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Friday 19 July 2019
Schenectady Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – William Reid, age 38, of Schenectady, New York, pled guilty today to two counts of distributing crack cocaine, announced United States Attorney Grant C. Jaquith and James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Reid admitted that he sold 33.4 grams of crack cocaine on April 26, 2018 and 8.9 grams of crack cocaine on June 22, 2018, each time in Schenectady.
As a result of his conviction, Reid faces at least 5 years and up to 40 years in prison, and a term of post-release supervision of at least 4 years and up to life. 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. Sentencing is scheduled for November 14, 2019 before Senior United States District Judge Thomas J. McAvoy.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force. It is being prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
Rockland County Man Sentenced for His Role in Mortgage Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Badu, 56, of New City, NY, who was convicted of conspiring to commit mail and wire fraud affecting a financial institution, was sentenced to time served and 10 months home detention by U.S. District Court Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that between 2008 and 2009, the defendant conspired with others to defraud The Funding Source (“TFS”), a mortgage bank, and other financial institutions by submitting fraudulent applications for home loans. After being originated by TFS, the loans were sold to other financial institutions, including M&T Bank and JPMorgan Chase.
The co-conspirators in this case submitted fraudulent applications for loans on eight properties in Bronx, NY. They fraudulently obtained mortgages that were insured by FHA on behalf of unqualified borrowers, such as the defendant. Badu was the purchaser on two of the properties and he aided in the submission of false documentation as part of the loan application, including documents purporting to show income from a fake job. The defendant also backstopped false employment for another loan, pretending that the borrower worked for his ophthalmology company, Eagle Eyes, which in reality was a shell company that performed no business.
The total loan amount for these eight transactions was $4,800,007.In total, six defendants have pleaded guilty for their roles in this fraud. Attorney Laurence Savedoff, Esq. pleaded guilty to a misprision of a felony and was sentenced to four months in prison. Realtor and appraiser Julio Rodriguez pleaded guilty to mail and wire fraud affecting a financial institution, and a conspiracy to do the same, and was sentenced to six months in prison. Sentencing hearings are pending for mortgage broker Gregory Gibbons, and realtors Tina Brown and Alagi Samba.
The sentencing is the culmination of an investigation by the United States Postal Inspection Service under the direction of Joseph W. Cronin, Inspector-in-Charge, Boston Division; the United States Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert. Additionally, the New York State Department of Financial Services assisted with the investigation.
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Rochester Man Sentenced for Possession of Child PornographyRead 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 Eric Birkedahl, 32, of Rochester, NY, who was convicted of possession of child pornography, was sentenced to serve 24 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that Birkedahl was located by undercover FBI Agents while trading child pornography online. During the execution of a search warrant at his residence, the defendant was found to be in possession of approximately 3,613 images and 3,726 videos of child pornography on his desktop computer.
The sentencing is the result of an investigation by the Rochester Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Paducah Man Hit with Williamson County Drug ChargeRead the Press Release
Ronald R. Springfield, 35, of Paducah, Kentucky, has been indicted by a federal grand jury for
possession with intent to distribute methamphetamine, U.S. Attorney Steven D. Weinhoeft announced
today. According to the indictment, the offense occurred on April 30, 2019, in Williamson County.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be
innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.Springfield made his initial appearance in federal court yesterday and pleaded not guilty. He was
ordered held without bond pending a July 19 detention hearing. The charged offense carries a
maximum penalty of up to 20 years imprisonment, 3 years supervised release, and a $1 million fine.The ongoing investigation is being conducted by the Southern Illinois Enforcement Group.
The Energy Police Department assisted in the investigation.
North Carolina Man Sentenced to over Six Years in Prison for National Counterfeit Check SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Ahmad Jamaal Becoate, 32, of Greensboro, North Carolina, was sentenced to 75 months’ imprisonment by United States District Judge Joseph Leeson, sitting in Allentown. The court also ordered the defendant to pay $443,542 in restitution and entered a forfeiture money judgment in the amount of $132,542.61. The defendant pleaded guilty in February 2019 to charges including conspiracy to commit wire fraud and pass counterfeited securities, three counts of wire fraud, and aggravated identity theft.
Becoate and eight others were charged in December 2018 by superseding indictment for involvement in an extensive scheme to defraud Walmart stores across the United States using counterfeit checks and stolen social security numbers. The conspiracy operated from at least June 2016 to July 2018. In January 2017, the defendant was charged and convicted in Michigan state court while perpetrating this scheme; he was sentenced to serve 12 months in prison on the state charge. But within days of being released from prison, the defendant went right back to the same illegal, fraudulent behavior. Becoate and his co-conspirators presented in total more than $1,000,000 in fraudulent checks between June 2016 and July 2018.
“Becoate has spent much of his adult life in prison and has shown time and again that he has no regard for the law,” said U.S. Attorney McSwain. “For years, the defendant victimized multiple businesses and individuals and his actions show he refuses to be deterred from fraud. For these reasons, he will now spend additional significant time in prison – which is exactly where he belongs.”
“Today’s sentencing should serve as a strong deterrent to organized criminal groups considering taking part in similar fraud schemes,” said Special Agent in Charge James Henry of the Secret Service Philadelphia Field Office. “This case highlights our outstanding relationship with the U.S. Postal Inspection Service and the Social Security Administration. We will continue to work with our law enforcement partners to disrupt criminal groups in the state of Pennsylvania who attempt to defraud our community and its citizens.”
The case was investigated by the United States Secret Service, the Social Security Administration – Office of Inspector General, and the United States Postal Investigative Service, and is being prosecuted by Assistant United States Attorney Mary Crawley.
North Carolina Man Sentenced to Three Years’ Imprisonment for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nicolai Varga, age 30, of Leland, North Carolina, who resided in Shenandoah, Pennsylvania, at the time of his arrest, was sentenced on July 18, 2019, by Senior U.S. District Court Judge James M. Munley to three years’ imprisonment and to serve two years on supervised release for his role in a heroin trafficking conspiracy.
According to United States Attorney David J. Freed, Varga previously pleaded guilty to conspiracy to distribute more than 100 grams of heroin. Varga admitted to distributing heroin and transporting other drug traffickers to New York and New Jersey to obtain large quantities of heroin on several occasions. Varga was involved in transporting and distributing between 400 grams and 700 grams of heroin, which is equivalent to approximately 16,000 and 28,000 retail bags of heroin.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Varga was one of 11 people charged in the investigation. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Mt. Vernon Man Sentenced for Williamson County Drug OffenseRead the Press Release
Leonard M. (“Lenny”) Falcone, 51, of Mt. Vernon, Illinois, has been sentenced to 140 months in
prison on a federal methamphetamine violation, U.S. Attorney Steven D. Weinhoeft announced today.
Earlier this year, Falcone pleaded guilty to a one-count indictment charging conspiracy to
distribute methamphetamine.Evidence at the plea and sentencing hearings established that Falcone was involved with numerous
others in the distribution of methamphetamine in Williamson, Franklin, and Jefferson Counties. At
sentencing, the judge found that Falcone was responsible for the distribution of approximately 125
grams of ice (methamphetamine with a purity level of at least 80%). Falcone received an enhanced
sentence because he possessed a dangerous weapon during the offense, which occurred between
September 2017 and May 31, 2018.Falcone’s sentence includes three years of supervised release.
The investigation was conducted by the Southern Illinois Enforcement Group. The Jefferson County
Sheriff’s Office, Mt. Vernon Police Department, Illinois State Police, and
Williamson County States Attorney’s Office assisted in the investigation.
Morgan City resident sentenced for possessing rifleRead the Press Release
LAFAYETTE, La. – Travis Trumaine Singleton, 35, of Morgan City, Louisiana, was sentenced today to 50 months in prison and two years of supervised release by U.S. District Judge Robert R. Summerhays for possessing an assault rifle after being convicted of a felony, U.S. Attorney David C. Joseph announced. Singleton previously pleaded guilty to the federal charge on April 16, 2019.
Morgan City Police executed a search warrant on January 19, 2019 at his mother’s home and found an Eagle Arms, Model Eagle 15, multi-caliber, semi-automatic rifle and 29 rounds of .223-caliber ammunition. He later admitted that he was in possession of the rifle, and that he also took a photo of the firearm on January 17, 2019, which further documented his possession of the weapon.
Singleton is a felon with a previous drug felony in state court. Under federal law, convicted felons are not allowed to possess firearms or ammunition.
The ATF, Chitimacha Tribal Police and Morgan City Police Department conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RIGOBERTO FRANQUIS-HERNANDEZ, age 35, a citizen of Mexico, pleaded guilty and was sentenced to a one-count bill of information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a) on Wednesday, July 17, 2019 in the court of U.S. District Judge Jane Triche Milazzo.
According to the bill of information, RIGOBERTO FRANQUIS-HERNANDEZ reentered the United States on or about May 16, 2019, after having been previously removed therefrom on or about January 25, 2014.
RIGOBERTO FRANQUIS-HERNANDEZ faced a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment. RIGOBERTO FRANQUIS-HERNANDEZ was sentenced to be imprisoned for a total term of time served, pay a $100.00 special assessment fee and was transferred to the United States Immigration and Customs Enforcement for deportation.
The United States Department of Homeland Security, Immigration and Customs Enforcement in investigated this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican Man Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Manuel Salinas-Hernandez, age 47, of Mexico, was indicted on July 17, 2019, by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney David J. Freed, Salinas-Hernandez was previously deported from the United States to Mexico in March 2010. He is alleged to have illegally reentered the United States sometime after March 2010, and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson is prosecuting the case.
Indictments 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.
Salinas-Hernandez faces a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Massachusetts Man Sentenced to Prison After Pleading Guilty to Child Pornography ChargesRead the Press Release
A Massachusetts man was sentenced today to eight years in prison to be followed by 15 years of supervised release for child pornography charges, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Andrew E. Lelling of the District of Massachusetts.
Bruce Singer, 72, of Southampton, Massachusetts, pleaded guilty in the U.S. District Court for the District of Massachusetts in Springfield to five counts of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography.
According to admissions made in connection with his plea agreement, on various occasions between April 30, 2013, and June 25, 2015, Singer sent and received child pornography by text and email. Singer engaged in the exchange of child pornography with two other people, including James Smith, a man who was convicted in 2017 in District Court in Springfield, Massachusetts, for distributing, transporting, receiving and possessing child pornography. At the time police searched his home in 2015, Singer possessed hundreds of images of child pornography on various electronic devices, including images of several known child victims.
This case was investigated by the FBI, Northampton Police Department, the Easthampton Police Department and the Massachusetts State Police. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Alex J. Grant of the District of Massachusetts prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, 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.
Mashpee Couple Indicted for Straw Purchase of Glock FirearmsRead the Press Release
BOSTON – A Mashpee couple was indicted yesterday in federal court in Boston in connection with making false statements in order to purchase two firearms which can only be purchased by law enforcement officers.
Justin F. Watson, 33, and Angel Ecker, 23, were each indicted on one count of making false statements during the purchase of firearms. Watson was also charged with one count of making false statements in a record. In April 2019, Watson was charged by criminal complaint and arrested.
According to charging documents, from March 2018 to February 2019, Watson was an Institutional Security Officer/Campus Police Dispatcher with the Cape Cod Community College Police. As such, Watson neither carried a weapon nor had the power to make arrests on campus.
It is alleged that Watson ordered a Glock pistol to be delivered to a firearms dealer on Cape Cod. On Aug. 26, 2018, Watson went to the firearms dealer to pick up the Glock, Model 22, GEN4, .40 caliber pistol. Before receiving the firearm, Watson provided his Cape Cod Community College identification card, which listed him as “Campus Police” and “Faculty/Staff,” to the manager and completed a Public Safety Purchase Form identifying himself as an Institutional Security Officer.
As alleged in court documents, Watson called another firearms dealer and spoke with the store’s operator, who informed him that only law enforcement officers with the power to conduct arrests could purchase Glock Model 26 firearms. Watson said he was a police officer with authority to make arrests.
On Nov. 17, 2018, Watson went to the second firearms dealer with Ecker and spoke with a sales manager. Ecker allegedly told the sales manager that she was Watson’s boss and that Watson had authority to make arrests. Watson identified himself as a police officer to the sales manager and then purchased a Glock, Model 26, GEN4, 9mm pistol for $425. Watson completed a required ATF Form and affirmed that he was the actual buyer of the firearm. The form warned that, “If you are not the actual buyer, the dealer cannot transfer the firearm(s) to you.”
During the sale, Watson provided his Cape Cod Community College identification card and completed a certification letter indicating that he was purchasing the firearm for “on or off duty use” and not “for resale.” Watson also completed another certification form and listed himself as “Campus Police.”
It is further alleged that Watson then transferred the Glock Model 26 to Ecker on Dec. 19, 2018.
During an interview with law enforcement, Watson acknowledged that he used his Cape Cod Community College identification card when he purchased both Glock firearms. He stated he used that ID because he did not think he could purchase the firearms without it. He also acknowledged that if the firearms dealers had understood that he was not a police officer with arrest powers, they would not have sold him the firearms. Watson further stated that he knew that Ecker, a civilian, could not purchase a Glock Model 26 herself and that he purchased the firearm for her.
Straw purchases interfere with firearm regulation and recordkeeping, and federal law makes it a crime to knowingly make false statements to a firearms dealer in connection with the lawfulness of the sale.
The charging statues each provide for a sentence of up to 10 years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. Cape Cod Community College Campus Police, Barnstable Police Department and Mashpee Police Department provided assistance with the investigation. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Marshall County Woman Sentenced for Sexual Exploitation of a ChildRead the Press Release
Marshall County Woman Sentenced for Sexual Exploitation of a Child
BIRMINGHAM – A federal judge on Wednesday sentenced a Marshall County woman for sexually exploitation of a child, announced U.S. Attorney Jay E. Town and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations Assistant Special Agent in Charge James G. Hernandez.
U.S. District Judge Abdul K. Kallon sentenced ANNA MARIE GOMEZ, 31, to 18 years in prison. Gomez plead guilty in April to one-count of sexually exploitation of a child. Gomez persuaded a six-year old girl to engage in sexually explicit conduct to produce images of that conduct and transport them across state lines.
“A long prison sentence is well-deserved for the defendant in this case,” Town said. “Gomez gave no sanctuary to this young victim and now has been given bed space in a federal prison with no sanctuary of parole.”
“HSI is committed to working with our law enforcement partners to protect the members of our population that are the most vulnerable,” Hernandez said. “I hope that the sentence in this case allows the victim time to heal.”
U.S. Immigration and Custom Enforcement’s Homeland Security Investigations investigated the cases, which the Assistant United States Attorney Robert Becher, Sr. prosecuted.
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Man Charged with Mail Theft for Stealing Dozens of Letters Containing $200,000 in Checks from Residence in LantanaRead the Press Release
A grand jury in West Palm Beach today returned an indictment charging a man with mail theft in Lantana, Florida.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Sean Scheller, Chief of Police for the Town of Lantana, Florida, and Lesley Allison, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Marchello Wilbon, 34, of West Palm Beach, was charged in a one-count indictment with mail theft, in violation of Title 18, United States Code, Section 1708. (Case No. 19-80119-CR-Ruiz). The defendant faces up to 5 years imprisonment, and up to $250,000 in fines on the charge if convicted.
According to court documents, including the indictment and criminal complaint, on July 15, 2019, at approximately 8:30 a.m., a Lantana resident who lives on S.E. Atlantic Drive placed multiple letters containing approximately thirty-nine checks with face value of approximately $200,000 in the mailbox located outside the resident’s home for pick up by the U.S. Postal Service. Wilson is charged with stealing the mail, containing the checks, from the resident’s mailbox.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Lantana Police Department and the USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
An indictment and criminal complaint contain accusations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Media AdvisoryRead the Press Release
WHEN: Monday, July 22, 2019 at 10:00 AM
WHERE: Cumberland County Sheriff’s Office
4710 Corporation Drive
Fayetteville, NC
Re: Operation “Southern Lights” Press Conference
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the indictment and arrests of multiple defendants in an ongoing investigation into a multi-state organization on the east coast engaged in cigarette trafficking and money laundering. The organization was based in Cumberland County, North Carolina. The following agencies took part in Operation Southern Lights: Homeland Security Investigations, Cumberland County Sheriff’s Office, U.S. Marshals Service, Robeson County Sheriff’s Office, and the Johnston County Sheriff’s Office.
In addition to United States Attorney Robert J. Higdon, Jr., it is anticipated members of Homeland Security Investigations, Cumberland County Sheriff’s Office, and the U.S. Marshal’s Service to be present at this event.
Credentialed members of the media are invited to attend. For additional information please e-mail Don Connelly at [email protected]. Please RSVP your intentions to attend the event.
Local Pharmacy Owner Indicted for Multimillion-Dollar Health Care Fraud Conspiracy and Money Laundering ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Andrew E. Fisher, 33, of Gulf Breeze, Florida, was arraigned yesterday in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with conspiracy to commit health care fraud and wire fraud and conspiracy to commit money laundering. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The indictment alleges that between October 2014 and December 2015, Fisher, the president and part-owner of Physician Specialty Pharmacy, conspired with others to defraud TRICARE and other insurance companies through more than $4.8 million in fraudulent claims for prescriptions for compounded pain cream, scar cream, and wellness capsules. According to the indictment, Fisher agreed to fill prescriptions at his pharmacy knowing they were not based on legitimate doctor-patient relationships. In exchange, Fisher allegedly paid commissions to the marketing representatives who recruited individuals to receive the compounded drug prescriptions. Fisher, who is not a licensed pharmacist, also allegedly directed his employees to use ingredient formulations for the drugs that would maximize the amount his pharmacy could bill to TRICARE and other companies, without regard to what was medically necessary.
Five co-conspirators named in the indictment have previously pleaded guilty in two related cases. Bradley D. Pounds was sentenced to 21 months in prison, and Marie Ann Smith and Heather E. Pounds were sentenced to probation. Michael Scott Burton and Brad T. Hodgson are awaiting sentencing.
The maximum penalty for conspiracy to commit health care fraud and wire fraud is 20 years imprisonment, and the maximum penalty for conspiracy to commit money laundering is 10 years imprisonment. Fisher’s trial is scheduled for September 3, 2019, at 9:00 a.m. at the United States Courthouse in Pensacola.
Assistant United States Attorney Alicia H. Forbes is prosecuting the case following an investigation by the Federal Bureau of Investigation, Defense Criminal Investigative Service, Florida Department of Law Enforcement, Florida Department of Financial Services-Division of Insurance Fraud, Florida Department of Health, Naval Criminal Investigative Service, and Army Criminal Investigative Command.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of
federal criminal law and is not evidence of guilt. All defendants are presumed innocent and
entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a
reasonable doubt at trial.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.Little League Coach Sentenced for Interstate Travel to Engage in Sex with a MinorRead the Press Release
PROVIDENCE – A Plainfield, Conn., little league coach arrested by Rhode Island State Police in January 2019 at a Warwick, R.I., hotel where he arranged to meet with a 14-year-old boy to engage in illicit sexual activity was sentenced today to 60 months in federal prison.
At the time of his arrest, Christopher L. Merchant, 34, of Woodstock, Conn., was also found to be in possession of images of child pornography that he stored on his cell phone.
In pleading guilty in U.S. District Court in Providence on March 20, 2019, to travel in interstate commerce with intent to engage in illicit sexual conduct and transporting child pornography, Merchant admitted that on numerous occasions, beginning in early January 2019, he engaged in a series of online sexually graphic exchanges with an individual he believed to be a 14-year-old boy. Merchant admitted that he arranged to meet with the boy at a Warwick, R.I., hotel to engage in illicit sexual activity. The defendant also admitted to sending obscene photographs to the person with whom he was communicating.
Merchant was actually communicating with a member of law enforcement assigned to the ICAC Task Force, who was conducting an investigation into online child exploitation via a dating and social networking application for smart phones.
At sentencing today, U.S. District Court Chief Judge William E. Smith ordered Merchant to serve a term of incarceration of 60 months to be followed by 15 years supervised release, and to pay a mandatory assessment of $5,000 as provided for in the Justice for Victims Trafficking Act, announced United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams with the assistance of Assistant U.S. Attorney Lee H. Vilker.
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Litchfield Man to Remain in Custody; Charged with Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Ill. – A Litchfield, Ill., man who has volunteered at local community and church youth programs, Cory C. Robinson, 24, has been ordered to remain in the custody of the U.S. Marshals Service on charges of child sexual exploitation.
During today’s detention hearing, U.S. Magistrate Judge Tom Schanzle-Haskins found that Robinson presents a danger to the community if released from law enforcement custody. In court documents filed in support of Robinson’s detention, the government noted Robinson’s activities have included volunteering at a local church youth program, trips to Six Flags, Colorado, and camping with minors, and online conversations with minors using multiple social media platforms.
Robinson was arrested on July 15, following indictment by a grand jury on charges of production of child pornography and attempted enticement of a minor. The indictment alleges that Robinson produced child pornography of a minor and attempted to entice a minor to engage in sexual conduct in August and September 2017. The grand jury returned the two-count indictment on July 9; however it had remained sealed pending Robinson’s arrest and court appearance.
If convicted of the offense of production of child pornography, Robinson faces a statutory prison sentence of 15 to 30 years; the statutory penalty for attempted enticement of a minor is 10 years to life in prison.
The case is being prosecuted by Assistant U.S. Attorney Crystal C. Correa. The charges are the result of an ongoing investigation by the FBI and Illinois State Police.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.
Lexington Man Sentenced to 115 Months for Possession of a Firearm by a Convicted FelonRead the Press Release
LEXINGTON, Ky. — D’Vonta Middlebrooks, 24, of Lexington, was sentenced today, to 115 months in federal prison, by United States District Judge Danny C. Reeves, for possession of a firearm by a convicted felon.
In August 2018, officers with the Lexington Police Department, while assisting State Probation and Parole officers, located Middlebrooks in a Lexington residence. During the search of the residence, officers located a 9 mm handgun. Middlebrooks admitted to the possession of the firearm and was arrested. At the time of his arrest, Middlebrooks was on bond for other charges.
Under federal law, Middlebrooks 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; Stuart Lowrey, Special Agent in Charge of the ATF Louisville Field Division; and Lawrence Weathers, Chief of the Lexington Police Department, jointly made the announcement.
The ATF and the Lexington Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
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 PSN program was reinvigorated 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.
Leader of Violent Drug Trafficking Group in North Philadelphia Sentenced to 18 Years in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Damon Edwards, 33, of Philadelphia, Pennsylvania, was sentenced today to 18 years in prison by the Honorable Judge Paul S. Diamond.
Edwards was a leader of a violent drug trafficking group that had operated out of the Norman Blumberg Apartment Complex, a public housing facility in Philadelphia. Edwards pleaded guilty to conspiracy to distribute 280 grams or more of crack cocaine and distribution of crack cocaine within 1,000 feet of public housing (a drug-free zone).
Edwards and others controlled drug sales in various areas of the public housing facility from 2012 to 2014. These leaders obtained bulk crack and cocaine; cooked and packaged crack cocaine into bundles; hired, fired, and supervised shift sellers and lookouts; levied taxes on members and customers; and provided protection from other drug trafficking groups. The shift sellers were the daily workers employed by the leaders to sell crack cocaine in the locations controlled by the groups, while the lookouts assisted other members of the groups by alerting them to the presence of law enforcement and directing customers to the shift sellers.
“This violent drug trafficking group, led by Edwards, sold crack cocaine 24 hours a day, 7 days a week, in and around the Norman Blumberg Apartment Complex in North Philadelphia,” said U.S. Attorney McSwain. “This group used and carried firearms, robbed rival drug dealers, and used intimidation, threats, and violence to further its drug trade. Philadelphia residents can rest assured that my Office will continue to aggressively investigate and prosecute cases like this to keep citizens safe and to dismantle the crack cocaine trade.”
“The investigation, arrest, and successful prosecution of Damon Edwards are evidence of the merits of consistent inter-agency collaborations,” said Philadelphia Police Commissioner Richard J. Ross, Jr. “We believe strongly in the value of these multi-tiered collaborative efforts. Mr. Edwards is a member of a violent drug trafficking organization. With his conviction and attendant sentencing, a prolific narcotics offender will be removed from the communities in which he distributed illegal and dangerous substances. We anticipate that arrests, convictions, and sentences such as this, will continue to have an appreciable impact on the safety and quality of life of our city's residents and visitors.”
This case was investigated by the United States Attorney’s Office, Federal Bureau of Investigation, and Drug Enforcement Administration in collaboration with the Philadelphia Police Department and Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorneys Jerome Maiatico and Yvonne Osirim.
Leader of Baton Rouge-based “FreeBandz” Drug Trafficking Organization Pleads GuiltyRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced that SHANARD ZELRON BANKS, a.k.a. “Nardie,” age 30, pled guilty before Judge Brian A. Jackson to one count of conspiracy to distribute and possess with the intent to distribute controlled substances, one count of possession with intent to distribute 500 grams or more of methamphetamine, one count of possession of firearms in furtherance of a drug-trafficking crime, thirteen counts of unlawful use of a communication facility, and one count of engaging in monetary transactions in property derived from specified unlawful activity. As a result of his guilty plea, BANKS faces a maximum term of imprisonment of life, significant fines, and forfeiture of the property involved or used in, or derived from, his illegal activity.
BANKS was charged along with twenty other individuals in connection with an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking organization – FreeBandz – based and operating in Baton Rouge, Louisiana.
During the guilty plea hearing, BANKS admitted that he controlled the organization’s illegal pill-pressing operation whereby BANKS and his co-conspirators used pill press machines, punches, dies, and pill pressing chemicals to illegally manufacture tens of thousands of counterfeit controlled substance pills. The counterfeit pills were tainted with undisclosed amounts of heroin, methamphetamine, fentanyl analogues, clonazolam, and other controlled substances that BANKS’ co-conspirator obtained from sources located in Houston, Texas, and Los Angeles, California. These pills were then imprinted with various imprints, including several for controlled substance pharmaceuticals. Thereafter, BANKS and his co-conspirators distributed the counterfeit pills to others for further distribution in Baton Rouge, Mississippi, the New Orleans metropolitan area, and elsewhere. The drug trafficking operation formed in or before 2016 and continued until it was disrupted by law enforcement intervention in 2018.
During their investigation, law enforcement agents recovered a .380 caliber Taurus revolver, a .556 caliber Smith & Wesson semi-automatic rifle, and five semi-automatic pistols of varying calibers from a number of residences and commercial premises that were used to store drugs and drug proceeds, and to conduct drug transactions. These firearms were possessed by BANKS and a co-conspirator with the purpose of advancing BANKS’ drug trafficking operation. As a part of his plea agreement, BANKS agreed to forfeit to the United States the firearms, $20,000, and a 2011 Porshe Panamera that he purchased using drug trafficking proceeds.
U.S. Attorney Fremin stated, “This conviction holds accountable one of the key leaders of a drug trafficking organization responsible for trafficking large amounts of counterfeit pills laced with heroin and other illegal drugs throughout our district. Our community deserves peace, security, and freedom from the tyranny of armed drug traffickers. This conviction has significantly advanced that effort. The combined federal, state, and local efforts that culminated in this conviction once again reflect our unified front against crime in this district. I appreciate the tremendous dedication and hard work by the agents and prosecutors who worked tirelessly on this important matter.”
Michael Sader, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baton Rouge District Office stated, “This guilty plea is the result of a two year DEA Baton Rouge Task Force investigation of a violent drug trafficking organization responsible for supplying large amounts of narcotics throughout Baton Rouge. The investigation was successful due to the combined efforts of federal, state, and local law enforcement agencies. The DEA will continue to conduct these investigations in an effort to stem the flow of illegal narcotics onto the streets of our community.”
This investigation is another effort by the OCDETF Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations, and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This OCDETF operation is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana; the Baton Rouge District Office of the Drug Enforcement Administration; and the Baton Rouge Field Office of the Bureau of Alcohol, Tobacco, Firearms, & Explosives. This matter is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter, who also serves as a deputy criminal chief, and Demetrius D. Sumner.
Keshena Man, Shawano Woman Indicted for Obstruction of Justice and Firearm Offense on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on July 16, 2019, a federal grand jury returned a three-count indictment against a man and woman allegedly involved in a firearms offense on the Menominee Indian Reservation. The indictment charged Aaron C. Smith (age: 27), formerly of Keshena, which is located on the Menominee Indian Reservation, and Keanna R. King (age: 26), of Shawano.
Count One of the indictment charged Smith with Prohibited Possession of a Firearm in violation of 18 U.S.C. § 922(g). Smith faces a maximum of ten years’ imprisonment, up to a $250,000 fine, and up to three years of supervised release if convicted of this offense. The indictment also charged Smith with Obstruction of Justice in violation of 18 U.S.C. § 1512(b)(1). If convicted of this offense, Smith faces a maximum of 20 years in prison, up to a $250,000 fine, and up to three years of supervised release.
King is charged in Count Three with False Declarations Before a Grand Jury in violation of 18 U.S.C. § 1623(a). If convicted, she faces a maximum sentence of five years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the indictment, on or about April 21, 2019, Smith possessed a .25 caliber handgun despite knowing he was prohibited from possession due to a previous conviction. On or about May 6, 2019, Smith allegedly acted to influence King’s testimony before a federal grand jury. According to the indictment, on or about May 29, 2019, King provided false testimony to a federal grand jury when she denied Smith handed her a firearm he illegally possessed on April 21, 2019.
The Menominee Tribal Police Department, Wisconsin State Crime Laboratory, and Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Keshena Man Indicted for Aggravated Assault on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on July 16, 2019, a federal grand jury returned a one-count indictment against a man allegedly involved in an assault that resulted in a woman sustaining serious bodily injury. The indictment named Brad L. Blackowl (age: 28) of Keshena, which is located in the Menominee Indian Reservation.
The indictment charged Blackowl with Assault Resulting in Serious Bodily Injury in violation of 18 U.S.C. § 113(a)(6). If convicted, Blackowl faces a maximum of ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the indictment, on or about February 17, 2019, the defendant struck a woman with his fist, causing her to sustain nasal injuries requiring surgical reconstruction.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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Justice Department Announces Addendum to Swiss Bank Program Category 2 Non-Prosecution Agreement with Banque Bonhôte & Cie SARead the Press Release
The Department of Justice announced today that it has signed an Addendum to a non-prosecution agreement with Banque Bonhôte & Cie SA, Ltd. (Bonhôte) of Neuchâtel Switzerland. The original non-prosecution agreement was signed on Nov. 3, 2015. At that time, Bonhôte reported that it held and managed 63 U.S. Related Accounts, with assets under management exceeding $88 million, and paid a penalty of $624,000. In reaching today’s agreement, Bonhôte acknowledges it should have disclosed additional U.S.-related accounts to the Department at the time of the signing of the non-prosecution agreement.
The Swiss Bank Program, announced on Aug. 29, 2013, provided a path for Swiss banks to resolve potential criminal liabilities in the United States relating to offshore banking services provided to United States taxpayers. Swiss banks eligible to enter the program were required to advise the Department that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. As participants in the program, they were required to make a complete disclosure of their cross-border activities, provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers had a direct or indirect interest, cooperate in treaty requests for account information, and provide detailed information about the transfer of funds into and out of U.S.-related accounts, including undeclared accounts, that identifies the sending and receiving banks involved in the transactions.
The Department executed non-prosecution agreements with 80 banks between March 2015 and January 2016. The Department imposed a total of more than $1.36 billion in Swiss Bank Program penalties. Pursuant to today’s agreement, Bonhôte will pay an additional sum of $1,200,000 and will provide supplemental information regarding its U.S.-related account population, which now includes eight additional accounts with assets under management of approximately $33 million.
Every bank that signed a non-prosecution agreement in the Swiss Bank Program represented that it had disclosed all known U.S.-related accounts that were open at each bank between Aug. 1, 2008, and Dec. 31, 2014. Each bank also represented that during the term of each non-prosecution agreement it would continue to disclose all material information relating to its U.S.-related accounts. Other than the failure to disclose the additional eight U.S.-related accounts, Bonhôte has otherwise fully cooperated with the Department with respect to the bank’s obligations under the non-prosecution agreement and with the additional U.S.-related accounts.
“The Department of Justice continues to examine the information provided by Swiss banks to the Department and will continue to work closely with our partners at the Internal Revenue Service to ensure that American taxpayers are meeting their reporting and tax obligations with respect to foreign bank accounts,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman, head of the Tax Division. “We expect banks to fully cooperate with the Department and continue to provide information about U.S. offshore accounts.”
Principal Deputy Assistant Attorney General Zuckerman thanked Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis, and Trial Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Jury Convicts Batavia Man of Two Bank RobberiesRead the Press Release
CINCINNATI – A U.S. District Court jury here convicted Bruce Lee Felix, 52, of Batavia of using a gun to rob the Cheviot Savings Bank and an earlier robbery of the Cincinnatus Savings and Loan.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Colerain Township Police Chief Mark C. Denney, Cincinnati Police Chief Eliot K. Isaac, Harrison Police Chief Charles Lindsey and Michael S. Masterson, Director of Enforcement, Ohio Casino Control Commission announced the verdict returned today following a trial that began July 1 before U.S. District Judge Timothy S. Black.
Court documents and trial testimony said that Felix, wearing a mask and brandishing a gun, surprised a maintenance man at the Cheviot Savings Bank, 1194 Stone Drive, Harrison, Ohio at approximately 8 a.m. on June 17, 2015 when the maintenance man was entering the back door of the bank. Felix placed his gun to the maintenance man’s temple and demanded that he open the vault. Once he realized only bank tellers could open the vault, he ordered the victim down on the floor of the break room, zip-tied his hands behind his back and his feet together, removed the victim’s boots and waited for the tellers to arrive. When the tellers arrived, Felix ordered them to open the vault and remove the money. He then fled the bank.
The jury also convicted Felix of robbing the Cincinnatus Savings and Loan, 3664 Springdale Road, on February 4, 2015 when he jumped out of the bushes as two employees were getting ready to enter the bank around 8 a.m. He forced them to open the vault and remove the money before ordering them to lie on the ground and tying their hands behind their back.
Felix was arrested on February 4, 2017 in Batavia.
The jury found Felix guilty of one count of armed bank robbery, punishable by up to 25 years in prison, and one count of use of a firearm during a crime of violence, punishable by a mandatory minimum of 25 years to life due to a prior firearm conviction in 1996, for the Cheviot Savings Bank robbery. His conviction on one count of bank robbery for the Cincinnatus Savings and Loan is punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement and Assistant United States Attorneys Anthony Springer and Ebunoluwa Taiwo, who tried the case on behalf of the United States.
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Jackson Man Sentenced to 13 Years in Prison under Project EJECT for Armed CarjackingRead the Press Release
Jackson, Miss. – Justin Darby, 37, of Jackson, was sentenced today by U.S. District Judge Henry T. Wingate to 156 months in federal prison, followed by 5 years of supervised release, for carjacking and using a firearm to facilitate the carjacking, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi. Darby was also ordered to pay a $1,500.00 fine.
On December 11, 2017, in Hinds County, Justin Darby crashed into the rear of another vehicle at the intersection of Lynch Street and Highway 80, forced the driver of that vehicle out of that car, and fled the scene. Darby was carrying a military style rifle when he carjacked the other vehicle.
This case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It was prosecuted by Assistant United States Attorneys Lynn Murray and Bert Carraway.
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.
Jackson Man Sentenced Under Project EJECT to over Four Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Adrian Charleston, 24, of Jackson, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 50 months in federal prison, followed by three years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kirk Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Charleston was also ordered to pay a $1500 fine.
On June 30, 2018, Jackson Police officers attempted to pull over a vehicle occupied by Charleston and others. The occupants fled from the officers before abandoning the vehicle in an alleyway. While leaving the alleyway, Charleston possessed a firearm and tried to hide the evidence by discarding the firearm in a dumpster. Shortly thereafter, Charleston was apprehended and the firearm was recovered. Charleston was previously convicted of manslaughter in Hinds County in 2013.
On December 12, 2018, Charleston was indicted for being a felon in possession of a firearm. He pled guilty before Judge Jordan on April 5, 2019.
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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Jackson Police Department investigated the case. It was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Iranian Export Company Executive Pleads Guilty to Violating U.S. Sanctions Against IranRead the Press Release
ALBANY, NEW YORK - Mahin Mojtahedzadeh, age 74, and a citizen of Iran, pled guilty today to conspiring to unlawfully export gas turbine parts from the United States to Iran.
The announcement was made by Assistant Attorney General for National Security John C. Demers; United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement, New York Field Office.
Mojtahedzadeh pled guilty to one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations. She admitted that she was the President and Managing Director of ETCO-FZC (“ETCO”), an export company with an office in Dubai in the United Arab Emirates. ETCO is a supplier of spare and replacement turbine parts for power generation companies in the Middle East, including Iran.
Mojtahedzadeh admitted that from 2013 through 2017, she worked with companies in Canada and Germany to violate and evade U.S. sanctions against Iran, by having these companies first acquire more than $3 million dollars’ worth of turbine parts from two distributors in Saratoga County, New York.
When the U.S. parts arrived in Canada and Germany, respectively, these companies and Mojtahedzadeh then arranged for the parts to be re-shipped to ETCO’s customers in Iran. At all times, U.S. law prohibited the export and re-export of U.S.-origin turbine parts to Iran without a license from the U.S. Office of Foreign Assets Control (OFAC), which neither Mojtahedzadeh nor her co-conspirators possessed.
“By supplying Iran with millions of dollars’ worth of illegally exported turbine machinery, the defendant provided equipment that is critically important for Iran’s infrastructure,” said Assistant Attorney General Demers. “This sort of sanctions violation allows the Iranian government to withstand the pressure of U.S. sanctions – pressure that is intended to end Iran’s malign behavior. We will continue to hold to account those who aid Iran in evading the United States’ comprehensive embargo.”
United States Attorney Grant C. Jaquith stated: “Mahin Mojtahedzadeh worked for years to illegally acquire gas turbine parts for power plants in Iran. Thanks to thorough inter-agency collaboration by the FBI, Homeland Security Investigations, and the Department of Commerce Office of Export Enforcement, the defendant and her co-conspirators are being held accountable for circumventing economic sanctions that protect the national security of the United States.”
FBI Special Agent in Charge James N. Hendricks stated: “The proliferation of sensitive U.S. technologies to Iran remains a clear threat to our national security. The FBI, along with our interagency partners, will continue to identify, investigate, and eliminate proliferation efforts aimed at circumventing our export control laws and economic sanctions to illegally obtain sensitive technologies.”
HSI Special Agent in Charge Kevin Kelly stated: “HSI's export enforcement initiatives safeguard national security and protect our interests across the world. The defendant’s admission of willful attempts to thwart these efforts is inexcusable and her guilty plea is an example of the significant repercussions for such actions.”
Special Agent in Charge Jonathan Carson, of the U.S. Department of Commerce, Office of Export Enforcement, stated: “We will fully and aggressively enforce our nation’s restrictions on exports to Iran. Controls on exports to Iran help apply maximum pressure on Iran to end its promotion of instability and terrorism worldwide. The Office of Export Enforcement will continue to leverage our unique authorities to pursue violators wherever they are, worldwide. We will continue to work with our law enforcement partners to achieve this goal.”
Mojtahedzadeh faces up to 20 years in prison, as well as a fine of up to $1 million, when she is sentenced on November 12, 2019 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.
Two of Mojtahedzadeh’s co-conspirators have previously pled guilty.
Olaf Tepper, age 52, and a citizen of Germany, pled guilty to conspiring to violate IEEPA. On August 3, 2018, Judge D’Agostino sentenced him to 24 months in prison, and to pay a $5,000 fine. Tepper was the founder and Managing Director of Energy Republic GmbH (“Energy Republic”), based in Cologne, Germany, which re-exported U.S.-origin turbine parts to Iran, including as part of a conspiracy with Mojtahedzadeh.
Mojtaba Biria, age 68, and a citizen of Germany, also pled guilty to conspiring to violate IEEPA, and is scheduled to be sentenced on August 14, 2019. Biria was Energy Republic’s Technical Managing Director.
These cases are the result of a joint investigation by the FBI, HSI and the Department of Commerce Office of Export Enforcement, and are being prosecuted by Assistant U.S. Attorneys Rick Belliss and Michael Barnett, with assistance from Trial Attorney Scott A. Claffee of the Department of Justice’s National Security Division, Counterintelligence & Export Control Section.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 16 was:
Seth James Todd, 25, of Laurel, on charges of conspiracy to possess with intent to distribute methamphetamine and distribution of meth. If convicted of the most serious crime, Todd faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Todd was detained pending further proceedings. The case was investigated by the FBI task force and Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-89.
Appearing on July 18 were:
Alejandro Herrera-Garcia, 34, of Watsonville, CA, and Mariano Herrera-Garcia, 45, of Royal Oaks, CA, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, the defendants faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Both defendants were released pending further proceedings. The case was investigated by the FBI West Task Force. Pacer case reference. 16-119.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch and pleading not guilty on July 16 was:
Jose Daniel Ramirez, also known as Jose Danny Ramirez, 56, of Missoula, on charges of felon in possession of a firearm and possession of a firearm by a drug user. If convicted of the most serious crime, Ramirez faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Ramirez was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service and Montana Probation and Parole. Pacer case reference. 19-26.
Scott Michael Todd, 36, of Missoula, on charges of felon in possession of a firearm and possession of a firearm by a drug user. If convicted of the most serious crime, Todd faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Todd was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missoula Police Department and Montana Probation and Parole. Pacer case reference. 19-25.
Gregory Scott Tolley, 58, of Superior, on charges of prohibited person in possession of firearm and ammunition. If convicted of the most serious crime, Tolley faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Tolley was detained pending further proceedings. The case was investigated by the FBI, Montana Violent Crime Task Force, Mineral County Sheriff’s Office, U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula Police Department. Pacer case reference. 19-27.
Appearing for an initial appearance on a criminal complaint on July 17 was:
Tony Gregory Amador Ortiz, hometown unknown, on charges of possession with intent to distribute meth. If convicted of the most serious crime, Ortiz faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Ortiz was detained pending further proceedings. The case in being investigated by the Missoula High Intensity Drug Trafficking Area Task Force and the Drug Enforcement Administration. Pacer case reference. 19-49.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Arrested for Production of Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – United States Magistrate Judge Marcos E. López authorized a criminal complaint against 33 year-old Marcos A. Rivera-Ramos, charging him with production of child pornography, transfer of obscene material to a minor, coercion and enticement, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Federal Bureau of Investigation conducted the investigation that led to the arrest.
According to the criminal complaint, on February 2019, the parents of a female minor reported to the FBI that their 15 year-old daughter had received at least one image of an adult male’s penis on her cell phone through the Snapchat application. The female minor told her parents that Marcos A. Rivera-Ramos, an adult who they knew through the church they attend to, and where the defendant serves as an usher, had sent the picture of his penis to her.
According to the investigation, the defendant and the minor were communicating for over one year through Snapchat and WhatsApp. The defendant asked the minor to send him sexually explicit photos and videos and he sent her pictures of his penis.
“Individuals who would take advantage of modern technology to entice and exploit minors deserve special investigative and prosecutorial attention,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Child sexual exploitation is an alarming problem in our society. We are committed to work closely with our law enforcement partners to identify and prosecute these predators to the full extent of the law.”
“Protecting our children from these terrifying and dangerous threats is among the most important work that the FBI does, and we will continue to make every effort to catch anyone involved in this type of conduct,” stated Douglas A. Leff, Special Agent in Charge of the FBI in Puerto Rico.
FBI encourages the public to call (787) 754-6000 to report any information that may lead to the identification and rescue of additional victims regarding this case.
Assistant U.S. Attorney Ginette Milanes is prosecuting the case. If convicted defendant faces a mandatory minimum term of 15 years’ incarceration up to a maximum term of 30 years. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
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Identical Twins Plead Guilty to Child Multiple Sex Exploitation and Child Pornography OffensesRead the Press Release
LAS VEGAS, Nev. – United States Attorney Nicholas A. Trutanich for the District of Nevada announced that Justin and Joshua Fisher, identical twin brothers, pleaded guilty today to Sexually Exploiting Children, Conspiring to Sexually Exploit Children, Coercing and Enticing Minors, and Distributing, Receiving, and Possessing Child Pornography. Justin Fisher pleaded guilty to an additional charge of Conspiracy to Tamper with a Victim.
Justin Fisher, 34, admitted to sexually exploiting two minor victims from 2015 to late 2016. Justin Fisher messaged with a 14-year-old girl, identified in the Indictment as Victim 1, over an application called KIK and sent the underage girl cell phone text messages about sexual topics. Justin Fisher lied to Victim 1 about his age and convinced Victim 1 that they were in a legitimate romantic relationship. Justin Fisher directed Victim 1 to take nude photos of herself to send to him. In August 2016, Justin Fisher traveled to see Victim 1, had sex with her, and produced pornographic images of their sexual encounters. Later, Justin Fisher conspired to tamper with Victim 1, attempting to stop her from cooperating with law enforcement. Justin Fisher also admitted to traveling to see another underage girl, identified in the Indictment as Victim 2. He admitted to having sex with the 15-year-old girl, and producing pornographic bondage photos of her. Justin Fisher shared the sexually explicit images of Victim 1 and 2 with his brother, Joshua Fisher, and others over Skype.
Joshua Fisher, 34, pleaded guilty to sexually exploiting a 14-year-old girl, identified as Victim 3. The abuse began from the time Victim 3 was 11 years old. Joshua Fisher admitted that he messaged and live chatted with Victim 3 and instructed her to take nude photos of herself to send to him. Additionally, Joshua Fisher instructed Victim 3 on how to pose during the live chats so he could take screenshots of her nude and engaging in sexually explicit conduct. Joshua Fisher shared these images of Victim 3 with his brother, Justin Fisher. When law enforcement arrested Justin Fisher, Joshua Fisher directed Victim 3 to destroy evidence implicating him, and cancelled a trip to visit and have sex with Victim 3.
While Justin and Joshua Fisher were in custody on these charges, they conspired with others to destroy further evidence of their child sexual exploitation crimes. However, a concerned citizen’s phone call to the FBI allowed law enforcement to recover the evidence before the Fishers were able to destroy it.
United States District Judge Andrew P. Gordon scheduled a sentencing hearing for October 16, 2019. The maximum penalty is life in prison. The Fishers have agreed to pay full restitution to the victims of their crimes.
The case was investigated by the Internet Crimes Against Children/Child Exploitation Task Force, the Las Vegas Metropolitan Police Department, and the FBI. Assistant United States Attorneys Elham Roohani and Christopher Burton are prosecuting the case.
If you have information regarding Justin or Joshua Fisher, please contact the nearest FBI field office or local law enforcement. To remain anonymous, call Crime Stoppers at (702) 385-5555 or visit www.crimestoppersofnv.com, or contact the National Center for Missing & Exploited Children Cyber Tipline at www.cybertipline.org.
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Holland-Area Pair Sentenced in Connection with Theft of Firearms from Graafschap Hardware StoreRead the Press Release
Matteo Marroquin and Lacy Zimmerman Each Sentenced to Ten Years for Stealing 22 Firearms from Federal Firearms Licensee
GRAND RAPIDS, MICHIGAN —On the evening of December 7 or early morning hours of December 8, 2019, two individuals, Matteo Adan Marroquin and Lacy Lynn Zimmerman, stole 22 firearms from Graafschap Hardware Store in Allegan County. Both pled guilty in federal court to the theft of firearms from a federal firearms licensee. Law enforcement officers believe that all of the firearms stolen from Graafschap Hardware have been recovered.
On July 18, 2019, Judge Paul Maloney sentenced Marroquin to ten years in prison. Zimmerman, was also sentenced to ten years in prison on May 24, 2019. They were each also ordered to pay $9,013 in restitution. A third individual, Andrew Leenheer, who purchased two of those firearms after the burglary, was convicted of possession of a stolen firearm and sentenced to 44 months in prison on July 19, 2019.
"The theft of firearms from a federal firearms licensee is a top priority for ATF," said ATF Special Agent in Charge James Deir. "Too often these stolen guns are used to commit violent crimes. ATF remains committed to working with our law enforcement partners to ensure the safety of our communities."
"The guns stolen from Graafschap Hardware were recovered through extraordinary police-work by WEMET, the Allegan County Sheriff’s Office, and ATF," said Andrew Birge, U.S. Attorney. "Investigating and prosecuting thefts from gun stores and recovering the stolen weapons are priorities because everyone in law enforcement recognizes the danger. Stolen firearms are most valuable to those who are prohibited from lawfully possessing them or who have bad intentions in mind or both."
The case was investigated by the Allegan County Sheriff’s Office, Michigan State Police, WEMET, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Sally J. Berens prosecuted the case.
END
Gun and Meth Charges Lead to 18-Year Sentence for Jersey County ManRead the Press Release
Erickson Deck, 45, of Jerseyville, Illinois, has been sentenced to 18 years in federal prison for
possession with intent to distribute methamphetamine and federal firearm violations. Earlier this
year, Deck pleaded guilty to a three-count indictment charging possession with intent to distribute
methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and felon in
possession of a firearm by a convicted felon.Evidence at the plea and sentencing hearings established that, on January 28, 2018, Deck was found
passed out in his car and blocking traffic in Alton, Illinois. Inside the car, investigators found
methamphetamine for distribution, a digital scale, and a .357 revolver. At the time, Deck was
prohibited from possessing a gun because of multiple prior felony convictions, including a 2009
domestic battery conviction in Jersey County.Deck’s sentence includes three years of supervised release and forfeiture of the gun.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the
Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to
be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together
to identify the most pressing violent crime problems in the community and develop comprehensive
solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most
violent offenders and partners with locally based prevention and reentry programs for lasting
reductions in crime.
The investigation was conducted by the FBI and the Alton Police Department.
Fort Pierre Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Fort Pierre, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Frank Loring Miller, Jr., age 61, was indicted on July 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 18, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in prison and/or a $5,000,000 fine, at least 4 years supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that between February 1, 2019, and July 16, 2019, Miller did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute, and possess with intent to distribute, 50 grams or more of methamphetamine. Further, on June 23, 2019, a traffic stop was conducted wherein 236 grams of methamphetamine was located in the vehicle.
The charge is merely an accusation and Miller is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the South Dakota Highway Patrol. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Miller was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former Payroll Administrator Indicted for Embezzling More Than $200,000 from Non-Profit CompanyRead the Press Release
CHARLOTTE, N.C. - Today, a federal grand jury in Charlotte returned a criminal bill of indictment against Susan Watson, 41, of Gastonia, N.C., charging her with wire fraud, for embezzling at least $200,000 from her employer, the North and South Carolina Division of a Non-Profit Company, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, beginning in July 2015, Watson was employed as a payroll administrator for the North and South Carolina Division of a Non-Profit Company (Company A), at their office in Charlotte, N.C. Company A’s employees received their paychecks through pre-paid debit cards, direct deposit, and by check. As payroll administrator, Watson knew which employees were paid by pre-paid debit card and which were paid by direct deposit and check. Watson was also responsible for providing payroll information to Company A’s payroll processors, who used the information to load the employees’ pre-paid debit cards by drawing funds from Company A’s bank account.
The indictment alleges that from 2015 through November 2018, Watson exploited her position as payroll administrator to embezzle money from her employer, by using the personal identification information of Company A’s current and former employees to create fraudulent pre-paid debit cards in their names. Once the pre-paid debit cards were created, Watson loaded funds onto the pre-paid debit cards by logging in and accessing the payroll processors’ dedicated web portals to transmit and submit payroll information. After activating the pre-paid debit cards, the indictment alleges that Watson used the pre-paid debit cards for her personal benefit, including to make ATM cash withdrawals. In total, Watson embezzled at least $200,000 from the non-profit.
A federal summons for Watson has been issued. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine.
All charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray thanked the United States Secret Service for their investigation of this case, and the Charlotte Mecklenburg Police Department for
their invaluable assistance.Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Former Government Contractor Sentenced to Nine Years in Federal Prison for Willful Retention of National Defense InformationRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Harold Thomas Martin, III, age 54, of Glen Burnie, Maryland, to nine years in federal prison, followed by three years of supervised release, for willful retention of national defense information.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General for National Security John C. Demers; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“For nearly 20 years, Harold Martin betrayed the trust placed in him by stealing and retaining a vast quantity of highly classified national defense information entrusted to him,” stated U.S. Attorney Robert K. Hur. “This sentence, which is one of the longest ever imposed in this type of case, should serve as a warning that we will find and prosecute government employees and contractors who flagrantly violate their duty to protect classified materials.”
“Harold Martin was entrusted with some of the nation’s most sensitive information,” said Assistant Attorney General Demers. “Instead of respecting the trust given to him by the American people, Martin violated that trust and put our nation’s security at risk. This sentence will hold Mr. Martin accountable for his dangerous and unlawful actions.”
“Harold Martin took an oath to preserve and protect the nation's secrets, and violated that oath repeatedly over many years, causing damage with his unlawful mishandling of classified information,” said Special Agent in Charge Jennifer C. Boone, FBI Baltimore Field Office. “Martin’s actions harmed Intelligence Community sources and methods. The vitality and integrity of the Intelligence Community requires the strictest adherence to the law for handling classified information. The FBI will be tireless in investigating cases like the Martin case.”
According to his plea agreement, from December 1993 through August 27, 2016, Martin was employed by at least seven different private companies and assigned as a contractor to work at a number of government agencies. Martin was required to receive and maintain a security clearance in order to work at each of the government agencies to which he was assigned. Martin held security clearances up to Top Secret and Sensitive Compartmented Information (SCI) at various times. A Top Secret classification means that unauthorized disclosure reasonably could be expected to cause exceptionally grave damage to the national security of the United States. An SCI designation compartmentalizes extremely sensitive information. Because of his work responsibilities and security clearance, Martin was able to access government computer systems, programs, and information in secure locations, including classified national defense information. Over his many years of holding a security clearance, Martin received training regarding classified information and his duty to protect classified materials from unauthorized disclosure.
Martin admitted that beginning in the late 1990s and continuing through August 31, 2016, he stole and retained U.S. government property from secure locations and computer systems, including documents in both hard copy and digital form relating to the national defense, that bore markings indicating that they were the property of the United States and contained highly classified information of the United States, including Top Secret/SCI information.
As detailed in his plea agreement, Martin retained the stolen documents and other classified information at his residence and in his vehicle. Martin knew that the hard copy and digital documents stolen from his workplace contained classified information that related to the national defense and that he was never authorized to retain these documents at his residence or in his vehicle. Martin admitted that he also knew that the unauthorized removal of these materials risked their disclosure, which would be damaging to the national security of the United States and highly useful to its adversaries.
In court documents and at today’s sentencing hearing, the government noted that crimes such as Martin’s not only create a risk of unauthorized disclosure of, or access to, highly classified information, but often require the government to treat the stolen material as compromised, resulting in the government having to take remedial actions including changing or abandoning national security programs. In addition, Martin’s criminal conduct caused the government to expend substantial investigative and analytical resources. The diversion of those resources resulted in significant costs.
United States Attorney Robert K. Hur and Assistant Attorney General for National Security John C. Demers commended the FBI for its work in the investigation and thanked the National Security Agency for its assistance. Mr. Hur and Mr. Demers thanked Assistant U.S. Attorneys Zachary A. Myers and Harvey E. Eisenberg, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, who prosecuted the case.
# # #
Former Government Contractor Sentenced to Nine Years in Federal Prison for Willful Retention of National Defense InformationRead the Press Release
U.S. District Judge Richard D. Bennett today sentenced Harold Thomas Martin, III, age 54, of Glen Burnie, Maryland, to nine years in federal prison, followed by three years of supervised release, for willful retention of national defense information.
The sentence was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Maryland Robert K. Hur, Assistant Director John Brown of the FBI’s Counterintelligence Division and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office.
“Harold Martin was entrusted with some of the nation’s most sensitive information,” said Assistant Attorney General Demers. “Instead of respecting the trust given to him by the American people, Martin violated that trust and put our nation’s security at risk. This sentence will hold Mr. Martin accountable for his dangerous and unlawful actions.”
“For nearly 20 years, Harold Martin betrayed the trust placed in him by stealing and retaining a vast quantity of highly classified national defense information entrusted to him,” stated U.S. Attorney Robert K. Hur. “This sentence, which is one of the longest ever imposed in this type of case, should serve as a warning that we will find and prosecute government employees and contractors who flagrantly violate their duty to protect classified materials.”
“Whether an individual is a federal contractor or government employee, when given the privilege of holding a security clearance, the American people expect classified information to be protected,” said Assistant Director Brown. “That is essential to protecting our national security. In this case, Harold Martin was a serial offender in retaining national defense information for more than two decades. Today’s sentencing should signal that the FBI takes these violations extremely seriously and will vigorously investigate cases when people improperly handle classified information.”
“Harold Martin took an oath to preserve and protect the nation's secrets, and violated that oath repeatedly over many years, causing damage with his unlawful mishandling of classified information,” said Special Agent in Charge Jennifer C. Boone, FBI Baltimore Field Office. “Martin’s actions harmed Intelligence Community sources and methods. The vitality and integrity of the Intelligence Community requires the strictest adherence to the law for handling classified information. The FBI will be tireless in investigating cases like the Martin case.”
According to his plea agreement, from December 1993 through Aug. 27, 2016, Martin was employed by at least seven different private companies and assigned as a contractor to work at a number of government agencies. Martin was required to receive and maintain a security clearance in order to work at each of the government agencies to which he was assigned. Martin held security clearances up to Top Secret and Sensitive Compartmented Information (SCI) at various times. A Top Secret classification means that unauthorized disclosure reasonably could be expected to cause exceptionally grave damage to the national security of the United States. An SCI designation compartmentalizes extremely sensitive information. Because of his work responsibilities and security clearance, Martin was able to access government computer systems, programs, and information in secure locations, including classified national defense information. Over his many years of holding a security clearance, Martin received training regarding classified information and his duty to protect classified materials from unauthorized disclosure.
Martin admitted that beginning in the late 1990s and continuing through Aug. 31, 2016, he stole and retained U.S. government property from secure locations and computer systems, including documents in both hard copy and digital form relating to the national defense, that bore markings indicating that they were the property of the United States and contained highly classified information of the United States, including Top Secret/SCI information.
As detailed in his plea agreement, Martin retained the stolen documents and other classified information at his residence and in his vehicle. Martin knew that the hard copy and digital documents stolen from his workplace contained classified information that related to the national defense and that he was never authorized to retain these documents at his residence or in his vehicle. Martin admitted that he also knew that the unauthorized removal of these materials risked their disclosure, which would be damaging to the national security of the United States and highly useful to its adversaries.
In court documents and at today’s sentencing hearing, the government noted that crimes such as Martin’s not only create a risk of unauthorized disclosure of, or access to, highly classified information, but often require the government to treat the stolen material as compromised, resulting in the government having to take remedial actions including changing or abandoning national security programs. In addition, Martin’s criminal conduct caused the government to expend substantial investigative and analytical resources. The diversion of those resources resulted in significant costs.
Assistant Attorney General for National Security John C. Demers and United States Attorney Robert K. Hur commended the FBI for its work in the investigation and thanked the National Security Agency for its assistance. Mr. Hur and Mr. Demers thanked Assistant U.S. Attorneys Zachary A. Myers and Harvey E. Eisenberg, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, who prosecuted the case.
Former CEO of Publicly Traded Manufacturer Charged with Fraud for Allegedly Misrepresenting Company’s Financial ConditionRead the Press Release
CHICAGO — The former Chief Executive Officer of a publicly traded engine manufacturer in a northwest suburb of Chicago has been indicted on federal fraud charges for allegedly deceiving investors about the company’s financial performance.
GARY S. WINEMASTER served as CEO and Chairman of the Board of Directors of a Wood Dale-based manufacturing company. He was also the company’s largest shareholder. From 2014 to 2016, Winemaster schemed with the company’s vice president of sales, CRAIG M. DAVIS, its general manager, JAMES F. NEEDHAM, and others to fraudulently inflate – by millions of dollars – the revenue reported by the company to the investing public, according to an indictment returned Thursday in U.S. District Court in Chicago. In doing so, the trio deceived shareholders and other investors about the company’s financial health and performance, the indictment states.
The indictment charges Winemaster, 61, of Mundelein, with one count of securities fraud, ten counts of wire fraud, two counts of making false statements to an auditor, and one count of failing to certify financial reports. Davis, 45, of Batavia, and Needham, 57, of Leavenworth, Kansas, are each charged with one count of securities fraud and ten counts of wire fraud. U.S. Magistrate Judge M. David Weisman scheduled arraignments for July 25, 2019, at 10:00 a.m.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement lawsuit against Winemaster, Davis, and Needham, provided valuable assistance. The government is represented by Assistant U.S. Attorneys Paul Tzur and Heidi Manschreck.
According to the indictment, the defendants schemed to defraud shareholders and other investors in connection with the company’s common stock, which was listed on the Nasdaq Stock Market. The defendants concealed material information about special terms of sales to customers, causing the company’s accounting department to recognize inflated revenue figures for those transactions, the indictment states. Winemaster and Davis also authorized shipments of products to customers who had not agreed to accept delivery, the indictment states. The shipments falsely supported the accounting department’s treatment of the transactions as final sales, thus fraudulently causing the company to book revenue from the deals, the charges allege.
The defendants also arranged additional transactions by the company’s customers that were meant to fraudulently support the company’s accounting for earlier sales, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The maximum sentence for securities fraud is 25 years in prison, while wire fraud and making false statements to an auditor are each punishable by up to 20 years. Failing to certify financial reports is punishable by up to ten years and a fine of up to $1 million. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Bureau of Prisons Employee Sentenced to 37 Months in Prison for Wire FraudRead the Press Release
SAN FRANCISCO - Malik Swinton was sentenced to 37 months in prison for wire fraud in connection with various schemes to defraud the federal government for disability and workers’ compensation benefits, announced United States Attorney David L. Anderson; U.S. Department of Veterans Affairs (VA) Office of Inspector General, Criminal Investigations Division, Special Agent in Charge James Wahleithner; U.S. Department of Justice Office of the Inspector General, Los Angeles Field Division, Special Agent in Charge James K. Cheng; Social Security Administration (SSA) Office of Inspector General Special Agent in Charge Robb Stickley; Office of Personnel Management Office of Inspector General Acting Inspector Norbert Vint; and U.S. Department of Labor (DOL) Office of Inspector General Acting Special Agent in Charge Quentin Heiden. The sentence was handed down today by the Hon. Yvonne Gonzalez Rogers, U.S. District Judge.
Swinton pleaded guilty to the charge on May 9, 2019. According to his plea agreement, Swinton, 40, of Las Vegas, Nev., admitted he engaged in schemes to defraud the VA, the SSA, the DOL, and the Office of Personnel Management. In sum, the court found Swinton caused losses to the United States in excess of $600,000.
According to the plea agreement, Swinton submitted a fraudulent claim for benefits to the Department of Veterans Affairs in July 2012. Swinton admitted that he submitted a form in which he claimed he suffered from post-traumatic stress disorder (PTSD) as a result of an incident that occurred while he was in the U.S. Army. In the form, Swinton claimed that his squad leader pulled out a weapon, shot his platoon sergeant in front of him, and then later threatened to kill or hurt Swinton or his family if Swinton told anyone about the shooting. In his plea agreement, Swinton admitted that the incident never occurred. Swinton acknowledged that as a result of this scheme, from June 2013 through April 2019 he received approximately $222,000.00 in fraudulently obtained disability benefits.
Further, Swinton admitted in his plea agreement that he improperly claimed and received dependency benefits from the VA. Although Swinton divorced his wife in April 2009, he continued to represent to the VA that he was married and he claimed his former wife as a dependent on his disability payment record through November 2018. As a result, Swinton received over $20,000 in improper dependency benefits.
Swinton also defrauded the SSA. Swinton falsely represented to the SSA that the VA determined he was unemployable. Swinton also wrote and submitted to the SSA a fraudulent letter that purported to be from VA doctor. The letter claimed that Swinton was unemployable due to various medical conditions including his alleged PTSD. In reality, the VA doctor did not write nor authorize Swinton to write the letter. As a result of his false statements, Swinton fraudulently convinced the SSA to pay him $98,431.30 in undeserved disability benefits from February 2013 to April 2019.
Finally, Swinton defrauded the DOL by submitting a fraudulent application for workers’ compensation benefits. Swinton admitted that to obtain the benefits, he failed to disclose to the agency that he was receiving VA benefits, testified falsely about the manner in which he supported himself, and wrote and signed letters in other people’s names to support his claim. Further, after he began receiving benefits, Swinton failed to disclose that he was receiving VA and SSA benefits and repeatedly wrote and submitted letters that purported to be from VA doctors to confirm that his alleged injuries prevented him from working.
On December 6, 2018, a federal grand jury indicted Swinton charging him with seven counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). Swinton pleaded guilty to one count of wire fraud and the remaining counts were dismissed at sentencing.
In addition to the prison term, Judge Gonzalez Rogers ordered Swinton to pay $632,368.34 in restitution and to serve 3 years on supervised release following his prison term. Swinton has been in custody since his arrest in December 2018 and will begin serving his prison term immediately.
Special Assistant U.S. Attorney Christopher Vieira is prosecuting the case with the assistance of Kimberly Richardson. The prosecution is a result of an investigation by the Offices of Inspectors General of the Department of Veterans Affairs, the Department of Justice, the Social Security Administration, the Office of Personnel Management, and the Department of Labor.
Federal Inmate Sentenced to 21 Months in Prison for EscapeRead the Press Release
Jackson, Miss. – Roger Stokes, 36, of Walnut Grove, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III, to 21 months in federal prison, followed by three years of supervised release, for escaping from federal custody, announced U.S. Attorney Mike Hurst and U.S. Marshal Mark B. Shepherd of the United States Marshals Service.
Stokes was previously convicted of illegal transportation of an alien and was sentenced by U.S. District Judge Louis Guirola to two years in custody, followed by three years of supervised release. Following a revocation of his supervised release and the imposition of an additional two years in the custody of the Federal Bureau of Prisons, Stokes was transferred to the Bannum Place Residential Reentry Center in Jackson to serve the remainder of his time with an anticipated release date of March 18, 2019. On January 11, 2019, after being confronted by facility personnel with a positive drug test, Stokes escaped from the facility and was caught by law enforcement in Attala County ten days later.
Stokes was indicted on February 6, 2019, for escaping from federal custody. Stokes pleaded guilty on April 5, 2019, before Chief Judge Jordan. In articulating the reasons for his sentence, Chief Judge Jordan cited to Stokes’s extensive criminal history and the need to deter other inmates from trying to escape in the future.
The United States Marshals Service investigated the case. It was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Federal Conviction and Sentence Imposed for Repeat Drug Trafficking OffenderRead the Press Release
On July 17, 2019, Chief Federal District Court Judge Scott W. Skavdahl sentenced LISA MARIE BROWN, 50, of Rio Linda, California to seventy-eight months in federal prison for distribution of methamphetamine. Brown pleaded guilty to one count of distribution of methamphetamine on May 8, 2019. She had previously been convicted of felony unlawful manufacture and possession with intent to deliver controlled substances under State law and was on probation at the time she was arrested on federal charges.
“Methamphetamine continues to be a significant problem in our communities across Wyoming,” said United States Attorney Mark A. Klaassen, “we understand the addiction that drives this problem, but as law enforcement our role is to continue to target those who add fuel to the fire by engaging in distribution of these dangerously addictive and destructive substances.” “I appreciate the joint effort of DEA and the Cheyenne Police Department as they work together to improve investigations and enforcement in this vital area.”
Brown will serve thirty-six months of supervised release after her prison term concludes and was ordered to pay $200.00 in community restitution and a $100.00 special assessment.
This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Cheyenne Police Department, U.S. Drug Enforcement Administration and FBI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Export Company Executive Pleads Guilty to Violating U.S. Sanctions against IranRead the Press Release
Mahin Mojtahedzadeh (Mahin), age 74, a citizen of Iran, pleaded guilty today to conspiring to unlawfully export gas turbine parts from the United States to Iran.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Grant C. Jaquith for the Northern District of New York; Special Agent in Charge James N. Hendricks of the FBI’s Albany Field Office, Special Agent in Charge Kevin Kelly of the Buffalo Field Office of Homeland Security Investigations (HSI) and Special Agent in Charge Jonathan Carson of the New York Field Office of the Office of Export Enforcement, Bureau of Industry and Security (BIS), U.S. Department of Commerce.
Mahin pleaded guilty to one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations. She admitted that she was the President and Managing Director of ETCO-FZC (ETCO), an export company with an office in Dubai in the United Arab Emirates. ETCO is a supplier of spare and replacement turbine parts for power generation companies in the Middle East, including Iran.
Mahin admitted that from 2013 through 2017, she worked with companies in Canada and Germany to violate and evade U.S. sanctions against Iran, by having these companies first acquire more than $3 million dollars’ worth of turbine parts from two distributors in Saratoga County, New York.
When the U.S. parts arrived in Canada and Germany, respectively, these companies and Mahin then arranged for the parts to be re-shipped to ETCO’s customers in Iran. At all times, U.S. law prohibited the export and re-export of U.S.-origin turbine parts to Iran without a license from the U.S. Office of Foreign Assets Control (OFAC), which neither Mahin nor her co-conspirators possessed.
“By supplying Iran with millions of dollars’ worth of illegally exported turbine machinery, the defendant provided equipment that is critically important for Iran’s infrastructure,” said Assistant Attorney General Demers. “This sort of sanctions violation allows the Iranian government to withstand the pressure of U.S. sanctions – pressure that is intended to end Iran’s malign behavior. We will continue to hold to account those who aid Iran in evading the United States’ comprehensive embargo.”
“Mahin Mojtahedzadeh worked for years to illegally acquire gas turbine parts for power plants in Iran,” said U.S. Attorney Jaquith. “She will now be punished for undermining the efficacy of economic sanctions that are intended to protect the national security of the United States.”
“The proliferation of sensitive U.S. technologies to Iran remains a clear threat to our national security,” said Special Agent in Charge Hendricks. “The FBI, along with our interagency partners, will continue to identify, investigate, and eliminate proliferation efforts aimed at circumventing our export control laws and economic sanctions to illegally obtain sensitive technologies”
“HSI's export enforcement initiatives safeguard national security and protect our interests across the world,” said HSI Special Agent in Charge Kevin Kelly. “The defendant’s admission of willful attempts to thwart these efforts is inexcusable and her guilty plea is an example of the significant repercussions for such actions.”
“We will fully and aggressively enforce our nation’s restrictions on exports to Iran. Controls on exports to Iran help apply maximum pressure on Iran to end its promotion of instability and terrorism worldwide,” said Special Agent in Charge Jonathan Carson, of U.S. Department of Commerce, Office of Export Enforcement. “The Office of Export Enforcement will continue to leverage our unique authorities to pursue violators wherever they are, worldwide. We will continue to work with our law enforcement partners to achieve this goal.”
Mahin faces up to 20 years in prison, as well as a fine of up to $1 million, when she is sentenced on Nov. 12, 2019 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.
Two of Mahin’s co-conspirators have previously pleaded guilty.
Olaf Tepper, age 52, and a citizen of Germany, pleaded guilty to conspiring to violate IEEPA. On Aug. 3, 2018, Judge D’Agostino sentenced him to 24 months in prison, and to pay a $5,000 fine. Tepper was the founder and Managing Director of Energy Republic GmbH (Energy Republic), based in Cologne, Germany, which re-exported U.S.-origin turbine parts to Iran, as part of a conspiracy with Mahin.
Mojtaba Biria, age 68, and a citizen of Germany, also pleaded guilty to conspiring to violate IEEPA, and is scheduled to be sentenced on Aug. 14, 2019. Biria was Energy Republic’s Technical Managing Director.
These cases are the result of a joint investigation by FBI, HSI and BIS, and are being prosecuted by Assistant U.S. Attorneys Rick Bellis and Michael Barnett, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence & Export Control Section.
Ex-Air Force member from Kalispell sentenced for sexually exploiting childrenRead the Press Release
MISSOULA—A former U.S. Air Force service member who admitted using the internet to coerce minor boys into sending him sexually explicit images and videos of themselves was sentenced today to 15 years in prison and 10 years of supervised release, U.S. Attorney Kurt Alme said.
Raymond Larry Edward Kennedy, 24, of Kalispell, pleaded guilty in March to sexual exploitation of a child and to receipt of child pornography.
Chief U.S. District Judge Dana L. Christensen presided.
An investigation began in February 2017, the prosecution said in court records, when the U.S. Air Force Office of Special Investigations at Malmstrom Air Force Base in Great Falls contacted an agent with Homeland Security Investigations and member of the Montana Internet Crimes Against Children Task Force seeking help with an online child exploitation case involving Kennedy. The Air Force discharged Kennedy on Feb. 6, 2017.
Investigators found that Kennedy met on Snapchat a minor boy who lived in Montana and ultimately determined that Kennedy had met five other minor boys who all lived in Montana. In Kennedy’s online communications with the boys from about July 2015 through June 2017, he coerced them into sending him images and videos of themselves engaged in sexually explicit conduct. The boys were all younger than 18 and lived in Kalispell, Big Fork and Great Falls.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by Homeland Security Investigations and the Montana Internet Crimes Against Children Task Force.
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Dorchester Man Sentenced for Role in 2016 KidnappingRead the Press Release
BOSTON – A Dorchester man was sentenced today in federal court in Boston for his role in a 2016 kidnapping.
Vinh Quang Huynh, 35, was sentenced by U.S. District Court Judge Leo T. Sorokin to time served (17 months in prison), three years of supervised release and ordered to pay restitution of $6,300. Judge Sorokin also ordered Huynh to forfeit property including cash, jewelry and a car. In December 2018, Huynh pleaded guilty to kidnapping, conspiracy to collect extensions of credit by extortionate means and operating an illegal gambling business.
Co-defendants Quang PT Le and Kim Nguyen previously pleaded guilty to kidnapping, conspiracy to collect extensions of credit by extortionate means, and illegal gambling business. Le was sentenced to six years in prison and three years of supervised release; and Kim Nguyen was sentenced to one year and one day in prison and two years of supervised release. Co-defendant Ban Tran pleaded guilty to misprision of a felony and was sentenced to eight months in prison and one year of supervised release. In a related case, Tam V. Nguyen previously pleaded guilty to conspiracy to collect extensions of credit by extortionate means and illegal gambling business and is scheduled to be sentenced in September 2019.
On Nov. 14, 2016, Le, who was armed with a knife, and Kim Nguyen kidnapped a victim from the front of the victim’s residence and drove the victim to Dorchester, where they were joined by Huynh. Huynh and Le beat the victim in an attempt to collect a gambling debt of $40,000. Huynh, Le and Nguyen then drove the victim home and demanded a payment of $10,000 the next day. Tran was present during the beating and followed the kidnappers in his car in an attempt to hide the kidnapping. The next day, the victim went to law enforcement and, under the direction of law enforcement officers, made a series of controlled, recorded payments to Le and, on two occasions, Huynh. Over the course of eight months, the victim made payments totaling $22,350 to Le. In August 2017, law enforcement arrested the defendants before the last payment was due.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; and Quincy Police Chief Paul Keenan made the announcement today. The Internal Revenue Service’s Criminal Investigation in Boston and Massachusetts Department of Correction assisted with the investigation. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Yancarlos Mejia Gonzales, 31, was sentenced by U.S. District Court Judge William G. Young to 30 months in prison and three years of supervised release. Mejia Gonzales will be subject to deportation proceedings upon completion of his sentence. In April 2019, Mejia Gonzales pleaded guilty to one count of unlawful reentry of a deported alien.
Between 2007 and 2008, Mejia Gonzales was arrested and convicted on three separate drug distribution matters. Following his convictions, Mejia Gonzales was ordered removed, and on Jan. 12, 2011, he was deported to the Dominican Republic. Sometime thereafter, Mejia Gonzales reentered the United States and was arrested in 2013 during the execution of a state search warrant. Mejia Gonzales was subsequently convicted in federal court in Boston of illegally reentering the United States after being deported and was sentenced to 30 months in prison. After completing his sentence, Mejia Gonzales was deported on Aug. 17, 2016. In January 2019, he was encountered by law enforcement in Massachusetts and determined again to be illegally present in the United States.
United States Attorney Andrew E. Lelling; Marcos D. Charles, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Doctor Sentenced to Prison for Health Care FraudRead the Press Release
Earlier today, in federal court in Central Islip, Hal Abrahamson, a podiatrist with offices in Plainview, Long Island, and Rego Park, Queens, was sentenced by United States District Judge Denis R. Hurley to one year and a day in prison for his role in a health care fraud scheme. The Court also ordered Abrahamson to pay restitution of $869,651, a $50,000 fine and forfeit $177,000. On June 26, 2018, Abrahamson pleaded guilty to health care fraud in connection with the operation of his podiatry practice.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special Agent-in-Charge, United States Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG), announced the sentence.
“Greed dictated this doctor’s billing practices,” stated United States Attorney Donoghue. “The defendant stole a million dollars from Medicare and private insurance companies but has been brought to justice.” Mr. Donoghue thanked the FBI and HHS-OIG for their outstanding work on the case.
According to court documents and as established at the plea proceeding, Abrahamson’s health care fraud scheme was ongoing from January 2013 until January 2017. Abrahamson used several fraudulent billing techniques over the years, including: (i) billing for skin grafts and wound packing services never performed, (ii) billing for work purportedly done by another podiatrist whose reimbursement rate was higher, but which was in fact done by Abrahamson, or not at all, and (iii) billing for more expensive procedures than those actually performed. Regarding the fraudulent billing for skin grafts, Abrahamson billed for this procedure 1,092 times over a four year period in which a podiatrist with a comparable practice in Plainview billed only once and another podiatrist in the defendant’s office billed only five times.
Regarding the fraudulent billing for wound packing, Abrahamson billed for this procedure 757 times over a four-year period, and would routinely add this to his false billing under another podiatrist’s name.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
HAL ABRAHAMSON
Age: 57
Melville, New YorkE.D.N.Y. Docket No. 18-CR-314 (DRH)
District Man Pleads Guilty to Armed KidnappingRead the Press Release
WASHINGTON – Ethan Moye-Gordon, 22, of Maryland, pled guilty yesterday with respect to his participation in an armed kidnapping and robbery that began in the District of Columbia and continued into Maryland, announced U.S. Attorney Jessie K. Liu, Charles A. Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Moye-Gordon pled guilty before the Honorable Amy Berman Jackson in the U.S. District Court for the District of Columbia, to one count of kidnapping. He faces a sentence of up to life in prison and is scheduled to be sentenced by Judge Jackson on October 4, 2019.
The government’s evidence established that late in the evening on November 10, 2018, and into the early morning hours of November 11, 2018, Moye-Gordon, along with two other men, abducted the victim at gunpoint near Logan Circle and forced the victim into their vehicle. The victim reported that during the course of the abduction, he was forced into the trunk of the vehicle; he ultimately was able to pull the latch in the trunk and attempted to escape, but was unable to obtain help before he was recaptured by his captors and forced back into the vehicle.
During the abduction, Moye-Gordon and his associates forced the victim at gunpoint to provide his ATM PIN code and made physical withdrawals from numerous ATMs in D.C. and Maryland. Moye-Gordon and his associates also withdrew funds from the victim’s accounts using online banking applications on the victim’s phone.
This case was investigated by the Washington Field Office’s Violent Crime Task Force (VCTF) in partnership with the Arlington County Police, Prince George’s County Police and the Washington Metropolitan Police Department. The VCTF is composed of FBI Agents, along with local and county law enforcement agencies within the National Capital Region, and focuses on investigating the most egregious and violent offenders.
In announcing the plea, U.S. Attorney Liu, Acting Special Agent in Charge Dayoub, and Chief Newsham commended the work of FBI Agents from the Washington Field Office, MPD officers, Prince George’s County police officers, and Arlington County police officers who investigated the armed kidnapping. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Laura Crane, Paralegal Specialist Rommel, and Legal Assistant Peter Gaboton.
Department of Justice Announces the Release of 3,100 Inmates Under First Step Act, Publishes Risk and Needs Assessment SystemRead the Press Release
The Department of Justice today announced three major developments related to the implementation of the First Step Act of 2018 (FSA):
- Over 3,100 federal prison inmates will be released from the Bureau of Prisons’ (BOP) custody as a result of the increase in good conduct time under the Act. In addition, the Act’s retroactive application of the Fair Sentencing Act of 2010 (reducing the disparity between crack cocaine and powder cocaine threshold amounts triggering mandatory minimum sentences) has resulted in 1,691 sentence reductions.
- The prioritization of $75 million in existing resources to fully fund the FSA implementation from the 2019 budget. The Department will continue its work with Congress to ensure additional funding is appropriated for FY2020 and future years.
- The publication of the FSA Risk and Needs Assessment System (RNAS) that will help identify all federal prison inmates who may qualify for pre-release custody by participating in authorized recidivism reduction programming and/or productive activities.
“Our communities are safer when we do a better job of rehabilitating offenders in our custody and preparing them for a successful transition to life after incarceration,” said Attorney General William P. Barr. “The Department is committed to and has been working towards full implementation of the First Step Act, which will help us effectively deploy resources to help reduce risk, recidivism, and crime.”
Implementation Progress, New and Expanded BOP Programs Under FSA
In preparation for the release, the BOP coordinated with US Probation Offices and created individualized release plans for every inmate to ensure a seamless transition.
The Department has taken active steps to implement the FSA:
Compassionate Release. The BOP updated its policies to reflect the new procedures for inmates to obtain “compassionate release” sentence reductions under 18 U.S.C. Section 3582 and 4205(g). Since the Act was signed into law, 51 requests have been approved, as compared to 34 total in 2018.
Expanded Use of Home Confinement. The FSA authorizes BOP to maximize the use of home confinement for low risk offenders. Currently, there are approximately 2,000 inmates on Home Confinement. The legislation also expands a pilot program for eligible elderly and terminally ill offenders to be transitioned to Home Confinement as part of a pilot program. Since enactment of the law, 201 inmates have qualified to be transitioned under the pilot program.
Drug Treatment. The BOP has always had a robust drug treatment strategy. Offenders with an identified need are provided an individualized treatment plan to address their need. About 16,000 BOP inmates are currently enrolled in drug treatment programs, including the well-regarded Residential Drug Abuse Program (RDAP).
Medication Assisted Treatment (MAT). The FSA requires BOP to assess the availability of and the capacity to treat heroin and opioid abuse through evidence-based programs, including medication-assisted treatment. In the wake of the opioid crisis, this initiative is important to improve reentry outcomes. Every inmate within 15 months of release who might qualify for MAT has been screened.
Effective Re-Entry Programming. FSA implementation includes helping offenders successfully reintegrate into the community – a critical factor in preventing recidivism and, in turn, reducing the number of crime victims. Finding gainful employment is an important part of that process. In furtherance of this goal, the BOP launched a “Ready to Work” initiative to connect private employers with inmates nearing release under the FSA.
Other BOP programs directed towards the full implementation of the FSA include the operation of twenty-one pilot dog programs, the development of a youth mentoring program, the identification of a dyslexia screening tool, and issuance of a new policy for its employees to carry and store personal weapons on BOP institution property. BOP has also updated existing guidance and training concerning the use of restraints on pregnant inmates, as well as verified that existing policies and contracts comply with the FSA requirement to provide sanitary products to female offenders free of charge. BOP also offers de-escalation training to its employees and officers in accordance with the Act. Finally, BOP has updated its mental health awareness training regarding inmates with psychiatric disorders, and more than 31,700 BOP employees have already received the updated training.
Funding For FSA Implementation
Congress has authorized $75 million for each fiscal year from 2019 to 2023 for the Justice Department to implement the First Step Act. The Department has re-directed $75 million in existing funds for FSA implementation from the 2019 budget. The Department will continue its work with Congress to ensure additional funding is appropriated for FY2020 and future years.
Re-directed funds in FY2019 for FSA implementation activities will include:
- Increasing Vocational Training Opportunities: Expands automotive vocational training and programs by providing opportunities for inmates to maintain and repair BOP vehicles and obtain CDL licenses; also expands the existing National Roofing and Paving Program.
- Expanding Education Programs: Updates and expands access to the computer-based Inmate Education Network computer-based courseware.
- Providing Certifications for Vocational Training: Enhances Career Technical Education job readiness services by purchasing both the programs and the industry recognized credentials for occupational and vocational training, such as production technician and mechanic.
- Increasing Volunteers/Partnership Opportunities: Provides resources for institutions to complete required background checks for volunteers and partner organizations.
- Enhancing Medication Assisted Treatment (MAT): Increases expertise and further develops evidence-based protocols in addition to expanding the types of treatment available to inmates.
- Providing English as Second Language (ESL) Workbooks and Textbooks: Enhances English literacy by providing educational services to inmates for are not English- proficient and standardizes teaching materials agency-wide.
- Meeting Needs of the Female Inmate Population: Expands inmate access to existing gender-responsive programs developed specifically to female inmates’ needs.
- Performing Evaluations for Evidence-Based Programs: Facilitates program evaluations of evidence-based programs by external organizations.
- Developing a Needs Assessment System: Provides resources to support a consultative meeting with practitioners who have expertise in needs assessment systems.
The Risk and Needs Assessment Tool – PATTERN
The Attorney General’s publication of a risk and needs assessment system was a key requirement of the FSA, signed into law by President Trump on Dec. 21, 2018. The publication of the RNAS report makes the changes in the law to good conduct time effective.
The RNAS is among several robust measures the Department has taken to implement the FSA, which seeks to reduce risk and recidivism among the prison population and assist inmates’ successful reintegration into society. The new system will be used to assess all federal inmates for risk and identify criminogenic needs that can be addressed by evidence-based programs, such as drug treatment, job training, and education. The system was developed in consultation with the FSA-established Independent Review Committee (IRC), the BOP, the National Institute of Justice (NIJ), the Administrative Office of the U.S. Courts, the National Institute of Corrections, and over two dozen stakeholders groups.
The new tool to be used by the BOP is called the Prisoner Assessment Tool Targeting Estimated Risk and Needs (PATTERN). PATTERN is designed to predict the likelihood of general and violent recidivism for all BOP inmates. As required by the FSA, PATTERN contains static risk factors (e.g. age and crime of conviction) as well as dynamic items (i.e. participation or lack of participation in programs like education or drug treatment) that are associated with either an increase or a reduction in risk of recidivism. The PATTERN assessment tool provides predictive models, or scales, developed and validated for males and females separately.
The PATTERN assessment, modeled specifically for the federal prison population, achieves a higher level of predictability and surpasses what is commonly found for risk assessment tools for correctional populations in the U.S.
The RNAS report will be available on the department’s website later today at www.nij.gov.
The RNAS will be subject to a 45-day study period beginning with the publication of the System. Starting Monday, July 22, the public may send comments to [email protected]. This study period allows stakeholders to review and analyze the System. After the study period, NIJ will hold a special listening session on the RNAS in early September.
Danvers Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON - A Danvers man was indicted yesterday in federal court on charges of distribution and possession of child pornography.
Joseph Corbett, 50, was indicted on one count of distribution of child pornography and one count of possession of child pornography. Corbett was arrested and charged by criminal complaint in June 2019, and was released by the Court on conditions.
According to the charging documents, on June 14, 2019, law enforcement executed a federal search warrant at Corbett’s home where they recovered an iPhone belonging to Corbett. An onsite forensic review of the phone revealed images of child pornography, including the sexual abuse of girls between the ages of 6 and 8 years old.
The distribution charge provides for a mandatory minimum sentence of five years and up to 20 years in prison. The possession charge provides for a sentence of no greater than 20 years in prison. Each charge provides for a minimum of five years and up to a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Danvers Police Chief Patrick M. Ambrose made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Dalton man pleads guilty to sex trafficking of minorsRead the Press Release
ROME, Ga. - Brian Hernandez Acosta, the lead defendant in a child sex trafficking case, has pleaded guilty to charges of conducting a child exploitation enterprise, conspiring to engage, and engaging, in sex trafficking minors by force, fraud, or coercion, sex trafficking of children under 18 years old, interstate transport of a minor for prostitution, producing child pornography, and distributing cocaine to a person under 21 years old.
“The defendant produced child pornography and pursued a full range of child exploitation methods,” said U.S. Attorney Byung J. “BJay” Pak. “The scheme in this case is especially egregious because they coerced their child victims into engaging in sexual activity in some instances through the use of alcohol and cocaine. We are hopeful that Hernandez Acosta’s guilty plea will encourage more victims to contact law enforcement.”
“This defendant and his friends preyed upon vulnerable teens, and in a scheme of cruelty and brutality coerced his victims to sell their bodies for his own gratification and profit,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI has zero tolerance for the sex trafficking of children and will continue to work with law enforcement partners to ensure justice is served for the victims.”
“I am very pleased that members of the Dalton Police Department were able to assist with this case. The hard work and efforts by the FBI and the task force members really paid off. Their efforts have helped to dismantle a group that was sexually exploiting minors,” said Dalton Police Chief Cliff Cason.
According to U.S. Attorney Pak, the charges and other information presented in court: Hernandez Acosta conspired to traffic minor girls for commercial sex throughout North Georgia. Beginning in November 2015, and continuing until December 2016, the defendants allegedly caused at least six girls between 16 and 17 years old to engage in prostitution, through the use force, fraud, and coercion.
Hernandez Acosta, after pursuing some of the girls on Facebook and Snapchat, posted provocative photographs of them in the adult entertainment and escort sections of Backpage.com, a classified advertisement website seized by the Department of Justice. Hernandez Acosta used these ads to solicit men to engage in sex with the minors for money. The advertisements used fake names for the minors and falsely listed the girls’ ages as between 19 through 21 years old. For example, Hernandez Acosta forced one 16-year-old girl to engage in sex with men after driving her from Florida to Georgia after falsely offering the girl a place to live. The defendant required the young girls to engage in sex acts with multiple men each night and kept a large portion of the money they earned.
Between July 2016 and December 2016, co-defendants Anthony Joseph Lawhon and Brandi Rice Stumpe allegedly hosted numerous sex parties at their residence in Canton, Georgia, where they engaged in sex acts with minor girls or young women while plying them with alcohol and cocaine. Investigators recovered images of some of this conduct on Hernandez Acosta’s cellphone. Lawhon is alleged to have paid Hernandez Acosta thousands of dollars in exchange for commercial sex and cocaine. Investigators are working to identify other girls and young women allegedly victimized in this child exploitation scheme.
Hernandez Acosta’s guilty plea follows the previous guilty pleas of co-defendants Nilageo Alvarez Acosta and Jaime Adam Riano. The trial of co-defendants Anthony Joseph Lawhon and Brandi Rice Stumpe is currently scheduled for September 16, 2019, before U.S. District Judge Timothy C. Batten, Sr.
- Brian Hernandez Acosta, 28, of Dalton, Georgia, pleaded guilty on July 1, 2019, to the offenses of conducting a child exploitation enterprise, sex trafficking minors by force, fraud, or coercion, sex trafficking of children under 18 years old, transporting a minor in interstate commerce for prostitution, producing child pornography, and distributing cocaine to a person under 21 years old.
- Nilageo Alvarez Acosta pleaded guilty on April 11, 2019, to conspiracy to engage in sex trafficking, sex trafficking by force, fraud or coercion, sex trafficking children under 18 years old, and interstate transport of a minor for prostitution.
- Jaime Adam Riano pleaded guilty on November 17, 2017, to sex trafficking children under 18 years old.
This case is being investigated by the Federal Bureau of Investigation and the Dalton Police Department. The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Georgia Bureau of Investigation, and the Murray County Sheriff’s Office also provided assistance.
Assistant U.S. Attorneys Suzette A. Smikle, Dashene Cooper, and Phyllis Clerk are prosecuting the case.
Members of the public are reminded that the indictment concerning co-defendants Anthony Joseph Lawhon and Brandi Rice Stumpe only contains charges. Lawhon and Stumpe are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.