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Tuesday 9 July 2019
Anesthesiologist Indicted for Alleged Role in $7 Million Telemedicine Health Care Fraud ConspiracyRead the Press Release
Earlier today, in federal court in Brooklyn, Anna Steiner, an anesthesiologist, was arraigned on an indictment charging her with conspiracy to commit health care fraud for her alleged role in a telemedicine scheme to submit fraudulent claims to Medicare, Medicare Part D plans and private insurance plans. Steiner was previously arrested on a complaint in April 2019, and was arraigned this morning before United States District Judge I. Leo Glasser.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations (HHS OIG), announced the indictment.
“As alleged, Steiner claimed to provide telemedicine services to patients, but in reality, her telecare was a fiction and the claims submitted to Medicare unnecessary and fraudulent,” said United States Attorney Donoghue. “This Office and our law enforcement partners will continue vigorously investigating and prosecuting health care professionals who seek personal enrichment by stealing from a taxpayer-funded program.”
“Fraud against both public and private health care plans is not a victimless crime—the cost of doing business is ultimately transferred to members and taxpayers alike,” said FBI Assistant Director-in-Charge Sweeney. “More importantly, prescribing medication and medical equipment to patients for the sole purpose of turning a profit is not only unethical, it’s dangerous business. Today’s indictment is a victory for the FBI and our partners, the public at large, and those in the medical community who operate within the confines of the law.”
“When physicians boost their profits by billing federal healthcare programs for medically unnecessary services, the Office of Inspector General, along with our law enforcement partners, will thoroughly investigate such deceptive schemes,” said HHS-OIG Special Agent-in-Charge Lampert.
As alleged in the indictment, telemedicine is a service connecting medical providers with individuals who receive healthcare benefits through real-time, interactive audio and video telecommunications. Beginning in approximately January 2015, Steiner and other medical providers purported to practice telemedicine pursuant to agreements with an entity identified in the indictment as “Company-1” and others, in exchange for kickbacks paid for each purported telemedicine encounter with a beneficiary. In fact, Steiner and other medical providers signed numerous prescriptions and order forms for durable medical equipment (DME) and drugs for beneficiaries, when the DME and drugs were not medically necessary and not the result of an actual doctor-patient relationship or examination. Suppliers of DME and pharmacies then submitted to Medicare more than $7 million in claims, on behalf of more than 3,000 beneficiaries, including residents of the Eastern District of New York. Medicare paid more than $3 million on these claims.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorney Andrew Estes of the Fraud Section is in charge of the prosecution.The Defendant:
ANNA STEINER (also known as “Hanna Wasielewska”)
Age: 63
Valatie, New YorkE.D.N.Y. Docket No. 19-CR-295 (ILG)
Monday 8 July 2019
Woman Found Guilty of Assaulting Social Security Administration EmployeeRead the Press Release
Latasha Long, 41, of Ann Arbor, Michigan, was found guilty last week of assaulting an employee of the Social Security Administration (SSA), announced U.S. Attorney Matthew Schneider.
Joining Schneider in the announcement was Christopher Kiah, Special Agent in Charge of the Department of Homeland Security, Federal Protective Police.
The two-day jury trial was conducted before U.S. District Judge Judith Levy in Ann Arbor, Michigan. The jury deliberated approximately 90 minutes before returning their verdict.
According to the evidence presented at trial, on August 14, 2018, Long entered the offices of the Social Security Administration in Ann Arbor to discuss issues about her eligibility to continue receiving disability benefits. During her interview, an employee with the SSA informed Long that she had reported income on her tax returns which was too high for her to remain eligible for disability payments. The SSA employee invited Long to provide more evidence of her work and income levels so that SSA could make a determination. Long offered some explanations for her tax returns but the SSA employee explained that the agency already had that information, and that she would need to provide additional evidence. Long became angry and began hurling insults at the employee, calling her a “psycho” and saying that the employee “was the one who should be receiving benefits.” When the employee stood up to close the interview window, Long struck the employee in the face with a large binder, and then grabbed the employee’s shirt, pulling her closer while punching and scratching the employee. The victim sustained bruising and abrasions to her face and arms. The assault was captured on security cameras.
The maximum penalty for assault is 8 years in prison. A sentencing date has been set for November 4, 2019.
The case was investigated by agents of the Department of Homeland Security, Federal Protective Police. The case was prosecuted by Assistant United States Attorneys Thomas Franzinger and Trevor Broad.
Winnebago Man Sentenced for Domestic Assault by a Habitual OffenderRead the Press Release
United States Attorney Joe Kelly announced that Ronald Gene Frazier, age 38, was sentenced today in federal court in Omaha, Nebraska, for Domestic Assault by a Habitual Offender. The Honorable Laurie Smith Camp sentenced Frazier to 24 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Frazier will begin a three-year term of supervised release.
On about August 20, 2018, within the Winnebago Indian Reservation, Frazier assaulted a female victim who was Frazier’s intimate partner. Frazier broke the victim’s cellular telephone and hit and choked the victim. Prior to this incident, Frazier had been convicted of assaulting an intimate partner on three prior occasions.
The case was investigated by the Thurston County Sheriff’s Office, the Winnebago Police Department, and the Federal Bureau of Investigation.
United States Attorney General William Barr Visits South Carolina U.S. Attorney’s OfficeRead the Press Release
Columbia, South Carolina --- United States Attorney General William P. Barr traveled to Columbia, South Carolina, today for a breakfast with law enforcement officials and a visit to the United States Attorney’s Office. United States Attorney Sherri A. Lydon hosted the breakfast with federal, state, and local law enforcement at the University of South Carolina School of Law. Officials discussed with Attorney General Barr the importance of the thriving partnerships between the U.S. Attorney’s Office and law enforcement across the state in tackling violent crime and the opioid epidemic.
Following the breakfast, Attorney General Barr visited with the staff of the United States Attorney’s Office. He remarked that the Office’s brand is “excellence,” and that that brand is reflected in the many important cases the Office prosecutes each year. Attorney General Barr was briefed on some of the U.S. Attorney’s Office’s biggest ongoing cases, including Operation Brace Yourself, which originated in South Carolina and is now the largest federal healthcare fraud investigation in the history of the Federal Bureau of Investigation. The District of South Carolina is the second U.S. Attorney’s Office Attorney General Barr has visited since he was sworn in as the 85th Attorney General on February 14, 2019.
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Two Men Sentenced to Prison for Their Roles in a Pharmacy RobberyRead the Press Release
Two men from Eastpointe were sentenced today for their role in the robbery of a pharmacy and related drug offenses, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation, Detroit Division.
Sentenced were Larry Baker, III, age 21, and Devin Reed, age 19. Baker was sentenced to 72 months and Reed was sentenced to 60 months today. In addition to the prison sentences, both defendants were ordered to serve 3 years of supervised release. United States District Judge Nancy G. Edmunds of the Eastern District of Michigan imposed the sentences.
According to court records, in the early hours of June 26, 2018, Baker, Reed, and two other individuals broke into a Walgreens pharmacy located in Eastpointe, Michigan and stole two safes filled with prescription medications. They placed the safes in the bed of a stolen truck and drove away. Police encountered the truck and a pursuit ensured. During the pursuit, the safes containing the medications fell from the bed of the truck and broke open. The truck eventually lost control and crashed. Baker, Reed, and the two other individuals then fled on foot. After a foot chase, the police were able to stop and arrest the defendants. The total quantity of drugs taken was over 25,000 pills with a total value of more than $100,000. Many of the pills contained opioids like fentanyl, hydrocodone, and oxycodone.
The investigation of the case was conducted by special agents and task force officers of the Federal Bureau of Investigation. Assistant United States Attorney John Meixner prosecuted the case for the United States.
Tulsa Man Pleads Guilty to Payroll Tax FraudRead the Press Release
A computer software development company owner pleaded guilty today to failing to account for and pay over employment taxes withheld from his employees’ wages announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores for the Northern District of Oklahoma.
According to documents and information provided to the Court, as the owner and operator of Tulsa-based Zealcon Corporation, Earenest J. Grayson Jr. was responsible for withholding, accounting for and paying over to the Internal Revenue Service (IRS) payroll taxes and withholdings due on the wages paid to Zealcon employees. For the period, January 2014 through June of 2016, Grayson intentionally caused a total tax loss of more than $1 million by intentionally not paying to the IRS income and social security taxes withheld from Zealcon employees’ wages and social security taxes due from Zealcon on those wages.
“Failing to account for or pay payroll taxes is not acceptable,” said Principal Deputy Assistant Attorney General Zuckerman of the Justice Department’s Tax Division. “The Department of Justice, working with the IRS, will ensure that our tax system is fairly enforced throughout the country.”
“Earenest Grayson is a dishonest employer who cheated both his employees and the United States government of more than $1,000,000 in stolen payroll taxes. Some of those taxes were payments for the Social Security and Medicare coverage of the employees,” said U.S. Attorney Trent Shores. “I hope Mr. Grayson’s potential prison sentence will dissuade other business owners from trying to cheat the system. Millions of honest small businesses pay their fair share of taxes to finance government operations as well as Social Security and Medicare for the elderly. Unfortunately, Mr. Grayson’s choice not to do so has subjected him to criminal penalties.”
United States District Court Judge Claire V. Eagan scheduled Grayson’s sentencing for Oct. 3, 2019.
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorneys Victor Régal and Charles McLoughlin are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Three men from Northwest Ohio indicted after DEA seizes two kilos of cocaine, 20 firearms and $1.8 million in cashRead the Press Release
Three men from Northwest Ohio were indicted on drug conspiracy charges stemming from an investigation that resulted in the seizure of more than four pounds of cocaine, 20 firearms, three vehicles and more than $1.8 million in cash.
Brooke McBeth, 39, Montrel Jackson, 34, both of Toledo, and Tyson Reed, 43, of Fostoria, were each indicted on one count of conspiracy to possess with intent to distribute cocaine.
The men are accused of conspiring to possess with intent to distribute at least 500 grams of cocaine. This took place between April 2018 and January 25, 2019, according to the indictment.
Law enforcement seized approximately $1,843,900 in cash and 20 firearms, as well as a 2018 Land Rover Range Rover, a 2008 Dodge Nitro and a 2015 Harley Davidson motorcycle as part of the investigation, according to the indictment.
“Bricks of cocaine, piles of ill-gotten cash, and an arsenal of firearms are the hallmarks of a group that profited from drug trafficking,” U.S. Attorney Justin Herdman said. “But actions have consequences, and these defendants are now charged with crimes and we will seek to hold them accountable.”
Drug Enforcement Administration Acting Special Agent in Charge Keith Martin said: “Drug trafficking and violence go hand-in-hand. This investigation highlights the impact that cocaine and firearms have on our community. This indictment is a message to drug dealers at large that you will be held accountable.”
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorneys Henry F. DeBaggis and Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Drug Defendants Appear in Federal Court in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – – Three defendants involved in various drug offenses appeared today in federal court in Huntington. Ellis Simmons, Jr., 49, was sentenced to 37 months in federal prison after previously pleading guilty to possession with intent to distribute heroin and prohibited possession of a firearm by a convicted felon. In separate prosecutions, Brandon Ware entered a guilty plea to conspiracy to distribute 100 grams or more of heroin and Shadeed Muhammad entered a guilty plea to attempting to distribute 50 grams or more of methamphetamine. The FBI Drug Task Force and the Huntington Police Department conducted the Simmons and Ware investigations. The FBI Drug Task Force, the United States Postal Inspection Service, and the Cabell County Sheriff’s Department conducted the Muhammad investigation.
“I have pledged my commitment to assist the City of Huntington in removing drug dealers from their streets,” said United States Attorney Mike Stuart. “These prosecutions exemplify how hard we are working to do just that.”
In the Simmons prosecution, members of the FBI Drug Task Force executed a search warrant at 2317 Lincoln Avenue in Huntington on September 14, 2015. During the search, officers located Simmons and two additional individuals inside the residence. Officers seized approximately 25 grams of heroin and a .22 caliber pistol from a room where Simmons was located during the search. Simmons was previously convicted of multiple felony offenses and admitted to possessing the gun. Simmons also admitted that during the month of September 2015, he and others used the residence to distribute heroin.
In the Ware prosecution, Ware admitted that, from November 2014 to May of 2016, he conspired with others to distribute over 100 grams of heroin in the Huntington area. Ware frequently received quantities of heroin which had been transported from Detroit on consignment and Ware would distribute the heroin in Huntington. Ware then returned money from the sales to the source of the heroin from Detroit. Ware admitted that he was responsible for the distribution of up to 400 grams of heroin during the conspiracy.
In the Muhammad prosecution, Muhammad admitted that he mailed approximately one pound of methamphetamine from a post office in California to a residence in West Huntington on April 13, 2016. When the package arrived at the Huntington Post Office the next day, Postal Inspectors seized the package and discovered that it contained methamphetamine. Muhammad admitted that he intended to distribute the methamphetamine to an individual who was to receive the package at the West Huntington residence.
Ware faces a mandatory minimum of 5 years and up to 40 years in prison and Muhammad faces a mandatory minimum of 10 years and up to life in prison when they are sentenced on October 7, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecutions. United States District Judge Robert C. Chambers presided over the hearings.
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Texas Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
A 20-year-old U.S. citizen from Houston, Texas, has entered a guilty plea to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Assistant Attorney General for National Security John C. Demers and U.S. Attorney Ryan K. Patrick for the Southern District of Texas made the announcement.
From August 2017 until his arrest in December 2017, Kaan Sercan Damlarkaya attempted to join and support ISIS, and provided information to other ISIS supporters about the use of machetes, the homemade construction of an automatic weapon and how to build and use explosive materials.
As part of his plans to join ISIS overseas, starting in approximately early August 2017, Damlarkaya had numerous online conversations with individuals he believed to be fellow ISIS supporters. During these discussions, he described his intentions to travel overseas to fight for ISIS in Syria or Afghanistan. Damlarkaya added that if he was unsuccessful in joining ISIS overseas, he would conduct an attack on non-Muslims in the United States and that it was his “dream” to be a martyr.
Damlarkaya also provided information to other ISIS supporters, on at least two separate occasions, about ways to manufacture a bomb. Specifically, he described how to make explosives formula using triacetone triperoxide (TATP) and cautioned the others to “take safety seriously while you make this” to be “useful until you can strike.”
Damlarkaya also provided other ISIS supporters with information about how to construct an automatic weapon. He also claimed that he could buy a “GIANT machete for $15” and stated “a lot of us are poor. . . or we don't have experience. So not all of us can get a gun or make explosives, but we can afford to buy a $15 knife.” He claimed that he slept with a machete under his pillow ready to use if law enforcement raided his house.
When agents arrested Damlarkaya, they executed a search warrant at his residence and found a machete by his bed.
U.S. District Judge Andrew S. Hanen accepted the plea today and has set sentencing for Sept. 30, 2019. At that time, Damlarkaya faces up to 20 years in federal prison and a maximum $250,000 possible fine.
He has been and will remain in custody pending that hearing.
The FBI’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys Alamdar Hamdani and Rob Jones are prosecuting the case along with DOJ Trial Attorneys Kevin Nunnally and Gregory Gonzalez of National Security Division’s Counterterrorism Section.
Schuylkill County Man Sentenced to 15 Years’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ernest Schaeffer, age 43, of Schuylkill Haven, was sentenced on July 2, 2019, by U.S. District Court Judge Malachy E. Mannion to 15 years’ imprisonment followed by five years on supervised release for participating in a methamphetamine trafficking conspiracy.
According to United States Attorney David J. Freed, Schaeffer previously pleaded guilty to conspiracy to distribute more than 500 grams of methamphetamine between June and October 2016.
Judge Mannion explained that he imposed a sentence above the advisory guidelines range because during the course of the drug conspiracy Schaeffer held a woman captive for three days in a shed on his property and tortured her with electric shocks and a stun gun.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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San Bernardino County Man Caught with 14 Burrito-Shaped Methamphetamine Packages Sentenced to 15 Years in Federal PrisonRead the Press Release
LOS ANGELES – A San Bernardino County man was sentenced today to 180 months in federal prison for narcotics and firearms offenses after police pulled him over near downtown Los Angeles and found 14 pounds of methamphetamine contained in 14 foil-wrapped, burrito-shaped packages in his SUV, and a fully loaded handgun hidden in a secret compartment in the driver’s side door.
Ricardo Renteria, 48, of Colton, was sentenced at a hearing today by United States District Judge Virginia A. Phillips.
After a one-day bench trial in March 2019, Judge Phillips found Renteria guilty of three felonies: possession with intent to distribute methamphetamine, being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
According to the evidence presented at his trial, Los Angeles Police officers pulled Renteria over on February 3, 2018 in the Angelino Heights neighborhood of the city of Los Angeles after they witnessed him erratically and evasively driving a white Chevrolet Tahoe. Renteria consented to a search of the vehicle and law enforcement then found a black garbage bag on the floor behind the driver’s seat.
Inside the garbage bag were 14 foil-wrapped, burrito-shaped packages containing 6,197 grams (13.7 pounds) of methamphetamine with a street value ranging from $27,000 to $40,000. A subsequent search of the vehicle after it was impounded revealed the presence of a fully loaded Smith & Wesson .38 Special revolver handgun. Renteria was arrested at the scene and he was indicted by a federal grand jury in March 2018. He remains in federal custody.
This matter was investigated by the Drug Enforcement Administration with substantial assistance from the Los Angeles Police Department.
This case is being prosecuted by Assistant United States Attorneys Jehan M. Pernas of the International Narcotics, Money Laundering, and Racketeering Section, Kevin B. Reidy of the General Crimes Section, and Agustin D. Orozco of the Public Corruption and Civil Rights Section.
Rosebud Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on July 8, 2019, by U.S. District Judge Roberto A. Lange.
Jonathan Anthony Jones, a/k/a D.J. Jones, age 29, was sentenced to 21 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jones was indicted by a federal grand jury on January 22, 2019. He pled guilty on April 29, 2019.
The conviction stemmed from an incident that occurred in Mission, South Dakota, on November 16, 2018. On that date, Rosebud Sioux Tribe Law Enforcement Services Officers responded to a report of an intoxicated person at Mission City Park. Officers subsequently made contact with Jones, who was intoxicated and was walking with a small child. Jones was placed under arrest for child neglect and public intoxication and was placed in a patrol vehicle. Jones subsequently became belligerent and began kicking the door of the patrol vehicle. The officer stopped the vehicle and opened the door to gain Jones’ compliance, at which point Jones kicked the officer.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on July 3, 2019, by U.S. Magistrate Judge Mark A. Moreno.
Travis Bird In Ground, age 20, was sentenced to 2 years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Bird In Ground was indicted by a federal grand jury on February 13, 2019. He pled guilty on July 3, 2019.
The conviction stemmed from an incident that occurred on August 25, 2018, Bird In Ground did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved physical contact.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Rapid City Man Sentenced for RobberyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of two counts of Robbery was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Miles Michael Goings, age 25, was sentenced on June 28, 2019, to 8 years and 1 month in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and restitution to the victims on each count.
Goings was indicted by a federal grand jury in November 2018. The charges related to Goings robbing the victim in his residence on June 10, 2018, at Pine Ridge. Goings took the victim’s property, and then assaulted him by kicking him in the face before stealing his vehicle. On July 21, 2018, Goings was again at Pine Ridge and robbed another victim at Pizza Hut by forcibly taking her vehicle from the parking lot.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services. Assistant U.S. Attorneys Megan Poppen and Cassandra DeCoste prosecuted the case.
Goings was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Possession of a Short-Barrel ShotgunRead the Press Release
United States Attorney Ron Parsons announced that Rapid City, South Dakota, man convicted of Possession of an Unregistered Firearm was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Scott Schauer, age 48, was sentenced on July 2, 2019, to 2 and 1/2 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Schauer knowingly being in possession of a short-barrel shotgun. Additionally Schauer was involved with trading methamphetamine for two Kahr semi-automatic pistols which had been stolen from The Rooster at Rapid City in August 2018.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Department of Criminal Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Schauer was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Kyle Tobacco, age 25, was sentenced on July 3, 2019, to 46 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Tobacco, a previously convicted felon who is prohibited from possessing firearms, being in possession of a .45 caliber semi-automatic pistol at Rapid City in September 2018.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Tobacco was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on July 3, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Timothy George Bender, age 56, was sentenced to 5 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Bender communicating with someone he believed to be a minor for the purpose of engaging in sexual acts and requesting that the minor send pornographic images to Bender.
The investigation was conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Bender was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on July 2, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Eric Afrank, age 24, was sentenced to 5 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Afrank was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2017 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls or boys obtained through the Internet. The conviction stemmed from Afrank communicating with someone he believed to be a minor for the purpose of engaging in sexual acts and requesting that the minor send pornographic images to Afrank.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Afrank was immediately remanded to the custody of the U.S. Marshals Service.
Providence Man Admits to Trafficking Fentanyl and FirearmsRead the Press Release
PROVIDENCE – A Providence man appeared in federal court in Providence today and admitted to selling fentanyl and firearms on multiple occasions to an individual assisting the FBI Safe Streets Task Force during a Project Safe Neighborhoods investigation into the trafficking of drugs and firearms in Providence.
Appearing before U.S. District Court Chief Judge William E. Smith, Jean Sajous, 28, admitted to the Court that between May 24, 2018 and June 20, 2018, he made multiple sales of fentanyl and on two occasions sold a firearm to a confidential source assisting the Safe Streets Task Force.
Sajous admitted to the Court that he sold the individual a total of 5.34 grams of fentanyl. Sajous also admitted to selling the individual a .25 caliber pistol and a 9mm pistol. Following each transaction, the fentanyl and the firearms were immediately seized by Safe Streets Task Force agents.
Sajous’s guilty plea to two counts of possession with intent to distribute and distribution of fentanyl, one count of unlicensed firearms dealing, and two counts of felon in possession of a firearm is announced by United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Sajous, who has been detained in federal custody since his arraignment in U.S. District Court on October 2, 2018, is scheduled to be sentenced on October 24, 2019.
The case is being prosecuted by Assistant U.S. Attorneys Helen H. Lee and Terrence P. Donnelly.
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.
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Porcupine Man Sentenced to over 15 Years in Federal PrisonRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Aggravated Sexual Abuse was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Don Williams, age 47, was sentenced on July 1, 2019, to 15 ½ years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Williams was indicted by a federal grand jury in October 2018. The charge related to Williams grabbing a female victim and forcing her to his bedroom. Williams struck her in the head, causing her to lose consciousness. She awoke to Williams sexually abusing her.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Megan Poppen and Cassandra DeCoste prosecuted the case.
Williams was immediately turned over to the custody of the U.S. Marshals Service.
Orange County Man Pleads Guilty to Federal Criminal Charge for Stealing Critically Endangered Ring-Tailed LemurRead the Press Release
SANTA ANA, California – A Newport Beach man pleaded guilty today to a federal criminal charge for breaking into the Santa Ana Zoo after hours and stealing North America’s oldest-living ring-tailed lemur in captivity in order to keep the endangered animal as a pet.
Aquinas Kasbar, 19, pleaded guilty to one misdemeanor count of unlawfully taking an endangered species. United States District Judge Andrew J. Guilford has scheduled an October 28 sentencing hearing, where Kasbar will face a statutory maximum sentence of one year in federal prison and a $100,000 fine.
Kasbar admitted in his plea agreement that he broke into the Santa Ana Zoo on July 27, 2018 after it had closed for the day. Kasbar used bolt cutters to cut a hole in the zoo’s enclosures for lemurs and capuchin monkeys, which enabled several of the animals to escape, though they were later recovered, court documents state.
Kasbar then stole Isaac, a 32-year-old, ring-tailed lemur (lemur catta), and North America’s oldest ring-tailed lemur in captivity. (A lemur’s life span typically is 20 to 25 years.) The ring-tailed lemur is on a list of the 25 most endangered primates, and ring-tailed lemurs are endangered, in part, because of the illegal pet trade, the plea agreement states.
Kasbar then placed Isaac in a plastic drawer that lacked ventilation holes, court papers state. The next day, Kasbar abandoned the animal in front of a Newport Beach hotel, leaving him in the same plastic drawer with two notes placed on it, which read, “Lemur (with tracker)” and “This belongs to the Santa Ana Zoo it was taken last night please bring it to police,” according to court documents. Kasbar’s actions resulted in a loss to the Santa Ana Zoo of approximately $8,486. Isaac later was returned unharmed to the zoo.
This case was investigated by the Federal Bureau of Investigation, the United States Fish and Wildlife Service, the Newport Beach Police Department, and the Santa Ana Police Department.
This matter is being prosecuted by Assistant United States Attorneys Daniel H. Ahn of the Santa Ana Branch Office and Erik M. Silber of the Environmental and Community Safety Crimes Section.
Ohio Man Pleads Guilty to Bank and Wire FraudRead the Press Release
COVINGTON, Ky. – Today, an Ohio man admitted in federal court that he collectively defrauded a Kentucky bank and seventeen individuals and businesses in Kentucky, Ohio, West Virginia, and Wisconsin of more than $4.6 million.
Anthony McQuaid, 47, pleaded guilty to one count of bank fraud and one count of wire fraud before United States District Judge David Bunning. McQuaid admitted he executed a scheme to defraud Town Square Bank, of Ashland, Kentucky, to obtain a loan for $1 million, in 2014. McQuaid also admitted he developed and executed a scheme to defraud Auto Now Acceptance Co., LLC, of Portsmouth, Ohio, of $850,200, in 2017. According to the plea agreement, between November 2014 and June 2018, McQuaid defrauded 17 other individuals in Ohio, Kentucky, West Virginia, and Wisconsin, through various fraud schemes. In total, McQuaid admitted his schemes caused a loss of at least $4,698,055.
McQuaid was charged by way of information in the Eastern District of Kentucky and the Southern District of Ohio, waiving his right to indictment by a federal grand jury.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Joseph E. Moriarty, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Investigations, Chicago Region; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; and Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Division, jointly announced the guilty plea.
The investigation was conducted by the FDIC and the FBI. The U.S. Attorney’s Office for the Eastern District of Kentucky was represented by Assistant U.S. Attorney Kate K. Smith. The U.S. Attorney’s Office for the Southern District of Ohio was represented by Special Assistant U.S. Attorney Timothy Landry.
McQuaid is scheduled to be sentenced for 10:00 am on November 12, 2019, in federal court in Ashland, Kentucky. He faces up to 30 years in prison and a maximum fine of $1,000,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
North Dakota Man Sentenced in Drug ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Killdeer, North Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Dustin Eck, age 35, was sentenced on July 2, 2019, to 9 years in federal prison, followed by 4 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Eck obtaining methamphetamine in Denver, Colorado, and selling it to individuals in South Dakota between December 2017 and March 2018. Eck was discovered to be in possession of methamphetamine after a traffic stop near Rapid City on March 8, 2018.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Department of Criminal Investigation, and the South Dakota Highway Patrol. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Eck was immediately turned over to the custody of the U.S. Marshals Service.
New Orleans Pair Plead Guilty to Bank Larceny in Theft of over $200,000 Using Patient Information Stolen from Metairie Medical ClinicRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that BRANDON LIVAS, age 34 and ROYALE LASSAI, age 29, both from New Orleans, Louisiana pled guilty as charged to a one count Bill of Information Wednesday, July 3, 2019. They were charged in 2018 by a Bill of Information with Bank Larceny, a violation of Title 18, United States Code, Section 2113(b). The third defendant, ASHLEY GREEN, age 36 is scheduled for a change of plea hearing in October 2019.
In papers filed with the court signed by LASSAI and LIVAS , they admitted that LASSAI was employed in a Metairie, Louisiana medical clinic. LASSAI, without authority, obtained personal information of patients including dates of birth, social security numbers and addresses. LASSAI sold the information to her cousin, GREEN who used this information to fraudulently obtain debit cards issued by the victim banks, Capital One and Whitney. These fraudulently obtained cards were mailed to an address controlled by GREEN. GREEN and LIVAS then used the cards to withdraw at least $200,000 from the victims’ accounts. LASSAI was paid at least $1,000 to pilfer the patient’s information.
LIVAS and LASSAI face up to ten (10) years incarceration, a $250,000 fine, restitution and three (3) years supervised release. Sentencing is set for October 21, 2019.
U.S. Attorney Strasser praised the work of the Jefferson Parish Sheriff’s Office and the United States Postal Inspection Service in investigating the matter. The case is being handled by Assistant United States Attorney Carter K.D. Guice Jr.
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New Caney Man Gets Significant Sentence for Sexual Exploitation of ChildrenRead the Press Release
HOUSTON – A 21-year-old local man has been ordered to federal prison for producing child pornography after exchanges on a social media site, announced U.S. Attorney Ryan K. Patrick. Thomas Anthony Garrett pleaded guilty April 3, 2019.
“If parents or guardians are going to allow their minor children on social media, they must be very vigilant,” said Patrick. “No young child should have unsupervised access to social media and they should not have any accounts a trusted adult cannot access at any time. Sadly, there are too many predators out there that exploit children this way.”
Today, U.S. District Judge Kenneth M. Hoyt handed Garrett a sentence of 220 months. The court heard evidence regarding a pattern of abuse which rendered Garrett a repeat and dangerous sex offender. Garrett had also sexually abused two other minor males – ages nine and 12.
Garrett will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Garrett will also be ordered to register as a sex offender.
Garrett came to the attention of law enforcement in July 2016. A relative of a 12-year-old male victim had found inappropriate messages and pictures on the minor’s iPod and brought it to authorities in Pennsylvania.
At that time, law enforcement reviewed contents of Facebook Messenger interactions between the victim and an individual later determined to be Garrett. The exchanges included several sexually-explicit images which Garrett had requested and the 12-year-old victim provided. The files included exposed genitals and a video of the minor masturbating.
Through the investigation, authorities learned Garrett met the minor victim on Facebook.
Garrett has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Southwestern Regional Police Department in Spring Grove, Pennsylvania, York County District Attorney’s Office and the FBI conducted the investigation.Assistant U.S. Attorney Kimberly Ann Leo prosecuted the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Nepalese Man Pleads Guilty to Marriage Fraud ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Eilove Shrestha, 28, recently of Cupertino, California, pled guilty today in U.S. District Court to marriage fraud and to conspiracy to commit marriage fraud.
According to court records, on June 20, 2018, Shrestha, a Nepalese citizen then lawfully in the United States in a temporary status, agreed to pay a United States citizen $13,000 to marry him so he could obtain permanent resident status, also known as, a “green card.” Four days later, Shrestha flew to Maine and the two were married the next day. Before and after the wedding, Shrestha paid the United States citizen hundreds of dollars via wire transfers, while he continued to live and work in another state.
Shrestha faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S Probation Office.
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Citizenship and Immigration Services, and the Brewer Police Department.
Navajo Man from Pueblo Pintado, N.m., Indicted on Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Nathan Thomas, 43, an enrolled member of the Navajo Nation who resides in Pueblo Pintado, N.M., was arraigned in federal court in Albuquerque, N.M., on July 16, 2019, on an indictment charging him with three counts of aggravated sexual abuse and one count of abusive sexual contact. Thomas was ordered detained pending trial during a detention hearing held this morning.
Thomas was indicted by a federal grand jury on June 12, 2019, and the FBI arrested him on July 11, 2019.
According to the indictment, Thomas allegedly engaged in or attempted to engage in a sexual act with a child under the age of 12 years on three occasions between 2007 and 2010, and allegedly had sexual contact with the child one occasion during the same time period. The indictment alleges that Thomas committed the crimes in Indian Country in San Juan County.
Thomas faces up to life in prison if convicted of the charged offenses. Charges in indictments are only allegations. A defendant is presumed innocent unless and until proven guilty.
The Gallup office of the FBI investigated this case. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
Montgomery County Felon Sentenced to 10 Years in Federal Prison for Armed Bank RobberyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Jerail Melik Netcliff age 28, of Rockville, Maryland, to 10 years in prison, followed by five years of supervised release, for an armed bank robbery, and for violating his supervised release from a previous federal conviction. In that case, on March 10, 2017, Netcliff was sentenced to five years in federal prison, followed by five years of supervised release, for possession of a firearm during and in relation to a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea on the morning of January 24, 2019, Netcliff robbed a bank in Derwood, Maryland. Netcliff approached the victim teller, pointed a black handgun at the teller and other customers, and demanded $10,000 with no bait money. Fearing for her safety, the teller gave Netcliff $10,000 in cash and Netcliff fled the bank on foot.
As detailed in his plea agreement, law enforcement officers responding to the scene tracked footprints behind the bank which led to the discovery of surveillance video from a residence. The video showed the armed robber enter a white U-Haul van, with artwork on the rear driver’s side of the van. U-Haul confirmed to law enforcement that the artwork on the van was specific to only one van in their inventory, which was rented to Netcliff on January 24, 2019 in Rockville. Video surveillance of the U-Haul transaction revealed that Netcliff was wearing the same clothing he wore to rob the bank later that day.
Netcliff was charged and arrested at his place of employment in Bethesda, Maryland on January 25, 2019. Search warrants were executed at Netcliff’s residence and on a backpack seized at his place of employment when he was arrested. Law enforcement located a U-Haul rental agreement and a replica black handgun at Netcliff’s home and recovered $2,770 in cash, Netcliff’s Maryland driver’s license, and gloves consistent with those worn by the robber in the bank surveillance video.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI’s Cross Border Task Force and the Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jennifer Sykes and Thomas M. Sullivan, who prosecuted the case.
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Mission Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on July 8, 2019, by U.S. District Judge Roberto A. Lange.
Jodie Brave, a/k/a Jody Brave, age 48, was sentenced to 36 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Brave was indicted by a federal grand jury on August 13, 2018. He pled guilty on January 23, 2019.
The conviction stemmed from an incident that occurred on June 29, 2018, wherein Brave assaulted his domestic partner at their home in Mission. At the time of this incident, Brave had two prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse, and was on federal supervised release for a prior conviction for Domestic Assault by an Habitual Offender.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Brave was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on July 8, 2019, by U.S. District Judge Roberto A. Lange.
Dayvon Sanchez, age 20, was sentenced to time served through October 1, 2019 (approximately 7 months), in federal prison, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Sanchez was indicted by a federal grand jury on February 14, 2018. He pled guilty on April 29, 2019.
The conviction stemmed from an incident that occurred in Mission, on November 19, 2017. On that date, Rosebud Sioux Tribe Law Enforcement Services Officers responded to a report that Sanchez had taken a vehicle and was driving drunk. The officers subsequently located Sanchez at a residence in Mission and informed him he was under arrest. Sanchez physically resisted, and kicked one of the officers.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Sanchez was immediately turned over to the custody of the U.S. Marshals Service.
Middlesex County Couple Charged with Selling Misbranded and Unapproved New Drugs and Running Drug Manufacturing Facility in Their BasementRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, husband and wife were indicted today in connection with a scheme to market and distribute misbranded drugs and unapproved new drugs and manufacture drugs in an unregistered facility, U.S. Attorney Craig Carpenito announced.
Keith Kovaleski, 55, and Sylvia Kovaleski, 41, of South Amboy, New Jersey, each were charged with one count of conspiring to distribute and cause the receipt and delivery of misbranded drugs and unapproved new drugs, and to impede the functions of the U.S. Food and Drug Administration (FDA) and U.S. Department of Health and Human Services (HHS), 10 counts of introducing misbranded drugs into interstate commerce, four counts of introducing unapproved new drugs into interstate commerce, and one count of manufacturing drugs without registering with the secretary of HHS. In January 2019, Keith Kovaleski was charged in a federal complaint with conspiracy and was released on bail. Both defendants will be arraigned at a date to be determined.
According to documents filed in this case and statements made in court:
The FDA is responsible for enforcing the Federal Food, Drug, and Cosmetic Act (FDCA), a law intended to assure that drugs are safe, effective, and bear accurate labeling containing all required information. The FDA regulates the manufacture, labeling, and distribution of all drugs shipped or received in interstate commerce.
From May 2014 to January 2019, the Kovaleskis owned and operated AA Peptide LLC, a/k/a All American Peptide (AAP). AAP used its website to market and distribute substances primarily used by bodybuilders and others engaged in weight training to enhance performance and mitigate the side effects of performance-enhancing substances.
The AAP website included a bogus legal disclaimer that its products were intended for laboratory research use only, and not as drugs or food. The Kovaleskis employed the bogus “research chemicals” disclaimer to conceal that they and others were distributing misbranded drugs and unapproved new drugs for use by their customers.
The Kovaleskis, though AAP, sold products including: (1) prescription drugs, such as tadalafil, the active ingredient in Cialis; (2) SARMS, used by body-builders as an alternative to steroids; (3) peptides, also used as performance-enhancing substances; and (4) other drugs that were not peptides or SARMS, and had not been approved for human use, for example, clenbuterol, a drug sold in foreign markets but not approved by the FDA. The Kovaleskis failed to provide adequate directions for use for these products, such as frequency of administration and other dosage information.
The Kovaleskis used their South Amboy basement as a manufacturing facility to make and label AAP products, including homemade capsules containing baking soda and tadalafil. The Kovaleskis sold tadalafil capsules that contained significantly higher dosages of the active ingredient than the highest recommended dosage.
The Kovaleskis earned more $2.5 million through the sale of misbranded and unapproved new drugs.
The conspiracy charge carries a maximum potential penalty of up to five years in prison. Each count of introduction of misbranded drugs in interstate commerce, introduction of unapproved new drugs in interstate commerce, and operating an unregistered drug manufacturing facility carries a maximum potential penalty of three years in prison. Each charge also carries a maximum potential fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Craig Carpenito credited special agents of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, under the direction of Special Agent in Charge Jeffrey J. Ebersole,; special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael Waters; and postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, Newark Division, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorneys Karen D. Stringer and Cari Fais, of the Special Prosecutions Division.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Mexican National Man Pleads Guilty and is Sentenced for Immigration CrimeRead the Press Release
HUNTINGTON, W.Va. – A Mexican national man pled guilty to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Eduardo Rios-Rios, 26, was immediately sentenced to a “time served” sentence, having served nearly four months in federal custody. He was remanded to ICE custody for removal proceedings from the United States. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE) and the Kenova Police Department.
“We prosecute one line-skipper after another,” said United States Attorney Mike Stuart. “And we will continue to do so until they enter our country legally.”
On March 30, 2019, Rios-Rios was found in Kenova, Wayne County, West Virginia by local police during a traffic stop. He gave the police an alias and was ultimately arrested and taken to the Western Regional Jail. ICE agents matched his fingerprints to those of Eduardo Rios-Rios, who had been previously removed from the United States. ICE agents spoke to the defendant to confirm his identity. Rio-Rios admitted to being in the United States illegally and that he had used an alias. Rios-Rios had no identification documents permitting him legal status in the United States.
Fingerprinting matched Rios-Rios to a prior removal from the United States in 2011 from El Paso, Texas. Rios-Rios was found by immigration judges to be in the United States illegally and he was deported to Mexico. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Rios-Rios further admitted to ICE agents that he was a Mexican citizen.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Erik S. Goes is responsible for the prosecution.
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Mexican National Enters Guilty Plea to Firearm OffenseRead the Press Release
FRESNO, Calif. — Fernando Daniel Ruvalcaba-Velez, 35, of Jalisco, Mexico, pleaded guilty today to being an alien in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers found Ruvalcaba, an illegal alien who had previously been removed from the United States, in a vehicle in the vicinity of a marijuana cultivation site in the Sequoia National Forest after suspects fled from the site when it was raided. Ruvalcaba flashed his headlights on and off into the woods as a signal to the fleeing suspects. He was in possession of a loaded handgun that he had bought on the street for $600.
This case is the product of an investigation by the U.S. Forest Service and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Ruvalcaba is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on Sept. 30. Ruvalcaba faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case was part of Operation Forest Watch, an enforcement effort targeting marijuana cultivation on public land and the damage they cause.
Methamphetamine Was Hidden in Child Booster SeatsRead the Press Release
TOPEKA, KAN. – A man from Mexico was sentenced today to 51 months in federal prison after a state trooper found 15 pounds of crystal methamphetamine hidden in child booster seats and other locations in his car, U.S. Attorney Stephen McAllister said.
Israel Felix Garcia, 32, was a passenger in a car driven by his girlfriend when the Kansas Highway Patrol stopped the car on I-70 at milepost 341 in Wabaunsee County, Kan. A trooper found five plastic wrapped bundles of crystal methamphetamine in two booster seats in the car. He found more bundles hidden under the rear window deck, bringing the total to 15 pounds. Garcia told investigators he was being paid $400 per bundle to drive the drugs from California to Topeka, Kan. He said his girlfriend and two children in the car did not know about the methamphetamine.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Stephen Hunting for their work on the case.
Men Sentenced to 17 Years in Prison for Drug and Gun CrimesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to more than 17 years in prison for drug trafficking and discharging a firearm.
According to court documents, Aaron Robinson, 28, and his co-defendant Rodrick Greene, 31, participated in a heroin, cocaine base and cocaine trafficking conspiracy in the Hampton Roads area from September 2017 to March 2018. In December 2017, Robinson discharged a firearm during a drug trafficking crime at the Budget Lodge Motel in Newport News, where one individual was shot in the stomach and leg. Both men were arrested in March 2018, after conducting a cocaine transaction and Greene was found in possession of a firearm used in furtherance of the cocaine sale.
Greene previously pleaded guilty and was sentenced on July 1 to over seven years in prison for his role in the drug trafficking conspiracy and possessing a firearm in furtherance of a drug trafficking crime.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration Washington Field Division, made the announcement after sentencing by U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Robert E. Bradenham prosecuted 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. 4:19-cr-5.
Member of Lightfoot Drug Trafficking Organization Pleads Guilty to Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH - A former resident of Clairton, PA, has pleaded guilty to a federal narcotics charge, United States Attorney Scott W. Brady announced today.
Kevin Ford, 33, pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute 500 grams or more of cocaine in front of United States District Court Judge Mark R. Hornak. Ford has been detained since his initial arrest on April 25, 2018 and will remain detained pending sentencing.
According to information presented to the court, from April to December 2017, Ford was a member of the Lightfoot drug trafficking organization. As part of that conspiracy, Ford would acquire quantities of cocaine from Jamie Lightfoot, Jr. and would then resell that cocaine to other members of the conspiracy. Over the course of the conspiracy, Ford was responsible for between 500 grams and 2.5 kilograms of cocaine.
The law provides for a maximum sentence of not less than 10 years in prison, a fine of not more than $8,000,000. 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. Due to a prior drug trafficking conviction, Ford is facing increased penalties.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
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.
Massachusetts Man Charged with Conspiracy to Distribute HeroinRead the Press Release
NEWARK, N.J. – A Massachusetts man was charged today with conspiring to sell five kilograms of heroin at the Jersey Gardens Mall in Elizabeth, New Jersey, U.S. Attorney Craig Carpenito announced.
Jose Manuel M. Ramos Lemus, 50, a citizen of Mexico residing in Boston, was charged by complaint with one count of conspiring to distribute and possessing with intent to distribute more than one kilogram of heroin. Lemus appeared today before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
On July 6, 2019, Lemus arrived at the Jersey Gardens Mall to meet with a confidential source (CS). In the parking lot of the mall, Lemus assured the CS that he had 5 kilograms of China White heroin for distribution. After leaving the vehicle, Lemus returned with a duffle bag containing five kilograms of heroin and was arrested at the scene.
The count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin carries a mandatory minimum term of 10 years in prison, a maximum penalty of life in prison, and a $10 million fine.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Man with 18 Felony Convictions Detained on Heroin ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Maurice D. Johnson, 49, of Bridgeport, Connecticut, was ordered detained today by United States Magistrate Judge John M. Conroy on heroin trafficking charges.
A June 2019 Indictment charges Johnson with conspiracy to distribute heroin, and four distributions of heroin. On July 4, 2019, he was arrested by the Vermont State Police driving on Interstate 89 near Williston. Johnson appeared in federal court in Burlington today for an arraignment and bail hearing. Judge Conroy expressed concern about Johnson’s extraordinary criminal history of 18 felonies, including convictions for drugs, assaults, and escape. The government pointed out that the alleged federal heroin trafficking offenses took place while Johnson was on probation from his last conviction in the State of Connecticut.
Johnson’s attorney, Michael J. Straub, urged that much of Johnson’s criminal history took place when he was young. Judge Conroy noted that while in his 40s, Johnson had been convicted of multiple drug felonies and an assault. Johnson was ordered detained pending trial. At the request of the defense, the Court provided a 60-day period for defense pretrial motions, which are due September 6, 2019. The maximum penalty for the federal offenses in the event of conviction is 20 years imprisonment.
The Indictment is an accusation only and the defendant is presumed innocent until and unless proven guilty. The Drug Enforcement Administration, working with the Essex Police Department, investigated the charged drug trafficking.
Assistant U.S. Attorney Wendy L. Fuller represented the United States. Johnson is represented by attorney Michael Straub.
Man from McKinley County Pleads Guilty to Assault in Indian Country Resulting in Serious Bodily InjuryRead the Press Release
ALBUQUERQUE – Ricky Thomas, 51, of McKinley County, N.M., pleaded guilty today in federal court to an indictment charging him with assault resulting in serious bodily injury in Indian Country.
In Thomas’s plea agreement, he admitted committing this offense in McKinley County on September 15, 2018. Thomas pushed the victim off a porch causing the victim to fall to the ground and hit his head on some cinderblocks. Thomas’s assault caused the victim serious injury, including fractures and other spinal cord injuries. The victim is now quadriplegic. Thomas is a member of the Navajo Nation and committed the offense in Indian Country.
Thomas is currently in custody awaiting sentencing. He faces from 30-33 under the terms of his plea agreement.
The FBI investigated this case. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
Leader of Gift Card Fraud Ring that Stole more than $700,000 from Target and Customers Sentenced to 5 Years in PrisonRead the Press Release
A 30-year-old man arrested last year in Snohomish County, Washington was sentenced today in U.S. District Court in Seattle to five years in prison and three years of supervised release for his scheme to defraud Target and its customers of more than $700,000, announced U.S. Attorney Brian T. Moran. JEFFERY DOUGLAS MANN, of Marysville, Washington, led a group of five people who used a system to decipher gift card identifying numbers and used them across five western states for fraud. U.S. District Judge James L. Robart ordered MANN to pay more than $214,000 in restitution saying MANN, “is obviously talented and used that talent to break the law… This is not a victimless crime -- it impacts real people.”
According to records filed in the case, between May 2017 and December 2017, the ring stole gift card balances worth more than $700,000, and often sold illegally purchased goods or store gift cards for bitcoin on an internet marketplace. The co-conspirators used a formula to reverse-engineer and identify unique bar code numbers of thousands of authentic gift cards sold by Target to legitimate customers. Members of the scheme then used the retailer’s automated customer service telephone system to verify balances linked to the various stolen gift card numbers. They then loaded active gift card numbers onto a mobile or electronic wallet app on their phones, which the co-conspirators used to purchase merchandise and legitimate gift cards at various Target store locations across at least five states: Washington, Oregon, California, Nevada and Colorado. For example, on a single occasion in November 2017, MANN and others used roughly 180 compromised gift card numbers to make $6,900 in purchases at the Southcenter Mall Target store in Tukwila, Washington.
When the actual cardholders later tried to use their gift cards, they discovered that they had zero balance. In December 2017, Target modified its gift card system in response to the fraud, putting an end to the scheme. Target reimbursed customers for their losses.
MANN pleaded guilty to wire fraud in March 2019. Four other defendants have resolved their criminal charges: Corey Mosey was sentenced to 46 months in prison; Joshua Newman was sentenced to 38 months in prison and Derrick Quintana was sentenced to 27 months in prison. Kennady Weston is resolving her case with participation in federal drug court. Those defendants agreed to pay a total of roughly $263,000 in restitution in addition to that ordered from MANN.
The case was investigated by the U.S. Secret Service, with assistance from the Kirkland, Lynnwood, and West Linn (OR) Police Departments, and is being prosecuted by Special Assistant United States Attorney Benjamin Diggs and Assistant United States Attorney Steven Masada.
Leader of Credit Card Fraud Ring SentencedRead the Press Release
A Westland man was sentenced to 60 months in prison today for having organized and executed an elaborate credit card fraud scheme, U.S. Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation, Detroit Division.
According to courts records, Carlton O. Bankhead, 28, designed a scheme to fraudulently purchase, and then resell, merchandise from retailers using stolen credit card information. Bankhead and his crew defrauded retailers throughout the State of Michigan of approximately $90,000 for over a year.
Bankhead, who has over a dozen prior state criminal convictions, including three prior felony convictions for access device fraud, has never previously been sentenced to a term of imprisonment.
“Credit card fraud and identity theft hurt both innocent citizens and local businesses. These crimes throw lives into chaos and cause immense financial damage,” stated United States Attorney Matthew Schneider. “Those who might be tempted to engage in such conduct should know they risk federal prosecution and lengthy imprisonment.”
Bankhead was sentenced by U.S. District Judge Paul D. Borman. Judge Borman also ordered Bankhead to pay restitution to the victims of his fraud.
The case was investigated by the Michigan State Police and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Andrew J. Yahkind.
Lawrence Man Pleads Guilty to Distributing HeroinRead the Press Release
BOSTON – A Lawrence man pleaded guilty today in federal court in Boston to distributing 100 grams or more of heroin.
Orlando Breton Mercado, 44, pleaded guilty to distribution of and possession with intent to distribute 100 grams or more of heroin. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Sept. 30, 2019. Mercado was arrested and charged in November 2018, and has been in custody since.
According to the charging documents, in July 2018, agents began investigating Mercado for drug trafficking, and on Nov. 20, 2018, they conducted an undercover controlled purchase from Mercado of nearly one kilogram of heroin. Mercado was subsequently arrested.
The charge of distribution of 100 grams or more of heroin carries a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistance was provided by the Salem Police Department. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Las Vegas Man Charged with Submitting False Documents to USCIS, Identity TheftRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an eight-count indictment charging ARASH VAKSHOURI, 40, of Las Vegas, Nevada, with submitting false documents to a government agency and aggravated identity theft.
The indictment was returned on May 8, 2019, and Vakshouri was arrested in Las Vegas on June 20. He appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven, entered a plea of not guilty, and was released on a $50,000 bond.
As alleged in the indictment, between January and May 2017, Vakshouri sent a total of seven fraudulent letters to U.S. Citizenship and Immigration Services (USCIS) in Connecticut purporting to be from two individuals who had applied to USCIS to become legal residents of the U.S. in March 2016. The letters, which included the victims’ names, passport numbers, application numbers and alien file numbers, fraudulently requested the withdrawal or cancellation of the victims’ applications for legal permanent resident status in the U.S.
The indictment charges Vakshouri with seven counts of submitting a false document, an offense that carries a maximum term of imprisonment of five years on each count, and one count of aggravated identity theft, which carries a mandatory consecutive term of imprisonment of two years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Postal Inspection Service and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Jeffrey Epstein Charged in Manhattan Federal Court with Sex Trafficking of MinorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced that JEFFREY EPSTEIN was arrested Saturday and charged with sex trafficking of minors and conspiracy to commit sex trafficking of minors. The indictment unsealed today alleges that, between 2002 through 2005, EPSTEIN sexually exploited and abused dozens of underage girls by enticing them to engage in sex acts with him in exchange for money. Epstein allegedly worked with several employees and associates to ensure that he had a steady supply of minor victims to abuse, and paid several of those victims themselves to recruit other underage girls to engage in similar sex acts for money. He committed these offenses in locations including New York, New York, and Palm Beach, Florida. EPSTEIN is expected to be presented in Manhattan federal court this afternoon before U.S. Magistrate Judge Henry B. Pitman. The case is assigned to U.S. District Judge Richard M. Berman.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Jeffrey Epstein abused underage girls for years, operating a scheme in which girls he victimized would recruit others for Epstein to exploit and abuse. Epstein exploited girls who were vulnerable to abuse, enticed them with cash payments, and escalated his conduct to include sex acts, often occurring at his residence on the Upper East Side of Manhattan. While the charged conduct is from a number of years ago, the victims – then children and now young women – are no less entitled to their day in court. My Office is proud to stand up for these victims by bringing this indictment.”
FBI Assistant Director William F. Sweeney Jr. said: “We are asking anyone who may have been victimized by Jeffrey Epstein, or anyone who may have information about his alleged criminal behavior, to please call us. The number is 1-800-CALL-FBI. We want to hear from you, regardless of the age you are now, or whatever age you were then, no matter where the incident took place. The bravery it takes to call us might empower others to speak out about the crimes committed against them. It is important to remember there was never, nor will there ever be an excuse for this type of behavior. In the eyes of the FBI, the victims will always come first.”
NYPD Commissioner James P. O’Neill said: “Today’s charges serve as a warning to individuals who continue to prey upon some of our society’s most vulnerable population: we are coming for you. I thank and commend the U.S. Attorney’s Office for the Southern District and the FBI for their tireless efforts to ensure child predators are taken off our streets. The NYPD will continue to work with our law enforcement partners to eradicate the trafficking of children in our city and nation and work to bring justice to victims of these heinous crimes.”
If you believe you are a victim of the sexual abuse perpetrated by Jeffrey Epstein, please contact the FBI at 1-800-CALL FBI, and reference this case.
According to the Indictment[1] unsealed today in Manhattan federal court:
From at least 2002 through at least 2005, JEFFREY EPSTEIN enticed and recruited, and caused to be enticed and recruited, dozens of minor girls to visit his mansion in New York, New York (the “New York Residence”), and his estate in Palm Beach, Florida (the “Palm Beach Residence”), to engage in sex acts with him, after which he would give the victims hundreds of dollars in cash. In order to maintain and increase his supply of victims, EPSTEIN also paid certain victims to recruit additional underage girls whom he could similarly abuse. In this way, EPSTEIN created a vast network of underage victims for him to sexually exploit, often on a daily basis, in locations including New York and Palm Beach.
EPSTEIN’s victims were as young as 14 at the time he abused them, and were, for various reasons, often particularly vulnerable to exploitation. Moreover, EPSTEIN knew that many of his victims were under 18, including because, in some instances, victims expressly told him they were underage.
In creating and maintaining this network of minor victims in multiple states to abuse and exploit sexually, EPSTEIN worked with others, including employees and associates who facilitated his conduct by, among other things, contacting victims and scheduling their sexual encounters with EPSTEIN at the New York Residence and at the Palm Beach Residence.
In both New York and Florida, EPSTEIN perpetuated this abuse in similar ways. Victims were initially recruited to provide “massages” to EPSTEIN, which became increasingly sexual in nature and would typically include one or more sex acts. EPSTEIN paid his victims hundreds of dollars in cash for each encounter.
In particular, during encounters at the New York Residence, victims would be taken to a room where they would perform a massage on EPSTEIN, during which EPSTEIN would frequently escalate the nature and scope of physical contact with his victims to include, among other things, sex acts such as groping and direct and indirect contact with the victims’ genitals. In connection with the encounters, EPSTEIN, or one of his employees or associates, typically paid each victim hundreds of dollars in cash. Once minor victims were recruited, EPSTEIN or his employees or associates would contact victims to schedule appointments for “massages.” As a result, many victims were abused by EPSTEIN on multiple subsequent occasions.
To further enable him to abuse underage girls, EPSTEIN asked and enticed certain of his victims to recruit additional minor girls to perform “massages” and similarly engage in sex acts with EPSTEIN. When a victim would recruit another underage girl for EPSTEIN, he paid both the victim-recruiter and the new victim hundreds of dollars in cash. Through these victim-recruiters, EPSTEIN maintained a steady supply of new victims to exploit, and gained access to dozens of additional underage girls to abuse.
* * *
JEFFREY EPSTEIN, 66, is charged with one count of sex trafficking of minors, which carries a maximum sentence of 40 years in prison, and one count of conspiracy to engage in sex trafficking of minors, which carries a maximum sentence of five years in prison.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI and the NYPD. He also thanked the U.S. Customs and Border Protection for their assistance.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller, Alison Moe, and Maurene Comey are in charge of the prosecution, with assistance from the Office’s Human Trafficking Co-Coordinator, Abigail Kurland.
The charges contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Illinois Man Sentenced for Health Care Fraud - Participated in Kickback Scheme Involving Medical LaboratoryRead the Press Release
St. Louis, MO – Anthony B. Camillo, 62, of Madison County, Illinois, was sentenced today to 30 months in prison for participating in a conspiracy to commit health care fraud and to pay illegal kickbacks for health care services. He appeared in federal court today before U.S. District Court Judge Audrey G. Fleissig and ordered Camillo to pay $3,469,810 in restitution.
According to court documents, Anthony Camillo, the owner of Allegiance Medical Laboratory and AMS Medical Laboratory, paid illegal kickbacks to “marketers” for urine and saliva specimens sent to the labs for testing. In some instances, doctors’ names were used on orders for the tests, although the doctors had never seen or evaluated the patients and did not know their names were being used on the orders. During the conspiracy, many disabled and elderly patients living in residential care facilities were repeatedly subjected to medically unnecessary testing. Camillo usually paid the marketers, operating in Missouri and other states, $150-$200 for each specimen that Medicare and Medicaid paid the labs.
This case was investigated by the Office of the Inspector General of the U.S. Department of by the Health and Human Services, the Federal Bureau of Investigation, and the Missouri Medicaid Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
Human Smuggler Admits to Transportation Conspiracy Involving Chinese NationalsRead the Press Release
VICTORIA, Texas – A 47-year-old Mexican national who resided in McAllen and Houston has pleaded guilty on the day trial was set to begin, announced U.S. Attorney Ryan K. Patrick.
Humberto Ramirez-Santos admitted to his involvement in a conspiracy to transport illegal aliens between October 2011 to July 2017. The alien smuggling organization facilitated the smuggling of illegal aliens from multiple countries including individuals from China, Russia, India, Brazil, Honduras, El Salvador, Guatemala and Mexico. Ages of those smuggled into the country ranged from toddlers to the elderly but were mostly comprised of young adults.
At the hearing today, the court heard that smuggling trips were taken every week and the total number of aliens transported are incalculable.
The organization used various methods to facilitate the smuggling. Co-conspirators drove cars and trucks to locations south of Border Patrol (BP) checkpoints. There, they were guided through South Texas ranches to avoid detection. They also used Penske trucks and tractor trailers to smuggle illegal aliens through various checkpoints.
A particular tactic was to select a tractor trailer parked at a South Texas truck stop with a suitable temperature. They would then remove the seal and load the illegal aliens. Members of the organization would follow the vehicle to the next stop somewhere north of the checkpoint to later retrieve them. The drivers would be unaware of their human cargo and were potentially exposed to criminal liability. The aliens were then be transported in closed Penske trucks to Houston.
Ramirez-Santos provided aliens to be smuggled through his contacts in Mexico. He also trained the young members of the organization in how to do counter-surveillance and instructed younger family members in how to move aliens.
Senior U.S. District Judge John Rainey accepted the plea and has set sentencing for Oct. 1, 2019. At that time, Ramirez-Santos faces up to 10 years in prison and a possible $250,000 fine.
Previously released on bond, he was permitted to remain on bond pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations, Border Patrol and Houston Police Department conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth is prosecuting the case.
Houston Man Convicted on Terrorism ChargesRead the Press Release
HOUSTON – A 20-year-old U.S. citizen from Houston has entered a guilty plea to attempting to provide material support to Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General for National Security John C. Demers.
Kaan Sercan Damlarkaya attempted to join and support ISIS from August 2017 until his arrest in December 2017. In addition to wanting to join ISIS, Damlarkaya also provided information to ISIS supporters about the use of machetes, homemade construction of an automatic weapon and how to build and use explosive materials.
As part of his plans to join ISIS overseas, starting in approximately early August 2017, Damlarkaya had numerous conversations online with many individuals he believed to be fellow ISIS supporters. During these discussions, he described his intentions to travel overseas to fight for ISIS in Syria or Afghanistan. Damlarkaya added that if he was unsuccessful in joining ISIS overseas, he would conduct an on attack on non-Muslims in the United States and that it was his “dream” to be a martyr.
Damalarkaya also provided information to other ISIS supporters, on at least two separate occasions, about ways to manufacture a bomb. Specifically, he described how to make explosives formula using triacetone triperoxide and cautioned the others to “take safety seriously while you make this” to be “useful until you can strike.”
Damlarkaya further illustrated to ISIS supporters ways to construct an automatic weapon. He claimed he could buy a “GIANT machete for $15” and stated “a lot of us are poor… or we don't have experience. So not all of us can get a gun or make explosives, but we can afford to buy a $15 knife.” He claimed he slept with a machete under his pillow ready to use if law enforcement raided his house.
When agents arrested Damlarkaya, they executed a search warrant at his residence and found a machete by his bed.
U.S. District Judge Andrew S. Hanen accepted the plea today and has set sentencing for Sept. 30, 2019. At that time, Damlarkaya faces up to 20 years in federal prison and a maximum $250,000 possible fine.
He has been and will remain in custody pending that hearing.
The FBI’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys Alamdar Hamdani and Rob Jones are prosecuting the case along with DOJ Trial Attorneys Kevin Nunnally and Gregory Gonzalez of National Security Division’s Counterterrorism Section.
Hot Springs Man Sentenced on Firearm and Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that Hot Springs, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person and Distribution of a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Kory Moore, age 27, was sentenced on July 3, 2019, to 4 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The charges related to Moore, a previously convicted felon prohibited from possessing firearms, being found to knowingly be in possession of a .40 caliber semi-automatic pistol during a traffic stop on June 7, 2018, at Rapid City. Additionally, earlier that day Moore obtained methamphetamine and sold it to another individual.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Safe Trails Task Force, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Moore was immediately turned over to the custody of the U.S. Marshals Service.
Fraudster Sentenced to 18 Months in Federal Prison for Scheme in Which She Defrauded Five Victims of More Than $1.2 MillionRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Nely Rider, age 74, of Bowie, Maryland, to 18 months in federal prison, followed by nine months of home detention as part of three years of supervised release, for wire fraud in connection with a scheme to defraud at least five individuals in Maryland, Virginia, and elsewhere, of a total of more than $1.285 million. Judge Hazel also entered an order requiring Rider to forfeit and to pay restitution in the amount of $1,285,545.01.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“This defendant took advantage of her victims’ generosity and lied to steal over a million dollars,” said United States Attorney Robert K. Hur. “The victims she preyed upon included the elderly, for whom the loss of retirement savings is particularly tragic. The Justice Department is committed to bringing fraudsters like these to justice.”
According to Rider’s plea agreement, from December 2009 through May 2014, Rider defrauded five victims by falsely stating that an individual in Mexico, named Patricia, was in danger and needed assistance to travel to the United States. Rider falsely stated that once “Patricia” was safely in the United States, she would have access to money to repay the victims.
Based on Rider’s false statements, the victims provided her with approximately $1,285,545.01, which she used at casinos and elsewhere for her personal benefit. As a result of the fraud, some elderly victims lost their retirement savings.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leah B. Grossi and David I. Salem, who prosecuted the case.
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Fourth Defendant Admits to Robbing Local Business with a FirearmRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old resident of Corpus Christi has entered a guilty plea to robbery and brandishing a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Francisco Chavera appeared before U.S. Magistrate Judge Janice B. Ellington today and admitted he robbed the Texas Food Mart in the 6100 block of Williams on Aug. 5, 2018, along with Matthew Joseph Bryant, 24, Nathealle Avori Tyrell Jones, 21, and Corey Alexander Newman, 25, all of Corpus Christi.
Officers responded to the aggravated robbery and observed a vehicle matching the reported description of the suspects’ vehicle and attempted to conduct a traffic stop. The vehicle fled until crashing into a utility pole, at which time all four occupants ran. After a short foot pursuit, authorities arrested all four individuals.
At that time, law enforcement searched the vehicle and the surrounding area and discovered U.S. currency, convenience store items, cigarettes, disposable gloves and a loaded handgun with an extended magazine.
Surveillance footage at the location showed two males wearing dark clothing and bandanas covering their faces had entered the store. As one male, who was later identified as Bryant, stayed by the front door and pointed a handgun at the clerk. The other male, later confirmed to be Chavera, went behind the counter and emptied the cash register into a bag along with cigarettes and flavored cigars. Both men then took the clerk’s cellular phone and wallet before leaving the store and fleeing in a dark colored sedan Jones was driving.
Bryant, Jones and Newman each pleaded guilty Jan. 31, 2019. Senior U.S. District Judge Janis Graham Jack later sentenced Bryant and Jones each to a 33-month sentence for the robbery to be followed by an additional 84 months for the firearms charge which must be served consecutively to the other sentences imposed. Both must also serve five years of supervised release following completion of their sentences.
Newman is pending sentencing before Judge Jack later this year.
Judge Jack will impose Chavera’s sentencing Oct. 31, 2019. At that time, he faces up to 20 years imprisonment and a maximum $250,000 possible fine for the robbery and a minimum of seven years for brandishing a firearm during a crime of violence which must be served consecutively to any other sentence imposed.
Chavera and Newman have been and will remain in custody pending their sentencing hearings.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.