracy. Darian Napoleon pleaded guilty on February 25, 2019, and received 120 months. Reginald Felton pleaded guilty on February 26, 2019, and received 220 months. Derrick Felton pleaded guilty on March 8, 2019, and received 262 months. Upon completion of their prison sentence, the defendants will also face five years of supervised release.
The FBI Safe Streets Task Force and Louisiana State Police investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and Brandon B. Brown prosecuted the case.
District Man Sentenced to 20 Years for Sexually Abusing 13-year-old ChildRead the Press Release
WASHINGTON – A 39-year-old man, of Washington, D.C., was sentenced today to 20 years in prison following a jury trial for sexually abusing his 13-year-old stepdaughter, announced U.S. Attorney Jessie K. Liu.
The man, who is not identified here to protect the privacy of the victim, was found guilty on May 21, 2019, following a jury trial in the Superior Court of the District of Columbia. He was sentenced to 20 years in prison and a lifetime term of supervised release by the Honorable Ronna Beck. The defendant was sentenced on four counts related to the sexual abuse of his stepdaughter including first-degree sexual abuse with aggravating circumstances. Following his prison term, the man will be required to register for life as a sex offender.
According to the government’s evidence, one night in the early summer months of 2017, the victim was on a futon with her stepfather’s nephew in her family home. The defendant, angry to find the victim with his nephew, pulled his nephew into the bathroom and scolded him. The defendant then walked toward the victim where she lay hiding under the covers on the futon. The defendant forcefully pinned the victim down while he groped her breasts and penetrated her vagina with his finger. The victim disclosed the sexual abuse to family members several months later.
In sentencing the defendant, the court made remarks on the familial relationship between the defendant and his young stepdaughter and credited the evidence presented during trial and the sentencing hearing that the defendant had sexually abused the victim in the past.
In announcing the verdict, U.S. Attorney Liu commended the work of those investigating the case from the Metropolitan Police Department’s Youth and Family Services Division. She also expressed appreciation for the assistance provided by the Children’s Advocacy Center. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Tiffany Fogle; and Victim/Witness Advocate Juanita Harris.
Finally, she commended the work of Assistant U.S. Attorney Marisa S. West, who investigated and prosecuted the case.
Dennehotso Man Sentenced to Prison for Possession of Short-Barreled ShotgunRead the Press Release
PHOENIX, Ariz. – This week, Demetrius Sturkey, of Dennehotso, Ariz., was sentenced by U.S. District Judge Susan M. Brnovich to 30 months of imprisonment to be followed by three years of supervised release. Sturkey had previously pleaded guilty to unlawful possession of an unregistered firearm.
On February 20, 2019, Sturkey possessed a weapon made from a shotgun, which had been modified to shorten the barrel. Federal law prohibits the possession of a weapon made from a shotgun, if the modified weapon has a barrel less than 18 inches in length and an overall length of less than 26 inches, unless that weapon is registered to the possessor in the National Firearms Registration and Transfer Record. The firearm Sturkey possessed was not registered in the National Firearms Registration and Transfer Record. Sturkey is an enrolled member of the Navajo Nation and this crime occurred on the Navajo Nation Reservation. Sturkey’s sentence was enhanced because the firearm he possessed was previously stolen.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
Defense Contractor, Company President, Former Bookkeeper to Pay $1 Million to Settle False Claims Act AllegationsRead the Press Release
GS Engineering, Inc.’s President, Former Bookkeeper, And Four Related Companies Also Agree To Voluntary Exclusions From Federal Contracts And Awards
GRAND RAPIDS, MICHIGAN —U.S. Attorney Andrew Birge announced today that GS Engineering, Inc. ("GSE"), a defense contractor in Houghton, Michigan, along with GSE’s president and GSE’s former bookkeeper, will pay a total of $1,000,000.00 to resolve allegations that GSE submitted false claims for lease costs under its federal defense contracts. In connection with the settlement, GSE’s president, GSE’s former bookkeeper, and four companies that those individuals owned and controlled—Arcadian Holdings, LLC, Echo Leasing, LLC, GS Engineering Services, Inc. (d/b/a GS Infrastructure), and LJ Leasing, LLC—agreed to be voluntarily excluded from federal contracts and awards for a period of three years.
The settlement resolves allegations that between August 2009 and December 2015, GSE double-billed defense agencies by fully depreciating certain data acquisition equipment—and charging that depreciation to government contracts—before purporting to transfer and lease that same equipment back from Echo Leasing, a related company. The government also alleged that between January 2009 and November 2016, companies under GSE’s common control (Arcadian Holdings, Echo Leasing, GS Infrastructure, and LJ Leasing) leased real property and equipment to GSE at rates that exceeded allowable amounts under the Federal Acquisition Regulation.
In addition to its settlement with the U.S. Attorney’s Office, GSE entered into a three-year administrative agreement with the United States Army. The administrative agreement requires GSE to, among other things, maintain an ethics and compliance program and retain a Corporate Ethics Monitor to review and report on GSE’s compliance with government contracting requirements.
"Defense contractors cannot use their control over related companies to unnecessarily increase costs to the government," U.S. Attorney Birge said. "My office will protect the integrity of the procurement process and ensure that contractors comply with all applicable laws."
This case was a cooperative effort among the Defense Contract Audit Agency, the Defense Criminal Investigative Service, the United States Army Criminal Investigation Command, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States.
The claims resolved by the settlements are allegations only. There has been no determination of liability.
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Davis Resident Convicted by Jury in California Driver’s License FraudRead the Press Release
SACRAMENTO, Calif. — David Sun, 53, of Davis, was found guilty today on all counts related to a scheme to fraudulently obtain California Class A and Class B commercial driver licenses (CDLs) for the students of his commercial driving school, U.S. Attorney McGregor W. Scott announced.
After a 7-day trial, a jury found Sun guilty of one count of conspiracy to commit unauthorized access of a computer and to produce identification documents without lawful authority, eight counts of production of identification documents without lawful authority, and one count of conspiracy to produce identification documents without lawful authority and to transfer identification documents produced without lawful authority.
According to court documents and evidence produced at trial, Sun operated a driving school named Commercial Driver Institute USA in the East Bay with a parking lot in Richmond. Sun primarily catered to Mandarin and Cantonese speaking students. He helped students get Class A or Class B commercial driver licenses that allowed them to drive large vehicles like tractor-trailer trucks and buses. Sun typically charged $2,500 to $6,500 per student.
Sun committed two different types of fraud: a testing conspiracy where Sun helped his California students fraudulently bypass the required written or driving tests to get commercial licenses, and a residency conspiracy where Sun recruited students from New York and helped them pose as California residents to get a California CDL. Sun would arrange for the licenses to be mailed to the students who had returned to their actual home state of New York.
Sun’s students struggled with the written tests because of their English language limitations so he helped them bypass the written testing requirements for learner’s permits. Those permits were issued from DMV’s Walnut Creek office under one employee’s login from at least November 2014 through January 2016. None of Sun’s students in the conspiracy or charged counts ever went to that Walnut Creek DMV office or passed the tests on the dates indicated in DMV’s records. Sun instructed his students to attempt the written tests, which they did at various DMV offices in the Bay Area. If they failed, Sun took their DMV receipt, which would show their unique California DMV number, and a fraudulent permit would issue from the Walnut Creek DMV after fraudulent passing scores were entered under the Walnut Creek employee login.
On occasion, Sun provided his students with a Bluetooth device to wear during the driving test, and instructed them to wear a beanie to conceal it, so that Sun could tell the student what to say and do during the test. In addition, on many occasions Sun took his students to a particular license examiner at the DMV in Santa Rosa with whom Sun had a personal relationship. Evidence at trial showed that Sun was paid extra money to guarantee they would pass the driving tests.
This case is the product of an investigation by the California Department of Motor Vehicles Office of Internal Affairs and Homeland Security Investigations. Assistant U.S. Attorneys Rosanne L. Rust and Christopher S. Hales are prosecuting the case.
Sun is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Dec. 9. Sun faces a total statutory maximum penalty of 15 years and 5 years in prison respectively for the conspiracy counts, as well as a maximum of 15 years in prison for each of the eight counts of production of identification documents without lawful authority. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Convicted Felon Sentenced to 92 Months for Illegally Possessing a Firearm During a Domestic Violence IncidentRead the Press Release
Memphis, TN – Edward Drummer, 36, has been sentenced to 92 months in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on January 29, 2018, Memphis Police officers responded to an aggravated assault/domestic violence call at a residence. During an argument, a female victim and her twelve-year-old son were held at gunpoint by her boyfriend of one month, Edward Drummer. The victim and her son managed to escape and called the police. Officers found Drummer hiding inside a closet and located the firearm he used inside a kitchen stove. The firearm was a Smith & Wesson .22 caliber pistol.
Drummer has a significant prior criminal history for violence, including felony convictions for aggravated robbery with a deadly weapon and aggravated burglary, as well as misdemeanor convictions for possession of marijuana and resisting arrest.
On September 5, 2019, U.S. District Court Judge Thomas L. Parker sentenced Drummer to 92 months in federal prison followed by 2 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Reducing violent crimes committed with firearms is the top priority of this office and the Department of Justice. Prohibited persons in possession of firearms such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to their families and the community at large. This is exactly the type of dangerous offender that the PSN Task Force is designed to target, and I commend their work in holding Drummer responsible and removing him from our streets for over 7 years."
The case was investigated by the Project Safe Neighborhoods (PSN) Task Force, which includes the U.S. Attorney’s Office; the Shelby County District Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through targeted investigations and aggressive prosecution.
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Center Point Man Sentenced to 50 Years for Producing, Distributing Child PornographyRead the Press Release
BIRMINGHAM – A federal judge yesterday sentenced a Center Point man to 50 years in prison for producing child pornography, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie Axon sentenced DENNIS JAMES HUDSON JR., 28, also known as D.J. Zygi Hudson, Zygi Hudson, Tyler Johnson and Brandon McDaniels, on 5 counts of producing child pornography and one count of distributing child pornography. Hudson pled guilty in January 2019, for persuading persons under the age of 18 to engage in sexually explicit conduct and transmit images of that conduct over the internet, and to distributing child pornography using the internet and a file-sharing website.
“A long prison sentence is well-deserved for this defendant,” Town said. “We commend the FBI and ALEA for their work to diligently monitor the internet using every available resource to catch yet another child predator. He will now spend the next 50 years gazing at prison bars instead of a computer screen.”
“Hudson deserves every day of this sentence, as he used the internet for his own perverse behavior,” Sharp said. “Let this be a reminder to all parents to monitor your children's internet use. Know who they are communicating with and promptly report anything suspicious.”
FBI investigated the case, along with the Alabama Law Enforcement Agency. The case was prosecuted by Assistant United States Attorneys Manu Balachandran and Leann White.
Bronx Man Sentenced to over 26 Years in Prison for 2011 Gang-Related MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DEANDRE MORRISON, a/k/a “D-Nice,” was sentenced today to 318 months in prison for the murder of Danny Delgado on August 1, 2011. MORRISON shot and killed Delgado at the direction of a high-ranking member of the MacBallas, a subset of the Bloods street gang, in the Bronx. MORRISON was sentenced by U.S. District Judge Denise Cote, after previously pleading guilty to racketeering conspiracy and narcotics conspiracy offenses.
U.S. Attorney Geoffrey S. Berman said: “Deandre Morrison executed Danny Delgado in cold blood right outside his home. For this senseless act of violence, Morrison will now serve over 26 years in prison. We thank the NYPD and the DEA for their tireless work pursuing justice in this case.”
According to court filings and statements made in connection with the sentencing proceeding:
Beginning in or around 2011, MORRISON was an associate of the MacBallas, who sold crack cocaine in MacBalla territory. On or about August 1, 2011, a high-ranking member of the MacBallas approached MORRISON and asked him to kill Danny Delgado because the high-ranking gang member believed that Delgado had publicly disrespected him. MORRISON agreed to commit the murder, which was a means for him to increase his status among the MacBallas. That same night, MORRISON walked to Delgado’s residence on East 153rd Street in the Bronx, walked up to Delgado, and opened fire, shooting Delgado three times, then fled on foot. Delgado died from his injuries later that night. After committing this murder, MORRISON gained both membership and heightened status within the MacBallas, and he remained a member of the gang for years.
* * *
In addition to the prison term, MORRISON, 28, of the Bronx, New York, was sentenced to 3 years of supervised release.
Mr. Berman praised the outstanding investigative work of the NYPD and the DEA.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Christopher Clore, Maurene Comey, and Justin Rodriguez are in charge of the prosecution.
Bloods Gang Member Indicted for Racketeering and Double Homicide on Long IslandRead the Press Release
Taheem Smith, a member of the Bloods street gang, was arraigned this afternoon before United States Magistrate Judge Gary R. Brown in federal court in Central Islip on an 11-count indictment charging him with racketeering, murders in aid of racketeering of David Arzu and Janelle Curella, robbery, firearms charges and narcotics possession and distribution. Smith was arrested yesterday and was ordered remanded pending trial by Magistrate Judge Brown.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), and Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the charges.
“As alleged, the defendant murdered an innocent man and woman to increase and maintain his own standing in the ruthless Bloods street gang,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue working unrelentingly to end the violent careers of gang members like Smith and decimate gangs like the Bloods to which they belong.” Mr. Donoghue expressed his appreciation to the FBI’s Long Island Gang Task Force for their work on the case.
"Violent gangs believe they can act with impunity, as if their actions don't impact innocent people,” stated FBI Assistant Director-in-Charge Sweeney. “Mr. Smith allegedly killed two people just to rob them. No amount of money is worth a human life. Our FBI Long Island Gang Task Force and law enforcement partners continue our determination to stop all illegal gang activity from destroying the peace in communities, and bring the members and leadership to justice.”
“It is alleged that just over three years ago, Smith murdered two during a robbery on a Bay Shore street. As a member of the Bloods gang, Smith’s proclivity for weapons, violence and drugs regularly spilled out into our Long Island neighborhoods,” stated HSI Special Agent-in-Charge Fitzhugh. “Partnerships among law enforcement continues to be paramount in gang investigations because our communities can no longer tolerate the volatility associated with criminal gangs.”
“These charges levied upon Mr. Smith today exemplify our commitment to apprehending those who act on such violence and prey on those who are vulnerable,” stated SCPD Commissioner Hart. “We will continue to work with the Eastern District of New York and our law enforcement partners on all levels to dismantle gang activity and rid our communities of illicit drugs and unlawful behavior.”
As alleged in the indictment and court filings and proceedings, on the evening of September 2, 2016, David Arzu, Janelle Curella and two friends were walking toward the Long Island Railroad Station in Bay Shore. Smith and his co-conspirator approached the group, brandished firearms, and demanded the victims’ money and valuables. During a struggle, Arzu and Curella were shot. They died of their wounds a short time later.
The charges in the indictment are allegations, and the defendant is presumed to be innocent unless and until proven guilty. If convicted, Smith faces up to a maximum sentence of life imprisonment.
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 its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone and Mark E. Misorek are in charge of the prosecution.
The Defendant:
TAHEEM SMITH (also known as “Ta”)
Age: 25
Farmingville, New YorkE.D.N.Y. Docket No. 19-CR-417 (ADS)
Berkeley County woman admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Cassandra Elaine Riggs, of Hedgesville, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Riggs, age 30, pled guilty to one count of “Unlawful Possession of a Firearm.” Riggs, who is prohibited from having a firearm or ammunition because of previous felony convictions, admitted to having a .223 caliber semi-automatic rifle in October 2018 in Berkeley County.
Riggs faces up to 10 years incarceration and a fine of up to $250,000. 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.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Probation Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Belle Vernon Man Sentenced to 2 More Years in Prison for New Supervised Release Violations, This Time on the Day of His ReleaseRead the Press Release
PITTSBURGH, PA – A former Fayette County resident has been sentenced in federal court to two years (24 months) in prison for violating multiple conditions of his supervised release, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence yesterday on Eric Seighman, age 36, formerly of Belle Vernon, Pennsylvania.
According to information presented to the court, Seighman had previously been sentenced to 30 months’ imprisonment and three years of supervised release for conspiring to possess and pass thousands of dollars of counterfeit currency. He had also been sentenced to an additional 24 months’ imprisonment for prior violations of his supervised release. Seighman began his current term of supervised release on August 6, 2019, and was arrested by Pittsburgh Police the same day on charges of possession of a controlled substance, possession of marijuana, and possession of drug paraphernalia; those charges are pending against him. Evidence presented to the court also indicated that, during the first week of his supervised release term, Seighman attempted to smuggle syringes and stamp bags of suspected heroin into the residential re-entry facility where he was staying, and later left the facility without permission.
Judge Bissoon found that Seighman had violated the conditions of his supervised release by committing another crime; unlawfully possessing a controlled substance; failing to notify his probation officer of his arrest; and failing to reside in a residential re-entry facility and abide by its rules. The court revoked Seighman’s supervised release and imposed the maximum sentence allowed by law, 24 months in prison, after considering factors such as the seriousness of Seighman’s violations, his criminal history, and the need for deterrence and to protect the public.
Assistant United States Attorney Adam N. Hallowell prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Probation Office and the Pittsburgh Bureau of Police for their efforts in this matter.
Allentown Man Is Sentenced to Ninety Months Imprisonment for Drug TraffickingRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Andrew Perez, age 31, of Allentown, Lehigh County, was sentenced yesterday by Senior U.S. District Court Judge A. Richard Caputo to ninety months’ imprisonment and four years on supervised release for his role in a Monroe County-based heroin and cocaine trafficking conspiracy.
According to United States Attorney David J. Freed, Perez previously pleaded guilty to conspiring with others to distribute between 700 grams and 1 kilogram of heroin (which is equivalent to 28,000 to 40,000 individual doses of heroin), as well as additional amounts of crack cocaine, in the Monroe County area between May and July 2015. Perez was one of eleven individuals indicted by a grand jury in July 2015 and charged with conspiring to distribute heroin, powder cocaine and crack cocaine in the Monroe County area.
The case was investigated by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement 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 enforcement and the local community to develop effective, locally-based strategies to reduce 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.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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8 More Gadsden, Jackson, and Calhoun County Residents Charged in Drug Trafficking ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury returned a superseding indictment, charging eight additional defendants with federal drug trafficking offenses. The indictment arises from an investigation that previously resulted in charges against twelve other defendants for offenses stemming from a long-term investigation into drug trafficking. The superseding indictment was announced today by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The newly charged defendants are:
• Otis Goulds, 58, of Chattahoochee, Florida;
• Savanna Price, 20, of Marianna, Florida;
• Travis Smith, 37, of Malone, Florida;
• Charles Randolph Corbin, 46, of Blountstown, Florida;
• Justin Cribley, 36, of Chattahoochee, Florida;
• Zanntayfey Yohoun Bennett, 35, of Quincy, Florida;
• Jeremy Williams, 29, of Greenwood, Florida; and
• Tanya Henry, 41, of Grand Ridge, Florida
The superseding indictment and arrests resulted from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) Operation, which targeted a drug trafficking organization headed by Jermaine Hadley. The organization is alleged to be responsible for the distribution of methamphetamine, cocaine, and MDMA throughout the north-central Florida Panhandle between 2018 and 2019. The superseding indictment is a continuation of the prosecution that commenced with the original indictment returned in May.
If convicted, the eight new defendants face penalties ranging up to and including life imprisonment and fines up to $20 million.
The case was investigated by a number of federal, state, and local agencies, including the Drug Enforcement Administration, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the U.S. Department of Agriculture, the Gadsden County Sheriff’s Office, the Jackson County Sheriff’s Office, the Florida Highway Patrol, the Chattahoochee Police Department, the Tallahassee Police Department, the Leon County Sheriff’s Office, the Calhoun County Sheriff’s Office, the Florida Department of Law Enforcement, and the Florida Air National Guard Counterdrug Program. The case is being prosecuted by Assistant United States Attorney Eric Mountin.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt and dismantle the targeted criminal organization and seize its assets.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
11 Charged after Investigation into Gang-Related Drug Distribution and Violence in HartfordRead the Press Release
U.S. Attorney John H. Durham, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Jason Thody, Interim Chief of the Hartford Police Department, today announced that 11 men have been charged with various federal offenses related to the distribution of fentanyl and other narcotics in Hartford and, the illegal possession of firearms.
In July 2019, after a spate of gun violence in Hartford, the FBI’s Northern Connecticut Violent Crimes Gang Task Force, DEA, Hartford Police Department and other law enforcement agencies, including the East Hartford Police Department and Connecticut State Police, initiated an investigation targeting gang-related drug distribution and associated violence in north Hartford. The investigation has included numerous controlled purchases of narcotics.
On September 11, 2019, a grand jury in Hartford returned seven indictments charging 10 of the defendants. Nine defendants were arrested this morning, one defendant was previously arrested on a state parole violation, and one defendant was arrested and indicted in August. All are presently detained.
In association with today’s arrests, law enforcement conducted four federal search warrants and recovered two firearms in the home of one of the defendants.
During today’s operation, several individuals also were arrested on various state charges.
Unless otherwise noted, the following individuals are Hartford residents and were arrested today:
PEDRO ALVARADO, 43, is charged in a two-count indictment with one count of possession of a firearm by a convicted felon, and one count of possession of marijuana with intent to distribute. The indictment alleges that, on July 24, 2019, Alvarado possessed a loaded Smith & Wesson, Model 422, .22 caliber handgun, and marijuana. Prior to that date, Alvarado was convicted in state court of felony risk of injury, assault, larceny and narcotics offenses.
HANEEF BROOKS, 40, is charged in an indictment with one count of possession of a firearm by a convicted felon. The indictment alleges that, on July 15, 2019, Brooks possessed a 7.62x39mm Norinco SKS rifle. Prior to that date, Brooks was convicted in state court of felony weapon possession and drug offenses.
NATHANIEL DEJESUS, 19, is charged in a three-count indictment with one count of possession with intent to distribute, and distribution of, cocaine base (“crack”), one count of possession with intent to distribute, and distribution of, fentanyl and cocaine base; and one count of possession with intent to distribute fentanyl and cocaine base. It is alleged that DeJesus possessed and/or distributed the narcotics on three occasions in August 2019.
BRIAN EVANS, 20 and JORDAN MADDOX, 22, are charged in a five-count indictment with possession with intent to distribute, and distribution of, fentanyl. The indictment alleges that Evans and Maddox distributed the drug on multiple occasions in July and August 2019. During one of the transactions, Maddox also distributed a quantity of crack cocaine. A search of Evans’ residence today revealed two firearms.
JOSHUA JENKINS, 26, KENDALL FAIR, 20, and TRELIQUE WARD, 20, are charged in a 10-count indictment with various offenses related to the distribution of fentanyl and crack cocaine between July and September 2019. Ward was previously arrested for a state parole violation and is currently in state custody.
SHAUN HAWKINS, 42, is charged in an indictment with three counts of possession with intent to distribute, and distribution of, cocaine base, related to his distribution of the drug on three occasions in August and September 2019.
CHRISTIAN PATTERSON, 19, is charged in a three-count indictment with one count of possession with intent to distribute, and distribution, of cocaine base, and two counts of possession with intent to distribute, and distribution of fentanyl and cocaine base. It is alleged that Patterson distributed the drugs in August and September 2019.
On August 21, 2019, a grand jury returned an indictment charging McCLENDON JONES, 39, of Bloomfield, with two counts of possession with intent to distribute multiple controlled substances, including, fentanyl, heroin, cocaine base, cocaine, PCP and marijuana. On August 8, 2019, it is alleged that Jones sped away from investigators who were conducting a traffic stop in Hartford. Jones’ vehicle struck a city transit bus and then another vehicle before it crashed into a fence on Mahl Avenue. After Jones was apprehended, a search of the vehicle revealed approximately 47 grams of crack cocaine, a half-pound of marijuana, 100 bags of packaged fentanyl, and 60 bags of packaged heroin. A subsequent search of Jones’ residence revealed a glass jar containing approximately 28 grams of liquid PCP, 1,000 bags of packaged fentanyl/heroin, 145 grams of powder cocaine, 350 grams of crack, 27 grams of fentanyl, 230 grams of raw heroin, 12 pounds of marijuana, and $8,000 in cash. Jones has been detained since his arrest.
U.S. Attorney Durham stressed that charges are not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The U.S. Postal Inspection Service, Manchester Police Department, West Hartford Police Department and the North Central SWAT Team assisted today’s arrests.
These cases are being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson, S. Dave Vatti and Geoffrey M. Stone.
12 September 2019
U.S. Citizen Extradited from Brazil Pleads Guilty to Wire Fraud ChargesRead the Press Release
BOSTON – A former accountant pleaded guilty today in federal court in Boston in connection with a $2 million wire fraud scheme.
Christopher Morris, 48, formerly of Lowell and Chelsea, Mass., pleaded guilty to four counts of wire fraud and 12 counts of unlawful monetary transactions. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Dec. 10, 2019. In November 2014, Morris was charged in an indictment in the District of Massachusetts. In May 2019, he was extradited from Brazil, where he had been living since 2013.
Morris admitted that he participated in a wire fraud scheme targeting his employer PBS Distribution (PBSd), a media distribution business with operations in Allston and elsewhere. Morris’ position gave him access to U.S. mail addressed to PBSd’s accounting department, including checks payable to PBSd. Beginning as early as January 2008 and continuing through September 2012, Morris took more than $2 million in checks under the guise of depositing them into PBSd’s bank accounts, but he instead endorsed them to himself and deposited them into a personal bank account. Morris used his access to PBSd’s accounting system to conceal the theft by, among other steps, fraudulently causing credits to be issued to the accounts of customers whose checks he stole, and by causing PBSd’s general ledger to be altered to show that the same customers had made payments. Morris spent the proceeds of the scheme on a lavish lifestyle that included, among other expenses, year-long apartment rentals in New York City’s Greenwich Village and Tribeca neighborhoods, the down payment, purchase and upkeep of a waterfront condominium in Chelsea, and luxury clothing, dining and travel, including a $16,000 two-week South American cruise.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 on each count. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of the greater of either $250,000 or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement today. The U.S. Marshals Service for the District of Massachusetts and the U.S. Department of Justice’s Office of International Affairs provided assistance with Morris’ extradition to the United States, and Lelling thanked Brazilian authorities for their cooperation in this matter. Assistant U.S. Attorney Seth B. Kosto, of Lelling’s Cybercrime Unit, is prosecuting the case.
U.S. Attorney: $750,000 Federal Grant Will Support Wichita Gun Crime CenterRead the Press Release
WICHITA, KAN. – A $750,000 grant from the U.S. Department of Justice will help the Wichita Police Department set up a gun crime center, U.S. Attorney Stephen McAllister said today.
The grant is part of a federal initiative aimed at putting more resources into cities that are fighting violent crime problems.
“We want the Wichita Police Department to have more tools to fight violent crime,” U.S. Attorney Stephen McAllister said. “Technology, intelligence and community engagement are the keys to identifying firearms used in crimes and successfully prosecuting armed criminals.”
In its application for the grant, the Wichita Police Department outlined plans to develop a Crime Gun Intelligence Center (CGIC), including a crime analyst, an investigator, training, software for data analysis, bullets, cameras, a remote test fire system, microscope, bullet detection sensors, a CGIC prosecutor and forensic examiner. The plan includes funding for Wichita State University to serve as a research partner. The federal Bureau of Alcohol, Tobacco, Firearms and Explosives will work with police on the project.
Funding is being provided by the Justice Department’s Bureau of Justice Assistance through the National Crime Gun Intelligence Center initiative. For more information. More information on the program is available at https://crimegunintelcenters.org/
U.S. Attorney Bryan Schroder Announces Efforts Made to Address Public Safety Crisis in Rural AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced an update on efforts made by law enforcement agencies to address the public safety crisis in rural Alaska. In May 2019, Attorney General William P. Barr came to Alaska to personally examine the public safety situation in the vast rural areas of the state. Based on that visit, Attorney General Barr declared a law enforcement emergency in rural Alaska under the Emergency Federal Law Enforcement Assistance (EFLEA) program, making $6 million immediately available to the State of Alaska for critical law enforcement needs. Recognizing that Alaska has the highest per capita crime rate in the country, and the unique circumstances of Alaska’s geographical and jurisdictional landscape, the Attorney General authorized additional funding, and several long-term measures to support village public safety and victim services. A summary of the grant awards and ongoing agency efforts are below.
Formation of the RAAVEN Working Group
In his announcement of emergency funding for public safety in rural Alaska, Attorney General Barr tasked the U.S. Attorney for the District of Alaska to form a rural Alaska violent crime reduction working group. Within days, U.S. Attorney Bryan Schroder formed the group, now called the Rural Alaska Anti-Violence Enforcement (RAAVEN) Working Group. Initially, the group helped coordinate the law enforcement and prosecution resources provided by Attorney General Barr, including the $6 million EFLEA grant, and almost $5 million in Tribal Resource Grant Funds, both discussed below. In addition to members from the federal, state, and local law enforcement community, RAAVEN will also form a consultation group with Alaska Native leaders, working on medium and long-term planning to address violent crime issues in rural Alaska.
EFLEA Grant Award to the Alaska Department of Public Safety (DPS)
Based on the Attorney General’s declaration of a law enforcement emergency in rural Alaska, the State of Alaska Department of Public Safety (DPS) applied for, and was awarded, $6 million from DOJ’s EFLEA Program. DPS proposed to use this funding to address the high rates of domestic violence, sexual assault, and other violent crimes in the state by subgranting funds to Alaska Native organizations and villages to address critical public safety infrastructure needs in rural Alaska to support law enforcement services within communities.
DPS is actively developing the sub-grant solicitation for communities and tribal entities to apply for a portion of the $6 million made available through the EFLEA Program. The funding is expected to be available starting Oct. 1, 2019, for qualifying infrastructure projects, such as holding cells. Quality infrastructure for public safety purposes will help ease recruitment and retention issues in rural Alaskan communities.
With the notable call for more public safety options in rural Alaska, the Alaska Police Standards Counsel has increased its outreach to communities to help screen Village Police Officer (VPO) applicants. Additionally, training opportunities for VPOs and Tribal Police Officers (TPOs), through Yuut Elitnaurviat (YE) Corporation, commonly known as Yuut, has increased. An extra academy was added to the training schedule for October 2019. Providing training in rural Alaska makes it less burdensome for recruits and existing VPOs to attend. Yuut provides training and education opportunities for the people of the Yukon-Kuskokwim Delta Region.
COPS Grant Award
On July 30, 2019, Department of Justice’s Office of Community Oriented Policing Services (COPS) awarded nearly $5 million through the Tribal Resources Grant Program for the hiring, equipping, and training of VPOs and TPOs working in rural Alaska. The awards are as follows:
Tribal Agency
Funding for Equipment
Funding for Hiring
Positions Funded
Akiachak Native Community
$58,074
$241,429
3
Central Council Tlingit and Haida
$204,721
$0
0
Chickaloon Native Village
$4,378
$286,831
1
Holy Cross Tribe
$113,999
$185,457
1
Kasigluk Elders Council
$42,212
$255,077
1
Kodiak Area Native Association
$177,566
$0
0
Maniilaq Association
$253,562
$0
0
Native Village of Kipnuk
$41,199
$109,137
1
Native Village of Kwinhagak
$59,443
$108,211
1
Native Village of Mekoryuk
$7,260
$169,823
2
Native Village of Napaskiak
$31,829
$249,106
2
Native Village of Nulato
$58,837
$223,445
1
Native Village of Ruby
$79,681
$197,539
1
Native Village of Scammon Bay
$38,628
$249,216
2
Native Village of Tanacross
$75,074
$185,538
1
Native Village of Tununak
$73,017
$129,853
1
Northway Village
$70,819
$180,314
1
Sitka Tribe of Alaska
$300,000
$0
0
Venetie Village Council
$38,302
$249,944
1
Yakutat Tlingit Tribe
$241,681
$0
0
U.S. Attorney’s Office, District of Alaska
On July 24-25, 2019, representatives from the U.S. Attorney’s Office participated in live trainings in Anchorage and Bethel, hosted by DOJ’s Office of Bureau of Justice Assistance (BJA), Office of Victims of Crime (OVC), COPS, and Office of Tribal Justice (OTJ), on providing guidance to potential applications and tribal associations on how to access the OCV tribal set-aside grants for victim services. During the week of Aug. 18, 2019, U.S. Attorney Schroder joined community members, along with officials from the White House and the U.S. Department of the Interior (DOI) at the Reclaiming our Native Communities Roundtable in Nome, Alaska. Members of the U.S. Attorney’s Office also attended a Public Safety Listening Session in Bethel, Alaska the same week to discuss ways to address public safety challenges in the region.
Part of the resources authorized by Attorney General Barr included three new federal prosecutor positions focused on rural Alaska. The U.S. Attorney’s Office has selected one new attorney and is currently reviewing resumes for two additional prosecutors who will have an emphasis on criminal cases in rural Alaska.
U.S. Drug Enforcement Administration (DEA)
In the last 30 days, the Drug Enforcement Administration (DEA), in partnership with the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), the Alaska State Troopers (AST), and the Tanana Chief’s Conference, visited villages in the interior and the north coastal Alaska regions, discussing collaborative public safety and prevention measures with community leaders and local law enforcement officers. DEA also held community outreach visits with the students of each village, highlighting gun safety and the DEA Red Ribbon program, the nation’s oldest and largest drug prevention program.
Also, DEA Diversion Investigators visited with community leaders, pharmacists and medical professionals throughout the North Slope. Productive conversations regarding the on-going opioid epidemic, record keeping and federal regulations were discussed. Efforts are on-going and visits will continue throughout Alaska.
Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF)
Since Aug. 19, 2019, ATF, in partnership with DEA, AST, and the Tanana Chiefs Conference, traveled to villages in the interior and the north coastal Alaska regions, discussing collaborative public safety and prevention measures with the community leaders and local law enforcement officers. During this time, ATF participated in community outreach visits with students of each village highlighting the importance of firearms safety. Additionally, ATF informed community leaders of existing federal firearm statutes that can be applied to address violent offenders within their communities and also provided information on resources available to victims of domestic violence.
ATF efforts will continue throughout rural Alaska and will include training sessions for state and local law enforcement officers that will focus on firearms enforcement training to improve state and local law enforcement response to firearms related crimes, and identification of offenders suitable for prosecution.
U.S. Postal Inspection Service (USPIS)
Starting on Aug. 18, 2019, the USPIS, DEA, HSI, and ATF, have been conducting drug enforcement operations looking for controlled substances destined to rural Alaska. These operations resulted in the seizure of approximately 30,000 controlled pills along with other suspected controlled substances.
U.S. Marshals Service (USMS)
The U.S. Marshals continue to work in partnership with AST in rural Alaska. Rob Heun, U.S. Marshal for Alaska, is currently hosting the U.S. Marshals Service Director Donald Washington to address the role the Marshals will play in Attorney General Barr’s initiative. As part of this assessment, on Sept. 10, 2019, the USMS spent the day in Bethel and Tuntutuliak. During this time, the USMS coordinated equipment needs for AST, met with the Association of Village Council Presidents (AVCP), met with village leaders in Tuntutuliak, and coordinated with Yuut and the lower Kuskokwim School District regarding kid’s camps.
This announcement was made as part of the Rural Alaska Anti-Violence Enforcement (RAAVEN) Working Group’s ongoing efforts to build the capacity of federal, state, and tribal law enforcement in rural Alaska. The RAAVEN Working Group, led by the U.S. Attorney’s Office, encourages extensive collaboration among law enforcement at all levels, rural communities, Alaska Native groups, victim service organizations, and care providers. Current law enforcement members of the working group include the U.S. Attorney’s Office (USAO), State of Alaska Department of Public Safety (DPS), State of Alaska Department of Law (DOL), the U.S. Marshals Service (USMS), FBI, DEA, ATF, the U.S. Postal Inspection Service (USPIS), Homeland Security Investigations (HSI), the U.S. Coast Guard (USCG), and the Anchorage Police Department (APD).
U.S. Attorney Announces Settlement of Civil Fraud Claims Against Italian Textile Company for Scheme to Use U.S. Subsidiary to Underpay Customs DutiesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Troy Miller, Director, Field Operations New York, U.S. Customs and Border Protection (“CBP”), announced today that the United States has filed and settled a civil fraud lawsuit against MIROGLIO TEXTILE S.R.L. (“MIROGLIO”), an Italian textile manufacturer, and its wholly owned, New York City-based subsidiary, MIROGLIO TEXTILES USA, INC (“MIROGLIO USA”). As alleged in the Government’s complaint, MIROGLIO used sham intermediary “sales” to MIROGLIO USA at fraudulent, artificially low values, in order to underpay customs duties on goods that in fact MIROGLIO sold directly to United States customers at higher prices. Pursuant to the settlement, MIROGLIO and MIROGLIO USA admit and accept responsibility for conduct alleged in the complaint, agree to pay the United States a sum of $650,000, and agree to implement a policy to ensure future compliance with customs laws, including rules governing transactions between related parties like MIROGLIO and MIROGLIO USA. The settlement was approved yesterday by United States District Judge Louis L. Stanton.
U.S. Attorney Geoffrey S. Berman said: “Importers cannot use related-party companies to simply make up values out of whole cloth, but must pay duties based on legitimately reported values. We will be vigilant to ensure that companies pay the customs duties they owe when importing goods into the country.”
CBP Field Operations Director Troy Miller said: “The case filed today is a testament to the dedication of our partners in the United States Attorney's Office, Homeland Security Investigations, and our CBP officers, auditors, import specialists, and attorneys in enforcing our nation’s trade laws and punishing those perpetrating this type of fraud.”
The Government’s complaint-in-intervention alleges that for each sale of fabric, decals, and other products MIROGLIO made to a customer in the United States, MIROGLIO created a simultaneous sham transaction to its subsidiary MIROGLIO USA at an artificial discount unrelated to any bona fide market factor. MIROGLIO and MIROGLIO USA reported that fraudulent sale to CBP as the basis to calculate duties upon entry of the goods into the United States, which MIROGLIO USA claimed it was then independently reselling to end customers. But MIROGLIO USA never made any legitimate payment for its sham purchases from MIROGLIO, never took any inventory aside from a few sample pieces, and played no role in selecting the end customers or setting the terms of sale. The sham sales by MIROGLIO to MIROGLIO USA existed solely on paper and solely for the purpose of falsely undervaluing goods and reducing the customs duties that would apply. MIROGLIO and MIROGLIO USA also falsely certified to CBP that these fraudulent transactions were not affected by their related-party status.
As part of the settlement, MIROGLIO and MIROGLIO USA agreed to pay $650,000 and to implement a written compliance policy that will include measures to ensure that they properly report related-party transactions and pay duties on the full, actual value of all future imports. In addition, MIROGLIO and MIROGLIO USA admit, acknowledge, and accept responsibility for the following conduct:
- The reported values in the paper transactions between MIROGLIO and MIROGLIO USA were wholly influenced by the two companies’ status as related parties, and were based on an arbitrary discount calculated to reduce customs duties rather than on any legitimate market factors.
- MIROGLIO USA never paid proper consideration and in most cases did not receive or hold the goods that MIROGLIO USA supposedly purchased from MIROGLIO.
- MIROGLIO USA had no meaningful control over the transactions actually underlying the imports in question, as MIROGLIO USA had no authority to determine or negotiate the products to be sold, their prices, or the identity of end customers.
- MIROGLIO and MIROGLIO USA reported the low, artificial prices on CBP entry forms and associated invoices even though MIROGLIO and MIROGLIO USA were aware at all times that the reported information was incorrect. As a result, MIROGLIO and MIROGLIO USA caused an underpayment of customs duties that were due to the United States.
In connection with the filing of the lawsuit and settlement, the Government intervened in a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.
* * *
Mr. Berman thanked CBP for its efforts and ongoing support and assistance with the case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Stephen Cha-Kim is in charge of the case.
Two Men Federally Indicted for Armed Bank Robberies in Three Wisconsin CountiesRead the Press Release
United States Attorney Matthew D. Krueger announced today that two Waupun men were federally indicted for their involvement in three armed bank robberies in Waukesha, Washington, and Sheboygan Counties in 2019. Justin S. Smith, age 36, and William D. Balgie, age 35, were charged with committing robberies on the following dates at the following locations:
- April 8, 2019, at the National Exchange Bank and Trust in Allenton, Wisconsin;
- June 17, 2019, at the Cornerstone Bank in Menomonee Falls, Wisconsin; and
- August 9, 2019, at the National Exchange Bank and Trust in Glenbeulah, Wisconsin.
If convicted, each man faces up to 25 years in prison on each armed bank robbery count.
This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee District Attorney’s Investigator’s Office, the Menomonee Falls Police Department, the Washington County Sheriff’s Office, the Waupun Police Department, the Sheboygan County Sheriff’s Office, the Slinger Police Department, the Plymouth Police Department, the Beaver Dam Police Department, and the District Attorney’s Offices in Sheboygan, Washington, and Waukesha Counties. It is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
# # # #
Two Kentucky Men Convicted for Concealing Corporate Contributions to U.S. Senate CampaignRead the Press Release
A federal jury in Kentucky found two men guilty of conspiring to use more than $206,670 of corporate funds to make contributions to the campaign of a candidate for United States Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC).
Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky and Special Agent in Charge James Robert Brown Jr. of the FBI’s Louisville Field Office made the announcement.
Following a five-week trial, the jury convicted Gerald G. Lundergan of Lexington, Kentucky, of one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction. The jury convicted Dale C. Emmons of Richmond, Kentucky, of one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements and two counts of causing the falsification of documents with the intent to obstruct and impede.
According to the evidence presented at trial, Lundergan used the funds of S.R. Holding Company Inc. (S.R. Holding), a company he owned, to pay for services provided by consultants and vendors to a campaign for a United States Senate seat in the 2014 election cycle. The candidate for this seat was Lundergan’s daughter, Alison Lundergan Grimes. The evidence established that Lundergan caused the issuance of a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls and campaign consulting, between July 2013 and December 2015.
The corporate contributions also included monthly payments from S.R. Holding to Emmons and his company during this period. Emmons provided services to the campaign and sought and received compensation from Lundergan and S.R. Holding. Emmons also used the funds of his corporation, Emmons & Company Inc., to pay other vendors and a campaign worker for services rendered to the campaign. Those services included recorded telephone calls, technological support services, and other campaign-related expenses.
The evidence established that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments caused the campaign unwittingly to file false reports with the FEC because the reports failed to disclose the source and amount of the corporate contributions.
Deputy Chief Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith are prosecuting the case.
Two Investigations in Waco and Bell County Areas Net 16 Arrests Today on Federal Firearms and Narcotics Trafficking ChargesRead the Press Release
This morning, federal and state authorities arrested 16 individuals stemming from two separate investigations into narcotics trafficking in the Waco and Bell County areas, announced United States Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; Texas Department of Public Safety Director Steven McCraw; Waco Police Chief Ryan Holt; McLennan County Sheriff Parnell McNamara; and, Lacy Lakeview Police Chief John Truehitt.
The first investigation, conducted by FBI, DEA, TXDPS, Waco Police Department, McLennan County Sheriff’s Office and Lacy Lakeview Police Department, resulted in nine (9) arrests today and three (3) prior arrests based on five (5) federal grand jury indictments unsealed today in Waco. During this investigation, authorities seized approximately two kilograms of methamphetamine, four kilograms of cocaine, approximately $50,000 in U.S. Currency, four firearms (including a Mini Draco AK47 assault style pistol), several pounds of marijuana and several hundred THC vaping pens. Also in regards to this investigation, authorities today seized seven (7) firearms, including two (2) AR-15’s (one with night vision equipment), one (1) AK47 pistol, and one (1) AK47 rifle, and approximately $3,600 in U.S. Currency.
- XAVIER ANGELO HERNANDEZ, et al. INDICTMENT – W19cr258
This indictment charges eight (8) defendants with conspiracy to possess with intent to distribute at least 500 grams of methamphetamine in the Waco area since September 2018. Each defendant faces between ten years and life in federal prison upon conviction. Individuals charged in the Hernandez indictment include:
Name, Age, Residence
Xavier Angelo Hernandez (aka “X”), 23, Waco
**Steven Matthew Ochoa, 29, Waco
Julio Cesar Cruz, 26, Waco
Martin Zuniga, Jr., 19, Waco
Gaspar Sardaneta Martinez (aka “Garza”), 28, Waco
Carline Stone Bolding, 49, Elm Mott, TX
Cheryl Ann Flanagan (aka “Cheryl Guajardo “), 40, Waco
Sabrina Maria Sardaneta, 28, Robinson, TX
- CHRISTOPHER MIKEL CLARK INDICTMENT – W19cr256
This indictment charges Christopher Mikel Clark (aka “Little Chris”), age 20 of Waco, with one count of possession of a firearm in furtherance of a drug trafficking crime. Clark faces a mandatory minimum of five years in federal prison upon conviction. In June 2019, authorities executed a search warrant at the defendant’s residence where they recovered marijuana and a Mini Draco AK47 assault style pistol.
- JOSEPH RYAN EDWARDS INDICTMENT – W19cr257
This indictment charges Joseph Ryan Edwards, age 26 of Waco, with one count of possession of a firearm in furtherance of a drug trafficking crime. Edwards faces a mandatory minimum of five years in federal prison upon conviction. During a traffic stop in June 2019, law enforcement searched the defendant’s vehicle and found a .380 caliber pistol, 41 THC Oil pens, and approximately $2,900.00 in U.S. Currency.
- STEVEN MATTHEW OCHOA INDICTMENT – W19cr260
This indictment charges previously named defendant, Steven Ochoa, with one count of possession with intent to distribute at least 500 grams of cocaine. Ochoa faces between five years and 40 years in federal prison upon conviction. In August 2019, Ochoa was arrested with four (4) kilos of cocaine and approximately $16,000 in U.S. Currency.
- AMOR ESPERANZA ZUNIGA, et al. INDICTMENT – W19CR271
This indictment charges **Amor Esperanza Zuniga (aka “Stony Zuniga”), age 19 of Waco, with one count of possession with intent to distribute at least 50 grams of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime. The indictment also charges Zuniga and **Heraclio Santos Carreon, age 41 of Waco, with one count of conspiracy to possess with intent to distribute methamphetamine. Each drug charge calls for between five years and 40 years in federal prison upon conviction. The firearms charge calls for a mandatory minimum of five years in federal prison upon conviction. During a traffic stop on July 21, 2019, authorities searched the defendants’ vehicle and discovered approximately 100 grams of methamphetamine and an RG 14, .22 caliber revolver.
**Defendants Steven Ochoa, Amor Zuniga and Heraclio Carreon were already in custody prior to today.The second investigation, conducted by TXDPS, FBI, DEA and HSI, resulted in seven (7) arrests today stemming from a single federal grand jury indictment unsealed today in Waco.
GERMAN ZARZOZA MORENO, et al. INDICTMENT – W19cr259
Today, authorities arrested seven (7) individuals charged in this indictment. They are:
Name, Age, Residence
German Zarzoza Moreno, 33, Temple, TX
Raul Montes, 47, Galena Park, TX
Jaime Estrada, Jr., 20, Temple
Jesus Alberto Garcia Zuniga, 25, Temple
Erik Enrique Hernandez, 32, Temple
Luis Carlos Jimenez, Jr., 26, Temple
Ezequiel Orozco, 29, Temple
This indictment charges Moreno, Montes and Estrada with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine and one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine. Zuniga and Hernandez are only charged in the cocaine conspiracy count. Jimenez and Orozco are only charged in the methamphetamine conspiracy count. Those charged in the methamphetamine conspiracy face between ten years and life in federal prison upon conviction. Those charged in the cocaine conspiracy face between five and 40 years in federal prison. Under the direction of Moreno and Montes, the defendants allegedly distributed cocaine and methamphetamine in the Temple area since May 2018.
In regards to this investigation, authorities conducted a coordinated search/arrest operation today in the Temple and Houston areas. Today’s operation resulted in the seizure of approximately 2,853 grams of cocaine, 8.4 grams of ecstasy, and 31.9 grams of marijuana. Authorities also seized a .45 caliber Smith and Wesson pistol, a false battery compartment, a kilogram press, and several other items indicative of distribution and transportation of cocaine and methamphetamine.
The U.S. Marshals Service provided valuable assistance with today’s arrests. All of those arrested today remain in federal custody. Detention hearings are expected to occur next week before U.S. Magistrate Judge Jeffrey Manske in Waco.
Assistant U.S. Attorneys Christopher Blanton and Stephanie Smith-Burris are prosecuting these cases on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
- XAVIER ANGELO HERNANDEZ, et al. INDICTMENT – W19cr258
Two Indictments for Marijuana Cultivations in Six Rivers National Forest and Shasta Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two indictments today charging a total of seven defendants with conspiracy to cultivate marijuana, marijuana cultivation, and depredation of federal lands, U.S. Attorney McGregor W. Scott announced.
According to court documents in the first case, between July 19 and Aug. 17, Cornelio Morales Rodriguez, 35, of Oaxaca, Mexico; and Ukiah residents Kevin Humberto Quijada Colocho, 23, and Damian Isaac Rios Faber, 20, were involved in the cultivation of 1,806 marijuana plants east of Haman Ridge in Six Rivers National Forest. About 100 pounds of processed marijuana were seized at the site. The defendants are also charged with depredation of federal lands and resources.
This case is the product of an investigation by the Trinity County Sheriff’s Department, the U.S. Forest Service, the California Department of Fish and Wildlife, the California Highway Patrol Northern Division Air Operations, and the Trinity County District Attorney’s Office.
According to court documents in the second case, between May 23 and Aug. 28, Timothy Charles Wilson, 70, of Pioneer; Filemon Padilla Martinez, 54, of Mexico; Oscar Francisco-Diego, 31, of Guatemala; and Francisco Gomez Sanchez, 37 of Chiapas, Mexico, were involved in the cultivation of 1,054 marijuana plants in the Tomhead Mountain area in in Shasta-Trinity National Forest.
This case is the product of an investigation by the U.S. Forest Service, the Tehama County Sheriff’s Department, and the California Department of Fish and Wildlife with assistance from the Amador County Sheriff’s Office and the California Department of Justice. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting both cases.
If convicted of the marijuana charges, the defendants face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of damaging public lands, the defendants face a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Two Huntsville Men Arrested for Conspiracy to Distribute Fentanyl That Caused a DeathRead the Press Release
BIRMINGHAM – Federal agents arrested two Huntsville men for conspiracy to distribute fentanyl, a potent synthetic opioid painkiller, which resulted in a death, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
A two-count indictment charges Antonio Lavar Burton, a/k/a Fat Tony, 35, and Quincy Cortez McClendon, 35, with conspiring to distribute and possession with the intent to distribute fentanyl, that resulted in a death in November 2017 in Madison County. The grand jury returned the indictment against Burton and McClendon in August 2019.
“A tiny fraction of a gram of fentanyl can be lethal, and as dealers add it to more and more drugs, it is causing both fatal and non-fatal overdoses,” Town said. “Death and destruction of this criminal behavior will not be tolerated, and will be severely punished.”
“Time and time again we have warned drug dealers that we will relentlessly and aggressively bring them to justice in order to protect our children and communities,” Morris said. “We will not sit idly by while drug dealers continue to plague our streets with any drugs, especially fentanyl.”
The penalty for distributing a controlled substance that results in death is 20 years to life in prison and a maximum $1 million fine.
DEA investigated the case, in partnership with the Huntsville Police Department and the Madison County District Attorney’s Office and the United States Marshals Service, which Assistant U.S. Attorney Robert J. Becher Sr. is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Convicted for Concealing Corporate Contributions to U.S. Senate CampaignRead the Press Release
FRANKFORT, Ky. – A federal jury sitting in Frankfort found Gerald G. Lundergan, of Lexington, Ky., and Dale C. Emmons, of Richmond, Ky., guilty of conspiring to use more than $206,670 of corporate funds to make contributions to the campaign of a candidate for United States Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC).
Brian A. Benczkowski, Assistant Attorney General of the Department of Justice’s Criminal Division; Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; and James Robert Brown, Jr., Special Agent in Charge of the Federal Bureau of Investigation’s Louisville Field Office, made the announcement.
After two hours of deliberations following a five-week trial, the jury convicted Lundergan of one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC, and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction. The jury convicted Emmons of one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements, and two counts of causing the falsification of documents with the intent to obstruct and impede.
According to the evidence presented at trial, Lundergan used the funds of S.R. Holding Company, Inc. (S.R. Holding), a company he owned, to pay for services provided by consultants and vendors to a campaign for a United States Senate seat in the 2014 election cycle. The candidate for this seat was Lundergan’s daughter, Alison Lundergan Grimes. The evidence established that Lundergan caused the issuance of a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls, and campaign consulting, between July 2013 and December 2015.
The corporate contributions also included monthly payments from S.R. Holding to Emmons and his company during this period. Emmons provided services to the campaign and sought and received compensation from Lundergan and S.R. Holding. Emmons also used the funds of his corporation, Emmons & Company, Inc., to pay other vendors and a campaign worker for services rendered to the campaign. Those services included recorded telephone calls, technological support services, and other campaign-related expenses.
“The jury’s verdict reinforces the fundamental principle that rules apply to everyone,” said United States Attorney Robert M. Duncan, Jr. “The defendants' actions were deliberately designed to evade reporting requirements that serve to protect the integrity and transparency of federal elections. Stated simply, they knew what they were doing was wrong. This prosecution would not have been possible without the dedicated work of the trial team and all our law enforcement partners.”
The evidence established that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments caused the campaign unwittingly to file false reports with the FEC because the reports failed to disclose the source and amount of the corporate contributions.
“Fairly and honestly selecting our country's leaders is at the very foundation of our democracy, and the integrity of the system must be protected,” said James R. Brown, Jr., Special Agent in Charge Louisville Field Office. “Today's conviction should serve notice that FBI Louisville and the U.S. Attorney's Office are fully committed to investigating and prosecuting those who wish to corrupt the election process.”
The United States was represented by Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith and Deputy Chief Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Lundergan and Emmons will appear for sentencing on January 22, 2020. They each face up to 5 years in prison for the conspiracy conviction, each corporate campaign contribution conviction, and each false statement conviction; up to 20 years in prison for each obstruction conviction; and a maximum fine of $250,000 per conviction. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing the sentences.
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Twice-Removed Mexican National Is Sentenced to 10 Years in Prison for Trafficking MethamphetamineRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Adolfo Figueroa-Almanza, 32, of Mexico, was sentenced to 120 months in prison and five years of supervised release on charges of possession with intent to distribute methamphetamine, and illegal reentry by an aggravated felon. U.S. District Judge Robert J. Conrad, Jr. presided over the sentencing.
According to court documents and today’s sentencing hearing, on April 27, 2018, law enforcement in Union County attempted to conduct a traffic stop of the vehicle Figueroa-Almanza was driving. Figueroa-Almanza did not stop, and sped away in an attempt to evade law enforcement. Figueroa-Almanza was arrested shortly thereafter, after he tried to flee on foot. Court records show that, at the time of his arrest, Figueroa-Almanza was found to be in possession of approximately 898 grams of methamphetamine. Court records also show that Figueroa-Almanza was previously deported or removed from the United States on December 8, 2015, and again on March 24, 2017.
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In a separate case, Judge Conrad also sentenced today Marco Pimentel De La Cruz, 33, of Mexico, to 24 months in prison. According to court records, on September 4, 2018, law enforcement determined that De La Cruz illegally possessed a SCCY Industries LLC model CPX-2 9 mm caliber handgun, and that he produced or attempted to produce a false identification document. In December 2018, De La Cruz pleaded guilty to unlawful possession of a firearm by a felon and production of a fraudulent identification document.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte for their investigation of both cases, and commended the Union County Sheriff’s Office for their assistance with the investigation of Figueroa-Almanza.
Assistant U.S. Attorney Steven Kaufman is prosecuting the case against Figueroa-Almanza. Assistant U.S. Attorney Kenneth Smith is handling the prosecution against De La Cruz.
Truck Driver Pleads Guilty to Unlawfully Dumping 3,000 Gallons of Diesel Fuel, Prompting Evacuation of Elementary SchoolRead the Press Release
ALBANY – The driver of a diesel fuel truck who dumped thousands of gallons of diesel fuel onto land draining into a Thomasville, Georgia creek in 2018, shutting down a school and causing a federally-led clean-up, entered a guilty plea for his crime in federal court Tuesday, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Jaron Coleman, 40, of Oakville, Georgia, pleaded guilty to one count of Unauthorized Discharge of Oil in the Waters of the United States on Tuesday, September 10, 2019 before U.S. District Judge Louis Sands. Mr. Coleman’s sentencing date has not been scheduled.
According to the Statement of Fact entered in Court, on April 19, 2018, Mr. Coleman admitted that he dumped approximately 3,000 gallons of fuel on the ground near a gas station in Thomasville, Georgia after he realized he had loaded the wrong product for a delivery in Pelham, Georgia. Mr. Coleman, who was working for Eco Energy, did not have any permit or authorization to discharge the diesel fuel. The diesel fuel dumped on the ground migrated into an adjacent storm water drainage system that flows directly into a creek. The unnamed creek is a tributary of Good Water Creek which flows into Oquina Creek and then into the Ochlockonee River, a traditionally navigable water of the United States, and protected by the Clean Water Act. Under the Clean Water Act, diesel fuel is considered “oil” and the amount discharged was a harmful quantity. The discharge caused the Environmental Protection Agency (EPA) to engage in a costly clean-up and caused the evacuation of Garrison Pilcher Elementary School in Thomasville, Georgia on the same day as the incident, after school officials discovered a large amount of diesel fuel had swelled in ditches around the school.
“Illegal dumping into our waterways damages one of our most precious resources. Its harmful repercussions flow well beyond the confines of the initial dump site,” said Charlie Peeler, the U.S. Attorney. “We want the public to know that dumping is illegal and can carry serious consequences, including federal prosecution. I want to thank the EPA for its efforts to quickly respond to, investigate and clean up this mess.”
“The illegal discharge of fuel can threaten human health and damage the environment,” said Andy Castro, Special Agent in Charge of EPA's criminal enforcement program in Georgia. “EPA and our law enforcement partners are committed to enforcing environmental laws to protect our communities.”
The case was investigated by the EPA. Assistant U.S. Attorney Robert McCullers is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Three Men Sentenced for the 2012 Bronx Murder of Brian GrayRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SEAN PETER, a/k/a “Huggie,” JASON CAMPBELL, a/k/a “Holiday,” a/k/a “Fish,” and STEVEN SYDER were sentenced today for the murder of Brian Gray on October 2, 2012. PETER was sentenced to 23 years in prison, CAMPBELL was sentenced to 23 years in prison, and SYDER was sentenced to 20 years in prison. The defendants were convicted following a six-day jury trial in December 2018 before United States District Judge Naomi Reice Buchwald, who imposed today’s sentences.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As the evidence at trial established, the defendants murdered Brian Gray in cold blood and injured two others. Now, as a result of the jury’s verdict, and the extraordinary efforts of our law enforcement partners, the defendants will spend decades in prison for their heinous
According to the evidence introduced at trial:
On October 2, 2012, CAMPBELL and SYDER spotted Brian Gray and his friends at a neighborhood bodega in the Bronx. CAMPELL and SYDER soon met up with PETER, who had confronted Gray weeks earlier during an attempted drug robbery. The defendants traced the path of Gray and his friends and went to PETER’s residence where they armed themselves with guns stashed in a trash can outside. The defendants then ambushed Gray and his friends outside a residence on Barker Avenue and opened fire, fatally shooting Gray and injuring two others.
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In addition to their prison sentences, PETER, 36, CAMPBELL, 33, and SYDER, 36, all of the Bronx, New York, were each sentenced to three years of supervised release.
Mr. Berman praised the investigative efforts of the Violent Crime Task Force of the Federal Bureau of Investigation and the New York City Police Department. Mr. Berman also thanked the Teaneck Police Department for their assistance with the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sagar K. Ravi, Jacqueline C. Kelly, and Christopher J. Clore are in charge of the prosecution.
Three Defendants Sentenced to over 33 Years Combined for Conspiracy to Distribute Methamphetamine in Fort Smith, ArkansasRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that three individuals were sentenced by the United States District Court for Conspiracy to Distribute Methamphetamine in the Fort Smith, Arkansas area. The Honorable P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, on November 30, 2018, at approximately 12:08 p.m., A Fort Smith Police Department K-9 Officer conducted a traffic stop on a black Honda vehicle in the area of North 54th and Plum Street in Fort Smith, Arkansas, after identifying Bobby Sriprasert, as the driver of the vehicle. The officer had prior knowledge that Sriprasert had numerous warrants out of Fort Smith and Sebastian County. When the officer caught up with the Honda, it was backed into a driveway of a nearby residence and Sriprasert was standing outside the vehicle. The officer observed two individuals later identified as Omar Castanon and Cory Miller sitting in the black Honda. As the officer attempted to take Sriprasert into custody, he was able to see in plain view through the open window what he believed to be a firearm in the middle of back seat. While Sriprasert, Castanon, and Miller were taken into custody, a strong odor of burnt marijuana was omitting from inside the vehicle. A search of the vehicle resulted in the officer locating, approximately 360 grams of suspected methamphetamine inside a plastic gallon size zip lock bag, a marijuana cigarette (blunt), a Taurus, model Judge, .45/410 caliber, a Keltech, model P32, .32 caliber, a small amount of marijuana, digital scales and 6 baggies of suspected methamphetamine.
The suspected methamphetamine was sent to the DEA Southeast Laboratory for analysis and it was determined to be 294 grams of actual methamphetamine.
Defendants in this conspiracy received the following sentences:
Bobby Sriprasert, age 28, of Fort Smith, Arkansas was sentenced yesterday to 188 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Sriprasert was indicted in the Western District of Arkansas in December 2018 and plead guilty in March 2019.
Omar Castanon, age 23, of Fort Smith, Arkansas was sentenced yesterday to 120 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Castanon was indicted in the Western District of Arkansas in December 2018 and plead guilty in March 2019.
Cory Rashun Miller, age 30, of Fort Smith, Arkansas was sentenced today to 90 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Miller was indicted in the Western District of Arkansas in December 2018 and plead guilty in March 2019.
This case was investigated by the Fort Smith Police Department, Sebastian County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney’s Candace Taylor prosecuted the case for the Western District of Arkansas.
Three Charged in Scheme to Defraud Four Churches and A DeveloperRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Field Division of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of an indictment charging JEFFREY N. CROSSLAND, RAYMOND E. ROBINSON, and STEPHEN C. PARENTE with participating in a conspiracy to defraud four churches and a development company out of more than $3.5 million. CROSSLAND was arrested this morning at his home in Santa Monica, California, ROBINSON was arrested this morning at his home in Leander, Texas, and PARENTE was arrested this morning at his home in Buford, Georgia.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these three defendants devised a complex scheme to provide unconventional construction loans to churches and other development projects. But instead of helping to build houses of worship, the defendants allegedly built a house-of-cards, Ponzi-like scheme. Now all three have been arrested and face 20 years in prison for their crimes.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “This case highlights the fact that when money is involved scammers don’t care where it comes from, even if it comes from parishioners at local churches. There will always be a day of reckoning and today is that day.”
According to the allegations contained in the Indictment[1]:
CROSSLAND was a managing member of Crossland Capital Partners, LLC (“Crossland Capital”), a purported broker dealer focused on “real estate related capital raising,” located in Santa Monica, California. He also controlled JC Funding Group, also located in Santa Monica, which was represented to be a corporate entity overseeing various subsidiary lending companies under the JC Funding name. PARENTE controlled Eagle Capital Investment Partners, LP (“Eagle Capital”), a purported private financial advisory consultancy practice based in Georgia. ROBINSON was a minister, and was employed by a church-building company based in Missouri, ran Ray Robinson Ministries – a purported consulting firm for churches – and, along with PARENTE, had an ownership interest in Eagle Capital.
In early 2013, CROSSLAND, ROBINSON, and PARENTE began working together purporting to offer unconventional loans to churches and others for construction projects. They targeted victims, particularly churches, by capitalizing on ROBINSON’s role as a minister and builder of churches. ROBINSON was responsible for finding clients, PARENTE was responsible for reviewing clients’ financial profiles and assisting them through the loan application process, and CROSSLAND was supposed to provide the funding for the loans.
CROSSLAND, ROBINSON, and PARENTE perpetrated a scheme in which they defrauded clients (the “Victims”) by inducing them to enter into purported loan agreements, in which the Victims were required to deposit money into a “production account” or “escrow holding account” at an Ohio bank (the “Escrow Account”). Based on the defendants’ false representations that the deposited money would remain safe and secure in the Escrow Account, the Victims deposited a total of more than $3.5 million into the Escrow Account.
Contrary to the defendants’ representations, the money did not remain in the Escrow Account. Shortly after the Victims wire-transferred their deposit money, an attorney who controlled the Escrow Account (“Attorney-1”), acting on CROSSLAND’s instructions, transferred more than half of the deposit money to bank accounts controlled by an individual in Michigan (“Individual-1”) and an entity controlled by Individual-1. Individual-1 then transferred much of that deposit money to bank accounts outside the United States. Attorney-1 also transferred nearly $1 million of the deposit money to the bank account of a New Jersey law firm. Thereafter, approximately $400,000 was transferred to a bank account controlled by a second individual (“Individual-2”), and the remaining approximately $600,000 was used to pay Individual-2’s tax obligations and legal fees.
In order to perpetuate the scheme and conceal the fraud, CROSSLAND had Attorney-1 and Individual-1 transfer some of certain Victims’ deposit money to other Victims and falsely represent that these money transfers were loan draw payments. In actuality, CROSSLAND never had money to fund the Victims’ loans. In addition to providing certain Victims with funds the defendants claimed to be loan draw payments, in order to perpetuate the scheme and conceal the fraud, CROSSLAND and ROBINSON also participated in telephone conversations with, and sent emails to, the Victims, with the intention of (a) lulling them into believing that their loans would be funded and/or their deposits returned, and (b) preventing them from reporting their conduct to law enforcement authorities and/or taking legal action against them.
In this way, from April 2013 through March 2015, CROSSLAND, ROBINSON, and PARENTE fraudulently induced Victims to transfer more than $3.5 million to the Escrow Account. The purported loans were never funded and millions of dollars in deposits were lost.
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CROSSLAND, 63, of Santa Monica, California, ROBINSON, 67, of Leander, Texas, and PARENTE, 51, of Buford, Georgia, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service and Special Agents of the United States Attorney’s Office. Mr. Berman also thanked the Westchester County District Attorney’s Office, the Knoxville, Tennessee, field office of the Federal Bureau of Investigation, and the United States Attorney’s Office for the Eastern District of Tennessee for their assistance.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Margery B. Feinzig is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment charging the defendants and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Texas Man Charged with Failure to Register as a Sex OffenderRead the Press Release
NEW ORLEANS - U.S. Attorney Peter Strasser announced that JEREMY JASON SHIPMAN, age 30, of Bexar County, Texas, was charged Thursday, September 12, 2019 by grand jury indictment with one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
If convicted, SHIPMAN faces a maximum term of 10 years in prison and a $250,000.00 fine. He also faces a term of supervised release of between 5 years and life.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Marshals Service, the New Orleans Police Department, and the Bexar County Sheriff’s Office in this matter. He also extended his thanks to the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Tennessee and Alabama Women Sentenced for Bank and Mail FraudRead the Press Release
Jackson, Miss. –Shakedra Verleece Smith, of Nashville, Tennessee, and Sheri Youse a/k/a Sheri Johnson, of Birmingham, Alabama, were sentenced today by Senior U.S. District Judge Tom S. Lee for their roles in a conspiracy to commit bank and mail fraud, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans, and Shawn Wolfe, Resident Agent in Charge of the United States Secret Service in Mississippi.
Smith and Youse were each sentenced to 60 months’ probation with 6 months of home confinement. Smith was ordered to pay $40,000 in restitution and Youse was ordered to pay $55,000 in restitution.
Smith and Youse conspired with each other to apply for fraudulent automobile loans at Magnolia Federal Credit Union in Hinds County, Mississippi. The conspiracy spanned from March 2017 through October 2018. The fraudulent loan applications contained false information to include computer-generated numbers in lieu of their legitimate social security numbers and places of employment. Magnolia Federal Credit Union relied on the information provided in the automobile loan applications and processed loans in each of the defendant’s names. The false representations caused Magnolia Federal Credit Union to mail checks in amounts from $25,000 to $55,000 to what was later determined to be a fictitious automobile dealership. The defendants never intended to purchase or take possession of the vehicles that were referenced in the fraudulent loans.
The defendants were indicted on October 24, 2018. Youse pled guilty before Judge Lee on February 7, 2019, and Smith pled guilty on February 28, 2019.
“Those who defraud our financial institutions are defrauding all American taxpayers. I appreciate our law enforcement partners and prosecutor for catching these criminals and ensuring that our victims and taxpayers are protected,” said U.S. Attorney Hurst.
“This case makes clear that scammers who believe they can avoid accountability for their financial schemes are mistaken," said Jere T. Miles, Special Agent in Charge of ICE, Homeland Security Investigations in New Orleans. "HSI is committed to using its broad investigative authorities to investigate financial crimes and seek prosecution of offenders. We are appreciate of our partnership with the U.S. Attorney’s Office and U.S. Secret Service to successfully prosecute this case and will continue to work with our partners to identify and stop these crimes.”
The case was investigated by Homeland Security Investigations and the United States Secret Service. It was prosecuted by Assistant United States Attorney Erin Chalk.
Ten people indicted for their roles in a conspiracy in which the leader allegedly controlled large shipments of fentanyl stamped into pills, heroin, cocaine and other drugs from Mexico to Cleveland while using a cellular phone smuggled into prisonRead the Press Release
Ten people were indicted for their roles in a conspiracy in which the leader allegedly controlled large shipments of fentanyl stamped into pills, heroin, cocaine and other drugs from Mexico to Cleveland while using a cellular phone smuggled into his prison cell.
Named in the 17-count indictment filed in U.S. District Court in Cleveland are: Jose Lozano-Leon, 41, a Mexican citizen who was living in Painesville; Mario Hernandez-Leon, 31, of Mexico; Clemente Gutierrez-Meraz, 27, of Mexico; Lorne Franklin, 45, of Cleveland; Leevern Coleman, 49, of Bedford; Belen Orozco-Sigala, 36, of Painesville; Najee Amir Evans, 28, of Cleveland; Troy Pinnock, 47, of Cleveland; Damon Bybee, 60, of Garfield Heights, and Montez Vanburen, 38, of Cleveland.
All ten are charged with conspiracy to distribute controlled substances.
“The lead defendant is accused of running an international drug trafficking organization from a jail cell in Ohio,” U.S. Attorney Justin Herdman said. “He has come to this country illegally and allegedly made his living selling the same kinds of drugs that are killing our friends and neighbors. He is an importer of pain and will be prosecuted accordingly.”
“Arrests like these are saving lives," said DEA Detroit Field Division Special Agent in Charge Keith Martin. "In Ohio and other parts of the country, we are seeing an increase in these blue pills that at first glance appear to be legitimately produced oxycodone, but in fact are laced with fentanyl. By working collaboratively with our law enforcement partners, we are getting members of this drug trafficking organization off the streets where they can no longer push these lethal drugs into our communities.”
“Carfentanil is 10,000 times more powerful than morphine -- a speck the size of a grain of sand may be fatal,” Ohio Attorney General Dave Yost said. “Our communities are exponentially safer thanks to the work of this task force.”
According to the indictment and related court documents:
Lozano-Leon (“Lozano”) is alleged to be the leader of the Lozano drug trafficking organization. Lozano is indicted in October 2018 for illegal reentry. He was found to be in the United States on October 17, 2018, after having been deported in 2017. Lozano pleaded guilty to that charge earlier this year and was sentenced to 18 months in federal prison. He was incarcerated at the Northeast Ohio Correctional Center (NEOCC) in Youngstown.
Beginning at least in November 2018, Lozano allegedly used a smuggled, contraband cellular telephone to communicate with other defendants and manage the Lozano drug trafficking organization from his prison cell at NEOCC.
Lozano spoke frequently with the co-defendants and others to arrange shipments of drugs from Mexico and other locations to Cleveland, for distribution in Northeast Ohio. The group allegedly specialized in pills containing fentanyl and/or fentanyl analogues but which appeared to be prescription oxycodone, according to the indictment.
The group also allegedly trafficked heroin, methamphetamine, cocaine and marijuana, according to the indictment.
Hernandez-Leon (“Hernandez”) allegedly obtained drugs for the organization in Mexico and arranged for them to be smuggled into the United States and sent to co-conspirators in Northeast Ohio. He often traveled between Tijuana and San Diego to receive drug proceeds and deliver payments to suppliers in Mexico, according to the indictment.
Gutierrez-Meran (“Gutierriez”) operated from Mexico and arranged for shipments of drugs and transfers of money, according to the indictment.
Franklin received shipments of drugs in Cleveland arranged by Lozano, which he then sold the drugs in the Cleveland area. He also arranged for cash drug proceeds to be sent to Arizona, California and Mexico, according to the indictment.
Coleman, while incarcerated at a federal prison in Michigan, helped Lozano communicate with and direct actions of the co-conspirators, including Franklin, according to the indictment.
For example, shortly after midnight on April 11, 2019, Lozano and Gutierrez texted about a shipment of pills Gutierrez sent to a location in Cleveland. Minutes later, Lozano texted Franklin: “TOMORROW DA SKITTLES (fentanyl pills) ARRIVE AT (an address in Cleveland) AROUND NOON. WE GOTTA GET PAPER (money) ASAP SO WE CAN PAY EVERYBODY UP,” according to the indictment.
Later that day, Lozano and Franklin discussed via text the arrival of 5,000 fentanyl pills and that they needed to pay $27,500 for the drugs, according to the indictment.
On April 29, 2019, Lozano and Hernandez spoke by phone. Lozano explained he had recruited a driver who entered the U.S from Mexico and would drive drugs from San Diego to Cleveland, according to the indictment.
Lozano, on April 26, 2019, had a discussion by phone with another person about how strong Lozano wanted the fentanyl pills to be on a scale of one to ten. Lozano requested the pills by about an eight or nine, stating he did not want any “issues” (overdoses), according to the indictment.
Franklin, on June 16, 2019, had a conversation with an unidentified woman who asked Franklin why he wanted to be near Union Avenue. Franklin responded: “I sell drugs out there on Union. I sell drugs. I make my money on Union. That’s [what] I do on Union.” He later continued, “I sell (expletive) drugs! I’ve been selling drugs since 1992! I’ve been [at] the same (expletive) spot since 1992,” according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Drug Enforcement Administration, Ohio Bureau of Criminal Investigation, U.S. Postal Inspection Service, U.S. Customs and Border Protection, Ohio State Highway Patrol, Cleveland Heights Police Department, Lake County Narcotics Drug Task Force, Cleveland Division of Police, Euclid Police Department, Cuyahoga County Sheriff’s Department, U.S. Marshal Service and Northeast Ohio Correctional Center. It is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking, money laundering and violent criminal organizations operating domestically and internationally. The principle mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, money laundering and violent criminal organizations and those primarily responsible for the nation’s drug supply.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Stony Brook University Professor Indicted for Stealing over $200,000 in Cancer Research FundsRead the Press Release
Geoffrey Girnun, an Associate Professor in the Department of Pathology and Director of Cancer Metabolomics at the Renaissance School of Medicine at Stony Brook University (“SBU”) was charged in a seven-count indictment unsealed today with theft of state and federal government funds, wire fraud and money laundering. Girnun allegedly submitted fraudulent invoices for research equipment to SBU from sham companies he created to conceal his theft of funds from cancer-related research grants issued by the National Institutes of Health (“NIH”) and SBU. Girnun was arrested this morning and is scheduled to be arraigned this afternoon in federal court in Central Islip before United States Magistrate Judge Arlene R. Lindsay.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special-Agent-in-Charge, Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the charges.
According to the indictment, in or about 2013 and 2017, Girnun formed shell companies Atlas Metabolomics, LLC (“Atlas”) and Empyrean Biosciences, LLC (“Empyrean”), which purportedly provided research items and equipment for the defendant’s cancer-related research projects. Girnun then submitted fraudulent electronic invoices to SBU for payment to the companies for equipment, goods and services that were never received or provided. SBU used NIH and SBU grant funds to pay the shell companies over $200,000. Girnun transferred the NIH and SBU grant funds into his personal bank accounts and used the funds for personal expenses, including payments toward the mortgage on his home.
“Professor Girnun’s alleged theft of federal and state grant funds earmarked for cancer research can be explained in two words: pure greed,” stated United States Attorney Donoghue. “He will now be held to account in a federal courtroom.”
“As millions of Americans place their faith in programs established to fund cancer-related research, Geoffrey Girnun, a professor, allegedly siphoned money from grant funds established for this very purpose,” stated FBI Assistant Director-in-Charge Sweeney. “While people continued to suffer from their illnesses, Girnun made payments toward his personal mortgage with the money he stole. His conduct is despicable, and it won’t be tolerated.”
“Taxpayers fund medical research with the hope that promising scientific breakthroughs will result in much-needed treatments and cures for patients. Because the money for medical research is limited and the need for scientific advances is great, it’s incredibly important to clamp down on those who would steal such grant money for personal gain,” stated HHS-OIG Special Agent-in-Charge Lampert. “Professor Girnun will face the consequences of his actions.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Girnun faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Erin E. Argo and Madeline O’Connor are in charge of the prosecution.
The Defendant:
GEOFFREY GIRNUN
Age: 48
Woodmere, New YorkE.D.N.Y. Docket No. 19-CR-416 (DJH)
St. Louis Man Indicted for Robbing the St. Louis Community Credit UnionRead the Press Release
St. Louis, MO –Shayne McKee, 27, of St. Louis, MO, was indicted today on three felony counts including bank robbery, brandishing a firearm during a crime of violence, and felon in possession of a firearm stemming from the armed robbery of the St. Louis Community Credit Union located at 7345 West Florissant Avenue in Jennings, Missouri.
According to the indictment, on May 5, 2018, McKee and an accomplice entered the St. Louis Community Credit Union on West Florissant Avenue in Jennings, Missouri. Once inside, McKee announced a robbery, pulled a gun on bank employees, and demanded money. Ultimately, McKee and his accomplice left with U.S. currency belonging to and in the custody of the credit union.
If convicted, the charge of bank robbery carries a maximum penalty of 20 years in prison and a $250,000 fine; felon in possession carries a maximum sentence of 10 years in prison and a $250,000 fine; and brandishing a firearm in furtherance of a crime of violence carries a mandatory minimum sentence of seven years in prison to be served consecutively to any other sentence imposed and a fine of $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation and the Saint Louis County Police Department are investigating this case.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Charles Man Sentenced to 20 Years for Distributing Heroin that Resulted in DeathRead the Press Release
St. Louis, MO – Anthony Marion, a/k/a “Bird,” 36, of St. Charles, Missouri, was sentenced to 240 months in prison for heroin distribution that resulted in death from the use of such heroin. Marion appeared today before the Honorable Rodney W. Sippel.
According to court documents, co-defendant Lauren Martinez agreed to provide two individuals with heroin on February 26, 2016. She contacted her source, Marion, who met Martinez in the parking lot of a White Castle restaurant in St. Charles, Missouri. There, Marion provided heroin to Martinez, who then provided it to the victim. At the time she distributed the heroin, Martinez described it as “strong” and cautioned the victim to be careful. During a later interview, Martinez admitted that she knew multiple people who had overdosed on heroin.
Despite learning of the individual’s death, Martinez and Marion continued to distribute heroin in the subsequent weeks and months. As part of the on-going investigation into the heroin-related death, investigators arranged and made a controlled purchased of heroin from Marion and Martinez in March 2016. On May 9, 2016, Marion was arrested for possession of heroin and a firearm.
Marion pleaded guilty to one count of distributing heroin resulting in death in February and Martinez pleaded guilty to one count of heroin distribution in February and is scheduled to be sentenced on September 13.
The O’Fallon Police Department and the St. Charles County Regional Drug Task investigated this case.
Springdale Man Sentenced to 27 Years in Federal Prison for Sexual Exploitation of A ChildRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Forrest Hittle, age 35, was sentenced today to 327 months in federal prison without the possibility of parole followed by 25 years of supervised release on one count of Sexual Child Exploitation. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in early November of 2018, the mother of a 12 year old female reported to the Springdale Police Department that Forrest Hittle had sexually molested her daughter and took pictures of the abuse. During a forensic interview, the minor disclosed multiple instances of sexual abuse by Hittle. In response, law enforcement obtained a search warrant for Hittle’s cellular phone and computers. A forensic examination of his phone revealed a sexually explicit image of the minor. Hittle was subsequently arrested for Rape. He was later indicted on federal charges and pleaded guilty in March 2019.
This case was investigated by the Springdale Police Department, Homeland Security Investigations, and the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.