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11 September 2019
Sioux City Man Sentenced to Federal Prison for Distributing MethRead the Press Release
A man who distributed 50 grams or more of actual methamphetamine was sentenced Thursday, September 5, 2019 to 10 years in federal prison.
Andrew Karlos Orellana, age 40, from Sioux City, Iowa received the prison term after a guilty plea to one Count of distributing 50 grams or more of methamphetamine.
In a Plea Agreement, Orellana admitted to distributing a quarter pound of methamphetamine for $3,200.
Orellana has an extensive criminal history including Theft, Possession of Marijuana, Criminal Trespass, and Assault in the Second and Third Degree, Burglary in the Third Degree, Operating a Vehicle while Intoxicated, Public Intoxication, and Possession of Methamphetamine.
Orellana was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Orellana was sentenced to 120 months’ imprisonment and fined $100. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Orellana is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by Sioux City Police Department and the Tri-State Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4007.
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Second Person Admits to Defrauding Dr. Pepper of over $1 MillionRead the Press Release
HOUSTON – A 53-year-old Houston man has pleaded guilty to conspiracy to commit mail fraud for his participation in a scheme to defraud Dr. Pepper Snapple Group Inc. (DPSG), announced U.S. Attorney Ryan K. Patrick.
Joseph A. Isaac admitted to participating in the scheme with Anna Maria Sites, 42, of Friendswood, from 2010 through Feb. 17, 2015, by not paying rebates to those who had requested them.
Isaac was the majority shareholder of FulFill Plus Inc., which administered the DPSG rebate campaigns. The rebates included returned bottle caps or for switching to DPSG brand drinks in restaurant/convenience store soda dispensers. DPSG paid FulFill to administer those campaigns.
Isaac admitted the fraud caused a loss to DPSG of $1,058,445.
U.S. District Judge Gray Miller will impose sentencing Dec. 4, 2019. At that time. Isaac faces up to five years in prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Second Garrard County Man Sentenced to 60 months for Tax FraudRead the Press Release
LEXINGTON, Ky. – Warren Griffin, II, 50, of Lancaster, was sentenced to 60 months in federal prison Wednesday by United States District Judge Karen K. Caldwell for taking part in a $15 million employment tax fraud scheme.
Griffin will begin serving his new sentence after he finishes a 37-month term, from a 2018 conviction in the Southern District of Illinois, for being a felon in possession of a firearm. He must also pay the Internal Revenue Service (IRS) $2.8 million in restitution. Upon release from prison, Griffin will be on supervised release for three years.
According to his plea agreement, Griffin recruited and paid associates to open staffing companies and bank accounts, whose primary purpose was to hide from the IRS the fact that businesses run by Griffin and his co-defendant, Clarence Michel, Jr., had failed to pay $14,671,184 in owed federal payroll taxes. Griffin obtained $2,118,584 of that money. During this time, Griffin also underpaid his personal federal income taxes by $700,428.
Michel had previously pleaded guilty and been sentenced to 71 months in federal prison and ordered to pay over $19 million in restitution.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and William Chung, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, jointly announced the sentence.
The investigation was conducted by the Internal Revenue Service-Criminal Investigation. The United States was represented by Assistant U.S. Attorney Dmitriy Slavin.
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Seafood Processor Pleads Guilty to Selling Foreign Crab Meat Falsely Labeled as Blue Crab from USARead the Press Release
WILMINGTON, NORTH CAROLINA – Capt. Neill’s Seafood, Inc. of Columbia, North Carolina, pleaded guilty today in federal court in New Bern, North Carolina, on charges that the company falsely labeled millions of dollars’ worth of foreign crab meat as “Product of USA,” announced G. Norman Acker, III, Acting United States Attorney for the Eastern District of North Carolina, under authority conferred by 28 U.S.C. § 515.
“Seafood mislabeling is consumer fraud that undermines efforts of hardworking, honest fisherman and the free market by devaluing the price of domestic seafood,” said Acting United States Attorney G. Norman Acker III. “In this case, the fraudulent scheme artificially deflated the cost of domestic blue crab and gave Capt. Neill’s Seafood an unacceptable economic advantage over law-abiding competitors.”
“Seafood fraud and mislabeling can affect the economic value of our domestic fisheries,” said Logan Gregory, Deputy Director of the U.S. Department of Commerce’s National Oceanic and Atmospheric Administration Office (NOAA) of Law Enforcement. “Our office is committed to investigating these crimes to help ensure the economic value and sustainability of our fisheries.”
According to information in the public record, Phillip Carawan was the owner, President, and Chief Executive Officer, of Capt. Neill’s Seafood, Inc., a North Carolina company engaged in the business of purchasing, processing, packaging, transporting, and selling seafood and seafood products, including crab meat from domestically harvested blue crab. Carawan previously pleaded guilty to a one-count information charging him and Capt. Neill’s with substituting foreign crab meat for domestic blue crab and, as part of his plea, Carawan admitted to falsely labeling more than 179,872 pounds of crab meat with a retail market value of $4,082,841. The falsely labeled crabmeat was then sold primarily to wholesale membership clubs, but also to other retailers.
As part of its guilty plea, Capt Neill’s Seafood admitted that the company could not and did not process sufficient quantities of domestic blue crab to meet customer demands. To make up the shortfall, the company used foreign crab meat to fulfill customer orders. During the periods when the company did not have a sufficient supply of domestic crab, Capt. Neill’s Seafood purchased crab meat (not live crabs) from South America and Asia. The company further admitted that beginning at least as early as 2012, and continuing through June 16, 2015, company employees repacked foreign crab meat into containers labeled “Product of USA,” which Capt. Neill’s then sold to customers as jumbo domestically harvested blue crab.
As part of its plea agreement, Capt. Neill’s Seafood agreed to a criminal fine of $500,000; to pay restitution to recipients of the mislabeled crabmeat; to develop and implement a compliance program; and to be debarred from any federal contracts during the term of probation. The parties will request that the company be placed on probation for a term of five years, the maximum sentence authorized for a corporate defendant for the charge. In order to ensure payment of all monetary penalties, Capt. Neill’s Seafood’s sister corporation, Capt. Charlie’s Seafood, agreed to serve as a guarantor.
As part of the plea agreements entered into by Carawan and Capt. Neill’s, restitution will be made to persons whom the government confirmed purchased Capt. Neill’s jumbo crab meat between 2012 and June 16, 2015. For individuals who wish to see whether they qualify for restitution and for further information on the prosecution, please visit the following site: https://www.justice.gov/usao-ednc/captneillsseafoodvictiminformationpage
This case was part of an ongoing effort by the Department of Commerce’s National Oceanic and Atmospheric Administration Office of Law Enforcement, in coordination with the Food and Drug Administration, and the Department of Justice, to detect, deter, and prosecute those engaged in the false labeling of crab meat.
The guilty plea took place before U.S. Magistrate Judge Robert T. Numbers, II in Wilmington, North Carolina. Sentencing will take place in January 2020. The maximum sentence for falsely labeling crab meat by a corporation is five years’ probation and a fine of up to twice the gross gain of the offense, which in this case, is $8,165,682.00
This prosecution is being handled by jointly by the U.S. Attorney’s Office for the Eastern District of North Carolina and Justice Department’s Environmental Crimes Section. The government is represented by Senior Litigation Counsel Banumathi Rangarajan and Trial Attorney Gary N. Donner.
Sanford Resident Sentenced to More Than Four Years for His Role in Fraud Schemes Targeting SeniorsRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Rohan Brown (41, Sanford) to four years and three months in federal prison for mail fraud, wire fraud, and aggravated identify theft related to his participation in two fraud schemes.
Brown had pleaded guilty on July 3, 2018. On September 10, 2018, he failed to appear for his sentencing hearing and absconded to Jamaica. He later self-surrendered to the U.S. Marshals Service.
According to court documents, between March 2014 and August 2016, Brown participated in two fraud schemes. He participated in a sweepstakes fraud scheme in which elderly victims were told they had won a sweepstakes but, in order to receive their winnings, they had to send money for “taxes” to Brown. In a second scheme, Social Security benefits were diverted into accounts opened in the name of multiple victims and sent to Brown’s address. Once Brown received the fraudulent debit cards for those accounts, he used them to purchase money orders or obtain cash. Brown’s specific role in both schemes was to receive mail containing victims’ money or fraudulent access devices (debit cards) loaded with Social Security benefits and, in turn, send a portion of the money to others in Jamaica. The cash and debit cards were sent to Brown’s home or another residence to which he had access.
During a search of Brown’s residence, law enforcement officers recovered documentation for fraudulent bank accounts and debit cards that had been opened in the names of multiple victims. As a result of the diversion scheme, the Social Security Administration suffered a loss of $135,377.80. Losses related to the sweepstakes scheme are still pending.
This case was investigated by the United States Postal Inspection Service, the Social Security Administration – Office of the Inspector General, the Seminole County Financial Crimes Task Force, with assistance from the U.S. Marshals Service. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
Raleigh Man Sentenced to over 12 Years' Imprisonment on Firearm and Drug ChargesRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge Louise W. Flanagan sentenced JESSE BERNALE STINES, JR., 27, of Raleigh to 151 months’ imprisonment, followed by 3 years of supervised release. On March 18, 2019, STINES pled guilty to one count each of possession of a firearm by a convicted felon and possession with intent to distribute crack cocaine.
The government’s evidence established that on August 28, 2018, a Raleigh Police Department officer was on patrol on N. King Charles Rd. in Raleigh when he saw a white BMW with what appeared to be illegal window tint and initiated a traffic stop. The driver of the BMW, identified as STINES, partially rolled down his driver’s side window, and the officer could immediately smell the strong odor of marijuana. At the same time, the officer saw a mason jar with marijuana residue in plain view in the passenger seat.
The officer informed the defendant that he would be doing a probable cause search of the car and asked the defendant if it contained anything illegal. The defendant stated that there was something in the car, then added that there was a firearm and that he was a convicted felon. Officers searched the car and found a loaded Smith & Wesson 9mm handgun on the floorboard of the rear passenger seat. Near the gun, officers found a baggie of crack cocaine and a digital scale.
The Court at sentencing concluded that STINES qualified as a career offender based on past state convictions, meriting an enhanced sentence. STINES’ prior convictions include a 2016 conviction for possession with intent to sell cocaine, 2014 convictions for possessing a firearm as a felon and possessing with intent to sell cocaine and marijuana, and a 2011 conviction for misdemeanor assault with a deadly weapon, all in Wake County District Court.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Jake D. Pugh represented the government.
Queens Man Pleads Guilty to Assaulting A Border Officer After Being Caught with Marijuana at the Peace BridgeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Adriano Roberto Nunez, 27, of Queens, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to forcibly assaulting, resisting, opposing, impeding, intimidating or interfering with a federal officer and causing bodily injury. The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that on June 3, 2019, the defendant was a passenger on a bus traveling from Canada into the United States at the Peace Bridge Pot of Entry. Nunez and other passengers exited the bus at a Customs and Border Patrol checkpoint in the United States for re-entry into the United States.
During a search of the defendant’s belongings, a CBP officer found gummy candies in a bag consistent with drug packaging. While a CBP officer performed a field test on the gummies, another CBP officer asked Nunez to place his phone and passport on the table. The defendant retrieved his passport and placed it on the table. Nunez also retrieved his phone but did not place it on the table, instead manipulated the phone with his hands. The CBP officer attempted to retrieve the phone from the defendant, and Nunez resisted. After the officer successfully gained possession of the phone, the defendant fled into another area of the building, with officers chasing after him. Nunez fled to an area with no exit, and officers caught up with him. The defendant resisted the officers by pushing and kicking at least one officer. The officer sustained bodily injury in the form of scratches and abrasions on his knee and elbow, as well as pain from being kicked.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for January 31, 2020, at 10:30 a.m. before Judge Vilardo.
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Postal Employee Sentenced to over Seven Years in Prison for Delivering Meth: Defendant is Part of Operation “Money Don’t Sleep”Read the Press Release
LITTLE ROCK—A letter carrier from West Memphis was sentenced Wednesday for his role in a methamphetamine conspiracy that federal authorities have charged as Operation "Money Don’t Sleep." Hayward Cleavon Shaw, 44, was sentenced to 90 months in federal prison by U.S. District Judge James M. Moody. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today’s sentencing.
Operation "Money Don’t Sleep," run by the Organized Crime Drug Enforcement Task Force, is an ongoing investigation focused on lowering violent crime that stems from the distribution of illegal drugs. The goal of the operation is to identify and dismantle multiple drug trafficking organizations that distribute cocaine and methamphetamine. The investigation was initiated in 2015 by the DEA Little Rock District Office and the West Memphis Police Department.
Shaw, while working as a postal employee, would assist drug distributors by helping them locate and divert packages. In particular, on January 27, 2017, a package was on its way to West Memphis from Moreno Valley, California. Law enforcement was tracking this package as part of their investigation. Once agents intercepted the package, DEA deployed a canine, who alerted to the presence of narcotics in the package. Agents obtained a search warrant, which revealed over 2500 grams of methamphetamine in the package.
The first phase of "Money Don’t Sleep" previously resulted in the arrests of 50 defendants in July 2017. With those drug traffickers removed, new distributors emerged to fill the void left in the drug market, leading to 22 more arrests in June 2019. Shaw was charged on July 11, 2017, with conspiracy to distribute methamphetamine and theft of mail by a postal employee.
Judge Moody also sentenced Shaw, who pleaded guilty to conspiring to distribute methamphetamine on April 11, 2019, to two years of supervised release following his term of imprisonment. The theft of mail charge was dismissed as part of Shaw’s plea agreement.
The investigation was conducted by the Drug Enforcement Administration, the United States Postal Inspection Service, the United States Postal Service Office of Inspector General, and the West Memphis Police Department.
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Orange Park Man Arrested and Charged with Offering Child Sex Abuse Images for Sale over the InternetRead the Press Release
Jacksonville, Florida – Antony Eugene Woody (31, Orange Park) has been arrested and charged by federal criminal complaint with advertising child pornography for sale using the internet. If convicted, he faces a mandatory minimum penalty of 15 years, and up to 30 years, in federal prison. Woody is currently detained pending a detention hearing scheduled for September 13, 2019.
According to the
complaint , in February 2019, the FBI in Boston received information that an individual there was using a particular social media application to distribute child pornography online. That individual was arrested, and agents identified another user, “imsoofreakyy,” who was offering child pornography for sale on the internet. Meanwhile, in Florida, the Clay County Sheriff’s Office (CCSO) had learned from the National Center for Missing and Exploited Children that the same user (“imsoofreakyy)” was using an email address to advertise for the sale images of children being sexually assaulted. Through further investigation, CCSO detectives identified this individual as Antony Eugene Woody.On March 22, 2019, law enforcement executed a search warrant at Woody’s residence. Woody was later located at a local supermarket. During an interview, Woody admitted that he had obtained images of child pornography from the internet, labeled these images with titles, prices, and his contact information, and then re-posted them using a social media app. He also admitted that online consumers responded to his advertisements intending to buy the images, and that he had received money for these sales using Venmo or CashApp. He further admitted that he had defrauded those individuals by refusing to send them the purchased image collections. A search of Woody’s cellphone revealed at least one video depicting the sexual abuse of a young child.
This case was investigated by the Clay County Sheriff’s Office, the Westbrook (Maine) Police Department, the Broward County Sheriff’s Office, and the Federal Bureau of Investigation in Boston and Jacksonville, with assistance from the National Center for Missing and Exploited Children. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio Man Sentenced for Traveling to Meet a Minor for SexRead the Press Release
CHARLESTON, W.Va. – A Logan, Ohio man was sentenced to prison for a federal sex offense, announced United States Attorney Mike Stuart. Donald E. Ward, 59, was sentenced to 36 months in prison for traveling in interstate commerce in order to engage in illicit sexual activity with a minor. Following his release from prison, Ward will serve a term of five years of supervised release after completing his prison sentence and will be required to register as a sex offender.
“Protecting West Virginia’s youth is a priority of my office,” said United States Attorney Mike Stuart. “These are absolutely egregious crimes. I will continue to focus the efforts of my office to protect our children and other vulnerable populations. Predators who seek to take advantage of those that are weaker or vulnerable, will be prosecuted to the fullest extent of the law.”
Ward previously admitted that in January 2019 he began communicating via a social media application and text message with a minor he believed to be a 14-year-old girl in Parkersburg, West Virginia. On February 13, 2019, Ward traveled from Ohio to Parkersburg in order to meet the minor to engage in sexual activity, including oral sex. Only then did Ward discover that the minor was actually an undercover law enforcement officer.
The West Virginia State Police, the West Virginia State Police Internet Crimes Against Children Task Force, the FBI Violent Crimes Against Children Task Force, and the Parkersburg Police Department conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Ohio Man Pleads Guilty to Holding for Sale or Dispensing Counterfeit ED PillsRead the Press Release
PITTSBURGH - A resident of Columbus, Ohio, pleaded guilty in federal court to a charge of holding a counterfeit drug for sale or dispensing, United States Attorney Scott W. Brady announced today.
Rahnon Carter, 39, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that on December 19, 2016, Carter was found holding for sale or dispensing 967 counterfeit Viagra pills and 120 counterfeit Cialis pills. Carter also accepted responsibility for holding for sale or dispensing 4,500 counterfeit Viagra pills on November 23, 2016, and 39 counterfeit Viagra pills and 120 counterfeit Cialis pills on December 15, 2016.
Judge Ambrose scheduled sentencing for January 9, 2020 at 10:00 a.m. The law provides for a total sentence of not more than one year in prison, a fine of not more than $1,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Food and Drug Administration – Office of Criminal Investigations, the United States Postal Inspection Service, and Homeland Security Investigations conducted the investigation that led to the prosecution of Rahnon Carter.
Niagara Falls Man Sentenced for His Role in Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Jones, a/k/a Tio, 56, of Niagara Falls, NY, who was convicted of conspiring to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, was sentenced to serve 90 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between October 2016 and September 29, 2017, the defendant distributed cocaine with various co-conspirators in the Buffalo/Niagara Falls area. On three occasions in August of 2017, defendant received a combined total of two and one-half kilograms of cocaine from his co-conspirators for the purpose of distributing it. During the course of the conspiracy, Jones regularly distributed at least one kilogram of cocaine per month on behalf of the organization for which he distributed. To date, two of Jones’ co-conspirators have been convicted, while charges remain pending against four others. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert.
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New York Woman Charged with Possession of Credit Card Manufacturing EquipmentRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Changa Bush (41, New York) with possession of credit card manufacturing equipment. If convicted, Bush faces a maximum penalty of 15 years in federal prison. Federal authorities arrested Bush on September 6, 2019. During the course of the court hearings, it was determined that Bush is currently on parole of out New York State for the crime of assault causing serious physical injury. Bush has been detained pending trial, which is set for November 4, 2019.
According to the
indictment , Bush possessed equipment that could be used to manufacture fraudulent credit cards.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service (Jacksonville Field Office) and the Flagler County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
New Orleans Man Pleads Guilty to Violations of Federal Firearms and Narcotics LawsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that DERRICK GROVES, age 22, of New Orleans, has pleaded guilty September 10, 2019 to federal firearms and narcotics violations.
According to court documents, on October 12, 2018 and January 25, 2019, DERRICK GROVES possessed with intent to distribute heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). DERRICK GROVES was also in possession of a firearm on those dates, in violation of Title 18, United States Section 924(c)(1)(A)(i).
The Court set sentencing in this matter for December 17, 2019. DERRICK GROVES faces a term of imprisonment of up to 20 years, per count, a fine of up to $1 million, and at least three years of supervised release for the narcotics charges. DERRICK GROVES also faces a minimum term of 5 years up to life imprisonment, to be served consecutively to any other term of imprisonment imposed, a fine of $250,000, and up to five years of supervised release for the firearms violations.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation New Orleans Violent Crimes Task Force, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
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National, State, Local and Tribal Government Officials Announce New Statewide Mississippi Human Trafficking Council to Combat This Violent CrimeRead the Press Release
WASHINGTON – Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division joined U.S. Attorney Mike Hurst, Southern District of Mississippi, U.S. Attorney Chad Lamar, Northern District of Mississippi, Commissioner Marshall Fisher, Mississippi Department of Public Safety, and Philip Gunn, Speaker of the Mississippi House of Representatives, today to announce the creation and launch of a new, statewide Mississippi Human Trafficking Council.
Building on the foundation established by Governor Phil Bryant’s Human Trafficking Task Force Report from 2015, as well as task forces from around the country, the Mississippi Human Trafficking Council’s mission will be to prevent trafficking, protect victims, and prosecute criminals using a victim-centered, collaborative, and multi-disciplinary model. The Council will be led by three Co-Chairs: (1) Susan Bradley, Assistant U.S. Attorney, Northern District of Mississippi; (2) Kathlyn Van Buskirk, Assistant U.S. Attorney, Southern District of Mississippi; and (3) Ashlee Lucas, Mississippi Human Trafficking Coordinator, Mississippi Department of Public Safety.
“The Department of Justice is proud to announce the formation of the Mississippi Human Trafficking Council, which will serve as a crucial component to ongoing efforts to secure justice for victims of sex and labor trafficking crimes,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This is the first statewide trafficking council, and it will help law enforcement more effectively prosecute criminals and protect the rights of victims. This is another strong step in the Department of Justice’s commitment to fighting violent crime and protecting the most vulnerable in our society.”
“Human trafficking is a crime against humanity, and the monsters who commit these crimes against our children and our fellow human beings will continue to face swift and certain justice in our district,” said U.S. Attorney Mike Hurst. “This Council will coordinate multiple entities and agencies, and help our citizens effectively battle this growing epidemic in our state. I want to thank our law enforcement, our prosecutors, and our governmental and non-governmental partners for stepping up to take this fight to the traffickers. At the end of the day, this is all about protecting victims, preventing trafficking and prosecuting the criminals.”
“We are so pleased to announce the launching of multiple regional human trafficking task forces throughout the state, Northern and Southern Districts,” said U.S. Attorney Lamar. “Not only are these task forces collaborative efforts by federal, state and local law enforcement, but also state service agencies and non-government service providers. The Human Trafficking Council and its committees, comprised of members from both Districts, will provide valuable direction and support.”
“The Mississippi Department of Public Safety is dedicated to building an effective Human Trafficking Division to combat those who prey upon, victimize and traffic others for sexual or labor purposes,” said Commissioner Marshall Fisher. “With the aid of the Human Trafficking Council, MDPS’s Human Trafficking Division has access to a team of state and federal resources to thwart these threats to our communities.”
“Strengthening and improving Mississippi’s human trafficking laws has been and continues to be one of my top priorities,” said Mississippi House Speaker Philip Gunn. “It’s important to me that we make the process work for these victims while we support those law enforcement personnel on the ground across our state who are on the front lines fighting human trafficking. I envision the Mississippi Human Trafficking Council being an important resource to complement our state’s five existing regional task forces by collaborating and offering assistance when and where needed,” said Mississippi House Speaker Philip Gunn.
- Steering Committee
The Council will have a Steering Committee, overseen by the Council Co-Chairs, and will be made up of the five subcommittee chairpersons along with the Council Co-Chairs. The Steering Committee will serve as the primary policy making body of the Council. The Steering Committee will discuss and propose recommendations for the Council, upon which the Co-Chairs will vote to approve or disapprove of such recommendations.
- Subcommittees
The Council will consist of five subcommittees and will focus on all forms of domestic and international human trafficking, to include commercial sex trafficking and labor trafficking, for the protection of both adult and minor victims. Each subcommittee chairperson will oversee the operation of each subcommittee, arranges logistics for meetings, keeps records of activities and issues, serves as a member of the Steering Committee and performs other duties as necessary for the efficient and productive operation of the Council.
The five subcommittees and chairpersons are:
- Outreach and Public Awareness Subcommittee
Chair: Mandy Davis, Mississippi Department of Public Safety
- Strategic Planning and Trafficking Protocol Subcommittee
Chair: Dr. Tamara Hurst, University of Southern Mississippi
- Policy and Legislation Subcommittee
Co-Chairs: Angela Cockerham, Mississippi House of Representatives; Lora Hunter, Mississippi Department of Public Safety
- Training Subcommittee
Chair: Paula Broome, Mississippi Attorney General’s Office
- Victim Service Subcommittee
Co-Chairs: Hollie Jeffery, Children’s Advocacy Center of Mississippi; Heather Wagner, Mississippi Department of Health
- Task Forces
The Council will also consist of small, regional Task Forces, made up of local, state, federal and tribal law enforcement, local prosecutors, and victim service providers, and will be led by an Assistant U.S. Attorney. These Task Forces will meet monthly and will share information, coordinate investigations, and discuss potential matters and active cases in preparation for prosecution.
The Department of Justice continues to fight human trafficking through investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of all victims of trafficking, and funding and providing domestic and international anti-trafficking programs.
Montgomery Man Sentenced to 72 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, AL. – On Wednesday, September 11, 2019, Cleddie Ferlisi Stone, 41, of Montgomery, Alabama, was sentenced to 72 months in prison for possession of a firearm by a convicted felon, announced United States Attorney Louis V. Franklin, Sr. There is no parole in the federal system.
On April 27, 2017, Stone had a violent encounter with an individual that was caught on surveillance cameras in a Montgomery neighborhood. The video showed that Stone confronted the victim while he was riding a bicycle on Greenville Street near Lee High School. During the confrontation, Stone punched, kicked and shot the victim with a handgun. The video also showed a homemade “zip gun” type device that was dropped by the victim early in the confrontation.
During the sentencing hearing, Stone stated that he and the victim had a disagreement the day before the attack and that the man had made threats against him and his family. However, the judge noted that the April 27th encounter could have been avoided all together and that during the attack Stone became what he claims he was fighting against, he became “violence out of control.” Stone has previous felony convictions and is prohibited from possessing a firearm.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Montgomery Police Department investigated the case, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorney Joshua J. Wendell prosecuted the case.
Missoula woman sentenced to 10 years for possessing meth for distributionRead the Press Release
MISSOULA—Missoula resident Tiffany Rose Ramirez, who admitted to methamphetamine trafficking charges, was sentenced today to 10 years in prison followed by five years of supervised release, U.S. Attorney Kurt Alme said.
Ramirez, 31, pleaded guilty in April to possession with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided.
The prosecution said in court documents that on March 17, 2018 in Lake County, Ramirez was driving a vehicle that was pulled over and later searched pursuant to a search warrant. The search led to the recovery of methamphetamine. Two confidential informants told law enforcement that they obtained meth from Ramirez.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by Homeland Security Investigations and the Northwest Drug Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Memphis Man Facing Federal Firearms Charge After Weekend Assault in Broadway Entertainment DistrictRead the Press Release
NASHVILLE, Tenn. – September 11, 2019 –Pasquala Deshun Walls, 30, of Memphis, Tennessee, was charged yesterday with being a convicted felon in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to the criminal complaint, Walls was the driver of a Chrysler 300 and was reported to be driving erratically and displaying a handgun as he drove through the downtown entertainment district in the early morning hours of September 7, 2019. The area was packed with pedestrians and vehicular traffic at the time. Metro Nashville police officers located the vehicle and ordered Walls out of the car, at which time he accelerated and began crossing traffic lanes and ramming other cars. Metro police officers continued their attempts to stop the car and clear pedestrians from its path. At one point, officers were forced to jump out of the way to avoid being struck and one officer was pulled to the ground by the vehicle. This officer fired two shots at the vehicle as it continued on Broadway for several blocks before Walls jumped from the vehicle and ran. Walls was then chased and captured by citizens and held until he was taken into police custody. A 9mm pistol with an extended magazine, loaded with 26 rounds of ammunition was recovered from the floorboard of Walls’ car.
Walls was previously convicted of felony controlled substance crimes in Shelby County Tennessee and is prohibited from possessing a firearm.
If convicted, Walls faces up to 10 years in prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and is being prosecuted by Assistant U.S. Attorney Rob McGuire.
A criminal complaint is merely an accusation and is not evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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McKeesport/Port Vue Heroin Dealer Sentenced to 15 Years in Federal PrisonRead the Press Release
PITTSBURGH, PA - A former resident of Port Vue, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 15 years (180 months), to be followed by 10 years of supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Court Judge Cathy Bissoon imposed the sentence on Jarran Bell, age 38.
According to information presented to the court, the investigation, which utilized Title III intercepts from December 2014 through April 2015, established the existence of a number of overlapping and interrelated drug distribution networks at work in the Western District of Pennsylvania and New Jersey. Bell and his girlfriend Krystle Barretto were living together during the investigation. Bell and Barretto maintained numerous other residences, which were used as stash houses. Amanda Santiago lived in one of those residences during the investigative period.
In April of 2015, Bell and Barretto orchestrated two large shipments of heroin from Patterson, New Jersey, back to the McKeesport/Port Vue area. On April 19, 2015, Santiago, a courier, transported approximately 500 bricks of heroin from Patterson, New Jersey back to McKeesport via taxi cab.
On April 20, 2015, several search warrants were executed. Agents seized the heroin transported by Santiago. Additionally, from the bedroom of Bell and Barretto, agents seized a loaded firearm, approximately five bricks of heroin and a money counter.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation led to the prosecution of Bell. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including the Pennsylvania Office of the Attorney General, Clairton Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Mason City Man Involved in Burglary Where Guns Were Stolen Sentenced to Federal PrisonRead the Press Release
A man who possessed numerous guns stolen in a burglary was sentenced September 10, 2019 to 10 years in federal prison.
Daniel Solano, age 33, from Mason City, Iowa, received the prison term after a guilty plea to one count of possession of a firearm by a felon.
In a plea agreement, Solano admitted to possessing seven firearms from May 12, 2017 to May 30, 2017 and committing a felony crime punishable by imprisonment for a term exceeding one year, specifically, Reckless Homicide in Cook County, Illinois on or about July 26, 2007.
On May 12, 2017, Solano and others broke into a Thompson, Iowa residence and stole seven guns.
Solano was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Solano was sentenced to 120 months’ imprisonment. Solano must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Solano is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by Iowa Division of Narcotics Enforcement, Mason City Police Department, and the Clear Lake Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3058.
Marshfield Woman Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Marshfield, Missouri, woman was sentenced in federal court today for her role in a conspiracy to distribute large quantities of methamphetamine.
Jami L. Deam, 35, was sentenced by U.S. District Judge M. Douglas Harpool to nine years in federal prison without parole.
On Feb. 6, 2019, Deam pleaded guilty to participating in a drug-trafficking conspiracy that lasted from Dec. 2, 2014, to Jan. 23, 2018. During the course of the investigation, law enforcement officers seized a total of 5.342 kilograms of methamphetamine from various co-conspirators.
Deam’s role in the conspiracy involved approximately 4.9 kilograms of pure methamphetamine as well as heroin. She transported drugs and delivered those drugs to the conspiracy’s leaders, co-defendants Christopher A. Jefferson, also known as “Big Al,” 46, of Springfield, and Donald R. Taylor, also known as “Dee,” 35, of Kansas City, Missouri. Deam admitted that she had traveled to Texas 10 times, to Arizona four times, to St. Louis, Missouri, numerous times, and to California one time to transport illegal drugs from those locations to Springfield for Jefferson and/or Taylor. Deam was not only a courier, according to court documents, but also sold drugs.
Jefferson pleaded guilty and was sentenced to 25 years in federal prison without parole. Taylor pleaded guilty and awaits sentencing.
Jefferson frequently used women to transport illegal drugs, including large quantities of methamphetamine in vehicles and smaller quantities of cocaine and heroin hidden inside of their vaginas. They were paid to drive to Texas, Arizona, or California to pick up methamphetamine and other drugs and transport them back to Springfield. Several women admitted they made multiple trips to acquire illegal drugs, sometimes in multi-kilogram quantities.
Co-defendants Davetta F. Hicks, 32, and Shawn B. Robinson, 48, both of Springfield, were arrested on Dec. 9, 2014, by Kingsville, Texas, police officers. Officers found a half-pound of methamphetamine in Hicks’s purse. Deam had joined them for the trip, but was arrested the day before for shoplifting at a Walmart store in Texas. They had stopped at the Walmart store to pick up a $3,300 money wire from Jefferson before purchasing drugs in Texas.
Hicks pleaded guilty and was sentenced to five years and 10 months in federal prison without parole. Robinson pleaded guilty and was sentenced to six years in federal prison without parole.
On one occasion, according to court documents, Deam and several conspirators traveled to California with a large amount of money to purchase methamphetamine. Once in California, they purchased 12 pounds of methamphetamine that was shipped to Springfield.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department, and COMET (the Combined Ozarks Multijurisdictional Enforcement Team).
Marion Man Pleads Guilty in Energy Efficiency Rebate SchemeRead the Press Release
The owner of a local energy efficiency company who defrauded a utility company by making false statements on rebate forms and paying a kickback to an employee of one of the utility’s contractors, pled guilty today in federal court in Cedar Rapids.
Dustin James Hutcheson, age 39, from Marion, Iowa, was convicted of one count of mail fraud and one count of money laundering. At the plea hearing, Hutcheson admitted that, from May 2017 through June 2018, he falsely represented to a utility company’s customers that Hutcheson’s company, Hutch Energy, LLC, could replace the customer’s current lighting at no cost to the customer on account of the utility company’s energy efficiency rebate program. In truth, Hutcheson and other Hutch Energy, LLC, representatives made false and fraudulent representations to the utility company on energy efficiency rebate forms and associated invoices about the amount of money the utility company’s customers had paid Hutch Energy, LLC, for replacement LED tubes. He also made further false and fraudulent representations to the utility company about the number of LED tubes that Hutch Energy, LLC, had sold to the customers of the utility company. Hutcheson also forged the signatures of the authorized representatives of the utility company’s customers on the rebate forms. By doing so, Hutcheson ensured that the utility company would mail a rebate check to the customer, for later transfer to Hutch Energy, LLC, because Hutcheson made it appear that the utility company’s customers had certified the truth and accuracy of the false and fraudulent representations on the rebate forms. Hutcheson also admitted at the plea hearing that he had paid an employee of one of the utility company’s contractors $1,400 as a kickback for referring the utility company’s customers to Hutch Energy, LLC.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Hutcheson remains in custody of the United States Marshal pending sentencing. Hutcheson faces a possible maximum sentence of 40 years’ imprisonment, a $1,500,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Linn County Sheriff’s Office and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-32.
Follow us on Twitter @USAO_NDIA.
Man from Artesia Sentenced to 1o Years in Federal Prison for Methamphetamine and Gun PossessionRead the Press Release
ALBUQUERQUE – Adalberto Chavez-Chavez, 36, of Artesia, N.M., was sentenced in federal court in Las Cruces yesterday to 10 years (120 months) in prison for possession with intent to distribute 50 grams or more of methamphetamine and carrying a firearm during and in relation to a drug trafficking crime.
Chavez-Chavez previously pleaded guilty to these offenses on April 29, 2019. In his plea agreement, he admitted possessing 264 grams of methamphetamine and two loaded handguns in his car when police stopped him for a traffic infraction in Carlsbad, N.M., on December 13, 2018.
The Drug Enforcement Administration investigated the case with the Pecos Valley Drug Task Force and the Carlsbad Police Department. Assistant U.S. Attorney Renee L. Camacho of the Las Cruces Branch Office prosecuted the case.
Local doctor and former pro football player indicted for illegitimate drug distribution and money laundering conspiracyRead the Press Release
ROME, Ga. – Atlanta-area doctor Victor Hanson and former professional football player Sedrick Hodge have been indicted with two other individuals for illegal distribution of prescription drugs, including opioids.
“Hanson allegedly issued numerous illegitimate prescriptions for drugs, including powerful opioid painkillers,” said U.S. Attorney Byung J. “BJay” Pak. “While Hanson prescribed these drugs without a legitimate medical purpose, Sedrick Hodge and other associates allegedly sold these drugs in communities like Cartersville.”
“Americans rely on healthcare providers, many of them Medical Doctors, to use their training to help patients and to ‘do no harm.’ Dr. Hanson violated the law and betrayed the responsibilities of his profession by prescribing controlled substances, to include opioids, outside the usual course of professional practice. In addition, former professional football player Sedrick Hodge sold illegitimate oxycodone pills from Dr. Hanson on the streets for cash,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “DEA, its law enforcement partners and the United States Attorney’s Office are committed to stopping unscrupulous medical professionals like Dr. Hanson from harming patients.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: Hanson is a licensed physician who operated a weight loss clinic in Sandy Springs, Georgia. However, he also allegedly prescribed large quantities of controlled substances, including opioids like oxycodone, and stimulants. Hanson accepted only cash or checks as payment.
The indictment alleges that Hanson prescribed these controlled substances irrespective of any legitimate medical purpose, outside the usual course of professional practice, and in inappropriate amounts and dosage combinations. He prescribed these drugs to individuals without conducting thorough medical examinations or—at times—any examinations at all.
Co-defendants Sedrick Hodge, Farrah Hodge, and Marcus McConnell obtained prescriptions for controlled substances from Hanson. Hanson also gave Sedrick Hodge prescriptions written to third parties, including McConnell, when those third parties were not present. In turn, Hodge allegedly sold oxycodone pills on the street for cash. On two separate occasions in October and November 2018, Sedrick Hodge sold oxycodone pills to a confidential source working with the DEA in Cartersville, Georgia.
The following four individuals were indicted on September 3, 2019 and charged with conspiring to distribute and dispense controlled substances outside the usual course of professional practice and without a legitimate medical purpose:
- Victor A. Hanson, M.D., 86, of Brookhaven, Georgia, is also charged with maintaining a premises for the purpose of distributing controlled substances, 14 individual counts of illegal drug distribution for specific prescriptions, including several written to undercover federal officers, and a money laundering conspiracy.
- Sedrick Hodge, 40, of Cartersville, Georgia, is also charged with six individual counts of possession with intent to distribute controlled substances, one count of distribution of controlled substances, and a money laundering conspiracy.
- Farrah Hodge, 42, of Cartersville, Georgia, is also charged with a money laundering conspiracy.
- Marcus McConnell, 35, of Adairsville, Georgia, is also charged with three individual counts of possession with intent to distribute controlled substances.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration, with assistance from the Bartow-Cartersville Drug Task Force, the Jonesboro Police Department, and the Sandy Springs Police Department.
This case is part of the U.S. Attorney’s Office’s Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), an initiative that targets individuals who illegally prescribe opioids and drug traffickers who also distribute these dangerous and addictive drugs.
Assistant U.S. Attorney John T. DeGenova is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Victor A. Hanson, M.D., 86, of Brookhaven, Georgia, is also charged with maintaining a premises for the purpose of distributing controlled substances, 14 individual counts of illegal drug distribution for specific prescriptions, including several written to undercover federal officers, and a money laundering conspiracy.
Las Vegas Tax Return Preparer Indicted for Preparing False Tax Returns, Aggravated Identity Theft and Wire FraudRead the Press Release
LAS VEGAS, Nev. - A grand jury in Las Vegas returned a superseding indictment today charging a tax return preparer with preparing and filing false tax returns, aggravated identity theft, and wire fraud announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, United States Attorney Nicholas Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
According to the indictment, King Isaac Umoren, was the owner and operator of Universal Tax Services, a Las Vegas tax preparation business. From 2014 to 2016, Umoren allegedly used his employees’ preparer tax identification numbers without their consent in order to prepare fraudulent income tax returns for his clients. The indictment also alleges that Umoren charged his clients hidden fees in addition to his tax preparation fee without their knowledge or consent.
If convicted, Umoren faces a maximum sentence of five years in prison on each of the false return counts, a maximum sentence of 20 years on each of the wire fraud counts, and a statutory mandatory sentence of two years on each of the aggravated identity theft counts. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Trutanich commended special agents of IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorney Sarah Kiewlicz and Assistant United States Attorney Patrick Burns, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.
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Las Vegas Tax Return Preparer Indicted for Preparing False Tax Returns, Aggravated Identity Theft and Wire FraudRead the Press Release
A grand jury in Las Vegas, Nevada, returned a superseding indictment today charging a tax return preparer with preparing and filing false tax returns, aggravated identity theft, and wire fraud announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to the indictment, King Isaac Umoren, was the owner and operator of Universal Tax Services, a Las Vegas tax preparation business. From 2014 to 2016, Umoren allegedly used his employees’ preparer tax identification numbers without their consent in order to prepare fraudulent income tax returns for his clients. The indictment also alleges that Umoren charged his clients’ hidden fees in addition to his tax preparation fee without their knowledge or consent.
If convicted, Umoren faces a maximum sentence of five years in prison on each of the false return counts, a maximum sentence of 20 years on each of the wire fraud counts, and a statutory mandatory sentence of two years on each of the aggravated identity theft counts. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation and TIGTA, who conducted the investigation, and Trial Attorney Sarah Kiewlicz and AUSA Patrick Burns, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Korean National Pleads Guilty to East Bay-Based Foreign Exchange Trading ScamRead the Press Release
OAKLAND – Jin K. Chung pleaded guilty in federal court in Oakland to money laundering, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The plea was accepted by the Honorable Jeffrey S. White, U.S. District Judge.
According to his plea agreement, Chung, 56, of Seoul, Korea, admitted he laundered money he obtained from a foreign exchange trading scam. Chung admitted that in 2003, he and codefendant Peter Son, 47, of Portland, Ore., started two companies, SNC Asset Management, Inc. and SNC Investments, Inc., both headquartered in Pleasanton, Calif. Chung admitted he falsely advertised both companies as highly successful in foreign exchange trading. Further, Chung promised potential investors they would receive annual investment returns of between 24% and 36%. Chung knew that these representations were false and made with the intention of attracting individuals to invest in the two companies. Chung acknowledged that hundreds of investors opened accounts and deposited money into the two companies based upon the fraudulent representations.
Chung and Son deposited the clients’ funds into bank accounts that the defendants controlled. While directing employees of the companies to send monthly statements to the investors that falsely reported accrued earnings, Chung regularly cashed checks or arranged wire transfers in amounts over $10,000 for his own benefit. Chung also transferred funds from the accounts to pay purported investment returns and redemptions to investors, to pay sales commissions and other expenses related to the scheme.
By October 2008, the defendants depleted the funds in the companies' accounts and closed both businesses without advance notice to employees or clients. Chung admitted that in the four months before closing the businesses, he transferred more than $630,000 from the businesses into his personal accounts.
In the aggregate, at least 400 victims invested and lost approximately $60,300,000 in the trading scheme during Chung and Son’s operation of SNC Asset Management, Inc. and SNC Investments, Inc.
On July 8, 2019, Chung was charged by information with a single count of engaging in monetary transactions in property derived from specified unlawful activity (money laundering), in violation of 18 U.S.C. § 1957. On Tuesday, September 3, 2019, Chung pleaded guilty to the charge.
Judge White scheduled Chung’s sentencing hearing for November 19, 2019, at 1:00 p.m. Chung faces a maximum statutory penalty of 10 years in prison and a fine of $250,000, or twice the amount of the criminally derived property involved in the transactions. The court also may order a term of supervised release, special assessments, forfeiture, restitution, and deportation. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
For his part in the scheme, Son pleaded guilty on April 9, 2010, to conspiracy to commit wire fraud and conspiracy to engage in monetary transactions with the proceeds of wire fraud, in violation of 18 U.S.C. §§ 1349 and 1956(h), respectively. On July 30, 2010, the Honorable D. Lowell Jensen, then-U.S. District Judge, sentenced Son to a prison term of 180 months.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez. The prosecution is the result of an investigation by the Securities and Exchange Commission, U.S. Commodities Futures Trading Commission, the FBI, and the IRS.
KC Man Shot by Police Officer Indicted for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who was shot by an Independence, Missouri, police officer as he attempted to strike the officer with his truck before leading officers on a high-speed chase, has been indicted by a federal grand jury for illegally possessing a firearm.
Isaiah Fulson-Dewberry, 27, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, Sept. 10. The indictment replaces a federal criminal complaint that was filed against Fulson-Dewberry on Sept. 3, 2019.
According to an affidavit filed in support or the original criminal complaint, two Independence, Missouri, police officers were dispatched to Pepperwood Apartments on Sept. 1, 2019, on reported prowlers. The officers arrived at the apartment complex in separate vehicles and approached from opposite directions. Fulson-Dewberry, driving a 2002 Chevrolet Avalanche (later determined to be stolen), pulled out of a parking space and began driving through the parking lot. When the first officer’s marked patrol vehicle approached, the affidavit says, Fulson-Dewberry put the truck in reverse and went back into the parking area, driving up onto the curb into the grass. The truck then drove forward and deliberately rammed the front end of the officer’s vehicle. Two passengers – a white female and a black male – ran from the truck and were never located. The truck backed up again, the affidavit says, and slammed into a parked truck, pushing it into another parked vehicle, and then rammed into the front of the officer’s vehicle a second time.
According to the affidavit, the truck backed up again, clipping the front end of the second officer’s patrol vehicle, and then went forward again, hitting the front of the patrol vehicle and pushing it. The officer was outside of his vehicle, the affidavit says, and Fulson-Dewberry swerved the truck at him. The officer, fearing for his life, fired 10 rounds from his duty weapon into the driver’s side of the truck.
The truck fled the apartment complex and a pursuit was initiated. The truck made it onto westbound 39th Street. The truck drove on the shoulder of the road, the affidavit says, passing vehicles at a high rate of speed and running red lights at busy intersections. The truck also entered into oncoming traffic, nearly striking two different eastbound vehicles head on. The truck proceeded onto southbound Lee’s Summit Road and attempted to get onto the ramp to westbound I-70, but was traveling too fast and spun out into the ditch just onto the ramp to westbound I-70 from Lee’s Summit Road.
Fulson-Dewberry got out of the driver’s side of the truck and threw a loaded Walther .22-caliber handgun into the grassy area near the truck. Fulson-Dewberry had a gunshot wound that entered his left calf and exited then entered into his right calf, where the bullet lodged. He was taken into custody without further incident and transported for medical treatment.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Fulson-Dewberry has prior felony convictions for possession of a controlled substance and theft of property.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Justice Department Hosts National Public Safety Partnership Symposium, Partners with U.S. Cities to Reduce Violent CrimeRead the Press Release
MEMPHIS – The Department of Justice today renewed its commitment to reducing violent crime in America, holding its third annual National Public Safety Partnership Symposium.
The National Public Safety Partnership provides a framework for enhancing federal support of state, local and tribal law enforcement officials and prosecutors as they investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking and gang violence.
"The National Public Safety Partnership is a hallmark program of this administration," said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Department’s Office of Justice Programs. "It effectively works to reduce violent crime, a priority of both Attorney General Barr and President Trump."
Jon Adler, Director of the Bureau of Justice Assistance – which oversees the partnership program – announced $28 million to provide training and technical assistance to designated partnership sites, as well as to support law enforcement-led and prosecution-based crime reduction efforts in cities across the nation. Funds will also support crime gun intelligence centers in eight sites across the country. These centers focus on the immediate collection, management and analysis of crime gun evidence, such as shell casings, in real time, in an effort to identify violent criminals, disrupt criminal activity and prevent future violence.
"These funds are just the tip of the spear to help law enforcement develop and implement innovative – and proven – strategies to help increase public safety," said Adler. "In coming weeks, the Justice Department will continue to announce funding awards to communities in support of law enforcement’s commitment to drive down violent crime, aid crime victims and improve justice systems."
This year’s symposium, which lasts through Sept. 11, brings together more than 400 law enforcement leaders, prosecutors and other officials representing 17 of 41 partnered cities across the U.S. Law enforcement officials from the tristate area surrounding Memphis are also attending.
In June, Attorney General William P. Barr announced the addition of 10 cities and counties to the National Public Safety Partnership, which provides advanced training and technical assistance to cities and counties with elevated rates of violent crime.
"The addition of 10 more partnered sites this year is another critical step in fulfilling President Trump’s commitment to reducing violent crime in America," said Adler. "The three-year engagement between the Department and each partnered city allows agencies to respond to the diverse needs within their jurisdictions by streamlining access to federal resources for those communities most affected by violent crime."
To date, the Justice Department has worked with more than 40 cities under the National Public Safety Partnership (PSP) program. Many participating cities have already seen dramatic reductions in violent crime. For example, in Memphis, carjackings decreased 43 percent year-to-date, from March 2018 to March 2019. Additionally, collaboration between the Memphis Police Department and the Federal Bureau of Investigation to process cold-case sexual assault kits resulted in the conviction of a sexual predator in May 2019 who was responsible for kidnapping and raping six women, and attempting to kidnap and rape a seventh, over a period of seven years.
"The U.S. Attorney’s Office for the Western District of Tennessee is proud to participate in the National Public Safety Partnership Initiative here in Memphis and Jackson, Tennessee," said U.S. Attorney Michael Dunavant. "PSP has allowed us to receive meaningful federal resources of law enforcement training and technical assistance in an innovative framework to enhance data-driven, evidence-based local strategies for violence reduction. The good work of the PSP team stakeholders, including the commitment to targeted enforcement by our federal, state and local law enforcement partners, has resulted in significant reductions in the violent crime rate in key categories, such as business robbery, carjacking and reported gun crimes. We are thankful for all of these resources from the Department of Justice, and we are committed to the continued effective use of these PSP tools to further reduce violent crime in the future."
Other PSP sites have achieved notable successes, as well. For example, New Orleans, Louisiana, ended 2018 with its lowest number of homicides since the early 1970s. In Milwaukee, Wisconsin, homicides declined in 2018 for a third straight year after hitting a peak in 2015.
In addition to local law enforcement and prosecutorial leaders from the participating PSP sites, components in attendance at this year’s symposium include: the Federal Bureau of Investigation; the Office of Community Oriented Policing Services; the Office of Justice Programs; the Office on Violence Against Women; the U.S. Attorneys’ Offices; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; and the U.S. Marshals Service.
The Justice Department created the National Public Safety Partnership and the Task Force on Crime Reduction and Public Safety in response to President Trump’s Feb. 9, 2017, Executive Order charging the agency with leading a national effort to combat violent crime. The Department announced the formation of the National Public Safety Partnership initiative in June 2017.
For more information about the PSP sites and the Justice Department’s work to reduce violent crime and enhance public safety, visit https://www.nationalpublicsafetypartnership.org.
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Jury Convicts South Texas Man for Transporting Illegal Undocumented Chinese Nationals Among OthersRead the Press Release
CORPUS CHRISTI, Texas – A federal jury has convicted a 49-year-old legal permanent resident from Donna for knowingly and intentionally conspiring to unlawfully transporting undocumented illegal aliens, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately one hour before convicting Federico Espinosa-Flores following a two-day trial.
During trial the jury heard that on Dec. 21, 2018, authorities arrested Federico Espinosa-Flores at the Border Patrol Checkpoint in Sarita.
At approximately 7:40 A.M., Espinosa-Flores drove a white Ford cargo van disguised as an adult daycare business and entered the primary inspection lane. At that time, authorities noticed him exhibiting signs of nervousness, such as avoiding eye contact and having trembling hands. Espinosa-Flores consented to a search of which resulted in the discovery of 10 undocumented aliens in the rear cargo area of the vehicle. Six were Chinese nationals. Two others were from
The defense attempted to convince the jury that authorities coached him on what to say in his recorded and detailed confession. They did not believe those claims and found him guilty as charged.
Senior U.S. District Judge John Rainey presided over the trial and set sentencing for Dec. 16, 2019. At that time, Espinosa-Flores faces up to 10 years imprisonment and a maximum $250,000 possible fine.
Previously released on bond, Espinosa-Flores was taken into custody following the verdict today where he will remain pending his sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Neel Kapur is prosecuting the case.
Judge Imposes 15-Year Sentence on Lansing-Area Felon in Possession of A FirearmRead the Press Release
Aaron Donquwe Perkins Sentenced to 180 months for Unlawfully Possessing a 9mm Pistol
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Chief Judge Robert J. Jonker of the Western District of Michigan sentenced Lansing-area resident Aaron Donquwe Perkins to 15 years in prison for possessing a firearm as a convicted felon. Perkins admitted possessing a Smith & Wesson 9mm pistol, despite having previous convictions for assault with a dangerous weapon and two convictions for delivery/manufacture of controlled substances, all contrary to Michigan law.
Mr. Perkins’ extensive criminal history subjected him to the enhanced penalties of the Armed Career Criminal Act, 18 U.S.C. § 924(e), under which a person who violates the federal felon in possession statute after having been convicted previously of three or more violent felonies or serious drug offenses must serve a mandatory minimum sentence of fifteen years.
“My office prioritizes the prosecution of offenders with prior violent felonies and drug trafficking crimes in their history,” stated U.S. Attorney Birge. “We will use every tool in our toolbox—like the Armed Career Criminal Act—to keep firearms away from dangerous felons like Mr. Perkins.”
Special Agent in Charge James Deir of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) noted: “As a multi-time convicted felon, Aaron Donquwe Perkins was provided multiple opportunities to turn his life around. Instead, he choose to return to a life of crime. In doing so, he put innocent lives in danger. With the help of our law enforcement partners, ATF remains vigilante in the effort to protect our communities from violent criminals.”
This case was investigated by the ATF and the Lansing Police Department and was prosecuted by Assistant U.S. Attorney Austin J. Hakes as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities in order to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
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Jefferson Parish Woman Pleads Guilty to Conspiring to Distribute Ketamine which Resulted in the Death of a Teenager whose Body was Found Floating in a Texas BayouRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that LEILANI ASPURIA, age 25, of Jefferson Parish, Louisiana, pleaded guilty today to conspiring to distribute ketamine which resulted in the death of a Slidell, Louisiana teenager. The eighteen year old’s dead body was found floating in a Texas bayou.
As described in court documents, ASPURIA, along with WILLIAM HARRISON FARRIS, age 39, and KACIE DOUCET, age 37, conspired to incapacitate the teenager with drugs so that he could be transported to law enforcement authorities in Texas. ASPURIA, FARRIS, and DOUCET did so in the hope of receiving free drugs from two large scale Texas-based methamphetamine dealers. These dealers, a married couple, had told their New Orleans customers that they wanted the teenager so they would not lose the $6000 bond they had posted for him months earlier.
ASPURIA faces a maximum prison sentence of 10 years, a possible fine of $500,000, and at least 2 years of supervised release. U.S. District Judge Jane Triche Milazzo set sentencing for ASPURIA on December 11, 2019. FARRIS pleaded guilty to the same charge and will be sentenced on October 23, 2019.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Houston Police Department, and the Drug Enforcement Administration. Assistant United States Attorneys Brandon S. Long and David Howard Sinkman are in charge of the prosecution.
Ipswich Man Sentenced to 60 Months for Unlawful Possession of FirearmsRead the Press Release
CONCORD - Daniel Laterowicz, 32, of Ipswich, was sentenced in federal court to 60 months in prison for possession of stolen firearms, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on December 10, 2018, members of the Salisbury, Massachusetts Police Department responded to a call of a possible car break-in. Salisbury officers later notified the Seabrook Police Department of a possible suspect in the area.
A Seabrook Police officer encountered Laterowicz walking northbound on Batchelder Road at approximately 2:44 am. The officer conducted a brief investigative stop of Laterowicz, during which a stolen handgun was recovered from the defendant’s breast pocket. Investigators followed additional leads to a hotel room in Hampton, where Laterowicz had been staying. Investigators obtained a state search warrant which they executed on December 13, 2018. The search led to the recovery of three firearms, including two shotguns that previously had been reported stolen by a Seabrook resident who had discovered them missing from his parked car on the morning of November 29, 2018.
Laterowicz is a convicted felon. It is unlawful for a person with a felony conviction to possess firearms.
Laterowicz pleaded guilty on May 29, 2019.
“In order to protect our communities from violence, it is vital to keep guns out of the hands of criminals,” said U.S. Attorney Murray. “Through Project Safe Neighborhoods, we work closely with our law enforcement partners to identify and prosecute felons who jeopardize public safety by carrying weapons.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Salisbury, Massachusetts Police Department, and the Seabrook and Hampton, New Hampshire Police Departments. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Inmate at Red Onion State Prison Convicted of Sending Threatening CommunicationsRead the Press Release
Abingdon, VIRGINIA – A jury in U.S. District Court in Abingdon convicted an inmate at Red Onion State Prison of sending threatening communications through the mail following the conclusion of a one-day jury trial, United States Attorney Thomas T. Cullen announced.
Randall J. Keystone, 55, was convicted yesterday of two counts of transmitting in interstate commerce a communication containing a threat to injure another person.
“Communicating threats of death or bodily harm is a serious federal crime and one that we will aggressively prosecute,” U.S. Attorney Cullen stated today. “I am grateful for the hard work of the U.S. Marshals Service and the Virginia Department of Corrections in bringing this defendant to justice.”
According to evidence presented at trial, Keystone, while incarcerated at Red Onion State Prison, sent a pair of threatening letters to the former state prosecutor who handled his case in the late 1990s. The former state prosecutor, who is now an Assistant United States Attorney in North Carolina, received one letter at his home and one at his office.
In both letters, written on or about January 11, 2017, Keystone wrote, “How’d you like someone to put a bullit [sic] in your head? How’d you like me to be the one to do it?”
The investigation of the case was conducted by the U.S. Marshals Service for the Western District of Virginia and Eastern District of North Carolina and the Virginia Department of Corrections. Assistant United States Attorneys Jennifer R. Bockhorst and Cagle Juhan are prosecuting the case for the United States.
Illegal Alien admits to reentry chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Omar Antonio Murillo-Bonilla, a citizen of Honduras, has admitted to an immigration violation, United States Attorney Bill Powell announced.
Murillo-Bonilla, age 32, pled guilty to one count of “Reentry of Removed Aliens.” Murillo-Bonilla admitted to reentering the country illegally after be removed twice before. The crime allegedly occurred in August 2019 in Jefferson County.
Murillo-Bonilla faces up to two 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.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the case on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Hobart Woman SentencedRead the Press Release
HAMMOND- Lucy Owens, 42, of Hobart, Indiana, was sentenced before District Court Judge Joseph S. VanBokkelen, announced U.S. Attorney Kirsch. Owens was convicted on 7 counts of wire fraud after 5-day jury trial that took place in May 2018.
Owens received a sentence of 57 months in prison, 1 year of supervised release and was ordered to pay 820,483.66 in restitution with $324,438.50 of that amount to be owed jointly and severally with co-defendant Kirk Stroh.
“The great work of the Hammond Police Department has brought this case to a successful conclusion with an order of restitution and significant prison time,” said U.S. Attorney Thomas L. Kirsch II. “The U.S. Attorney’s Office and law enforcement partners will continue to hold people accountable for their actions when they choose to take advantage of others.”
According to records in the case, between 2010 and 2015, Owens diverted over $800,000 from her employer, a Hammond-based freight services company, through two schemes to defraud. In one scheme, Owens used her position as the company’s accounts payable clerk to fraudulently pay over $460,000 in personal credit card bills from the company’s bank account. In the second scheme, Owens used her position as the administrator of the company’s diesel fuel card program to help two individuals obtain over $330,000 in unauthorized cash advances at truck stops. One of the individuals, Kirk Stroh, also from Hobart, Indiana, was a truck driver for a rival trucking company. Owens helped Stroh obtain over $290,000 in fraudulent cash advances at a truck stop in Lake Station, Indiana, in increments of $800 per day. Stroh, a co-defendant in the case, who previously pled guilty, split the proceeds with Owens. In addition to paying her personal credit card debt funds stolen from her employer, Owens used her portion of the stolen funds to pay for frequent family vacations, dining, clothing, jewelry, home improvements, and other items.
This case was investigated by the Hammond Police Department and handled by Assistant United States Attorneys Abizer Zanzi and Nathaniel Whalen.
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Hartford Man Sentenced to More Than 5 Years for Supplying Heroin to Southeastern CT Drug RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EDWIN DeJESUS, 48, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 64 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in 2018, the FBI, Norwich Police Department and other law enforcement agencies began investigating a drug trafficking organization that was distributing heroin, cocaine and crack cocaine in southeastern Connecticut. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, revealed that DeJesus supplied heroin to a codefendant who distributed the drug to his own customer in southeastern Connecticut.
DeJesus has been detained since his arrest on February 20, 2019. On March 5, a grand jury returned an indictment charging DeJesus and 12 other individuals with narcotics trafficking offenses. On May 31, DeJesus pleaded guilty to one count of conspiracy to distribute heroin.
DeJesus’ criminal history spans 30 years and includes a federal conviction for conspiracy to assault a federal officer. In March 1995, he was sentenced to 60 months of imprisonment for that offense.
This investigation is being conducted by the Federal Bureau of Investigation, Connecticut State Police and Norwich, Town of Groton and Waterford Police Departments, with the assistance of the FBI’s Baltimore Field Office, Baltimore Police Department and Delaware State Police. The case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and S. Dave Vatti.
Hartford Man Sentenced to Federal Prison for Illegally Possessing Loaded Semiautomatic RifleRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TORREN BOYD, 38, of Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 33 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded semiautomatic rifle.
According to court documents and statements made in court, on September 27, 2018, Boyd was arrested in Hartford after he was found in possession of a loaded Hi-Point, Model 995, 9mm rifle.
Boyd’s criminal history includes a federal felony conviction in the District of Vermont in 2007 for distributing crack cocaine. He was sentenced to 60 months of imprisonment for that offense.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Boyd has been detained since his arrest. On April 9, 2019, he pleaded guilty to possession of a firearm by a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
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 neighborhoods safer for everyone.
Harrisonburg Woman Pleads Guilty to Fatal Overdose DistributionRead the Press Release
Harrisonburg, VIRGINIA – Iza Mar Rosario-Cruzado, 31, of Harrisonburg, Va., pleaded guilty yesterday in U.S. District Court to one count of distributing and possessing with the intent to distribute a mixture of heroin and fentanyl. Rosario-Cruzado further admitted her distribution of this drug mixture resulted in an overdose death. United States Attorney Thomas T. Cullen made the announcement following the defendant’s guilty plea.
“Heroin laced with fentanyl is driving the opioid epidemic that has ravaged our district for the last several years,” U.S. Attorney Cullen stated today. “We will continue to work closely with our state and local partners to investigate and prosecute cases involving overdose deaths and hold dealers accountable under federal law.”
“This sentence is a great example of our efforts to keep our local communities safe from the spread of drugs. Heroin and fentanyl are extremely deadly substances and those who spread this poison across our cities, acting with blatant disregard for the lives of the people who live here, will not be tolerated,” said Special Against in Charge Jesse R. Fong of the U.S. Drug Enforcement Administration, Washington Field Division. “This case is a testament to the hard work DEA and our law enforcement partners do every day to keep these dangerous drugs out of the hands of our loved ones.”
According to court documents entered during yesterday’s hearing, on December 13, 2017, victim M.J.M. was found deceased following a heroin and fentanyl overdose. Investigators determined that the day prior, December 12, 2017, Rosario-Cruzado distributed a mixture of heroin and fentanyl to Richard Mansfield. Mansfield subsequently redistributed the same drugs to M.J.M., who ingested them, resulting in his overdose death.
On September 12, 2018, Mansfield pleaded guilty to one count of distributing a mixture of heroin and fentanyl.
At sentencing, scheduled for December 17, 2019, Rosario-Cruzado faces between 12-16 years in years in federal prison, as agreed to as part of her plea agreement.
The investigation of the case was conducted by the Drug Enforcement Administration, Virginia State Police, and Harrisonburg Police Department, with the assistance of Rockingham County Commonwealth’s Attorney Marsha L. Garst. Assistant United States Attorney Jeb Terrien is prosecuting the case for the United States.
Groveton Woman Sentenced to 87 Months for Participating in Interstate Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Katie Fysh, 33, of Groveton, was sentenced to 87 months in prison for participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, during an ongoing drug trafficking investigation that included court-authorized wiretaps, agents and task force officers with the Drug Enforcement Administration learned that Fysh regularly obtained fentanyl from a source in Lawrence, Massachusetts and then sold that fentanyl in New Hampshire. On both March 17, 2018, and March 18, 2018, a friend of the defendant suffered non-fatal overdoses after using the fentanyl purchased from the source in Lawrence. The defendant was arrested on March 18, 2018, and found with approximately 25 grams of fentanyl on her person. She admitted that she regularly bought fentanyl in Lawrence and distributed it in New Hampshire.
Fysh previously pleaded guilty on June 12, 2019.
“Interstate fentanyl traffickers introduce a lethal drug for distribution on the streets of New Hampshire,” said U.S. Attorney Murray. “In this case, the defendant followed the very familiar pattern of purchasing the drug in Lawrence and then transporting it into our state. The penalty of better than seven years in prison should serve as a deterrent to others who would choose to follow a similar path.”
“Fentanyl is causing great damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “Those who distribute fentanyl are endangering the safety of the citizens of New Hampshire. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in New Hampshire.”
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case was prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
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Government Contractor Sentenced to Probation and Ordered to Repay More Than $83,000Read the Press Release
CONCORD – Enco Industries, Inc., a company located in Plaistow, New Hampshire, was sentenced to three years of probation and ordered to pay $83,717.85 in restitution for making false statements to the U.S. Department of Defense’s Defense Logistics Agency, announced United States Attorney Scott W. Murray.
According to court documents and statements made during a hearing earlier today, the Defense Logistics Agency (“DLA”) purchases operating supplies (“items”) for the U.S. military from government contractors through the federal supply system. The Department of Defense (“DoD”) requires that all items conform to strict military specifications identified in its contracts. Contract solicitations include the DoD’s specifications for the requested item.
An oil sorbent mat is one item the DLA acquires through the federal supply system. Because the mats are used to absorb flammable liquids, the mats are required to meet specifications requiring them to dissipate electrical charges to the ground.
According to court documents, in December of 2011, the DLA posted a solicitation to acquire approximately 96,000 units of hazardous material mats over a five-year period. The solicitation required, among other things, that the mats pass standards established in National Fire Protection Association for Static Decay and Surface Resistivity. The solicitation also required the selected government contractor to purchase mats manufactured by a company in Tipton, Pennsylvania or another company in Pennsylvania.
Enco has been an approved government contractor since 2004. On January 13, 2012, Enco’s government contracting manager submitted Enco’s bid for the contract. The bid stated that Enco would purchase the mats from the company in Tipton for $29.15 for each unit containing 100 mats during the first year of the five-year annually renewable contract. This statement was false because, at the time the bid was submitted, Enco did not intend to purchase the mats from the company in Tipton.
The court documents further allege that on June 18, 2012, the DLA awarded the contract to Enco and sent the company a purchase order that incorporated all the required specifications for the mats. From June of 2012 to October of 2013, Enco provided approximately 21,700 units to the DLA. To obtain payments, Enco’s office manager submitted claims to the DoD. Most of claims were false because only seven units contained mats that were manufactured by the company in Tipton.
In August of 2013, an independent company concluded that several of the mats it tested did not meet the contract’s requirements for static decay or surface resistivity. As a result, the DLA sent Enco a letter on October 7, 2013, that notified the company that the contract might be terminated due to non-conformance.
In an October 2013-email addressed to the DLA, Enco’s president stated that Enco bought the mats from a non-approved manufacturer because the amount charged by the company in Tipton was prohibitive. In the same email, Enco’s president stated that Enco was not able to identify the non-approved manufacturer. This statement was false because, at the time of the email, Enco was able to identify the manufacturers from whom it had purchased the mats.
While speaking with Special Agents from the Naval Criminal Investigative Service (“NCIS”) and Defense Criminal Investigative Service (“DCIS”) on February 21, 2014, Enco’s president stated that before Enco submitted its bid on the contract, the company received price quotes from the two approved manufacturers. According to the court documents, Enco’s president also stated that Enco decided to buy the mats from the company in Tipton because its price was lower. This statement was false and misleading because when Enco submitted its bid for the contract, it intended to fulfill the contract by purchasing mats from a non-approved manufacturer.
Enco previously pleaded guilty to make a false statements to an agency of the United States government on June 3, 2019.
“Those who do business with the federal government must do so honestly,” said U.S. Attorney Murray. “When companies mislead the government in the efforts to obtain government contracts, they are committing a serious federal crime. We will not hesitate to work with our law enforcement partners to root out white collar crimes in order to protect the integrity of the government contracting process.”
"Today's sentencing is the end result of a successful joint effort to protect the U.S. Department of Defense's (DoD) procurement process," stated Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS) Northeast Field Office. "DCIS is committed to working with the U.S. Attorney's Office, District of New Hampshire, NCIS and AFOSI, to investigate and prosecute companies that provide false statements to the DoD in a fraudulent effort to obtain defense contracts.”
“Fraud is never a victimless crime,” said Special Agent in Charge Leo S. Lamont of the NCIS. “This case of using inferior and substandard materials damaged the readiness and safety of U.S. forces. The victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests while keeping the procurement system fair and honest."
"The Air Force Office of Special Investigations (AFOSI), along with its law enforcement partners, has, and always will, aggressively identify, investigate and neutralize anyone who attempts to defraud the US Government and put our nation's warfighters at risk," stated Special Agent-in-Charge Jason T. Hein, AFOSI, Office of Procurement Fraud.”
The case was investigated by the NCIS, DCIS, and the U.S. Air Force Office of Special Investigations, Office of Procurement. Assistant U.S. Attorney Robert Kinsella prosecuted the case with assistance from K. Drew Ayers, Acquisition Fraud Counsel for the U.S. Air Force Materiel Command Law Office.
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Georgia woman sentenced for stealing $196,000 from federal governmentRead the Press Release
ATLANTA - Dyann E. Ramo has been sentenced to three years on probation with the first year in home confinement after she pleaded guilty to one count theft of government funds related to her stealing her deceased mother's Social Security benefits for nearly 20 years
“Ramo went to great lengths to conceal her theft and enjoy the benefits to which she was not entitled,” said U.S. Attorney Byung J. “BJay” Pak. “She continued her deception until she was indicted by a grand jury. Only then did she finally own up to her graft.”
“Concealing a death to improperly receive Social Security benefits is a Federal crime—one that we aggressively pursue to maintain the public trust in Social Security’s vital programs,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We work closely with SSA and other agencies to identify beneficiary deaths, and track benefits paid after death. I greatly appreciate the support of the U.S. Attorney’s Office to pursue justice and recover stolen funds in these cases.”
According to U.S. Attorney Pak, the charges and other information presented in court: Ramo’s mother Virginia died in 1999. No one reported her death to Social Security and her retirement benefits continued to be paid. In 2013, 2014 and three different times in 2018, Social Security employees attempted to confirm whether Virginia Ramo was alive, and each time, Ramo insisted that her mother was alive. In an attempt to maintain her fraud, she claimed a Georgia death certificate in her mother’s name was a “mistake,” and even impersonated her mother on the telephone on two separate occasions. Ramo finally admitted that her mother was deceased after she was indicted by a federal grand jury.
Dyann E. Ramo, 66, of Canton, Georgia, has been sentenced to three years on probation with the first year to be served in home confinement, 200 hours of community service, ordered to pay restitution in the amount of $196,067, and a $100 special assessment. Ramo was convicted on these charges on May 22, 2019, after she pleaded guilty.
This case was investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gang Member Charged with Distributing Crack Cocaine in Public Housing DevelopmentRead the Press Release
BOSTON – A man identified as a member of the Heath Street Gang was arrested yesterday and charged in federal court in Boston with distributing crack cocaine in a public housing development.
Michael Pridgen, 35, was charged with distribution and possession with intent to distribute controlled substances, and distribution and possession with intent to distribute controlled substances in a public housing development. Pridgen was detained following an initial appearance yesterday in federal court.
According to court documents, Pridgen distributed crack cocaine in and around the Mildred C. Hailey Apartments, formerly known as the Bromley Heath Housing Development, in Boston on June 5, 2019, and July 2, 2019. During the June 5 sale, Pridgen allegedly stored the crack cocaine and a digital scale in an electrical box affixed to the wall in the stairwell of the public housing complex. Both drug sales occurred in common stairwells in the complex. Pridgen has been identified by law enforcement as a member of the Heath Street Gang, but was living in Westborough at the time of these sales.
The charge of distributing or possessing with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of distributing or possessing with intent to distribute controlled substances in a public housing development provides for a mandatory minimum of one year and up and to 40 years in prison, six years and up to a lifetime of supervised release and a fine of up to $2 million. 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; and Boston Police Commissioner William Gross made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Pittsburgh Man Pleads Guilty to Possessing Heroin that Led to Discovery of Fentanyl Production Lab in the Lincoln-Lemington Section of PittsburghRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, PA pleaded guilty to a federal narcotics charge on September 10, 2019, United States Attorney Scott W. Brady announced today.
Dezmen Hicks, age 35, pleaded guilty to one count of possession with intent to distribute heroin in front of Chief United States District Court Judge Mark R. Hornak. Hicks has been detained since his initial appearance in federal court on July 20, 2017. Judge Hornak scheduled sentencing for January 20, 2020.
According to information provided to the court, on July 19, 2017, Pittsburgh Police responded to a 911 call on the 6000 block of Auburn Street. Zone 5 officers identified Hicks and attempted to approach him in connection with the investigation before Hicks fled into a nearby house. Officers entered the house and observed Hicks attempting to hide a blue bag in the freezer of a refrigerator in the house. Officers detained Hicks and recovered the bag from the freezer which contained approximately 25 bricks or 1,250 bags of individual heroin.
Upon police entry into the home, co-defendants Malik Clark and Joshua Wright also fled from the basement of the house and were subsequently detained by police. During a subsequent search of the home, Pittsburgh Police officers and Drug Enforcement Agency Special Agents and Task Force Officers found a large-scale fentanyl production lab in the basement of the home, and various types of narcotics, numerous firearms, United States Currency and a variety of drug packaging and branding material throughout the house. Clark, Wright, and Hicks were charged by way of federal complaint on July 20, 2017 and later indicted. The charges against Clark and Wright remain pending and they are presumed innocent. Any information provided regarding them should be considered to be only allegations.
Hicks faces a total maximum sentence of not more than 30 years in prison and a fine of $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
Former KPMG Executive Sentenced for Scheme to Steal Confidential PCAOB InformationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID MIDDENDORF, the former head of KPMG’s National Office, also known as the Department of Professional Practice (the “DPP”), was sentenced today to one year and one day in prison for participating in a scheme to defraud the Public Company Accounting Oversight Board (the “PCAOB”) by obtaining, disseminating, and using confidential lists of which KPMG audits the PCAOB would be reviewing so that KPMG could improve its performance in PCAOB inspections. Middendorf was convicted of wire fraud charges in March 2019 following a month-long trial before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As the head of the KPMG department responsible for the quality of its audits, David Middendorf was at the top of a chain of corruption that threatened to corrupt KPMG and the PCAOB’s inspections process. Today’s sentence recognizes the harm this fraudulent scheme caused to the PCAOB and the auditing profession more generally.”
According to the evidence presented at trial:
The PCAOB is a nonprofit corporation overseen by the SEC that inspects the audit work performed by registered accounting firms (“Auditors”) with respect to the financial statements of publicly traded companies (“Issuers”). The PCAOB inspects the largest U.S. accounting firms on an annual basis. As part of the inspection process, the PCAOB chooses a selection of audits performed by an accounting firm for a closer review, commonly referred to as an inspection. Until shortly before an inspection occurs, the PCAOB does not disclose which audits are being inspected, or the focus areas for those inspections, because it wants to ensure that an Auditor does not perform additional work or modify its work papers in anticipation of an inspection. Following the completion of an inspection, the PCAOB issues an Inspection Report containing any negative findings or “comments” with respect to both the specific audits reviewed and the accounting firm more generally.
KPMG is one of the largest accounting firms in the world. In recent years, KPMG fared poorly in PCAOB inspections and in 2014 received approximately twice as many comments as its competitor firms. By at least in or about 2015, KPMG was engaged in efforts to improve its performance in PCAOB inspections, including but not limited to recruiting and hiring former PCAOB personnel. At the time, MIDDENDORF was head of KPMG’s DPP, which was broadly responsible for the quality of KPMG’s audits and KPMG’s performance in PCAOB inspections.
KPMG’s efforts to improve inspection results, however, were not limited to legitimate means. Instead, between 2015 and 2017, MIDDENDORF and others worked to illicitly acquire valuable confidential PCAOB information concerning which KPMG audits would be inspected in an effort to game the system and improve inspection results. For example, beginning in 2015, Brian Sweet, a former PCAOB employee who had joined KPMG, provided MIDDENDORF, Thomas Whittle, and others with the PCAOB’s confidential 2015 list of inspection selections, at MIDDENDORF’s request, so that the information could be used by MIDDENDORF, Whittle, and others to improve KPMG’s performance on PCAOB inspections.
In March 2016, Jeffrey Wada, an Inspections Leader at the PCAOB, provided Cynthia Holder, a KPMG employee, with confidential information on certain of the PCAOB’s 2016 inspection selections. Holder, in turn, provided the 2016 inspection selections to Sweet, who passed them to MIDDENDORF, Whittle, and others. MIDDENDORF, Whittle, Sweet, and others then agreed to launch a stealth program to “re-review” the audits that had been selected, and agreed to keep their stealth re-reviews within their “circle of trust.” In order to cover up their illicit conduct, other KPMG engagement partners were given a false explanation for the re-reviews. The stealth re-review program allowed KPMG to strengthen its work papers, and, in some cases, identify deficiencies or perform new audit work that had not been done during the live audit.
In January 2017, Wada, who had been passed over for promotion at the PCAOB, again stole valuable confidential PCAOB information, misappropriating a preliminary list of confidential 2017 inspection selections for KPMG audits and passing it on to Holder, referring to it in a voicemail as the “grocery list.” At the same time, Wada provided Holder with his resume and sought Holder’s assistance in helping him to acquire employment at KPMG. Sweet shared with Whittle the preliminary inspection selections provided by Wada; Wada in turn shared them with MIDDENDORF, who approved their use to improve the audits on the list.
In February 2017, Wada texted Holder saying, “I have the grocery list. . . . All the things you’ll need for the year.” Wada then spoke to Holder and provided her with the full confidential 2017 final inspection selections. Holder again shared the stolen information with Sweet, who shared it with MIDDENDORF, Whittle, and others so that it could be acted upon to improve the audits on the list.
In 2017, a KPMG partner who received early notice that her engagement was on the confidential 2017 inspection list reported the matter, and it was ultimately reported to KPMG’s Office of General Counsel.
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In addition to a prison sentence, MIDDENDORF, 55, of Marietta, Georgia, was sentenced to three years of supervised release. A determination of the restitution amount was deferred to a later date.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and also thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Jordan Estes, Margaret Graham, and Martin Bell are in charge of the prosecution.
Former Davenport Elementary School Teacher Charged Federally for Mailing Hoax Biological Agents and ToxinsRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Maria Bassi Lauro (65, Davenport) with six counts of mailing threatening communications and transmitting false information and hoaxes. If convicted on all counts, Lauro faces a maximum penalty of 30 years in federal prison.
FBI special agents arrested Lauro at her home in Davenport today. She made her initial appearance before United States Magistrate Judge Sean P. Flynn and has been released on restrictive bail conditions.
According to the
indictment and information presented in court, Lauro mailed threatening letters containing white powder to three different elementary schools in Polk and Lake Counties, where she had previously worked as an elementary school teacher. The recipients of the mailings had believed that the powder could be harmful and called for emergency assistance. Because anthrax, ricin, and other toxins can appear as a white powder, law enforcement and other first responders treated each of the mailings as hazardous and potentially lethal. Later analysis of the powder contained in the mailings, however, proved that it was harmless.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Polk County Sheriff’s Office, the Lake County Sheriff’s Office, the Florida Department of Health, and various HAZMAT and Fire/Rescue teams. It will be prosecuted by Assistant United States Attorney Daniel George.
Former Background Investigator for Federal Government Sentenced for Making False StatementsRead the Press Release
WASHINGTON – Bradley Lane, 30, a former background investigator for the U.S. Office of Personnel Management (OPM), was sentenced today to 36 months of probation, including 6 months of GPS Electronic Monitor on one false statements charge in connection with his falsification of work on background investigations of federal employees and contractors.
U.S. Attorney Jessie K. Liu and Thomas W. South, Deputy Assistant Inspector General for Investigations, U.S. Office of Personnel Management made the announcement today.
Lane, of Virginia, pled guilty on May 15, 2019, in the U.S. District Court for the District of Columbia to one count of making false statements. He was sentenced by the Honorable Thomas F. Hogan. As part of his sentence, he is required to pay $212,407.03 in restitution to OPM.
According to court papers, Lane was an investigator tasked with conducting background investigations on behalf of OPM’s National Background Investigations Bureau (NBIB). NBIB conducts background investigations to determine suitability for federal positions of public trust, including positions having access to classified information and impacting national security. NBIB also conducts investigations for federal employees and contractors seeking security clearances.
Lane admitted that, in conducting these investigations between November 23, 2015 and October 24, 2016, he falsely claimed to have interviewed a source or reviewed a record regarding the subject of the background investigation in at least 94 instances on 57 different background investigations.
Lane acknowledged at his guilty plea hearing that his false representations required OPM’s NBIB to reopen and rework background investigations that were assigned to him during the time period in which he falsified reports. The government estimated the cost of the recovery effort at more than $212,000 to the U.S. government.
NBIB, through its workforce of approximately 5,400 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. NBIB conducted more than 2.6 million investigations during the 2018 fiscal year. More than 787,557 of these investigations involved applicants for access or continued access to classified information.
NBIB has a robust integrity assurance program, which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by Lane was detected through the program. This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. Approximately 25 other background investigators and record checkers have been convicted of charges similar to those brought against Lane.
In announcing the sentence, U.S. Attorney Liu and Deputy Assistant Inspector General for Investigations South praised the efforts of those who worked on the case from OPM’s Office of the Inspector General (OIG), as well as the Special Investigations Branch, and Executive Program Director of Integrity Assurance of OPM-NBIB. They also acknowledged the work of Assistant U.S. Attorney David Misler of the Fraud and Public Corruption Section, who investigated and prosecuted this matter, and former OPM OIG Special Agent Samuel Peyton, who previously worked on the investigation of the matter.
Former Assistant Track Coach Sentenced for Possessing Child PornographyRead the Press Release
BOSTON – A former Wellesley High School assistant track coach, who is also a former Harvard University track coach, was sentenced yesterday in federal court in Boston for possession of child pornography.
Walter Johnson, 71, of Framingham, was sentenced by U.S. District Court Judge Leo T. Sorokin to three years in prison and five years of supervised release. In June 2019, Johnson pleaded guilty to one count of possession of child pornography.
In January 2017, an investigation began into child pornography being traded by a Craigslist user. The investigation led to Johnson, a track coach at Wellesley High School and a former Harvard University track coach. During a search of Johnson’s home in Framingham, images and videos of child pornography were found on his computer and on a thumb drive hidden in his bedroom. He was arrested on scene and subsequently indicted by a federal grand jury.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was provided by the Internet Crimes Against Children (ICAC) task forces from Massachusetts and Rhode Island, and the Framingham Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted 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.
Florida Attorney Charged with Conspiracy and Multiple Obstruction of Justice OffensesRead the Press Release
Tampa, Florida – The United States Attorney’s Office announces the unsealing of an indictment charging attorney Nelson Israel Alfaro (48, Miami and Colorado) and Gilberto Eduardo De Los Rios (50, Miami) with conspiracy to defraud the United States, obstruct the administration of justice, make false statements to federal law enforcement officers, and six substantive counts of obstruction of justice and making false statements to federal law enforcement officers. If convicted on all counts, Alfaro faces a maximum penalty of 35 years in federal prison and De Los Rios faces a maximum penalty of 20 years in federal prison. The indictment also notifies Alfaro and De Los Rios that the United States intends to forfeit any money or other ill-gotten gains that are traceable proceeds of the offenses.
Alfaro is an attorney licensed to practice law in the State of Florida. He represents criminal defendants in state and federal courts, including the United States District Court for the Middle District of Florida. Between 2010 and 2011, Alfaro represented De Los Rios, a/k/a “Kiko,” in a criminal case in Miami-Dade County, Florida.
According to the
indictment , Alfaro and De Los Rios concocted a scheme to charge an already-sentenced defendant tens of thousands of dollars for information that they then fraudulently presented as “cooperation” and “substantial assistance” by the defendant in order to trigger a motion to the court for a sentencing reduction. The indictment also charges Alfaro and De Los Rios with obstructing justice by interfering with the sentencing process and with making multiple false statements to federal agents.An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Simon A. Gaugush and Josephine W. Thomas.
Federal jury convicts Texas man of possessing AR-15 rifle after traffic stop in Greenwood, LouisianaRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a federal jury handed down a guilty verdict against a Texas man Tuesday for possessing an AR-15 rifle in his car after having been previously convicted of multiple felonies.
Deandray Charles Grant, 29, of Carrollton, Texas, was convicted after a one-day jury trial presided over by Chief U.S. District Judge S. Maurice Hicks Jr.
Testimony presented during the trial showed that a Greenwood, Louisiana, police officer pulled over Grant’s vehicle on November 23, 2018, for traveling 90 miles per hour in a 70 mile per hour speed zone. After the vehicle stopped, the officer approached Grant and asked for his identification. Grant told the officer that he was a “sovereign citizen” with “sovereign status” and did not have to comply with his request. Eventually, Grant exited the vehicle and was arrested. The officers discovered that he did not have any identification and had a small amount of marijuana in his front pocket. After searching the vehicle they found a DPMS Panther Arms AR-15 rifle and 28 rounds of .556-caliber ammunition.
Grant is a convicted felon who was found guilty on August 8, 2013, of possession with intent to distribute drugs, on April 4, 2014, of simple burglary, and on May 1, 2014, of possession of marijuana, all in Caddo Parish. Under federal law, a convicted felon is not allowed to possess firearms or ammunition.
“Everybody must obey the law, even sovereign citizens,” Joseph stated. “Felons that carry firearms in this district pose a danger to our communities and will be federally prosecuted. I want to thank the officers who handled this situation professionally and the other law enforcement agents that investigated this case. I also want to thank the prosecutors from my office for their hard work obtaining a successful verdict.”
Grant faces 10 years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for January 6, 2020.
The ATF, Greenwood Police Department and Shreveport Police Department investigated the case. Assistant U.S. Attorneys J. Aaron Crawford and Jessica Cassidy prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.