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Tuesday 16 July 2019
Justice Department Announces Results in Fight Against the Opioid Crisis at One Year Mark of Operation S.O.S.Read the Press Release
One year ago, the Justice Department announced the formation of Operation Synthetic Opioid Surge (S.O.S.), a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers.
Over the past year, 10 districts with some of the highest drug overdose death rates in the country, each targeted a county where they focused on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity. These districts worked with DEA Special Operations Division to track and coordinate these street-level cases and also received additional assistance from the Organized Crime and Drug Enforcement Task Forces (OCDETF).
“Our attorneys and law enforcement agents have spent the past year working tirelessly to disrupt the networks engaged in the trafficking of synthetic opioids. Today we are proud to share their successes in 10 of the districts most affected by this scourge,” Deputy Attorney General Jeffrey A. Rosen said. “The Department of Justice’s efforts have resulted in countless successes from California to Maine. We have successfully sought enhanced sentences in cases that resulted in deadly overdoses, and we have boosted cooperation among the partners involved. There remains much work to be done, but Operation S.O.S. marks a crucial turning point in the fight against synthetic opioids.”
The 10 participating districts and some of their successes are listed below:
- The Eastern District of California has reported a total of 27 Operation S.O.S. investigations in which the narcotics seized have included kilogram-quantities of fentanyl, heroin, cocaine, methamphetamine, oxycodone, and hydrocodone.
- The Eastern District of Kentucky has reported 15 investigations with six to eight new investigations being added monthly and has charged nine sentence-enhanced “death resulting” cases.
- The District of Maine has an additional 30 cases as a result of Operation S.O.S.
- The District of New Hampshire has had 41 cases through Operation S.O.S. that have resulted in indictments with fentanyl being distributed in 39 of those cases amongst other drugs.
- The Northern District of Ohio has indicted 71 defendants under Operation S.O.S., and has seen a 12 percent decrease in overdose deaths from the previous year.
- The Southern District of Ohio has 58 Operation S.O.S. investigations of the 58 investigations, 52 involve fentanyl distribution.
- The Western District of Pennsylvania noticed the decline in overdose deaths in the county they originally had targeted. This decline was attributed to a large number of people moving out of the targeted county to attempt to circumvent the U.S. Attorney’s Office’s efforts. The U.S. Attorney’s Office has refocused their resources to target the county where fatal overdoses have increased the most.
- The Eastern District of Tennessee has reported seven Operation S.O.S. cases involving 39 defendants, with a number of those including “death resulting” cases.
- The Northern District of West Virginia has 22 Operation S.O.S. cases with one “death resulting” prosecution. One of these investigations resulted in eight separate cases involving 35 defendants.
- The Southern District of West Virginia has 62 cases pending as a result of Operation S.O.S. with 13 convictions. Just recently, a 1.2 kilogram mixture of fentanyl and heroin was seized from a defendant in one of those cases.
Jury Convicts Four Drug Smugglers Attempting to Smuggle 182 Kilograms of Cocaine into United States TerritoryRead the Press Release
On June 28, 2019, a jury in the Southern District of Alabama convicted four men, Angel Castro Garcia, Pedro Dino Cedado Nunez, Manely Enriquez, and Mike Castro Martinez, all Dominican Republic nationals, for attempting to smuggle 182 kilograms of cocaine from the Dominican Republic to Puerto Rico. All four defendants will be sentenced on October 7, 2019 by United States District Judge Jeffrey U. Beaverstock.
The case arose when, on December 24, 2018, a United States Border Patrol aircraft spotted a suspected drug smuggling vessel operating in international waters northeast of the Dominican Republic. The vessel was travelling on a known drug smuggling route to Puerto Rico. The aircraft notified the United States Coast Guard (USCG) and the USCG Cutter “Richard Dixon” proceeded toward the drug smuggling vessel. The USCG Cutter then launched an Over the Horizon (OTH) Zodiac type vessel from the Cutter with a four man crew.
The OTH vessel interdicted the 25-foot Yola type drug smuggling vessel operating in international waters northeast of the Dominican Republic. The drug smugglers attempted to jettison most of the cocaine when they spotted the USCG OTH vessel. The four man Coast Guard crew recovered approximately 182 kilograms of cocaine in the water and on board the drug smuggling vessel. The cocaine had a retail value of nearly $30 million dollars in the United States.
The trial occurred before United States District Court Judge Jeffrey U. Beaverstock on June 27 and June 28, 2019. The case was prosecuted by George F. May, Deputy Criminal Chief and Luis F. Peral, Lead Organized Crime Drug Enforcement Task Force (OCDETF) Attorney. Appellate Chief Scott Gray also provided invaluable assistance on the case.
Jefferson County man indicted on heroin, fentanyl, and cocaine chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Enrico Fionn Hernandez, of Harpers Ferry, West Virginia, appeared today in federal court on drug charges after being indicted by a federal grand jury sitting in Martinsburg on May 21, 2019 , United States Attorney Bill Powell announced.
Hernandez, also known as “Rico,” age 46, was indicted on one count of “Distribution of Cocaine,” one count of “Distribution of Fentanyl,” one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location,” one count of “Distribution of Heroin Within 1,000 Feet of a Protected Location,” one count of “Aiding and Abetting Distribution of Cocaine Base,” one count of “Aiding and Abetting Distribution of Heroin and Fentanyl,” one count of “Distribution of Cocaine Base,” two counts of “Possession with Intent to Distribute Cocaine Base,” one count of “Possession with Intent to Distribute Heroin and Fentanyl,” and two counts of “Possession with Intent to Distribute Cocaine Hydrochloride.”
Hernandez is accused of selling heroin, fentanyl, and cocaine in June 2017 in Berkeley and Jefferson Counties. The government is seeking the forfeiture of $647 seized from Hernandez during a traffic stop and $4,900 seized from Hernandez’s residence.
Hernandez faces at least one and up to 40 years incarceration and a fine of up to $2,000,000 for each of the distribution near a protected location charges, and up to 20 years incarceration and a fine of up to $1,000,000 for each of the other counts. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
U.S. Magistrate Judge Robert W. Trumble presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Jacksonville Couple Sentenced to Prison for Possessing Firearms and A Destructive DeviceRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Robert Randall Deen (60, Jacksonville) and Shannon Jeanette Heller (42, Jacksonville) to three years and four months in federal prison, for possessing firearms while an unlawful user of a controlled substance (Deen), and possessing firearms as a convicted felon (Heller). Heller had pleaded guilty on January 24, 2019. Deen had pleaded guilty on March 12, 2019.
According to court documents, in late November 2018, Deen and Heller were residing in an apartment on Gate Parkway in Jacksonville. A confidential informant told an ATF agent that Deen had firearms to sell, including AR-type rifles. At the time, Deen had been referred to a felony drug court diversion program in Duval County following his arrest in October 2018 for possessing cocaine and a handgun.
On December 3 and 6, 2018, Heller, who was Deen’s long-time girlfriend, sold a total of three rifles and two pistols to the confidential informant, at Deen’s direction. At the time of the incident, Deen was a habitual drug user and Heller was a convicted felon. Therefore, both were prohibited from possessing firearms or ammunition under federal law.
On December 7, 2018, ATF executed a search warrant at the couple’s apartment and recovered two rifles, a pistol, a shotgun, and a flare launcher with bore adapters that converted it into a destructive device. Both Heller and Deen were arrested the same day. Heller admitted that she had traded two other firearms to drug dealers in order to settle drug debts.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jackson County Man Sentenced to 14 Years in Federal Prison for Methamphetamine OffenseRead the Press Release
James E. Sizemore, a/k/a "Jimmy," of Murphysboro, has been sentenced to 168 months in federal prison on a methamphetamine violation, U.S. Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Sizemore pleaded guilty back in January to a one-count indictment charging conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing hearings established that Sizemore was involved with numerous others in the distribution of methamphetamine in Jackson County. On November 14, 2017, Sizemore sold methamphetamine to a confidential source working for law enforcement. At sentencing, the judge found that Sizemore was responsible for the distribution of more than 1.4 kilograms of ice (methamphetamine with a purity level of at least 80%). The offense occurred between June 2016 and November 2017.
Sizemore’s sentence includes three years of supervised release.
The investigation was conducted by the Jackson County Sheriff’s Office and the Carbondale Police Department. The Jackson County States Attorney’s Office also assisted in the investigation.
International Fugitive/Cuban National Extradited from Italy to Face Drug and Gun ChargesRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of a 2017
indictment charging Nelson Pablo Yester-Garrido (62, Cuba) with conspiracy to distribute large amounts of high-grade marijuana and possessing a firearm in furtherance of that conspiracy. If convicted on all counts, Yester-Garrido faces a maximum penalty of life in federal prison.According to court documents, from the late 1980s through early 1997, Yester-Garrido was part of a group involved in importing kilogram amounts of cocaine and other narcotics into the United States, including by negotiating the purchase of a Russian diesel submarine for Colombian drug suppliers. According to law enforcement, around 1997, Yester-Garrido fled to South Africa to escape prosecution related to charges filed in the Southern District of Florida (which have since been dismissed).
In January 2015, the DEA began investigating Yester-Garrido and several other Florida-based individuals who were distributing large amounts of high-grade marijuana to individuals and groups in central Florida. In January 2017, an indictment was returned in the Middle District of Florida charging three of Yester-Garrido’s co-conspirators (Juan Almeida, Andrew Cassara, and Wade Jones, Jr.) with conspiracy to distribute marijuana. In 2018, Almeida, Cassara, and Jones were sentenced to varying terms of imprisonment.
In October 2017, a grand jury in the Middle District of Florida returned an indictment charging Yester-Garrido with conspiracy to possess with the intent to distribute marijuana and possessing a firearm in furtherance of a drug trafficking crime. Later that month, based upon a provisional arrest warrant requested by the U.S. government, Italian authorities apprehended Yester-Garrido at the Fiumicino Airport in Rome, Italy. In July 2019, the Italian judicial authorities and the Ministry of Justice, granted the request for the extradition of Yester Garrido to the Middle District of Florida.
“This is a great example of law enforcement and prosecutors from different countries working together to safeguard communities and have a global impact on crime,” said Marcus R. Anderson, Assistant Special Agent in Charge of DEA Miami Division, Orlando District Office.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Drug Enforcement Administration and the Federal Bureau of Investigation. The Office of International Affairs of the Criminal Division of the Department of Justice provided significant support with the defendant’s extradition. The U.S. Marshals Service also provided critical assistance by extraditing Yester-Garrido from Italy to the Middle District of Florida. This case will be prosecuted by Assistant United States Attorney Sean P. Shecter.
Indictment: Guns and Drugs Were in Defendant’s GarageRead the Press Release
WICHITA, KAN. – A Wichita man was indicted today on a federal firearm charge, U.S. Attorney Stephen McAllister said.
Andrew Patrick Rizzo, 26, Wichita, Kan., is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking. The crime is alleged to have occurred July 11, 2019, in Wichita.
According to court records, investigators served a search warrant at Rizzo’s home in the 4800 block of east Gilbert. They found methamphetamine, heroin, marijuana, a digital scale and pipes for smoking narcotics. They also found a 9 mm Smith & Wesson handgun that had been reported stolen and a bulletproof vest.
If convicted, Rizzo could face a penalty of not less than five years in federal prison. The Sedgwick County Sheriff’s Office investigated. Special Assistant U.S. Attorney Katherine Andrusak is prosecuting.
OTHER INDICTMENTS
Fernando Campos-Zubia, who is not a citizen of the United States, is charged with one count of unlawfully re-entering the United States after being deported. If convicted he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
Bruce L. Hay, 50, Osawatomie, Kan., is charged with four counts of theft of public money. The indictment alleges Hay made false claims in order to receive disability payments from the Department of Veterans Affairs Compensation and Pension Benefits. The crimes are alleged to have occurred in 2016 and 2017 in Miami, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The Veterans Administration – Office of Inspector General investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
Deonte L. Jordan, 20, Wichita, Kan., is charged with one count of unlawful possession of a firearm by a convicted felon. The crime is alleged to have occurred July 4, 2019, in Sedgwick County, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Ryan McCarty is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Alien Sentenced for Concealing the Smuggling of Aliens within the United StatesRead the Press Release
Gulfport, Miss. – Alfonso Tellez-Lopez, 40, an illegal alien from Mexico, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr., to time served, which was 170 days imprisonment, as well as one year of supervised release, for misprision of a felony, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector. Alfonso Tellez-Lopez will also be subject to immigration removal proceedings. If he unlawfully returns to the United States after being removed, he could face additional prosecution and imprisonment.
Misprison of a felony means that a person has known that a felony was being committed and did not report it to officials at the earliest opportunity, and took some affirmative action to conceal the crime. Alfonso Tellez-Lopez was charged in connection with the unlawful transportation of aliens within the United States by his brother, Javier Tellez-Lopez. Alfonso Tellez-Lopez pled guilty before Judge Guirola on May 28, 2019.
On May 2, 2019, Alfonso Tellez-Lopez’s brother, Javier Tellez-Lopez, pled guilty to conspiracy to unlawfully transport aliens within the United States, and is scheduled to be sentenced on August 7, 2019, by Judge Guirola. Javier Tellez-Lopez, who also is an illegal alien from Mexico, faces a potential maximum sentence of 10 years imprisonment, not more than 3 years of supervised release, a maximum $250,000 fine, $5,100 in assessments, and will be subject to immigration removal proceedings.
On January 28, 2019, an interdiction agent of the South Mississippi Metro Enforcement Team conducted a lawful traffic stop on a vehicle on interstate I-10 eastbound in Jackson County. The agent observed eight occupants of the vehicle driven by Javier Tellez-Lopez. Alfonso Tellez-Lopez was riding in the front passenger seat and had served as a co-driver. Border Patrol Agents arrived on the scene and interviewed the occupants of the vehicle as to their citizenships, determining that none had proper documents and all were illegally present in the United States. Of the 8 total vehicle occupants (2 drivers and 6 passengers), all were illegal aliens from Mexico. All occupants were arrested and transported to the Border Patrol Station in Gulfport. A Homeland Security Investigations Special Agent joined Border Patrol Agents and determined the 6 passengers were being smuggled within the United States.
Further investigation determined that 5 of the 6 passengers had unlawfully returned after being formally removed from the United States. Each of these 5 passengers were separately prosecuted by the U.S. Attorney’s Office, pled guilty, and were convicted of the felony offense of illegal return by an alien after removal.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Homeland Security Investigations, the United States Border Patrol, the South Mississippi Metro Enforcement Team, the Jackson County Sheriff’s Department and the City of Gautier Police Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Illegal Alien Pleads Guilty to Unlawful Reentry After RemovalRead the Press Release
Gulfport, Miss. – Jose Manuel Cristobal-Joaquin, 33, an illegal alien from Mexico, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr. to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, and Scott Sutterfield, Acting Field Office Director of Immigration and Customs Enforcement, Enforcement and Removal Operations in New Orleans.
Cristobal-Joaquin was found guilty of the felony offense and is scheduled to be sentenced by Judge Guirola on October 16, 2019, at 10:00 a.m. He faces a maximum penalty of 2 years in prison and a $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
On or about May 29, 2019, the Jackson County Sheriff’s Office notified Immigration & Customs Enforcement (ICE) that Cristobal-Joaquin had been arrested by the South Mississippi Metro Enforcement Team for public drunk and a misdemeanor controlled substance possession. Cristobal-Joaquin confessed to being an illegal alien from Mexico in an interview with ICE/Enforcement Removal Operations (ERO). Cristobal-Joaquin was arrested by ERO and transported to the Gulfport ICE Office.
Further investigation revealed that Cristobal-Joaquin had been physically removed from the United States pursuant to a lawful removal order on or about November 2, 2018, and did not have permission to reenter the United States.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement Removal Operations, and the Harrison County Sheriff’s Office. Assistant United States Attorney Stan Harris is the prosecutor for this case.
ITT Cannon to Pay $11 Million to Settle False Claims Allegations for Untested Electrical ConnectorsRead the Press Release
ITT Cannon has agreed to pay the United States $11 million to settle False Claims Act allegations that it supplied electrical connectors to the military that had not been properly tested, the Justice Department announced today. ITT sold the untested connectors both directly to the Government and through distributors and other government contractors which incorporated them into technology and equipment sold to the Government.
“Failure to comply with testing requirements undermines the integrity of essential government equipment and technology, and thereby reduces its durability and reliability,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “This settlement demonstrates that we will hold contractors accountable when they fail to deliver what they were paid to deliver.”
“Defense contractors agree to follow strict manufacturing and testing protocols to ensure that our government receives only the best equipment,” said Nicola T. Hanna, U.S. Attorney for the Central District of California. “This multimillion dollar settlement is designed to ensure that ITT does not engage in this type of misconduct in the future, and this case should serve as a warning to any government contractor who is not completely upfront about its testing results.”
The settlement resolves allegations that from September 2008 to March 21, 2017, ITT did not conduct the required periodic testing on six models of electrical connectors. In December 2010, the Government learned that ITT had not done this testing and ITT promised the Government that it would conduct remedial testing and report the result to the Government. Shortly thereafter, in February 2011, ITT experienced several failures in its remedial testing. ITT did not immediately disclose these failures but represented to the Government that it was merely behind in the remedial testing.
In March 2017, the Defense Logistics Agency (DLA) issued an order stopping the shipment of the six connectors. In June 2017, ITT issued six Government Industry Data Exchange Program notices (GIDEP) disclosing to industry its failure to conduct required testing, its test failures, and changes in the processes, materials, construction, sourcing and design of the connectors. DLA then removed the six ITT connectors from the Qualified Products List (QPL). The QPL lists products that have met the qualification requirements set forth in the applicable Military Specifications (Mil Specs), which are uniform engineering and technical requirements for certain products used by the Department of Defense. DLA’s removal of ITT from the QPL precluded ITT from selling parts to the military covered by the Mil Specs. Recently, ITT has requalified one of the connectors for sale to the Government.
The settlement resolves allegations filed in a lawsuit by Ralph Tatgenhorst, the former regional quality manager at ITT’s Santa Ana facility, in federal court in Los Angeles, California, under the whistleblower (or “qui tam”) provisions of the False Claims Act. These provisions permit private individuals to sue on behalf of the Government for false claims and to share in any recovery. Mr. Tatgenhorst will receive $2,090,000 as his share of the settlement amount.
The settlement with ITT was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch; the United States Attorney’s Office for the Central District of California; the Defense Logistics Agency; the Defense Criminal Investigative Service; the Naval Criminal Investigative Service; the National Reconnaissance Office; the Office of the Inspector General for the National Aeronautics and Space Administration; the Air Force Office of Special Investigations; the Defense Contracts Audit Agency; and the United States Coast Guard Office of Inspector General. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
The lawsuit is captioned U.S. ex rel. Tatgenhorst v. ITT Corporation, PEI/Genesis, Inc., No. 14-7424 JAK (C.D.Cal.).
ITT Cannon to Pay $11 Million to Settle False Claims Act Allegations that It Sold Untested Electrical Connectors to the MilitaryRead the Press Release
LOS ANGELES – ITT Cannon has agreed to pay the United States $11 million to settle False Claims Act allegations that it supplied electrical connectors to the military that had not been properly tested, the Justice Department announced today. ITT sold the untested connectors both directly to the Government and through distributors and other government contractors which incorporated them into technology and equipment sold to the Government.
“Defense contractors agree to follow strict manufacturing and testing protocols to ensure that our government receives only the best equipment,” said Nick Hanna, U.S. Attorney for the Central District of California. “This multimillion dollar settlement is designed to ensure that ITT does not engage in this type of misconduct in the future, and this case should serve as a warning to any government contractor who is not completely upfront about its testing results.”
“Failure to comply with testing requirements undermines the integrity of essential government equipment and technology, and thereby reduces its durability and reliability,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “This settlement demonstrates that we will hold contractors accountable when they fail to deliver what they were paid to deliver.”
The settlement resolves allegations that from September 2008 to March 21, 2017, ITT did not conduct the required periodic testing on six models of electrical connectors. In December 2010, the Government learned that ITT had not done this testing and ITT promised the Government that it would conduct remedial testing and report the result to the Government. Shortly thereafter, in February 2011, ITT experienced several failures in its remedial testing. ITT did not immediately disclose these failures but represented to the Government that it was merely behind in the remedial testing.
In March 2017, the Defense Logistics Agency (DLA) issued an order stopping the shipment of the six connectors. In June 2017, ITT issued six Government Industry Data Exchange Program notices (GIDEP) disclosing to industry its failure to conduct required testing, its test failures, and changes in the processes, materials, construction, sourcing and design of the connectors. DLA then removed the six ITT connectors from the Qualified Products List (QPL). The QPL lists products that have met the qualification requirements set forth in the applicable Military Specifications (Mil Specs), which are uniform engineering and technical requirements for certain products used by the Department of Defense. DLA’s removal of ITT from the QPL precluded ITT from selling parts to the military covered by the Mil Specs. Recently, ITT has requalified one of the connectors for sale to the Government.
The settlement resolves allegations filed in a lawsuit by Ralph Tatgenhorst, the former regional quality manager at ITT’s Santa Ana facility, in federal court in Los Angeles, California, under the whistleblower (or “qui tam”) provisions of the False Claims Act. These provisions permit private individuals to sue on behalf of the Government for false claims and to share in any recovery. Mr. Tatgenhorst will receive $2,090,000 as his share of the settlement amount.
The settlement with ITT was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch; the United States Attorney’s Office for the Central District of California; the Defense Logistics Agency; the Defense Criminal Investigative Service; the Naval Criminal Investigative Service; the National Reconnaissance Office; the Office of the Inspector General for the National Aeronautics and Space Administration; the Air Force Office of Special Investigations; the Defense Contracts Audit Agency; and the United States Coast Guard Office of Inspector General. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
This matter was litigated by Assistant United States Attorney Kent A. Kawakami of the Civil Division’s Civil Fraud Section and Department of Justice Senior Trial Counsel Alicia Bentley.
The lawsuit is captioned U.S. ex rel. Tatgenhorst v. ITT Corporation, PEI/Genesis, Inc., No. 14-7424 JAK (C.D.Cal.).
Hope Mills Man Sentenced to More Than 13 Years on Gun and Drug ChargesRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever, III, sentenced Xavier Dominique Garris, 26, of Hope Mills to 162 months’ imprisonment, followed by 3 years of supervised release. On April 8, 2019, GARRIS pled guilty to one count each of felon in possession of a firearm and possession with intent to distribute marijuana.
On May 20, 2017, Fayetteville Police Department officers stopped GARRIS for speeding on Ireland Road in Fayetteville. GARRIS, stepped out of the vehicle, briefly spoke with police, and then ran to a nearby wooded area. Officers pursued and caught GARRIS. They searched him and found a digital scale, roughly three ounces of marijuana, and a loaded .40 caliber handgun. The handgun had been reported stolen. GARRIS’s state criminal record includes six prior felony drug convictions and three prior firearm-related felony convictions.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative please click https://www.justice.gov/usao-ednc/tbnc.
The investigation of this case was conducted by the Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Jake D. Pugh represented the government.
Honduran Man Charged with Smuggling Female Child into the U.S.Read the Press Release
McALLEN, Texas - A 22-year-old illegal alien from Honduras has been indicted on charges of human smuggling and making a false family claim, announced U.S. Attorney Ryan K. Patrick.
Luis Fernando Ortiz-Matamoros was originally charged by criminal complaint June 28, 2019. Today, a federal grand jury returned the two-count indictment. He is expected to appear for his arraignment before a U.S. magistrate judge in the near future.
On June 27, 2019, Ortiz-Matamoros allegedly crossed the Rio Grande River near Hidalgo with a young female child, also of Honduras. Martinez claimed to be traveling with his daughter and presented a fraudulent birth certificate for the juvenile, according to the charges.
The criminal complaint indicates he obtained the fraudulent document to show him as the father of the child. However, he was not the father of the child, according to the charges, and was only traveling with the child in order to successfully gain entry into the United States.
If convicted, he faces up to five years in federal prison.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Hillsborough County Resident Pleads Guilty to Shooting at Police Following Armed Robbery of South Beach HotelRead the Press Release
A Hillsborough County resident pled guilty to all counts of a Superseding Indictment charging him with armed robbery of the Ocean Five Hotel on South Beach, discharging a firearm at a Miami Beach Police Department officer while fleeing after the robbery, and unlawfully possessing a firearm and ammunition as a previously convicted felon.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Richard M. Clements, Chief, City of Miami Beach Police Department, made the announcement.
According to the court record, including the stipulated factual proffer, on March 8, 2019, Terence Wendell Daniely II, 34, robbed the valet attendant at the Ocean Five Hotel on South Beach using a 9mm caliber pistol. Daniely’s possession of this pistol was illegal, as he had previously been convicted of numerous felony offenses, narcotics distribution, carrying a firearm in connection with narcotics distribution, and unlawful possession of a firearm by a convicted felon. Following the armed robbery of the Ocean Five Hotel, a Miami Beach Police Department officer spotted Daniely fleeing in a white Dodge Challenger. As this officer approached, Daniely discharged his pistol from within his moving vehicle in the direction of the officer, shattering the windshield of Daniely’s vehicle. Daniely then instigated a high-sped car chase, recklessly driving and leading officers across the MacArthur Causeway and into the City of Miami. Daniely crashed his car near Overtown and fled foot. A perimeter was established and, several hours later, the Defendant was ultimately located hiding in a shed in the backyard of a private residence.
Sentencing is scheduled for October 22, 2019, at 10:30 a.m., before U.S. District Judge Donald M. Middlebrooks. Daniely faces up to life imprisonment and a mandatory minimum sentence of 10 years imprisonment at sentencing.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, ATF, and Miami Beach Police Department in this matter. The case is being prosecuted by Assistant U.S. Attorney Michael B. Homer.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Georgia Man Pleads Guilty to Social Security and Wire FraudRead the Press Release
BOSTON – A Georgia man pleaded guilty today in federal court in Springfield in connection with his submission of a fraudulent application for employment at a Western Massachusetts hospital.
Fabrizio I. Pluchino, a/k/a “Fabrizio Pulchino,” 56, pleaded guilty to one count of using a falsely obtained Social Security number and one count of wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 8, 2019. Pluchino was arrested and charged federally in November 2018 and has been in custody since.
Pluchino was assigned a Social Security number in 1988 and subsequently falsely obtained two additional Social Security numbers in 1991 and 2000, respectively. Around November 2013, Pluchino used one of his falsely obtained Social Security numbers on pre-employment documents when he applied to be a cardiac surgical technologist at a Western Massachusetts hospital. He also falsely represented his work history and provided two false employment references. As a result, the hospital hired Pluchino for the position and paid Pluchino more than $190,000 in wages during his employment.
The charge of use of a falsely obtained Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a $250,000 fine. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
Former Microsoft Software Engineer Charged with Mail Fraud for Scheme to Steal Digital Value Such as Gift CardsRead the Press Release
A former Microsoft software engineer was arrested today and charged in a criminal complaint charging him with mail fraud for a scheme to steal $10 million in digital currency from Microsoft, announced U.S. Attorney Brian T. Moran. VOLODYMYR KVASHUK, 25, a Ukrainian citizen residing in Renton, Washington, worked first as a contractor at Microsoft and then as an employee from August 2016 until he was fired in June 2018. KVASHUK was involved in the testing of Microsoft’s online retail sales platform, and used that testing access to steal “currency stored value” such as gift cards. The complaint alleges KVASHUK resold the value on the internet, using the proceeds to purchase a $160,000 Tesla vehicle and a $1.6 million dollar lakefront home. KVASHUK made his initial appearance in U.S. District Court in Seattle today and is detained pending a further hearing on Friday July 19, 2019.
According to the criminal complaint, KVASHUK was to use a test Microsoft store account to access the company’s online sales platform and simulate the experience of customers making purchases. The system was set up to ensure no physical products ever shipped. The testing program was not supposed to involve purchases of ‘currency stored value’ (CSV) such as gift cards. KVASHUK used test accounts to purchase CSV, and then resold some or all of it on Internet reseller websites. Initially, he started stealing smaller amounts of about $10,000 in value using his own account access. As the thefts escalated into millions of dollars of value, KVASHUK used test email accounts associated with other employees. KVASHUK, a knowledgeable software developer, attempted to mask digital evidence that would trace the fraud and the internet sales back to him. He used a bitcoin “mixing” service in an attempt to hide the source of the funds ultimately passing into his bank account. In all, over the seven months of KVASHUK’s illegal activity, approximately $2.8 million was transferred to his bank accounts.
Microsoft investigators confronted KVASHUK about the thefts in May 2018 and he was fired by the company in June 2018.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Mail fraud is punishable by up to twenty years in prison and a $250,000 fine.
The case is being investigated by the U.S. Secret Service and the Internal Revenue Service Criminal Investigation’s Western Area Cyber Crime Unit.
The case is being prosecuted by Assistant United States Attorney Michael Dion.
Former Host of Cable Hunting Show Pleads Guilty to Poaching DeerRead the Press Release
PEORIA, Ill. – Christopher Brackett, 41, of East Peoria, Ill., former host of “Fear No Evil,” a hunting show that aired on the Outdoor Channel, pleaded guilty today in federal court to unlawful transportation of wildlife, in violation of the Lacey Act. Brackett admitted that in December 2013, during filming of an episode of his cable show, he killed two bucks within minutes of each other, when the state of Indiana permitted hunters to kill only one buck per season. Brackett further admitted that he transported the second, 11-point buck he had nicknamed the “Unicorn Buck,” for its unique antler formation, to his home in East Peoria.
Brackett featured the “Unicorn Buck” kill on his television show in 2014. Brackett further admitted that he instructed his cameraman and producer to hide footage of the kill of the first, smaller eight-point buck. Brackett also admitted that in 2017, prior to charges being filed against him, he instructed an employee to destroy an eight-point rack.
At sentencing, scheduled on Nov. 5, 2019, before U.S. District Judge Michael M. Mihm, the government and Brackett have agreed to a sentence of 30 months of probation with the condition that during the 30-month period, Brackett is banned from hunting worldwide. Brackett has also agreed to pay $3,500 in restitution to the State of Indiana and to pay a $26,500 fine.
The government is represented by Assistant U.S. Attorney Katherine Legge in the prosecution, with the assistance of Assistant U.S. Attorney Georgiann Cerese from the Environmental Crimes Section at the Department of Justice. The charges were investigated by the U.S. Fish and Wildlife Service with the assistance of both the Illinois and Indiana Departments of Natural Resources.
Former Director of "BSI" Heads to PrisonRead the Press Release
St. Louis, MO – Leaman George Crews, III, 44, of St. James, Missouri, was sentenced to 36 months in prison for wire fraud in connection with his scheme to defraud the company he worked for – Brewer Science Incorporated (BSI), Rolla, Missouri. Crews appeared today before U.S. District Judge Henry Autrey.
According to court documents, between May 2, 2008 and August 11, 2017, Crews was employed as the Director of Information Systems for BSI. He was given a BSI credit card to order software equipment on behalf of the company. Instead of purchasing software and computer equipment for the company, Crews used the credit card to fund over one thousand wire transfers to various PayPal and bank accounts. Crews ultimately used the BSI funds for personal expenditures unrelated to the legitimate BSI business, including cash withdrawals and personal credit card purchases. The total amount of loss is approximately $1,851,520.
The Rolla division of the FBI investigated this case. Lindsay McClure-Hartman is handling the case for the U.S. Attorney’s office.
Former Buncombe County Commissioner Indicted on Federal ChargesRead the Press Release
ASHEVILLE, N.C. – Today, a federal grand jury in Asheville returned a criminal bill of indictment against former Buncombe County Commissioner Ellen Madans Frost, 64, of Asheville, N.C., charging her with conspiracy to commit federal program fraud, federal program fraud, and mail fraud, for her involvement in a scheme to use more than $575,000 in Buncombe County funds to sponsor equestrian activities in North Carolina and Florida, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); and Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney Murray in making today’s announcement.
Frost was elected as Commissioner for Buncombe County (the County) in November 2012, and continued to serve until December 2018. According to allegations contained in the 11-count indictment, beginning in early 2014 through November 2017, Frost conspired with former County Manager, Wanda Skillington Greene, to execute a scheme to defraud the County of more than $575,000, by misapplying funds allocated to the County’s Economic Development Program to support various equestrian enterprises in North Carolina and Florida. The indictment alleges that, as a horse owner and an avid supporter of equestrian activities including competitions and shows, Frost had a personal interest in supporting equestrian venues such as the Tryon International Equestrian Center (the Tryon Center) located in Polk County, and its affiliate, the Palm Beach International Equestrian Center located in Wellington, Florida.
As alleged in the indictment, in or about 2014, Frost began to speak with Greene about Frost’s desire to support the Tryon Center and related equestrian activities on behalf of the County. As a result, Frost and Greene developed a scheme to enter into sponsorship and advertising contracts with the Tryon Center, the Palm Beach International Equestrian Center, and affiliated equestrian enterprises, and to pay for those contracts using monies from the County’s Economic Development Incentive Fund. The equestrian enterprises were unaware of the criminal nature of the scheme, including the lack of authorization for Frost and Greene to enter into these negotiations and agreements without the knowledge and approval of the Board of Commissioners, as required by State law.
The indictment alleges that Greene and Frost took steps to cover the fraudulent scheme and to hide the County’s involvement in these unauthorized sponsorship and advertising contracts, by using the funds to promote the Asheville Regional Airport (the Airport), even though the Airport is an independent entity not governed or funded by the County. To perpetuate the cover-up, Greene and Frost ensured that the contracting parties understood that all sponsored events, signage, and advertisements would bear the name and logo of the Asheville Regional Airport, and that no signage or advertisements would be in the name of Buncombe County, even though the County was the paying sponsor. Frost and Greene never informed other County Commissioners about the existence of these contracts, or that County funds were used to pay for the contracts on behalf of the Airport.
The indictment alleges that, in addition to promotional material and advertising for the Airport, the County’s sponsorship contracts guaranteed access to amenities at the two equestrian venues exclusive to high-level sponsors. Specifically, the Tryon Center contract included access to a “Members Only” VIP area known as the Legends Club, “one (1) premium location VIP pavilion table,” a “full spread buffet, and a premium selection of liquor, beer, and wine,” and premium VIP parking. Entrance to the Legends Club and use of the VIP table was limited to persons whose names were on the admission list. The indictment alleges that the individual who ordinarily served as the contact person and approved the use of the County-funded table at the Legends Club was Frost, and anyone who wanted to obtain permission to use the table and be added on the admission list had to contact her. The indictment further alleges that during the 2015 and 2016 seasons at the Tryon Center, Frost repeatedly used the VIP table, and invited her friends and other guests to attend the events. Furthermore, Frost did not disclose to the other Commissioners the existence of the VIP table, nor her use of it.
According to allegations in the indictment, on at least two occasions prior to the signing of the sponsorship and advertising contracts, Frost and Greene sought to advance their fraudulent scheme to use County money to promote equestrian activities at the Tryon Center, by inviting to dinner individuals affiliated with the equestrian enterprises and the Asheville business community. The two dinners, totaling $5,877.94, took place at Asheville-area hotels, and were paid for by Greene using her personal credit card, for which she was later reimbursed by the County. Neither Frost nor Greene informed the other members of the Board of Commissioners about these dinners.
In addition to the dinners, the indictment alleges that Greene and Frost took at least two County-funded trips related to this scheme. One trip was to Wellington, Florida, to attend the “Winter Equestrian Festival” at the Palm Beach International Equestrian Center, during a time Frost and Greene would have access to the VIP table. The second trip was to Saratoga Springs, New York, which Frost and Greene took supposedly to visit the equine quarantine facility in Newburgh, New York, and to explore the possibility of establishing such a facility near the Asheville airport. As the indictment alleges, Greene and Frost never visited the facility in Newburgh during the trip. Instead, the pair attended horse races, and visited a large private farm where a horse once owned by Frost was stabled. The total cost of the two trips was $8,841.56. On both occasions, Greene paid for all travel expenses for herself and Frost, and later received full reimbursement by the County.
The indictment alleges that other members of the Board of Commissioners eventually learned about approximately $26,000 of payments after an article was published in an Asheville newspaper. Even then, Greene took steps to cover the extent of fraud, forging documents to reduce the apparent amounts that the County paid for the sponsorships and advertising, and falsely maintaining that the expenditures were the entirety of the County’s payments to the equestrian enterprises.
The indictment further alleges that Frost did not tell, at any time, any of the other Commissioners that she had already known of payments being made to the aforementioned equestrian enterprises, or that she knew County funds were used to pay for sponsorships and advertising on behalf of the Airport. Frost also did not tell any of the other Commissioners that she was aware of the existence of contracts between the County and the equestrian enterprises, or inform them of the full amounts of those contracts. Furthermore, as alleged in the indictment, as recently as November 2017, Frost continued to conceal the extent of her knowledge and participation in the scheme, and went as far as to be quoted in a local paper as saying that she was “surprised as everyone at the amount” of the contracts, stating that this was “absolutely not” a good expense.
A federal summons for Frost has been issued. All charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The federal program fraud conspiracy charge carries a maximum penalty of five years in prison. The maximum prison term for each federal program fraud charge is 10 years, and the mail fraud charges each carry a maximum prison term of 20 years.
Wanda Greene previously pleaded guilty to public corruption and to other charges for unrelated schemes involving the misuse of County funds and is awaiting sentencing.
In making today’s announcement U.S. Attorney Murray commended the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into corruption within the Buncombe County Government is ongoing.
Fifteen Defendants Charged in Federal Court with Heroin Trafficking and Possession of Firearms in MilwaukeeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that federal, state, and local law enforcement officers engaged in a significant operation in Milwaukee today that targeted a violent drug-trafficking conspiracy led by Jimmy D. Bates. The operation coincided with the unsealing of a nine-count indictment that charged Bates and 14 other defendants with conspiracy to distribute heroin and cocaine. Certain defendants were also charged with possession of firearms in furtherance of the conspiracy; unlawful possession of firearms by a felon; and conspiracy to commit robberies of others who possessed drugs.
The defendants charged in the indictment are:
Name
Age
Residence
Jimmy D. BATES
43
Milwaukee
Calvin NASH
45
Milwaukee
Tavaris CAIN
41
Milwaukee
Marville PAYNE
41
Milwaukee
Wayne POTTS, Jr.
35
Milwaukee
Montel D. IVORY
27
Milwaukee
Dujuan HARRISON
37
Milwaukee
Jebar CANNON
39
Milwaukee
Jason ASHLEY
40
Milwaukee
Anthony MEEKS
32
Mississippi
Paul PARKER
35
Milwaukee
Devon WOOTEN
34
Milwaukee
Dontelle CARR
47
Milwaukee
Shinae CASTINE
32
Milwaukee
Marlon D. PICKENS
41
Milwaukee
As part of today’s operation, law enforcement officers executed arrest warrants and search warrants at multiple locations in Milwaukee. The operation and charges are the culmination of a multi-year investigation that has resulted in the seizure of significant amounts of heroin and cocaine, and at least 15 firearms.
In court today, prosecutors described the conspiracy as being connected to multiple shooting incidents in the Milwaukee area. The indictment specifies numerous firearms possessed as part of the conspiracy, including handguns, assault rifles, and a Striker 12-guage shotgun, known as a “Street Sweeper,” which is no longer sold in the United States because federal law defines it as a destructive device.
If convicted of the conspiracy to distribute heroin and cocaine, the defendants face at least a minimum term of 10 years in prison, and up to life. Convictions on the firearms and robbery-conspiracy counts would expose the defendants to additional terms of incarceration.
The investigation was led by law enforcement officers from the Drug Enforcement Administration (DEA), North Central High Intensity Drug Trafficking Area (HIDTA), Milwaukee Police Department (MPD), and Homeland Security Investigations (HSI). Multiple additional law enforcement agencies participated in today’s operation, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Federal Bureau of Investigation (FBI); Wisconsin Department of Justice’s Division of Criminal Investigation (DCI); Waukesha County Sheriff’s Office; Milwaukee County Sheriff’s Office; West Allis Police Department; Wauwatosa Police Department; and Greenfield Police Department.
“Today’s operation sends a loud message: All levels of law enforcement are committed and cooperating to bring justice to drug traffickers and violent criminals in Milwaukee,” said U.S. Attorney Krueger. “We know that most violent crime is committed by a small number of individuals. As part of Project Safe Neighborhoods, we are focusing enforcement resources where they are needed most. At the same time, we know that law enforcement is only part of the solution. Project Safe Neighborhoods also fosters partnerships with community organizations and positive prisoner reentry efforts to help prevent violent crime. It will take all parts of our community working together to ensure safe neighborhoods.”
“The strength of the Drug Enforcement Administration is, in many ways, derived from close relationships forged with our numerous local and federal law enforcement partners. This significant investigation resulted from the cooperative leadership of Chief Morales and U.S. Attorney Krueger—and of course the dedication of the men and women of the Milwaukee Police Department, other Milwaukee-area police departments, and the U.S. Attorney’s Office. The DEA is committed to these partnerships—these force multipliers—to effectively combat criminal organizations responsible for drug threats and violence in Milwaukee and throughout the United States,” said Associate Special Agent in Charge Robert J. Bell.
“Having a good relationship with your system partners is crucial to a successful mission,” said Milwaukee Police Chief Alfonso Morales. “Our relationship with the United States Attorney’s Office has led to some great arrests and, more importantly, some great convictions.”
At a press conference held to announce today’s charges, law enforcement leaders noted progress in reducing violent crime in Milwaukee. As of July 14, 2019, there had been 196 non-fatal shootings in Milwaukee this year. That is a 35% decrease compared to the same time in 2017, and a 40% decrease compared to a spike in violent crime that occurred in 2015. Thus, compared to this point in 2015, 133 fewer people were victims of a non-fatal shooting in Milwaukee.
These enforcement actions and partnerships are 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. The U.S. Department of Justice reinvigorated PSN in 2017, 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. Learn more about Project Safe Neighborhoods.
This case is being prosecuted by Assistant United States Attorney Laura S. Kwaterski and Assistant United States Attorney Philip T. Kovoor.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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Felon with Multiple Convictions Charged with Illegally Possessing Heroin, Fentanyl and GunsRead the Press Release
PITTSBURGH, PA - A former resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearm laws, United States Attorney Scott W. Brady announced today.
The four-count superseding indictment named Douglas Tyrone Williams, 39, of East Pittsburgh, PA, as the sole defendant.
According to the Superseding Indictment, on or about July 20, 2016, Williams possessed with intent to distribute 100 grams or more of heroin, a Schedule I controlled substance. The Indictment further alleges that Williams conspired with others to distribute and to possess with intent to distribute 100 grams or more of heroin and fentanyl.
According to the Indictment, Williams also possessed a 9 mm caliber semi-automatic Ruger pistol; a 9 mm caliber semi-automatic Beretta pistol with an obliterated serial number; a 45 caliber semi-automatic Para-Ordnance pistol; a 22 caliber American Tactical Imports assault-style rifle; and a 22 caliber CBC assault-style rifle in furtherance of those drug offenses, after having been convicted of crimes punishable by more than one year in prison. Those cases include one conviction for Aggravated Assault, one conviction for Illegally Carrying a Firearm without a License, and one conviction for Murder.
The law provides for a minimum of 10 years and a maximum of life imprisonment, a fine of up to $10,500,000, and the forfeiture of the firearms, ammunition, money and jewelry. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt and Special Assistant United States Attorney Chad R. Parks are prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal jury quickly convicts serial illegal deporteeRead the Press Release
AUGUSTA, GA: A Honduran national who has repeatedly entered the United States illegally has been convicted in federal court after his fifth return.
A jury on July 15 found Celso de Jesus Urbina-Aleman, 43, of Honduras, guilty of Re-entry After Removal/Deportation in U.S. District Court in Augusta, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The conviction carries a possible sentence of up to two years in federal prison, followed by deportation.
“Urbina-Aleman’s case demonstrates the challenge our federal immigration partners face in enforcing our nation’s laws,” said U.S. Attorney Christine. “For a decade and a half the defendant has broken our laws over and over again, been caught and deported. This jury verdict has changed the script and will permit justice to be served at the time of sentencing.”
Urbina-Aleman was arrested Dec. 2, 2018 after a traffic stop in Taliaferro County, Ga., and was charged with driving without a valid license. A check on his immigration status determined he was illegally present in the United States and previously had been deported four times.
According to court records and proceedings, Urbina-Aleman was initially removed from Texas in 2006, was deported in 2010 after being caught in Pennsylvania, then was caught again near the border in Texas in 2011 and deported. Less than three months later, he was caught again in Texas, convicted in federal court of Illegal Entry and again deported.
“The woman and men of ICE perform the vital role of arresting and removing immigration law violators, particularly those who demonstrate a constant and wanton disregard of our laws,” said ICE Atlanta Field Office Director Sean Gallagher. “ICE officers, in concert with our law enforcement partners, will continue to perform their duties as intended by Congress with veracity, courage and professionalism.”
The case was investigated by Immigration and Customs Enforcement (ICE) and prosecuted for the United States by Assistant U.S. Attorney Alejandro V. Pascual IV.
Federal Law Enforcement Responds to Violent Acts in Old San Juan During ProtestsRead the Press Release
SAN JUAN, Puerto Rico – The U.S. Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Drug Enforcement Administration are working together with our local partners to investigate the violent acts that transpired last night in Old San Juan.
“We emphasize that peaceful demonstrations are an exercise of the fundamental rights of citizens, but violent acts and destruction of property have no part of a peaceful demonstration, and will not to be tolerated. We are disheartened by the violence that some groups have taken and we will investigate and prosecute anyone who has violated federal law, to the fullest extent of the law,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico. “We remain vigilant in monitoring the situation and will act immediately, as we have done in other situations when peaceful demonstrations have turned violent.”
“The FBI recognizes the public’s first amendment right to protest in a peaceful manner. Nonetheless, the FBI will actively investigate any acts of violence that fall under our jurisdiction and constitute federal crimes in coordination with our law enforcement partners and the US Attorney’s office,” said Douglas A. Leff, Special Agent in Charge of the FBI.
“The Bureau of Alcohol Tobacco Firearms and Explosives stands with all of our local, state, and federal government partners in Puerto Rico, and will aggressively pursue all violations of law that fall within our jurisdiction,” said Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“The right to manifest itself as an exercise of freedom of expression is an inalienable right that has to be respected as long as this exercise does not violate the rights of others,” said Ivan J. Arvelo, Special Agent in Charge of HSI San Juan. “HSI, along with the other law enforcement agencies in Puerto Rico, will be vigilant and will not tolerate violations of federal statutes.”
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Federal Jury Convicts Orangeburg Man of Two Counts of Drug DistributionRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today after a three-day trial, a federal jury sitting in Columbia found Joe Roger Moultrie, age 67, of Orangeburg County, guilty of two counts of possession with the intent to distribute cocaine and crack cocaine. United States District Judge Margaret B. Seymour of Columbia presided over the trial and will sentence Moultrie after receiving and reviewing a presentence report prepared by the United States Probation Office.
Evidence presented during the trial showed that on August 20, 2015, an Orangeburg County Narcotics agent followed Moultrie to a local laundromat because he suspected that he was dealing narcotics. After watching Moultrie for a short time, he observed what he described as a drug deal. The narcotics agent then turned on his blue lights and attempted to stop Moultrie, who fled in his car while the officer followed him. After traveling a distance, Moultrie stopped his car and immediately got out of the car with his hands in the air and stated, “I ain’t got nothing!” The narcotics officer observed both front seat windows were down and detained Moultrie while another officer searched the roadway in the path of the pursuit. He found cocaine and crack cocaine in the roadway a short distance from the laundromat. Later DNA testing determined that Moultrie’s DNA was on the cocaine. Moultrie was arrested.
On August 28, 2017, an Orangeburg County Narcotics agent received a telephone call that Moultrie was selling drugs in an area in Orangeburg called “The Hill” while driving a red SUV. Narcotics agents went to this area and saw Moultrie parked in the roadway while another person was leaning into the car through the passenger window. The agents went around the block, and when they returned to the area where they saw Moultrie, he had fled. The officers followed Moultrie’s vehicle and observed him committing multiple traffic offenses. Initially, Moultrie refused to stop but after a short chase, he stopped his red SUV. As the officers approached, they observed Moultrie was very nervous and asked if he was having a medical problem. He said no. The agents then deployed a K-9 who alerted to the armrest in Moultrie’s car. During the search of the car, the officers found a prescription pill bottle wrapped in camouflage tape containing 16 baggies of crack cocaine and cocaine in the armrest. Again, Moultrie’s DNA was found on the pill bottle, crack cocaine, and cocaine.
The maximum penalty for possession with the intent to distribute cocaine and crack cocaine is imprisonment for 30 years and/or a fine of $2,000,000.
The case was investigated by agents of the Drug Enforcement Administration, South Carolina Law Enforcement Division, the Orangeburg County Sheriff's Office, and the Orangeburg Department of Public Safety. Assistant United States Attorneys William K. Witherspoon and Elliott B. Daniels of the Columbia office prosecuted the case.
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Federal Jury Convicts Birmingham Doctor and Nurse for $7.8 Million Health Care Fraud, Unlawful Drug Distribution and Money LaunderingRead the Press Release
BIRMINGHAM – A federal jury today convicted Dr. PATRICK EMEKA IFEDIBA, 60, of Shelby County and Patrick Ifediba’s sister, NGOZI JUSTINA OZULIGBO, 49, of Trussville of numerous crimes stemming from their involvement with Care Complete Medical Clinic, located in Birmingham, Alabama, announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr., and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
Following a four-week trial before Judge David R. Proctor, the jury convicted Ifediba of thirty-five counts involving unlawful drug distribution, health care fraud, and money laundering. Specifically, Ifediba was convicted of: (i) one count of conspiracy to illegally distribute controlled substances by means of prescriptions; (ii) fourteen counts of illegal prescribing; (iii) one count of maintaining drug-involved premises; (iv) one count of conspiracy to commit health care fraud; (v) ten counts of health care fraud; (vi) one count of conspiracy to commit money laundering; (vii) three counts of concealment money laundering; and (viii) four counts of engaging in monetary transactions involving criminally derived property greater than $10,000.
For her part in the offenses, Ozuligbo, a licensed practical nurse, was convicted of twelve counts involving health care fraud and money laundering. Specifically, Ozuligbo was convicted of: (i) one count of conspiracy to commit health care fraud; (ii) nine counts of health care fraud; (vi) one count of conspiracy to commit money laundering; and (vii) one count of concealment money laundering. No sentencing date has been set.
“This jury verdict should put all health care providers on notice that sacrificing care for greed will land you in federal court,” Town said. “And we have bed space in federal prison for all that do.”
“In defrauding the Medicare system, Ifediba violated a sacred oath taken by physicians but above all he violated the law,” Sharp said. “He submitted fraudulent claims to both Medicare and other health care insurers as part of the scheme. The FBI and our partners will continue to hold medical professionals accountable for abusing positions of trust in the community and for harming the financial integrity of our health care system. The FBI remains dedicated to combating health care fraud and to doing our part in reducing the impact that opioids have on our nation.”
“Today, a jury of community members resoundingly confirmed what DEA had known all along,” Morris said. “Dr. Ifediba had long forgotten to care for his patients. Instead, he chose to fill his bank accounts with cash. Sadly, Dr. Ifediba is yet another example of putting profit over his professional responsibility to help those in need. For over three years, DEA and our law enforcement colleagues investigated and ultimately prosecuted Dr. Ifediba for violations of many federal laws including drug distribution and money laundering. Collectively, we are committed to protecting our communities from the scourge of opioid abuse and those who profit from it. We will tirelessly protect the innocent and vigorously investigate those who prey on the addictions of others.”
Evidence at the trial proved that Ifediba was a doctor of internal medicine who owned Care Complete Medical Clinic (“CCMC”) and operated it with his wife, Dr. Uchenna Ifediba. The evidence showed that the doctors operated CCMC as a pill mill. They routinely prescribed dangerous and addictive opioids for the primary purpose of making money from repeated return office visits. Ifediba not only overprescribed opioids, he also prescribed dangerous cocktails of drugs, including one called “the holy trinity,” that produces a heroin-like high, but creates a significant risk of an overdose. Although Ifediba was not a pain management specialist and CCMC did not hold itself out as a pain management clinic, approximately 85% of its patients received opioid prescriptions.
In addition to operating a pill mill, the evidence showed that Ifediba and others, including Ozuligbo, cheated and stole millions of dollars from Medicare and private health insurers in connection with an allergy fraud scheme. Although neither had any training in allergy medicine, the pair would order patients with health insurance to take allergy tests and submit to allergy treatments they didn’t need. Ifediba even forced some patients to take unwanted allergy tests by withholding their opioid prescriptions if they refused. Ifediba then ordered expensive allergy therapy treatments for all these patients even when the patients tested negative.
The purpose of the allergy scheme was to increase CCMC’s revenue. CCMC billed health insurers more than $7.8M over the course of the scheme. Representatives of Medicare and several private insurance companies testified at trial. The evidence showed that Ifediba billed one of the private insurers nearly $3M for allergy services over a two-and-a-half year period. Ifediba was their number one biller in the state of Alabama, accounting for sixty-one percent of all allergy-related billing. The insurance company’s next highest biller was an allergy and asthma center employing eight doctors and nine nurse practitioners.
The evidence at trial showed that Ifediba opened numerous bank accounts and used shell corporations in order to hide the money he made from his crimes. Ifediba moved the illicit funds between bank accounts and used the names of family members, including Ozuligbo, to make it appear as though the bank accounts and companies belonged to someone else. A substantial portion of these illicit funds were used to buy a condominium, annuities, and other investments held in the names of others, but which were for Ifediba’s personal use and benefit.
The charges of conspiracy to commit health care fraud and health care fraud both carry maximum penalties of 10 years in prison and a $250,000 fine.
Conspiracy to distribute controlled substances and distribution of controlled substances both carry a maximum penalty of 20 years in prison and a $1 million fine. Maintaining drug-involved premises carries a maximum penalty of 20 years in prison and a $500,000 fine.
Money laundering conspiracy and laundering of monetary instruments both carry a maximum penalty of 20 years in prison and a $250,000 fine. Engaging in monetary transactions in criminally derived property worth more than $10,000 carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount of the criminally derived property involved.
The FBI and DEA investigated the case as part of an Organized Crime Drug Enforcement Task Force operation, which Assistant U.S. Attorneys Mohammad Khatib and Jim Weil are prosecuting.
Federal Inmate Convicted of Conspiring with Nurse to Smuggle Prescription Drugs into Marion PrisonRead the Press Release
A federal inmate is potentially facing more time behind bars after he was caught trying to smuggle prescription narcotics into prison. Steven W. Snook, 42, pleaded guilty earlier today to conspiring with a licensed practical nurse and others to bring Suboxone (buprenorphine and naloxone) into the U.S. Penitentiary at Marion, Illinois, through the mail, to sell to other inmates. Snook also pleaded guilty to a charge of unlawfully attempting to obtain prison contraband. The charged offenses occurred between October 2016 and May 2017, while Snook was imprisoned at USP Marion for a prior drug trafficking offense.
As part of his guilty plea, Snook admitted entering into the illicit enterprise with his co-defendant, 36-year-old Jenny Martin of Tilton, Illinois – an acquaintance who was also a licensed practical nurse. During in-person visits at the prison, Snook and Martin discussed introducing Suboxone into USP Marion as a way to make money. Martin acquired the Suboxone strips illegally for $20 each and mailed them under the alias "Rachel Hall" to other inmates recruited by Snook. Snook instructed Martin how to conceal the Suboxone strips under the glued bottom flaps of the envelopes.
Evidence photograph of intercepted envelope.
In April 2017, prison officials discovered the plot and intercepted two pieces of mail with Suboxone strips hidden inside. A subsequent investigation revealed multiple wire transfers that Martin had received from Snook and others as payment for the Suboxone she provided.
Martin previously pleaded guilty for her role in the conspiracy and is due to be sentenced on Aug. 27, 2019. Snook’s sentencing is set for Oct. 16, 2019, at 10:00 a.m. at the United States District Court in Benton, Illinois. He faces up to 5 years imprisonment on each count, which by law must be served consecutively to the 262-month sentence he is still serving. Each count also carries a potential fine of up to $250,000.
The investigation leading to the charges in this case was conducted by the FBI and the Federal Bureau of Prisons. The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Federal Grand Jury Indicts Norwich Man for Firearm and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a three-count indictment charging DANIEL FRANCOIS, also known as “Bear,” 29, of Norwich, with firearm possession and drug trafficking offenses.
The indictment was returned on June 19, 2019, and Francois was arraigned today before U.S. Magistrate Judge Robert M. Spector in New Haven.
The indictment alleges that, on May 20, 2019, Francois distributed crack cocaine, and that he possessed two Davis model P-380 .380 caliber pistols in connection with his drug trafficking activity.
The indictment further alleges that Francois has been previously convicted of felony robbery and drug offenses.
The indictment charges Francois with one count of possession with intent to distribute, and distribution of cocaine base (“crack”), which carries a maximum term of imprisonment of 20 years; one count of possession of a firearm by a previously convicted felon, which carries a maximum term of imprisonment of 10 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive prison term of at least five years.
Francois has been detained since his arrest on May 20, 2019.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Ledyard and Norwich Police Departments, with the assistance of Connecticut State Parole. The case is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Federal Court Bars Florida Tax Return Preparer and Her Businesses from Preparing Tax ReturnsRead the Press Release
A federal court in Miami, Florida, permanently barred Georgina Gonzalez and GeorginagonzalezLLC, Ideal Tax Pros LLC, and Trinity Tax Service LLC, from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department announced today. The court also ordered that Gonzalez and Trinity Tax Service LLC disgorge $48,214.30, representing the ill-gotten gains that they received for the preparation of tax returns making false claims.
The government’s complaint alleged that the defendants prepared tax returns that included fraudulent claims for the Earned Income Tax Credit (EITC) based on fabricated income or business expenses. The complaint further alleged that defendants prepared returns for some customers that reported bogus “Household Help” work income, and returns claiming phony business loss deductions so as to falsely maximize their customers’ claim to the EITC. The complaint also alleged that defendants falsely claimed education credits on the tax returns of customers who did not attend college and had no qualifying education expenses.
The court’s disgorgement determination is based on ill-gotten gains stemming from tax returns filed in 2018 that falsely claimed either “Household Help” income, self-employed business income or expenses, or the EITC.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2019 and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Father and Son Sentenced to Prison in Multimillion-Dollar Investment Fraud SchemeRead the Press Release
A father and son who ran a complex investment fraud scheme by which they stole more than $10 million over the course of seven years were sentenced today to 60 months and 27 months in prison, respectively.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama and Special Agent in Charge Johnnie Sharp Jr. of the FBI Birmingham Field Office made the announcement.
Donald Watkins Sr., 70, of Atlanta, Georgia, and Donald Watkins Jr., 47, of Birmingham, Alabama, were sentenced by U.S. District Judge Karon O. Bowdre of the Northern District of Alabama. Judge Bowdre also ordered Donald Watkins Sr. to serve five years of supervised release and to pay restitution in the amount of $14,000,100.00 and ordered Donald Watkins Jr. to serve three years of supervised release and to pay restitution jointly with his father in the amount of $13,850,000.
The father and son co-defendants were convicted on March 8, 2019, following a jury trial that lasted over two weeks. Donald Watkins Sr. was convicted of seven counts of wire fraud, two counts of bank fraud and one count of conspiracy. Donald Watkins Jr. was convicted of one count of wire fraud and one count of conspiracy.
According to evidence presented at trial, between approximately 2007 and 2013, Donald Watkins Sr. sold “economic participations” and promissory notes connected with Masada Resource Group, a company that he ran as manager and CEO. Investors paid more than $10 million dollars after Donald Watkins Sr. and Donald Watkins Jr. falsely represented that the money would be used to grow Masada, which Donald Watkins Sr. described as a “pre-revenue” company that supposedly had technology that could convert garbage into ethanol. Instead of investing the money into Masada, however, Donald Watkins Sr. and Donald Watkins Jr. diverted funds to pay personal bills and the debts of their other business ventures, the evidence showed. Victim money was used to pay for Donald Watkins Sr.’s alimony, hundreds of thousands of dollars in back taxes, personal loan payments, a private jet and clothing purchased by Donald Watkins Jr. and his wife. Emails introduced at trial also showed that Donald Watkins Sr. and Donald Watkins Jr. planned to obtain millions of dollars for these purposes from one victim on multiple occasions, when they knew that this victim and other victims trusted them to put their money to use in growing Masada.
Donald Watkins Sr. also was convicted of defrauding Alamerica Bank, an entity in which Donald Watkins Sr. held a controlling interest through his ownership of Alamerica Bank Corp stock, the evidence showed. In order to pay hundreds of thousands of dollars in litigation expenses associated with another one of Donald Watkins Sr.’s business ventures, Donald Watkins Sr. executed a plan to use a straw borrower to take out money from Alamerica Bank and use those funds to pay the defendant’s litigation expenses. This straw borrower—Donald Watkins Sr.’s long-time mentor and a prominent figure in the Birmingham community—took over $900,000 in loans from Alamerica Bank and then immediately permitted Donald Watkins Sr. to use those funds for his personal benefit, the evidence showed.
The investigation was conducted by the FBI’s Birmingham Field Office. Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Lloyd C. Peeples III, Special Assistant U.S. Attorney Beau Brown (on detail from the Alabama Securities Commission) and Special Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama prosecuted the case.
Father and Son Sentenced to Prison in Multimillion-Dollar Investment Fraud SchemeRead the Press Release
WASHINGTON – A father and son who ran a complex investment fraud scheme by which they stole more than $10 million over the course of seven years were sentenced today to 60 months and 27 months in prison, respectively.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama and Special Agent in Charge Johnnie Sharp Jr. of the FBI Birmingham Field Office made the announcement.
Donald Watkins Sr., 70, of Atlanta, Georgia, and Donald Watkins Jr., 47, of Birmingham, Alabama, were sentenced by U.S. District Judge Karon O. Bowdre of the Northern District of Alabama. Judge Bowdre also ordered Donald Watkins Sr. to serve five years of supervised release and to pay restitution in the amount of $14,000,100.00 and ordered Donald Watkins Jr. to serve three years of supervised release and to pay restitution jointly with his father in the amount of $13,850,000.
The father and son co-defendants were convicted on March 8, 2019, following a jury trial that lasted over two weeks. Donald Watkins Sr. was convicted of seven counts of wire fraud, two counts of bank fraud and one count of conspiracy. Donald Watkins Jr. was convicted of one count of wire fraud and one count of conspiracy.
“These defendants sought to enrich themselves through wire and bank fraud,” Town said. “The sentences give notice to the public that the Department of Justice stands ready with the resources to investigate and prosecute similar offenders.”
“Today’s sentence should send a message to those who would engage in financial fraud,” Sharp said. “We are pleased that the Watkins are being held accountable for their crimes and that they were ordered to pay restitution to the victims. The FBI will continue to work with our law enforcement partners to investigate and prosecute those who commit complex financial crimes.”
According to evidence presented at trial, between approximately 2007 and 2013, Donald Watkins Sr. sold “economic participations” and promissory notes connected with Masada Resource Group, a company that he ran as manager and CEO. Investors paid more than $10 million dollars after Donald Watkins Sr. and Donald Watkins Jr. falsely represented that the money would be used to grow Masada, which Donald Watkins Sr. described as a “pre-revenue” company that supposedly had technology that could convert garbage into ethanol. Instead of investing the money into Masada, however, Donald Watkins Sr. and Donald Watkins Jr. diverted funds to pay personal bills and the debts of their other business ventures, the evidence showed. Victim money was used to pay for Donald Watkins Sr.’s alimony, hundreds of thousands of dollars in back taxes, personal loan payments, a private jet and clothing purchased by Donald Watkins Jr. and his wife. Emails introduced at trial also showed that Donald Watkins Sr. and Donald Watkins Jr. planned to obtain millions of dollars for these purposes from one victim on multiple occasions, when they knew that this victim and other victims trusted them to put their money to use in growing Masada.
Donald Watkins Sr. also was convicted of defrauding Alamerica Bank, an entity in which Donald Watkins Sr. held a controlling interest through his ownership of Alamerica Bank Corp stock, the evidence showed. In order to pay hundreds of thousands of dollars in litigation expenses associated with another one of Donald Watkins Sr.’s business ventures, Donald Watkins Sr. executed a plan to use a straw borrower to take out money from Alamerica Bank and use those funds to pay the defendant’s litigation expenses. This straw borrower—Donald Watkins Sr.’s long-time mentor and a prominent figure in the Birmingham community—took over $900,000 in loans from Alamerica Bank and then immediately permitted Donald Watkins Sr. to use those funds for his personal benefit, the evidence showed.
The investigation was conducted by the FBI’s Birmingham Field Office. Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Lloyd C. Peeples III, Special Assistant U.S. Attorney Beau Brown (on detail from the Alabama Securities Commission) and Special Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama prosecuted the case.
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Elm City Man Sentenced to 13 Years for Drug ConspiracyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced RODNEY DURRELL THOMAS, also known as “LIL BRUH,” 21, of Elm City, North Carolina to 156 months imprisonment, followed by 5 years of supervised release.
The prosecution of THOMAS was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF), entitled Tri County Hook Up, announced by the United States Attorney’s Office earlier this summer, which resulted in the arrest of several defendants for outstanding federal and state charges in a coordinated warrant enforcement operation. The investigation focused on heroin and cocaine trafficking in Nash, Edgecombe and Wilson counties.
THOMAS was named in an eleven-count Indictment filed on June 13, 2018 charging him with a drug conspiracy running from at least August 1, 2017 until mid-June of 2018. Specifically, THOMAS was charged with conspiracy to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin, a quantity of marijuana, twenty-eight (28) grams or more of cocaine base (crack) and a quantity of cocaine; as well as possession with the intent to distribute and distribution of twenty-eight (28) grams or more of cocaine base (crack) and a quantity of cocaine. On February 15, 2019, THOMAS pled guilty to those charges.
According to the investigation, THOMAS was a part of a drug trafficking organization that distributed cocaine, cocaine base (crack), heroin, and marijuana throughout the Nash, Edgecombe and Wilson counties. As part of the investigation, law enforcement recorded telephone calls where THOMAS discussed the drug conspiracy with his co-defendants and made arrangements for further drug transactions. THOMAS sold 10 bricks of heroin each, which is approximately 1000 individual bags, on two occasions from his home in Elm City, NC. THOMAS frequently possessed firearms in connection with the drug conspiracy and received a firearm sentencing enhancement. Additionally, THOMAS fled from law enforcement in a reckless manner and received a sentencing enhancement for reckless endangerment.
On December 13, 2018, the Court sentenced Michael Speight, 26, of Elm City, North Carolina to 60 months imprisonment, followed by 3 years of supervised release; MARCUS ANTWAN WILEY, also known as “MARK,” 29, of Elm City, North Carolina was sentenced to 57 months imprisonment, followed by 3 years of supervised release; and TRAVIS KWYMAINE RUFFIN, 29, of Wilson, North Carolina was sentenced to 54 months imprisonment, followed by 3 years supervised release for their roles in the drug conspiracy. At the time of the instant offense, WILEY was on supervised release resulting from a 2009 federal conviction of conspiracy to commit armed bank robbery, armed bank robbery, and the use and carrying of a firearm during and in relation to a crime of violence. After WILEY admitted to the criminal activity, his term of supervised release was revoked and he was sentenced to an additional 37 months’ imprisonment to be served at the conclusion of his sentence for the drug conspiracy. On January 28, 2019, MARQUICE QUASHAWN MCCOY, 30, of Rocky Mount, North Carolina was sentenced to 70 months imprisonment, followed by 3 years supervised release for his involvement in the drug conspiracy. On March 4, 2019, DE’ANDRE ANTHONY LUCAS, 29, of Rocky Mount, North Carolina was sentenced to 15 months imprisonment, followed by 3 years supervised release for his involvement in the drug conspiracy. On April 17, 2019, SHAQUANDRA MCALLISTER, 28, of Wilson, North Carolina was sentenced to 42 months imprisonment, followed by 5 years supervised release for her involvement in the drug conspiracy.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For moe information about this intiative please click here: https://www.justice.gov/usao-ednc/tbnc.
Investigation of this enforcement operation was conducted by the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), the United States Marshal Service (USMS), United States Probation Office, Nash County Sheriff’s Office, Wilson Police Department, Rocky Mount Police Department, Edgecombe County Sheriff’s Office, Tarboro Police Department, Spring Hope Police Department, Nashville Police Department, North Carolina State Bureau of Investigation, and the North Carolina Department of Public Safety. Assistant United States Attorney Dena King represented the government.
Elizabeth City Man Sentenced for Convenience Store RobberyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever III sentenced RASHEEN JEROME ARNOLD, 24, of Elizabeth City, North Carolina to 114 months imprisonment, followed by 3 years of supervised release.
ARNOLD was named in an Indictment filed on July 25, 2018 charging him with Possession of a Firearm by a Felon. On January 22, 2019, ARNOLD pled guilty to those charges.
On April 25, 2018 ARNOLD approached victims outside of Friendly Check Cashing in Edenton. ARNOLD demanded money and when they said they didn’t have any, he pulled a firearm from his pocket and said he would kill them if they did not give him money. One victim went into Friendly Check Cashing and returned with $12. ARNOLD said that wasn’t enough and demanded more. This time when the victim went into the check cashing business the victim called 911 and reported that he was being robbed. Officers with the Edenton Police Department responded to the area and ARNOLD ran when he saw the officers. The officer detained ARNOLD after a brief foot chase and a firearm was recovered from ARNOLD’S pants pocket. ARNOLD is a previously convicted felon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
The investigation of this case was conducted by the Edenton Police Department as well as the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Charity Wilson.
East Haven Man Admits Role in Scheme to Defraud Illinois CompanyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN T. FINKLE III, 57, of, East Haven, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of conspiracy to commit mail and wire fraud related to a scheme to defraud an Illinois-based company.
According to court documents and statements made in court, Finkle was employed by an Illinois-based supplier of electronic components (“Company A”). Between approximately February 2015 and December 2018, Finkle conspired with Kenneth Pedroli to defraud Company A through a scheme involving purchases of electronic components that Pedroli made from Company A for a business he operated in Islandia, New York. As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of Company A’s published prices. After Pedroli’s orders were submitted to Company A at the discounted prices, the products were shipped from Company A to Pedroli. Finkle instructed Pedroli to pay only a portion of the invoiced price and to make the payments directly to Finkle, which Pedroli did. Finkle deposited the payments into his personal checking account and provided a portion of the funds to another Company A employee who manipulated the accounting records of Company A to make it appear that Pedroli had paid Company A for the products he received.
The government contends that Company A was defrauded of more than $3 million through this scheme.
Judge Hall scheduled sentencing for October 8, 2019, at which time Finkle faces a maximum term of imprisonment of 20 years.
Finkle is released on a $500,000 bond pending sentencing.
Pedroli, of Stony Brook, New York, pleaded guilty to the same offense on April 29, 2019, and awaits sentencing.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Doctor and Three Others in Bergen County Charged in $10 Million Health Care Fraud SchemeRead the Press Release
Allegedly Paid and Received Kickbacks in Connection with Medically Unnecessary Prescriptions for Pain Creams
NEWARK, N.J. – A doctor and three people associated with a pharmacy were charged today with their respective roles in defrauding the federal workers’ compensation program in a $10 million scheme involving illegal kickbacks and medically unnecessary prescriptions for pain creams, U.S. Attorney Craig Carpenito announced.
Mark Filippone M.D., 71, of Wallington, New Jersey; Joseph Miller, 33, a/k/a “Joseph Vangelas,” of Fort Lee, New Jersey; Marlene Vangelas, 58, of River Vale, New Jersey; and Zachary Ohebshalom, 33, of Edgewater, New Jersey, were each charged by complaint with one count of conspiring to commit health care fraud and one count of violating the federal anti-kickback statute. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning in November 2015, the defendants conspired to obtain more than $10 million in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who traveled from as far away as Florida and Georgia to see him.
Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The complaint alleges that Filippone steered these prescriptions to a pharmacy in Fairlawn, New Jersey, which was owned and operated by Miller and Vangelas, who, along with Ohebshalom, directed their pharmacists to mine reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. The trio then printed prescription labels for Filippone to use with his patients. Dr. Filippone used the pre-printed labels and sent the prescriptions back to Miller, Vangelas, and Ohebshalom. In order to induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they wished to obtain, Miller and Vangelas purchased Filippone’s medical office for above fair market value, and then permitted Dr. Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, Vangelas, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to feed prescriptions to the pharmacy, so long as Miller and Vangelas permitted him to remain rent-free in the property.
The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison; the count of violating the federal anti-kickback statute is punishable by a maximum penalty of five years in prison. Both counts are also punishable by a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigations, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney David M. Eskew, Chief of the Health Care & Government Fraud Unit in the Criminal Division, Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
District Administrator for Muncie Sanitary District and Muncie contractor indictedRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Debra Nicole Grigsby (“Nikki Grigsby”), the District Administrator for the Muncie Sanitary District, and Tony Franklin, the owner of Franklin Building, and Design, LLC, have been indicted on charges of conspiracy to commit wire fraud, wire fraud, making false statements, and falsification of documents in a federal investigation.
Grigsby, 44, Muncie, Indiana, and Franklin, 60, Yorktown, Indiana, were arrested this morning without incident and will have their initial appearance this afternoon at the federal courthouse in Indianapolis.
The arrests are part of a multi-year and on-going investigation by the Federal Bureau of Investigation and the Internal Revenue Service, into the payment of kickbacks in exchange for public works projects and other corruption-related matters in Muncie that have resulted in the following federal cases:
United States v. Craig Nichols, 17-CR-0021-TWP-DML
United States v. Tracy Barton, 18-CR-284-JMS-DLP
United States v. Jeff Burke, 18-CR-285-SEB-DLP
United States v. Rodney Barber, 19-CR-190-JMS-DML
“Public servants need to serve the public instead of serving themselves,” said Minkler. “When someone betrays the public’s trust by stealing tax dollars for personal enrichment, my office will identify, investigate and, if the evidence supports a charge, prosecute the individual who violates that sacred trust.”
Grigsby has served as Muncie Sanitary District’s District Administrator since 2013, and was responsible for approving the selection of contractors to perform work on Muncie Sanitary District infrastructure projects. The indictment alleges that Grigsby abused her position of public trust and agreed to steer contracts for work arising out of infrastructure projects for the Muncie Sanitary District to Franklin, the owner of Franklin Building and Design, LLC, in exchange for kickbacks.
“The indictment and arrest of these two individuals is one more step in an ongoing investigation to identify any and all public officials or private citizens who have committed federal crimes and victimized the tax paying citizens of Muncie, Indiana,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “Investigating public officials who exploit their official position for personal gain and erode the public’s confidence in government is one of the FBI’s top criminal priorities and is the sole purpose of the Indiana Public Corruption Task Force.”
According to Assistant U.S. Attorney Tiffany J. Preston who is prosecuting this case for the government, Grigsby and Franklin face up to 20 years’ imprisonment if convicted of all charges.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3
Disbarred Attorney Sentenced to Two Years in Prison for Stealing $2 Million from Would-Be Real Estate InvestorsRead the Press Release
Earlier today, in federal court in Central Islip, Alice Belmonte, a disbarred attorney formerly with offices in Long Island and Manhattan, was sentenced by United States District Judge Denis R. Hurley to 24 months’ imprisonment for engaging in a wire fraud scheme and stealing $2 million from victims who believed they were giving her money to invest in real estate. Belmonte was also ordered to pay $2 million in restitution to those victims. In September 2017, Belmonte pleaded guilty to wire fraud.
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, New York Field Office (FBI), announced the sentence.
“Alice Belmonte, falsely holding herself out as an experienced practicing attorney, prevailed upon investors to trust her with their money and then stole it from them,” stated United States Attorney Donoghue. “With today’s sentence, she has been held responsible for her crime. Together with our law enforcement partners, this Office will continue to hold accountable those who violate the trust of others to enrich themselves.”
Shortly after being disbarred for misconduct in February 2013, Belmonte held herself out as an attorney who could assist clients in acquiring real estate investments. Belmonte communicated with her victim investors with emails sent from her “[email protected]” address. Relying on Belmonte’s purported expertise, the investors deposited $2 million into an escrow account she opened. The funds were supposed to be held in escrow until a suitable portfolio of real estate properties could be purchased. Between March and June 2013, Belmonte contacted the escrow agent, using falsified email addresses in the names of her victims, and sent fraudulent instructions purporting to authorize the transfer of the $2 million to a second bank account she controlled in the name, “Alice Phillips Belmonte Attorney Escrow Account.” Belmonte then diverted the funds to yet additional accounts she controlled by forging fraudulent disbursement instructions, ostensibly from one of the victims. The victims’ money was never invested in real estate for them, nor did they receive their money back.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Artie McConnell is in charge of the prosecution.
The Defendant:
ALICE BELMONTE (also known as “Alice Marie Phillips” and “Alice Marie Ward”)
Age: 53
Wading River, New YorkE.D.N.Y. Docket No. 16-CR-260 (DRH)
Department of Justice Announces Extradition of Iranian National and Unsealing of Charges against Two Other Men for Exporting Carbon Fiber from the United States to IranRead the Press Release
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director John Brown of the FBI’s Counterintelligence Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office announced the extradition of Behzad Pourghannad and the unsealing today of a three-count indictment charging Pourghannad, Ali Reza Shokri and Farzin Faridmanesh with exporting carbon fiber from the United States to Iran. Pourghannad, an Iranian national, was arrested on those charges on May 3, 2017, in Germany and was extradited to the U.S. Pourghannad arrived in the Southern District of New York yesterday, and was presented today in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy. Shokri and Faridmanesh remain at large.
“Pourghannad is alleged to have sought to procure for Iran large amounts of carbon fiber — a commodity that can be used in the enrichment of uranium,” said Assistant Attorney General Demers. “U.S. sanctions exist to prevent behavior, like this, which endangers our country, and the Department is committed to vigorously enforcing them. Pourghannad and others who would attempt to thwart these laws need to know that their actions, which benefit Iran’s destabilizing efforts and make Americans less safe, will not go unpunished.”
“Carbon fiber has many aerospace and defense applications, and is strictly controlled to ensure that it doesn’t fall into the wrong hands,” said U.S. Attorney Geoffrey Berman. “Pourghannad and his co-defendants allegedly went to great lengths to circumvent these controls and the United States’ export laws. Together with our law enforcement partners, we will continue to protect our nation’s assets and protect our national security.”
“This case shows the FBI aggressively pursues those who break the law and violate sanctions against Iran,” said Assistant Director Brown. “Iran remains determined to acquire U.S. technology with military applications, and the FBI is just as determined to stop such illegal activity. The charges against these three Iranian nationals, and the extradition of Mr. Pourghannad, demonstrate we take Iran's actions extremely seriously and will work with our partners to defeat them.”
“Iran’s continued pursuit of technology and materials to advance its nuclear program remains a threat to the US and the rest of the world,” said Assistant Director in Charge Sweeney. “The FBI New York and SDNY will continue to pursue these illicit proliferation activities, and bring the full investigative and law enforcement capabilities of the U.S. to bear on those who would help Iran advance its dangerous agenda. If you aid Iran in its efforts, you will be held accountable.”
According to the allegations contained in the Indictment, unsealed in White Plains federal court[1]:
Between 2008 and July 2013, Pourghannad, Shokri and Faridmanesh lived and worked in Iran. During that period, they worked together to obtain carbon fiber from the U.S. and surreptitiously export it to Iran via third countries. In particular, Shokri worked to procure many tons of carbon fiber from the U.S.; Pourghannad agreed to serve as the financial guarantor for large carbon fiber transactions; and Faridmanesh agreed to serve as the trans-shipper. Carbon fiber has a wide variety of uses, including in missiles, aerospace engineering, and gas centrifuges that enrich uranium.
In late 2007 and early 2008, Shokri and a Turkey-based co-conspirator (CC-2) successfully arranged for the illegal export and trans-shipment of carbon fiber from the U.S. to an Iranian company associated with Shokri (Iranian Company-1). Specifically, CC-2 contacted a U.S. supplier of carbon fiber, who in turn enlisted a third individual (Individual-1) for assistance with the transaction. Through Individual-1, CC-2 purchased carbon fiber from the U.S. supplier and arranged for the shipment of the carbon fiber from the U.S., through Europe and Dubai, United Arab Emirates, to Iranian Company-1, operated by Shokri, in Iran.
In May 2009, Pourghannad and Shokri attempted to arrange another illegal purchase and trans-shipment of carbon fiber from the U.S. to Iran. Specifically, Individual-1 returned a signed contract to Pourghannad for Shokri’s purchase of a large quantity of carbon fiber. Individual-1 then purchased the carbon fiber from a U.S. supplier and arranged for the carbon fiber to be exported from the U.S. to a third country (Country-1), en route to Iran. Country-1 authorities, however, interdicted the carbon fiber shipment before it could be trans-shipped to Iran.
In 2013, Pourghannad, Shokri, and Faridmanesh again attempted to illegally procure and export carbon fiber from the U.S. to Iran. In the 2013 transaction, Shokri and Pourghannad negotiated with Individual-1 for the purchase and trans-shipment to Iran of more than 5 tons of carbon fiber. Faridmanesh and Pourghannad further agreed with Individual-1 that the carbon fiber would be trans-shipped from the U.S. to Iran through Tbilisi, Georgia, with Faridmanesh to serve as the trans-shipper. Faridmanesh specifically instructed Individual-1 to change the shipping labels on the carbon fiber to reference “acrylic” or “polyester,” rather than “carbon fiber.” Pourghannad provided Individual-1 with the bank guarantee that was to serve as surety for a portion of the carbon fiber. In June 2013, Individual-1 informed Pourghannad, Shokri, and Faridmanesh that the carbon fiber would soon be shipped from Manhattan and that Individual-1 would replace the carbon fiber labels with shipping labels referencing “acrylic” to evade U.S. export controls.
No one involved in these transactions obtained permission from the U.S. Department of Treasury, Office of Foreign Assets Control, to export the carbon fiber from the U.S.
* * *
Pourghannad, 65, Shokri, 61, and Faridmanesh, 48, all of whom are Iranian citizens, are each charged with one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA), which carries a maximum sentence of 20 years in prison, and two counts of violation and attempted violation of IEEPA, each of which also carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Demers and Mr. Berman praised the outstanding investigative work of the FBI, and thanked the New York Field Office of the U.S. Department of Commerce, the U.S. Department of Justice’s Office of International Affairs, the U.S. Marshals Service, Homeland Security Investigations, and Immigration and Customs Enforcement for their assistance. Mr. Demers and Mr. Berman also thanked German law enforcement for their assistance in the arrest and apprehension of Pourghannad.
This case is being handled by the Office’s Terrorism and International Narcotics Unit, with assistance from the Counterintelligence and Export Control Section of the National Security Division. Assistant United States Attorney Gillian Grossman is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Delhi farmer pleads guilty to lying to various business and government entities to steal nearly $17 millionRead the Press Release
MONROE, La. – A Delhi, Louisiana, farmer pleaded guilty Monday to lying to more than seven financial institutions, insurance providers and government entities in an effort to obtain nearly $17 million illegally, U.S. Attorney David C. Joseph announced. Thomas Dickerson, 45, pleaded guilty before U.S. District Judge Terry Doughty for making false statements to the Commodity Credit Corporation.
According to the guilty plea, Dickerson was a Franklin Parish Louisiana farmer who, during the 2015 crop year, used at least 13 farming entities he was either a part of or was the sole owner of to certify farming acreage in Catahoula, Franklin, Tensas, Richland, Madison and Morehouse parishes in Louisiana, as well as Ashley, Chicot and Drew Counties in Arkansas. He applied for crop production and grain storage loans from AG Resource Management, farm operating loans from various FDIC insured banking entities, credit from seed and chemical dealers such as Greenpoint AG LLC and Jimmy Sanders Seed, advances on contracts with Kennedy Rice Dryers, insurance policies and claims from Producers Agriculture Insurance Company and CGB Insurance Company, and several marketing assistance loans from the Commodity Credit Corporation. Dickerson lied on many of these applications in order to obtain loans and other compensation by overstating or understating the amount of crops produced or claiming crops as collateral when he’d already sold the crops or didn’t possess them. He stole $16,985,409.71 during the course of the scheme.
“This case should serve as a warning to those who engage in crooked financial schemes,” Joseph stated. “The Department of Justice is committed to protecting taxpayer money set aside to help our farmers and prosecuting those who cheat financial institutions and insurance companies for personal gain. The defendant’s conduct in this case not only caused significant financial loss to victims throughout northeast Louisiana, but also undermined the integrity of our agricultural finance system. This type of behavior will not be tolerated in the Western District of Louisiana.”
Dickerson faces up to 10 years in prison, three years of supervised release, restitution and a $10,000 fine. Sentencing is scheduled for November 6, 2019.
The U.S. Department of Agriculture, Office of Inspector General, investigated the case. United States Attorney David C. Joseph and Assistant U.S. Attorney Tiffany E. Fields are prosecuting the case.
Delaware Man Indicted in Project Safe Neighborhoods CaseRead the Press Release
PITTSBURGH, PA - A resident of Middletown, Delaware, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Tyrone Pratt aka Tyrone Booker, 37, as the sole defendant.
According to the indictment, on May 8, 2019, Pratt was found in possession of a firearm and ammunition after having already been convicted of at least one crime punishable by a term of imprisonment exceeding one year.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Allegheny County Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Day Trader Pleads Guilty to Computer Hacking and Securities Fraud Scheme Targeting Online Brokerage AccountsRead the Press Release
Earlier today, in federal court in Brooklyn, Joseph P. Willner, a self-described day trader, pleaded guilty to conspiring to commit securities fraud and illegally profiting from a series of coordinated trades involving more than 50 hacked online brokerage accounts. The plea took place before United States District Judge Margo K. Brodie. When sentenced, Willner faces up to five years in prison, as well as forfeiture and a fine of up to twice the gross loss caused by the conspiracy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, announced the guilty plea. Mr. Donoghue expressed his grateful appreciation to the United States Securities and Exchange Commission and the United States Commodity Futures Trading Commission for their significant assistance in the investigation.
“Willner and his co-conspirators used computer hacking to take the pump out of pump and dump, eliminating the need to trick investors into buying artificially inflated stock by simply hacking into brokerage firm accounts and having them buy the stock unbeknownst to the brokerage firms,” stated United States Attorney Donoghue. “While the approach was novel, the end result was all the same, with the defendant being held accountable for his criminal acts. No matter what cyber techniques fraudsters use, this Office and our law enforcement partners will bring them to justice.”
As alleged in the indictment and other court filings, between September 2014 and May 2017, Willner used his brokerage accounts to place “short sale” offers for publicly traded companies’ stock at artificially high market prices. Simultaneously, Willner’s co-conspirators hacked into victims’ online brokerage accounts and placed buy orders for the stock at the artificially high prices, matching Willner’s short sale offers. Willner and his co-conspirators then re-purchased the stock from the victims’ accounts at market or below-market prices. This sequence of fraudulent trades usually took place within minutes, and Willner immediately profited based on the difference between his artificially high short sale price and the lower price at which he re-purchased the stock.
As a result of Willner’s and his co-conspirators’ actions, the affected brokerage firms lost more than $2 million.
The government’s case is being prosecuted by the U.S. Attorney’s Office Business and Securities Fraud and National Security and Cybercrime Sections, and the Securities and Financial Fraud Unit of the Department of Justice Fraud Section. Assistant United States Attorneys Mark E. Bini and Craig R. Heeren and Department of Justice Trial Attorney Cory E. Jacobs are in charge of the prosecution.
The Defendant:
JOSEPH P. WILLNER
Age: 44
Ambler, PennsylvaniaE.D.N.Y. Docket No. 17-CR-620 (MKB)
Dallas County Man Sentenced to 37 Months for Possession of a Firearm After Conviction of a FelonyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Anthony Crusoe, a 42 year old resident of Mobile, Alabama was sentenced to 37 months of incarceration for possession of a Taurus 9mm pistol.
On March 28, 2019, Crusoe entered a guilty plea pursuant to a plea agreement and admitted in open court that on April 9, 2018, Mary Safford went to Rountree Outdoors in Selma, Alabama and filled out ATF Form 4473 so she could buy a 9mm pistol. On ATF Form 4473, Safford said that she was the transferee/buyer of the firearm knowing that was not true. In truth and in fact she was buying the firearm for Anthony Crusoe who she knew was a convicted felon. This untruthful statement was material to the lawfulness of the sale of the firearm. Safford was a straw purchaser of the firearm. On August 22, 2018, law enforcement officers attempted to execute an arrest warrant issued for Anthony Crusoe. They traveled to his home in Selma, Alabama. Some officers went to the front door and other officers went to the area behind the house. The front door officers knocked on the front door. No one answered. A few minutes later, the behind the house officers, observed Crusoe attempting to get into a vehicle that was parked behind his house while holding a blue duffel bag. Officers attempted to arrest Crusoe and he fled but was apprehended a short time later hiding in some bushes with the blue duffel bag. Crusoe was arrested and the Taurus pistol was found inside the blue duffle bag. At the time, Crusoe was a felon, due to his previous conviction for Unlawful Possession of Marijuana 1st Degree on February 13, 2003. Crusoe told law enforcement officers that he gave Safford $260 to buy the firearm for him after he picked it out and told her which firearm to buy. Safford told law enforcement officers that she purchased the firearm and within a week of the purchase, Crusoe was in possession of it.
Officers of the Selma, AL Police Department along with special agents of the ATF investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Dallas County Man Sentenced to 11 Months After Revocation of His Supervised ReleaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Rodney Blythe, a 49 year old resident of Selma, Alabama was sentenced to 11 months of incarceration after his supervised release term was revoked.
On July 11, 2019, Blythe admitted in open court that was convicted in the Municipal Court of Steele, Alabama of operating a vehicle under the influence of alcohol. United States District Court Judge Terry Moorer then revoked Blythe’s supervised release and admonished him telling Blythe that he placed innocent unsuspecting members of the community in danger by his conduct. Judge Moorer then sentenced Blythe to 11 months incarceration followed by 48 months of supervised release. The terms of his supervised release include alcohol counseling and complete alcohol abstinence.
Blyther was supervised by Jason Estes, Probation Officer, United States Probation Office, Southern District of Alabama. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.Convicted Felon Sentenced for Firearm OffenseRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for being a felon in possession of a firearm and ammunition.
David Amadin, 27, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 63 months in prison and three years of supervised release. In April 2019, Amadin pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
On July 9, 2018, after attempting to flee from law enforcement officers, Amadin was found in possession of a Springfield Amory Model 45 ACP XD5 .45 caliber semi-automatic pistol that contained five rounds of ammunition. Amadin had previously been convicted of a crime punishable by more than one year in prison and was therefore prohibited from possessing a firearm and ammunition. The gun had previously been reported stolen.
United States Attorney Andrew E. Lelling and Boston Police Commissioner William Gross made the announcement today. The case was prosecuted by Lelling’s Organized Crime and Gang Unit.
Conspiring to Distribute 15 Pounds of Ice Methamphetamine Lands Cedar Rapids Man in Federal Prison for 14 YearsRead the Press Release
A man who obtained more than 15 pounds of ice methamphetamine for redistribution in the Cedar Rapids, Iowa, area was sentenced July 11, 2019, to 14 years in federal prison.
Jonathan James Toomer, age 44, from Cedar Rapids, Iowa, received the prison term after a November 2, 2018, guilty plea to conspiring to distribute methamphetamine near a school and playground and possessing a firearm as an unlawful drug user.
Evidence at a prior hearing showed that, beginning in 2016, Toomer sold methamphetamine in the Cedar Rapids area. In the fall of 2017, Toomer acquired a California source for methamphetamine. Over the next approximately nine months, Toomer and his co-conspirators took multiple trips to California to obtain pounds of ice methamphetamine for resale in Cedar Rapids. In January 2018, officers executed a warrant at defendant’s house and camper in Hiawatha, Iowa. Inside defendant’s camper, the officers found approximately 80 grams of ice methamphetamine, drug ledgers, and a loaded handgun. Officers also seized over $44,000 in cash proceeds of Toomer’s prior methamphetamine sales inside a safe in the house.
Toomer also involved his minor child in the drug scheme, including taking him on trips to California to obtain methamphetamine. After Toomer was arrested on the federal drug charge, he spoke to his son from jail, directing him to pick up a package of methamphetamine that had been delivered to his trailer, and to contact his drug source in California and “stop all calls.”
Toomer was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Toomer was sentenced to 168 months’ imprisonment. He was ordered to forfeit a handgun and $78,947 in drug proceeds. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Toomer is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Special Assistant United States Attorney Drew Inman and Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00050-LTS-MAR.
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Colorado Man Sentenced for False Statement During Purchase of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Pueblo, Colorado, man convicted of False Statement During Purchase of Firearm was sentenced on July 15, 2019, by U.S. District Judge Karen E. Schreier.
David Aaron Freyn, age 40, was sentenced to 2 years of probation, 40 hours of community service, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Freyn was indicted by a federal grand jury on May 8, 2018. He pled guilty on April 22, 2019.
The conviction stemmed from an incident on November 6, 2016, when Freyn purchased a firearm at a gun shop in Sioux Falls, South Dakota. Freyn filled out a Department of Justice, Bureau of Alcohol, Tobacco, Firearms, and Explosives Form 4473, Firearms Transaction Record; however, Freyn knowingly made a false and fictitious written statement on that form when he claimed that he was the actual buyer of the firearm, when, in fact, he was not. Freyn knew he was purchasing the firearm for another person and knowingly made the false statement. The other person was a felon that was prohibited from purchasing or possessing firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearm, and Explosives. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Charleston Man Sentenced to Prison for Firearm OffenseRead the Press Release
HUNTINGTON, W.Va. – Marcus Smith, 46, from Charleston, West Virginia, was sentenced to 37 months in prison, announced United States Attorney Mike Stuart. Smith previously pled guilty today to being a felon in possession of a firearm.
On August 29, 2017, a Hurricane Police Officer conducted a traffic stop in Hurricane. Smith was a passenger in the vehicle. Officers located a loaded firearm under his seat. Smith was prohibited from possessing the firearm under federal law because of multiple prior felony convictions.
The case was investigated by the Hurricane Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Brackenridge Man Charged with Armed Robbery of Brackenridge Credit UnionRead the Press Release
PITTSBURGH, PA - A criminal complaint has been filed in federal court charging a resident of Brackenridge, PA., with the July 10, 2019 armed robbery of the Allegheny-Ludlum Brackenridge Federal Credit Union, United States Attorney Scott W. Brady announced today.
The one-count Criminal Complaint named Thomas George as the sole defendant. George made his initial appearance in federal court today before Chief Magistrate Judge Cynthia Reed Eddy. George has been detained without bail pending a preliminary hearing.
According to the Affidavit in Support of the Criminal Complaint, on July 10, 2019 at around 2 p.m. George entered the Allegheny-Ludlum Brackenridge Federal Credit Union, located at 1131 Brackenridge Avenue in Brackenridge, PA, armed with a handgun and took approximately $101,000 in $5 and $10 denominations from the vault located in the teller area. The Affidavit also says that an eyewitness tip regarding a potential getaway vehicle led to the identification of George as the person responsible for the armed robbery.
The law provides for a maximum total sentence of 25 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the charges in this case.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that the defendant is guilty of an offense.
Boston Man Sentenced for Selling Fentanyl Near PlaygroundRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for selling fentanyl near a playground.
Joshua Miranda, 28, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years in prison and six years of supervised release. In April 2019, Miranda pleaded guilty to two counts of distribution of fentanyl within 1,000 feet of a playground. At the time of these violations, Miranda was already on supervised release in federal court on a prior firearms offense.
On June 8, 2017, and again on June 19, 2017, Miranda distributed fentanyl within 1,000 feet of Robert Ryan Playground in Dorchester.
United States Attorney Andrew E. Lelling and Boston Police Commissioner William Gross made the announcement today. The case was prosecuted by Lelling’s Organized Crime and Gang Unit.
Berkeley County woman admits to role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Courtney Guess, of Martinsburg, West Virginia, has admitted to her role in a cocaine, heroin, and fentanyl distribution operation, United States Attorney Bill Powell announced.
Guess, age 24, pled guilty to one count of “Distribution of Heroin.” Guess admitted to selling heroin in Berkeley County in May 2018.
Guess is facing 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. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the cases on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department 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 Robert W. Trumble presided.
Berkeley County woman admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Mary Virginia Cook, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Cook, age 26, pled guilty to one count of “Aiding and Abetting a False Statement During Purchase of Firearms.” Cook admitted to making false statements when purchasing a .40 caliber pistol and a 9mm pistol in Berkeley County in February 2018.
Cook is facing up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.