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Monday 29 July 2019
Jackson Woman Pleads Guilty to Intentionally Damaging State Agency’s Protected ComputersRead the Press Release
Jackson, Miss. – Tara Steverson, 39, of Jackson, pled guilty today before U.S. District Judge Henry T. Wingate to intentionally damaging protected computers, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Steverson was terminated from her position at the Mississippi Department of Human Services (MDHS) on July 31, 2017. On August 1, 2017, the day after her termination, Steverson unlawfully accessed one of the systems utilized by MDHS and intentionally changed several files, resulting in other users being unable to perform their usual and customary workflow functions. The affected system was used to retain records and plans of home care and generically supports the tracking of home and community based services such as in-home services, meal delivery, and caregiver support. Steverson did over $5,000 in damage before losing access to the system.
Steverson will be sentenced by Judge Wingate on October 28, 2019 at 9:30 a.m. She faces a maximum penalty of ten years in prison and a $250,000 fine.
The Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Information Technology Consultant Convicted of Multimillion-Dollar Kickback SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that a federal jury found SHIVANAND MAHARAJ guilty of honest services wire fraud, paying kickbacks in connection with an employee benefit plan, and conspiracy, following a two-week trial before U.S. District Judge John G. Koeltl. MAHARAJ’s co-conspirator, ENRICO RUBANO, a/k/a “Rick Rubano,” who was a director of information technology at a large union pension and health benefit fund (the “Funds”), pled guilty in connection with the same crimes shortly before trial.
Manhattan U.S. Attorney Geoffrey S. Berman said: “For years, Shivanand Maharaj bribed an insider at a pension and health fund to approve hundreds of invoices for information technology work that was never done at all. He now stands rightly convicted for depriving hardworking individuals out of millions of dollars of health and retirement benefits.”
According to the allegations contained in the Indictment and evidence presented during the trial in Manhattan federal court:
From 2009 through 2015, RUBANO was the co-head of information technology for the Funds and had the authority to approve the payment of invoices from third-party vendors. Beginning in at least 2009, and continuing through 2015, MAHARAJ and RUBANO devised a scheme in which three different companies MAHARAJ owned or controlled submitted to the Funds invoices for millions of dollars in information technology services that were never performed or that had, in fact, been performed by employees of the Funds or other vendors. RUBANO, in his position as co-head of information technology, approved these fraudulent invoices and received kickbacks from MAHARAJ. MAHARAJ, by submitting hundreds of invoices and recruiting another co-conspirator to receive additional criminal proceeds, fraudulently received in excess of $2 million through this scheme.
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MAHARAJ, 39, of Cresskill, New Jersey, was convicted of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years; one count of giving kickbacks to influence the operation of an employee benefit plan, which carries a maximum sentence of three years; and conspiracy to give kickbacks to influence the operation of an employee benefit plan, which carries a maximum sentence of five years.
MAHARAJ will be sentenced by Judge Koeltl on December 6, 2019.
RUBANO, 50, of Tappan, New York, who engaged in additional kickback and fraud schemes with other co-conspirators, pled guilty to three counts of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison.
RUBANO will be sentenced by Judge Koeltl on November 8, 2019.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman thanked the U.S. Postal Inspection Service for their outstanding work in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Matthew Podolsky and Aline R. Flodr are in charge of the prosecution.
Hell's Angels Member Sentenced on Meth and Cocaine Trafficking, Firearms ChargeRead the Press Release
PROVIDENCE, RI – A “full patch” member of the Rhode Island chapter of the Hell’s Angels Motorcycle Club, arrested during a Project Safe Neighborhoods drug trafficking investigation by members of the FBI Safe Streets Task Force, was sentenced today to 84 months in federal prison for trafficking methamphetamine and cocaine and being a felon in possession of a firearm, announced United States Attorney Aaron L. Weisman and Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
Douglas Leedham, 54, of North Providence, was arrested on February 8, 2019, by members of the Safe Streets Task Force after a court-authorized search of his residence resulted in the seizure of approximately 39 grams of methamphetamine, 21 grams of cocaine, two handguns, a 12 gauge shotgun, two body armor vests, 35 knives, four hatchets, five expandable batons, a set of brass knuckles, $6,422 in cash, and assorted items used in the packaging and distribution of drugs.
Leedham, who pleaded guilty on May 14, 2019, to possession with the intent to distribute 5 grams or more of methamphetamine, possession with the intent to distribute cocaine, and being a felon in possession of a firearm, was sentenced today by U.S. District Court Judge John J. McConnell, Jr., to 84 months in federal prison to be followed by 4 years supervised release.
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.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, Pawtucket, and Central Falls Police Departments, R.I. Department of Corrections, and the Rhode Island National Guard.
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Hampden Woman Sentenced to 22 Months for Possession with Intent to Distribute Crack and HeroinRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Carletta Willette, a/k/a “Carletta Knowlton,” a/k/a “Carly,” 36, of Hampden, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to time served (22 months) in prison and three years of supervised release for possession with the intent to distribute 28 grams or more of cocaine base, commonly known as “crack” and heroin. Willette pled guilty on March 7, 2018.
According to court records, on September 1, 2017, Willette was arrested outside of a hotel in Brewer, Maine and found to be in possession of about 95 grams of crack and 44 grams of heroin.
The case was investigated by the Brewer Police Department, the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Germain Sentenced for Possession of Child Pornography and Assaulting a Federal OfficerRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Colin Germain, 21, formerly of New Haven, Vermont has been sentenced to a total term of incarceration of twenty-six months for child pornography and assault offenses. On May 17, 2019, Germain had pleaded guilty to one count of possession of child pornography and one count of assault on a federal officer. On Friday, United States District Court Judge Christina Reiss sentenced Germain to twenty months for the child pornography offense and six months for the assault offense, to be served consecutively, with a twelve year term of supervised release to follow.
According to court records and proceedings, on August 2, 2017, Germain emailed a recipient in Tennessee a video file depicting sexual abuse of a female child involving bestiality. Law enforcement identified the Internet Protocol (IP) address associated with the email account that sent the video, then traced the IP address to Germain’s New Haven address and obtained a warrant to search the location. Federal, state, and local officers executed the warrant on November 7, 2017. During their search of the residence, Germain became argumentative and kicked a Special Agent for Homeland Security Investigations.
Germain was initially charged for this conduct in Vermont Superior Court. In March 2018, he was charged federally. According to court records and proceedings, during the time when Germain was on pretrial release after being charged, he violated court-imposed conditions multiple times by accessing the internet, continuing to trade in child pornography, and committing additional assaults.
United States Attorney Christina Nolan commended Homeland Security Investigations for its investigative efforts throughout this case. She stated “Prosecution of child sexual exploitation crimes continues to be a top priority for the U.S. Attorney’s Office. Moreover, it is important to recognize that officers and agents in our partner law enforcement agencies put themselves in harm’s way every day as they work to protect the public. Any assault on a law enforcement officer performing his or her duties is both serious and unacceptable. The U.S. Attorney’s Office will continue to seek serious consequences for this conduct.”
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources better to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The prosecutor in this matter was Assistant U.S. Attorney Nicole Cate. Germain was represented by Federal Public Defenders Elizabeth Quinn and David McColgin.
Former Waukesha County Juvenile Social Worker Indicted for Distribution and Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 23, 2019 a federal grand jury returned a two-count indictment against Bernard J. Trokan (age: 53) of Hartland, WI.
Trokan faces charges alleging he possessed and distributed child pornography contrary to Title 18, United States Code, Sections 2252A(a)(2)(A) and (a)(5)(B).
If convicted of all of the charges, Trokan will serve a mandatory 5 years in federal prison and up to 20 years in prison.
This case was investigated by the Federal Bureau of Investigation-Child Exploitation Task Force and by the Waukesha County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Megan J. Paulson.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Former S&P Analyst Sentenced to More Than One Year in Prison for Insider TradingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SEBASTIAN PINTO-THOMAZ, a former credit ratings analyst at Standard & Poor’s, was sentenced today in Manhattan federal court to 14 months in prison for participating in two schemes to trade on material, nonpublic information in advance of the Sherwin-Williams Company’s acquisition of the Valspar Corporation. PINTO-THOMAZ was convicted on April 26, 2019, following a jury trial before U.S. District Judge Jed S. Rakoff, who also imposed today’s sentence.
U.S. Attorney Geoffrey Berman said: “As an employee of Standard & Poor’s, Sebastian Pinto-Thomaz was privy to potentially lucrative information about business acquisition plans. Instead of protecting that information, as he had sworn to do, he shared it with a friend and with his hairdresser. In turn, they bet on a stock that they knew to be a sure thing, and raked in nearly $300,000 in profits. Pinto-Thomaz painted himself into a corner when he and his co-defendants exploited insider information to reap illegal profits. Now they all face time in prison for their misdeeds.”
According to the evidence presented during the trial and statements made in related court filings and proceedings:
Rating Evaluation Services and the Insider
When a company announces an acquisition, the acquiring company often seeks the opinion of a credit rating agency regarding the potential impact that the acquisition could have on the acquiring company’s creditworthiness. Therefore, companies often contact rating agencies before an acquisition is publicly announced in order to secure the rating agency’s views on how a possible acquisition could impact a company’s credit rating. All the major rating agencies offer a service – sometimes known as a Rating Evaluation Service (“RES”) – that provides the company with a rating committee decision with respect to a proposed acquisition.
In March 2016, Standard and Poor’s (“S&P”), a credit rating agency in New York, New York, assigned PINTO-THOMAZ to work on an RES for the Sherwin-Williams Company (“Sherwin-Williams”) in advance of its contemplated but unannounced acquisition of the Valspar Corporation (“Valspar”). In connection with this assignment, PINTO-THOMAZ received material, nonpublic information (the “Inside Information”) about Sherwin-Williams’s planned acquisition of Valspar prior to the public announcement of the acquisition. S&P’s written policies prohibited the unauthorized disclosure of confidential information, which included the Inside Information. During his tenure at S&P, PINTO-THOMAZ reviewed and certified his duties of loyalty and confidentiality to S&P and its clients.
The Insider Trading Scheme
In March 2016, PINTO-THOMAZ misappropriated the Inside Information about Sherwin-Williams’s acquisition of Valspar and passed it to Jeremy Millul, his friend, and Abell Oujaddou, his hairdresser, so that they could use it to make profitable trades in Valspar stock and options. On March 21, 2016, the first trading day after the public announcement of the acquisition, the price of Valspar stock increased approximately 23 percent over the prior day’s close.
Millul is a Manhattan jeweler who had a close personal friendship with PINTO-THOMAZ. After receiving a tip about the impending Valspar deal from PINTO-THOMAZ, Millul opened a brokerage account on March 13, 2016, and shortly thereafter purchased 480 shares of Valspar common stock. On March 18, 2016, the last trading day before the acquisition was publicly announced, Millul also purchased 75 out-of-the-money Valspar call options. After the acquisition was publicly announced, Millul sold his Valspar stock and options for approximately $106,806 in profits.
Oujaddou is a Manhattan hairstylist and salon owner who has known PINTO-THOMAZ for years, and who is close friends with PINTO-THOMAZ’s mother. During a haircut on March 8, 2016, or March 9, 2016, PINTO-THOMAZ provided Oujaddou with the Inside Information about the impending Valspar deal in exchange for a portion of his trading profits. Then, from March 10, 2016, through March 18, 2016, Oujaddou, who had never previously purchased Valspar or Sherwin-Williams securities, used the Inside Information he had received from PINTO-THOMAZ to purchase 8,630 shares of Valspar stock. After the acquisition was publicly announced, Oujaddou sold his Valspar shares for approximately $192,080 in profits. Following his successful trading, Oujaddou met PINTO-THOMAZ in the paint aisle of a hardware store and paid him a kickback.
Later, in June 2016, the Financial Industry Regulatory Authority (“FINRA”) sent S&P a list of individuals and entities that had traded in Valspar in advance of the public announcement of the acquisition (the “List”). S&P forwarded the List to its employees who had worked on the Sherwin-Williams RES, including PINTO-THOMAZ, asking the employees to respond by stating whether they had a past or present relationship with any individual or entity on the List. Although both Oujaddou and Millul were on the List, PINTO-THOMAZ denied having a relationship with anyone on the List.
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In addition to his prison term, PINTO-THOMAZ, 34, of New York, New York, was sentenced to 3 years of supervised release and ordered to pay a fine of $15,000 and a forfeiture money judgment in the amount of $7,500.
Jeremy Millul and Abell Oujaddou each previously pled guilty and await sentencing before Judge Rakoff on July 30, 2019, and September 5, 2019, respectively.
Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine I. Magdo and Andrew Thomas are in charge of the prosecution.
Former Federal Correctional Officer Sentenced to 7 Years’ Imprisonment for Soliciting a Crime of Violence and Possessing a FirearmRead the Press Release
Earlier today, George Gonzalez, a former officer with the Federal Bureau of Prisons assigned to the Metropolitan Detention Center in Brooklyn (MDC), was sentenced to seven years’ imprisonment by United States District Judge Roslynn R. Mauskopf. Gonzalez pleaded guilty on March 16, 2018 to one count of solicitation to commit a crime of violence and one count of possession of a firearm while subject to a protective order.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. Devito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Guido Modano, Special Agent-in-Charge, United States Department of Justice, Office of the Inspector General, New York Field Office (DOJ OIG), announced the guilty plea.
“Gonzalez, a former federal correctional officer, will fittingly serve time in a prison cell for soliciting an inmate, and a hit team he believed were gang members, to brutally attack his former wife and her spouse,” stated United States Attorney Donoghue. “Thanks to the swift response of our law enforcement partners, including the ATF undercover agents, Gonzalez’s plan was thwarted.” Mr. Donoghue expressed his grateful appreciation to the United States Bureau of Prisons for their assistance during the investigation.
“Mr. Gonzalez hatched a plan that would have resulted in a brutal attack on his estranged wife and her new partner. Today’s sentencing sends a loud and clear message that those planning heinous acts of violence will be met with swift justice and appropriate punishment by our criminal justice system,” stated ATF Special Agent-in-Charge Devito. “ATF stands firm on protecting the public from violent criminals of all kinds. I would like to thank the Special Agents and Task Force Officers of the NYPD/ ATF Joint Robbery Task Force, the Federal Bureau of Prisons and the Office of the Inspector General for their coordination and diligent efforts on this case. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
“In the process of attempting to carry out a brutal attack, Gonzalez put many lives at risk and abused his authority with extremely violent intentions,” stated DOJ OIG Special Agent-in-Charge Modano. “Federal inmates should never be solicited for crimes, not least by correctional officers. This case should serve as an example to anyone that dares to threaten the integrity of the law enforcement profession.”
In November 2016, Gonzalez approached an inmate under his supervision and asked him to locate someone willing to carry out a “hit.” The inmate reported the request to law enforcement. Thereafter, Gonzalez had multiple recorded meetings and conversations with individuals he believed to be gang members, but who were actually undercover ATF agents. Gonzalez offered to pay them to have his ex-wife and her new spouse assaulted and tortured, and make it “look like a robbery.” He added that they should “take a hammer to the spine” so that the victims would be paralyzed and “suffer … for the rest of their lives … that’s how I do business … I have no compassion for anybody.” Gonzalez then provided the supposed gang members with photographs and pedigree information of the intended victims.
Agents executed a search warrant at the defendant's residence in Staten Island, and seized two loaded, unlicensed handguns. At the time he solicited the attacks, Gonzalez was subject to an order of protection issued by the Richmond County Family Court, prohibiting him from having any contact with his ex-wife and requiring him to surrender any firearms in his possession.
Assistant U.S. Attorney Artie McConnell is in charge of the prosecution.
The Defendant:
George Gonzalez
Age: 56
Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-51 (RRM)
Former Bookkeeper for Anoka Flooring Company Sentenced to 46 Months in Prison for $630,000 Embezzlement SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced that SHARI ANN NATYSIN, a/k/a Shari Ann Johnson, 33, was sentenced to 46 months in prison and ordered to pay full restitution for embezzling more than $630,000 from her former employer. NATYSIN, who pleaded guilty on February 28, 2019, to wire fraud, tax evasion, and making and subscribing a false tax return, was sentenced earlier today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota.
According to admissions made as part of her guilty plea and documents filed in court, NATYSIN was employed as the bookkeeper and office manager for a privately owned industrial concrete flooring business located in Anoka, Minnesota. Between January 2015 and December 2017, NATYSIN used her position and access to employee payroll data to defraud the company out of more than $630,000 and to defraud the Minnesota Department of Employment and Economic Development (“MNDEED”). As part of the scheme, NATYSIN manipulated the company’s payroll data in order to transfer more than $630,000 in company funds to her own personal bank accounts through more than 100 separate fraudulent transactions. NATYSIN used the funds to pay for personal expenses, including approximately $28,000 in restitution payments to Sherburne County District Court, a $10,000 payment to her mother, Carnival cruise tickets, and tickets to concerts and sporting events.
According to admissions made as part of her guilty plea and documents filed in court, in September 2017, the company discovered NATYSIN’s fraud and terminated her employment. From the time she was fired until December 2017, NATYSIN made fraudulent unemployment claims to MNDEED by making false statements about the reason for her termination. When the company filed an appeal of NATYSIN’s receipt of unemployment benefits, NATYSIN used the company’s login information to access their MNDEED account to withdraw the appeal. As a result of NATYSIN’s fraudulent claims, MNDEED issued approximately $7,500 in unemployment benefits to which NATYSIN was not entitled. Additionally, NATYSIN admitting to filing and attempting to file false tax returns for tax years 2015 and 2016, in an attempt to receive tax refunds and defeat more than $100,000 in federal income tax.
This case was the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys Kimberly A. Svendsen and Jordan L. Sing prosecuted the case.
Defendant Information:
SHARI ANN NATYSIN, 33
Elk River, Minn.
Convicted:
- Wire fraud, 9 counts
- Tax evasion, 2 counts
- Making and subscribing a false tax return, 1 count
Sentenced:
- 46 months in prison
- Three years of supervised release
- $668,551.25 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Probe into Bank Fraud in North Suburbs Adds Two New DefendantsRead the Press Release
CHICAGO — A federal investigation that previously led to bank fraud and identity theft charges against a north suburban businessman has resulted in indictments against two additional defendants, including the businessman’s brother.
JASON SCHIFF, 40, of Lincolnwood, is charged with three counts of bank fraud, according to a superseding indictment returned July 24, 2019, in U.S. District Court in Chicago. The superseding indictment also charges Jason Schiff’s brother, YALE SCHIFF, 44, of Riverwoods, with 12 counts of bank fraud and two counts of aggravated identity theft. Yale Schiff was initially charged in the case last month. The Schiffs pleaded not guilty today during arraignments before U.S. Magistrate Judge Young B. Kim in Chicago.
A separate indictment returned July 17, 2019, charges Yale Schiff’s business associate, DAVID IZSAK, 44, of Chicago, with eleven counts of bank fraud and one count of aggravated identity theft. During the investigation, federal authorities seized Izsak’s 57-foot Carver 570 Voyager yacht known as the “Flying Lady.” The indictment seeks forfeiture of the yacht, as well as a personal money judgment against Izsak of approximately $4 million. Izsak pleaded not guilty at his arraignment earlier this month.
The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
According to the charges against the Schiffs, Yale Schiff made false statements in loan applications to obtain millions of dollars in mortgage loans secured by a variety of properties. The charges allege that Yale Schiff filed with the Cook County Recorder of Deeds fraudulent letters from financial institutions claiming that loans on the properties were paid in full and that the mortgages were released, when, in fact, the loans were not paid in full and the mortgages had not been released. Yale Schiff then kept the financing paid by the banks, as well as proceeds from the eventual sales of the properties, without paying the mortgages, the indictment states. The fraud allegedly committed by Jason Schiff arose out of bank loans for vehicles and a loan secured by real estate purchased from Yale Schiff.
The charges against Izsak accuse him of fraudulently obtaining loans secured by real estate and vehicles. Izsak allegedly submitted or caused to be submitted to the Cook County Recorder of Deeds fake letters purporting to be from the lender, purporting to congratulate Izsak for paying his loan in full and releasing the lien. In reality, the letters were not from the lender, the loans were not paid in full, and the liens were not released, the indictment states.
Izsak and Yale Schiff are each accused of fraudulently obtaining loans by using names, Social Security numbers and dates of birth that did not belong to them. Izsak also used a stolen identity to obtain a credit card, while Yale Schiff used fake and stolen identities to fraudulently obtain a charge card at Nordstrom department store and loans for a Jeep Grand Cherokee and a Lexus RX350, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each bank fraud count is punishable by a maximum sentence of 30 years in prison, while each count of aggravated identity theft carries a mandatory sentence of two years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Erie Man Sentenced to 5+ Years in Prison for Receiving Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to five years and 10 months (70 months) in prison, 5 years supervised release and a $5,100 special assessment on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Eric J. Andrzejewski, 33.
According to information presented to the court, Andrzejewski received computer images depicting minors engaging in sexually explicit conduct.
This case was 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 (CEOS), 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.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Andrzejewski.
Erie Man Pleads Guilty in Project Safe Childhood CaseRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Kevin Christopher Oldland, 38, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Oldland traveled to Erie, Pennsylvania for the purpose of engaging in illegal sexual activity with a minor and used a means or facility of interstate commerce to persuade, induce and entice the minor to engage in illegal sexual activity.
This case was 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 (CEOS), 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.
Judge Cercone scheduled sentencing for December 9, 2019 at 12:45 p.m. The law provides for a total sentence of life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Oldland on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Millcreek Police Department conducted the investigation that led to the prosecution of Oldland.
Dodge City Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
WICHITA, KAN. – A tax preparer in Dodge City pleaded guilty today to filing false income tax returns, U.S. Attorney Stephen McAllister said.
Maria R. Garcia, 48, Dodge City, Kan., pleaded guilty to one count of preparing tax returns containing false statements. In her plea, she admitted preparing numerous tax returns for tax years 2013, 2014 and 2015 that contained false statements. As a result, her clients received refunds in excess of what they were owed. The total loss to the Internal Revenue Service was more than $101,700.
The plea agreement calls for Garcia to pay the full amount in restitution and to be permanently prohibited from working as a tax preparer.
Sentencing is set for Oct. 15. She faces a penalty of up to three years in federal prison and a fine up to $100,000. McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Mona Furst for their work on the case.
Detroit Man Sentenced to 20 Years in Prison for Selling Drugs in A Detroit ParkRead the Press Release
Danny Lee Woods, 46, of Detroit, Michigan, was sentenced on July 23, 2019, to a total of 20 years in federal prison by U.S. District Judge George Caram Steeh, III, for possession with intent to distribute controlled substances and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Matthew Schneider. Woods pleaded guilty on February 27, 2019.
Schneider was joined in the announcement by James M. Deir, Special Agent in Charge of the Detroit Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Detroit Police Department Chief James Craig.
According to court records, Woods, who was on parole at the time, was selling crack cocaine and heroin that was mixed with fentanyl at Sasser Playground, a neighborhood park located in Detroit. While making the sales, Woods had a loaded pistol in his waistband, which Woods later hid behind a tree inside the park. Woods was being surveilled by officers of the Detroit Police Department and was subsequently arrested. The case was adopted for federal prosecution.
As part of his plea, Woods agreed that he qualified as a Career Offender under the Sentencing Guidelines.
"Parks should be a place where families feel safe to gather," said United States Attorney Matthew Schneider. "We will continue to work closely with our local police
partners to prosecute violent offenders who threaten us, so we can protect innocent children and families who just want to enjoy a nice day at the park."
"Danny Lee Woods put innocent lives in danger when he chose to sell drugs and toss a handgun in a public park," said Special Agent in Charge James Deir. "Instead of improving his life following previous felony convictions, Woods continued to break the law. ATF stands with our law enforcement partners to rid our community of dangerous individuals."
"We certainly appreciate the partnership of our federal partners and commend the great work by the men and women of this department," said Detroit Police Chief James Craig. "Our families deserve to have safe and drug free parks and we will not tolerate behavior that will compromise the well-being of our residents. We will continue our efforts in working with our federal agencies in attacking the drug epidemic that plagues our society and dampens the quality of life within our communities."
This case was investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers of the Detroit Police Department. It was prosecuted by Assistant United States Attorneys J. Michael Buckley and Trevor Broad of the United States Attorney’s Office for the Eastern District of Michigan.
Detroit Man Sentenced to 20 Years in Prison for Selling Drugs in A Detroit ParkRead the Press Release
Danny Lee Woods, 46, of Detroit, Michigan, was sentenced on July 23, 2019, to a total of 20 years in federal prison by U.S. District Judge George Caram Steeh, III, for possession with intent to distribute controlled substances and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Matthew Schneider. Woods pleaded guilty on February 27, 2019.
Schneider was joined in the announcement by James M. Deir, Special Agent in Charge of the Detroit Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Detroit Police Department Chief James Craig.
According to court records, Woods, who was on parole at the time, was selling crack cocaine and heroin that was mixed with fentanyl at Sasser Playground, a neighborhood park located in Detroit. While making the sales, Woods had a loaded pistol in his waistband, which Woods later hid behind a tree inside the park. Woods was being surveilled by officers of the Detroit Police Department and was subsequently arrested. The case was adopted for federal prosecution.
As part of his plea, Woods agreed that he qualified as a Career Offender under the Sentencing Guidelines.
“Parks should be a place where families feel safe to gather,” said United States Attorney Matthew Schneider. “We will continue to work closely with our local police partners to prosecute violent offenders who threaten us, so we can protect innocent children and families who just want to enjoy a nice day at the park.”
“Danny Lee Woods put innocent lives in danger when he chose to sell drugs and toss a handgun in a public park,” said Special Agent in Charge James Deir. “Instead of improving his life following previous felony convictions, Woods continued to break the law. ATF stands with our law enforcement partners to rid our community of dangerous individuals.”
“We certainly appreciate the partnership of our federal partners and commend the great work by the men and women of this department,” said Detroit Police Chief James Craig. “Our families deserve to have safe and drug free parks and we will not tolerate behavior that will compromise the well-being of our residents. We will continue our efforts in working with our federal agencies in attacking the drug epidemic that plagues our society and dampens the quality of life within our communities.”
This case was investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers of the Detroit Police Department. It was prosecuted by Assistant United States Attorneys J. Michael Buckley and Trevor Broad of the United States Attorney’s Office for the Eastern District of Michigan.
Detroit Man Sentenced to 20 Years in Prison for Selling Drugs in A Detroit ParkRead the Press Release
Danny Lee Woods, 46, of Detroit, Michigan, was sentenced on July 23, 2019, to a total of 20 years in federal prison by U.S. District Judge George Caram Steeh, III, for possession with intent to distribute controlled substances and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Matthew Schneider. Woods pleaded guilty on February 27, 2019.
Schneider was joined in the announcement by James M. Deir, Special Agent in Charge of the Detroit Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Detroit Police Department Chief James Craig.
According to court records, Woods, who was on parole at the time, was selling crack cocaine and heroin that was mixed with fentanyl at Sasser Playground, a neighborhood park located in Detroit. While making the sales, Woods had a loaded pistol in his waistband, which Woods later hid behind a tree inside the park. Woods was being surveilled by officers of the Detroit Police Department and was subsequently arrested. The case was adopted for federal prosecution.
As part of his plea, Woods agreed that he qualified as a Career Offender under the Sentencing Guidelines.
“Parks should be a place where families feel safe to gather,” said United States Attorney Matthew Schneider. “We will continue to work closely with our local police partners to prosecute violent offenders who threaten us, so we can protect innocent children and families who just want to enjoy a nice day at the park.”
“Danny Lee Woods put innocent lives in danger when he chose to sell drugs and toss a handgun in a public park,” said Special Agent in Charge James Deir. “Instead of improving his life following previous felony convictions, Woods continued to break the law. ATF stands with our law enforcement partners to rid our community of dangerous individuals.”
“We certainly appreciate the partnership of our federal partners and commend the great work by the men and women of this department,” said Detroit Police Chief James Craig. “Our families deserve to have safe and drug free parks and we will not tolerate behavior that will compromise the well-being of our residents. We will continue our efforts in working with our federal agencies in attacking the drug epidemic that plagues our society and dampens the quality of life within our communities.”
This case was investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers of the Detroit Police Department. It was prosecuted by Assistant United States Attorneys J. Michael Buckley and Trevor Broad of the United States Attorney’s Office for the Eastern District of Michigan.
Clinton County Doctor Sentenced to 30 Months in Prison for Illegally Prescribing OpioidsRead the Press Release
BOWLING GREEN, Ky. – Dr. Michael Lee Cummings, 64, of Albany, Kentucky, was sentenced on July 24, 2019, to 30 months of prison, followed by three years of supervised release, and ordered to pay a fine of $400,000, by District Court Judge Greg Stivers, First Assistant United States Michael A. Bennett announced today. Cummings was also ordered to reimburse the Bureau of Prisons for the costs of his incarceration.
Cummings was originally indicted on April 12, 2017, and on March 19, 2019, he pleaded guilty to 13 counts of illegally prescribing controlled substances outside the course of professional medical practice and without a legitimate medical purpose.
Dr. Cummings ran a family practice in Albany for many years. A federal investigation began in 2015 after a Kentucky Board of Medical Licensure expert found that Dr. Cummings’s treatment of several patients fell below minimum standards of care, and after the Clinton County Coroner noticed several overdose deaths involving Dr. Cummings’ patients, according to a Sentencing Memo filed before the Court. The federal investigation revealed that patients drove from as far as Indianapolis to obtain prescriptions from Dr. Cummings.
According to the Sentencing Memo, the investigation further discovered that every single year from 2009 through 2014, Dr. Cummings was in the top 1% of all Kentucky primary care prescribers for Oxycodone, hydrocodone, and benzodiazepines. Between 2009 and 2014, Dr. Cummings wrote prescriptions for an average of over 249,000 oxycodone pills, 438,000 hydrocodone pills, and 347,000 benzodiazepine pills per year. Each year from 2009 through 2014, Dr. Cummings prescribed approximately 10 times as many hydrocodone and benzodiazepine pills as the average Kentucky primary care prescriber, and approximately 20 times the number of Oxycodone pills as the average Kentucky primary care prescriber. In 2012, for example, Dr. Cummings wrote enough prescriptions to provide every man, woman, and child in Albany with 230 hydrocodone pills, 134 Oxycodone pills, and 178 benzodiazepine pills, the Sentencing Memo said.
As part of the investigation, medical experts reviewed several of Dr. Cummings’s patient charts and found, amongst other things, that Dr. Cummings: 1) failed to establish an objective pain diagnosis; 2) failed to establish treatment plans and goals; 3) excessively prescribed “highly addictive drugs” without sufficient documentation; 4) failed to take action even when patients failed urine drug screens and pills counts; 5) failed to take action when KASPER reports were suspicious for drug abuse; 6) prescribed dangerous combinations of controlled and non-controlled substances; and 7) continued to prescribe opioids and benzodiazepines to patients for years without evidence of clinical improvement, which was detailed in the Sentencing Memo before the Court.
For example, on August 26, 2010, Dr. Cummings’ noted that his office received a report that his patient, S.F., was “selling oxy.” On October 20, 2010, Dr. Cummings received another report that S.F. was “selling meds.” Nonetheless, Dr. Cummings continued refilling S.F.’s prescriptions, and on December 20, 2010, Dr. Cummings inexplicably doubled S.F.’s prescription for oxycodone. Moreover, on December 20, 2010, Dr. Cummings also prescribed Xanax for S.F., even though S.F.’s urine drug screen reflected that S.F. tested negative for the Xanax Dr. Cummings had prescribed in November.
The case was prosecuted by Assistant United States Attorneys David Weiser and Ann Marie Blaylock, and was investigated by the Federal Bureau of Investigation, the Kentucky State Police, and the Kentucky Cabinet for Health and Family Services, Office of the Inspector General.
Bangor Man Sentenced to Four Years for Conspiring to Distribute Heroin, Fentanyl and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Malcom Greenlaw, 48, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to four years in prison and three years of supervised release for conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.” He pled guilty on January 10, 2019.
According to court records, between January 2016 and February 2017, Greenlaw conspired with others to distribute heroin, fentanyl and crack in Penobscot County that was acquired in Waterbury, Connecticut. The defendant distributed drugs in the Bangor area and facilitated the drug dealing activities of others.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Auburn Man Pleads Guilty to Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. —Christopher Lee, 66, of Auburn, pleaded guilty today to one count of production of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Lee repeatedly used a webcam to produce child pornography involving a seven-year-old child and shared the live-streamed video with an individual who lived in England.
This case is the product of an investigation by Homeland Security Investigations (HSI) and the Placer County Sheriff’s Department. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.
Lee is scheduled to be sentenced by U.S. District Judge Kimberly Mueller on Oct. 28. Lee faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was 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 U.S. 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Asbury Park Doctor Sentenced to 27 Months in Prison for Distribution of Steroids and MarijuanaRead the Press Release
TRENTON, N.J. – A doctor with offices in Asbury Park, New Jersey, and Brooklyn was sentenced today to 27 months in prison for unlawfully distributing prescriptions for anabolic steroids and for possessing marijuana with intent to distribute, U.S. Attorney Craig Carpenito announced.
Kevin Custis, 54, of Belle Mead, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of distributing anabolic steroids and one count of possessing marijuana with intent to distribute. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In 2016 and 2017, Custis wrote and delivered numerous prescriptions for various types of anabolic steroids to two patients. Custis admitted that he knew these prescriptions were not for the treatment of any actual medical condition, but were solely for muscle enhancement, beauty, and muscle building and fitness competitions.
When agents and investigators from the Drug Enforcement Administration (DEA) and the Port Authority of New York and New Jersey-Office of Inspector General searched Custis’ home on June 14, 2017, they found over four kilograms of marijuana and over 150 grams of tetrahydrocannobinal oil. Custis admitted that he intended to distribute these substances and that he had no authority under any federal or state law or regulation to do so. Custis also admitted that he prepared marijuana products for patients in his home kitchen.
In addition to the prison term, Judge Sheridan sentenced Custis to three years of supervised release and fined him $10,000.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Field Division; the PANYNJ-OIG, under the direction of Michael Nestor; and the N.J. Division of Consumer Affairs, under the direction of Paul R. Rodriguez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.
Antitrust Division Names Rene Augustine Acting Deputy Assistant Attorney General Responsible for International and PolicyRead the Press Release
Makan Delrahim, Assistant Attorney General in charge of the Department's Antitrust Division, today announced that current Senior Counsel Rene Augustine will serve as Acting Deputy Assistant Attorney General responsible for the Division’s international and policy matters. Augustine will replace outgoing Deputy Assistant Attorney General Roger Alford, who will return to Notre Dame Law School as a tenured professor of law.
“Rene has distinguished herself in her service as Senior Counsel in the Antitrust Division’s Front Office, overseeing both the Competition Policy and Advocacy section, and the Media, Entertainment and Professional Services section. Her proven effectiveness, sound judgment, and excellent diplomacy skills make her uniquely qualified for this position,” said Delrahim.
Recently, Augustine represented the Antitrust Division in Seoul, South Korea, alongside the Office of the U.S. Trade Representative (USTR) in the first-ever consultations on competition-related matters pursuant to the U.S. – Korea Free Trade Agreement.
Augustine has served in all three branches of government and in the private sector. Prior to coming to the Antitrust Division at the Department of Justice, she was Special Assistant to the President and Senior Associate Counsel to the President. She also served as Associate Counsel to the President in the George W. Bush Administration. Previously, Augustine was Senior Counsel to the U.S. Senate Committee on the Judiciary, where she was responsible for Antitrust, Business Rights and Competition issues, and was a lead counsel to the Chairman on passage of legislation increasing the Hart-Scott-Rodino filing threshold and improving the second request process. Augustine clerked for Judge John Hargrove of the U.S. District Court for the District of Maryland. In the private sector, Augustine was an attorney at a national law firm, worked at the Neighborhood Legal Services Program, and was an adjunct faculty member at George Mason University Law School.
Augustine earned her bachelor’s degree from Duke University and her J.D. from Vanderbilt University Law School, where she was an editor of the Vanderbilt Law Review, served on the Vanderbilt Moot Court Board, and graduated Order of the Coif.
Anne Arundel County Convicted Sex Offender Sentenced to 18 Years in Federal Prison for Transportation and Possession of Child Pornography and for Illegal Possession of Firearms by a Previously Convicted FelonRead the Press Release
Baltimore, Maryland - U.S. District Judge Deborah K. Chasanow today sentenced John Patrick Dillon, age 62, formerly of Harwood, Maryland, to 18 years in federal prison, followed by lifetime supervised release, for transportation and possession of child pornography, as well as for illegal possession of firearms by a previously convicted felon. Judge Chasanow ordered that Dillon must pay restitution of $1,000 to one of the child victims. Upon his release from prison, Dillon must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Dillon has been detained since his arrest on May 21, 2018.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to the agreed-upon statement of facts, in 1998, Dillon was convicted in the Circuit Court for Anne Arundel County for sexual abuse of a minor and was sentenced to serve seven years in prison. Dillon has been a registered sex offender since his release from state prison.
Beginning in 2015, Dillon began searching the Internet for child pornography and created a number of videos of the searches he ran and the child pornography he found and viewed. He saved the material to DVDs. Dillon also uploaded images of child pornography to search for other images of child pornography online, which led to a cybertip being sent to the National Center for Missing and Exploited Children (NCMEC). NCMEC then sent the cybertip to the Maryland State Police.
As a result of the investigation, law enforcement executed a search warrant at Dillon’s residence on April 26, 2018. Law enforcement seized digital storage media, a desktop computer, and cellular phone. In addition, law enforcement located and seized a .303-caliber rifle, two 12-gauge shotguns, a pistol, and 63 rounds of ammunition. By virtue of his previous conviction, Dillon was prohibited from possessing firearms or ammunition.
A subsequent forensic examination of the electronic items seized led to the discovery of more than 1,700 images and 320 videos of child pornography, including images documenting the sexual abuse of prepubescent minors, and sadistic, masochistic, and other depictions of violence.
This case was 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 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore, the Maryland State Police, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the federal case.
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Sunday 28 July 2019
Yankton Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Yankton, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on July 26, 2019, by U.S. District Judge Karen E. Schreier.
Lorri Ann Rodgers, a/k/a Lorri Lee Colton, age 57, was sentenced to 72 months in federal prison, followed by 4 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Rodgers was indicted by a federal grand jury on November 6, 2018. She pled guilty on May 8, 2019.
The conviction stemmed from incidents beginning at an unknown date until on or about March 21, 2018, when Rodgers knowingly and intentionally conspire and agreed with others to distribute 50 grams or more of methamphetamine in South Dakota.
This case was investigated by the U.S. Postal Service. Assistant U.S. Attorney Tamara Nash prosecuted the case.
Rodgers was immediately turned over to the custody of the U.S. Marshals Service.
Friday 26 July 2019
Woman Sentenced for Transporting Individuals in Interstate Commerce for ProstitutionRead the Press Release
United States Attorney Peter G. Strasser announced that ANH DUONG, age 72, was sentenced on Thursday, July 25, 2019 for transporting individuals in interstate commerce for prostitution, in violation of Title 18, United States Code, Section 2421(a).
According to court documents, DUONG operated two Asian Massage Parlors in New Orleans, the Lily Pad and the Rose Garden. Both Asian Massage Parlors were commercial sex enterprises. DUONG admitted to knowingly transporting and causing to be transported individuals in interstate commerce from Texas and Mississippi to the Eastern District of Louisiana to engage in prostitution at the Lily Pad and the Rose Garden, in violation of the laws of Louisiana.
DUONG was sentenced to five years probation, one year of home confinement with electronic monitoring and a $100 special assessment fee. DUONG was further ordered: 1) to obtain prior written approval from the Court before entering into any self employment; 2) participate in an approved cognitive behavioral therapeutic treatment program and abide by all supplemental conditions of treatment; and 3) submit to a search of all business and financial records upon reasonable suspicion as requested by the United States Probation Officer.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and Homeland Security Investigations in investigating this matter. Assistant United States Attorneys Julia K. Evans and Brian M. Klebba are in charge of the prosecution.
Warren man sentenced to 15 years in prison for leading arson conspiracy in which two homes he owned were intentionally set on fire so he could collect insurance moneyRead the Press Release
A Warren man was sentenced to 15 years in prison for leading an arson conspiracy in which two homes he owned were intentionally set on fire so he could collect insurance money.
Daryl Evans, 49, previously pleaded guilty to numerous charges, including conspiracy to commit mail fraud, mail fraud, use of fire in commission of a felony, and other charges.
His brother, Maurice Evans, 56, of Youngstown, was previously sentenced to 34 months in prison for his role in setting two fires.
David White, 50, of Warren, was previously sentenced to 52 months for setting one of the fires.
According to court documents and statements made in court:
Daryl Evans purchased 1628 Hamilton Street in Warren in 2011 and 267 Parkman Road NW in Warren in 2014. He purchased insurance policies for both homes and rented them to tenants.
The Evans brothers agreed to set the Hamilton home on fire on two separate occasions – once in August 2013 and again in April 2014. The first fire, in August 2013, damaged the property but did not completely destroy it.
Following each fire, Daryl Evans caused the submission of a false insurance claim to State Farm Insurance. Daryl Evans promised to compensate Maurice Evans with a portion of the fraudulent insurance proceeds.
Maurice Evans hired another person to set the first fire and paid him with cash and drugs. Daryl Evans fraudulently caused State Farm to pay $31,745 directly to him and $6,000 to the city of Warren after the first fire.
Maurice Evans set the second fire, which resulted in State Farm paying $41,136 to Daryl Evans.
Daryl Evans and David White agreed to set fire to 267 Parkman Road NW. White set fire to the house in January 2015, and Daryl Evans compensated him with cash and drugs.
The fire at 267 Parkman Road NW resulted in a payment from State Farm to Daryl Evans of $44,228.
This case was investigated by the Federal Bureau of Investigation and the Warren Fire Department. It was prosecuted by Assistant U.S. Attorney Brad Beeson and James Lewis.
Warren County Man Sentenced to 20 Years in Prison for Production of Child Pornography, Online Enticement, Sending Interstate Extortionate Threats, and StalkingRead the Press Release
NEWARK, N.J. – A Washington, New Jersey, man was sentenced today to 240 months in prison for sex crimes, extortion and stalking – including asking a minor girl to produce explicit images of herself and threatening a second girl if she didn’t agree to meet and date him, U.S. Attorney Craig Carpenito announced.
Brandon McIntyre, 27, was previously convicted of two counts of the production of child pornography, one count of the online enticement of a minor to engage in criminal sexual conduct, two counts of sending interstate extortionate threats, and one count of stalking following a one-week trial before U.S. District Judge Kevin McNulty, who imposed the sentence today in Newark federal court. He was sentenced to 240 months in prison on the first three counts, and 60 months in prison on the remaining three counts, all to run concurrently for a total term of 240 months.
According to the documents filed in this case and the evidence at trial:
McIntyre met various minor girls through Facebook, sometimes as himself, other times pretending to be a teenage girl. Over the course of the correspondence with one female, McIntyre threatened to hurt her boyfriend and kill her family when she refused to go out with him. In his interaction with another girl, McIntyre sent her images of his genitals and demanded that she send nude images of herself. McIntyre threatened the girl, claiming he was a state trooper who could arrest and imprison her family members if she did not send him nude images of herself. When one victim threatened to report McIntyre to her school guidance counselor, McIntyre responded, “Do it and see what happens” and “I can have ur family killed too and make u watch.”
McIntyre admitted to law enforcement that he, at times, pretended to be a teenage girl using the alias “Katie Thompson” in online chats with minors. He said he solicited minors to take and send nude images of themselves to him and threatened to harm minors and their loved ones on multiple occasions if they did not comply with his demands.In addition to the prison term, Judge McNulty sentenced McIntyre to a lifetime term of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Middlebury, Vermont, Police Department, and the Clinton Police Department with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Erica Liu and Senior Trial Counsel Danielle Alfonzo Walsman of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Jim Patton Esq., Hackettstown, New Jersey
Virginia Man Pleads Guilty to Sexually Assaulting Intoxicated Woman and Aiding his Cousin in Doing the SameRead the Press Release
WASHINGTON – Omar Afzali, 29, of Woodbridge, Virginia, pleaded guilty today to sexually assaulting an incapacitated woman in July 2016, and then aiding his cousin in doing the same thing, at a hotel in Northwest Washington, U.S. Attorney Jessie K. Liu announced today.
Afzali pleaded guilty to two counts of second-degree sexual abuse, one for his own sexual assault, and the other for aiding and abetting the sexual assault committed by his cousin. The Honorable Todd E. Edelman scheduled sentencing for October 18, 2019. Afzali could face up to forty years in prison.
According to the government’s evidence, the victim first met Afzali after unsuccessfully attempting to hail a cab upon leaving a D.C. night club in the early morning hours of July 9, 2016. The victim, who became intoxicated while socializing with her friends earlier that night, accepted Afzali’s offer of a ride. Afzali ended up taking the woman to a hotel on Rhode Island Avenue, N.W. Security camera video at that hotel showed that the victim was so incapacitated by alcohol and other substances upon arriving at the hotel that, even with Afzali’s assistance, she was stumbling and bumped, face first, into a hallway wall. When Afzali and the woman got to the hotel’s front desk, Afzali had to hold her up so she would not fall down while he filled out the hotel’s paperwork. While Afzali signed them into the hotel, security cam video shows that the victim put her head down on the desk and did not lift her head again until Afzali pulled her away toward the hotel’s elevators.
Afzali took the victim to a hotel room where, he admitted, he engaged her in sexual acts, including anal intercourse. Afzali further admitted that at the time he had sex with the victim, she was so incapacitated that she was unable to decline, or even to communicate her unwillingness, to engage in sex with Afzali.
When Afzali finished sexually assaulting the victim, he left the hotel and immediately contacted one of his male cousins, telling his cousin about the victim and how he had just had sex with her. Afzali drove to pick up his cousin, and then drove his cousin back to the hotel, giving his cousin the card key to the hotel room in which Afzali had left the incapacitated victim. Afzali told his cousin that he would find both the victim, and some unused condoms, in that hotel room. Afzali’s cousin then went to the hotel room and engaged the victim in multiple acts of vaginal intercourse. The cousin later testified that, during his encounter with the victim, she could barely function and was only partially conscious.
Afzali admitted at the plea hearing that he aided and abetted his cousin’s sexual assault of the victim. He further admitted that, during the time his cousin was sexually assaulting the victim, both Afzali and his cousin knew, or had reason to know, that the victim was too incapacitated to know what was happening, let alone to consent to having sex with them.
Although the victim had no recollection of the sexual assaults or of being with either Afzali or his cousin that night, DNA analysis showed that both men’s DNA was on swabs taken of the victim’s intimate body parts.
In announcing the plea, U.S. Attorney Liu commended the work of the Sexual Assault Unit of the Metropolitan Police Department, the District of Columbia Department of Forensic Sciences, the D.C. Office of the Chief Medical Examiner, and the District of Columbia Forensic Nurse Examiners. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation, and Forensic Operation/Program Specialist Elizabeth Marrero, who assisted with DNA issues; Assistant U.S. Attorneys Sharon Marcus-Kurn, Mark O’Brien, Amy Zubrensky and Sarah McClellan; Paralegal Specialists Brenda C. Williams and Tiffany Jones; Supervisory Victim Witness Service Coordinator Katina Adams-Washington; and Victim/ Witness Advocate Juanita Harris.
Finally, U.S. Attorney Liu commended the work of Assistant U.S. Attorneys J. Matt Williams and Peter V. Taylor, who investigated and prosecuted this case.
Violent Felon Sentenced for Illegally Entering U.S. for Sixth TimeRead the Press Release
ALEXANDRIA, Va. – An illegal alien and violent felon who has previously illegally entered the United States on at least six occasions, was sentenced to nearly two years in prison for illegally reentering the United States.
“Diaz-Ramos is a violent felon who has demonstrated a blatant disregard for our immigration laws,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “After completing his prison sentence, Diaz-Ramos will once again be deported at taxpayer expense. This is a serious issue of public safety and national security, and we remain committed to prioritizing criminal immigration enforcement.”
According to court documents, Jose Edgardo Diaz-Ramos, 37, is a native and citizen of Honduras. Prior to his previous removal, Diaz-Ramos was convicted of a violent felony in California of willful infliction of corporal injury on a spouse. In 2014, after serving a sentence of six years in prison, Diaz-Ramos was deported at taxpayer expense for a fifth time. Sometime thereafter, Diaz-Ramos illegally reentered the United States again. In May, Diaz-Ramos pleaded guilty to illegal reentry of a removed alien after commission of a felony.
“The arrest and prosecution of Diaz-Ramos is another example of ICE officers prioritizing violent offenders who threaten our nation’s safety and security,” said Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C. “Not only did Diaz-Ramos repeatedly violate our immigration laws, but he has also victimized our neighbors. He will now again rightfully be removed from the U.S.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Brendan P. Geary prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-216.
Vallejo Man Sentenced to 4 Years in Prison for Multimillion Dollar Mortgage and Foreclosure Rescue Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Zalathiel Aguila, 46, of Vallejo, to four years in prison for conspiracy to commit wire fraud affecting a financial institution and bank fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, between September 2004 and February 2008, Aguila and co-conspirators Sergio Roman Barrientos and Omar Anabo operated Capital Access LLC, in Vallejo, a company that preyed on homeowners nearing foreclosure. The defendants convinced homeowners to sign over the title to their homes to Capital Access and then spent any equity those homeowners still had, which was then used for operational expenses of the scheme and personal expenses of Aguila and his co-conspirators.
The defendants also used straw buyers to obtain home loans under false pretenses and defraud federally insured financial institutions out of millions of dollars. Vulnerable homeowners across California lost their homes and savings as a result of the scheme, and lenders lost an estimated $10.47 million from the fraud.
This case was the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Matthew M. Yelovich prosecuted the case.
Aguila remains out of custody pending his surrendering for service of his sentence on Oct. 25. Barrientos was sentenced on Nov. 2, 2018, to 14 years in prison for his role in the scheme, and Anabo (charged elsewhere) is scheduled to be sentenced on Aug. 16.
United States Files $100 Million Civil Complaint Against Digital Currency Exchange BTC-e and Chief Owner-Operator Alexander VinnikRead the Press Release
SAN FRANCISCO– The Department of Justice filed a civil complaint in federal court against digital currency exchange BTC-e, also known as Canton Business Corporation, and one of its chief owners and operators Alexander Vinnik, announced United States Attorney David L. Anderson and U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) Director Kenneth A. Blanco. The complaint seeks to enforce monetary penalties FinCEN assessed against BTC-e and Vinnik for alleged violations of the Bank Secrecy Act (BSA), 31 U.S.C. §§ 5311-14 and 5316-32.
BTC-e is a digital currency exchange organized as a corporation under the laws of Cyprus and/or the Seychelles Islands. BTC-e operated in Bulgaria, the Seychelles Islands, and other jurisdictions, including the Northern District of California, and allowed its users to buy and sell bitcoin and other digital currencies anonymously through its web domain, btc-e.com. Vinnik, a Russian national, occupied a senior leadership position within BTC-e, controlled multiple BTC-e administrative accounts used to process BTC-e’s transactions, and participated in the direction and supervision of BTC-e’s operations and finances. The civil complaint alleges that Vinnik operated several BTC-e accounts, including some tied to thefts from other virtual currency exchanges such as Mt. Gox. Vinnik is currently incarcerated in Greece and is the subject of an extradition request to the Northern District of California in connection with criminal charges filed in this district.
On July 26, 2017, FinCEN assessed monetary penalties against BTC-e and Vinnik for violations of the BSA. FinCEN assessed $12 million in penalties against Vinnick and $88,596,314 in penalties against BTC-e for BTC-e’s alleged willful violations of the BSA. The civil complaint seeks to enforce the monetary penalties issued by FinCEN.
According to the complaint, FinCEN assessed penalties based, in part, on the following conduct:
- Failure to Register as an MSB: BTC-e did not register with FinCEN as a Money Services Business (MSB). The BSA defines an MSB and requires, among other things, MSBs to register with FinCEN within 180 days of beginning operations. In this case, FinCen assessed penalties, in part, because the agency concluded BTC-e was an MSB and failed to register with the agency.
- Failure to Establish Anti-Money Laundering Programs and Procedures: Under the BSA, an MSB must develop, implement, and maintain an effective anti-money laundering (AML) program that is reasonably designed to prevent the MSB from being used to facilitate money laundering and the financing of terrorist activities. FinCEN’s fines were based, in part, on BTC-e’s failure to have reasonable AML policies or procedures in place to prevent criminal activity on the digital currency exchange.
- Failure to File Suspicious Activity Reports: Under the BSA, an MSB must file a suspicious activity report (SAR) if it becomes aware of transactions that the MSB “knows, suspects, or has reason to suspect” are suspicious where those transactions involve the MSB and aggregate to at least $2,000 in value. FinCEN’s penalties were assessed, in part, because BTC-e did not file SARs and instead received proceeds from ransomware schemes, transferred funds to and from known dark net marketplaces, and deposited funds stolen from other digital currency exchanges into BTC-e accounts that Vinnik controlled.
This case is being handled by Assistant United States Attorney Kirstin Ault and U.S. Department of Justice Trial Attorney John Siemietkowski with assistance from Tina Louie.
Union County Man Charged with Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Union County man has been charged with possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced today.
Joseph Hinksmon, 41, of Cranford, New Jersey, is charged in a criminal complaint with one count of possession of child pornography. He is expected to appear later this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint, filed today:
On or about July 24, 2019, law enforcement lawfully obtained from Hinkmon’s residence multiple computers and electronic storage media belonging to Hinksmon, which contained approximately 10,000 images and 1,000 videos of child pornography, including images of prepubescent children being sexually abused.
The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Craig Carpenito credited Special Agents with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Cymetra Williams of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense Counsel: Lisa Baitsell, Esq., White Plains, New York
U.S. Attorney’s Office, Columbia Police Department, and Richland County Sheriff’s Department Announce Public Service Campaign to Reduce Gun ViolenceRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon, along with Columbia Police Chief W. H. “Skip” Holbrook and Richland County Sheriff Leon Lott, announced their latest effort to reduce, prevent, and deter violent gun crimes in the City of Columbia and Richland County.
In the Greenview community of North Columbia, the three law enforcement agencies and community partners unveiled a public service campaign designed to comprehensively reduce violent crime while making a lasting impact. Last year, the United States Department of Justice unveiled Project Safe Neighborhoods (PSN) 2.0, the centerpiece of the Department’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. The initiative fosters safer neighborhoods through sustained reduction in violent crime, so families, especially children, can thrive in safety and without the fear of crime.
“We did not choose Greenview because it has the worst problem with violence,” said U.S. Attorney Lydon. “We chose it because we believe it is a community that recognizes the need to, and cares enough to, be vigilant about what is going on around you. The people of North Columbia have the right to live in peace, free from chaos and danger. We have a responsibility to make sure that you don’t have to hide in your homes.”
Chief Holbrook said, “We have adopted an intelligence-led, data-driven approach to identifying where the crime is occurring, when it is occurring, and who is most likely responsible. It’s not just putting cops on dots of crime. But putting a face with the dots and tasking the best law enforcement resources possible to bring those offenders to count.” He added, “We need our neighbors to help us. Harden your neighborhoods. Lock your cars, secure your firearms, report suspicious activity. Report all crime. Know your neighbors and, most importantly, know your police officers and deputies.”
Sheriff Lott said, “We’re all in this together. It’s not just a City thing, it’s not a County thing. It’s our thing. This is nothing new for us to come together and work. We’re going to come together and we’re finding more and more ways of coming together to work as one. Just like this Greenview community, it may be in the City of Columbia but it’s also in Richland County. These people who live here know, we will be here too. You will not only see the City cars; you will see the County cars. We listen to you. You tell us what’s going on in your neighborhood.”
One of PSN’s major goals is to implement precision policing, in which law enforcement partners work to identify neighborhoods with a violent crime problem, identify and arrest violent and repeat offenders, then hold them accountable through federal prosecution and federal prison time.
Another part of the PSN initiative is crime prevention. This year, with the financial assistance of Department of Justice grant funds, Columbia and Richland County citizens will start seeing and hearing public service announcements (PSAs) on local television and radio stations, on billboards, and on a Comet bus to drive home the importance of reducing, preventing, and deterring criminal activity.
The overall effort to lower crime cannot be accomplished solely through law enforcement arrests. Partnerships with a heightened emphasis on community engagement can make a lasting impact and pave the way for safer communities.
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For more information about Project Safe Neighborhoods, visit the following websites:
www.Justice.gov/psn, www.ColumbidPD.net, www.RCSD.net
Two McAlester Individuals Indicted for Drug Conspiracy, Heroin Distribution Resulting in DeathRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that McAlester, Oklahoma, residents Callie Marie Woolsey, age 31, and Darron Ray Aldridge, age 41, were each Indicted for Drug Conspiracy Resulting In Death, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), and for Distribution And Use Of Heroin Resulting In Death, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 2.
The Indictment alleges that beginning on or about December 16, 2018 and continuing until on or about December 17, 2018, Callie Marie Woolsey and Darron Ray Aldridge knowingly and intentionally conspired together to knowingly and intentionally distribute heroin, a Schedule I controlled substance. The Indictment also alleges the defendants knowingly and intentionally distributed heroin, and serious bodily injury to and the death of A.B. resulted from use of the heroin.
The McAlester Police Department, the Pittsburg County Sheriff’s Office, the District 18 Drug and Violent Crimes Task Force, and the Drug Enforcement Administration each participated in the investigation that lead to the Indictment. Assistant United States Attorney Sarah McAmis represents the United States.
The above named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
Two Eastern Kentucky Counties Agree to Settle Overpayment Liability for Ambulance ClaimsRead the Press Release
LEXINGTON, Ky. - Two Eastern Kentucky counties have agreed to pay a total of $130,393 to the United States, resolving assertions that the submission of their claims to Medicare for non-emergency ambulance transports that did not meet Medicare’s reimbursement criteria.
Medicare pays for scheduled non-emergency ambulance transports only if the patient’s condition is such that taking other forms of transport would endanger the patient’s health and a physician provides a written order certifying that condition (known as “physician certification statements”).
Gallatin County Fiscal Court has agreed to pay $100,000 to the federal government to resolve claims that it routinely transported a Medicare beneficiary to and from dialysis, without medical need and without a physician certification statement, from January 1, 2013 to November 30, 2016. In addition to the monetary payment, Gallatin County also agreed to provide to all of its ambulance employees training on Medicare’s coverage requirements, including medical necessity and physician certification requirements.
Wayne County Fiscal Court has agreed to pay $30,393 to the federal government for the transport of a Medicare beneficiary to and from dialysis, without a proper physician certification statement, from September 1, 2013 to November 30, 2013. Wayne County self-disclosed the overpayments arising from the invalid certification statement and fully cooperated with the United States’ investigation. As part of the settlement agreement, Wayne County has agreed to provide training to other county ambulance services on what it has learned about medical necessity and physician certification requirements.
“When the Medicare Program pays for services that have not been properly justified, it deprives the program of precious resources to meet the needs of its beneficiaries,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Non-emergency ambulance transports to and from dialysis can be as frequent as several times a week and represent a significant cost to the Program. Because these services represent significant taxpayer expenses, it is critical that ambulance providers understand and comply with Medicare’s rules on medical necessity. A physician certification statement is not merely a technical requirement, but ensures that Medicare is only reimbursing these services for patients who truly need it. We appreciate Wayne County for self-disclosing and are glad both counties are willing to educate themselves and others on these rules.”
The Gallatin County case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. Assistant United States Attorneys Christine Corndorf, Jennifer Williams, and Mary Melton represented the United States in these matters.
The United States Concludes Prosecution of the Ñeta Prison GangRead the Press Release
SAN JUAN, P.R. – Yesterday, the United States successfully concluded its third trial against the top leaders and enforcers of La Asociación ÑETA prison gang in Puerto Rico. The three RICO trials resulted in the conviction of 14 ÑETA members to include the organization’s supreme leader and his main lieutenants and assassins. In total, the prosecution of La Asociación ÑETA resulted in the conviction of over 40 of the gang’s most important members.
The United States’ prosecution of La Asociación ÑETA began in the year 2016 when a federal grand jury issued an indictment charging over 40 members of this group for conspiring to violate the RICO Act, drug trafficking, and murder in aid of racketeering. La Asociación ÑETA was a criminal organization that engaged in drug trafficking and murder in the prisons of the Puerto Rico Department of Corrections and Rehabilitation (“PRDCR”). The main purpose of the organization was to make money. Originally, inmates formed La Asociación ÑETA as a means to advocate for the rights of inmates of the PRDCR. The enterprise, however, evolved into a criminal organization that engaged in drug trafficking and murder within the prisons of the PRDCR.
The enterprise made money from introducing and distributing multi-kilogram quantities of cocaine, marijuana, and heroin into the PRDCR prisons for profit and engaging in murders for hire. They introduced drugs into the prisons with the help of corrupt PRDCR correctional officers, civilians that worked inside of the prison system, people who visited inmates, and persons that from outside the prisons, threw drugs into the facilities (known as “pitcheos”), which were caught by members of the enterprise. In addition, members of the enterprise and their associates introduced cellular telephones into the prisons and charged a fee to other inmates for using the same. Members of the enterprise would use cellular phones to engage in drug trafficking and murder. Specifically, people outside of prison hired La Asociación ÑETA to kill persons who were incarcerated in the prisons of the PRDCR. Murders perpetrated by the organization included that of Mario Montañez-Gómez, a.k.a. “Emme” on August 27, 2014, and Alexis Rodríguez-Rodríguez, a.k.a. “Alexis El Loco” on November 6, 2014.
The convicted defendants included the leadership of the enterprise, its drug trafficking network, corrupt PRDCR correctional officers, and the members that perpetrated murder in furtherance of the enterprise. The ÑETA prosecution disrupted and decimated the gang. As a result, the United States helped clean up the PRDCR by ridding it of corrupt officials and holding accountable those responsible for introducing drugs and murdering others in prison for profit.
“I want to acknowledge the dedication and commitment of the Assistant US Attorneys and support staff who worked so hard in the investigation and prosecution of this violent gang, the FBI, and the Department of Corrections agents and officials who participated in this substantial investigation which after three years resulted in today’s convictions,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The success of this operation shows the continued teamwork of federal law enforcement and our state and local partners to reduce gang violence inside the prisons in Puerto Rico.”
“This prison cartel, which specialized in murder, assault, and drug trafficking, was as dangerous, and as sophisticated, as any organized crime network in modern history. Today’s verdicts represent a major milestone in federal law enforcement’s ability to investigate and prosecute violent crime, regardless of where it takes place,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Field Office.
Assistant United States Attorney Victor O. Acevedo-Hernández led the prosecution of this case. Assistant United States Attorneys Alexander Alum and Scott Anderson were co-counsel at trial. The Federal Bureau of Investigation worked with the U.S. Attorney’s Office for the District of Puerto Rico in the investigation.
As a result of the ÑETA prosecution the following defendants are serving sentences that go up to life imprisonment: Fernando García-Marquez, a.k.a. “Fernan Sandwich/Emparedado/ Fernan/Carlos Vega;” Cynthia González-Landrau, a.k.a. “La Cana/La Princesa/La Presidenta;” Rolando Millán-Machuca, a.k.a. “Rolo;” Miguel Rivera-Calcaño, a.k.a. “Guelo/ Kikirimiau;” Roberto Casado-Berríos, a.k.a. “Bobe/Bobel;” Iván Ayala-Hernández, a.k.a. “Bambani/Bambo;” Giordano Santana-Meléndez, a.k.a. “Viejo Ten;” Carlos Báez-Figueroa, a.k.a. “Carlitos Guaynabo;” José Trinidad-Jorge, a.k.a. “Trini;” Ángel Bermúdez-Cartagena, a.k.a. “Apache/El Doctor;” José Cintrón-Mojica, a.k.a. “Jowito;” Victor Solano-Moreta, a.k.a. “Caballo;” José Castoire-Sánchez; Luis Ayuso-Walker, a.k.a. “Buringo;” Juan Lozada-Delgado, a.k.a. “Chino San Lorenzo;” Billy Andino-De Jesús, a.k.a. “Billy Cupey/Billy El Calvo;” Luis Rojas-Llanos, a.k.a. “Cachorro/Kchorro;” George Torres-Rodríguez, a.k.a. “Gordo Comerio;” José L. Nieves-Torres; Orlando Ruiz-Acevedo, a.k.a. “Gordo Ponce;” Raul D. Rosario-Maldonado, a.k.a. “Davi/Davo;” Juan R. Cruz-Santana, a.k.a. “Roldán;” José Marrero-Figueroa, a.k.a. “Tito San José;” Ramón Morales-Sáez, a.k.a. “Moncho/Monchi;” Carlos Santiago-Rivera, a.k.a. “Black/Blacky/El Negro;” José Díaz-López, a.k.a. “Culo De Pollo;” Jesús P. O’neill-Gómez, a.k.a. “Pastor;” Ángel I. Díaz-Santiago; and Pedro Fontanez-Pérez.
The following defendants were likewise convicted and are awaiting their sentence: Avelino Millán-Machuca, a.k.a. “Papito Machuca/El Fuerte/Viejo/Gordo;” Aníbal Miranda-Montañez, a.k.a. “Jowy;” Freddie Sánchez-Martínez, a.k.a. “Casco;” Ángel Cruz-Barrientos, a.k.a. “Diego/Cloche;” Alex Miguel Cruz-Santos, a.k.a. “Alex Cuquito;” José J. Folch-Colón, a.k.a. “Joel Folch/Gordo Folch;” Juan J. Claudio-Morales, a.k.a. “Claudio Canales/Claudio El Gordo;” Eduardo Rosario-Orangel, a.k.a. “Barba/Cholón;” Luis H. Quiñonez-Santiago, a.k.a. “Hiram;” Augusto Christopher-Lind, a.k.a. “Bengie Loiza;” Luis D. Ramos-Báez, a.k.a. “Danny Power;” David González-De León, a.k.a. “Bebe Cupey;” Osvaldo Torres-Santiago, a.k.a. “Bombilla/Baldo/Baldito;” José Velázquez-Maldonado, a.k.a. “Batata;” Roberto Martínez-Rivera, a.k.a. “Matatan;” José Sánchez-Laureano, a.k.a. “Veterano;” José González-Gerena, a.k.a. “Perpetua;” Andrés Del Valle-Ortega, a.k.a. “Randy/Andy Caimito;” and José R. Andino-Morales, a.k.a. “Gladiola.”
Texas Man Convicted of Multiple Federal Criminal Charges for Orchestrating Phishing Attack on Los Angeles County Superior CourtRead the Press Release
LOS ANGELES – A suburban Houston resident has been found guilty by a jury of 27 federal criminal charges for hacking into the Los Angeles Superior Court computer system and then using it to send approximately 2 million malicious phishing emails.
Oriyomi Sadiq Aloba, 33, of Katy, Texas, was found guilty late Thursday afternoon after a three-day trial. The jury found Aloba guilty of one count of conspiracy to commit wire fraud, 15 counts of wire fraud, one count of attempted wire fraud, one count of unauthorized impairment of a protected computer, five counts of unauthorized access to a protected computer to obtain information, and four counts of aggravated identity theft. Aloba was taken into federal custody immediately after the verdict was read.
According to the evidence presented at trial, in July 2017, Aloba and his co-conspirators targeted the Los Angeles Superior Court for a phishing attack. During the attack, one court employee’s email account was compromised and sent an email – without her authorization – to co-workers purporting to be from the file hosting service Dropbox. In fact, it was a phishing email that contained a link to a phishing website that asked for the users’ Superior Court email addresses and passwords, court papers state. Thousands of court employees received the Dropbox email and hundreds disclosed their email credentials to the attacker. Multiple court employees’ emails then were used by the attacker to send out millions of phishing emails.
These additional phishing emails purported to be communications from American Express, Wells Fargo, and other companies, and led victims to a webpage that asked for their banking login credentials, personal identifying information, and credit card information. The link for the fake American Express website used source code that designated Aloba’s email account as the delivery address for the information that the victims input into the website, according to court documents.
Investigators executed a search warrant at Aloba’s residence in Texas, which revealed a thumb drive in a toilet, a damaged iPhone in a bathroom sink, and – in the closet of a spare bedroom – a laptop computer with a smashed screen that was smeared with fresh blood. Nearby, agents found a broken mug, which apparently was used to smash the laptop computer. At the time of his arrest, Aloba had blood on his hands and agents saw him picking something out of his hands.
During the search, agents retrieved from the thumb drive and bloody laptop dozens of phishing kits, which is software designed to facilitate a phishing attack, including the American Express phishing kit used in the court attack.
As a result of the phishing attack, the court suffered monetary losses, including more than $45,000 in employee time paid to respond to the attack that would have otherwise been spent on ordinary work activities. Additionally, there were more than $15,000 in combined actual and intended losses to credit card victims, according to court documents.
United States District Judge R. Gary Klausner has scheduled a sentencing hearing for October 21, where Aloba will face a statutory maximum sentence of more than 350 years in federal prison.
Aloba was initially charged by the Los Angeles County District Attorney, but the matter was referred to the United States Attorney’s Office for federal prosecution.
A co-defendant, Robert Charles Nicholson, 28, of Brooklyn, New York, pleaded guilty last month to one count of conspiracy to commit wire fraud. His sentencing hearing is scheduled for September 30. Aloba’s other three co-defendants remain at large outside the United States.
This matter was investigated by the Federal Bureau of Investigation and the Los Angeles County District Attorney’s Office.
This case is being prosecuted by Assistant United States Attorneys Robyn K. Bacon and Ryan White of the Cyber and Intellectual Property Crimes Section.
Suspect in Gun Store Burglaries in Two Different Counties Charged in Federal CourtRead the Press Release
A 38-year-old man was charged today in U.S. District Court in Seattle with two counts of theft from a federal firearms licensee in connection with gun store burglaries in Clallam and Skagit Counties, announced U.S. Attorney Brian T. Moran. JOEY A. MAILLET will make his initial appearance on the complaint at 2:00 today. MAILLET has been held on local burglary charges since May 10, 2019, when he was arrested by Ferndale Police. MAILLET was transferred to federal custody from Clallam County.
According to records filed in the case, forensic evidence and surveillance video link MAILLET to the April 13, 2019, burglary of Fred’s Guns in Sequim, Washington. In that case, the suspect used a backhoe to ram the doors of the store and then broke glass display cases to steal 26 firearms. While the Sequim burglary was still under investigation, there was a second gun store burglary on May 3, 2019, at All American Armory in Bow, Washington. In that case, surveillance showed the suspect used a stolen pick-up truck to back into the doors of the store, shattering them. The suspect then used a garbage can to load up 13 rifles from the store and drove away with them in the stolen pick-up.
The pick-up truck was ultimately found abandoned in Birch Bay State Park in Whatcom County, Washington. Shattered glass was in the truck bed, as well as a stolen boat motor and battery. The truck was reported stolen from an agricultural operation not far from the Bow gun store, and the boat motor and battery were reported stolen by a resident of Ferndale, Washington.
On May 10, 2019, a Ferndale Police Officer encountered MAILLET and arrested him on an outstanding warrant for an Everett, Washington, burglary. After obtaining a court-authorized search warrant, investigators determined items in MAILLET’s backpack linked him to the thefts at the Bow gun store.
MAILLET was held on state charges in Clallam County in connection with the Fred’s Guns burglary. Those charges were dismissed earlier this week in favor of federal prosecution.
Only one of the stolen firearms has been recovered.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Theft from a federal firearms licensee is punishable by up to ten years in prison.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Clallam County Sheriff’s Office, Sequim Police Department, Washington State Patrol, Skagit County Sheriff’s Office, Ferndale Police Department, and Washington State Parks Rangers.
The case is being prosecuted by Assistant United States Attorney Erin H. Becker with assistance from Clallam County Deputy Prosecutor Jesse Espinoza.
maillet_complaint.pdfSt. Croix ManWho Escaped from Golden Grove and Was Found in Guayanilla, Puerto Rico Sentenced for Escape from CustodyRead the Press Release
St. Thomas, USVI – Nathaniel Thomas, Jr., 30 of St. Croix, was sentenced Friday for escape from custody, United States Attorney Gretchen C.F. Shappert announced.
Chief District Court Judge Wilma A. Lewis sentenced Thomas to 28 months of imprisonment consecutive to the federal sentence he is currently serving, and three years of supervised release. Judge Lewis also ordered him to pay a $100 special assessment.
On March 19, 2019, Thomas pleaded guilty to escape from custody. According to the plea agreement filed in court, on March 13, 2018, the defendant was convicted in March of 2018 of federal and local criminal charges, including felon in possession of a firearm; unauthorized possession of a firearm; and reckless endangerment in the first degree in the District Court of the Virgin Islands, St. Croix Division. Upon his conviction, the District Court Judge remanded the defendant into custody pending sentencing.
The U.S. Marshal Service transported the defendant to the Golden Grove Adult Correctional Facility on St. Croix, where federal prisoners are detained pursuant to an agreement with the Attorney General of the United States. On March 15, 2018, two days after being convicted by a federal jury, the defendant escaped from the Golden Grove facility. Following an extensive manhunt by federal and territorial law enforcement, Thomas was located in Guayanilla, PR on April 7, 2018 and taken into custody.
This case was investigated by the United States Marshal Service. The case was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
St. Augustine Man Pleads Guilty to Attempting to Entice and Meet Two Young Children to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Brian Ray Dunlap (67, St. Augustine) has pleaded guilty to attempting to entice two young children to engage in illegal sexual activity. Dunlap faces a mandatory minimum penalty of 10 years, and up to life, in federal prison, and a potential life term of supervised release. A sentencing date has not yet been set.
According to court documents, on October 6, 2018, a detective with the St. Johns County Sheriff’s Office, who was posing online as a custodial family member of two children (ages 9 and 12), received an email message from Dunlap, who identified himself as “Brian.” Between October 6, 2018 and October 9, 2018, Dunlap and the undercover detective exchanged emails and text messages about Dunlap’s desire to meet the “children” to engage in sexual activity with them. Dunlap advised that he was an amateur photographer and that he wanted to “[t]ake their pictures naked” and perform oral sex on them. Dunlap further provided the undercover detective with graphic details about the sexual acts that he wished to perform on the two “children,” and offered to pay the undercover detective $200 for sex with them and pornographic pictures of the “children.”
On October 9, 2018, Dunlap traveled to a prearranged location in St. Johns County to meet the undercover detective and the two “children.” Upon his arrival, he was arrested. During an interview, Dunlap admitted that he had responded to the online notice posted by the undercover detective, had engaged in online conversation with that person, and that he had traveled to the particular location to meet that person and the two “children.”
This case was investigated by the St. Johns County Sheriff’s Office and the Federal Bureau of Investigation (Jacksonville Office). It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please
visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rochester Man Pleads Guilty to Two Armed RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Malik Lott, 25, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to two counts of Hobbs Act Robbery. The charges each carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that in the early morning hours of December 28, 2018, Lott went to the McDonald’s restaurant on East Avenue in Rochester with co-defendants Lavon Wims and Juwan Baldwin. Lott and Wims entered the restaurant, and Wims held a knife to the throat of an employee. Wims then dragged the employee to the cash register—and then to the safe—and demanded money. At the same time, Lott displayed what appeared to be a handgun to another McDonald’s employee. Wims and Lott then fled the McDonald’s with the stolen cash.
On January 23, 2019, Lott went to Jordy’s Spirits on Dewey Avenue in Rochester with co-defendants Lavon Wims and Kayla Dade. Lott and Wims entered the store, and Wims pointed what appeared to be a gun at the store employee, and demanded money. Lott waited by the front door of the store, and after Wims told the employee to give them money, Lott then assisted Wims in removing cash from the register drawer. Wims and Lott then fled the store with the stolen cash.
Charges remain pending against co-defendants Baldwin, Wims, and Dade. The fact that defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the New York State Police, under the direction of Major Eric Laughton; and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
Sentencing is scheduled for October 28, 2019, at 3:30 p.m. before Judge Wolford.
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Rochester Man Pleads Guilty in Gun Store BurglaryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Luis D. Marcano-Agosto, 34, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to theft of firearms from a Federal Firearms Licensee and possession of firearms by a convicted felon. The charges each carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that Marcano-Agosto, along with co-defendants Dakota Sarfaty and Marcos D. Guzman, broke into Chinappi’s Firearms & Supplies, a gun store located at 5016 West Ridge Road in Spencerport, NY, in the early morning hours of August 16, 2018. Sarfaty entered the basement through the hole in the wall and, together with Marcano-Agosto and Guzman, stole approximately 87 firearms, almost all of which were handguns. Thereafter, Guzman, Sarfaty and Marcano-Agosto sold many of the firearms on the streets of Rochester. Investigators recovered 14 of the stolen firearms the day after the theft.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
Sentencing is scheduled for October 28, 2019, at 4:00 p.m. before Judge Wolford.
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Repeat offender sentenced to prison for second federal firearm convictionRead the Press Release
ATLANTA - Mark Antonio Sanders has been sentenced for possession of a firearm by a convicted felon and possession of a firearm with an obliterated serial number. Sanders has previous felony convictions related to multiple Atlanta shootings, including a 2004 federal conviction for possession of a firearm by a convicted felon.
“Repeat offenders in possession of a firearm pose one of the most serious threats to public safety in our communities,” said U.S. Attorney Byung J. “BJay” Pak. “Sanders’ history of armed violence demonstrates his lack of concern for the welfare of others and his disregard for the law.”
“This case involves the illegally possessed firearm in the hands of a criminal,” said ATF Assistant Special Agent in Charge Beau Kolodka. “It demonstrates the cooperation that exists between the Atlanta Police Department and ATF.”
“We appreciate the U.S. Attorney’s Office commitment to ensuring these armed felons serve meaningful prison sentences,” said Chief Erika Shields. “We see, all too often, the havoc that the proliferation and use of guns by criminals causes on our streets.”
According to U.S. Attorney Pak, the charges and other information presented in court: On May 6, 2017, Atlanta Police Department officers responded to gunfire on the porch of a residence in Atlanta. The victim notified police that an unknown man, later identified as Sanders, struck him on the side of his face with a firearm and then shot him through the top of his foot. On May 30, 2017, officers spotted Sanders a few blocks from the scene of the shooting. Sanders then led police on a foot chase during which he briefly crouched behind the “Welcome to East Atlanta” sign. Once Sanders was detained, officers searched behind the sign and located a loaded Jiminez Arms 9mm pistol with a scratched off serial number.
Mark Antonio Sanders, 50, of Atlanta, Georgia, was sentenced to seven years in prison to be followed by three years of supervised release as a result of a guilty plea on April 30, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Atlanta Police Department.
Assistant U.S. Attorney Irina Dutcher prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] 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.
President of Labor Union Arrested for Demanding and Accepting BribesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General (“DOL-OIG”), Darren Cohen, New York Regional Director, U.S. Department of Labor Employee Benefits Security Administration (“DOL-EBSA”), and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that GLENN BLICHT, who currently serves as the president of a labor union (the “Union”), was arrested today for honest services fraud and a violation of the Taft-Hartley Act for demanding and accepting at least $150,000 in bribe payments from an employer (the “Employer”). BLICHT will be presented today before U.S. Magistrate Judge Stewart D. Aaron.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Glenn Blicht abused his position as the president of a labor union to line his own pockets. He allegedly demanded and received bribes and, in return, he did not fight for his union members – the hard-working individuals whose interests he was duty-bound to protect. Together with our law enforcement partners, this Office is committed to rooting out corruption in union leadership.”
DOL-OIG New York Region Special Agent-in-Charge Michael C. Mikulka said: “Labor racketeering investigations that involve bribing union officials are an important part of the U.S. Department of Labor Office of Inspector General’s mission. We will continue to work with our law enforcement partners to vigorously investigate all types of labor racketeering allegations.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Criminals are asked to do things all the time for money, but sometimes they’re asked not to do things for money. Glenn Blicht was supposed to be representing the best interests of hundreds of people who had faith in the fact that he was helping them, but he allegedly decided to help himself to bribes the other side was offering him. It’s often hard to see what’s actually going on just under the surface, but as the FBI, we have the ability to dig into criminal behavior and expose fraudsters for what they truly are.”
According to the allegations contained in the Complaint against GLENN BLICHT[1]:
From 2009 through the present, BLICHT served as an officer of the Union, including as its president for many years. In that role, BLICHT had a duty to act in the best interests of the Union and its members, including by avoiding personal financial conflicts of interest with the Union. Nevertheless, BLICHT demanded and received cash payments from the Employer, which employed a number of members of the Union. In exchange for these bribes, BLICHT declined to file arbitration claims on behalf of Union members. In total, BLICHT received at least approximately $150,000 in bribes from the Employer over approximately 10 years.
In communications, a number of which were recorded, BLICHT repeatedly referred to the bribe payments as “tickets,” in which each ticket equaled a $1,000 bribe. BLICHT instructed an official of the Employer (the “Official”) as to the number of “tickets” to pay BLICHT each time. Indeed, during the past year, the Official met with BLICHT several times and paid him bribes on approximately three occasions, at the direction of law enforcement. Each of these meetings was recorded.
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BLICHT, 57, of Wilton, Connecticut, is charged with one count of honest services fraud, which carries a maximum sentence of 20 years in prison, and one count of demanding or receiving prohibited payments as a labor union official, which carries a maximum sentence of five years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the Internal Revenue Service-Criminal Investigation Division, DOL-OIG, IRS-CI, FBI, and DOL-EBSA for their outstanding work on the investigation. He added that the investigation is continuing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael D. Neff and Andrew D. Beaty are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Pittsfield Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
BOSTON – A Pittsfield man was sentenced in federal court in Springfield yesterday for failing to register as a sex offender.
Anthony Robertson, 37, was sentenced to two years in prison and eight years of supervised release. In May 2019, Robertson pleaded guilty to one count of failure to register as a sex offender. Robertson was arrested and charged in February 2018 and has been in custody since.
In 2001, Robertson was convicted of second degree rape, and in 2006, he was convicted of third degree rape. As a result, Robertson is required to register as a sex offender and has received many notices of his obligation to register. In 2014, he was convicted in a New York state court of failure to register as a sex offender. In approximately May 2017, Robertson traveled from New York to Pittsfield, where he established residence. In June 2017, Robertson was told by a New York detective that he was wanted for failing to register as a sex offender in New York, and was told to turn himself in. Robertson neither turned himself in, nor did he register as a sex offender in Massachusetts until after he was arrested on Aug. 25, 2017, on unrelated drug and firearm charges.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pittsburgh Woman Sentenced for Attempted Distribution of HeroinRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to three years’ probation on her conviction of attempted distribution of heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Ada Johnson, age 33, of Pittsburgh, PA.
According to information presented to the court, In connection with the guilty plea, the court was advised that Ada Johnson was indicted in connection with a DEA wiretap investigation. The intercepted wiretap communications revealed that in June 2016, Johnson traveled to Mechanicsburg, PA to meet with a heroin supplier to attempt to bring nearly 400 bricks of heroin back to Pittsburgh for distribution of the heroin by members of the conspiracy.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). 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. United States Attorney Brady commended the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Pittsburgh Bureau of Police, and Pennsylvania State Police for the investigation leading to the successful prosecution of Johnson.
Pennsylvania Man Sentenced for International Email Impersonation and Fraud ScamRead the Press Release
BOSTON – A Pennsylvania man was sentenced yesterday in federal court in Boston in connection with a scam in which he and co-conspirators defrauded victims by pretending to be employees of the Securities and Exchange Commission (SEC).
Frank Gregory Cedeno, 28, of Mahanoy City, Penn., was sentenced by U.S. District Court Senior Judge George A. O’Toole, Jr. to three years in prison, three years of supervised release, and ordered to pay $366,552 in restitution. In December 2018, Cedeno pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering.
From at least April 2016 through January 2018, Cedeno conspired with others to defraud victims by pretending to be employees of the SEC, demanding money from victims and directing them to send it to members of the conspiracy, including Cedeno, who was then living in Ocoee, Fla. The conspirators who received the money generally withdrew it from bank accounts quickly, then forwarded much of it to individuals in the Dominican Republic. In one common version of the scam, victims received e-mails that used official-seeming documentation and the SEC seal to induce the victim to pay a fee in order to receive a portion of a legal settlement. In another version, victims received e-mails and official-seeming documents labeling the victim a defendant in a civil lawsuit, in which the victim owed tens of thousands of dollars in supposed disgorgement, penalties and fees. The documents gave the victim a choice of either appearing in court to contest the lawsuit or paying a smaller fee.
In August 2018, co-conspirator Leonel Alexis Valerio Santana, 30, of Boston, was sentenced to 63 months in prison, three years of supervised release, and ordered to pay restitution of $105,869 after pleading guilty to his role in the scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission’s Office of Inspector General; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Brian A. Pérez-Daple of Lelling’s Criminal Division prosecuted the case.
Pelham Man Charged with Fraud Schemes Involving the Sale of Fraudulent Surety BondsRead the Press Release
CONCORD - Leo Rush, 77, of Pelham, New Hampshire, has been charged with five counts of mail fraud and five counts of wire fraud, United States Attorney Scott W. Murray announced today.
According to an indictment that was unsealed today, Rush managed the business activities of Newport Insurance Company, Inc., which was not licensed to sell insurance in any state. The indictment alleges that Rush sold Newport Insurance surety bonds for construction projects in several different states. The indictment alleges that Rush knew that Newport’s surety bonds were fraudulent and illusory because Newport was not a licensed insurer and it did not have the financial ability to make payments equal to the amount of the bonds.
Rush appeared in federal court today and pleaded not guilty. His trial date has not been set.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the New Hampshire Insurance Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Robert Kinsella.
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Owners of Minneapolis Adult Day Care Charged with Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment against FAYSAL SAYID, 40, and MUHUMED ALI, 36, charging them with multiple counts of income tax evasion and with conspiracy to defraud the United States. SAYID and ALI are currently scheduled to make their initial appearances on August 9, 2019, before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota.
According to the indictment, SAYID and ALI co-owned and operated Meisa Group, LLC, which provided adult day care services to individuals enrolled in the Minnesota Medicaid program. Between 2012 and 2014, SAYID and ALI each received more than $1 million from Meisa’s operating accounts and used much of the funds to pay for their own living expenses, including clothing, travel, entertainment, and automobiles. According to the indictment, SAYID and ALI created falsified financial records including profit and loss statements, fabricated invoices, and failed to report or pay individual income taxes on the income.
This case is the result of an investigation conducted by the FBI, the Criminal Investigation Division of the IRS, and the Civil division of the IRS.
Assistant U.S. Attorney John Kokkinen is prosecuting the case.
Defendant Information:
FAYSAL SAYID, 40
Minneapolis, Minn.
Charges:
- Conspiracy to defraud the united states, 1 count
- Income tax evasion, 3 counts
MUHUMED ALI, 36
Minneapolis, Minn.
Charges:
- Conspiracy to defraud the united states, 1 count
- Income tax evasion, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Owner of Lee County Truck Driving School Charged with Bribery and Wire Fraud OffensesRead the Press Release
Montgomery, AL – On Thursday, July 25, 2019, James Welburn, 72, a resident of Columbus, Georgia and the owner of American Truck Driving Academy, located in Lee County, Alabama, was arrested after being indicted by a federal grand jury sitting in Montgomery, Alabama, announced United States Attorney Louis V. Franklin, Sr.
The indictment charges that Welburn paid bribes to a commercial driver’s license (CDL) examiner in exchange for the examiner showing preferential treatment to American Truck Driving Academy students when those students took CDL driving exams. Specifically, Welburn paid the examiner $25 per student tested by the examiner. In exchange for these $20 bribes, the examiner agreed to do things like: (1) test students even though students had not possessed learner’s permits for at least 14 days, as required by federal regulations; (2) test more than five students in a single day, in violation of state law; and (3) refrain from testing students on certain trucking maneuvers if the students were unlikely to be able to perform the maneuvers. Additionally, the examiner agreed to give American Truck Driving Academy students “the benefit of the doubt” on all road tests.
The indictment charges Welburn with conspiracy, bribery, and wire fraud offenses. If convicted of the most serious charges, Welburn faces a maximum sentence of 20 years’ imprisonment on each count. He also faces substantial monetary penalties and restitution.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Department of Transportation’s Office of Inspector General with assistance from the Georgia Department of Drivers Services, the Federal Motor Carrier Safety Administration, the United States Department of Labor – Office of Inspector General, and the Alabama Law Enforcement Agency. Assistant United States Attorneys Jonathan S. Ross and Thomas R. Govan, Jr. are prosecuting the case.
Ohio County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Xavier C. Coyle, of Wheeling, West Virginia, was sentenced today to 24 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Coyle, age 29, pled guilty to one count of “Unlawful Possession of a Firearm” in May 2019. Coyle, having previously been convicted of a felony, admitted to having 9mm pistol in December 2019 in Marshall County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.