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4 September 2019
Prattville Woman Receives 18-Month Sentence for Making False Claims on Tax RefundsRead the Press Release
Montgomery, Alabama – On Tuesday, September 3, 2019, a Prattville, Alabama resident, Candace Brie Betances, 43, received an 18-month sentence for submitting false tax returns to the Internal Revenue Service (IRS), announced United States Attorney Louis V. Franklin, Sr. The sentence follows Betances’s guilty plea to one count of submitting false claims to the government.
According to court documents, between July of 2015 and July of 2016, Betances submitted to the IRS four individual income tax returns. On each return, Betances claimed that she was entitled to receive a substantial tax refund. In total, Betances asked the IRS to pay her $357,183. She did so despite knowing that she was not entitled to receive the refunds. Fortunately, the IRS detected Betances’s false statements and did not pay her the requested refunds.
At sentencing, the judge described Betances’s offense as a “serious” one. He ordered that Betances spend nine months of her sentence in prison and nine months on home detention with electronic monitoring. In ordering Betances to custody, the judge stated that a custodial sentence was necessary to deter others from submitting false tax documents. She will also be subject to two years of supervised release after serving her sentence.
“Too many people in our community view the IRS as a piggybank,” commented United States Attorney Franklin. “I hope that this case serves as a reminder that we are all responsible for paying taxes and that those who try to line their pockets with the hard-earned tax dollars of others will be punished.”
The IRS’s Criminal Investigations Division (IRS-CI) investigated this case, with assistance from the Autauga County Sheriff’s Office. Assistant United States Attorney Jonathan S. Ross prosecuted the case.
Pittsburgh Felon Convicted of Drug and Firearms Violations Sentenced to 8½ Years in PrisonRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a total of eight years and five months (102 months) in prison and six years’ supervised release, following his conviction of federal drug and firearms violations, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Lamont Willis, 47.
According to information presented to the court, on March 8, 2017, Pittsburgh Police executed a search warrant at Willis’s residence following a series of anonymous complaints of suspected drug trafficking and seized numerous items, including: cocaine, crack, cutting agents, drug trafficking paraphernalia, four firearms, and ammunition. Willis was apprehended the next day and was later indicted for possession with intent to distribute cocaine and cocaine base, possession of firearms and ammunition by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. On May 3, 3019, Willis pleaded guilty to the drug trafficking charge and to possessing the firearm in furtherance of the drug trafficking crime; additionally, Willis accepted responsibility for possessing firearms after being convicted of drug and firearms violations punishable by more than one year in prison. The Court was further informed that, as a convicted felon, Willis is subject to enhanced penalties.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, City of Pittsburgh Bureau of Police and North Strabane Township Police Department conducted the investigation leading to the successful prosecution of Willis.
The case was brought as part of Project Safe Neighborhoods. 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.
Pike County Physician Indicted for Unlawful Distribution of Controlled Substances Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Martin Evers, age 61, a Pike County, Pennsylvania, physician, was indicted on August 28, 2019, by a federal grand jury for unlawfully distributing controlled substances without a legitimate medical purpose resulting in death.
According to United States Attorney David J. Freed, the indictment alleges that in September 2014, Evers unlawfully provided prescriptions for fentanyl and methadone, both Schedule II controlled substances, and diazepam, a Schedule IV controlled substance, that caused the death of one of his patients.
Evers appeared before Magistrate Judge Karoline Mehalchick today for his arraignment and was released under pre-trial supervision by Federal Probation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The charges stem from an investigation by Drug Diversion agents with the Drug Enforcement Administration (DEA). Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Nursing Assistant Receives Jail Sentence for Stealing from Wheelchair-Bound VeteranRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jacoya Brazzle, 31, of Coatesville, Pennsylvania, was sentenced to eight months’ incarceration, five years supervised release and full restitution by United States Timothy J. Savage for stealing money from a veteran patient in her care.
The defendant was a nursing assistant at the VA Medical Center (VAMC) in Coatesville. As part of her duties, she was assigned to care for a veteran who uses a wheelchair. Brazzle learned the veteran’s ATM card PIN number, and used his ATM card to access his account – withdrawing funds on more than 10 occasions from ATMs in the Coatesville area over a two month timespan. In all, the defendant stole approximately $11,000 from the victim’s bank account.
“Our veterans deserve our gratitude for their service, and it goes without saying that they deserve safe and trustworthy care at VA Medical Centers,” said U.S. Attorney McSwain. “The defendant’s conduct here – stealing from a wheelchair-bound veteran in her care – is reprehensible. My Office will investigate and prosecute any crimes against veterans to the fullest extent possible.”
“VA employees that take advantage of vulnerable veterans in their care will not be tolerated,” said Special Agent in Charge Sean J. Smith, Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Office.
The case was investigated by the Office of Inspector General for the U.S. Department of Veterans Affairs, and is being prosecuted by Assistant United States Attorney Nancy Rue.
North American Specialty Insurance Company to Pay over $1 Million to Settle False Claims Allegations for Bonding Contractor in Small Business Administration 8(a) Program Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that New Hampshire-based North American Specialty Insurance Company (NAS IC) has agreed to resolve allegations that the company violated the False Claims Act by bonding a South Carolina general contractor that submitted false claims to the United States for services performed under fraudulently obtained contracts from the U.S. Department of Defense and the U.S. Department of Agriculture. These contracts had been set aside for companies that qualified for the U.S. Small Business Administration’s (SBA) Section 8(a) Business Development Program. NAS IC has agreed to pay $1,040,035.20 to resolve the government’s allegations.
The 8(a) Business Development Program was created to help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities. A business owned and controlled by socially and economically disadvantaged individuals can apply for certification from the SBA as an 8(a) business. An 8(a) business can obtain certain preferences during the contracting process, and can bid on contracts that the government has set aside for qualified 8(a) businesses. A business can remain in the 8(a) program for up to nine years, but during that time, must provide information to the SBA, which is used to determine continuing program eligibility.
The United States alleges that, among other things, South Carolina general contractor Claro Company, Inc. made materially false, fictitious, and fraudulent statements and representations, or material omissions, to gain entry into and to continue participation in the 8(a) program. The United States also alleges that NAS IC knew or should have known that Claro was not eligible for 8(a) set-asides. Specifically, the United States alleges that NAS IC knew or should have known that Claro Company was in violation of the regulations governing the 8(a) Program and the government’s contracting requirements. Specifically, the United States contends that NAS IC knew or should have known, among other things, that: Claro Company was not controlled by a socially and economically disadvantaged individual, and that it was affiliated with and controlled by another entity and/or individuals that did not meet the SBA’s definition of being socially and economically disadvantaged; that neither the affiliation nor control were disclosed to the SBA; and that Claro Company made material false misrepresentations regarding its financial status to the SBA in order to avoid early graduation from the 8(a) program. The United States contends that NAS IC nonetheless continued to do business with Claro Company, bonding its projects and therefore allowing it to continue to fraudulently bid for contracts under the preferences in the 8(a) program.
“By enabling fraudsters, these companies play a key part in unlawfully usurping government contract opportunities from socially and economically disadvantaged individuals who the 8(a) Program is intended to assist,” said U.S. Attorney Murray. “My office will pursue vigorously bonding companies and other entities that, by turning a blind-eye or willfully ignoring blatant indicia of program fraud or abuse, enable the submission of these false claims and cause harm to the government program.”
This settlement resolves allegations investigated by the government pursuant to the False Claims Act. The settlement is the result of the coordinated effort between the Defense Criminal Investigative Service of the Office of Inspector General, U.S. Department of Defense, the U.S. Department of Agriculture Office of the Inspector General, the U.S. Small Business Administration Office of the Inspector General, and the United States Attorney’s Office for the Western District of North Carolina.
The claims resolved in this settlement are allegations only and there has been no determination of liability against NAS or any other entity.
New Britain Man Who Shot Girlfriend and Her Two Children Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JERMAINE SCOTT, also known as “Maine G,” 40, formerly of New Britain, pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to possession of a firearm by a convicted felon.
According to court documents and statements made in court, in the morning of March 29, 2017, New Britain Police responded to a residence in New Britain after a report that Scott had shot and seriously wounded his girlfriend and two of his girlfriend’s children at the residence. The victims subsequently reported that Scott, who was lying in bed, became angry when he thought the children were being too loud as they were getting ready for school. After an argument ensued, Scott retrieved a gun from behind the headboard of the bed, chased his girlfriend’s 17-year-old daughter into the bathroom and shot her in the stomach and thigh. He then shot his girlfriend’s 12-year-old son in his leg, and then his girlfriend in her stomach. Scott then fled the residence.
All three victims survived their injuries
Investigators conducted a search of the residence and recovered a .40 caliber pistol, four spent .40 caliber bullet shell casings, and more than 63 rounds of .40 caliber ammunition.
Scott was apprehended in Middletown on September 18, 2017. On May 16, 2019, he pleaded guilty in New Britain Superior Court to three counts of assault in the first degree. On July 24, 2019, he was sentenced to a 30-year term of imprisonment, no portion of which is suspended.
Scott has a criminal history that spans 20 years and includes convictions for firearm, drug, burglary, larceny and other offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Covello scheduled sentencing for December 10, 2019, at which time Scott faces a maximum term of imprisonment of 10 years.
This matter was investigated by the New Britain Police Department, the U.S. Marshals Service Violent Fugitive Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Exposives. The case is being prosecuted by Assistant U.S. Attorney Alina M. Reynolds.
Nashville Man Convicted of Federal Drug Distribution and Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – September 4, 2019 –Lorenzo Shelton, 37, of Nashville, was found guilty yesterday on all counts of a federal indictment charging him with drug distribution and firearms violations, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
After a four-day trial, a jury found Shelton guilty of possession with intent to distribute 100 grams or more of heroin; possession of a firearm by a convicted felon; and possession of a firearm in furtherance of a drug trafficking crime.
According to evidence and testimony at trial, in August 2016, while Shelton was on parole for prior drug trafficking crimes, parole officers made a surprise visit to his home on Tillman Lane in Nashville. A search of Shelton’s room resulted in the seizure of 165 grams of heroin and other items indicative of drug trafficking. Officers also recovered $11,000 from the trunk of Shelton’s rental car. The investigation led officers to a second address on Chesapeake Drive in Nashville, where Shelton also lived, and there, officers recovered 90 grams of heroin, a loaded 9mm pistol, and $51,000 cash.
Shelton faces a minimum of 10 years and up to life in prison when he is sentenced by U.S. District Judge Eli J. Richardson on January 17, 2020.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Tennessee Department of Correction; and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Henry C. Leventis and Brooke K. Schiferle prosecuted the case.
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Montgomery Man Sentenced to 81 Months in Prison for Federal Drug and Firearms ChargesRead the Press Release
Montgomery, Alabama – On Tuesday, September 3, 2019, Augustus Chico Lowe, 34, of Montgomery, Alabama, was sentenced to 81 months in prison for federal drug and firearms charges, announced United States Attorney Louis V. Franklin, Sr. There is no parole in the federal system.
In May of 2019, Lowe pleaded guilty to possession of cocaine with intent to distribute and possession of a firearm in connection with a drug distribution crime. After serving his nearly seven-year sentence, Lowe will be subject to three years of supervised release.
Court records show that in December of 2016 Lowe was found to be in possession of approximately 26 baggies of powder cocaine and a handgun during a traffic stop by the Montgomery Police Department. Possession of a firearm in connection with drug trafficking carries a minimum sentence of five years in prison and runs consecutive to any other sentence. Lowe received 21 months for the drug charge.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Montgomery Police Department investigated this case, with assistance from the Alabama Department of Forensic Sciences and Montgomery County Sheriff’s Office. Assistant United States Attorneys Bradley Bodiford and Robert Nichols prosecuted the case.
Mexican National Man Pleads Guilty to an Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national man pled guilty to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Jose Guadelaupe Camarena-Jacinto, 37, faces up to ten years in prison, a $250,000 dollar fine, three years of supervised release, a special assessment, and possible removal from the United States when he is scheduled to be sentenced on November 5, 2019. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE) and the Ripley Police Department.
“Camarena-Jacinto had four prior removals,” said United States Attorney Mike Stuart. “This revolving door is an unbelievable drain on critical law enforcement resources that are needed elsewhere. My office prosecutes every single reentry case.”
On June 17, 2019, Camarena-Jacinto was found in the South Central Regional Jail located in Charleston, West Virginia by members of ICE after he was arrested by Ripley police officers for the state offense of obstruction. ICE agents traveled to the jail to confirm his legal status. The defendant admitted to agents that he was in the United States illegally. Camarena-Jacinto was arrested and ICE agents matched his fingerprints to previous removals from the United States. ICE agents further spoke to the defendant to confirm his identity. Camarena-Jacinto again admitted being in the United States illegally. Camarena-Jacinto had no identification documents permitting him legal status in the United States.
Fingerprinting matched Camarena-Jacinto to four prior removals from the United States in 2008, 2009, 2010, and 2012. His previous removals also included a prior conviction of illegal reentry into the United States from Federal Court in Kansas City, Missouri. In all four cases, Camarena-Jacinto was found by immigration judges to be in the United States illegally and he was deported to Mexico. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Camarena-Jacinto further admitted to ICE agents that he was a Mexican citizen.
Senior United States District Judge John T. Copenhaver Jr. presided over the hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
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Maryland U.S. Attorney’s Office, Along with Federal, State, and Local Law Enforcement Partners, Announces Strike Force to Combat Violence in BaltimoreRead the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland, along with federal, state, and local law enforcement partners, today announced the Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, a new initiative designed to combat violent crime in Baltimore. The mission of the Baltimore OCDETF Strike Force is to disrupt and dismantle the most violent gangs and drug trafficking organizations, and their financial infrastructure, in the Baltimore metropolitan area. While the Strike Force has been conducting investigations for more than a year now, the signing of the fiduciary agreement with the Baltimore County Government will now allow all Strike Force investigators to work in one shared location, which is a key part of the Strike Force concept that has proven successful in other cities.
The Strike Force program was announced by U.S. Attorney for the District of Maryland Robert K. Hur; Adam Cohen, Director of the Department of Justice’s Organized Crime Drug Enforcement Task Forces; Baltimore County Executive Johnny Olszewski; Tom Carr, Executive Director of the Washington/Baltimore HIDTA; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge “Jimmy” Sung H. Yi of the United States Secret Service - Baltimore Field Office; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; U.S. Marshal Johnny Hughes; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; State’s Attorney for Baltimore City Marilyn Mosby; Commissioner Michael Harrison of the Baltimore Police Department; Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Baltimore City Sheriff John W. Anderson; Colonel Woodrow W. Jones, Chief of the Maryland Transportation Authority Police; Anne Arundel County Police Chief Tim Altomare; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said U.S. Attorney Robert K. Hur. “The Strike Force model has worked elsewhere, and it will work here: By creating blended teams of investigators from more than a dozen local, state, and federal law enforcement agencies and tasking them with building investigations of the city’s most violent gangs, we will reduce violent crime together. I’m grateful to all of the many partners who have made it possible for us to bring this model to Baltimore, including Baltimore County Executive Olszewski and the Baltimore County Council for their leadership and agreement to serve as the financial conduit for the federal funds supporting this effort.”
Baltimore and its surrounding communities suffer from criminal violence, much of it driven by gangs and violent drug-trafficking organizations. The Strike Force was born of the desire for federal, state, and local law enforcement agencies in the Baltimore area to better coordinate and combine their resources and efforts to combat that violence. The mission of the Strike Force is to reduce violent, firearms-related, and drug-related crime in Baltimore by identifying criminal organizations and individuals most responsible for generating violence, sharing information about drug trafficking, illegal firearms, and violence, and pursuing the proceeds generated by drug trafficking organizations.
Participating agencies have agreed to assign full-time personnel to the Strike Force, which is led by the Baltimore DEA Assistant Special Agent in Charge and Deputy Chiefs from the FBI, the ATF, HSI, the Baltimore Police Department and the Maryland State Police, as well as prosecutors from the U.S. Attorney’s Office and the State’s Attorney’s Office for Baltimore City. Police officers, agents, and both federal and state prosecutors will work together in open workspace. The physical and organizational structure will lead to collaborative, centralized intelligence sharing in real time. The efforts of the Strike Force will complement and be a force multiplier to the ongoing efforts of the Washington/Baltimore High Intensity Drug Trafficking (HIDTA) Program.
RECENT CASES RESULTING FROM BALTIMORE OCDETF STRIKE FORCE INVESTIGATIONS
Monument Street Drug Trafficking Organization (“DTO”) - In this case, 25 defendants were arrested and charged in a 30-count superseding indictment that was returned by a federal grand jury on June 26, 2019, and unsealed on July 19, 2019. The superseding indictment charges the defendants with conspiring to distribute narcotics in and around the 400 block of North Montford Avenue and Jefferson Street, and around the 2400 block of East Monument Street at Port Street. Beginning in July 2018, members of the conspiracy allegedly distributed heroin, fentanyl, cocaine, and crack cocaine to individual drug users, and in bulk quantities to other drug traffickers, who redistributed the drugs in and around Baltimore. Ten of the conspirators also face firearms charges—including eight defendants charged with illegal possession of a firearm and ammunition by a prohibited person. During the investigation, law enforcement seized nine firearms, more than 14 kilograms of cocaine, approximately 4.5 kilograms of heroin, and 479 grams of fentanyl—enough to kill over 200,000 people. In addition, law enforcement seized more than $472,000 in cash and jewelry and vehicles worth more than $466,000. (Adams Superseding Indictment)
Spencer DTO – A federal indictment was returned on August 21, 2019, charging six defendants in a drug distribution conspiracy allegedly operating in southwest Baltimore. Sonny Spencer is the alleged leader of the DTO, which operates in and around the 400 block of Furrow Street, in southwest Baltimore, distributing primarily crack cocaine, heroin, and fentanyl. During the investigation, law enforcement conducted surveillance in the area where the DTO allegedly conducted its business and supervised numerous controlled purchases of narcotics from the alleged DTO members. In addition, law enforcement seized crack cocaine, a mixture of heroin and fentanyl, a .40 caliber firearm, and more than 70 rounds of ammunition.
U.S. Attorney Hur thanked the Washington/Baltimore HIDTA, the DEA, the U.S. Secret Service, the FBI, the ATF, HSI, the U.S. Marshals Service, the U.S. Postal Inspection Service, the State’s Attorney’s Office for Baltimore City, the Baltimore Police Department, the Maryland Department of Public Safety and Correctional Services, the Maryland State Police, the Baltimore City Sheriff’s Office, the Maryland Transportation Authority Police, the Anne Arundel County Police Department, the Baltimore County Police Department, the Maryland National Guard, and the Baltimore County Executive and Baltimore County Council, for their commitment to the Strike Force. Mr. Hur also commended the dedicated Assistant U.S. Attorneys and Assistant State’s Attorneys who are handling these prosecutions.
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Marshall County man admits to firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – William M. Johnson, Jr., of McMechen, West Virginia, has admitted to a firearms violation, United States Attorney Bill Powell announced.
Johnson, age 30, pled guilty to one count of “False Statement to Acquire Firearm.” Johnson admitted to making a false statement when purchasing a firearm. Johnson claimed the weapon was for his use, when, in fact, he purchased the .40 caliber pistol for a convicted felon. The crime took place in August 2018 in Ohio County.
Johnson faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Man Sentenced to 30 Years for Murdering Postal Worker in Fit of Road RageRead the Press Release
A Los Angeles man was sentenced today to 30 years in federal prison for murdering a postal worker during a road rage incident in Dallas last February, announced U.S. Attorney Erin Nealy Cox.
Donnie Arlondo Ferrell, 26, pleaded guilty in February 2019 to shooting and killing U.S. Postal Service employee Tony Mosby, who was behind the wheel of a USPS vehicle, a year prior.
According to plea papers, Mr. Ferrell – one of three passengers inside a Mazda traveling eastbound on I-30 – became incensed at something he perceived Mr. Mosby had done on the freeway. He leaned out of the Mazda and fired four shots at the USPS vehicle. Mr. Ferrell then watched as the USPS vehicle crashed into a retaining wall on the freeway.
After Mr. Ferrell later learned Mr. Mosby had been killed by a bullet to the head, Mr. Ferrell instructed the Mazda’s other passengers not to discuss the incident with anyone else. When law enforcement attempted to arrest Mr. Ferrell two days later, he retreated into his residence and refused to surrender for several hours, according to his plea papers.
Mr. Ferrell pleaded guilty to one count of murder of an employee of an agency of the United States government, and one count of discharging a firearm during a crime of violence.
“It was devastating to learn of the senseless act of violence that took the life of a federal postal employee while on the job in our district,” U.S. Attorney Nealy Cox said in February after the defendant’s guilty plea. “I’m gratified we could bring the perpetrator to justice. My heart goes out to Mr. Mosby’s family and friends.”
“The sentencing of Donnie Ferrell for the murder of postal employee Tony Mosby brings to an end an investigation of a heinous crime,” stated U.S. Postal Inspection Service’s Fort Worth Division Inspector in Charge Thomas Noyes. “The U.S. Postal Inspection Service is committed to protect our employees and customers. While we cannot prevent these senseless acts, we will not allow anything to impede our pursuit of justice. A special thank you to the U.S. Attorney’s Office, FBI, U.S. Marshal Service, Dallas PD and Dallas County Sheriff’s Department among others who worked swiftly to bring closure to this investigation and the Mosby family.”
A codefendant, Bei-jing Tashawna Walker, accused of accessory after the fact, entered a plea of not guilty last March. Her trial is scheduled to begin October 28, and she is presumed innocent until proven guilty.
The U.S. Postal Inspection Service conducted the investigation with assistance from the Dallas Police Department, the Federal Bureau of Investigation, the Dallas Police Department, and Dallas County Sheriff’s Department. Assistant U.S. Attorneys P.J. Meitl and John Kull prosecuted the case.
Man Indicted with Providing False Statements to Acquire 35 GunsRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Maryland man with making false statements to acquire firearms.
According to allegations in the indictment, Juan Antonio Zimmerman, 26, of District Heights, purchased 35 firearms from federal firearms licensees in the Eastern District of Virginia falsely claiming that he was buying the firearms for himself when he was actually buying them on behalf of other individuals. Zimmerman used a false address in Arlington to purchase the firearms, then gave the firearms to his cousin, his cousin’s friends, and his uncle, who is a convicted felon. In addition to the firearm recovered from his uncle, law enforcement recovered two of the firearms in Prince George’s County, Maryland as part of criminal investigations.
Zimmerman is charged with making false statements to a federal firearms licensee with respect to the purchase of firearms. If convicted, he faces a maximum penalty of five years in prison per count of conviction. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Jason Trigger are prosecuting 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-265.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Long Island Aerospace and Defense Contractor Agrees to Repay $2.6 Million in Overbillings to the United StatesRead the Press Release
Arkwin Industries, Inc., a Westbury, New York-based corporation, has agreed to pay a $2.6 million settlement to the United States, after self-disclosing its overbilling of the government and its prime contractors.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Leigh-Alistair Barzey, Special Agent-in-Charge, Defense Criminal Investigative Service, Northeast Field Office (DCIS), and Jason T. Hein, Special Agent-in-Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Investigations (AFOSI), announced the settlement.
“This resolution demonstrates how government contractors and suppliers should act when they discover overbilling – Arkwin notified the authorities, investigated the error, reported its findings to the United States and ultimately took responsibility for its mistakes,” stated United States Attorney Donoghue. “When a government contractor self-discloses billing errors and cooperates in the government’s investigation, our Office will work with them to arrive at a fair and just resolution.”
“Today's settlement is the result of a joint effort to ensure that the U.S. Department of Defense (DoD) expends only the necessary amount for the goods and services needed to supply our military," stated DCIS Special Agent-in-Charge Barzey. “Arkwin's cooperation in this matter was an important part of the successful and equitable resolution of this matter. The DCIS is committed to working with its law enforcement partners and the U.S. Attorney's Office, Eastern District of New York, to protect the integrity of the DoD's procurement system.”
“The Air Force Office of Special Investigations is committed to protecting the USAF and the American taxpayer from contractors and subcontractors who overcharge the government for products or services,” stated AFOSI Special Agent-in-Charge Hein.
Arkwin Industries designs, tests and manufactures precision hydraulic and fuel system components for civil and military fixed-wing aircraft, helicopters, spacecraft, turbine engines and other special applications. Arkwin acts both as a prime contractor and as a subcontractor to the Department of Defense, the Department of the Air Force and the Department of the Navy.
Arkwin detected an error in its accounting systems that had double-counted worker hours spent performing inspections of its products. Arkwin then self-disclosed the discovery to the United States, and undertook an internal investigation by outside counsel and a forensic accounting team. After concluding its investigation, Arkwin reported its findings to the United States.
After receiving Arkwin’s findings, the United States Attorney’s Office, with the support of DCIS and AFOSI, independently investigated the nature and extent of the overbilling, including whether the overbilling had been intentional or accidental. Arkwin cooperated fully throughout the investigation, providing documents, making witnesses available for interviews and responding to government inquiries. Following a thorough investigation, the Office found that the overbilling was accidental and negotiated the resolution. The $2.6 million settlement represents the total of potential overbilling, with interest.
The government’s case was handled by Assistant United States Attorney John Vagelatos.
Local Man Arrested on Weapons ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kory Lee George, age 31, of Monkton, was arrested yesterday on firearms violation charges. The defendant appeared today before United States Magistrate Judge John M. Conroy in Burlington. He was ordered detained pending a bail hearing on September 6, 2019.
The federal Criminal Complaint filed today charges George with possession of two firearms, a semi-automatic pistol and a shotgun, after being convicted in Vermont courts of felony offenses. An affidavit submitted with the Criminal Complaint, signed by a Vermont State Police Detective with the Vermont State Police’s Major Crime Unit, alleges that both firearms were stolen. The pistol, a 9mm Berretta, allegedly was stolen the night before David Auclair was shot to death in Hinesburg on July 11, 2019. As the Criminal Complaint describes, the Vermont State Police recovered the Berretta from a creek a few days after Auclair’s death. The Vermont Forensic Laboratory has since determined that the Berretta fired 9mm bullets recovered from Auclair’s body.
The shotgun referenced in the Criminal Complaint was allegedly stolen last spring from a camp in upstate New York, and was found in George’s residence during the Vermont State Police’s homicide investigation.
The Criminal Complaint is an accusation only and the defendant is presumed innocent until and unless proven guilty. The U.S. Attorney recognizes the efforts of the Vermont State Police in investigating the case. The case is being handled by Assistant U.S. Attorneys William Darrow and Spencer Willig of the U.S. Attorney’s Office. George is represented by Federal Defender Michael L. Desautels.Lengthy Prison Sentences for Three Middle Georgia Illegal Drug DealersRead the Press Release
MACON – Three Middle Georgia defendants involved in three different criminal drug distribution operations were each sentenced to more than 100 months in prison for their crimes, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. United States District Judge Marc Treadwell handed down the sentences in Macon federal court on September 4, 2019. John Dimitri Jordan, 40, of Atlanta, Georgia was sentenced to 140 months in prison followed by four years supervised release for Distribution of Crack Cocaine. Justin Hunt aka “Big Boy”, 34, of Macon, Georgia was sentenced to 130 months in prison followed by four years supervised release for Distribution of Methamphetamine. Larry Cumbie, 39, of Danville, Georgia was sentenced to 114 months in prison followed by three years supervised release for Possession with Intent to Distribute Methamphetamine. There is no parole in the federal prison system.
“Individuals who choose to profit from dealing large amounts of deadly, illegal drugs in the Middle District of Georgia will face serious penalties and long prison sentences,” said U.S. Attorney Charlie Peeler. “We will continue to work closely with our law enforcement partners in our shared effort to eradicate the sale of illegal drugs across the region. Thank you to the many law enforcement agencies involves in these cases.”
The Jordan case was investigated by the DEA, the Ocmulgee Drug Task Force, and the Washington County Sheriff’s Office. The Hunt case was investigated the United States Drug Enforcement Administration (DEA) and the Bibb County Sheriff’s Office. The Cumbie case was investigated by the DEA, the Twiggs County Sheriff’s Office, and the Ocmulgee Drug Task Force. Assistant U.S. Attorney Steven Ouzts prosecuted all three cases for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Las Vegas Man Charged for Illegally Engaging in the Business of Manufacturing Machine Guns Without A LicenseRead the Press Release
LAS VEGAS, Nev. – Jayson Michael Babbitt, 35, of Las Vegas, was charged today by criminal complaint with engaging in the business of dealing in firearms without a license, illegal possession of a machine gun, and making a machine gun in violation of the National Firearms Act, announced United States Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Babbitt made an initial appearance on the complaint this afternoon before United States Magistrate Judge Elayna J. Youchah.
According to the allegations contained in the complaint, beginning on or about June 2019 and continuing through September 2019, Babbitt illegally manufactured AR-15 style fully automatic rifles and offered them for purchase in the Las Vegas area. In July 2019, during a controlled purchase, Babbitt sold two fully automatic rifles, one short barrel and one long barrel, for $4,200 to an undercover buyer. Babbitt claimed to have manufactured the machine guns himself in his home with a “jig” using 80% lower receivers, blocks of aluminum, and M-16 machine gun parts to finish the firearms. Babbitt referred to the guns as “Ghost Guns” since the firearms did not have serial numbers so the firearms “would not exist in the eyes of the ATF.” Babbitt also showed the undercover buyer a video of himself test firing the firearms. On September 3, 2019, Babbitt sold an undercover buyer an additional three AR-15 style machine guns for $6,000.00. Babbitt told the undercover buyer that he planned on buying a machine that would allow him to make the gun parts easier and quicker. Babbitt was taken into custody by law enforcement after the September 3, 2019 sale. Babbitt admitted to manufacturing the machine guns he sold at his residence. A search warrant was executed at Babbitt’s residence where the “jig” was located as well as parts used in the manufacture of firearms. ATF Firearms Technology Criminal Branch tested the machine guns purchased in July 2019 and found that the firearms are operable and meet the definition of a “machine gun” under the federal National Firearms Act, Title 26, United States Code Section 5845(b).
A complaint contains merely allegations and the defendant is presumed innocent until and unless proven guilty in a court of law.
The case is being investigated by the ATF. Assistant United States Attorneys Lisa Cartier Giroux and Stephanie Ihler are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Laredoan Pleads Guilty to Child Pornography ChargeRead the Press Release
LAREDO, Texas – A 22-year-old man has pleaded guilty to possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Cristian Jose Castro admitted today he viewed and downloaded child pornography from the internet on two of his laptop computers.
On Oct. 11, 2018, law enforcement initiated an investigation into suspected possession and distribution of child pornography from a Laredo residence. They later executed a federal search warrant at the address and encountered Castro.
He admitted he obtained the child pornography from certain messaging applications and file-sharing programs via the internet using the wi-fi network at his residence. Castro said he had previously viewed adult pornography but he had become bored with it. He said he first watched child pornography when he was only nine. When law enforcement talked to him in December 2018, he added that he had searched, downloaded and viewed child pornography as recently as the month before. He admitted the children appearing in that ranged in age from seven to 12 years of age and that he had also downloaded pornography which included infants and toddlers.
A forensic analysis of one of Castro’s seized laptops included more than 2000 images of child pornography.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Castro faces a minimum of up to 20 years in federal prison.
Castro was permitted to remain on bond pending sentencing.
The FBI and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorneys Michael Bukiewicz and Francisco Rodriguez are prosecuting the case, which 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, 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."
Kirksville Man Sentenced for Receipt of Child PornographyRead the Press Release
St. Louis, MO – Scott B. Walsh, 48, of Kirksville, MO, was sentenced to 20 years in federal prison for Receipt of Child Pornography. Walsh appeared before United States District Judge John A. Ross.
According to court documents, in September of 2017 it came to the attention of Shelbina and Kirksville Police Departments that Walsh had solicited child pornography from a twelve-year boy in the area. The police and FBI discovered that Walsh, a registered sex offender, had befriended the twelve-year old boy, and given the child presents (such a bike and cell phone). Walsh persuaded the child, after numerous and constant text messaging, to send Walsh a self-produced video which depicted child pornography. The Kirksville Regional Computer Crimes Unit was able to forensically locate the video on the child’s cell phone, as well as, the many text messages Walsh had sent the child.
Walsh pled guilty to Deviate Sexual Assault in an unrelated case on December 20, 2004, Boone County, Missouri and received five years in state prison.
The Kirksville Police Department, the Kirksville Regional Computer Crimes Unit, the Federal Bureau of Investigation, and the Shelbina Police Department investigated the case.
Assistant U.S. Attorney Colleen Lang is handling the case for the U.S. Attorney’s Office.
Kentucky Woman Pleads Guilty to Sex Trafficking Two VictimsRead the Press Release
WASHINGTON – Cleoretta Allen, 41, of Louisville, Kentucky, pleaded guilty today in the U.S. District Court for the Western District of Kentucky to two counts of sex trafficking by force, fraud, or coercion and one count of interstate transportation for prostitution.
According to court documents, the defendant used violence, threats, fear, and intimidation to coerce two young women to engage in commercial sex acts in the Louisville area between September 2017 and October 2017. Allen also transported the victims from Kentucky to Georgia to engage in commercial sex. On Oct. 31, 2017, the victims contacted the police, which resulted in the defendant’s arrest.
“This defendant abused the victims and coerced them to engage in commercial sex for her gain,” said Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division. “The Department of Justice will continue to work tirelessly to seek justice on behalf of victims and survivors of human trafficking.”
“Our basic task in law enforcement is to protect the most vulnerable in this community,” said U.S. Attorney Russell M. Coleman of the Western District of Kentucky. “This successful investigation and prosecution demonstrates that principle is just how we do business in the Western District of Kentucky.”
“Human traffickers have no limits and will find victims anywhere,” said Special Agent in Charge James Robert Brown Jr. of the FBI’s Louisville Field Office. “Through investigations like this with our law enforcement partners, FBI Louisville is fiercely focused on freeing victims from the abusive life of sex trafficking and bringing to justice those who exploit them.”
In accordance with the plea agreement, the defendant faces a sentence of 15 to 19.5 years in prison. She is further subject to a maximum fine of $250,000 per count of conviction, as well as mandatory restitution to the victims. Sentencing will be scheduled on a later date.
This case was investigated by the FBI in Louisville, Kentucky, the Louisville Metro Police Department, and the Jefferson County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the Western District of Kentucky and Special Litigation Counsel William E. Nolan and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Kentucky Woman Pleads Guilty to Sex Trafficking Two VictimsRead the Press Release
Cleoretta Allen, 41, of Louisville, Kentucky, pleaded guilty today in the U.S. District Court for the Western District of Kentucky to two counts of sex trafficking by force, fraud, or coercion and one count of interstate transportation for prostitution.
According to court documents, the defendant used violence, threats, fear, and intimidation to coerce two young women to engage in commercial sex acts in the Louisville area between September 2017 and October 2017. Allen also transported the victims from Kentucky to Georgia to engage in commercial sex. On Oct. 31, 2017, the victims contacted the police, which resulted in the defendant’s arrest.
“This defendant abused the victims and coerced them to engage in commercial sex for her gain,” said Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division. “The Department of Justice will continue to work tirelessly to seek justice on behalf of victims and survivors of human trafficking.”
“Our basic task in law enforcement is to protect the most vulnerable in this community,” said U.S. Attorney Russell M. Coleman of the Western District of Kentucky. “This successful investigation and prosecution demonstrates that principle is just how we do business in the Western District of Kentucky.”
“Human traffickers have no limits and will find victims anywhere,” said Special Agent in Charge James Robert Brown Jr of the FBI’s Louisville Field Office. “Through investigations like this with our law enforcement partners, FBI Louisville is fiercely focused on freeing victims from the abusive life of sex trafficking and bringing to justice those who exploit them.”
In accordance with the plea agreement, the defendant faces a sentence of 15 to 19.5 years in prison. She is further subject to a maximum fine of $250,000 per count of conviction, as well as mandatory restitution to the victims. Sentencing will be scheduled on a later date.
This case was investigated by the FBI in Louisville, Kentucky, the Louisville Metro Police Department, and the Jefferson County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the Western District of Kentucky and Special Litigation Counsel William E. Nolan and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Justice Department Sues to Block Novelis's Acquisition of AlerisRead the Press Release
The Department of Justice filed a civil antitrust lawsuit today seeking to block Novelis Inc.’s proposed acquisition of Aleris Corporation in order to preserve competition in the North American market for rolled aluminum sheet for automotive applications, commonly referred to as aluminum auto body sheet.
The Antitrust Division’s lawsuit alleges that the transaction would combine two of only four North American producers of aluminum auto body sheet. Automakers rely on Novelis and Aleris to produce aluminum parts for automobiles to make cars lighter, more fuel-efficient, safer and more durable. The department filed its lawsuit in the U.S. District Court for the Northern District of Ohio.
The Antitrust Division has agreed with defendants to refer the matter to binding arbitration should certain conditions be triggered. The arbitration would resolve the issue of product market definition. The arbitration would take place pursuant to the Administrative Dispute Resolution Act of 1996 (5 U.S.C. § 571 et seq.) and the Antitrust Division’s implementing regulations (61 Fed. Reg. 36,896 (July 15, 1996)). This would mark the first time the Antitrust Division is using this arbitration authority to resolve a matter.
“Automakers increasingly need aluminum auto body sheet to satisfy American consumers’ demand for larger vehicles that are lighter and more fuel-efficient. The loss of a competing supplier of aluminum auto body sheet ultimately would harm American car buyers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This arbitration would allow the Antitrust Division to resolve the dispositive issue of market definition in this case efficiently and effectively, saving taxpayer resources. Alternative dispute resolution is an important tool that the Antitrust Division can and will use, in appropriate circumstances, to maximize its enforcement resources to protect American consumers.”
As alleged in the complaint, Aleris is an aggressive competitor whose expansion into the North American market had an immediate impact on pricing in North America. If this deal were allowed to proceed, Novelis would lock up 60 percent of projected total domestic capacity and the vast majority of uncommitted capacity, enabling the company to raise prices, reduce innovation and provide less favorable terms of service to the detriment of automakers and ultimately American consumers. Novelis’s acquisition of Aleris would eliminate a rival it described as “poised for transformational growth.” The complaint quotes internal presentations and emails describing an anticompetitive rationale for the transaction:
- Novelis worried that Aleris could be sold to a “[n]ew market entrant in the US with lower pricing discipline” than Novelis, and that an “[a]lternative buyer [was] likely to bid aggressively and negatively impact pricing” in the market.
- “[A]n acquisition by us as the market leader will help preserve the industry structure versus a new player . . . coming into our growth markets and disturbing the industry structure to create space for himself, while hurting us the most.”
Novelis is a Canadian corporation headquartered in Atlanta, Georgia. It offers flat-rolled aluminum products in three segments: automotive, beverage can and specialty products. In the fiscal year ending March 31, 2019, Novelis’s revenues were approximately $12.3 billion. Novelis is a wholly-owned subsidiary of Hindalco Industries Ltd., an Indian company headquartered in Mumbai, India.
Aleris is a Delaware corporation headquartered in Cleveland, Ohio. It offers flat-rolled aluminum products to the automotive, aerospace, and building and construction industries, among others. In 2018, Aleris’s revenues were approximately $3.4 billion.
Jury Finds San Antonio Man Guilty of Possession of Child PornographyRead the Press Release
In San Antonio today, a federal jury convicted 44-year-old Jeffrey Clinton Michalik of possession of child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigation (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
Evidence presented at trial revealed that five images of child pornography were downloaded from a website in Switzerland using the defendant’s secure IP address assigned to his house. HSI agents executed a federal search warrant for child pornography at the defendant’s house. The defendant admitted viewing child pornography on a laptop computer and provided agents with consent to search that computer. The laptop computer contained over 2500 images and 112 videos depicting children engaged in sexually explicit conduct. The majority of the child pornography files depicted children under the age of 12, including children as young as three.
Michalik, who faces up to 20 years in federal prison, was placed into the custody of the U.S. Marshals Service following the verdict. Sentencing is scheduled for 9:00am on December 9, 2019, before Senior U.S. District Judge David A. Ezra.
HSI agents investigated this case. Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Judge Decides CVS-Aetna Final Judgment is in the Public Interest and Grants United States' MotionRead the Press Release
A federal district court in Washington, D.C. today entered a final order giving effect to the settlement that the Department of Justice reached with CVS Health Corporation and Aetna Inc., which required the parties to divest Aetna’s Medicare Part D prescription drug plan (PDP) business for individuals in order to proceed with their $69 billion merger. The divestiture to WellCare Health Plans Inc., an experienced health insurer focused on government-sponsored health plans, including Medicare Part D individual prescription drug plans, resolved the department’s competition concerns with the underlying transaction.
“I am pleased with the Court’s decision finally to enter the judgment as ‘well within the reaches of the public interest’ !” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The divestiture of Aetna’s individual PDP business provides a comprehensive remedy to the harms the Justice Department identified. The entry of the Final Judgment protects seniors and other vulnerable customers of individual PDPs from the anticompetitive effects that would have occurred if CVS and Aetna had merged their individual PDP businesses.”
The department’s Antitrust Division, along with the offices of five state Attorneys General, filed a civil antitrust lawsuit on Oct. 10, 2018, in the U.S. District Court for the District of Columbia to enjoin the proposed transaction. At the same time, the department and the Plaintiff States filed the proposed settlement, which the Court entered today. The participating state Attorneys General offices represent California, Florida, Hawaii, Mississippi and Washington.
CVS, headquartered in Woonsocket, Rhode Island, is the nation’s second-largest provider of individual prescription drug plans, with approximately 4.8 million members. It also operates a retail pharmacy chain and a pharmacy benefit manager called Caremark. CVS earned revenues of approximately $185 billion in 2017.
Aetna, headquartered in Hartford, Connecticut, was the nation’s third-largest health-insurance company and fourth-largest individual prescription drug plan insurer, with over two million prescription drug plan members. Aetna earned revenues of approximately $60 billion in 2017.
Johnson County Man Sentenced to 65 Months for Embezzling from a Lexington BusinessRead the Press Release
LEXINGTON, Ky. – Franklin Fletcher, 55, of Oil Springs, Ky., was sentenced on Friday to 65 months in federal prison, by Chief United States District Judge, Danny C. Reeves, for wire fraud and aggravated identity theft. Fletcher was also ordered to pay $374,192.89 in restitution.
Fletcher pleaded guilty on May 9, 2019, and admitted to embezzling nearly $375,000 from his former employer, NYTIS Exploration, from September 2012 until March 2018. According to court records, Fletcher abused his authority as an Accounting Manager to generate checks that he would deposit into his own accounts. He engaged in a complicated series of actions to hide the stolen money from his employer. He further concealed his crime by writing the checks in another individual’s name and forging her signature on the endorsement line.
According to court documents, this was not Fletcher’s first act of embezzlement. Records indicate that from some point until 2009, Fletcher embezzled nearly $1,000,000 from his then-employer, again abusing his position in accounting at that Kentucky energy company. Fletcher paid a significant portion of the money he embezzled from NYTIS Exploration against the restitution agreement he had entered into with his prior employer.
Under federal law, Fletcher must serve 85 percent of his prison sentence, and upon his release, he will be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky and Richard Ferretti, Special Agent in Charge for the United States Secret Service, jointly announced the sentence.
Jefferson County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A 28-year-old Beaumont, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Raymond Earl Robinson, III, pleaded guilty on April 15, 2019, to being a felon in possession of a firearm and possession of a firearm during a drug trafficking crime and was sentenced to 97 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on Feb. 11, 2018, Robinson was a passenger in a vehicle stopped by local police in Beaumont. A search of the vehicle during the stop revealed a loaded automatic handgun, ammunition and various illegal drugs including marijuana, Xanax, Hydrocodone, and methamphetamine. On Mar. 24, 2018, Robinson was driving a vehicle in Beaumont when he was stopped by local police. During the traffic stop, it was discovered that Robinson had multiple warrants and was arrested. A semiautomatic handgun was discovered during a search of the vehicle. Further investigation revealed Robinson was a convicted felon having been previously found guilty of possession of a controlled substance in 2012, evading arrest in 2013, firearms smuggling in 2013, and unlawfully carrying a weapon in 2015. It is a violation of federal law for a convicted felon to own or possess a firearm or ammunition. Robinson was indicted on June 6, 2018 and charged with federal firearms violations.
“By removing a criminal involved in the illegal possession of firearms and narcotics, ATF and Beaumont Police Department have successfully shortened the reach of this individuals’ capability to do harm to our community,” said ATF Special Agent in Charge Fred Milanowski.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Inmate at FCI Gilmer indicted for attempting to obtain suboxoneRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eduardo Ramos, an inmate at FCI Gilmer in Glenville, West Virginia, was indicted by a federal grand jury today for attempt to possession contraband, United States Attorney Bill Powell announced.
Ramos, age 35, is charged with one count of “Attempt to Obtain a Prohibited Object (Narcotic).” Ramos is accused of attempting to obtain suboxone inside FCI Gilmer in December 2018.
Ramos faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Prisons Special Investigation Services investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal alien indicted on reentry chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jesus Sinaca-Ambrose, a citizen of Mexico, was indicted by a federal grand jury today on a reentry charge, United States Attorney Bill Powell announced.
Sinaca-Ambrose, age 30, was indicted on one count of “Reentry of Removed Alien.” Sinaca-Ambrose is accused of being in Berkeley County in July 2019 after being removed twice for being in the country illegally.
Sinaca-Ambrose faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the case on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement and the Martinsburg Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Houston-Area Man Who Posed as Physician Found Guilty of Conspiring to Unlawfully Prescribe Hundreds of Thousands of Doses of OpioidsRead the Press Release
A Houston-area man who posed as a physician at an unregistered pain clinic was found guilty today for his role at a “pill mill” at which he and his co-conspirators illegally prescribed hundreds of thousands of doses of opioids and other controlled substances.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas and Special Agent in Charge Will R. Glaspy of the Drug Enforcement Administration’s (DEA) Houston Division made the announcement.
After a five-day day jury trial, Muhammad Arif, 61, of Katy, Texas, was found guilty of one count of conspiracy to unlawfully distribute and dispense controlled substances and three counts of unlawfully distributing and dispensing controlled substances. Arif is expected to be sentenced on a date not yet determined by U.S. District Judge Alfred H. Bennett of the Southern District of Texas, who presided over the trial.
According to the evidence presented at trial, from September 2015 through February 2016, Arif conspired with a doctor and with the owner of Aster Medical Clinic of Rosenberg, Texas, which operated as an illegal pill mill, to unlawfully prescribe controlled substances to patients. The evidence showed that Arif was not licensed to practice medicine in the United States, but posed as a physician at Aster Medical Clinic, saw patients as if he were a physician and wrote prescriptions for patients on prescription pads that had been pre-signed by the doctor, Arif’s co-conspirator.
Through this scheme, Aster Medical Clinic dispensed prescriptions for over 200,000 dosage units of hydrocodone, a Schedule II controlled substance, and over 145,000 dosage units of carisoprodol, a Schedule IV controlled substance. The combination of hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit, the evidence showed.
Trial evidence showed that Aster Medical Clinic issued unlawful prescriptions for controlled substances to over 40 people on its busiest days. “Crew leaders” brought numerous people to pose as patients at Aster Medical Clinic and paid for their visits in order to obtain prescriptions for controlled substances that the crew leaders would then sell on the street. Aster Medical Clinic charged approximately $250 for each patient visit, and required payment in cash, the evidence showed.
To date, two co-conspirators have pleaded guilty based on their roles in the unlawful prescription scheme at Aster Medical Clinic. Baker Niazi, 48, of Sugar Land, Texas, and Waleed Khan, 47, of Parker, Texas, are currently awaiting sentencing before U.S. District Judge Alfred H. Bennett of the Southern District of Texas.
The case was investigated by the DEA, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Deputy Chief Aleza Remis and Trial Attorney Alexis Gregorian of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Houston, Pa. Man Pleads Guilty to Multiple Drug and Firearms OffensesRead the Press Release
PITTSBURGH, PA - A resident of Washington County, Pennsylvania pleaded guilty in federal court today to violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Vashaun Lasalle Wright, 30, of Houston, PA, pleaded guilty to charges including conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl; possession with intent to distribute 40 grams or more of fentanyl and a quantity of cocaine; possession of firearms and ammunition by a convicted felon; and possession of firearms in furtherance of a drug trafficking crime before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that between March 7, 2018, and March 20, 2018, investigators with the Washington County District Attorney’s Office Drug Task Force utilized confidential informants to purchase quantities of fentanyl from Wright and his alleged co-conspirator, Alyssa Adkins. Through those investigative efforts, task force officers obtained a search warrant for a residence located on Main Street in Houston Borough, Washington County, which was utilized by the defendant and Adkins. On March 23, 2018, investigators served the search warrant and seized over 40 grams of fentanyl (which was packaged for distribution), a quantity of cocaine (which was packaged for distribution), approximately $24,000 in U.S. Currency, and three loaded firearms, amongst other evidence. Wright, a felon, admitted in connection with the plea that he unlawfully possessed the three seized firearms and ammunition. Federal law prohibits individuals with prior felony convictions from possessing firearms or ammunition. Wright further admitted to possessing the firearms in furtherance of the drug trafficking crimes charged in the Indictment.
Judge Horan scheduled sentencing for October 30, 2019, at 10:30 a.m. The law provides for a total sentence of not less than ten years and up to life in prison, a fine of not more than $11,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Washington County District Attorney’s Office Drug Task Force, Pennsylvania State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the prosecution of Wright.
Houston Woman Admits to Defrauding Dr. Pepper SnappleRead the Press Release
HOUSTON – The 42-year-old Friendswood woman charged with committing fraud against a popular beverage company has admitted her guilt, announced U.S. Attorney Ryan K. Patrick.
Anna Maria Sites pleaded guilty today before U.S. Magistrate Judge Nancy Johnson to conspiracy to commit mail fraud against Dr. Pepper Snapple Group Inc. (DPSG).
Sites admitted to participating in the scheme from 2010 through Feb. 17, 2015, by not paying rebates to those who had requested them. Sites handled human resources and accounting for FulFill Plus Inc., which administered the DPSG rebate campaigns. The rebates included returned bottle caps or for switching to DPSG brand drinks in restaurant/convenience store soda dispensers. DPSG paid FulFill to administer those campaigns.
Specifically, in 2014 and 2015, FulFill administered a DPSG program known as 2014 Fast Start, which paid a $75 rebate for switching to a DPSG drink in soda dispensers. DPSG paid $125,000 for FulFill to manage this campaign. Sites was responsible for rebates not being issued. Only after receiving multiple complaints would she arrange for the monies to be dispersed.
Sites sent rebate fund reports for the 2014 Fast Start rebate program to DPSG, which falsely represented that rebates were being paid when, in truth, they were not.
DPSG suffered a financial loss as a result of the scheme Sites committed. The court will determine that official amount at the time of sentencing.
U.S. District Judge Gray Miller will impose sentencing Dec. 4, 2019. At that time. Sites faces up to five years in prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Hollywood Hills Man Arrested on Federal Charges of Selling Fentanyl-Laced Pills to Rapper Mac Miller Two Days before His Overdose DeathRead the Press Release
COMPLAINTLOS ANGELES – A Hollywood Hills resident was arrested this morning on federal charges alleging that he sold counterfeit pharmaceutical narcotics containing fentanyl to Mac Miller two days before the hip-hop artist died of a drug overdose.
Cameron James Pettit, 28, was arrested this morning by special agents with the Drug Enforcement Administration and officers with the Los Angeles Police Department. Pettit is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
Pettit was arrested pursuant to a criminal complaint filed last Friday that charges him with one count of distribution of a controlled substance.
According to the affidavit in support of the criminal complaint, Pettit and others distributed narcotics to 26-year-old Malcolm James McCormick – who recorded and performed under the name Mac Miller – approximately two days before McCormick suffered a fatal drug overdose in Studio City on September 7, 2018. The Los Angeles County Medical Examiner-Coroner later determined that McCormick died of mixed drug toxicity involving fentanyl, cocaine and alcohol.
According to communications detailed in the affidavit, late on the night of September 4, Pettit agreed to supply McCormick with 30 milligram oxycodone pills, as well as cocaine and the sedative Xanax. But, instead of providing McCormick with genuine oxycodone when he made the delivery during the early morning hours of September 5, Pettit allegedly sold McCormick counterfeit oxycodone pills that contained fentanyl – a powerful synthetic opioid that is 50 times more potent than heroin.
Two days after Pettit allegedly supplied McCormick with the fentanyl-laced pills, McCormick died in his Studio City home. The affidavit states that that hours after news outlets reported McCormick’s death, Pettit sent a message to a friend saying, “Most likely I will die in jail.”
Investigators believe that McCormick died after snorting the counterfeit oxycodone pills containing fentanyl and that those pills had been provided by Pettit, according to the affidavit. While another individual allegedly supplied McCormick with other drugs prior to his death, according to the affidavit those narcotics drugs did not contain fentanyl.
“Fentanyl disguised as a genuine pharmaceutical is a killer – which is being proven every day in America,” said United States Attorney Nick Hanna. “Drugs laced with cheap and potent fentanyl are increasingly common, and we owe it to the victims and their families to aggressively target the drug dealers that cause these overdose deaths.”
“While the death of any victim of the opioid epidemic is tragic, today’s arrest is another success for the DEA’s HIDTA Fusion Task Force,” said DEA Los Angeles Deputy Special Agent in Charge Daniel C. Comeaux. “Let our message be clear, if you peddle illegal drugs and kill someone, the DEA will be the voice of the victim. We will not rest until you face the justice system.”
If convicted of the drug trafficking charge alleged in the complaint, Pettit would face a statutory maximum sentence of 20 years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The ongoing investigation in this matter is being conducted by the High Intensity Drug Trafficking Area’s (HIDTA) Opioid Response Team, which operates under the direction of the DEA. The Los Angeles Police Department provided substantial assistance in this matter.
This case is being prosecuted by Assistant United States Attorney Matthew J. Jacobs of the General Crimes Section.
Hinds County Man Pleads Guilty Under Project EJECT to Illegal Possession of FirearmRead the Press Release
Jackson, Miss. – Herbert Thomas, 41, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On January 23, 2018, Thomas fled from Jackson Police Department officers, first in his vehicle and then on foot, before ultimately being subdued by law enforcement. Upon a subsequent inventory of his vehicle, a firearm was located. When interviewed, Thomas admitted to knowingly possessing the firearm and being a convicted felon. He was previously convicted of felonious motor vehicle theft and felony fleeing from a law enforcement officer in Hinds County in 2009
Thomas will be sentenced by Chief Judge Jordan on January 6, 2020 at 9:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson Police Department. It is being prosecuted by Assistant United States Attorneys Lynn Murray and Andrew W. Eichner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hartford Man Sentenced to 54 Months in Prison for Trafficking Heroin, Fentanyl and Other DrugsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANGEL GONZALEZ, also known as “Spider” and “June,” 41, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 54 months of imprisonment, followed by three years of supervised release, for distributing large quantities of heroin and fentanyl in Hartford.
According to court documents and statements made in court, in August 2017, the Drug Enforcement Administration’s Hartford Task Force launched an investigation into an organization that was selling large amounts of heroin, fentanyl and other narcotics in Hartford. The investigation, which included approximately six months of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that members of the organization supplied distribution quantities of narcotics to several Hartford-area drug dealers, and used multiple locations in Hartford to process, store and distribute narcotics. Gonzalez made street-level sales of heroin, fentanyl, cocaine and crack cocaine on behalf of this organization.
Gonzalez and other members of the organization were arrested on July 19, 2018. On that date, investigators executed 10 search warrants and seized more than five kilograms of heroin and/or fentanyl, approximately 600 grams of crack cocaine, eight firearms, cash, and other evidence of narcotics trafficking activity. A search of Gonzalez’s residence revealed 33 grams of fentanyl that was packaged for street sale, approximately 19 grams of crack cocaine, $4,147 in cash, and other items.
On August 2, 2018, a grand jury in Hartford returned an indictment charging Gonzalez and 15 co-defendants with various offenses.
Gonzalez has been detained since his arrest. On June 10, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin, fentanyl, cocaine and cocaine base (“crack”).
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut Department of Correction, and the East Hartford, New Britain, Newington and West Hartford Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Harrison County man indicted on drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Timothy Rock, of Clarksburg, West Virginia, was indicted by a federal grand jury today on drug charges, United States Attorney Bill Powell announced.
Rock, age 41, was indicted on four counts of “Distribution of Heroin.” Rock is accused of distributing heroin in Harrison County in July, September, and October 2016.
Rock faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Grant County man indicted for firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Jonathan Turner, of Petersburg, West Virginia, was indicted by a federal grand jury today for a firearms charge, United States Attorney Bill Powell announced.
Turner, age 39, is charged with one count of “Unlawful Possession of Firearms.” Turner, a person prohibited from having a firearm, is accused of having three pistols and a rifle in March 2018 in Hampshire County.
Turner faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Peruvians Sentenced for Overseeing Spanish-Speaking Call Centers That Threatened and Extorted U.S. ConsumersRead the Press Release
Four residents of Lima, Peru, charged with overseeing a series of call centers that threatened and extorted Spanish-speaking victims in the United States, have been sentenced to prison, the Department of Justice and U.S. Postal Inspection Service announced.
Jesus Gutierrez Rojas, 37, Alexandra Podesta Bengoa, 38, Virgilio Polo Davila, 43, and Omar Portocarrero Caceres, 39, were extradited from Peru in April. Each pleaded guilty to extortion and has now been sentenced to prison by U.S. District Court Judge Roy K. Altman in Fort Lauderdale. As part of his guilty plea, Gutierrez admitted that he oversaw a series of affiliated call centers in Peru that falsely told Spanish-speaking victims across the United States that they had incurred debts and would suffer various consequences for failure to pay off the debts that they did not, in fact, owe. As part of their guilty pleas, Podesta, Polo, and Portocarrero admitted that they managed and supervised three of these affiliated call centers that used extortion to obtain money from vulnerable U.S. consumers.
Yesterday, Judge Altman sentenced Gutierrez to 51 months in federal prison for his role overseeing the affiliated call centers and sentenced Podesta and Polo to 46 months imprisonment. Judge Altman sentenced Portocarrero to 46 months in federal prison on July 24. Each defendant was also ordered to serve three years’ supervised release following their terms of incarceration and to make restitution payments to the victims of their scheme.
“The Department of Justice is committed to identifying and prosecuting foreign-based fraud schemes that target and extort U.S. consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Today’s prison sentences reflect that those who unlawfully take advantage of U.S. consumers by phone cannot escape justice by placing their calls from abroad. The Department of Justice’s Consumer Protection Branch will continue to work hand-in-hand with our Transnational Elder Fraud Strike Force partners to bring to justice international fraudsters who prey on vulnerable U.S. consumers.”
As part of their guilty pleas, Podesta, Polo, and Portocarrero each admitted that their Peruvian call centers contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based calls. Falsely claiming to be attorneys and government representatives, Podesta, Polo, Portocarrero, and their employees falsely told victims that they failed to pay for or receive a delivery of products and threatened them into paying fraudulent settlements for nonexistent debts. The callers falsely threatened victims with lawsuits, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and “settlement fees.” Many victims made monetary payments based on these baseless extortionate threats.
Gutierrez was the general manager of a larger company where he worked in partnership with Podesta, Polo, Portocarrero, and others to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments from thousands of victims across the U.S.
“The reach of our U.S. justice system is long,” said U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan. “The sentences imposed demonstrate that we are committed to prosecuting those individuals who threaten U.S. consumers no matter where they are located.”
“The U.S. Postal Inspection Service will continue to aggressively pursue and bring to justice international criminal enterprises that prey on our most vulnerable citizens by fraudulently using the U.S. Mail to further their schemes,” said Acting Miami Division Postal Inspector in Charge Lesley Allison.
At Portocarrero’s July 24 sentencing, Judge Altman said that the brazen, large-scale nature of the defendants’ scheme was “shocking.” Judge Altman noted that the defendants exploited “the most vulnerable people in our country” and said that their offense conduct was “terribly disgraceful.”
With yesterday’s three sentencings by Judge Altman, all five defendants who have been charged in connection with this large-scale extortion scheme have now been sentenced to terms of imprisonment.
Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch is prosecuting the case. The U.S. Postal Inspection investigated the case. The Criminal Division’s Office of International Affairs secured the extradition of the defendants, and the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Fort Wayne Woman Sentenced to 84 Months in PrisonRead the Press Release
FORT WAYNE- Wendi Flores aka Wendi Collins, 39, of Fort Wayne, Indiana was sentenced by U.S. District Court Chief Judge Holly Brady after pleading guilty to distribution of methamphetamine, announced U.S. Attorney Thomas L. Kirsch II.
Ms. Flores was sentenced to a total of 84 months in prison followed by 4 years of supervised release.
According to documents in this case, there were two controlled buys of ½ ounce of methamphetamine from Ms. Flores. Flores was stopped by the Fort Wayne Police Department and they located 16 grams of methamphetamine on her person. She has six prior convictions, all for controlled substance related offenses including one conviction for dealing in controlled substances.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Stacey R. Speith.
Fort Dodge Woman Sentenced to Repay Iowa Department of Human Services Nearly $35,000 in Supplemental Nutrition Program (SNAP) FundsRead the Press Release
A woman who unlawfully obtained SNAP funds for her household was sentenced September 3, 2019, to time served and restitution.
Jessica Martinez-Roque, age 34, from Fort Dodge, Iowa, received the sentence after a guilty plea to one count of theft of government funds.
In a plea agreement, Martinez-Roque admitted that between about May 1, 2014, and January 31, 2019, she knowingly lied on application forms to acquire Supplemental Nutrition Program (SNAP) funds, to which she knew she was not entitled, in the sum of $34,656.
SNAP, formerly Food Stamps, is a federally funded program, administered by the states, that assists households in purchasing food. Households must meet income, resource, and various non-financial eligibility criteria in order to qualify for said benefits. The amount of monthly assistance is dependent upon reported income and the number of individuals within the household. Martinez-Roque reported on her Iowa Department of Human Services (DHS) applications and review/recertification eligibility documents (RREDs) that she was not employed or only worked short periods of time. She failed to report the father of her three children was living in the home and working full time. Properly reporting his income would have made her household ineligible for benefits.
Martinez-Roque was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Martinez-Roque was sentenced to time served. She was ordered to make $34,656 in restitution to the Iowa Department of Human Services. She must also serve a 3-year term of supervised release.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the United States Department of Agriculture, Office of Inspector General (USDA-OIG), the Department of Homeland Security, Bureau of Immigration and Customs Enforcement (ICE), and the Iowa Department of Inspections and Appeals (IDIA).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-03006.
Follow us on Twitter @USAO_NDIA.
Fort Dodge Man to Federal Prison for Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine while illegally possessing firearms was sentenced August 30, 2019, to 20 years in federal prison.
Wayne Quillen, age 49, from Fort Dodge, Iowa, was convicted of conspiracy to distribute methamphetamine; possession with intent to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a felon. Quillen was previously convicted of robbery in the first degree in 1989 and possession of methamphetamine with intent to distribute in 2001, each in Webster County, Iowa.
At the plea hearing on March 12, 2019, Quillen admitted that from about 2017 through July 2018, he and others conspired to distribute more than three pounds of methamphetamine in the Fort Dodge area. On December 27, 2017, law enforcement executed a search warrant at the residence of a co-conspirator, Cody Groat, where Quillen was living. Officers seized ¾ pound of methamphetamine, three handguns, a modified (short) .410 shotgun with no serial number, and assorted 9mm ammunition. Two of the 9mm handguns had been stolen and the short shotgun possessed by defendant had a makeshift shoulder strap and was found just outside defendant’s bedroom in the basement.
Quillen was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Quillen was sentenced to 240 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system. Quillen is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Fort Dodge Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Webster County, Iowa Sheriff’s Office, and Iowa Division of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3023. Follow us on Twitter @USAO_NDIA.
Former Supervisor at Richwood Correctional Center Sentenced for Violating Civil Rights of Five InmatesRead the Press Release
The Department of Justice today announced that defendant Christopher Loring, a former lieutenant at the Richwood Correctional Center, was sentenced to 46 months in prison in federal court today for his role in a conspiracy to cover up the abuse of five inmates by corrections officers. Loring, 37, of Winnsboro, Louisiana, pleaded guilty to conspiring with other officers to falsify documents with intent to obstruct and influence the investigation of a matter within federal jurisdiction.
According to his guilty plea, Loring failed to intervene when four other officers sprayed a chemical agent directly in the faces and eyes of five inmates while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Following that abuse, Loring and the other officers conspired to hide their conduct by submitting false reports.
Loring was the last of the five officers to be sentenced by U.S. District Judge Terry A. Doughty of the Western District of Louisiana. Assistant Attorney General Eric Dreiband for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph made the announcement.
“The final sentencing in this conspiracy represents the Department of Justice’s commitment to prosecuting those who abuse their power,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to defend those who have had their civil rights violated.”
“I hope that the conclusion of this case demonstrates our commitment to ensure that Louisiana’s correctional officers follow the law and do not abuse the inmates under their supervision,” U.S. Attorney Joseph stated. “I want to commend the investigators and prosecutors who worked on this case.”
Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, prosecuted the case. The Monroe Division of the FBI investigated the case.
Former Senior UAW Official Pleads Guilty to Taking over $1.5 Million in Bribes and KickbacksRead the Press Release
Michael Grimes, a former high-level official in the UAW’s General Motors Department, pleaded guilty today to conspiring with other UAW officials to engage in honest services fraud by taking over $1.5 million in bribes and kickbacks from UAW vendors and contractors and to conspiring to launder the proceeds of the scheme announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Rainer S. Drolshagen, Acting Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Michael Grimes, 65, of Ft. Myers, Florida, who is a native of Grand Blanc, Michigan, pleaded guilty to conspiring to engage in honest services wire fraud and to conspiring to launder money between 2006 and 2018. During the plea hearing, Grimes admitted that he conspired with two other high-level UAW officials in the UAW’s GM Department to take millions of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources. The Center for Human Resources is supposed to be a center for training UAW workers employed by GM. Grimes and the other UAW officials served on the Executive Board for the Center for Human Resources, and they were responsible for approving contracts with the vendors. Grimes admitted that over the course of the twelve year conspiracy, he and the other two UAW officials demanded bribes and kickbacks from the vendors in exchange for securing or maintaining contracts with the Center for Human Resources or with the UAW’s GM Department.
Grimes and his co-conspirators took bribes and kickbacks from the vendors in exchange for contracts with the UAW and/or the Center for Human Resources for watches, jackets, backpacks, and UAW stores at GM manufacturing facilities. For example, in 2011, Grimes and two other UAW officials demanded that a vendor give them a $300,000 kickback on a $6 million contract to purchase 50,000 jackets emblazoned with “Team UAW-GM.” Grimes collected the $300,000 kickback and delivered the proceeds to two other UAW officials. In addition, Grimes demanded an additional kickback for $525,000 from the same vendor for the same jacket contract.
In another corrupted contract, Grimes and his UAW co-conspirators demanded kickbacks on a $3.9 million contract for the Center for Human Resources to buy 58,000 watches for all UAW members employed by GM. The UAW officials demanded over $300,000 in kickbacks on the watch contract to be distributed between 2013 through 2016. Some of the kickbacks were distributed in the form of checks disguised as tens of thousands of dollars in payments for “antique furniture.” The majority of the kickbacks were distributed as cash. In 2014, the UAW-GM Center for Human Resources received the 58,000 watches from the vendor. However, the watches were never distributed to UAW members. Instead, the watches have been sitting in storage in a warehouse for over five years.
Besides conspiring with other UAW officials and vendors to the UAW, Grimes also admitted that he conspired to launder the proceeds of the kickback scheme by using various methods to conceal and disguise the bribes and kickbacks through a lengthy and complicated series of financial transactions involving millions of dollars.
Grimes is the ninth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), and former UAW Vice President Norwood Jewell (15 months in prison).
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The hard-working members of the UAW deserve to be represented by leaders who give them true leadership — and that means leadership that isn’t driven by corruption and greed,” said United States Attorney Matthew Schneider. “Today’s guilty plea is another step in the right direction of our battle against corruption in the union leadership.”
“Michael Grimes abused his former fiduciary position as an International United Auto Workers Union official by demanding and accepting over $1.5 million in kickbacks from vendors. Grimes chose greed over bargaining in the best interest of UAW members to personally enrich himself. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
"Today’s guilty plea highlights a years-long criminal investigation of wrongdoing between high ranking UAW officials and vendors,” said Acting Special Agent in Charge Drolshagen. “The FBI and our federal partners will remain vigilant in our efforts to expose these corrupt fraud schemes that continue to undermine the trust and hard work of union members.”
“For more than a decade Michael Grimes and other UAW officials were part of a corruption club that conspired to launder proceeds generated from the illegal kickback scheme. Grimes and others concealed the source of the money through a series of convoluted transactions totaling millions of dollars. This behavior served one purpose; self-enrichment and this greed became an epidemic throughout the corruption club,” stated Manny Muriel, Special Agent in Charge of Detroit’s IRS Criminal Investigation.
“Michael Grimes betrayed the trust of the union membership who rightfully expected him, as a union official, to protect and safeguard their union’s funds and assets instead of using his position to enrich himself and others within the UAW,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “The charges filed against Grime leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of union members.”
The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson, Eaton Brown and Adriana Dydell.
Former Rochester Bakery Owner Sentenced on Tax ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that William Cruz, 54, of Rochester, NY, who was convicted of subscribing false tax returns, was sentenced to serve two years of probation and perform 100 hours of community service by Chief U.S. District Judge Frank P. Geraci, Jr. The defendant was also ordered to pay $365,840 in restitution to the Internal Revenue Service, as well as penalties and interest.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that Cruz operated the Borinquen Bakery in Rochester from approximately 2005 through 2018. From at least 2012 through 2017, the defendant hid more than $1,000,000 in income from the IRS by underreporting the bakery’s revenues. This resulted in an aggregate tax loss to the IRS of at least $365,840.00.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan Larsen, Special Agent-in-Charge, New York Field Office.
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Former Registered Nurse Pleads Guilty to Illegal Distribution of Opioids, Health Care Fraud, Aggravated Identity Theft, and Obstruction of JusticeRead the Press Release
ALBANY, NEW YORK – Sarah Brown, age 42, of Akra, Greene County, New York, pled guilty today to conspiring to distribute controlled substances, health care fraud, aggravated identity theft, and obstruction of justice.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, United States Drug Enforcement Administration (DEA), New York Division.
As part of her guilty plea, Brown, a former registered nurse, admitted that between 2015 and 2017, she worked with a co-conspirator, Dr. Myra Mabry, to obtain prescriptions for oxycodone, morphine, and hydromorphone, for no legitimate medical purpose, by impersonating Mabry’s patients at pharmacies, knowing that health care benefit programs would pay the cost of the drugs.
Brown also admitted that she attempted to obstruct a federal investigation by testifying falsely before a federal grand jury that she was blackmailing Mabry into providing the prescriptions. As Brown admitted in her guilty plea, that was a lie, because Mabry was not the subject of an extortionate scheme, and was a willing member of the conspiracy to distribute opioids for no legitimate medical purpose. Brown admitted that Mabry agreed to pay Brown for the false testimony in the hope of minimizing Mabry’s criminal exposure and keeping her medical license.
Brown faces a mandatory 2-year term of imprisonment on the aggravated identity theft charge, and up to 20 years in prison on the remaining charges, when she is sentenced by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the DEA, with assistance from the New York State Bureau of Narcotic Enforcement, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Former Lackawanna County Prison Contract Employee Guilty of Providing Drugs to InmatesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brenda Cruise, age 48, of Dunmore, pleaded guilty on September 3, 2019 before U.S. District Court Judge James M. Munley, to conspiracy to provide contraband to inmates at the Lackawanna County Prison.
According to United States Attorney David J. Freed, Cruise admitted that while she worked as a contract employee at the prison, she participated in a scheme to bring marijuana, suboxone, synthetic marijuana (“spice”), and tobacco to inmates at the prison between February 2018 and December 2018.
Cruise is the fourth person to be charged and plead guilty as a result of the investigation. Sentencing for Cruise is scheduled for December 4, 2019.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
The maximum penalty under federal law is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Honduran National Police Officer Charged with Conspiring to Import Cocaine into the United States and Related Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Wendy Woolcock, Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that former Honduran National Police officer MAURICIO HERNANDEZ PINEDA (“HERNANDEZ PINEDA”) was charged in Manhattan federal court with conspiring to import cocaine into the United States and related weapons offenses involving the use and possession of machineguns and destructive devices. The case is assigned to U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Today’s charges against a high-ranking former Honduran National Police officer are disturbing. Honduras has long been a corridor for drug traffickers to ship their drugs to the United States from South America. As alleged, Mauricio Hernandez Pineda betrayed his obligations as a police officer to uphold his country’s laws and prevent trafficking through his country, and instead facilitated the shipments of tons of cocaine that eventually made its way to the U.S. Hernandez Pineda will soon have to answer for his alleged crimes in a U.S. court.”
DEA Special Agent in Charge Wendy Woolcock said: “DEA continues to uncover corruption at the highest levels of government and law enforcement across the world, including Honduras. This alleged criminal conspiracy involved huge amounts of cocaine trafficking into the United States. DEA will continue to attack global criminal networks who pose a direct threat to our safety and security. We look forward to seeing Mr. Hernandez-Pineda, a former high-ranking Honduran National Police official, face justice in a U.S. courtroom.”
As alleged in the Superseding Indictment unsealed in federal court:[1]
From 2000 up to and including 2018, multiple drug trafficking organizations in Honduras and elsewhere worked together, and with support from certain prominent public and private individuals, including Honduran politicians and law enforcement officials, to receive multi-ton loads of cocaine sent to Honduras from, among other places, Colombia via air and maritime routes, and to transport the drugs westward in Honduras toward the border with Guatemala and eventually to the United States. For protection from official interference, and in order to facilitate the safe passage through Honduras of multi-hundred-kilogram loads of cocaine, drug traffickers paid bribes to public officials, including certain members of the National Congress of Honduras.
HERNANDEZ PINEDA is a former high-ranking member of the Honduran National Police who participated in and supported the drug trafficking activities of, among others, his cousin, Juan Antonio Hernandez Alvarado, also known as “Tony Hernandez.” Among other things, HERNANDEZ PINEDA provided armed security, including individuals carrying machineguns, for multi-ton cocaine shipments sent through Honduras, and provided his co-conspirators with sensitive law enforcement information concerning planned operations so they could evade detection while transporting cocaine through Honduras. In exchange, HERNANDEZ PINEDA received hundreds of thousands of dollars in drug proceeds.
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HERNANDEZ PINEDA, 47, of Honduras, is charged with three counts: (1) conspiring to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; (2) using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the cocaine-importation conspiracy, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; and (3) conspiring to use and carry machine guns and destructive devices during, and to possess machine guns and destructive devices in furtherance of, the cocaine importation conspiracy, which carries a maximum sentence of life in prison.
The potential mandatory minimum and maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as the Office of International Affairs of the Justice Department’s Criminal Division.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Amanda L. Houle, Mathew J. Laroche, and Jason A. Richman are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Banker Pleads Guilty in Fraudulent Loan SchemeRead the Press Release
Memphis, TN – A former loan officer at Trustmark Bank pleaded guilty to a one-count information, which charged him in connection with a fraudulent loan scheme. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
According to the information, Robert A. Whartenby, 58, of Memphis, was a loan officer at Trustmark’s main Memphis office. Whartenby appeared before United States District Judge Sheryl H. Lipman and admitted that between May 2017, and June 2018, he defrauded Trustmark of almost $400,000 through a scheme in which he submitted false paperwork in support of loans to Memphis Designs Group, LLC and Windridge Investments, fictitious companies he had created. The loan proceeds were then disbursed to accounts at Bank of America which Whartenby had opened in the names of the fictitious entities.
U.S. Attorney D. Michael Dunavant said, "The financial fraud committed by this defendant is disturbing. The abuse of his position of trust and authority as a bank loan officer for his own personal gain had a significant negative impact on the shareholders, employees and customers of Trustmark Bank. The U.S. Attorney’s Office places a high priority on protecting the security and integrity of transactions, deposits and assets of financial institutions, and this case demonstrates that commitment."
A sentencing hearing is set for 2:00 p.m. December 12, 2019, before U.S. District Court Judge Sheryl H. Lipman.
Whartenby faces a maximum penalty of 30 years imprisonment, a fine of $1,000,000 and five years supervised release.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Carroll L. André III is prosecuting this case on behalf of the government.
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Florida Woman Indicted for Trafficking Drugs Through Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A 41-year-old Ft. Lauderdale, Florida woman has been indicted for federal drug trafficking violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Shenita Denise Peterson was indicted today and charged with possession with intent to distribute cocaine.
According to information provided in court, on Aug. 23, 2019, Peterson was stopped for a traffic violation on Interstate Highway 10 in Beaumont, Texas. A search of the vehicle revealed approximately 45 individual kilograms of cocaine, which were concealed in the door panels of the vehicle.
If convicted, Peterson faces up to life in federal prison.
This case is being investigated by the Beaumont Police Department and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Five Individuals Convicted for Participating in Global Fraud SchemeRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Justin Green, Special Agent in Charge, Miami Field Office, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), announced the convictions of five defendants for various offenses relating to a global fraud scheme that relied upon false claims about the United States military and the Government of Afghanistan.
Six individuals were charged for their involvement in the global fraud scheme (Case No. 18-20668-CR-DMM). Byramji Javat, a citizen of Pakistan and Chairman of the Dubai-based Uniworld Group, pleaded guilty on August 19, 2019, to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section1349. Javat faces a maximum sentence of 20 years in prison, plus potential restitution and a fine of up to $250,000. Sunil Chopra and William Armando, both residents of California, each pleaded guilty on August 19, 2019, to one count of conspiracy to obtain pre-retail medical products worth $5,000 or more by fraud or deception, in violation of Title18, United States Code, Section 670(a)(6). They face a maximum statutory penalty of 15 years in prison. Emanuel Daskos, pleaded guilty on July 16, 2019, to also violating Title 18, United States Code, Section 670(a)(6). Luis Soto, a customs broker residing in Miami, Florida, was convicted by a trial jury on August 23, 2019, of one count of conspiracy to commit wire fraud, one count of conspiracy to obtain pre-retail medical products worth $5,000 or more by fraud or deception, two counts of wire fraud contrary to Title 18, United States Code, Section 1343, and two counts of obtaining pre-retail medical products by fraud or deception, contrary to Title 18, United States Code, Section 670(a)(1). The defendants have not yet been sentenced. One defendant, James Sipprell, a resident of Georgia, is awaiting trial and is presumed innocent.
According to the superseding indictment, between 2014 and 2017, Javat orchestrated a fraud scheme to purchase FDA-regulated products including medical devices from manufacturers in the United States at deeply discounted prices by lying to them about the destination and purpose of the goods. Javat represented that he was a large supplier of medical and food products to United States troops in Afghanistan, and sought deep discounts from the manufacturers by claiming that he could provide their goods to American troops in Afghanistan or to the Afghan people. In truth, Javat wanted to obtain these products at prices not generally offered in the United States in order to sell those products himself in this country – not abroad, and not to the military – at a significant profit.
To execute this scheme, the conspirators insisted that products be packaged for the United States market, falsely claiming to the manufacturers that this was required by the U.S. military, the Afghan government, or the “Buy American Act.” When the products nonetheless had stickers or other packaging on them stating that the items were for export only, the conspirators secretly removed those labels. After acquiring the products, Javat and the co-conspirators arranged for the diversion of the products to various locations in the United States. To conceal this activity, the conspirators typically shipped the products abroad and then had them immediately shipped back to the United States, or provided the victims with fraudulent shipping documentation showing that the products were exported when actually they had never left this country.
Javat admitted the allegations of the superseding indictment during his guilty plea. During Soto’s trial, the government proved these allegations to the jury and presented additional evidence about the defendants’ scheme. For example, the conspirators often represented that they were purchasing items on behalf of the Afghanistan Reconstruction and Development Services (“ARDS”), which at one time was an agency of the Afghan Government funded in part by the United States. That agency ceased to exist after 2014, yet the conspirators provided victims with fake documents supposedly from ARDS imposing extravagant demands that in reality only suited the conspirators’ needs. In 2016, Uniworld prepared an internal Powerpoint presentation expressly informing its staff that they had to be “good at lying.” Finally, because these goods were moving outside normal channels, they often were mishandled; for example, according to the conspirators’ own emails at the time, the defendants disregarded temperature requirements when transshipping over-the-counter pain medicines, one of the defendants kept a shipment of diabetic test strips that required refrigeration in his car trunk overnight and another shipment of medical products became covered in bird droppings. The products involved in Javat’s scheme included surgical instruments, professional dental care devices, bandages, and aspirin.
The evidence at trial demonstrated that Soto knew about Javat’s fraud scheme yet knowingly helped him by supplying paperwork to federal agencies including the FDA to facilitate the re-entry of the diverted products into the United States through the Port of Miami or Miami International Airport. Chopra, Armando and Daskos also knowingly furthered the scheme by helping to transport the products and remove export labels.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FDA-OCI. The case is being prosecuted by Assistant U.S. Attorneys David Turken and John Shipley.
Financial Adviser Pleads Guilty to Defrauding Clients in Fake Investment SchemeRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced today that ELIAS HERBERT HAFEN, a former financial adviser at two investment banks with offices in Manhattan, pled guilty today to investment adviser fraud in connection with having defrauded his clients out of hundreds of thousands of dollars. HAFEN surrendered to law enforcement and was presented before Magistrate Judge Debra Freeman in Manhattan federal court this afternoon, and he pled guilty before District Judge Alvin K. Hellerstein this afternoon.
U.S. Attorney Geoffrey S. Berman said: “Elias Hafen promised his investment clients significant returns in a ‘special’ fund. With fake statements and guaranteed returns, Hafen was every investor’s worst nightmare. He never invested his clients’ money and instead used it to fund his own lavish lifestyle. Today, Hafen admitted his crimes and he will soon likely spend time in prison for his misdeeds.”
According to allegations in the Information and other documents filed in federal court, as well as statements made in public court proceedings:
From 2013 until 2018, HAFEN engaged in a scheme to defraud at least 11 of his financial advisory clients into believing that HAFEN had access to a high-yield investment fund with guaranteed returns, which was not affiliated with the investment bank at which HAFEN worked. On HAFEN’s advice, these clients transferred hundreds of thousands of dollars directly to HAFEN’s personal bank account for investment in the purported investment fund over the years that HAFEN engaged in his fraudulent scheme. HAFEN also created fictitious “Investor’s Statements” bearing the name of a non-existent investment company purporting to detail the status of his victims’ investments. In reality, however, there was no investment fund at all; HAFEN was using the victims’ funds to pay for a lavish lifestyle including custom men’s accessories and an expensive collection of artwork.
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HAFEN, 64, of New Canaan, Connecticut, pled guilty to one count of investment adviser fraud, which carries a maximum penalty of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
HAFEN is scheduled to be sentenced by Judge Hellerstein on January 14, 2020.
Mr. Berman praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jacob R. Fiddelman is in charge of the prosecution.