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28 August 2019
Charges Filed Against Dozens in Trafficking Network Responsible for Diverting over 23 Million Oxycodone, Hydrocodone and Carisoprodol PillsRead the Press Release
HOUSTON – A total of 41 individuals have been charged in nine indictments for their alleged involvement in a network of “pill mill” clinics and pharmacies. Those charged include medical providers, clinic owners and managers, pharmacists, pharmacy owners and managers as well as drug dealers and traffickers. Their actions allegedly resulted in the diversion of approximately 23 million oxycodone, hydrocodone and carisoprodol pills.
In addition, federal law enforcement agents executed 36 search warrants including 15 pharmacies and six “pill mill” clinics, as well as other offices and residences, aimed at disrupting networks of opioid diversion. The Drug Enforcement Administration (DEA) also served immediate suspension orders on seven pharmacies and two providers involved in dispensing controlled substances without legitimate medical purpose.
The Health Care Fraud Unit of the Criminal Division’s Fraud Section (HCF Unit) led the enforcement actions in conjunction with U.S. Attorney’s Offices (USAOs) for the Southern and Eastern Districts of Texas and District of Massachusetts as well as the DEA (with task force officers from greater Houston police departments) and the FBI.
The charges allege participating doctors, medical professionals and pharmacies knew the prescriptions had no legitimate medical purpose and were outside the usual course of professional practice. In some cases, “crew leaders” and “runners” allegedly filled or had the individuals who posed as patients fill the illegal prescriptions at Houston-area pharmacies. The owner and pharmacist in charge at one pill mill pharmacy allegedly dispensed the second highest amount of oxycodone 30mg pills of all pharmacies in the entire State of Texas in 2019, and the ninth highest amount in the nation. 100% of the oxycodone this pharmacy dispended – every single oxycodone pill that left the premises – was in the highest available dosage strength of that drug.
On certain occasions, the indictments allege drug dealers and traffickers then allegedly diverted and distributed the controlled substances to the streets, with some pills trafficked from Houston to Boston.
“Today’s action shows that the Department of Justice continues to relentlessly pursue criminals, including medical professionals, who peddle opioids for profit,” said Assistant Attorney General (AAG) Brian A. Benczkowski of the Justice Department’s Criminal Division. “Our use of data analytics means that no one engaging in this criminal behavior is invisible. And if you behave like a drug dealer, we are going to find you and treat you like a drug dealer.”
“This type of criminal activity is, in part, what is fueling the 68,500 overdose deaths per year across the United States,” said Special Agent in Charge Will R. Glaspy of the DEA’s Houston Division. “The DEA and our numerous law enforcement partners will not sit silently while drug dealers wearing lab coats conspire with street dealers to flood our communities with over 23 million dangerous and highly addictive pills.”
“Opioid abuse has a devastating and far reaching effect on our society,’ said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “The doctors, nurses and pharmacists in this case allegedly misused their positions, violating the trust of the public they took an oath to serve. Together with their co-conspirators, these medical professionals released millions of highly addictive drugs onto the streets of our community. FBI Houston remains committed to working alongside our federal, state and local partners to combat this epidemic and protect our neighborhoods.”
In addition to the cases publicized today, Benczkowski and U.S. Attorneys Ryan K. Patrick and John Bash also announced that the HCF Strike Force will expand into the Rio Grande Valley and San Antonio, making it the 24th district with such a presence. The HCF Strike Force is a joint law enforcement effort that brings together the resources and expertise of the HCF Unit, USAOs and law enforcement partners at the FBI, Health and Human Services - Office of the Inspector General (HHS-OIG) and DEA.
“By and large, these clinics are all about money and not the patient,” said Patrick of the Southern District of Texas (SDTX). “If it was about the patient, no legitimate doctor would write, and no legitimate pharmacy would fill, these massive amounts and combinations of controlled substances. Pill mills are magnets for crime and should be eradicated. I am happy and willing to partner with any agency or police department in shutting down and prosecuting these places. I am also eager to expand our work into healthcare fraud in the Rio Grande Valley. These grifters are wasting tax payer money and making healthcare more expensive for everyone else.”
“I am excited to team with AAG Benczkowski and U.S. Attorney Patrick to fight healthcare fraud in San Antonio and the Rio Grande Valley,” said Bash for the Western District of Texas. “Fraud in the healthcare system not only rips off innocent victims and taxpayers, but it also quite often endangers the health of patients – as with the illegal distribution of addictive opioids. For that reason, it’s a major priority for all of us.”
In addition to the Strike Force prosecutions, law enforcement conducted additional enforcement actions which included the execution of search warrants and suspension of DEA registration numbers. In the SDTX, 350 law enforcement personnel executed a total of 36 search and seizure warrants, including 15 pharmacies and six clinics. DEA also issued nine immediate suspension orders (ISOs) to support related investigative efforts to interrupt an opioid drug diversion distribution chain.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Canadian citizen unlawfully in the United States sentenced to prison for filing fraudulent tax returns using stolen identities seeking more than $1 million in refundsRead the Press Release
ATLANTA – Vladimir Pierre a/k/a Jimmy Valentine, originally of Montreal, Canada, has been sentenced for his role in a stolen identity tax refund fraud scheme.
"There is no shortage of fraudsters who commit tax fraud using stolen identities—crimes that directly impact every American taxpayer,” said U.S. Attorney Byung “BJay” Pak. “These schemes can be a nightmare for citizens who must endure the process of repairing their credit and IRS returns, citizens are wise to regularly monitor their credit reports for fraud.”
“Individuals who commit identity theft and refund fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Thomas J. Holloman, III, Atlanta Field Office Special Agent in Charge. “Pierre demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In May 2019, Pierre pleaded guilty to theft of government funds and aggravated identity theft. He admitted that between approximately January 2015 and April 2018, he filed over 150 fraudulent returns, a significant number of which involved the use of stolen identities, seeking more than $1 million in refunds. Pierre also admitted that as a result of his scheme he caused more than $340,000 in losses to the federal government.
The government noted at sentencing that Pierre took a number of intricate steps to conceal his scheme, including advertising his tax services under a fictitious name, using electronic filing identification numbers and preparer tax identification numbers in the names of others to file returns, and obtaining a tax preparation product using a stolen identity.
Prior to his arrest in December 2018, Pierre had been unlawfully residing in the Atlanta-area for several years after overstaying his visa.
U.S. District Judge Eleanor Ross sentenced Vladimir Pierre, 39, of Atlanta, Georgia, to serve four years, nine months in prison, three years of supervised release, removal to Canada from the United States, and ordered to pay $341,996 in restitution to the Internal Revenue Service.
Many tax fraudsters, for their success, depend on filing a fraudulent return with a stolen identity before their victims file their genuine returns. Filing early and avoiding use of obvious usernames and passwords for online tax websites are two ways to help protect yourself.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Alex R. Sistla prosecuted this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Camden Man Admits Role in Stolen Identity Refund Fraud Scheme and Obstruction of JusticeRead the Press Release
CAMDEN, N.J. – A Camden man today admitted cashing fraudulently obtained tax refund checks issued by the U.S. Treasury, unlawfully utilizing the stolen identities of residents of Puerto Rico to effectuate the scheme, and tampering with a witness, U.S. Attorney Craig Carpenito announced.
Alberto Sanchez, 34, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to five counts of an indictment: two counts of theft of government funds, two counts of aggravated identity theft and one count of tampering with a witness or victim.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.
For the 2013 tax year, more than 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico, and where the refunds were directed to be mailed to a small section of Pennsauken, New Jersey. Of the 3,300 returns filed, several of the refunds checks were issued and ultimately cashed at check cashing agencies in New Jersey, Philadelphia, and New York using false and fraudulent identifications, including fake New Jersey driver's licenses, fake Social Security cards, and fake Department of Homeland Security Permanent Resident Identification cards.
On March 28, 2018, Sanchez and others were indicted by a federal grand jury. According to the indictment, the defendants and their conspirators obtained stolen identities of residents of Puerto Rico to falsely and fraudulently generate income tax refund checks. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. The conspirators paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden. The check couriers presented false and fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks. The scheme caused $565,091 in losses to the U.S. Treasury.
Sanchez admitted that during 2014, he cashed Treasury income tax refund checks that were issued to other people. He used an Alien Permanent Resident Identification Card, which had his photograph, but the name, address and identifying information of another individual, and a Social Security card, which had a name and Social Security number that matched the information on the income tax refund check. Sanchez also admitted that, upon finding out that another person was arrested for participating in the scheme, he told that person to lie to investigators.
The counts of theft of government funds are each punishable by a maximum of 10 years in prison; the count of witness tampering is punishable by a maximum of 20 years in prison; and the counts of aggravated identity theft are each punishable by a mandatory minimum of two years in prison. All the counts are also punishable by a fine of up to $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 10, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, Newark Field Office, and Special Agent in Charge Guy Ficco, Philadelphia Field Office; and special agents of the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s guilty plea. He also thanked the U.S. Postal Inspection Service for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson and Assistant U.S. Attorney Christina O. Hud of the Criminal Division.
The charges and allegations against the remaining codefendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Bronx, New York, Man and Middlesex County Man Sentenced for Their Roles in Prostitution Ring Involving a MinorRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man and a Bronx, New York, man have been sentenced for their respective roles in a 2018 scheme in which a minor was advertised and provided for commercial sex acts, U.S. Attorney Craig Carpenito announced today.
Aryeh Goodman, 37, of East Brunswick, New Jersey, was sentenced today to 18 months in prison. He previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with interstate travel in aid of a racketeering enterprise. Richard Ortiz, 24, a/k/a “Ace,” of Bronx, New York, was sentenced Aug. 27, 2019, to 96 months in prison. He previously pleaded guilty before Judge Wolfson to an information charging him with conspiracy to commit the sex trafficking of a child. Judge Wolfson imposed both sentences in Trenton federal court.
According to documents filed in this case and statements made in court:
From January 2018 through February 2018, Ortiz and his codefendant, Gabriella Colon, recruited, enticed, and advertised Minor Victim-1, knowing that Minor Victim-1 was less than 18 years old and would be caused to engage in one or more commercial sex acts. Ortiz previously acknowledged having transported Minor Victim-1 from New York into New Jersey and collecting money from numerous individuals who paid to have sexual relations with Minor Victim-1. Aryeh Goodman previously admitted answering an online advertisement that depicted Minor Victim-1 and presented Minor Victim-1 for various sexual acts. Goodman, a previously convicted sex-offender, acknowledged travelling to the East Brunswick motel where Minor Victim-1 was located and paying Ortiz and Colon so he could engage in sexual activities with Minor Victim-1.
In addition to the prison terms, Judge Wolfson sentenced Goodman to one year of supervised release and Ortiz to five years of supervised release. She ordered Ortiz to register as a sex-offender upon being released from prison. Colon previously pleaded guilty to an information charging her with one count of conspiracy to commit sex trafficking of a child and is scheduled to be sentenced Sept. 26, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, and detectives with the Middlesex County Prosecutor’s Office with the investigation. He also thanked the East Brunswick and Fort Lee Police Departments for their assistance.
The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Attorney Pleads Guilty to Stealing $1.4 Million from Charity Founded to Help Veteran and Military FamiliesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that KEVIN E. CREED, 67, of Litchfield waived his right to be indicted and pleaded guilty today in New Haven federal court to wire fraud related to a scheme in which he stole approximately $1.4 million from a charity he organized.
According to court documents and statements made in court, Creed is an attorney who operates Creed Law Firm in Bristol. The Fisher House Foundation is a national organization that builds comfort homes on the grounds of military and Veteran Affairs medical centers where military veterans and their families can stay for no cost while undergoing treatment at Veteran Affairs hospitals. In 2010, Creed established a charity called the Friends of Fisher House Connecticut, the purported purpose of which was to raise funds to support the building and maintenance of a Fisher House comfort home in West Haven.
Creed solicited donations for the Friends of Fisher House from corporations and individuals. He solicited funds at fairs, carnivals and supermarkets, and also held fundraising events, including the Bristol half-marathon and a 10-kilometer foot race, based on the representation that the money raised would support the construction and operation of the West Haven Fisher House. While Friends of Fisher House Connecticut made a $1 million donation in 2015 to assist with the financing of the construction of the Fisher House West Haven, Creed used his position to take approximately $1.4 million that had been raised for the organization and use it for both personal and law firm expenses.
Creed is scheduled to be sentenced by U.S. District Judge Janet C. Hall on November 20, 2019, at which time he faces a maximum term of imprisonment of 20 years.
Creed is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
U.S. Attorney Durham thanked the Office of the Chief State’s Attorney for its assistance in this matter.
Individuals who believe they have been victimized by this scheme are encouraged to contact the U.S. Attorney’s Office at 1-888-645-5807, or [email protected].
Attorney General’s Advisory Subcommittee on Native American Issues to Convene in New MexicoRead the Press Release
Cedar Rapids, IA – U.S. Attorney Peter. E. Deegan, Jr. will meet with fellow members of the Attorney General’s Advisory Subcommittee on Native American Issues (NAIS) in Santa Ana Pueblo, New Mexico, in order to discuss public safety and law enforcement issues that impact Native American and Alaska Native communities.
The annual meeting will begin Aug. 28 and run through Aug. 30. During this time, the NAIS will engage with tribal leaders and develop strategies and best practices to address missing and murdered indigenous people, drug trafficking, needed law enforcement resources, and safeguarding children from sexual abuse in Indian country.
The most common crimes investigated in Indian country include child sexual abuse, violent assaults, and adult sexual assaults, followed by homicide, other forms of child abuse, drug, and property crimes. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. Native women and girls suffer a high rate of violence, including murder.
“United States Attorneys nationwide are committed to improving public safety in Indian country and rural Alaska. The work of Attorney General Barr’s Native American Issues Subcommittee is focused on reducing violent crime, improving law enforcement resources, and combating the distribution of methamphetamine and opioids,” said U.S. Attorney Shores, Chair of the NAIS. “The disproportionate rates of violence affecting Native American and Alaska Native women is particularly troubling to me. With Attorney General Barr’s leadership, we will continue working with tribal leaders to find solutions to the epidemic of violence against indigenous women.”
“Our office’s mission is to protect the public,” said United States Attorney Deegan. “This includes working with tribal authorities and the Federal Bureau of Investigation to safeguard the Native American communities in this district.”
Panel discussions will also focus on the Indian Arts and Crafts Act and preserving Native American cultural patrimony. The Indian Arts and Crafts Act of 1990 is a truth-in-advertising law that prohibits misrepresentation in the marketing of Indian arts and crafts products within the United States. It is illegal to offer or display for sale, or sell any art or craft product in a manner that falsely suggests it is Indian produced, an Indian product, or the product of a particular Indian or Indian tribe or Indian arts and crafts organization, resident within the United States.
U.S. Attorney John Anderson of the District of New Mexico will host the three-day conference.
The NAIS consists of 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes and makes policy recommendations to the Attorney General. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime. It is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. U.S. Attorney Trent Shores of the Northern District of Oklahoma is the subcommittee Chair. U.S. Attorney Kurt Alme of the District of Montana is the Vice Chair.
In fiscal year 2018, the Department of Justice awarded $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs, to 134 Indian tribes and Alaska Native villages. In addition, the Department awarded a total of 154 grants totaling $88 million as part of the first-ever Tribal Victim Service Set-Aside program; these awards were supported by the Crime Victims Fund, a repository of federal criminal fines, fees, and special assessments. The awards will help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Even more funding will be available – up to $168 million – under the set-aside this year.
In July 2019, the Department announced a new tool giving tribal governments the ability to input data directly and gain access to the FBI’s National Sex Offender Registry (NSOR) using the Tribe and Territory Sex Offender Registry System (TTSORS). TTSORS is a fully functioning registry system that complies with Sex Offender Registration and Notification Act requirements. The system connection will be available to all tribal governments already participating in the Tribal Access Program (TAP), which allows information sharing between tribal and federal government criminal information systems. TAP has been instrumental in assisting tribes with ongoing implementation of SORNA. In fiscal year 2019, the department expanded TAP to 25 more tribes, for a total of more than 70 participating tribes across the country.
Attorney General’s Advisory Subcommittee on Native American Issues Convenes in New MexicoRead the Press Release
U.S. Attorney Trent Shores, along with fellow members of the Attorney General’s Advisory Subcommittee on Native American Issues (NAIS), are meeting this week in Santa Ana Pueblo, New Mexico, to discuss public safety and law enforcement issues that impact Native American and Alaska Native communities.
The annual meeting started today and will run through Aug. 30. The NAIS will engage with tribal leaders and develop strategies and best practices to address missing and murdered indigenous people, drug trafficking, needed law enforcement resources, and safeguarding children from sexual abuse in Indian country.
The most common crimes investigated in Indian country include child sexual abuse, violent assaults, and adult sexual assaults, followed by homicide, other forms of child abuse, drug, and property crimes. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. Native women and girls suffer a high rate of violence, including murder.
“United States Attorneys nationwide are committed to improving public safety in Indian country and rural Alaska. The work of Attorney General Barr’s Native American Issues Subcommittee is focused on reducing violent crime, improving law enforcement resources, and combating the distribution of methamphetamine and opioids,” said U.S. Attorney Shores, Chair of the NAIS. “The disproportionate rates of violence affecting Native American and Alaska Native women is particularly troubling to me. With Attorney General Barr’s leadership, we will continue working with tribal leaders to find solutions to the epidemic of violence against indigenous women.”
Panel discussions will also focus on the Indian Arts and Crafts Act and preserving Native American cultural patrimony. The Indian Arts and Crafts Act of 1990 is a truth-in-advertising law that prohibits misrepresentation in the marketing of Indian arts and crafts products within the United States. It is illegal to offer or display for sale, or sell any art or craft product in a manner that falsely suggests it is Indian produced, an Indian product, or the product of a particular Indian or Indian tribe or Indian arts and crafts organization, resident within the United States.
U.S. Attorney John Anderson of the District of New Mexico is hosting the three-day meeting.
The NAIS consists of 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes and makes policy recommendations to the Attorney General. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime. It is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. U.S. Attorney Kurt Alme of the District of Montana is the Vice Chair.
In fiscal year 2018, the Department of Justice awarded $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs, to 134 Indian tribes and Alaska Native villages. In addition, the Department awarded a total of 154 grants totaling $88 million as part of the first-ever Tribal Victim Service Set-Aside program; these awards were supported by the Crime Victims Fund, a repository of federal criminal fines, fees, and special assessments. The awards will help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Even more funding will be available – up to $168 million – under the set-aside this year.
In July 2019, the Department announced a new tool giving tribal governments the ability to input data directly and gain access to the FBI’s National Sex Offender Registry (NSOR) using the Tribe and Territory Sex Offender Registry System (TTSORS). TTSORS is a fully functioning registry system that complies with Sex Offender Registration and Notification Act requirements. The system connection will be available to all tribal governments already participating in the Tribal Access Program (TAP), which allows information sharing between tribal and federal government criminal information systems. TAP has been instrumental in assisting tribes with ongoing implementation of SORNA. In fiscal year 2019, the department expanded TAP to 25 more tribes, for a total of more than 70 participating tribes across the country.
Attorney General's Advisory Subcommittee on Native American Issues to Convene in New MexicoRead the Press Release
TULSA, Okla.—U.S. Attorney Billy J. Williams will meet with fellow members of the Attorney General’s Advisory Subcommittee on Native American Issues (NAIS) in Santa Ana Pueblo, New Mexico, in order to discuss public safety and law enforcement issues that impact Native American and Alaska Native communities.
The annual meeting will begin today and run through Aug. 30. During this time, the NAIS will engage with tribal leaders and develop strategies and best practices to address missing and murdered indigenous people, drug trafficking, needed law enforcement resources, and safeguarding children from sexual abuse in Indian country.
The most common crimes investigated in Indian country include child sexual abuse, violent assaults, and adult sexual assaults, followed by homicide, other forms of child abuse, drug, and property crimes. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. Native women and girls suffer a high rate of violence, including murder.
“United States Attorneys nationwide are committed to improving public safety in Indian country and rural Alaska. The work of Attorney General Barr’s Native American Issues Subcommittee is focused on reducing violent crime, improving law enforcement resources, and combating the distribution of methamphetamine and opioids,” said US Attorney Shores, Chair of the NAIS. “The disproportionate rates of violence affecting Native American and Alaska Native women is particularly troubling to me. With Attorney General Barr’s leadership, we will continue working with tribal leaders to find solutions to the epidemic of violence against indigenous women.”
“Pursuing justice on behalf of tribes in Oregon is a top priority for the U.S. Attorney’s Office. The NAIS advances important work on behalf of the Attorney General that helps to protect tribal communities and bring swift justice for tribal members whose lives are impacted crime and violence,” said U.S. Attorney Williams. “My colleagues and I are deeply committed to ensuring all tribes have the resources needed to protect their communities and administer justice on tribal land.”
Panel discussions will also focus on the Indian Arts and Crafts Act and preserving Native American cultural patrimony. The Indian Arts and Crafts Act of 1990 is a truth-in-advertising law that prohibits misrepresentation in the marketing of Indian arts and crafts products within the United States. It is illegal to offer or display for sale, or sell any art or craft product in a manner that falsely suggests it is Indian produced, an Indian product, or the product of a particular Indian or Indian tribe or Indian arts and crafts organization, resident within the United States.
U.S. Attorney John Anderson of the District of New Mexico will host the three-day conference.
The NAIS consists of 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes and makes policy recommendations to the Attorney General. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime. It is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. U.S. Attorney Trent Shores of the Northern District of Oklahoma is the subcommittee Chair. U.S. Attorney Kurt Alme of the District of Montana is the Vice Chair.
In fiscal year 2018, the Department of Justice awarded $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs, to 134 Indian tribes and Alaska Native villages. In addition, the Department awarded a total of 154 grants totaling $88 million as part of the first-ever Tribal Victim Service Set-Aside program; these awards were supported by the Crime Victims Fund, a repository of federal criminal fines, fees, and special assessments. The awards will help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Even more funding will be available – up to $168 million – under the set-aside this year.
In July 2019, the Department announced a new tool giving tribal governments the ability to input data directly and gain access to the FBI’s National Sex Offender Registry (NSOR) using the Tribe and Territory Sex Offender Registry System (TTSORS). TTSORS is a fully functioning registry system that complies with Sex Offender Registration and Notification Act requirements. The system connection will be available to all tribal governments already participating in the Tribal Access Program (TAP), which allows information sharing between tribal and federal government criminal information systems. TAP has been instrumental in assisting tribes with ongoing implementation of SORNA. In fiscal year 2019, the department expanded TAP to 25 more tribes, for a total of more than 70 participating tribes across the country.
Associate of Former Border Patrol Agent Sentenced to Prison for Conspiracy to Commit BriberyRead the Press Release
An associate of a former U.S. Border Patrol Agent (BPA) was sentenced to 48 months in prison followed by one year of supervised release for conspiring to accept money in return for helping to smuggle marijuana and other illegal drugs into the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney for the Southern District of Texas Ryan K. Patrick, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Special Agent in Charge Juan B. Benavides of U.S. Customs and Border Protection (CBP), Houston, made the announcement.
Daniel Hernandez, 46, of Roseville, California, was sentenced by U.S. District Judge Gray H. Miller of the Southern District of Texas, who also ordered Hernandez to forfeit $5,000. Hernandez pleaded guilty to one count of bribery on Feb. 5, 2019, before U.S. Magistrate Judge Nancy K. Johnson of the Southern District of Texas.
According to the plea documents, between 2013 and May 2014, Hernandez and the BPA, Robert John Hall Jr., agreed, and took overt acts, to facilitate the trafficking of illegal drugs, including marijuana, into the United States from Mexico on behalf of a drug trafficking organization (DTO). In exchange for cash payments, they provided an individual they believed to be a member of the DTO with CBP sensor locations, the locations of unpatrolled roads at or near the U.S.-Mexico border, the number of BPAs working in a certain area, keys to unlock CBP locks located on gates to ranch fences along the border, and CBP radios. In total, Hernandez accepted approximately $5,000 in cash in return for facilitating shipments of illegal narcotics into Texas without law enforcement detection.
The FBI investigated the case with assistance from CBP Office of Professional Responsibility. Trial Attorneys Rebecca Moses and Peter M. Nothstein of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorneys John Pearson and Arthur R. Jones of the Southern District of Texas are prosecuting the case.
Associate of Former Border Patrol Agent Sentenced for Conspiracy to Commit BriberyRead the Press Release
HOUSTON – An associate of a former U.S. Border Patrol (BP) agent has been sentenced to for conspiring to accept money in return for helping to smuggle marijuana and other illegal drugs into the United States.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Special Agent in
U.S. District Judge Gray H. Miller sentenced Daniel Hernandez, 46, of Roseville, California, to 48 months in prison to be followed by one year of supervised release and ordered him to forfeit $5,000. Hernandez pleaded guilty Feb. 5, 2019, to one count of bribery before U.S. Magistrate Judge Nancy K. Johnson.
According to the plea documents, between 2013 and May 2014, Hernandez and BP agent Robert John Hall Jr., of La Feria, agreed and took overt acts to facilitate the trafficking of illegal drugs, including marijuana, into the United States from Mexico on behalf of a drug trafficking organization (DTO). In exchange for cash payments, they provided an individual they believed to be a member of the DTO with CBP sensor locations, the locations of unpatrolled roads at or near the U.S.-Mexico border, the number of BP agents working in a certain area, keys to unlock CBP locks located on gates to ranch fences along the border and CBP radios. In total, Hernandez accepted approximately $5,000 in cash in return for facilitating shipments of illegal narcotics into Texas without law enforcement detection.
Hall was previously sentenced to 114 months in prison.
The FBI investigated the case with assistance from CBP - Office of Professional Responsibility. Assistant U.S. Attorneys John Pearson and Arthur R. Jones and Trial Attorneys Rebecca Moses and Peter M. Nothstein of the Criminal Division’s Public Integrity Section are prosecuting the case.
Assistant Attorney General Makan Delrahim Announces Selection of Kathy O'Neill as the Antitrust Division's New Senior Director of Investigation and LitigationRead the Press Release
Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division today announced the elevation of Section Chief Kathy O’Neill to the new role of Senior Director of Investigations and Litigation. O’Neill, who most recently served as Chief of the Antitrust Division’s Transportation, Energy and Agriculture Section, will serve in the division’s front office as the senior-most career civil antitrust attorney, with responsibility over all civil merger and conduct investigations and litigation.
“Kathy has proven her extraordinary talent as a leader in the Antitrust Division time and again, helping bring a number of blockbuster investigations to successful resolutions in recent years. Her leadership, breadth of experience and advocacy have been invaluable, and in her new role she will be able to work closely with all of our civil section leadership to ensure that we carry out our mission on behalf of American consumers efficiently and effectively,” said Assistant Attorney General Delrahim.
O’Neill has been with the Antitrust Division for 12 years. Prior to joining the Antitrust Division, she worked as an assistant attorney general for the New York State Attorney General, an attorney advisor for the Federal Communications Commission and in private practice. O’Neill has played a leading role in advancing numerous high-profile matters, including the Antitrust Division’s investigation and settlement of Bayer’s proposed acquisition of Monsanto; the division’s civil investigation of a big-rigging conspiracy by several South Korea-based companies, which resulted in record-setting settlements under Section 4A of the Clayton Act; and the division’s successful challenge to Halliburton’s proposed acquisition of Baker Hughes. O’Neill also played a prominent role in the litigation and settlement of U.S. v. US Airways Group Inc. and AMR Corp in 2013 and the Antitrust Division’s successful litigation efforts in U.S. v. NCM and Screenvision in 2015, U.S. v. AT&T Inc., T-Mobile USA Inc. and Deutsche Telekom AG in 2011 and U.S. v. JBS S.A. in 2008.
O’Neill received her J.D. from Tulane Law School and her B.A. from the University of Pennsylvania.
Appleton Man Indicted for Impersonating a Deputy US Marshal and Possessing a Firearm as a Convicted FelonRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on August 27, 2019, a federal grand jury returned an indictment against Adam K. Fevold (age: 31) of Appleton, Wisconsin.
Fevold faces charges alleging he impersonated a Deputy US Marshal and was a felon in possession of a firearm, contrary to Title 18, United States Code, Sections 912 and 922(g)(1). He faces maximum penalties of three and ten years’ imprisonment, respectively, fines of $250,000, and three years of supervised release.
According to the indictment, Fevold pretended to be a Deputy US Marshal in order to be excused from work at his private employer. The indictment further alleges that Fevold falsely represented to the company that he possessed and was authorized to use U.S. Marshal-issued credentials and equipment, including a badge, handcuffs, a heat-seeking drone, and bulletproof glass and emergency lights on his vehicle. The indictment also alleges that during the same time period, Fevold was a convicted felon unlawfully possessing a Romanian-made 7.62-millimeter semi-automatic rifle.
This case was investigated by the United States Marshals Service and the Outagamie County Sheriff’s Department. It will be prosecuted by Assistant United States Attorney Timothy W. Funnell.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Alleged Fraudster Indicted in $2.7 Million Scam Against BankRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Alan Safahi on charges related to an alleged bank fraud scheme, announced United States Attorney David L. Anderson and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Kareem Carter.
The indictment alleges that between June 2013 and September 2014, Safahi, 58, of Orinda, Calif., fraudulently entered into an agreement with a bank by which the bank was to be a backer for prepaid charge cards. According to the agreement, Safahi’s company, Card Express, would issue and service the charge cards. Further, the agreement required Card Express to fund 100% of the value of the cards and to turn over to the bank the total amount that the cards were supposed to be worth. Instead of complying with the agreement, Safahi allegedly directed the employees of Card Express to maintain two sets of books. One set of books maintained by Card Express was accessible to the cardholders and accurately reported the total amount for which the prepaid charge card was purchased, as well as the balance after any purchases. The second set of books, however, was provided to the bank and fraudulently stated that the amount the cardholder spent on the day the card was used was the total value of the prepaid card. Thus, Safahi caused the bank to believe the sponsored cards had much lower balances overall than they actually did have.
The indictment further alleges Safahi fraudulently diverted funds that should have been turned over to the bank, i.e., the difference between the value of the cards and the amount Card Express reported to the bank was prepaid for the cards. Safahi allegedly used some of the diverted funds to fund Card Express. Safahi allegedly used other diverted funds to maintain his personal lifestyle, including by purchasing his home. According to the indictment, on or about September 24, 2014, Safahi no longer was able to maintain sufficient cash flow to conceal his fraud and reported the true overall balance of the prepaid charge cards to the bank. After reporting the true balance of the cards to the bank, Safahi promptly shut down Card Express, causing the bank and its customers to lose money. According to the indictment, the overall balance of the charge cards Safahi reported to the banks on September 24, 2014, was approximately $2,735,531.27 larger than previously reported.
In sum, the indictment charges Safahi with bank fraud, in violation of 18 U.S.C. § 1344, four counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of money laundering, in violation of 18 U.S.C. § 1957. Safahi made his initial appearance today and was released on a $250,000 bond. The defendant was ordered to appear on September 13, 2019, at 11:00 a.m. before the Honorable Susan Illston for a status and trial setting conference.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 30 years in prison and a maximum $1,000,000 fine on each count of bank and wire fraud. If convicted of money laundering, the defendant faces a maximum sentence of 10 years in prison and a maximum $250,000 fine. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Robert David Rees is prosecuting this case with the assistance of Kathy Tat. This prosecution is the result of an investigation by the Internal Revenue Service. Criminal Investigations.
Alabama Couple Sentenced in Child Exploitation CaseRead the Press Release
Montgomery, Alabama – On Tuesday, August 27, 2019, a federal judge sentenced a Prattville man and a Shelby County woman on child exploitation charges, announced Middle District of Alabama United States Attorney Louis V. Franklin, Sr., Northern District of Alabama United States Attorney Jay E. Town, and Homeland Security Investigations Special Agent in Charge for Alabama Nick S. Annan.
United States District Judge L. Scott Coogler sentenced Kenneth Earl Hooks, 36, of Prattville, to 120 years and two life sentences, and Sarah Pauline Morris, 28, of Shelby County, to 197 months for producing child pornography and enticing a young child to engage in sexual activity for the purpose of creating obscene images. Hooks pled guilty to these charges in February 2019, and also to the additional charge of transportation of a minor for sexual purposes. Morris pled guilty in March 2019. There is no parole in the federal system.
The charges originated from numerous criminal events that occurred in the Middle District of Alabama and in the Northern District of Alabama. Cases in both districts were consolidated for sentencing in the Northern District.
According to a May 4, 2018, federal criminal complaint and arrest affidavit issued for Hooks, police found Hooks and Morris living in a desert area in the southern tip California after locating a red Mitsubishi Montero with an Alabama license plate. The red Mitsubishi was registered to Morris and police were searching for it because security cameras at a Walmart in Brawley, California, showed her driving it on March 30, 2018, after security officers at the store reported Morris attempting to film two young girls in a bathroom stall.
As a result of further investigation, images of child pornography were discovered on a laptop that had been subjected to forensic examination by law enforcement officers in Imperial County, California. On or about April 27, 2018, agents from the Department of Homeland Security in Birmingham received these images which depicted the sexual exploitation of two prepubescent children and a teenage female under the age of 18 by Hooks in Alabama. During the investigation, agents learned that Hooks had transported the teenage female victim from Mississippi to Alabama with the intent of sexually assaulting her and recording it on video.
“Exploiting children is a despicable crime that is carried out by depraved individuals,” stated U.S. Attorney Franklin. “Protecting the young and innocent is a priority in my office. I am proud of the hard work and diligence of every agency involved in bringing these two to justice, and I hope that these significant sentences serve as a stark warning to anyone who preys on children.”
“The sentencing of Hooks and Morris brings justice to two serial offenders who preyed on societies most vulnerable,” said HSI Special Agent in Charge Nick S. Annan. “Their self-described ‘Bonnie and Clyde’ crime spree included depraved acts of abuse and violence and would have undoubtedly continued without fantastic case work of the agents involved in this investigation.”
Homeland Security Investigations (HSI) Birmingham investigated the case, with the assistance of HSI Calexico, CA; HSI Las Cruces, NM; HSI El Paso, TX; Brawley Police Department, CA; Imperial County California District Attorney’s Office; U.S. Marshals Service Pacific Southwest Regional Fugitive Task Force, El Centro Division, CA; Chilton County Alabama Sheriff’s Office, and the Alabaster Police Department, AL.
Assistant United States Attorneys Hollie Reed and Russell Duraski, of the Middle District of Alabama, and Assistant United States Attorney R. Leann White, of the Northern District of Alabama prosecuted the case.
27 August 2019
West Warwick Man Charged with Distribution of FentanylRead the Press Release
PROVIDENCE – An information was filed in U.S. District Court in Providence today charging David Grimaldi, 23, of West Warwick, with distribution of fentanyl.
It is alleged in court documents that Nicholas Bateman, 27, of Rochester, Mass., ingested one half of one of three pills allegedly sold to him by Grimaldi on July 1, 2017, and quickly became unresponsive. He was pronounced dead a short time later at Kent Hospital.
A subsequent autopsy established the presence of alcohol and fentanyl in the blood of Bateman. The Rhode Island Medical Examiner determined that Bateman died as a result of the toxic effects of alcohol and fentanyl.
According to court documents, the three pills allegedly sold by Grimaldi to Bateman were manufactured to appear to be 30 mg. Oxycodone hydrochloride tablets. DEA forensic testing established the pills contained fentanyl.
According to a plea agreement filed in this matter, the government will argue at sentencing that the death of Nicholas Bateman resulted from the conduct of David Grimaldi.
The filing of an information charging David Grimaldi with distribution of fentanyl is announced by United States Attorney Aaron L. Weisman, West Warwick Police Chief Colonel Mark A. Knott, and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
An information is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Distribution of fentanyl is punishable by statutory penalties of up to 20 years imprisonment followed by lifetime supervised release, and a fine of $1,000,000.
Grimaldi will be arraigned in U.S. District Court on a date to be established by the Court.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The matter was investigated by the West Warwick Police Department and the Rhode Island DEA Drug Task Force.
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West Virginia Receives over $1.2 Million in STOP Formula Grant Program Funds from the Office on Violence Against WomenRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that the Office on Violence Against Women has awarded $1,255,509 in grant funds to the West Virginia Division of Justice and Community Services (DJCS).
The STOP (Services, Training, Officers, Prosecutors) Violence Against Women Formula Grant Program (STOP Formula Grant Program) was authorized by the Violence Against Women Act (VAWA) of 1994 and reauthorized by subsequent legislation. The STOP Formula Grant Program encourages partnerships between law enforcement, prosecution, courts, and victim services organizations to enhance victim safety and hold offenders accountable in cases of domestic violence, dating violence, sexual assault, and stalking. The goal of the grant program is to develop and strengthen law enforcement, prosecution, and court strategies to combat violent crimes against women and to develop and strengthen victim services, including community-based, culturally-specific services, in cases involving domestic violence, dating violence, sexual assault, and stalking.
“I’ve traveled throughout my District to personally meet with our STOP teams and convey my office’s commitment to prosecute cases of violence against women” said United States Attorney Mike Stuart. “The awarded grant funds are critical federal dollars that will support and enhance the important work of our STOP teams statewide.”
The West Virginia DJCS acts as the State Administering Agency (SAA) for this grant program.
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West Virginia Man Pleads Guilty to Distribution of MarijuanaRead the Press Release
HUNTINGTON, W.Va. – A West Virginia man pled guilty today to federal drug trafficking offenses, announced United States Attorney Mike Stuart. Tequan Montek Pratt, 24, pled guilty to two counts of distribution of marijuana before United States District Judge Robert C. Chambers. Stuart commended the investigation conducted by the Putnam County Narcotics Unit and the Violent Crime and Drug Task Force - West.
“Pratt trafficked at least 20 kilos of marijuana,” said United States Attorney Mike Stuart. “In this District, marijuana traffickers will be prosecuted just like any other drug trafficker.”
Pratt admitted that on March 29, 2018; March 30, 2018; and April 9, 2018, he sold a pound of marijuana to a confidential police informant at a duplex in Nitro, Putnam County, West Virginia. Pratt also admitted that he and his associates were trafficking the marijuana from cities throughout California for several months. Estimated conservatively, Pratt admitted to trafficking at least 20 kilograms of marijuana from California. The United States indicated its intention to prove at sentencing that Pratt also possessed a small arsenal of firearms and almost 800 MDMA pills at two other houses in Putnam County.
Pratt faces up to 10 years in prison when sentenced on December 2, 2019. Assistant United States Attorney Drew O. Inman is handling the prosecution.
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Warwick Man Charged with Interstate Travel to Engage in Sex with a Minor, Receipt of Child PornographyRead the Press Release
PROVIDENCE – A Warwick man who allegedly befriended a 15-year-old Hopkins, Michigan, girl on social media and allegedly helped her devise and execute a plan to run away from home and avoid being located or contacted by her parents has been charged in federal court in Providence with interstate travel to engage in sexual activity with a minor and receipt of child pornography.
Charles Morancey, 43, was arrested by Warwick Police on August 6, 2019, four days after he allegedly traveled to the girl’s home in Michigan, picked her up, and drove her to his residence in Rhode Island. It is alleged that Morancey engaged in illicit sexual activity with the 15 year-old on the way to Rhode Island and at his residence.
Morancey has been detained on Rhode Island State charges since his arrest.
It is alleged in court documents that Morancey and the 15 year-old began communicating via social media in mid-July. When the girl expressed that she was experiencing difficulties at home, it is alleged that Morancey helped her devise a plan to run away from home, prevent her parents from accessing her social media accounts, and avoid being contacted or located by them.
It is alleged the two exchanged sexually explicit comments through social media, and that the 15 year-old sent Morancey sexually explicit photographs.
According to court documents, on August 6, Allegan County Sherriff’s Department obtained an emergency search warrant for the then missing teen’s Instagram account, and determined that the girl had logged on to her account from an IP address in Rhode Island belonging to Morancey. The Allegan County Sherriff’s Department notified Warwick Police who went to Morancey’ s residence where they located the 15 year-old. The girl was escorted to Warwick Police headquarters. Later that afternoon, Morancey was located driving his vehicle, pulled over, and arrested.
Charges filed in U.S. District Court on Monday are announced by United States Attorney Aaron L. Weisman, Warwick Police Chief Colonel Rick Rathbun, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
United States Attorney Aaron L. Weisman acknowledges and thanks the Rhode Island Department of the Attorney General for their assistance to this Office prior to the filing of charges in U.S. District Court.
The matter was investigated by the Warwick Police Department, with the assistance of the FBI Child Exploitation Task Force and the Allegan County Sherriff’s Office.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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U.S. Attorney Announces Charges in Surge Against Violent Crime in HopkinsvilleRead the Press Release
HOPKINSVILLE, Ky. – United States Attorney Russell Coleman announced the formation of the Hopkinsville Gun Crimes Task Force, and the return of four felony indictments charging individuals with federal firearms violations, including possession of guns by convicted felons.
The charges continue to develop through ongoing partnerships with multiple local, state, and federal law enforcement agencies to maximize penalties for the most violent repeat offenders as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative. In Hopkinsville, this multi-agency effort includes the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Hopkinsville Police Department, and the Christian County Sheriff’s Office, and the Office of Christian County Commonwealth’s Attorney Rick Boling which have recently formed the Hopkinsville Gun Crimes Task Force.
“The increased gun violence here in Hopkinsville, to include the shooting of a police officer, is unacceptable,” said U.S. Attorney Russell Coleman. “I’m proud for federal law enforcement to participate in this new task force, the goal of which is to remove violent felons from Christian County for as long as the law allows. This round of indictments is only our first step; stay tuned.”
“ATF strives to be ‘no better partner’ in our efforts alongside Hopkinsville Police Department, Christian County Sheriff’s Office, the FBI and DEA as part of the Hopkinsville Gun Crimes Task Force,” said Tommy E. Estevan, ATF Assistant Special Agent, Louisville Field Division. “U.S. Attorney Coleman’s announcement reflects the value of utilizing multi-jurisdictional resources and crime gun intelligence to identify and investigate illicit gun traffickers, trigger pullers and other armed violent offenders. These efforts disrupt the shooting cycle and will reduce, prevent and solve violent gun crimes.”
Those charged in this first round of indictments include:
- Credall Hubbard, age 61, of Evansville, IN, is charged in a three count indictment with being a felon in possession of firearm: a Taurus, model PT145 Millennium Pro, .45 caliber semiautomatic pistol. Hubbard has previous felony convictions for second degree manslaughter, previously being a felon in possession of a handgun, bank robbery and assault by the use of a deadly weapon (aiding and abetting), and possession or use of a firearm during a crime of violence, each a felony. He also faces charges of felon in possession of a firearm, a Ruger AR-556, 5.56 millimeter semiautomatic rifle and a Ruger SR40, .40 caliber semiautomatic pistol. Hubbard faces a third count of possession of body armor by a violent felon.
- Jarontae L. Taylor, age 20, of Hopkinsville, KY, is charged with being a felon in possession of a firearm: a Glock 17, 9 millimeter semiautomatic pistol. Taylor was previously convicted of second-degree burglary.
- Tony D. Bowen, age 36, of Hopkinsville, KY, is charged with being a felon in possession of a firearm: a Glock 17, 9 millimeter semiautomatic pistol. Bowen was previously convicted three separate times for robbery and for aggravated assault.
- Ahgeana Bailey, age 25, of Cadiz, KY, is charged with being a felon in possession of a firearm: a FIE Corp. Titan Tiger .38 special caliber revolver. Bailey was previously convicted of possession of a handgun by a convicted felon and first-degree bail jumping.
The cases are being prosecuted by Assistant United States Attorneys Seth Hancock and Leigh Ann Dycus. The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Hopkinsville Police Department, Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Kentucky State Police, and the Christian County Sheriff’s Office, which comprise the Hopkinsville Gun Crimes Task Force, in cooperation with the Office of Christian County Commonwealth’s Attorney Rick Boling.
The U.S. Attorney’s Office is partnering with federal, state, and law enforcement to specifically identify the criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Today’s indictments are part of the Project Safe Neighborhoods program.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
- Credall Hubbard, age 61, of Evansville, IN, is charged in a three count indictment with being a felon in possession of firearm: a Taurus, model PT145 Millennium Pro, .45 caliber semiautomatic pistol. Hubbard has previous felony convictions for second degree manslaughter, previously being a felon in possession of a handgun, bank robbery and assault by the use of a deadly weapon (aiding and abetting), and possession or use of a firearm during a crime of violence, each a felony. He also faces charges of felon in possession of a firearm, a Ruger AR-556, 5.56 millimeter semiautomatic rifle and a Ruger SR40, .40 caliber semiautomatic pistol. Hubbard faces a third count of possession of body armor by a violent felon.
Two Charleston Women Sentenced to Federal Prison for Methamphetamine DistributionRead the Press Release
CHARLESTON, W.Va. – Two Charleston women were sentenced to federal prison for methamphetamine distribution, announced United States Attorney Mike Stuart. Miranda Brandon, 38, of Charleston was sentenced to 138 months in prison for aiding and abetting the distribution of methamphetamine and possession of a firearm in furtherance of drug trafficking. Sherry Gray, 57, of Charleston was sentenced to 109 months in prison for conspiracy to distribute methamphetamine. Brandon will also serve a term of at least five years of supervised release upon her release from prison, and Gray will serve a term of at least three years of supervised release.
“An incredible amount of meth and other drugs, and guns – all in a drug house on Charleston’s West Side,” said United States Attorney Mike Stuart. “Long prison sentences well earned.”
Brandon and Gray previously admitted that in August and September 2018 they delivered drugs and collected money at the direction of Eugene Calvin Wells. They also admitted helping Wells to distribute approximately six ounces of methamphetamine to an informant working for the Drug Enforcement Administration Task Force during several transactions occurring in Kanawha County. On September 28, 2018, the DEA executed a search warrant at Brandon and Gray’s residence on Ferguson Avenue in Charleston that Wells used to store and sell drugs. Agents seized more than 565 grams of heroin, 22 grams of fentanyl, 505 grams of methamphetamine, 600 grams of pentedrone, a synthetic controlled substance, three firearms and approximately $3,053. On the same day, DEA agents searched Wells’ residence in Akron, Ohio and seized more than 400 grams of heroin, seven firearms, and approximately $8,080. Wells pled guilty April 25, 2019 resolving federal charges brought both in the Southern District of West Virginia and in the Northern District of Ohio. He faces a mandatory ten years to life in prison when he is sentenced on October 7, 2019.
The DEA Task Force conducted the investigation. United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Joshua C. Hanks and former Assistant United States Attorney Matthew Davis handled the prosecution.
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Tonawanda Woman Going to Prison on Cocaine ConvictionRead 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 Iramarie Velez, 37, of Tonawanda, NY, who was convicted of attempted possession with intent to distribute cocaine, was sentenced to serve 12 months and one day in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on December 15, 2017, U.S. Postal inspectors seized a package, shipped from Puerto Rico, containing just over two kilograms of cocaine that was addressed to Iramarie Velez on Crane Place in Tonawanda, NY. The cocaine was replaced with sham cocaine, and then the package was delivered on December 28, 2017. After Velez accepted the package, she left the residence but returned a few minutes later with co-defendant Osvaldo Rivera-Amaro. Velez went back into the residence, came back out with the package, and placed it in the back of the Rivera-Amaro’s vehicle. Rivera-Amaro was subsequently detained, his vehicle was searched, and the package, containing the sham cocaine, was located in the trunk.
The sentencing is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Three Rochester Area Businesses to Pay Financial Penalties for Defrauding the Rochester Schools Modernization ProgramRead 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 the United States Attorney’s Office has filed charges against Journee Construction Inc., Bell Mechanical Contractors, and Kaplan Schmidt Electric in connection with the Government’s ongoing investigation into the improper use of “pass through” minority contractors on the Rochester Schools Modernization Program.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the felony information filed against each of the three defendants, between April 2013 and November 2013, the defendants conspired with contractors to defraud the Rochester Schools Modernization Program, a public-works project to renovate and improve school facilities in the City of Rochester. The defendants created and submitted required documentation that falsely and fraudulently represented that contractors hired for program projects had complied with the Diversity Plan established for the program. In truth and fact, the contractors had not complied, and did not intend to comply.
In addition to filing the charges, the government also entered into a deferred prosecution agreement (DPA) with each of the defendants. Pursuant to the DPAs, the government has requested that its prosecution of the charges against each defendant be stayed in order to afford each defendant the opportunity to comply with the terms and conditions of such DPA. Under the terms of their DPAs, each defendant must:
o Fully cooperate with the government’s investigation going forward; o Conduct its operations with respect to any disadvantaged business programs in compliance with all applicable laws and requirements for such programs; and o Pay a financial penalty: Journee Construction Inc. will pay $70,000; Bell Mechanical Contractors will pay $50,000; and Kaplan Schmidt Electric will pay $25,000.
Should the defendants successfully fulfill all of the terms and conditions of their DPAs with the government, the charges against them will be dismissed.“Disadvantaged Business Enterprise programs such as this are intended to helps businesses owned by minorities obtain work on federally funded construction projects,” said U.S Attorney Kennedy. “Those who defraud the program in order to obtain federal funds take advantage both of the taxpayers and the businesses that the program is designed to assist. This Office remains committed to exposing and holding accountable who pervert these programs to serve their own self-interests.”
The charges are the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Three Mexican Nationals Charged with Importing Significant Amounts of DrugsRead the Press Release
LAREDO, Texas – Two men and one woman have been indicted in three separate, but similar cases involving the importation of drugs into the country via various ports of entry, announced U.S. Attorney Ryan K. Patrick
Benjamin Gil Aguilera, 57, Jose Ramos-Delgadillo, 32, and Ariane Ramos-Piccone, 33, were each originally charged by criminal complaint. Today, the grand jury returned the respective indictments against them. They are expected to appear for an arraignment before U.S. Magistrate Judge Samuel S. Sheldon in the near future.
Aguilera is charged with conspiring with others to import approximately 1.5 tons of marijuana, while Ramos-Delgadillo and Ramos-Piccone allegedly imported 40 kilograms of methamphetamine and 53 kilograms of cocaine, respectively.
Benjamin Gil Aguilera is charged for his involvement in the importation of 3,152 pounds (1,430 kilograms) of marijuana into the United States. The charges against Aguilera allege he drove a semi-truck and trailer combination through the World Trade Bridge Port of Entry in Laredo Aug. 1, 2019. During inspection, a canine unit allegedly alerted to the presence of narcotics in the trailer of the vehicle. Authorities then observed anomalies with the trailer doors, according to the charges. After looking inside the trailer, the officers allegedly discovered tightly wrapped bundles containing more than 1,400 kilograms of marijuana.
In the Ramos-Delgadillo case, the criminal complaint alleges that on Aug. 4, 2019, he drove a Ford Escape and attempted to enter the United States at the Lincoln-Juarez Bridge Number 2 in Laredo. There, authorities allegedly discovered the tires of the vehicle contained 24 bundles of methamphetamine, weighing a total of 39.58 kilograms.
Finally, on Aug, 3, 2019, Ramos-Piccone allegedly arrived at the United States Border Patrol Check Point near Freer, driving a white Chevrolet Traverse. The complaint against her alleges that at that time, an inspection revealed anomalies within the seats of the vehicle. Authorities conducted a search and soon found 45 bundles of cocaine with a total combined weight of approximately 53 kilograms of cocaine, according to the charges.
If convicted, each faces up to life in prison and a potential $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the Aguilar and Ramos-Delgadillo cases with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison and Jennifer Day are prosecuting those respective cases.
The Drug Enforcement Administration conducted the Ramos-Piccone investigation with assistance from Border Patrol. Assistant U.S. Attorney Brandon Scott Bowling is prosecuting that case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Third Roommate Pleads Guilty to Inside Job Bank Heist and Admits to Two Other Bank RobberiesRead the Press Release
Assistant U. S. Attorney Matthew Brehm (619) 546-8983
NEWS RELEASE SUMMARY – August 27, 2019
SAN DIEGO – Aldo De Jesus Gomez today became the last of three roommates to plead guilty to bank robbery and other related charges, admitting that in one instance, the trio staged a robbery at a San Diego Bank where one of the roomates worked as a teller.
Gomez pleaded guilty in federal court before U.S. Magistrate Judge Jill Burkhardt to an information charging him with Bank Robbery and Entering a Bank to Commit Larceny. Gomez and his roommates were convicted of stealing $23,070 from the Chase Bank in Mission Valley, where they pulled off an inside job with the roommate as teller. Gomez is scheduled to be sentenced on November 19 at 10:30 a.m. by U.S. District Judge Barry Ted Moskowitz.
Gomez admitted in his plea agreement that he, Jesus Ramon Garcia-Lopez, and Joe Anthony Mares researched, planned, and entered into an agreement to steal money from the Chase Bank located at 5111 Mission Center Road in San Diego, where Garcia was a teller. They recruited a fourth individual, known to them as “Spill Will,” to serve as the getaway driver. Pursuant to their plan, Mares wrote a demand note, which read, “Give me all the money in both top and bottom drawer or someone in the lobby dies give me 30 mins before alerting anyone or I will be back and shoot people right away,” and provided it along with his clothing to Gomez.
On June 6, 2018, at approximately 10:00 a.m., Gomez entered the Chase Bank branch wearing Mares’ clothing, approached Garcia’s teller window, and passed him the demand note Mares had written, all pursuant to the plan. Garcia took the demand note and passed Gomez approximately $23,070 in cash. Gomez took the cash, left the bank, and was driven away by Spill Will. Afterwards, Gomez admitted he provided Mares and Garcia with a portion of the stolen cash and kept more than $10,000 for himself. The weekend after the theft, Gomez, Mares, and Garcia went to clubs in Mexicali, Mexico and partied together, with Gomez paying their expenses.
Gomez further admitted that, on July 13, 2018, he entered a Chase Bank in Fairfield, California, a city in Northern California, midway between Sacramento and San Francisco, and approached a teller. Gomez handed her a demand note that instructed the teller to hand him money and took $5,000 in cash from her.
Gomez also admitted that, on September 15, 2018, he entered the Chase Bank located at 2303 N. Cottonwood Drive in Imperial, California, and approached a teller. He handed her a demand note that instructed the teller to hand him money in $100, $50, and $20 denominations, and warned the teller not to alert anyone or she would get hurt. The teller provided the defendant with $3,100 in cash and Gomez fled the bank.
“We are always working with federal and local law enforcement agencies, from San Diego to Imperial Valley to the Bay Area and points beyond, to bring serial criminals to justice,” said U.S. Attorney Robert Brewer. “There was no place this defendant could have fled to escape our coordinated efforts and now his cross-state crime spree has come to an end.”
“Since June 2018, the defendant embarked on a crime spree to fund his lifestyle,” said FBI Special Agent-In-Charge Scott Brunner. “Despite the distance between these individual crimes, investigators connected the cases. Today, Gomez has been brought to justice and is off the streets as a result of significant teamwork between the San Diego FBI Violent Crime Task Force and our law enforcement partners.”
“The successful conclusion of this case was due to coordinated and ongoing teamwork between the SDPD Robbery Unit, the FBI, and the Violent Crime and Human Trafficking Section (VCHT), said San Diego Police Lt. Julie Epperson. “Collaboration with our law enforcement partners creates a stronger defense against criminals who prey on the public.”
“This case is a testament to the collaboration and incredible working relationship of all the involved law enforcement agencies and the United States Attorney’s Office that worked together to help bring those responsible in this case to justice,” said El Centro Police Chief Brian Johnson. “Our communities are safer because of the great work of the VCHT and local law enforcement agencies that worked tirelessly to solve these cases. A tremendous thank you goes out to all involved.”
Garcia-Lopez and Mares were sentenced earlier this year for their roles in the Mission Valley Chase Bank theft.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert Brewer, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
DEFENDANTS Case Number 19cr1321-BTM
Aldo De Jesus Gomez Age: 22 San Diego, CA
Related Case - Case Number 18cr4349-BTM
Joe Anthony Mares Age: 22 El Cajon, CA
Jesus Ramon Garcia-Lopez Age: 21 Yuma, AZ
SUMMARY OF CHARGES
Bank Robbery – Title 18, U.S.C., Section 2113(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Entering a Bank to Commit Larceny – Title 18, U.S.C., Section 2113(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigations
San Diego Police Department
El Centro Police Department
Imperial Police Department
Fairfield Police Department
Stewartstown Man Pleads Guilty to Distribution of SuboxoneRead the Press Release
CONCORD - Brian D. Rancourt, 44, of Stewartstown, pleaded guilty in federal court to distribution of Suboxone, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on August 1, 2018, Rancourt sold Suboxone in Stewartstown to an individual who was cooperating with law enforcement officers.
Rancourt is scheduled to be sentenced on December 2, 2019.
“The opioid crisis has been fueled, in part, by those who divert and misuse prescription opioids,” said U.S. Attorney Murray. “Those who engage in criminal conduct by selling or diverting opioid medications are endangering public health and will be prosecuted aggressively.”
This matter was investigated by the DEA, with assistance from the Colebrook Police Department, the New Hampshire State Police, U.S. Customs and Border Protection, the Coos County Sheriff's Office, the New Hampshire Liquor Commission’s Division of Enforcement and Licensing, and the New Hampshire Attorney General's Office. The case is being prosecuted by Assistant United States Attorneys Charles Rombeau and John S. Davis.
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Steubenville man admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Robert Leon Sullivan, of Steubenville, Ohio, has admitted to a cocaine, crack cocaine, heroin, and fentanyl distribution operation, United States Attorney Bill Powell announced.
Sullivan, age 55, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl.” Sullivan admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.Sullivan faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
South Carolina Man Indicted for Running $1.1 Million Foreign Currency Ponzi SchemeRead the Press Release
NEWARK, N.J. – A South Carolina man was indicted today on charges that he defrauded at least 20 people by soliciting investments in a phony foreign currency trading scheme, Attorney for the United States Rachael Honig announced.
Thomas Lanzana, 51, of Pawleys Island, South Carolina, and formerly of New Jersey, was charged by indictment with two counts of wire fraud and one count of commodities fraud. He was previously charged with the same offenses by criminal complaint on Aug. 10, 2018.
According to documents filed in this case and statements made in court:
From at least 2013, Lanzana solicited approximately $1.1 million from at least 45 customers to invest in what he claimed were highly successful, algorithm-based trading pools in foreign currency derivatives (forex) and other financial instruments. He misrepresented to prospective customers that he was a successful forex trader when he was not. To keep his customers’ trust, Lanzana sent them false account statements, posted false monthly account statements to his companies’ websites showing balances – some in excess of $800,000 – for forex trading accounts that did not exist, and sent false tax documents to customers reporting earnings that did not exist.
Lanzana misappropriated at least $350,000 in customer funds, using some to repay earlier investors in the manner of a Ponzi scheme, and to pay for his personal expenses, including purchases on Amazon.com, payments to a luxury car dealer and a jewelry retailer, and golf expenses.
The counts of wire fraud with which Lanzana is charged carry a maximum potential penalty of 30 years in prison and a fine of $1 million. The count of commodities fraud carries a maximum potential penalty of 10 years in prison and a fine of $1 million, or twice the gross gain or loss.
Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s indictment. She also thanked the U.S. Commodity Futures Trading Commission’s Division of Enforcement for its role in the investigation.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Office’s Cyber Crime Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Source of Firearms for Violent Chicago Gang Sentenced to 4 Years in PrisonRead the Press Release
CHICAGO — A federal judge today sentenced a Chicago man to four years in prison for unlawfully supplying guns to a violent street gang.
From February 2015 to May 2016, ANTHONY MORGAN directed and paid for an acquaintance to purchase at least seven guns in New Mexico. The weapons were shipped through the mail to Morgan’s residence in Chicago. Morgan then supplied some of the guns to members of his violent street gang on the city’s South Side. Law enforcement later tied two of the firearms to homicides, including the November 2015 murder of 9-year-old Tyshawn Lee in Chicago’s Auburn Gresham neighborhood.
Morgan, 32, pleaded guilty earlier this year to a federal firearms conspiracy charge. U.S. District Judge Charles R. Norgle imposed the 48-month sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Eddie Johnson, Superintendent of the Chicago Police Department. Substantial assistance was provided by the U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General.
During the investigation, law enforcement utilized ATF’s National Integrated Ballistic Information Network. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.
Holding firearms traffickers accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally traffic firearms.
Evidence in the case revealed that Morgan directed his acquaintance in New Mexico to purchase the guns in four separate transactions. Of the seven guns Morgan received, two were linked to murders, one was linked to a shooting that left two people wounded, and another was recovered in Morgan’s vehicle after CPD responded to an emergency call of shots fired on the Fourth of July 2017. In addition to the murder of Tyshawn Lee, the other fatality connected to one of Morgan’s guns involved the murder of a man on Chicago’s North Side in January 2016.
“This is a case study in how illegal guns flood this district and terrorize our community,” Assistant U.S. Attorney James P. Durkin argued in the government’s sentencing memorandum. “Illegal firearms are the lifeblood of violent crime in this city, and they need to be treated as such.”
Shrewsbury Man Charged with Assaulting Probation Office EmployeeRead the Press Release
BOSTON - A Shrewsbury man was charged with assaulting an employee of the United States Probation Office for the District of Massachusetts.
Daniel Frederickson, 30, was charged on August 26, 2019 by criminal complaint with assaulting a federal employee and causing bodily injury.
According to the criminal complaint, Frederickson went to the U.S. Probation Office in Worcester on August 20, 2019, for his regularly scheduled drug test. While Frederickson was in the bathroom, the victim came in to ask Frederickson if he required water. Without warning, Frederickson allegedly punched the victim and wrapped both hands around the victim’s neck. Frederickson then threw the victim against the wall and after the victim fell, mounted the victim. Frederickson allegedly continued to choke the victim and repeatedly slammed his head against the ground. The assault was interrupted by another Probation Office employee.
The assault of a federal employee charge carries an enhanced penalty if the assault results in bodily injury. The enhanced penalty includes a term of imprisonment of up to 20 years, up to three years of supervised release and a fine of $250,000. Sentences imposed by a federal district court judge are based upon the U.S. Sentencing Guidelines and other statutory factors.United States Attorney Andrew E. Lelling; Joseph Bonavolonta, Special Agent in Charge Federal Bureau of Investigation, Boston Field Office; and Chief Steven Sargent of the Worcester Police Department made the announcement. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sex Offender Sentenced to 15 Months ImprisonmentRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant TIMOTHY ROKE CEPEDA was sentenced in the United States District Court of Guam to 15 months imprisonment and five years of supervised release. This sentence follows Cepeda’s guilty plea on May 21, 2019, to Failure to Register as a Sex Offender, in violation of 18 U.S.C. § 2250. Cepeda was also ordered to attend a Sex Offender Treatment Program at the Bureau of Prisons. Upon release, he must register with the Sex Offender Registry in any jurisdiction where he lives, works or attends school. The Court also authorized probation officers to search any of his electronic devices. In addition, Cepeda is prohibited from employment that would place him in direct contact with minors.
The U.S. Attorney reminds defendants who have committed sexual offenses that, under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam and reside on island must inform the Guam Sex Offender Registry where they reside, work or attend school. They must also periodically update their registration information. The Sex Offender Registry was created in an effort to protect the public and potential victims, prevent further victimization, and inform the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at the website for the Judiciary of Guam. www.guamcourts.org (link is external). The Department of Justice also funds the Dru Sjodin National Sex Offender Public Website (NSOPW) mobile application, which provides free access to sex offender data nationwide.
U.S. Attorney Anderson noted that this prosecution was part of the Department of Justice’s Project Safe Childhood (PSC) initiative, a nationwide commitment to aggressively prosecute sexual predators who victimize children and adults, possess or receive child pornography, and otherwise fail to register with a Sex Offender Registry.
The U.S. Marshals Service conducted the investigation. The case was prosecuted by Rosetta L. San Nicolas, an Assistant United States Attorney in the District of Guam.
Serial Robber Sentenced to 7 YearsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Aaron Stanley, 35, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to seven years in federal prison for robbing four businesses, one while armed. Stanley pleaded guilty to these charges on June 17, 2019. His prison term will be followed by a four-year period of supervised release.
On December 24, 2018, Stanley robbed a Speedway gas station on Monona Drive, Monona, while armed. On December 30, 2018, he robbed a Mobil gas station on Cottage Grove Road, Madison. On January 9, 2019, he robbed another Speedway gas station on Lake Road, Windsor. Finally, on January 15, 2019, he robbed a Papa Murphy’s restaurant on East Broadway, Monona.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Stanley were the result of an investigation conducted by the Monona Police Department, the Madison Police Department and the Dane County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Queens Middle School Teacher Charged with Possession of Child PornographyRead the Press Release
The defendant Eric Paulino was arrested today on a complaint charging him with possession of child pornography. Paulino made his initial appearance this afternoon before United States Magistrate Judge James Orenstein in federal court in Brooklyn, and was released on a $250,000 bond.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, announced the arrest.
“Paulino, while employed in a position of trust as a New York City school teacher, purchased child pornography on the Internet, contributing to the abuse and victimization of children,” stated United States Attorney Donoghue. “Prosecuting those who feed the market for child pornography, whether producers or consumers, will always be a priority of this Office and our law enforcement partners.”
“Teachers are trusted by parents to protect and educate their children, which makes the thought of a teacher allegedly downloading illegal child pornography all that more disturbing,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Child Exploitation and Human Trafficking Task Force works every day to stop predators from exploiting children, and further victimizing those exposed to hands on offenders who create images shared on the internet.”
According to the complaint and statements made in court, Paulino, a teacher at a Queens middle school, purchased child pornography using a mobile payment service. Today, during a court-authorized search of Paulino’s residence, the defendant admitted to downloading and trading child pornography on his mobile phone. Paulino provided FBI special agents with his iPhone and the password for the device. A search of Paulino’s phone revealed numerous images and videos of children engaged in sexually explicit conduct.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, 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.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution.
The Defendant:
ERIC PAULINO
Age: 30
Ridgewood, QueensE.D.N.Y. Docket No. 19-MJ-767
Prolific Philadelphia Illegal Firearms Trafficker Convicted at TrialRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Kenneth Eugene Cherry, Jr., 31, of Philadelphia was convicted at trial of multiple criminal firearms offenses: dealing in firearms without a license, possession and transfer of a machine gun, possession of an unregistered firearm, possession of a firearm with an obliterated serial number, and multiple counts of possession of a firearm by a convicted felon.
From August 2018 until February 2019, Cherry and other co-conspirators trafficked firearms from Virginia to Philadelphia, where Cherry illegally sold them on the street for profit. During this period, Cherry sold a total of 26 firearms to an undercover ATF operative, including two Glock “Auto Sear” machinegun conversion devices, sixteen semiautomatic handguns, and eight semiautomatic assault rifles, one of which had been cut down for purposes of concealment. Cherry also provided a large amount of ammunition with the firearms he sold.
“The defendant and others in this illegal gun trafficking organization endangered everyone in their midst on a daily basis by putting semiautomatic weapons on the streets illegally,” said U.S. Attorney McSwain. “Thanks to our dedicated partners at ATF and our Office’s trial team, the defendant will now pay for his crimes and will no longer be allowed to menace the Philadelphia streets.”
“The conviction of Mr. Cherry is a victory not only for ATF but for the citizens of Philadelphia as this conviction exhibits a continued and collaborative effort to combat violent crime in our community,” said Donald Robinson, Special Agent in Charge for ATF Philadelphia Field Division. “Together with our partners at the Philadelphia Police Department and the United States Attorney’s Office, we have been successful at dismantling a group dedicated to firearms trafficking in Philadelphia. ATF remains committed to working with our partners to combat violent crime by continuing to target firearms traffickers who are putting illegal guns out on our streets.”
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.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms, and is being prosecuted by Assistant United States Attorney Mark S. Miller.
Physicians and Cardiac Center Agree to Pay Total of more than $1.1 Million to Resolve Allegations that They Received Kickbacks from Northwest Medical Testing CompanyRead the Press Release
Three doctors and one medical practice entered into settlements with the U.S. Department of Justice to resolve allegations that they referred patients for genetic testing in exchange for kickbacks from a Seattle-area testing company, announced U.S. Attorney Brian T. Moran. The physicians, Dr. Gregory Sampognaro of Monroe, Louisiana, Dr. Warren Strickland and Dr. Isabella Strickland of Huntsville, Alabama and a cardiac center, Cardiology P.C. of Birmingham, Alabama, have agreed to pay a total of more than $1.1 million to resolve the allegations.
“Providers who line their pockets by ordering unnecessary tests increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said U.S. Attorney Brian T. Moran. “The government will continue to hold accountable medical professionals who undermine our healthcare system by accepting illegal kickbacks.”
According to the settlement agreements, between 2012 and 2013 the doctors and cardiac center were alleged to have accepted payments from now-defunct testing company Natural Molecular Testing Corporation (NMTC) in return for ordering genetic tests from NMTC, which NMTC then billed to Medicare. The scheme was alleged to be in violation of the Anti-Kickback Statute and the civil False Claims Act.
The providers have agreed to pay a total of more than $1.1 million. Specifically, Dr. Gregory Sampognaro will pay $519,750, Dr. Warren Strickland will pay $95,053, Dr. Isabella Strickland will pay $107,900, and Cardiology P.C. will pay $411,300 to resolve the government’s allegations. The claims resolved by the settlement are allegations only; there has been no determination of liability.
“Patients, taxpayers, and Federal health care programs are all victimized when providers work in exchange for kickbacks– as the government contended in this case,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to hold such providers accountable.”
NMTC declared bankruptcy in 2013. The Centers for Medicare and Medicaid Services has an unsecured claim against NMTC for $70 million, but has little chance of recovering those funds as there are few remaining assets.
The matter was investigated by the Department of Health and Human Services Office of Inspector General (HHS-OIG). The settlements were negotiated by Assistant United States Attorneys Kayla Stahman and Ashley Burns.
Philadelphia Woman Arrested in $100 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – An investment fund manager was arrested today in connection with an alleged $100 million securities fraud scheme, U.S. Attorney Craig Carpenito announced.
Brenda Smith, 59, of Philadelphia, Pennsylvania, is charged by complaint with four counts of wire fraud and one count of securities fraud. Smith was arrested in Philadelphia and is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
From February 2016 to August 2019, Smith allegedly orchestrated a scheme using her investment fund, Broad Reach Capital, in which she lied to investors about the assets and performance of the fund and falsely stated that she would invest their funds in particular trading strategies. Smith collected more than $100 million in investments. Instead of investing the money as she promised, she diverted millions of dollars of investor funds out of Broad Reach Capital for other purposes, including paying other investors. When confronted with redemption requests by several large investors in Broad Reach Capital, Smith failed to honor the redemption requests and lied about the status of their investment and the fund.
In one instance, Smith allegedly induced Victim 1 to invest in Broad Reach Capital, telling Victim 1 that it was a trade-focused investment fund that employed particular trading strategies. Smith provided a one-page summary “tear sheet” about Broad Reach Capital that contained purported historical performance information, including a claim that the fund had a 1.76 percent return in February 2018. In reality, Broad Reach Capital’s brokerage accounts lost approximately 50 percent of their value in February 2018. Smith also told Victim 1 that the assets of Broad Reach Capital were tens of millions of dollars higher than they actually were. Victim 1 invested millions of dollars. Smith did not invest Victim 1’s money in the trading strategies as promised, but instead transferred Victim 1’s money to non-Broad Reach Capital bank accounts that Smith controlled and paid other investors with Victim 1’s money. Victim 1 eventually made a redemption request for more than $46 million. Smith failed to pay any portion of the redemption request, providing a series of shifting false excuses and explanations for the lack of redemption.
The wire fraud counts are each punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The securities fraud count is punishable by a maximum of 20 years in prison and a fine of $5 million.
U.S. Attorney Carpenito credited special agents of the FBI Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s charges. He also thanked the U.S. Securities and Exchange Commission’s Philadelphia Regional Office, under the direction of Director G. Jeffrey Boujoukos, for its assistance.
The government is represented by Senior Trial Counsel Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Sentenced for Transporting Stolen Electronics Across State LinesRead the Press Release
BOSTON – A Pennsylvania man was sentenced yesterday in federal court in Worcester for his involvement in a series of burglaries and attempted burglaries of Target retail stores, including two in Massachusetts.
Elijah Aiken, 36, of Allentown, Pennsylvania was sentenced by U.S. District Court Judge Timothy S. Hillman to 15 months in prison, followed by two years of supervised release. Aiken was also ordered to make restitution to Target in the amount of $194,539. In May 2019, Aiken pleaded guilty to one count of conspiring to transport stolen goods in interstate commerce and two counts of interstate transportation of stolen goods.
From December 2014 until February 2015, Aiken conspired with his brother Akbar Aiken, and others, to break into numerous Target retail stores during early morning hours, usually by using portable blow torches to cut through the metal loading dock doors at the rear of the stores. Once inside, Aiken and his co-conspirators stole electronic devices valued at hundreds of thousands of dollars, including cellular phones and computer tablets. Aiken transported the stolen electronics across state lines in order to sell them to buyers in New York. Aiken and his co-conspirators burglarized Target stores in Easton and Westborough, Massachusetts, as well as in Pennsylvania and Connecticut. During that same time period, he also attempted to break into Target stores in New Hampshire, New Jersey and Pennsylvania. Aiken was arrested in 2015 after an unsuccessful attempted burglary at a Target store in Southington, Connecticut.
United States Attorney Andrew E. Lelling and Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistance was also provided by the Westborough and Easton police departments, the Torrington, Connecticut and Southington, Connecticut police departments and the Pennsylvania State Police. The case was prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office.Pahokee Resident Sentenced to More than Eight Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Jonathan Demario Collins, 33, of Pahokee, Florida was sentenced yesterday by U.S. District Judge Robin L. Rosenberg to 100 months in prison, to be followed by 3 years of supervised release, after having been convicted by a trial jury of being a felon in possession of a firearm (Case No. 17cr80084).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO) made the announcement.
According to the court record, including the indictment, case filings and evidence presented at trial, on February 7, 2016, Collins was arrested during a traffic stop on an arrest warrant for attempted first-degree murder, aggravated assault with a firearm and simple battery, in a Palm Beach County case.
The arrest was made by agents of the PBSO Tactical Unit, each of whom had been sworn in as ATF Task Force Officers. While PBSO tactical agents were conducting surveillance in Pahokee, they observed Collins exiting an apartment and entering the rear seat of a red Nissan Altima. Agents initiated a traffic stop and then removed Collins from the vehicle and placed him under arrest. A loaded, .40 caliber semi-automatic pistol was observed in the vehicle, near where Collins' was sitting. Law enforcement obtained a search warrant for the vehicle and recovered the pistol. DNA was collected from the firearm. An analysis confirmed that Collins’ DNA was located on the pistol. At the time of his arrest, Collins was a convicted felon and was prohibited from possessing a firearm.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated 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.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and PBSO’s Tactical Unit in this matter. The case was prosecuted by Assistant U.S. Attorney John C. McMillan.
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 http://pacer.flsd.uscourts.gov.
Ohio County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – David E. Beazel, of Triadelphia, West Virginia, has admitted to a firearms violation, United States Attorney Bill Powell announced.
Beazel, age 49, pled guilty to one count of “Unlawful Possession of a Firearm.” Beazel, a person prohibited from having a firearm, admitted to having three rifles, a shotgun, a pistol and a revolver in June 2017 in Ohio County.Beazel faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Ohio County Sheriff’s Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Oakland Man Sentenced to over Seven Years for Pharmacy RobberyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Michael E. Algiere, 33, of Oakland, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to 85 months in prison and three years of supervised release for interfering with commerce by robbery. Algiere pleaded guilty on April 24, 2019.
Court records reveal that on October 31, 2007, the defendant entered the Oakland Pharmacy in Oakland wearing a black ski mask, a hooded sweatshirt, and camouflage gloves. He went to the pharmacy counter holding a knife and demanded oxycodone from the pharmacist. The defendant absconded with several bottles of Roxicodone, Oxycontin, and Percocet.
The Maine State Police Crime Laboratory (MSPCL) found DNA on a ski mask and knife recovered by police at and near the robbery scene, loaded the DNA profile into the Combined DNA Index System (“CODIS”), but could not match it to a known offender profile in 2007. CODIS is a criminal justice database that contains DNA profiles of convicted offenders and arrestees. Because participating forensic laboratories regularly add DNA profiles to CODIS, the MSPCL routinely compares unknown profiles from unsolved cases against the known profiles in CODIS. In February 2017, a CODIS comparison revealed that the DNA obtained from the ski mask and knife matched DNA collected from the defendant. The DNA match was confirmed after federal investigators collected a sample of the defendant’s DNA.
The case was investigated by the Oakland Police Department, the FBI, and the MSPCL.
O.C. Physician Assistant Arrested on Federal Charges Alleging He Wrote Opioid Prescriptions to Drug Dealers without Medical NeedRead the Press Release
SANTA ANA, California – A physician assistant who practiced at a Fountain Valley clinic was arrested today on an 11-count federal grand jury indictment charging him with conspiring to issue prescriptions for the highly addictive opioid painkiller oxycodone, without a medical purpose, to drug dealers in exchange for cash, knowing the drugs would be sold on the street.
Raif Wadie Iskander, 53, of Ladera Ranch, was arrested at his residence this morning. He is scheduled to make his initial court appearance this afternoon and he also will be arraigned on the charges in United States District Court in Santa Ana.
According to the indictment, from October 2018 until April 2019, Iskander wrote prescriptions for “patients” he had never met or examined, including an undercover law enforcement officer. Iskander allegedly provided to drug brokers multiple paper prescriptions that he had signed, but with the patient names left blank, to be filled in by the drug brokers later.
In exchange for cash, Iskander wrote fraudulent oxycodone prescriptions to co-defendants Johnny Gilbert Alvarez, 39, a.k.a. “M.J.,” of Santa Ana, and Adam Anton Roggero, 36, of Costa Mesa, who sold the prescribed drugs on the street as well as to an undercover officer, the indictment alleges.
All three defendants have been charged with one count of conspiracy. Iskander also has been charged with two counts of intentionally distributing oxycodone without a medical purpose. In addition to the conspiracy charge, Alvarez faces felony counts of illegally distributing methamphetamine, fentanyl, and oxycodone. Roggero also has been charged with two felony drug distribution counts.
If convicted of all charges, Iskander would face a statutory maximum sentence of 60 years in federal prison. Alvarez would face a statutory maximum sentence of life in prison and a mandatory minimum sentence of 10 years’ imprisonment. Roggero would face a statutory maximum sentence of 60 years in prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the Drug Enforcement Administration, the Costa Mesa Police Department, and the California Department of Health Care Services.
This case is being prosecuted by Assistant United States Attorney Rosalind Wang of the Santa Ana Branch Office.
North Carolina Office Manager Sentenced to Prison for Employment Tax FraudRead the Press Release
A New London, North Carolina, woman was sentenced to 14 months in prison today for federal employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents, from approximately 1992 through at least September 2016, Terra Ferguson was employed as an office manager at a pediatric office in Randolph County, North Carolina. As office manager, Ferguson had complete control over the office’s finances. Ferguson was also responsible for collecting, accounting for, and paying over to the Internal Revenue Service (IRS) payroll taxes that were withheld from the wages of the business’ employees. From March 2011 through September 2016, Ferguson withheld approximately $78,937 in payroll taxes from employee paychecks and willfully failed to pay that money to the IRS. Ferguson also failed to pay $35,472 for the employer’s share of employment taxes. Instead of paying these taxes to the IRS, Ferguson paid her personal credit card bills, funded personal business ventures involving a mountain cabin rental and a bar, paid for personal vacations, and issued checks to herself totaling $1.4 million, all from the business’ bank account.
Additionally, Ferguson prepared false individual income tax returns for her employer that falsely underreported gross receipts and inflated mortgage interest deductions, causing an additional tax loss of over $250,000. The total tax loss resulting from Ferguson’s fraudulent conduct is approximately $374,101.
On May 17, 2019, Ferguson pleaded guilty to one count of failing to collect, account for, or pay over payroll taxes for the employment tax quarter ending Dec. 31, 2015.
In addition to the term of imprisonment imposed, Ferguson was ordered to serve three years of supervised release and to pay $374,101 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mara Strier and Alexander Effendi of the Tax Division and Assistant United States Attorney Frank Chut, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Office Manager Sentenced to Prison for Employment Tax FraudRead the Press Release
WASHINGTON – A New London, North Carolina, woman was sentenced to 14 months in prison today for federal employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents, from approximately 1992 through at least September 2016, Terra Ferguson was employed as an office manager at a pediatric office in Randolph County, North Carolina. As office manager, Ferguson had complete control over the office’s finances. Ferguson was also responsible for collecting, accounting for, and paying over to the Internal Revenue Service (IRS) payroll taxes that were withheld from the wages of the business’ employees. From March 2011 through September 2016, Ferguson withheld approximately $78,937 in payroll taxes from employee paychecks and willfully failed to pay that money to the IRS. Ferguson also failed to pay $35,472 for the employer’s share of employment taxes. Instead of paying these taxes to the IRS, Ferguson paid her personal credit card bills, funded personal business ventures involving a mountain cabin rental and a bar, paid for personal vacations, and issued checks to herself totaling $1.4 million, all from the business’ bank account.
Additionally, Ferguson prepared false individual income tax returns for her employer that falsely underreported gross receipts and inflated mortgage interest deductions, causing an additional tax loss of over $250,000. The total tax loss resulting from Ferguson’s fraudulent conduct is approximately $374,101.
On May 17, 2019, Ferguson pleaded guilty to one count of failing to collect, account for, or pay over payroll taxes for the employment tax quarter ending Dec. 31, 2015.
In addition to the term of imprisonment imposed, Ferguson was ordered to serve three years of supervised release and to pay $374,101 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mara Strier and Alexander Effendi of the Tax Division and Assistant United States Attorney Frank Chut, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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New Castle Woman Defrauded Social SecurityRead the Press Release
PITTSBURGH, Pa. - A resident of New Castle, PA, pleaded guilty in federal court to charges related to Social Security fraud, United States Attorney Scott W. Brady announced today.
Shawna Stelter, 37, pleaded guilty to three counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that, when applying for and receiving Supplemental Security Income ("SSI") Benefits, Stelter failed to disclose that her husband was part of her household, and, as a result, received $26,917.55 in Supplemental Security Income benefits to which she knew she was not entitled, from June of 2014 to September of 2016. The court was further informed that Stelter made a false statement on her Redetermination Summary October 30, 2014, when she further claimed that her husband was not part of her household, and that her household only consisted of herself and her two children.
Judge Horan scheduled sentencing for Dec. 17, 2019. The law provides for a total sentence of 20 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Stelter remains on bond pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Social Security Administration, Office of the Inspector General conducted the investigation leading to prosecution of Stelter.
Monongalia County woman admits to role in cocaine and heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Teisha Primm, of Morgantown, West Virginia, has admitted to her involvement in a cocaine and heroin distribution operation, United States Attorney Bill Powell announced.
Primm, age 30, pled guilty to one count of “Aiding and Abetting in the Distribution of Heroin within 1000 Feet of a Protected Location.” Primm admitted to selling heroin near West Virginia University in July 2018 in Monongalia County.Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Michigan Man Sentenced to 54 Months in Scheme to Acquire Cell PhonesRead the Press Release
United States Attorney Joe Kelly announced today that Gage Davis, 37, of Detroit, Michigan, was sentenced Monday in federal court in Omaha, Nebraska, for identity theft and the fraudulent use of Social Security numbers to obtain cell phones from retail outlets in Central Nebraska. Senior United States District Judge Laurie Smith Camp sentenced Davis to 54 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a three-year term of supervised release and pay restitution in the sum of $22,126.
From December 2017 through June 2018, Gage and another used stolen identifications of credit worthy individuals to purchase high-end cellphones at retail stores in Kearney, Holdrege, Norfolk, Beatrice, Columbus, Grand Island, Hastings, Ainsworth and O’Neill, Nebraska. Gage provided counterfeit driver’s licenses and Social Security numbers belonging to actual people to stores to qualify for credit. He was arrested on June 1, 2018, at the U.S. Cellular store in Ainsworth. Counterfeit identification documents were found in his car.
This case was investigated by the Federal Bureau of Investigation, the Social Security Administration - Office of Inspector General, the Nebraska States Patrol, Sheriff’s Offices of Brown County and Holt County Nebraska and the Police Departments in Lexington, Kearney, Holdrege, Norfolk, Beatrice, Columbus, Grand Island and Hastings.
Mexican National Who Has Been Removed from the U.S. 5 Times Charged with Illegal ReentryRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on August 13, 2019, a federal grand jury in New Haven returned an indictment charging ARMANDO MACHORRO-ROJAS, 42, a citizen of Mexico last residing in Norwalk, with one count of illegally reentering the U.S. after being deported.
Machorro-Rojas appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charge.
As alleged in court documents and statements made in court, on two occasions in March 2007, Machorro-Rojas had encounters with U.S. Border Patrol that resulted in his voluntary to Mexico. On March 23, 2012, Machorro Rojas was arrested by Norwalk Police and charged with operating a vehicle without a license. On April 26, 2012, he was deported from the U.S. to Mexico.
It is further alleged that, on March 29, 2015, Machorro-Rojas was encountered by U.S. Border Patrol near Bisbee, Arizona. On April 15, 2015, he was again removed to Mexico.
It is further alleged that, on June 6, 2015, Machorro-Rojas was encountered by U.S. Border Patrol near Santa Teresa, New Mexico. He was subsequently charged in the District of New Mexico with one count of reentry of a removed alien. He pleaded guilty to the offense, was sentenced to time served and, on July 10, 2015, was removed to Mexico.
On May 31, 2019, Machorro-Rojas was arrested by Norwalk Police and charged with burglary in the third degree, risk of injury, larceny in the third degree, breach of peace in the second degree, and interfering/resisting arrest. It is alleged that an immigration detainer that was lodged with the state authorities was not honored, and Machorro-Rojas was released on bond on July 5.
Machorro-Rojas has been detained since August 9, 2019, after he was arrested by Immigration and Customs Enforcement officers.
If convicted of the charge of illegal reentry, Machorro-Rojas faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Member of Montgomery Drug Trafficking Organization Convicted of Conspiracy, Drug, and Gun ChargesRead the Press Release
Montgomery, Alabama – On Friday, August 23, 2019, Cyrus Phyfier, a 51-year-old resident of Montgomery, was found guilty on multiple drug and firearm related charges, announced United States Attorney Louis V. Franklin, Sr. A federal jury convicted Phyfier of all ten counts in his indictment after a weeklong trial.
Evidence presented at trial showed that Phyfier was a member of a drug trafficking organization that distributed large amounts of illegal drugs in Montgomery starting sometime in 2013 and continuing through January 2016. Specifically, Phyfier was convicted of conspiracy to distribute and possession with intent to distribute powder cocaine, crack cocaine, and marijuana; possession of a controlled substance with intent to distribute; being a felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking crime. The other charged members of the conspiracy previously pled guilty in federal court.
Phyfier’s sentencing hearing is scheduled for December 5, 2019 where he faces 25 years to life on the conspiracy count, up to five years to be served consecutively for being in possession of a firearm in furtherance of a drug trafficking crime, and he may be eligible for an additional 15 years under the Armed Career Criminal Act for having three or more convictions for serious drug offenses.
The Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Alabama Law Enforcement Agency (ALEA), and the Montgomery Police Department investigated this case, with assistance from the State of Alabama Attorney General’s Office, the Montgomery County Sheriff’s Office, and the United States Marshals Service (USMS). U.S. Attorney Franklin commended the investigative agencies for their collaborative effort in bringing the organization to justice.
This case was prosecuted by Assistant United States Attorneys Curtis Ivy, Jr., Stephanie Billingslea, Alice LaCour, and Brett Talley.
Maryland Man Sentenced to 30 Years in Prison for September 1999 Kidnapping and Sexual Assault of Somerset County, PA GirlRead the Press Release
JOHNSTOWN, Pa. - A resident of Cumberland, MD, has been sentenced in federal court to 30 years in prison and ordered to pay $5,000 assessment under the Justice for Victims of Trafficking Act on his conviction of kidnapping and aggravated sexual abuse of person under 12 years old, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Timothy D. Nelson, Jr., 50.
According to information presented to the court, on September 19, 1999, Nelson drove into a Cairnbrook, Pennsylvania, neighborhood and drove past a group of three minor females multiple times. The group was walking when the vehicle came by one more time, stopped, and Nelson exited his car and asked them a question. As the minor victim, a 10-year old girl, began to answer, Nelson grabbed the minor victim and placed her in the car through the driver’s side and exited the area. Nelson then placed the minor victim on the floor of the front passenger seat. While driving away from the area of the abduction, Nelson threatened the minor victim with a handgun pointing it at her head. The minor victim was screaming and Nelson struck the minor victim with his hand in an attempt to quiet her.
At some point, Nelson drove the car and the minor victim into West Virginia. When Nelson eventually stopped the car, he forced the minor victim to perform a sex act. Afterwards, Nelson gave the minor victim a paper bag and napkin to clean herself with. Nelson also cleaned himself and then discarded the bag out the window.
Nelson then drove the vehicle in the direction of Markleysburg, Pennsylvania, and shortly after crossing the Pennsylvania line from West Virginia, dropped the minor victim off on the side of the road, instructed her to count to 100, and then proceed to a location to call her mother. Subsequently, another vehicle happened upon the minor victim who was in distress and offered her assistance. Law enforcement responded, to include the Pennsylvania State Police.
The minor victim was subsequently able to direct law enforcement to the location of the sexual assault and the brown paper bag and napkin were recovered which appeared to contain evidence of the above-described assault. The evidence was subsequently forensically examined
and determined to contain multiple partial fingerprints and DNA extracted from the bodily fluids. Certain of the recovered partial prints were identified as originating from the minor victim. There remained unidentified latent prints and a search through the Integrated Automated Fingerprint Identification System (IAFIS), did not return any results at that time. Likewise, the FBI Lab was successfully able to identify a suitable DNA profile at that time, but when compared to the FBI Combined DNA Index System (CODIS) database, no matches were detected.
In April 2004, the FBI Laboratory reported that a DNA profile generated from evidence from a different kidnapping / sexual assault of another minor female, which occurred in September 1988 in Hagerstown, Maryland, was a match to the DNA profile of the 1999 Cairnbrook, Pennsylvania kidnapping event. This match was made from the FBI CODIS database, but the identity of the perpetrator of these crimes was still unknown at that time.
Over the years, advancements were made to IAFIS and the new fingerprint identification system called Next Generation Identification system (NGI) came into existence.
In the Fall of 2018, the partial prints obtained from the brown paper bag and napkin were re-submitted to NGI to search for a possible match. NGI identified a possible match with a person identified as Timothy David Nelson. The FBI Laboratory subsequently confirmed the partial prints as a match to Timothy David Nelson, Jr., who was living in Maryland.
On January 7, 2019, an arrest warrant was issued by the Commonwealth of Pennsylvania charging Nelson with multiple offenses to include, but not limited to, Kidnapping and Aggravated Indecent Assault. Also, a federal search warrant was issued for Nelson’s DNA.
On January 8, 2019, Nelson arrived at the Cumberland (MD) City Police Department and the Pennsylvania arrest warrant and the federal DNA search warrant were executed. Subsequent forensic analysis proved that Nelson’s DNA was a match for the 1999 Cairnbrook kidnapping on September 19, 1999, as well as a match to two separate kidnappings/sexual assaults on minor females from 1988 and 1989 in Maryland.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation that led to the successful prosecution of Nelson.
Mapleton Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Daniel Easler, 43, of Mapleton, Maine, pleaded guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, on the evening of December 4, 2018, the Caribou Police Department received a call from a citizen stating that there was a vehicle off the road in a snow bank. Law enforcement responded to the scene. There was no one in the vehicle but there were footprints in the snow leading away from the vehicle. Officers followed the footprints and found Easler, a convicted felon, lying in the snow. A search of the defendant revealed multiple firearms and ammunition. One of the firearms had previously been reported as stolen.
The defendant faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Caribou Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine State Police.
Manhattan U.S. Attorney Announces Charges Against Jose Alvarez for 1999 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), announced the unsealing of a superseding Indictment charging JOSE ALVAREZ, a/k/a “Ignacio Alvarez,” with the 1999 murder of Jose Miguel Mendez. ALVAREZ was previously arrested in the Dominican Republic and was extradited to the Southern District of New York last Friday. He was presented before U.S. Magistrate Judge Katharine H. Parker yesterday and detained. The case is assigned to U.S. District Judge Kimba M. Wood.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Jose Alvarez participated in the heinous robbery and murder of Jose Miguel Mendez. Alvarez was extradited from the Dominican Republic and now faces charges in a U.S. court for this terrible crime.”
Special Agent in Charge John B. DeVito said: “Jose Alvarez is alleged to have participated in a crime of violence and murder of Jose Miguel Mendez approximately 20 years ago. Through the diligent and steadfast efforts of ATF agents working alongside our state, local, and federal partners, he will be before a judge and finally face justice for his crimes. I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”
According to the allegations in the Indictment, and statements made in court filings and during court proceedings[1]:
ALVAREZ, along with other individuals, planned to rob and kill Jose Miguel Mendez to obtain money to invest in a drug robbery in Puerto Rico. On the night of the robbery and murder, ALVAREZ and his co-conspirators ambushed Mendez inside an apartment in the Bronx, where they restrained him with duct tape, burned him, and questioned him. Ultimately, ALVAREZ and one of his co-conspirators took Mendez to a location in Upper Manhattan, where Mendez was shot in the head, resulting in his death.
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ALVAREZ, 54, of the Dominican Republic, is charged with one count of causing the death of another through the use of a firearm in connection with a crime of violence and a drug trafficking crime, and aiding and abetting the same, which carries a mandatory minimum sentence of five years in prison and maximum sentence of life in prison; and one count of killing another, and aiding and abetting the same, while engaged in drug trafficking, which carries a mandatory minimum sentence of 20 years in prison and maximum sentence of life in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the excellent work of the ATF, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York. Mr. Berman also thanked Dominican authorities, the Office of International Affairs of the Justice Department’s Criminal Division, and the United States Marshals Service for their assistance.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sarah Krissoff and Michael Maimin are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.