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Thursday 11 July 2019
Bozeman area man charged with destruction of government propertyRead the Press Release
MISSOULA—A Bozeman area man appeared in court today on charges of destruction of government property, U.S. Attorney Kurt Alme said.
William David Hutton, 54, had an initial appearance on a criminal complaint before U.S. Magistrate Judge Jeremiah C. Lynch. Hutton waived a preliminary hearing. Judge Lynch detained Hutton pending further proceedings.
The complaint charges Hutton with destruction/attempted destruction of government property. Court documents allege Hutton drove his vehicle into an entrance of the Bozeman Federal Building, at 10 East Babcock St., on July 8.
The complaint is merely an accusation and Hutton is presumed innocent until proven guilty. If convicted of the most serious crime, Hutton faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
Assistant U.S. Attorney Jeff Starnes is prosecuting the case, which was investigated by the FBI, Federal Protective Service and Bozeman Police Department.
Pacer case reference. 19-mj-45-JCL. If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Boston Man Arrested on Firearms OffenseRead the Press Release
BOSTON – A Boston man was charged in federal court in Boston yesterday in connection with the unlicensed transportation of a firearm.
Kenny Romero, 24, was charged with one count of unlicensed transportation of firearms. Romero was arrested on Tuesday night and appeared in federal court in Boston yesterday before U.S. District Court Magistrate Judge Donald L. Cabell, who issued a voluntary order of detention.
According to court documents, law enforcement officers discovered Romero to be in possession of a firearm during a vehicle stop in December 2016. Subsequent investigation revealed that the firearm, which had allegedly been used in a shooting earlier that month, was purchased in Virginia in November 2016. Federal agents learned that another individual purchased the firearm at Romero’s direction, and Romero subsequently transported the firearm from Virginia back to Massachusetts, where he resides.
The charge of unlicensed transportation of firearms provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office, made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of Virginia, the ATF - Falls Church Field Office, and the Boston Police Department. Assistant U.S. Attorney Anne Paruti of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berks County Man Sentenced to over 44 Years’ Imprisonment for Armed Bank Robberies in York, Lebanon and Berks CountiesRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Derek Pelker, age 29, of Reading, Pennsylvania was sentenced on July 10, 2019, by U.S. District Court Judge Yvette Kane to 533 months’ imprisonment for armed bank robbery. As part of his sentencing, Judge Kane also ordered Pelker to pay restitution in the amount of $318,000.
According to United States Attorney David J. Freed, Pelker was convicted on May 21, 2018, on four counts of armed bank robbery, four counts of conspiracy to commit armed bank robbery, two counts of brandishing a firearm in relation to a crime of violence; and, two counts of possession of a firearm by a felon. The charges stem from the armed robbery of the Susquehanna Bank in East Prospect, Pennsylvania on April 24, 2015; the BB&T Bank in Valley View, Pennsylvania on November 16, 2015; the Gratz Bank in Valley View, Pennsylvania on January 14, 2016; and the M&T Bank in Lebanon on April 5, 2016.
Pelker’s co-defendants were previously sentenced for their involvement in the robberies:
- June 13, 2018, Ryan Martin was sentenced to 100 months’ imprisonment for his involvement in the BB&T and Gratz robberies;
- July 16, 2018, Morgan Steiner was sentenced to 9 month’s imprisonment for purchasing the firearm Pelker used in the Susquehanna Robbery;
- July 24, 2018, Lindsay Scholl was sentenced to 12 months’ imprisonment for the attempted disposal of the weapon used in the Lebanon Robbery;
- July 24, 2018, Kelsie Bair was sentenced to 12 months’ imprisonment also for the attempted to disposal of the weapon used in the Lebanon Robbery;
- July 24, 2018, Andrew Ishman was sentenced to 48 months’ imprisonment for his involvement in the Susquehanna Robbery;
- August 21, 2018, Shannon Gadzouris was sentenced to 84 months’ imprisonment for his involvement in the M&T robbery;
- August 22, 2018, Ryan Miller was sentenced to 96 months’ imprisonment for his involvement in the Susquehanna Robbery and the robbery of the National Penn Bank in Oley, Pennsylvania on May 20, 2015; and
- December 17, 2018, Derek Pelker’s brother, Keith Pelker, was sentenced to 132 months’ imprisonment for his involvement in the Gratz and M&T robberies.
The case was investigated by the FBI Capital City Violent Crimes Task Force, the Pennsylvania State Police, the South Lebanon Township Police Department, and the U.S. Marshals Fugitive Task Force. The Capital City Violent Crimes Task Force consists of representatives from the FBI’s Harrisburg Field Office and the Harrisburg Police Department. Assistant U.S. Attorney Scott R. Ford prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Berkeley County man admits to drug traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Anthony Wayne Harrison, II, of Martinsburg, West Virginia, has admitted to distributing heroin, United States Attorney Bill Powell announced.
Harrison, age 30, pled guilty to one count of “Distribution of Heroin.” Harrison admitted to selling heroin in Berkeley County in July 2018.
Harrison 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 Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Armed Robber Sentenced to 7 YearsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Lamontay D. Rivera, 21, Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to seven years in federal prison for robbing a Madison restaurant while armed with a handgun. Rivera pleaded guilty to this charge on March 12, 2019.
Rivera’s co-defendant, Johnell Britt, was also sentenced to seven years in federal prison, because he also possessed a handgun during the robbery. Britt was sentenced by Judge Conley on June 4.
Rivera and Britt robbed a Subway restaurant on Cottage Grove Road in Madison on August 20, 2018. They were identified as the armed robbers from surveillance cameras, physical evidence subsequently seized from their vehicle, and DNA evidence.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Rivera and Britt were the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Antitrust Division Announces New Policy to Incentivize Corporate ComplianceRead the Press Release
During remarks today, Assistant Attorney General Makan Delrahim announced the Antitrust Division’s new policy for incentivizing antitrust compliance. For the first time, the Division will consider compliance at the charging stage in criminal antitrust investigations, a change which is reflected in the Justice Manual. The Division also announced revisions to its Manual and published a document to guide prosecutors’ evaluation of corporate compliance programs at the charging and sentencing stage.
“The Antitrust Division is committed to rewarding corporate efforts to invest in and instill a culture of compliance,” said Assistant Attorney General Delrahim. “The Division’s Leniency Policy has long provided the ultimate credit for effective antitrust compliance programs. Beyond leniency, recently we have credited prospective compliance efforts at sentencing. Crediting compliance at charging is the next step in our continued efforts to deter antitrust violations and reward good corporate citizenship. We also remain dedicated to predictability and transparency. As such, in concert with today’s policy changes, the Division issued a public guidance document that outlines what prosecutors look for when evaluating antitrust compliance programs.”
The Justice Manual previously explained the Antitrust Division’s policy “that credit should not be given at the charging stage for a compliance program.” That text has been deleted.
The Division also updated its Manual. The revisions address evaluating compliance programs at the charging and sentencing stage, and Division processes for recommending indictments, plea agreements, and selecting monitors.
For the first time, the Division also published a guidance document that focuses on evaluating compliance programs in the context of criminal violations of the Sherman Act. It is intended to assist Division prosecutors in their evaluation of compliance programs at both the charging and sentencing stage of investigations, and to provide compliance officers and the public greater transparency of the Division’s compliance analysis. To that end, it contains two sections: the first relates to evaluating antitrust compliance programs at the charging stage, and the second addresses compliance considerations at sentencing.
Alaska Man Charged with the Wasteful Killing of a Polar BearRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Christopher L. Gordon, 35, of Kaktovik, Alaska, has been federally charged for knowingly taking a polar bear in a manner unlawful under the Marine Mammal Protection Act, by shooting and killing the polar bear and leaving the harvestable remains to waste. Gordon has been charged in Fairbanks with one count of wasteful taking of a marine mammal.
According to the charging document, on Dec. 20, 2018, near the village of Kaktovik, Gordon allegedly left butchered whale meat outside in the front yard of his residence for a substantial period of time, which attracted a polar bear and other animals to his front yard. Gordon then allegedly shot and killed the polar bear because it was trying to eat the improperly stored whale meat; the shooting was not done in self-defense.
Between Dec. 20, 2018, and May 22, 2019, Gordon allegedly left the polar bear carcass in his front yard without salvaging any portion of the polar bear and allowing it to become covered with snow. This caused a snow removal vehicle to move the polar bear carcass and rip off one of its legs. On May 22, 2019, Gordon caused the polar bear carcass to be discarded and burned in the Kaktovik dump without using any of its parts for subsistence purposes.
If convicted, Gordon faces up to one year in prison and a $100,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The U.S. Fish and Wildlife Service conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
The charges in the information are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Additional Taxpayer Indicted in Schemes to Corrupt and Defraud District of Columbia’s Office of Tax and RevenueRead the Press Release
WASHINGTON –Davoud Jafari, 68, of Washington, D.C., was arrested yesterday on a federal indictment for participating in corruption and fraud schemes centered at the District of Columbia’s Office of Tax and Revenue announced U.S. Attorney Jessie K. Liu
Last week, a federal grand jury in the District of Columbia returned an indictment alleging that Jafari, the owner of Zeba, a bar located at 3423 14th Street, N.W., Vincent Slater, 41, of Temple Hills, MD, the former supervisor of OTR’s Compliance Administration Adjustment Unit, and Anthony Merritt, 44, of Washington, D.C., a former employee of the District of Columbia Department of Consumer and Regulatory Affairs (DCRA), conspired to fraudulently reduce Zeba’s tax liabilities by paying bribes to Slater.
According to the indictment, on a monthly basis between October 2012 and December 2017, Slater used his position at OTR to provide Jafari with documents fraudulently representing that Zeba had filed and paid its monthly sales and use taxes when in fact no taxes had been paid. Slater also intervened when other OTR employees sought to make collection efforts against Jafari’s business, and created false tax credits that could be applied against the business’s outstanding tax liabilities. Slater relied upon Merritt to communicate with Jafari and to collect bribe payments.
This is the second indictment alleging a bribery scheme centered at OTR involving Slater and Merritt. Slater and Merritt were also arrested and charged with bribery and related offenses involving additional District business owners in May 2019.
Jafari was arraigned before U.S. Magistrate Judge Deborah Robinson of the U.S. District Court for the District of Columbia and was released on personal recognizance. Slater and Merritt are expected to be arraigned at a future court date. The defendants are each charged with one count of conspiracy, in violation of 18 U.S.C. § 371; Slater and Jafari are each charged with one count of bribery, and Merritt is charged with two counts of bribery, in violation of 18 U.S.C. § 201; and all three defendants are charged with three counts of money, property, and honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346. The case is assigned to U.S. District Judge Reggie B. Walton. The next court date has not been set.
The charges in an indictment are merely allegations and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The statutory maximum penalty for Conspiracy, in violation of 18 U.S.C. § 371, is five years; for Bribery, in violation of 18 U.S.C. § 201, the statutory maximum penalty is 15 years; and for Money, Property, and Honest Services Wire Fraud, in violation of 18 U.S.C. §§ 1343 and 1346, the statutory maximum penalty is 20 years.
These cases are being investigated by the FBI’s Washington Field Office and the District of Columbia Office of Inspector General, with the assistance of the District of Columbia Office of the Chief Financial Officer, Office of Integrity and Oversight. Assistant U.S. Attorneys Emily Miller and Molly Gaston of the Fraud and Public Corruption Section are prosecuting the case.
10 Defendants from South Carolina Lowcountry Face Federal Charges for Drug Distribution ConspiraciesRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced that joint federal, state, and local investigation has resulted in 10 individuals being charged in two separate cases in federal court for their roles in drug trafficking organizations that operated in the Lowcountry of South Carolina.
“Today, we announce the takedown of 10 bad actors through Operation Low Country Line,” said U.S. Attorney Lydon. “This represents a line of state, local, and federal authorities working in lockstep with one another to curb the violence. We have drawn a line as we warn those intent on violating the rights of citizens to be safe in their communities that there will be consequences. With freedom comes responsibility: The responsibility to adhere to the rule of law.”
“These indictments and arrests are the results of a committed partnership between federal, state and local law enforcement. Together, we will remain resolved to investigate and arrest those individuals who pose a direct threat to our communities by trafficking in drugs and violence,” said Jody Norris, Special Agent in Charge of the FBI.
In the first indictment, six defendants have been charged with conspiracy to possess with intent to distribute and to distribute cocaine. Additionally, three of the defendants have been charged with firearms offenses:
Lamar Louis Johnson, a/k/a “McJag,” age 39, of Mount Pleasant, was attributed 5 kilograms or more of cocaine in the conspiracy count and charged with using a communication facility to facilitate drug trafficking and possessing with intent to distribute cocaine;
Theadore Bernard Gadsden, a/k/a “Teddy,” a/k/a “Chest,” age 30, of Mount Pleasant, was attributed a quantity of heroin and 500 grams or more of cocaine in the conspiracy count and charged with possessing with intent to distribute cocaine, being a felon in possession of a firearm, and using a communication facility to facilitate drug trafficking;
Jaton Edwards, a/k/a “Julio,” age 29, of North Charleston, was attributed 500 grams or more of cocaine in the conspiracy count and charged with possessing with the intent to distribute cocaine, using a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm;
Jarvis Behrens, age 27, of Mount Pleasant, was attributed 500 grams or more of cocaine in the conspiracy count and charged with possessing with intent to distribute cocaine;
Theodore Bernard Gadsden, age 60, of Mount Pleasant, was attributed a quantity of cocaine in the conspiracy count and charged with using a communication facility to facilitate drug trafficking and possessing with intent to distribute cocaine; and
Pierce Nelson, age 28, of Mount Pleasant, was attributed a quantity of cocaine in the conspiracy count and charged with possessing with intent to distribute cocaine, using a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
In the second indictment, four defendants have been charged with conspiracy to possess with intent to distribute and to distribute heroin, methamphetamine, cocaine, and cocaine base. Three have been taken into custody:
Devant Porcher, a/k/a “Dub,” age 34, of North Charleston, was attributed 100 grams or more of heroin, 5 grams or more of methamphetamine, 28 grams or more of cocaine base, and a quantity of cocaine in the conspiracy count and charged with 13 additional counts related to the distribution of heroin, methamphetamine, cocaine, and cocaine base;
Melinda Lee Lynch, age 40, of Moncks Corner, was attributed 5 grams or more of methamphetamine in the conspiracy count and charged with possessing with intent to distribute and distributing methamphetamine and heroin; and
Wandesha Smalls, age 36, of North Charleston, was attributed 5 grams or more of methamphetamine and a quantity of heroin in the conspiracy count and charged with possessing with intent to distribute and distributing methamphetamine and heroin.
These nine defendants were taken into custody yesterday morning. During the course of the investigation into these drug trafficking organizations, agents have seized almost two kilograms of cocaine, almost 100 grams of crack cocaine, 480 grams of heroin, 440 grams of methamphetamine, and seven firearms.
Johnson faces a maximum penalty of life in federal prison and a maximum fine of $10,000,000. Theadore Gadsden, Edwards, Behrens, Porcher, Lynch, and Smalls each face up to 40 years in federal prison and a maximum fine of $5,000,000. Theodore Gadsden, Nelson, and Simmons each face up to 20 years in federal prison and a maximum fine of $1,000,000.
The case was investigated by agents of the Federal Bureau of Investigation (FBI), United States Postal Inspection Service, North Charleston Police Department, Mount Pleasant Police Department, City of Charleston Police Department, Charleston County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), and Berkeley County Sheriff’s Office. It is being prosecuted as part of the joint federal, state, and local 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. Assistant United States Attorneys Sean Kittrell and Nick Bianchi of the Charleston office are prosecuting the case.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Wednesday 10 July 2019
Youngstown, Ohio Man Sentenced to 5 Years in Prison for Dealing Heroin and Violating the Release Conditions of a Previous Drug ConvictionRead the Press Release
PITTSBURGH, PA – An Ohio resident has been sentenced in federal court to four years (48 months) in prison and six years supervised release on his conviction of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Cathy Bissoon imposed the sentence on Frank Christian, 46, of Youngstown, Ohio.
According to information presented to the court, on or about February 22, 2016, in the Western District of Pennsylvania, Christian possessed with the intent to distribute and distributed heroin, a Schedule I controlled substance. Christian’s conduct also violated the conditions of his supervised release related to a previous federal drug trafficking conviction, and Judge Bissoon imposed an incremental 12-month term of imprisonment to run consecutively to the 48-month sentence.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, Pennsylvania State Police, and the New Castle Police Department for the investigation leading to the successful prosecution of Christian.
West Virginia Woman Accused in Multi-State Fraud Scheme Targeting Kmart StoresRead the Press Release
PITTSBURGH - A West Virginia woman has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, United States Attorney Scott W. Brady announced today.
The seven-count Indictment, returned on June 25 and unsealed yesterday, named Tanya Thompson, aka Tanya Whetzel, 37, of Martinsburg, West Virginia, as the sole defendant.
According to indictment presented to the court, from approximately June 2017 until December 2017, Thompson traveled to approximately 25 states and purchased, among other things, third party gift cards, including prepaid credit cards, at various Kmart stores using fraudulent mobile phone coupons. The total loss from the fraud scheme is approximately $101,567.50.
The law provides for a maximum total sentence of 20 years in prison for each count, a fine of $250,000 for each count, or both for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Waterloo Couple, Both Convicted Felons, Sentenced to Prison for Unlawfully Possessing a GunRead the Press Release
A Waterloo couple who threatened the woman’s ex-boyfriend with a gun were sentenced today to federal prison.
John Joseph Sanford, Jr., age 43, from Waterloo, Iowa, received the prison term after a March 6, 2019, guilty plea to one count of possession of a firearm by a felon. Laika Latrece Burt, age 43, from Waterloo, Iowa, received the prison term after a March 1, 2019, guilty plea to one count of possession of a firearm by a felon.
At their guilty pleas, Sanford and Burt both admitted that they knowingly possessed a firearm on January 1, 2018, after having been previously convicted of a felony offense. Evidence shows that on January 1, 2018, Burt retrieved a gun from her house and she and Sanford drove to her ex-boyfriend’s home where they threatened him with the loaded handgun. Police responded to the residence and found the loaded handgun in Burt’s car. Sanford and Burt were later married in April 2018.
Sanford had previously been convicted in the Iowa District Court in Black Hawk County of (1) burglary, second degree, in 1994; (2) distribution of a controlled substance to a person under age eighteen in 1998; (3) possession of a controlled substance with intent to deliver in 1998; and (4) possession of cocaine base, third offense, in 2007. Sanford is currently serving a five year sentence for a conviction on January 25, 2019, in Black Hawk County for possession of methamphetamine, third offense, and possession of cocaine, third offense.
Burt had previously been convicted in the Iowa District Court in Black Hawk County in 2001 of (1) possession of a controlled substance with intent to deliver; and (2) a drug tax stamp violation. Burt is currently serving a five year sentence for a conviction on November 26, 2018, in Black Hawk County for possession of marijuana, third offense.
Sanford and Burt were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Sanford was sentenced to 120 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. Burt was sentenced to 30 months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Sanford and Burt are being held in the United States Marshal’s custody until they can be transported to an Iowa state prison to complete their state sentences.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Waterloo Police Department.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2009.
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Two Inmates at FCI Morgantown indicted for contrabandRead the Press Release
CLARKSBURG, WEST VIRGINIA – Richard Joe Pruitt and John Joseph Kopp, both inmates at FCI Morgantown in Morgantown, West Virginia, were indicted by a federal grand jury today for possession of contraband, United States Attorney Bill Powell announced.
Pruitt, age 26, and Kopp, age 44, are each charged with one count of “Possession of a Prohibited Object (Narcotic),” one count of “Possession of a Prohibited Object (Cellular Telephone),” and one count of “Possession of a Prohibited Object (Alcohol).” Pruitt and Kopp are accused of having suboxone, alcohol, and two cell phones inside FCI Morgantown in December 2018.
Pruitt and Kopp each face up to 20 years incarceration and a fine of up to $250,000 for the narcotics count and face up to one year incarceration and a fine of up to $200,000 for each of the alcohol and cell phone 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Prisons Special Investigation Services investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Third Man Arrested in Hotel RobberyRead the Press Release
HOUSTON – Three alleged members of the 103 criminal street gang have been charged for their participation in a robbery of America’s Best Value Inn hotel, announced U.S. Attorney Ryan K. Patrick.
Two were previously in custody. Law enforcement arrested the third man - Bernard Robinson, 19 – yesterday. He is expected to make his initial appearance before U.S. Magistrate Judge Christina Bryan today at 10:00 a.m.
A federal grand jury returned the two-count indictment April 25, 2019, against Leonard Murphy, 19, Corey Bishop, 20, and Robinson. Bishop and Murphy made their initial appearances May 2, 2019, at which time U.S. Magistrate Judge Christina Bryan found them to be a danger to the community and ordered them into custody pending further criminal proceedings. They are currently set for trial in October 2019.
The three men are each charged with one count of robbery and one count of discharging a firearm during a crime of violence.
The indictment alleges that on July 26, 2018, law enforcement responded to an aggravated robbery at the America’s Best Value Inn on the Southeast side of Houston. Upon arrival, authorities officers discovered that a group of males had allegedly confronted the hotel’s clerk and demanded access to the cash kept in the lobby. The indictment alleges the three men pistol-whipped the clerk and ultimately shot him.
After stealing the money, they fled from the hotel and into a waiting vehicle, according to the charges.
If convicted, each faces up to 20 years imprisonment for the robbery. The firearms charges also carries a minimum of 10 years which must be served consecutively to any other prison term imposed. Each conviction also carries a possible fine of up to $250,000.
The Houston Police Department and Immigrations and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Lisa Collins 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.Texas Man Sentenced to 11 Years for Cocaine ConspiracyRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Gregory Smith, 51, Houston, Texas, was sentenced today by U.S. District Judge William M. Conley to 11 years in federal prison for conspiracy to distribute 500 grams or more of cocaine. Smith pleaded guilty to this charge on April 17, 2019.
The investigation revealed that Smith was mailing packages containing cocaine from Houston to co-defendant Joseph Harper in Madison. In total, postal records from November 2017 to November 2018 showed 32 packages mailed from Smith to addresses in Wisconsin or Iowa associated with Harper. Based on witness statements and multiple cocaine seizures in the case, agents learned that each of the packages contained between a half kilogram and one kilogram of cocaine.
In addition, postal records from November 2017 to November 2018 showed that 48 packages were mailed from the Madison area by Harper or his associates to addresses associated with the Smith in Houston. Federal agents executed search warrants on five of these packages and identified over $85,000 in cash. Based on communications between Smith and Harper, along with other investigative information, agents learned that each of the 48 packages sent to the Smith contained money to pay for cocaine.
In imposing the sentence, Judge Conley noted that Smith played a critical role in the large-scale interstate conspiracy which involved at least 16 kilograms of cocaine. Judge Conley also noted that Smith has a lengthy criminal history including four prior felony drug trafficking convictions.
A total of 12 individuals have been charged for participating in this cocaine distribution scheme. In addition to Smith, eight other defendants have pleaded guilty. Smith is the first to be sentenced.
The charge against Smith is the result of a joint investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, Federal Bureau of Investigation, and Wisconsin Department of Justice Division of Criminal Investigation. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Suspected Shooter in Federal CustodyRead the Press Release
LOUISVILLE, Ky. – A previously convicted felon is now in federal custody after exchanging gun fire outside of a local fast food restaurant, announced United States Attorney Russell Coleman.
“Federal law enforcement is actively engaged with our LMPD partners in removing trigger-pullers from Louisville’s streets,” said U.S. Attorney Russell Coleman.
Kendrick C. Brown, 29, of Louisville, has been charged with one count of possessing a firearm after being a convicted felon, a federal felony that could lead to significant federal prison time.
According to a criminal complaint filed in U.S. District Court in Louisville, on Monday, May 13, 2019, at around 1:06 p.m., Brown and another individual exchanged gunfire in the parking lot of Indi’s restaurant at 1333 W. Broadway in Louisville, Kentucky. Both individuals retreated to their vehicles and fled the scene following the shooting.
The complaint further states that 911 callers described both vehicles, including a description of Brown’s license plate. Louisville Metro Police located Brown’s pickup truck near the University of Louisville Hospital a short time later.
Brown is charged with being a convicted felon in possession of a Sig-Sauer 9mm, model P229 firearm. Brown was previously convicted of conspiracy to possess with intent to distribute cocaine.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release.
The case is being prosecuted by Assistant United States Attorney Erin McKenzie. The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Louisville Metro Police Department.
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. The complaint is part of the Project Safe Neighborhoods Initiative in the Western District of Kentucky.
The charging of a person is an accusation only and that person is presumed innocent until and unless proven guilty.
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Southbury Attorney Sentenced to Prison for Defrauding Elderly ClientRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT J. BARRY, 78, of Woodbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment, followed by three years of supervised release, the first six months of which Barry must serve in home confinement, for stealing from his elderly client trust accounts.
According to court documents and statements made in court, Barry was a partner in the law firm of Sturges and Mathes, located in Southbury. The firm specialized in trust and estates work, and Barry headed that practice. As part of his practice, Barry drafted trust agreements for clients designating himself as successor trustee in the event of the client’s death or incapacity. He also prepared wills for clients that named Barry as executor of the client’s estate upon death.
Beginning in June 2010 and continuing until approximately December 2015, Barry engaged in a scheme to defraud an elderly victim by stealing money from the victim’s client trust accounts while the victim was alive, and then stealing money from the victim’s estate after the victim died. Barry, in his role as executor and successor trustee for the victim, directed Sturges and Mathes staff members to prepare checks drawn on the victim’s accounts payable to the Sturges and Mathes operating account. Once the money was deposited into the firm’s operating account, Barry directed staff to cut a check against the firm operating account payable to a special account in the firm’s name over which Barry had exclusive control. Barry then wrote himself checks from the special account to his personal bank account.
In furtherance of the scheme, Barry caused numerous false and misleading statements to be sent to the victim and the victim’s residual beneficiary about the disposition of assets.
Through this scheme, Barry stole more than $2.4 million from the victim and the victim’s estate.
In order to hide the excess fees that he had taken, Barry also caused a false federal estate tax return to be filed with the IRS. The tax return underreported the amount of the victim’s estate by approximately $937,000.
Judge Chatigny ordered Barry to pay $2,440,285 to the victim’s estate, and $1,507,240 to residual beneficiaries of other estate clients.
On September 5, 2018, Barry pleaded guilty to one count of wire fraud.
Barry, who is released on a $100,000 bond, was ordered to report to prison on September 3, 2019.
This matter was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Susan Wines and Jennifer Laraia.
South Boston Man Sentenced for Distributing Heroin and Fentanyl in Public Housing DevelopmentsRead the Press Release
BOSTON – A South Boston man was sentenced today in federal court in Boston for distributing heroin and fentanyl.
Jomar Ventura, 24, was sentenced by U.S. District Court Judge Patti B. Saris to 30 months in prison and three years of supervised release. In April 2019, Ventura pleaded guilty to four counts of distribution and possession with intent to distribute heroin and fentanyl.
On four occasions between March and May 2018, Ventura distributed a total of over 44 grams of heroin and fentanyl to a cooperating witness in the Mary Ellen McCormack and Old Colony public housing developments in South Boston. Court-authorized recordings of each transaction and laboratory results confirmed that the drugs were heroin and fentanyl. Evidence presented in connection with sentencing hearing demonstrated that Ventura had been distributing heroin, fentanyl, and cocaine regularly for at least six months.
United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Rural Metro of Southern Ohio, Inc. Agrees to Pay $275,116 to Resolve Allegations of False Claims to MedicareRead the Press Release
LEXINGTON, Ky. – Rural Metro of Southern Ohio, Inc. (“Rural Metro”) has agreed to resolve civil allegations that it violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims to the federal government, agreeing to pay $275,116.22.
The United States alleged that Rural Metro violated the False Claims Act by submitting, or causing the submission of, false claims to Medicare, for overnight hospital discharge ambulance transports that were not medically necessary, between January 1, 2013 and September 1, 2017. To be medically necessary, ambulance transportation requires that a patient’s medical condition prohibit other methods of transportation, but Rural Metro submitted claims for patients who could have been appropriately transported by other means.
“Those who participate in Medicare must play by the rules,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Paying for unnecessary services deprives the Medicare Program of invaluable resources and weakens its ability to actually provide appropriate services to its beneficiaries. Our Office is committed to taking the steps necessary to protect Medicare from fraud and abuse and to recovering taxpayer money that was obtained inappropriately.”
“When companies try to boost their profits by billing federal health care programs for medically unnecessary services, the Office of Inspector General will ensure they are held accountable for their actions,” said Special Agent in Charge Derrick L. Jackson, HHS-OIG.
Nicholas Ratterman, a former Rural Metro employee, originally filed this lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act, which permits private individuals with knowledge of fraud to sue on behalf of the government for false claims and to share in any recovery. Mr. Ratterman will received approximately $44,000 from the settlement with Rural Metro.
The government’s action in this matter illustrates its commitment to combat health care fraud using the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. Assistant United States Attorneys Jennifer Williams and Mary Melton handled the matter for the United States.
The case is captioned United States ex rel. Ratterman v. Mercury Ambulance Services, Inc., et al., Case No. 17-cv-148-JMH. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Previously Convicted Felon from Essex County Sentenced to 10 Years in Prison for Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – A Newark man who negotiated the sale of 17 firearms over a five-month period was sentenced today to 120 months in prison for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Reginald Moultrie, 50, previously pleaded guilty before U.S. District Claire C. Cecchi to an information charging him with possessing a firearm as a previously convicted felon. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On July 20, 2017, Moultrie, who had at least one prior felony conviction in Essex County Superior Court, possessed an assault rifle capable of accepting a large capacity magazine. As part of the plea agreement, Moultrie also acknowledged that between May 1, 2017, and Sept. 30, 2017, he negotiated the sale of 17 firearms. Moultrie’s nephew, Richard Lowman, previously pleaded guilty to conspiracy to engage in the unlicensed business of dealing in firearms and is awaiting sentencing.
In addition to the prison term, Judge Cecchi sentenced Moultrie to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officers from the Newark Police Department, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office National Security Unit in Newark.
Previously Convicted Sex Offender from Albuquerque, N.m., Pleads Guilty to 12 Counts of Distribution, Receipt, and Possession of Child Pornography in Violation of Federal LawRead the Press Release
ALBUQUERQUE – Donald Tolbert, 50, of Albuquerque, N.M., pleaded guilty Monday in federal court to 12 counts of distribution, receipt, and possession of videos and images containing child pornography in violation of federal law.
According to Tolbert’s plea agreement, he committed these offenses between July 17, 2012, and September 20, 2012. During that time, Tolbert sent and received numerous images and videos of child pornography by email. Tolbert then transferred several of those pornography images and videos between his multiple email accounts. Tolbert also stored videos and images of child pornography on his mother’s computers. Tolbert committed these offenses after being previously convicted in New Mexico state court of two counts of criminal sexual contact with a minor under the age of 13.
Tolbert is currently in custody pending sentencing where he faces a term of imprisonment in the range of 30 to 35 years (360 to 420 months).
The Albuquerque office of Homeland Security Investigations, Federal Bureau of Investigation, New Mexico Attorney General’s Office, New Mexico State Probation and Parole, and the New Mexico Regional Computer Forensics Laboratory investigated this case. Assistant U.S. Attorneys Kristopher N. Houghton and Alexander M. Uballez are prosecuting the case.
Owner of Essex County-Based Medical Transportation Company Pleads Guilty to Health Care FraudRead the Press Release
ALBANY, NEW YORK – Qaiser Gondal, age 47, of Watervliet, New York, pled guilty today to conspiring to defraud Medicaid.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- New York State Police Superintendent Keith M. Corlett;
- James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);
- New York State Inspector General Letizia Tagliafierro; and
- Rensselaer County District Attorney Mary Pat Donnelly.
Today’s plea is the result of a state and federal investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County.
Qaiser Gondal operated Ti Taxi Inc. (“Ti Taxi”), a Medicaid-funded transportation company based in Ticonderoga, New York.
As part of his plea, Qaiser Gondal admitted that he committed a variety of frauds against Medicaid and the New York State Department of Health, including: billing Medicaid and receiving payment for trips where beneficiaries drove themselves to their own medical appointments, and falsifying the identities of the drivers for those trips; billing Medicaid and receiving payment for roundtrips to and from medical appointments when the beneficiaries took only one-way trips with Ti Taxi; and falsifying pick-up and drop-off locations, in order to increase the purported distances traveled and therefore be able to claim and receive higher Medicaid payments.
Qaiser Gondal also admitted that he paid kickbacks and bribes to Medicaid beneficiaries in order to induce those beneficiaries to schedule and keep scheduling medical transportation appointments with Ti Taxi. Kickbacks included cash, phone cards, cigarettes and tobacco, and free goods at Gondal’s convenience store in Ticonderoga.
Qaiser Gondal faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years, when he is sentenced on November 14, 2019 by Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Qaiser Gondal has also agreed to pay $325,000 in restitution.
Yesterday, Khurram Gondal, age 38, of Ticonderoga, pled guilty to health care fraud in connection with fraudulent Medicaid billing practices connected to two other medical transportation companies, Green Mountain Medical Transportation Inc. and Four Way Taxi, Inc. Khurram Gondal, who is Qaiser Gondal’s brother, also faces up to 10 years in prison when he is sentenced on November 14, 2019 by Judge McAvoy. Khurram Gondal has agreed to pay $60,000 in restitution.
Charges remain pending against several other defendants. Those defendants are presumed innocent unless and until proven guilty.
The federal charges are being investigated by the FBI and the New York State Police’s Special Investigations Unit, and are being prosecuted by Assistant U.S. Attorney Michael Barnett.
Parallel state charges are being investigated by the New York State Police’s Special Investigations Unit, as well as the Office of the New York State Inspector General, and are being prosecuted by Rensselaer County Chief Assistant District Attorney Matthew Hauf as Special Prosecutor.
Several additional agencies assisted in this investigation, including the Essex County District Attorney’s Office; New York State Police-Troop B; the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.
Owner and Principal of Investment Firm Indicted for Insider TradingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the indictment and arrest of DONALD BLAKSTAD for his participation in a scheme to trade on inside information that was misappropriated from Illumina, Inc. (“Illumina”), a San Diego-based biotechnology company whose stock trades on NASDAQ. BLAKSTAD’s scheme yielded more than $6 million in illegal profits.
Mr. Berman also announced today the unsealing of charges against MARTHA BUSTOS, a certified public accountant formerly employed by Illumina, who pled guilty on June 28, 2019, and is cooperating with the Government.
BLAKSTAD was arrested this morning in San Diego, California, and will be presented today before United States Magistrate Judge William V. Gallo of the U.S. District Court for the Southern District of California. In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against BLAKSTAD and BUSTOS.
U.S. Attorney Geoffrey S. Berman said: “Donald Blakstad allegedly used his connections to gather inside information that he and his associates then traded on, to the tune of more than $6 million in profits. Trading stocks based on stolen information strikes at the foundation of our nation’s financial markets and today’s arrest and charges are part of our ongoing commitment to protecting the integrity of those markets.”
FBI Assistant Director-in-Charge Sweeney said: “Those who base trading decisions on proprietary information they shouldn’t have access to are not only engaging in a practice that’s unfair, but also illegal. Blakstad’s arrest today once again highlights the FBI’s ongoing efforts to eradicate this unlawful behavior and preserve the integrity of our financial markets.”
According to the allegations contained in the Indictment unsealed today[1]:
BLAKSTAD was the owner and principal of an investment fund known as Midcontinental Petroleum Inc., which purported to be in the business of soliciting investments in the oil and gas industry. BUSTOS was a certified public accountant who worked in Illumina’s accounting department. By virtue of her employment at Illumina, BUSTOS had access to material nonpublic information about Illumina’s financial condition, including its earnings.
On multiple occasions, from 2016 through 2018, BLAKSTAD obtained inside information about Illumina’s financial condition from BUSTOS before Illumina publicly announced its quarterly financial results. As BLAKSTAD knew, BUSTOS owed a duty to keep inside information about Illumina confidential.
BLAKSTAD, aware of BUSTOS’s breach of duty to Illumina, used this inside information to make profitable trades in Illumina securities. At times, BLAKSTAD tipped his associates so that they could trade Illumina stock and options based on the inside information. At other times, in order to avoid detection, BLAKSTAD arranged for his associates to purchase Illumina securities for BLAKSTAD’s benefit in accounts controlled by his associates.
Following the public announcement of Illumina’s earnings, BLAKSTAD and his associates sold the Illumina securities at a significant profit, sometimes exceeding more than 2,000 percent. In total, BLAKSTAD and his associates made more than $6 million in profits from purchasing and selling Illumina securities.
* * *
BLAKSTAD, 60, of San Diego, California, is charged with the offenses set forth in the chart attached to this release.
On June 28, 2019, BUSTOS, 31, of San Diego, California, pled guilty in Manhattan federal court before Magistrate Judge Gabriel W. Gorenstein to three counts: conspiracy to commit securities fraud, securities fraud, and conspiracy to commit wire fraud. The maximum sentences for each charge are included in the attached chart.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Brendan F. Quigley are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and BLAKSTAD is presumed innocent unless and until proven guilty.
Count
Charge
Maximum Penalties
1
Conspiracy to Commit Securities Fraud (18 U.S.C. § 371)
Five years in prison and a $250,000 fine or twice the gross gain or loss from the offense
2
Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)
20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
3
Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)
20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
4
Conspiracy to Commit Wire Fraud (18 U.S.C. § 1349)
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
5
Wire Fraud (18 U.S.C. §§ 1343 & 2)
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
[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.
Orlando Man Sentenced to Nine Years in Prison for Possessing A FirearmRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Morris Dewayne Carroll (45, Orlando) to nine years in federal prison for possessing a firearm as a convicted felon. Carroll had pleaded guilty on April 18, 2019.
According to court documents, on January 25, 2019, officers from Homeland Security Investigations and the Metropolitan Bureau of Investigation encountered Carroll at an Orlando-area hotel. Carroll was the subject of an outstanding felony arrest warrant. When officers executed the arrest, they found him in possession of a loaded, stolen handgun. Carroll’s criminal history includes convictions for sexual battery, failure to register as a sex offender, delivery of cocaine, unlawful discharging of a firearm, and domestic assault. As a previously convicted felon, Carroll is prohibited from possessing firearms or ammunition under federal law.
“HSI has formed a strong partnership with the Metropolitan Bureau of Investigation, and we have continued to leverage our authorities to keep our communities safe,” said HSI Orlando Assistant Special Agent in Charge David Pezzutti. “Bringing criminals to justice is a collective team effort by law enforcement.”
This case was investigated by United States Homeland Security Investigations and the Metropolitan Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, ICE.
Ohio Woman Sentenced to More Than 4 Years in Prison for Conspiring to Distribute Heroin and Launder the ProceedsRead the Press Release
PITTSBURGH – An Ohio resident has been sentenced in federal court to four years and four months (52 months) in prison on her convictions of conspiracy to distribute heroin and money laundering, United States Attorney Scott W. Brady announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Britny Beaver, 25, of East Liverpool, OH.
According to information presented to the court, from January 2015 to February 2016, Beaver conspired with others to possess with intent to distribute and distribute kilogram quantities of heroin. She also conspired to launder $60,000 of the proceeds of the heroin trafficking.
Prior to imposing sentence, Judge Cercone stated that the sentence was sufficient but not greater than necessary to address the factors set forth at 18 U.S.C. § 3553.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, Hopewell Township Police Department, Beaver County District Attorney’s Office, Aliquippa Police Department, and the Beaver County Sheriff’s Office for the investigation leading to the successful prosecution of Beaver
New Jersey Man Admits Role in $2 Million Fraudulent Check Scheme Targeting Home-Improvement StoresRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man pleaded guilty today in connection with his role in a phony check scheme that resulted in the theft of over $2 million in merchandise from multiple home improvement stores throughout the country, U.S. Attorney Craig Carpenito announced.
John Muyeka, 44, of Sayreville, New Jersey, pleaded guilty to a superseding information charging him with one count of misprision of a felony before U.S. District Judge Katharine S. Hayden in Newark federal court.
According to documents filed in this case and statements made in court:
Starting in December 2013 and continuing through February 2017, Muyeka and other conspirators agreed to obtain merchandise or store credit from home improvement stores in locations along the eastern United States, including New Jersey, by purchasing items with fraudulent checks.
The individuals entered home improvement and other retail stores and gathered several high-value items like air conditioners or hardwood flooring. They then typically “purchased” the items either by handing a cashier a fraudulent check with a phony name but authentic account and routing numbers, or by pretending to be an authorized signatory on a store credit account that the individuals had previously opened with a phony check.
During some of the transactions, the conspirators displayed fake driver’s licenses that had been created by Muyeka, which either duplicated the phony name imprinted on the fraudulent check they presented for payment or matched the name of an authorized signatory on a store credit account that they had previously opened.
In total, the conspirators allegedly stole over $2 million in merchandise from various retailers in New Jersey, New York, Pennsylvania, Delaware, North Carolina, Georgia, Virginia, Connecticut, Massachusetts, and South Carolina.
The count of misprision carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 15, 2019.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Union Township Police Department, the Holmdel Police Department, the Passaic County Prosecutor's Office, the Totowa Police Department, and the Monroe Township Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Mexican National Sentenced After Repeatedly Illegally Re-entering the United StatesRead the Press Release
KANSAS CITY, Mo. – A Mexican national has been sentenced in federal court after repeatedly illegally entering the United States.
Miguel Angel Rodriguez-Vazquez, 42, a citizen of Mexico, was sentenced by U.S. District Judge Greg Kays on Tuesday, July 10, to four years and 10 months in federal prison without parole.
On Feb. 5, 2019, Rodriguez-Vazquez pleaded guilty to one count of unlawfully re-entering the United States after being deported for an aggravated felony, his second violation of this statute.
According to court documents, Rodriguez-Vazquez has illegally entered the United States on five different occasions. Rodriguez-Vazquez illegally entered the United States in 1991, then again in 2000. Rodriguez-Vazquez was convicted of possessing marijuana with the intent to sell on Feb. 4, 2003, and was deported.
On April 16, 2004, Rodriguez-Vazquez had his probation revoked because he again illegally re-entered the United States for the third time. On April 4, 2005, Rodriguez-Vazquez was convicted in the U.S. District Court of Kansas of illegally re-entering the United States after having been deported for an aggravated felony. He was sentenced to 41 months in federal prison and later deported.
Rodriguez-Vazquez illegally re-entered the United States the fourth time on April 8, 2011. Rodriguez-Vazquez was arrested and subsequently convicted in the U.S. District Court of the Southern District of Texas on Sept. 21, 2011, of illegally re-entering the United States. He was sentenced to 46 months in federal prison and was deported on Aug. 14, 2014.
Rodriguez-Vazquez claims to have last entered the United States without inspection sometime in June 2018. He was arrested by Riverside, Missouri, police officers for loitering on Sept. 16, 2018.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV, It was investigated by the Riverside, Mo., Police Department and Immigration and Customs Enforcement.
Meridian Man Sentenced to 10 Years in Federal Prison for Attempted Coercion and Enticement of MinorRead the Press Release
BOISE – Vincent Paul Ingolia, 45, of Meridian, was sentenced Tuesday in U.S. District Court to 120 months in federal prison for attempted coercion and enticement of a minor, U.S. Attorney Bart M. Davis announced. U.S. District Judge B. Lynn Winmill ordered that Ingolia be placed on supervised release for five years following his prison sentence. Ingolia pleaded guilty on April 10, 2019.
According to court records, on March 15, 2018, Ingolia posted an advertisement on Craigslist seeking a young girl for sexual activity. An agent with Homeland Security Investigations (HSI) responded to the advertisement, posing as a 13-year-old girl. During e-mail communications, Ingolia offered to pay the minor in exchange for sexual contact, and made numerous statements intended to entice and persuade the 13-year-old into meeting and engaging in sexual contact with him. Ingolia arrived at a gas station in Boise to meet with the 13-year-old. Once he arrived, Ingolia told the officer he believed he was speaking to law enforcement and fled the area.
During a subsequent investigation to identify Ingolia, HSI agents discovered Ingolia had posted at least ten other Craigslist advertisements seeking young girls for “porn productions,” or to exchange sex for money. In August of 2018, HSI agents served a search warrant at Ingolia’s residence in Meridian. Ingolia was present and admitted to agents that he was the individual speaking to the undercover officer, and that he believed he was speaking to a 13-year-old girl. He admitted traveling to the gas station to meet the minor for sex, but then realized “it was a sting,” so he left. He also admitted to previously communicating with other minors on Craigslist advertisements, during which he discussed meeting for sexual contact and offered money for sex, but denied ever meeting or having sexual contact with any minor.
At sentencing, Judge Winmill also ordered Ingolia to forfeit the cellular phone he used in the commission of the offense. As a result of his conviction, Ingolia will be required to register as a sex offender.
The investigation was part of “Operation Unsportsmanlike Conduct,” a joint state and federal undercover operation conducted in Ada County, Idaho in March of 2018 to identify individuals predisposed to meet minors for sexual contact. Participating agencies included U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Idaho Internet Crimes Against Children Task Force, the United States Marshal’s Service, the Federal Bureau of Investigation, the Ada County Sheriff’s Office, the Garden City Police Department, the Boise Police Department, the Nampa Police Department, the Canyon County Sheriff’s Office, the Idaho State Police, the Idaho Attorney General’s Office Special Investigation Unit, the Idaho Criminal Intelligence Center, the United States Postal Inspection Service, the Ada County Prosecutor’s Office, and the United States Attorney’s Office.
“The U.S. Attorney’s Office is pleased with the results of the joint operation,” said U.S. Attorney Bart M. Davis. “Project Safe Childhood (PSC) has been and is an important priority of the Department of Justice. Working with our federal, state, and local law enforcement, we seek to protect children by diligently investigating and prosecuting online sexual offenses involving minors. This operation helped safeguard children.”
“HSI and our law enforcement partners are dedicated to protecting children from predators who seek to take advantage of their innocence,” said Brad Bench, Special Agent in Charge of HSI Seattle. “The sexual abuse of a child is an appalling crime and HSI is steadfast in our commitment to find and remove these criminals from our communities.”
“The sentencing of the final defendant brings to a close this very successful operation,” Idaho Attorney General Lawrence Wasden said. “I’m pleased with the outcome and proud of the cooperation exhibited by so many law enforcement agencies. Young Idahoans are safer as a result.”
Ingolia is the last of ten defendants charged in federal court as a result of Operation Unsportsmanlike Conduct. Previously, the following defendants were sentenced in federal court as a result of Operation Unsportsmanlike Conduct:
- Bruce Froman, 41, of Meridian, was sentenced by U.S. District Judge Edward J. Lodge to 120 months in federal prison, followed by 10 years of supervised release, for attempted coercion and enticement on August 14, 2018.
- Steven Walker, 49, of Boise, was sentenced by U.S. District Judge Edward J. Lodge to 60 months in federal prison, followed by 5 years of supervised release, for attempted use of interstate facilities to transmit information about a minor on September 4, 2018.
- Jason Kitley, 48, of Eagle, was sentenced by U.S. District Judge B. Lynn Winmill to 60 months in federal prison, followed by 5 years of supervised release, for attempted use of interstate facilities to transmit information about a minor on September 24, 2018.
- Anthony Magana, 31, of Boise, was sentenced by Chief U.S. District Judge David C. Nye to 60 months in federal prison, followed by 5 years of supervised release, for attempted use of interstate facilities to transmit information about a minor on October 11, 2018.
- Gary Baker, 49, of Caldwell, was sentenced by U.S. District Judge B. Lynn Winmill to 60 months in federal prison, followed by 5 years of supervised release, for attempted use of interstate facilities to transmit information about a minor on November 1, 2018.
- Omar Luna, 28, of Boise, was sentenced by U.S. District Judge B. Lynn Winmill to 60 months in federal prison, followed by 5 years of supervised release, for attempted use of interstate facilities to transmit information about a minor on November 1, 2018.
- Jerry Moore, 43, of Weiser, was sentenced by Chief U.S. District Judge David C. Nye to 180 months in federal prison, followed by five years of supervised release, for attempted sexual exploitation of children on November 19, 2018.
- Robert Williams, 39, of Boise, was sentenced by U.S. District Judge B. Lynn Winmill to 60 months in federal prison, followed by 5 years of supervised release, for attempted use of interstate facilities to transmit information about a minor on December 17, 2018.
- Chancey Bailey, 33, of Carlin, Nevada, was sentenced by U.S. District Judge B. Lynn Winmill to five years of probation and six months of home confinement, for attempted transfer of obscene matter to a minor on July 9, 2019.
The cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
# # #
Martinsburg man admits to drug traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Tywonne Crawford, of Martinsburg, West Virginia, has admitted to distributing cocaine and heroin, United States Attorney Bill Powell announced.
Crawford, age 39, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base.” Crawford admitted to conspiring with others to distribute heroin and cocaine base from October to November 2018 in Berkeley County.
Crawford 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 Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, 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.
Man Believed to Have Entered US Illegally Charged with Fraud, Aggravated Identity TheftRead the Press Release
ERIE, Pa. – An individual believed to have entered the United States illegally in March 2018 has been indicted by a federal grand jury in Erie on charges of access device fraud and aggravated identity theft, United States Attorney Scott W. Brady announced today.
The 12-count indictment named Janos Vaczi, 48, as the sole defendant.
According to the indictment presented to the court, from in and around March 2018, to on or about June 22, 2019, Vaczi conspired to use unauthorized access devices by installing skimming equipment on ATMs in the Western District of Pennsylvania and elsewhere, which resulted in losses to banks, credit unions and their customers.
The law provides for a maximum total sentence of 60 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
MS-13 Member Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – An MS-13 member was sentenced yesterday in federal court in Boston to racketeering conspiracy.
Nelson Cruz Rodriguez Cartagena, a/k/a “Inquieto,” 25, a Salvadoran national illegally residing in Everett, was sentenced by U.S. District Court Judge William G. Young to 17 years in prison and three years of supervised release. Rodriguez will be subject to deportation proceedings upon completion of his sentence. In April 2019, Rodriguez pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly referred to as RICO conspiracy. Rodriguez was arrested in Everett after law enforcement determined that he had reentered the United States after having been deported in 2016.
Rodriguez is a full member, or “homeboy,” in MS-13’s Everett Locos Salvatrucha (ELS) clique. On recorded prison calls with a detained ELS clique leader, Rodriguez discussed buying guns for the ELS clique; maintaining and supervising the clique’s marijuana trafficking business; the need to collect dues from clique members; the need to send money to MS-13 leaders in El Salvador due on the 13th of each month; and reporting on the clique’s day-to-day racketeering activities. When the clique leader began to suspect that a member of the ELS clique had cooperated with law enforcement leading to his arrest, he enlisted Rodriguez’s help to ferret out the informant. Rodriguez provided the true names of two young ELS clique members, and the leader concluded that one of them, Jose Aguilar Villanueva, a/k/a “Fantasma,” was the clique member responsible for his arrest. Once ELS (incorrectly) identified Villanueva as an informant, members of ELS, including Rodriguez, met at the clique’s “destroyer house,” – a residence where clique members stored knives, machetes, marijuana, and money – to discuss gang business and to plan the murder of Villanueva. Ultimately, on the night of July 5, 2015, two young ELS probationary members, or “chequeos,” lured Villanueva into a park in Lawrence and stabbed him to death. Villanueva was 16-years-old.
On Jan. 2, 2016, three young ELS clique members murdered 19-year-old Omar Reyes, an associate of the rival gang,18th Street, by shooting him in the head under a bridge in Everett. Immediately after the murder, the ELS clique members called Rodriguez, who called another ELS homeboy to report the murder. Rodriguez then helped the three ELS clique members hide the murder weapon from the police.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Carol Mici of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Rachel Rollins; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement. The U.S. Marshals Service for the District of Massachusetts provided crucial assistance with the case.
Local Woman Sentenced for Filing False Income Tax ReturnsRead the Press Release
PITTSBURGH, PA - A resident of Western Pennsylvania has been sentenced in federal court to one day incarceration and one year probation, including eight months home confinement, and restitution in the amount of $47,378 payable to the Internal Revenue Service on her conviction of filing false income tax returns, United States Attorney Scott W. Brady announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Tina Gordon of Allegheny County, Pennsylvania.
According to information presented to the court, Gordon filed two false tax returns for calendar years 2010 and 2011, which were verified by written declarations that Gordon knew were false. In the 2010 tax return, Gordon falsely stated that her "other income" (line 21 of Form 1040) was $13,250, whereas, as she then and there well knew her "other income" was in fact much greater, an amount of approximately $69,076 (approximately $55,826 of unreported "other income"). In the 2011 tax return, Gordon falsely stated that her "other income" (line 21 of Form 1040) was $1,856,252 (identified elsewhere in her return as "gambling winnings"), whereas, as she then and there well knew, her "other income" was in fact much greater, an amount of approximately $1,996,226 ("approximately $139,974 of unreported "other income").
United States Attorney Brady commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Tina Gordon.
Lake county man sentenced to 31 years in prison for offenses involving the sexual and physical abuse of a minor in connection with marijuana traffickingRead the Press Release
SAN FRANCISCO – Ryan Alan Balletto was sentenced to 372 months in prison today for his role in a conspiracy to manufacture, possess with intent to distribute, and distribute marijuana; his possession of firearms in furtherance of narcotics trafficking; and his employment of a minor to violate drug laws, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge San Francisco and Northern California) Ryan Spradlin. The sentence was handed down by the Honorable Charles R. Breyer, Senior United States District Judge.
Balletto, 36, of Lake County, Calif., pleaded guilty to the charges on December 7, 2018. According to his plea agreement, Balletto admitted he worked with others to grow more than 1,300 plants of marijuana in 2013 in Lake County with the intention of selling the marijuana for profit. In connection with the marijuana-growing operation, Balletto coerced a female minor (then 15 years old) into working in the marijuana grow. Balletto initially met the 15-year-old victim in Los Angeles, and offered to let her live with his family in Northern California. Instead, he drove her to his rural marijuana cultivating site in Lake County and coerced her into helping with marijuana cultivation. In connection with this coercion, Balletto admitted to physically abusing the minor victim, including by forcibly confining her in a small, metal tool chest for an extended period of time, restraining her, and electrically shocking her. In addition, Balletto admitted to sexually abusing the minor victim by having non-consensual sex with her while requiring her to work on the marijuana grow.
In addition, Balletto admitted to possessing numerous firearms, including two .223 caliber assault rifles, in furtherance of the marijuana-growing operation.
Balletto further admitted that, upon learning that the police were looking for the minor victim, a co-conspirator instructed her to call 9-1-1 and tell them that she was with friends and was “all right.”
A federal grand jury handed down an indictment on August 1, 2013, charging Balletto with one count of each of conspiracy to manufacture, possess with intent to distribute, and distribution of marijuana, in violation of 21 U.S.C. § 846; manufacturing marijuana, in violation of 21 U.S.C. § 841(b)(1)(A); possession of firearms in furtherance of narcotics trafficking, in violation of 21 U.S.C. § 924(c); employment of a minor to violate drug laws, in violation of 21 U.S.C. § 861. Balletto pleaded guilty to all counts except the substantive distribution charge. Balletto has been in custody since his arrests in May 2013 and will begin serving his prison term immediately.
Also charged in the August 1, 2013, indictment was Balletto’s co-defendant Patrick Stephen Pearmain, 31, of Lake County. On October 23, 2018, Pearmain, pleaded guilty to employment of a minor to violate drug laws and conspiracy to manufacture, possess with intent to distribute, and distribute marijuana. On April 19, 2019, Judge Breyer sentenced Pearmain to serve 150 months in prison for his role in the scheme.
The female, minor victim was rescued, and both men were arrested, as a result of the joint efforts of the Department of Homeland Security – Homeland Security Investigations, the Drug Enforcement Administration, the Department of Defense – Criminal Investigation Service, the Lake County Sheriff’s Department, the Los Angeles Police Department, and the West Sacramento Police Department. The men were prosecuted by the United States Attorney’s Office for the Northern District of California with significant assistance from the Lake County District Attorney’s Office.
Assistant U.S. Attorneys Matthew L. McCarthy and Kevin J. Barry are prosecuting the case on behalf of the United States Attorney’s Office, with assistance from the Lake County District Attorney’s Office. The prosecution is the result of an investigation by Homeland Security Investigations, with the cooperation of the law-enforcement agencies listed above.
Jacksonville Man Sentenced to 30 Years in Prison After Conviction for Crack Cocaine ConspiracyRead the Press Release
GREENVILLE – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that yesterday Senior United States District Judge Malcolm J. Howard sentenced, ANTHONY DEPREE SMITH, also known as “Straight,” a 45-year-old resident of Jacksonville, to 360 months imprisonment followed by 5 years of supervised release. SMITH was convicted on January 30, 2019, following a two-day trial, of Conspiracy to Possess with the Intent to Distribute Two Hundred Eighty (280) Grams or More of Cocaine Base (Crack).
The evidence at trial showed that SMITH had operated a decades-long crack cocaine organization in the city of Jacksonville, North Carolina, supplying multiple people with crack cocaine for resale on the street. Members of the Jacksonville Police Department conducted over a dozen controlled purchases of crack cocaine from members of SMITH’s organization and ultimately linked those drugs back to their supplier, SMITH. At trial, the evidence included a financial investigation which showed that SMITH had deposited over $118,000 in cash into a bank account that could not be accounted for from other, legitimate sources.
The following additional individuals were charged in relation to the drug conspiracy as part of Operation Straight Outta Niru, and their sentences are listed below:
- Cotomi Jamel Cooper of Jacksonville, North Carolina – 156 months in prison
- Leroy Edward Dinkins of Jacksonville, North Carolina – 65 months in prison
- Jesse Lee Parker of Jacksonville, North Carolina – 84 months in prison
- Matthew Smith of Jacksonville, North Carolina – 60 months in prison
- Kenneth Sylvester Dennis of Jacksonville, North Carolina – 86 months in prison
- Angelina Renee Diehl of Jacksonville, North Carolina – 72 months in prison
- Horace Cox of New Bern, North Carolina – 68 months in prison
- Terry Humphrey of Jacksonville, North Carolina – 24 months in prison
- Yvonda Jean Lewis of Jacksonville, North Carolina – 6 months in prison
Mr. Higdon commented: “The prosecution of Anthony Smith, and others like him, highlights our focus as we seek to take our communities back from drug traffickers and violent criminals. Smith controlled a significant portion of the illegal drug trade which plagued Jacksonville for many years. His conviction is an important step in helping law enforcement and the people of Jacksonville to eliminate this problem and it is an important step in our effort to “Take Back North Carolina.”
This case was brought using 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.
The case was investigated by the Jacksonville Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the United States Marshals Service. Laura S. Howard prosecuted the case on behalf of the United States.
Illegal Alien Receives Significant Sentence for Unlawfully Being in the CountryRead the Press Release
BROWNSVILLE, Texas – A 44-year-old Mexican national has been ordered to federal prison for being an aggravated felon who illegally re-entered the United States, announced U.S. Attorney Ryan K. Patrick.
Juan Ramon Arevalo-Guzman pleaded guilty Dec. 21, 2018. He has a history of violent felony robberies in Hidalgo County and was previously deported and ordered not to return.
Today, U.S. District Judge Rolando Olvera ordered Arevalo-Guzman to serve an 84-month term of imprisonment. Not a U.S. citizen, he is expected to again face deportation proceedings following the sentence.
Arevalo-Guzman had aggravated felony convictions in 2002 and 2008. He had terrorized and robbed U.S. citizens at knife point, including one instance in which he committed carjacking and forced the victim to drive him to another city before stealing the vehicle.
On more than 15 separate occasions, Arevalo-Guzman robbed or caused disturbances at a local Hidalgo County church by assaulting the members in the parking lot.
Following his last conviction, he had been removed from the United States – Feb. 15, 2017.
However, he re-entered the country illegally on or about Nov. 1, 2018. At that time authorities found Arevalos-Guzman in the Rio Grande River area near Donna.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Assistant U.S. Attorney Justin Schorr Dinsdale prosecuted the case.
Honduran Man Sentenced for Immigration CrimeRead the Press Release
BECKLEY, W.Va. – A Honduran man was sentenced to “time served” for an immigration crime, announced United States Attorney Mike Stuart. Elmer Hernandez, 30, entered a guilty plea to the felony offense of Reentry of a Removed Alien on May 15, 2015 and has been in federal custody for four months. He was immediately remanded to ICE officials for removal proceedings. Stuart commended the work of U.S. Immigration and Customs Enforcement (ICE) and the West Virginia State Police.
“Like so many others, Hernandez returned to the United States illegally after a previous removal,” said United States Attorney Mike Stuart. “We will continue to prosecute line skippers until they follow our laws.”
On March 9, 2019, a West Virginia State Police trooper saw a car that was stopped at Mile Marker 52 on the West Virginia Turnpike outside of Beckley, Raleigh County, West Virginia. Three men were standing outside a car with its emergency blinkers on. When the trooper pulled in, the men ran to the car and began to drive away. The trooper asked the driver what was happening and for a drivers license. The driver could not communicate with the trooper due to a language barrier and did not have a drivers license. The trooper contacted a translator service provided by ICE to assist. The driver and two other individuals spoke with ICE agents telephonically and all three were found to be in the United States illegally. All three men were taken into custody and fingerprinted. Hernandez, one of the three men, was found to be a prior reentry. Specifically, his prints matched a prior removal from Pennsylvania in 2015. Hernandez further admitted to ICE agents that he was in the United States illegally and had not obtained permission to legally enter the United States. He had not otherwise sought legal status or citizenship. Hernandez further admitted to ICE agents that he was a Honduran citizen.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Erik S. Goes is responsible for the prosecution.
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Heir Location Services Company and Co-Owner Plead Guilty to Antitrust Charge for Long-Running Agreement Not to CompeteRead the Press Release
Kemp & Associates Inc., a Salt Lake City-based heir location services provider, and its co-owner, Daniel J. Mannix, pleaded guilty to allocating customers with another heir location services firm, the Department of Justice announced today.
Kemp & Associates and Mannix pleaded guilty to a one-count felony indictment filed on Aug. 17, 2016 in the U.S. District Court in Salt Lake City. The indictment charged Kemp & Associates and Mannix with conspiring with a competitor to suppress and eliminate competition by agreeing to allocate customers of heir location services sold in the United States between 1999 and 2014. With today’s pleas, three executives and two companies have entered guilty pleas as a result of the federal antitrust investigation into customer allocation, price fixing, bid rigging, and other anticompetitive conduct in the heir location services industry.
“For over a decade, the defendants conspired to enrich themselves and to deprive heirs pursuing their rightful inheritances of the benefits of competition,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Allocation schemes distort markets and cheat customers. The Division will not waver in its commitment to protect consumers in all markets from schemes long-condemned as per se illegal.”
Heir location firms identify people who may be entitled to an inheritance from the estate of someone who died without a will. The heir location firms then enter into agreements with those people to help secure their inheritances in exchange for a fee. Kemp & Associates, Mannix, and their co-conspirators implemented their conspiracy when they contacted the same heir that had not yet signed with an heir location company. The company that was second to contact that heir then stopped competing for that and certain remaining unsigned heirs to the estate. In exchange for not competing, the second company received from the first company a portion of the fees ultimately collected from those heirs.
Kemp & Associates and Mannix previously challenged the application of the per se rule in this matter. Under the per se rule, certain restraints of trade are condemned as categorically illegal. In June 2017, the U.S. District Court for the District of Utah ruled the customer allocation alleged in the indictment would be tried under the rule of reason. The Division appealed the decision to the Tenth Circuit. In October 2018, the Tenth Circuit found it did not have jurisdiction to address the application of the rule of reason, but encouraged the district court to “reconsider its rule of reason order.” In February 2019, the district court granted the United States’ Motion to Reconsider and found the per se rule applies to the horizontal customer allocation agreement alleged in the indictment.
Kemp & Associates agreed to pay a $1.53 million criminal fine for its role in the conspiracy. In a separate plea agreement, Mannix also agreed to pay a $77,595.93 criminal fine. Mannix and the Antitrust Division have jointly agreed to allow the Court to determine an appropriate sentence regarding incarceration. The terms of the plea agreements are subject to the approval of the Court.
A criminal violation of Section 1 of the Sherman Act carries maximum penalties of a $100 million fine for corporations and 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The pleas are the result of the investigation into the heir location services industry conducted by the Antitrust Division’s Chicago Office and the FBI’s Salt Lake City Division, with assistance from the U.S. Attorney’s Office in Salt Lake City and the U.S. Attorney’s Office in Chicago.
Anyone with information on customer allocation, bid rigging, price fixing, or other anticompetitive conduct related to the heir location services industry should contact the Antitrust Division’s Chicago Office at 312-984-7200.
Hearing Set for Michael Lambert Seabrooke in Federal CourtRead the Press Release
Greenville, South Carolina --- United States Attorney Sherri A. Lydon announced today that Michael Lambert Seabrooke, of Columbia, was arrested on a federal criminal complaint and charged with possessing firearms (destructive devices) which are not registered to him in the National Firearms Registration and Transfer Record.
Seabrooke will have a detention and preliminary hearing at 10:00 a.m. on Monday, July 15, 2019, on the third floor of the Clement F. Haynsworth Federal Courthouse, 300 East Washington Street, Greenville, South Carolina. United States Magistrate Judge Kevin McDonald will preside.
This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pickens Police Department. It is being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville Office.
U.S. Attorney Lydon stated that all charges in this case are merely allegations and that the defendant is presumed innocent until and unless proven guilty.
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Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jesse Pack, of Clarksburg, West Virginia, was sentenced today to 21 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Pack, age 24, pled guilty to one count of “Unlawful Possession of a Firearm” in March 2019. Pack, an unlawful user of a firearm, admitted to having a .9mm pistol in Harrison County in June 2018.
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 Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part 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. District Judge Thomas S. Kleeh presided.
Green Bay Man Sentenced for Threatening and Obscene Telephone Calls to Daycare CentersRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 8, 2019, Michael J. Propst (age: 46) of Green Bay, Wisconsin was sentenced to 84 months in federal prison by Chief District Judge William C. Griesbach.
Propst was convicted of two counts of “Threatening Interstate Communications,” in violation of Title 18, United States Code, Section 875(c), and a single count of “Making Obscene or Harassing Telephone Calls,” in violation of Title 47, United States Code, Section 223(a)(1)(C). The charges stemmed from telephone calls made by Propst to two different daycare facilities in the State of Indiana. Propst phoned the daycare facilities and claimed that he had one of their pupils in his custody and was at that time violently raping the child causing the toddler to bleed and suffer internal injuries. The panicked daycare workers were forced to quickly perform a head-count of the children while they contacted authorities.
The Green Bay Office of the F.B.I. became involved and discovered that a federal investigation into Propst’s actions was underway in the State of Delaware. The investigation revealed that authorities linked Propst to similar obscene and threatening telephone calls in fifteen states stretching from Maine to California. Propst’s job as a long-haul trucker made it practically impossible for local authorities to investigate his obscene and threatening phone calls given that he and his telephone were constantly moving through different legal jurisdictions.
At the sentencing hearing, the government demonstrated an almost 20 year pattern of Propst engaging in telephone calls to daycare centers, schools, and retail establishments depicting the violent rape of young children. Records reflect that Propst was convicted by local authorities in the State of Florida in 1999 for making virtually identical obscene and threatening telephone calls while living in Polk County, Florida. In 2002, he was convicted by federal authorities in the Middle District of Florida and sentenced to 41 months of imprisonment. It appeared the calls only ceased while Propst was incarcerated. The evidence showed and Propst admitted that these calls were made for the purpose of his own sexual gratification.
In handing down the sentence, Chief Judge Griesbach noted the defendant’s pattern of criminal activity was very serious and far more than merely harassing in nature. Rather, the judge characterized Propst’s telephone calls as akin to “terrorism,” since they were intended to cause terror in the victims answering his calls. He cited Propst’s “poor character” and “less than credible statements of remorse” as justifying a substantial prison sentence of 84 months.
The judge’s sentence was more than two and a half times longer than is called for in the federal sentencing guidelines. Following his imprisonment, Propst will serve 36 months on federal supervised release.
This case was investigated by the F.B.I.’s Resident Agencies in Green Bay, Wisconsin, and Wilmington, Delaware, the U.S. Attorney’s Office for the District of Delaware, the Green Bay Police Department, and the Manitowoc County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Four KCMO Residents Plead Guilty to Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – Four Kansas City, Missouri, residents have pleaded guilty in federal court to their roles in a series of armed robberies.
Brion L. McDonald, 30, and Felicia D. Green, 42, pleaded guilty today before U.S. District Judge Stephen R. Bough. McDonald pleaded guilty to one count of robbery. Green pleaded guilty to participating in a conspiracy to commit robbery and to possessing a firearm in furtherance of a crime of violence.
Co-defendant Clyde H. Jackson, Jr., 30, pleaded guilty yesterday to seven counts of robbery, one count of possessing a firearm in furtherance of a crime of violence, and one count of being a felon in possession of a firearm.
Co-defendant Thomas E. Davis, 42, pleaded guilty on July 1, 2019, to five counts of robbery and to possessing a firearm in furtherance of a crime of violence.
The defendants each admitted they were part of a group of individuals committing armed robberies in the Kansas City, Missouri, metropolitan area.
Jackson, Davis, and Green were involved in the armed robberies of Family Dollar, 5242 Blue Ridge Blvd. in Kansas City, on Jan. 12, 2018; Dollar General Store, 8716 Blue Ridge Blvd. in Kansas City, on Jan. 20, 2018; Family Dollar, 9120 E. 35th Street South in Independence, Missouri, on Jan. 22, 2018; and Family Dollar, 3017 Prospect Ave. in Kansas City, on Jan. 26, 2018 (Davis discharged a firearm during this robbery).
Jackson and McDonald each admitted he was involved in the armed robbery of Pizza Hut, 7624 Wornall Road in Kansas City, on March 19, 2018.
Davis was also involved in the armed robbery of Dollar General Store, 9101 E. 63rd St. in Raytown, Missouri, on Oct. 25, 2017. Davis brandished a knife during that robbery.
Jackson admitted he also was involved in an attempted robbery of the Pizza Hut at 7624 Wornall Road on March 20, 2018, and of Dollar General, 5008 N.E. Parvin Road in Kansas City, on March 20, 2018. Jackson also admitted that he was in possession of a Glock .45-caliber pistol and various rounds of ammunition on March 23, 2018. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jackson has prior felony convictions for larceny and robbery.
Under the terms of their plea agreements, Jackson and Davis are each subject to a sentence of at least 20 years in federal prison without parole, up to 30 years in federal prison without parole. Sentencing hearings for Jackson and Davis will be on Nov. 7, 2019. Sentencing hearings for Green and McDonald will be on Nov. 25, 2019.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, and the Raytown, Mo., Police Department.
Former Secretary of Puerto Rico Department of Education and Former Executive Director of Puerto Rico Health Insurance Administration Indicted with Four Others for Conspiracy, Wire Fraud, Theft of Government Funds, and Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico– Julia Beatrice Keleher, former Secretary of the Puerto Rico Department of Education (“PR DOE”), Ángela Ávila-Marrero, former Executive Director of the Puerto Rico Health Insurance Administration (“ASES”), Alberto Velázquez-Piñol, Fernando Scherrer-Caillet, Glenda Ponce-Mendoza, and Mayra Ponce-Mendoza have been indicted and arrested for their participation in a conspiracy to steal and convert federal funds involving fraudulently obtained contracts from the PR DOE and ASES, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The Federal Bureau of Investigation is handling the investigation with the United States Department of Education, Office of Inspector General, and the United States Department of Health and Human Services, Office of Inspector General.
The indictment returned yesterday, July 9, 2019, by a federal grand jury in the District of Puerto Rico, includes 32 counts against the following individuals:
- Julia Beatrice Keleher (“Keleher”), the Secretary of the Puerto Rico Department of Education (PR DOE) from January 2017 until April 2019;
- Ángela Ávila-Marrero (“Ávila-Marrero”), the Executive Director of the Puerto Rico Health Insurance Administration, from February 2017 until June 25, 2019;
- Alberto Velázquez-Piñol (“Velázquez-Piñol”), President of Azur, L.L.C. (“Azur”);
- Fernando Scherrer-Caillet (“Scherrer-Caillet”), managing partner of BDO, Puerto Rico, P.S.C.;
- Glenda E. Ponce-Mendoza, Special Assistant to PR DOE Secretary Keleher;
- Mayra Ponce-Mendoza, owner of Colón & Ponce, Inc., and sister of defendant Glenda E. Ponce-Mendoza.
The indictment alleges that the defendants used Keleher’s and Ávila-Marrero’s positions as Secretary of PR DOE and Executive Director of ASES, respectively, to benefit and enrich themselves and defraud the United States as follows:
- Count 1 of the Indictment charges a wire fraud conspiracy. The purpose of the conspiracy was to steer contracts between the PR DOE and Colón & Ponce, a company owned by Mayra Ponce Mendoza. This was accomplished through a corrupted bidding process pursuant to a Request for Proposal (“RFP”), wherein Colón & Ponce was provided with a competitive advantage over other bidders based in part, on the close relationship between Keleher, Glenda Ponce-Mendoza, and her sister Mayra Ponce-Mendoza. Despite being unqualified under the terms of the RFP, Colón & Ponce was awarded a $43,500 contract, which was later increased to $95,000. The increased amount was used to pay in part the salary of one of Keleher’s special assistants. Keleher pressured a PR DOE official identified as Individual B in the indictment to execute the Colón & Ponce contract on behalf of PR DOE. Counts 2 through 11 list the wire communications transmitted by Keleher and the Ponce-Mendoza sisters in order to perpetrate the scheme set forth in Count 1.
- Count 12 of the Indictment charges Keleher, Velázquez-Piñol, and Scherrer-Caillet with conspiring to violate 18 U.S.C. § 641 (theft and conversion of government money and property in excess of $1,000). The conspiracy and scheme to defraud involved federal funds paid by PR DOE to BDO for several contracts totaling over $13 million from January 2017 until April 2019. Despite express prohibitions in said contracts, BDO subcontracted other companies to perform the services, and paid Velázquez-Piñol, through his company Azur, a 10% commission for the contracts awarded through Velázquez-Piñol’s influence with government officials. By paying unauthorized commissions, the cost of government contracts was unnecessarily inflated and increased. Velázquez-Piñol, through Azur, received approximately $219,059 in commissions from BDO for the PR DOE contracts it was awarded. Counts 13 through 18 list the wire communications transmitted and caused to be transmitted in interstate commerce, all in furtherance of the conspiracy, scheme to defraud, and the theft of federal funds.
- Count 19 charges Ávila-Marrero, Velázquez-Piñol, and Scherrer-Caillet with conspiring to violate 18 U.S.C. § 641 (theft and conversion of government money and property in excess of $1,000). The conspiracy and scheme to defraud involved federal funds paid by ASES to BDO for several contracts totaling $2.5 million during the period between January 2017 and June 2019. Ávila-Marrero provided internal ASES information on several contracts to Velázquez-Piñol. BDO and other companies used this internal information, provided by Velázquez-Piñol, to submit proposals to ASES, and replace the existing contracts. During ASES board meetings, Ávila-Marrero recommended the cancellation of the contracts and the award of replacement contracts to BDO and another company represented by Velázquez-Piñol. Despite express prohibitions in said contracts, BDO subcontracted other companies to provide the services, and paid Velázquez-Piñol, through his company Azur, a 10% commission for the contracts awarded through Velázquez-Piñol’s influence with government officials. By paying unauthorized commissions, the cost of government contracts was unnecessarily inflated and increased. Velázquez-Piñol received approximately $710,000 in payments from BDO for the ASES contracts it was awarded. Counts 20 through 25 list the wire communications transmitted and caused to be transmitted in interstate commerce, all in furtherance of the conspiracy, scheme to defraud, and the theft of federal funds.
The indictment also includes a money laundering conspiracy charge against Velázquez-Piñol and Scherrer-Caillet, and six substantive money laundering counts against Velázquez-Piñol.
“Public corruption continues to erode the trust between government officials and our citizens. Defendants Keleher and Ávila-Marrero exploited their government positions and fraudulently awarded contracts funded with federal monies. The greed of the private individuals charged along with these former government officials, resulted in inflated government contracts which deprived our citizens of much needed education and health services,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “Government officials are entrusted with performing their duties honestly and ethically. The charged offenses are reprehensible, more so in light of Puerto Rico’s fiscal crisis.”
“Yesterday’s indictment alleges that these individuals were involved in a public corruption campaign and profited at the expense of Puerto Rico’s children. That is completely unacceptable,” said Neil E. Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southern Regional Office. “OIG Special Agents will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students. America’s students, their families, and taxpayers deserve nothing less.”
“The illegal granting of contracts paid with monies from the Medicaid program is unacceptable. The Medicaid program is intended to provide health care benefits to low-income individuals and families, and any improper use of these funds will jeopardize its future availability. HHS-OIG and its law enforcement partners will continue to aggressively pursue to the fullest extent of the law those who seek to unlawfully enrich themselves from Medicaid funds,” said Scott Lampert, Special Agent in Charge of HHS-OIG New York Regional Office.
“Today’s efforts are the result of true team work. Thanks to the admirable dedication of our partners at the United States Attorney’s Office, and the Inspectors General for both the Departments of Education and Health and Human Services, new schemes have been uncovered, along with attempts to hide the proceeds of those schemes. Moving forward with the help of our local partners, the FBI will continue to make apprehending and exposing those who would do harm to the People of Puerto Rico our top priority,” said Douglas A. Leff, Special Agent in Charge of the FBI.
The case is being prosecuted by Assistant U.S. Attorneys José Capó-Iriarte and Marie Christine Amy. If found guilty, the defendants are facing possible sentences of up to 10 years for conspiracy and theft of government funds, and up to 20 years for wire fraud and money laundering. The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
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Former Pharmacy Owner Pleads Guilty to Fraudulently Dispensing OpioidsRead the Press Release
ALEXANDRIA, Va. – A former pharmacy owner pleaded guilty today to fraudulently filling and dispensing thousands of prescription medications, including opioids, outside the usual course of professional practice.
According to court documents, Latif Mohamed Chowdhury, aka Gulam Latif Chaudhury, 28, operated, managed, directed, and controlled two now-defunct pharmacies known as Alexandria Care Pharmacy LLC (ACP-1) and Alexandria Care Pharmacy Store #2 LLC (ACP-2). Chowdhury has never been qualified to serve as a licensed pharmacist and has no medical qualifications. Nonetheless, between August 2015 and February 2016, Chowdhury fraudulently operated ACP-1 and ACP-2 by personally filling and dispensing thousands of dosage units of medications, including opioids, without a licensed pharmacist on-site. Chowdhury used the identities of licensed pharmacists, without their permission, to carry out his scheme.
Chowdhury admitted to fraudulently billing health insurance benefit programs, including Medicare and Medicaid, for refills of prescription medications that were not delivered to customers even though his pharmacies received payment for these prescriptions. Chowdhury also submitted fraudulent health insurance claims in the names of pharmacy customers for medications that were not authorized by any physician, and were not dispensed to any of the customers, in order to enrich himself through illicit profits generated by ACP-1 and ACP-2.
Furthermore, on several occasions, Chowdhury dispensed Schedule II controlled substances in the names of minors, including children as young as 7 and 8-years-old, outside the usual course of professional practice. During the execution of a search warrant, a loaded Colt .38-caliber firearm that belonged to Chowdhury was located in plain view on the pharmacy department shelves.
Chowdhury pleaded guilty to unlawful distribution of Schedule II controlled substances outside the usual course of professional practice, and also agreed to forfeit $500,000 as proceeds of his illegal conduct. He faces a maximum penalty of 20 years in prison when sentenced on September 27. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Raj Parekh and Monika Moore are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-203.
Former Director of Operations of Rockford Non-Profit Organization Sentenced to Prison for FraudRead the Press Release
ROCKFORD — The former director of operations of a Rockford non-profit organization was sentenced Tuesday by U.S. District Judge Philip G. Reinhard to 37 months in prison for mail fraud and tax fraud.
LEILANI HILLIS, 60, formerly of Rockford, was also ordered to pay restitution of $632,718.99 on the mail fraud charge and $151,186.91 on the tax fraud charge. Hillis pleaded guilty to the charges in March.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Tara Sullivan, Acting Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
According to a written plea agreement, since 2001 Hillis was an employee of a non-profit organization whose mission was to attract, retain and expand jobs in the Rockford area. The organization received funding from private sources and local governments. During her employment, Hillis handled the organization’s payroll, human resource matters and accounting, and oversaw the annual audit. As of 2009, Hillis had signatory authority on the organization’s bank account and access to the organization’s PayPal account. The organization issued employees, including Hillis, a credit card in the employee’s name. From 2009 through April 2018, Hillis used her employee issued credit card to make unauthorized purchases for her personal benefit totaling $632,718.99. Hillis concealed her crime by using the organization’s accounting codes to make it appear the purchases were for the organization’s benefit, and she forged the initials of the organization’s president on the expense reports. Hillis issued and signed checks from the organization’s account to the bank, knowing the payments included money to pay for her unauthorized purchases made with the organization’s credit card.
Hillis also admitted that she did not report as income the money from the organization that she used to pay the organization’s credit card for her unauthorized personal purchases. As a result, for the tax years 2014 to 2017, Hillis failed to pay $151,186.91 in federal income taxes.
Floyd County Man Sentenced to 180 Months for Armed Drug TraffickingRead the Press Release
PIKEVILLE, Ky. — On Monday, James William Miller was sentenced to 180 months in federal prison, by United States District Judge Robert E. Wier, for possession with intent to distribute methamphetamine, possession of a firearm in furtherance of drug trafficking, and felon in possession of a firearm.
The investigation revealed that Miller was trafficking in methamphetamine for approximately two years in and around Floyd County. A search of Miller’s residence in August of 2018, revealed eight firearms, including a semi-automatic AR-15, digital scales, distribution baggies, and a distribution quantity of methamphetamine. Miller had a prior conviction for Trafficking in a Controlled Substance, from December of 2014 in Floyd County Circuit Court. As a result of that conviction Miller was prohibited from possessing firearms.
Under federal law, Miller must serve 85 percent of his prison sentences. Upon his release, he will be under the supervision of the United States Probation Office for an additional four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Federal Bureau of Investigation Special Agent in Charge for the Louisville Field Division; Richard Sanders, Kentucky State Police Commissioner and John Hunt, Floyd County Sheriff, jointly made the announcement. The United States was represented by Assistant United States Attorney Jenna E. Reed.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Florida-Based Doctor Charged with Fraudulently Ordering Genetic TestsRead the Press Release
NEWARK, N.J. – A doctor based in Gainesville, Florida, was charged with conspiracy to commit health care fraud for ordering genetic tests for patients he never saw or treated, U.S. Attorney Craig Carpenito announced today.
Matthew S. Ellis, 53, of Gainesville, Florida, is charged by complaint with one count of conspiracy to commit health care fraud. Ellis made his initial appearance today before U.S. Magistrate Judge Mark Falk in Newark federal court and was released on $250,000 unsecured bond.
According to documents filed in this case and statements made in court:
Ellis served as the chief medical officer for Ark Laboratory Network LLC, a company that purported to operate a network of laboratories that facilitated genetic testing. Two conspirators who operated Ark, Edward Kostishion, 59, and Kacey Plaisance, 37, both of Florida, were each charged by complaint on Jan. 15, 2019, with one count of conspiracy to commit health care fraud.
In October 2018, Kostishion and Plaisance contacted a clinical laboratory in New Jersey and proposed sending the laboratory 10 DNA swabs for genetic tests in return for approximately 50 percent of the total Medicare payments the laboratory received as a result of the tests. Kostishion later sent 10 test orders to the laboratory that listed Ellis as the “Ordering Physician” and contained a certification from Ellis that the tests were medically reasonable and necessary. The test requests contained fraudulent information regarding medical histories and conditions, and falsely represented that Ellis provided the patients with information regarding genetic testing.
One of the test requests, relating to “Patient 1,” indicated that Patient 1 had a personal history of breast cancer at age 44, a prerequisite for Medicare coverage of the particular test requested. However, on Nov. 29, 2018, Patient 1 confirmed to law enforcement officials that the information on the test request was false; Patient 1 never had cancer and never told anyone about having cancer. Patient 1 also stated that Patient 1 submitted to the DNA swab after seeing an advertisement on Facebook that offered a $100 gift card for people interested in genetic testing. Patient 1 stated that the DNA swab was not taken at a medical office, but rather in a “plain old office building” and that “some random guy” took the swab. Patient 1 confirmed never seeing or speaking to a treating physician about the genetic testing, and never saw or spoke to Ellis, the ordering physician listed on the test request.
Ellis practices medicine in Florida, but Patient 1 was located in Oklahoma. All 10 of the patients in the test requests were located in Oklahoma, Arizona, Tennessee, or Mississippi. None of the patients were located in Florida. Additional investigation revealed that Ellis was not licensed to practice medicine in Oklahoma.
The health care fraud count carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations against the defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Flathead County man with five pounds of meth in vehicle sentenced to 12 years in prisonRead the Press Release
MISSOULA—A Flathead County resident who admitted possessing methamphetamine for distribution after law enforcement found five pounds of the drug in his vehicle was sentenced today to 12 years in prison and to five years of supervised release, said U.S. Attorney Kurt Alme.
James William Quen, 49, of Coram, pleaded guilty in March to possession with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided.
The prosecution said in court records that Quen’s vehicle was stopped for a traffic violation on Dec. 16, 2017 in St. Regis. A search warrant was later served on the vehicle and law enforcement recovered five pounds of meth inside. Five pounds of meth is the equivalent of about 18,120 doses. Investigators also received information that Quen had gone to Oregon to get the meth and had supplied pound quantities to another person, who had seen Quen in possession of 10 pounds of meth.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by Homeland Security Investigations and the Northwest Montana Drug Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Felon Sentenced to 19 1/2 Years in Prison for Facilitating the Sales of Methamphetamine in RenoRead the Press Release
RENO, Nev. – A felon who was found guilty for his involvement in a drug trafficking conspiracy to distribute methamphetamine in the Reno and Sparks area was sentenced today to 19 years and six months in federal prison to be followed by five years of supervised release, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Edward Smith, aka “Smitty,” 51, was convicted by a jury in November 2018, of conspiracy to possess and distribute at least 50 grams of methamphetamine, illegal use of a communication facility, money laundering, distribution of at least 50 grams of methamphetamine, and distribution of at least five grams of methamphetamine. Smith has 12 prior convictions. United States District Judge Howard D. McKibben presided over the jury trial and sentencing hearing.
According to court documents and evidence presented during the three-day trial, Smith, an inmate at the Northern Nevada Correctional Center, arranged for his niece's ex-boyfriend, whom he referred to as his “nephew,” to sell methamphetamine to another inmate’s associate in the Reno community. Smith told his “nephew” how much to sell the methamphetamine for, how to sell the drugs, and to smuggle an ounce or two of methamphetamine to him each time the “nephew” sold it. His “nephew” sold methamphetamine to the associate in Sparks, Nevada, with the last sale involving a pound of methamphetamine for $7,000.
The Drug Enforcement Administration, with the assistance of the Nevada Department of Corrections, and the Washoe County Sheriff’s Office, investigated the case. Assistant U.S. Attorney James Keller prosecuted the case.
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FBI New Haven Task Force Investigation Results in Narcotics Charges against 25 IndividualsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and New Haven Police Chief Otoniel Reyes today announced that a grand jury in New Haven returned a 15-count indictment yesterday charging 25 individuals with federal narcotics offenses related to the distribution of crack cocaine, cocaine and heroin in Connecticut and Massachusetts.
This matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department that targeted drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, also revealed that the drug trafficking organization had established a base of operation in Fitchburg, Massachusetts. The investigation subsequently identified a second drug trafficking network that involved the large-scale distribution of heroin.
Charged in the indictment are:
TOMMY JULIUS, a.k.a. “General” and “J,” 36, of New Haven
CARL MERRITT, a.k.a. “C,” 39, of New Haven
FRANK CARR, a.k.a. “FL,” 52, of Hamden
BRIAN K. BACKMAN, a.k.a. “B,” “NYB” and “New York B,” 54, of New Haven
ANDERSON ATKINSON, a.k.a. “Barry,” 58, of Hamden
BRYANT WILLIAMS, 44, of New Haven
JEFFREY BRAZIER, 49, of Hamden
ERIC BURRUSS, a.k.a. “E,” 40, of New Haven
MERVIN BRANDY, 52, of Hamden
PRISHONNA TURNER, a.k.a. “Nonnie,” 23, of Hartford
SHARMAINE CROSLEY, a.k.a. “Shar,” 35, of New Haven
JESSENIA ROMAN, a.k.a. “Red,” 32, of New Haven
THEODORE SMITH, a.k.a. “Ted,” 36, of New Haven
WANDA CARTER, a.k.a. “WaWa,” 40, of Hamden
GERARD SENIOR, 20, of New Haven
SHAVAR BELLAMY, a.k.a. “Lil B,” “LB” and “Little Black,” 33, of New Haven
MATTHEW MOORE, a.k.a. “Matt,” 44, of Fitchburg, Mass.
SHAUN ARMSTRONG, 39, of Fitchburg, Mass.
JAMAINE JACKSON, a.k.a. “Jack,” 45, of Bridgeport
MAKENE JACOBS, a.k.a. “Mac” and “Bridgeport,” 43, of West Haven
TYRESE STANLEY, a.k.a. “Scoot,” 29, of New Haven
MELVIN ROBERTS, a.k.a. “Psycho” and “Mel,” 62, of New Haven
DENA DRAUGHN, 55, of HamdenEighteen of the defendants were arrested today, five defendants were already in custody and two defendants are still being sought.
“As alleged, these drug trafficking networks have been responsible for the distribution of significant quantities of heroin, crack and cocaine in Connecticut and Massachusetts,” said U.S. Attorney Durham. “The U.S. Attorney’s Office will continue to work with our federal, state and local partners to stem the drug trade in our cities, and the violence associated with it, by prosecuting those involved in this criminal behavior.”
“Today’s takedown is yet another example of our great working relationship with the New Haven Police Department and all of our law enforcement partners across the state,” said FBI Special Agent in Charge Turner. “All of our efforts are aimed at improving the quality of life of all law abiding residents of Connecticut.”
“On behalf of the New Haven Police Department, I want to thank the FBI and all of our law enforcement partners for their work in this investigation and for the ongoing collaboration to reduce gun violence and improve the quality of life for the citizens of New Haven,” said Chief Reyes.
The indictment charges Julius, Merritt, Carr, Backman, Atkinson, Williams, Brazier, Burruss, Brandy, Turner, Crosley, Roman, Smith, Carter, Senior, Bellamy, Moore and Armstrong with one count of conspiracy to distribute, and to possess with intent to distribute, cocaine base (“crack”), cocaine and heroin. If convicted of this offense, based on the type and quantity of narcotics charged, Julius, Merritt, Carr, Burruss, Crosley and Bellamy face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. The other defendants, if convicted of this charge, face a maximum term of imprisonment of 20 years.
The indictment also charges Backman, Atkinson, Jackson, Jacobs, Stanley, Roberts and Draughn with one count of conspiracy to distribute, and to possess with intent to distribute, heroin. If convicted of this offense, based on the quantity of heroin charged, Backman, Atkinson and Draughn face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. The other defendants, if convicted of this charge, face a maximum term of imprisonment of 20 years.
On June 16, 2019, Atkinson and Draughn were arrested in connection with the seizure of approximately 10,000 bags of heroin.
The indictment also charges several defendants with one or more counts related to the distribution of various narcotics.
In addition, Merritt is charged with one count of possession of a firearm in furtherance of a drug trafficking offense, which carries a mandatory consecutive sentence of at least five years, and one count of possession of a firearm by a previously convicted felon, which carries a maximum term of imprisonment of 10 years. On April 12, 2019, Merritt was arrested after a search of his vehicle revealed a Berretta 9mm pistol and two loaded gun magazines. It is alleged that Merritt’s criminal history includes multiple felony convictions for assault, risk of injury and robbery.
At the time of Merritt’s arrest, he also possessed $73,343 in cash and six cell phones. The indictment seeks the forfeiture of the cash and Merritt’s 2018 Nissan Maxima.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction and the U.S. Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Elena L. Coronado.
Driving Force in Conspiracy to Distribute Meth Brought to Iowa in Car Part Boxes Sentenced to 30 Years’ in PrisonRead the Press Release
A man who conspired with others to distribute ice methamphetamine was sentenced yesterday to 30 years’ in federal prison.
Robert Lewis, age 44, from Janesville, Iowa, received the prison term after an August 22, 2018, jury verdict finding him guilty of conspiracy to distribute at least 500 grams of a mixture of methamphetamine and 50 grams of actual methamphetamine.
The evidence at trial showed that in the summer of 2013, Lewis began working with various individuals to distribute ice methamphetamine throughout the Waterloo area. Lewis and his associates obtained methamphetamine from an out-of-state source of supply who shipped the methamphetamine via FedEx concealed in car part boxes. Each shipment contained multiple pounds of methamphetamine which Lewis and others would break down into smaller quantities for redistribution once it arrived in Iowa. Lewis also used his daughter to register a car for the head of the drug organization and allowed other members of the conspiracy access to his home, referred to at trial as the “clubhouse,” for the purpose of repackaging and distributing methamphetamine. Lewis left Iowa in the fall of 2013, but continued to receive methamphetamine from his co-conspirators. In January 2014, one co-conspirator attempted to send Lewis methamphetamine hidden in a Hamburger Skillet prepared meal box. FedEx employees flagged the package as suspicious and investigators ultimately seized ¼ ounce of methamphetamine from the inside of the box.
The evidence at sentencing showed that after trial, Lewis obstructed justice by threatening and intimidating multiple individuals who testified as witnesses at the trial. This included telling one witness that he “was a dead man.”
Lewis was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Lewis was sentenced to 360 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Lewis is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, and the Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2084.
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