Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
20 August 2019
Arms Trafficker Convicted in Anti-Aircraft Missiles Scheme and of Other Arms Offenses Sentenced to 30 Years in Federal PrisonRead the Press Release
LOS ANGELES – A black-market arms dealer with a long history of brokering machine guns, rocket-propelled grenades and anti-tank armaments – and who was found guilty last year in a scheme to sell and use surface-to-air missiles – has been sentenced to 30 years in federal prison.
Rami Najm Asad-Ghanem, 53, who was commonly known as Rami Ghanem, a naturalized United States citizen who was living in Egypt at the time of the offenses, was sentenced Monday by United States District Judge S. James Otero.
During Monday’s sentencing hearing, Judge Otero said, “The breadth, scope and gravity [of Ghanem’s offenses] is really breathtaking and, in many ways, frightening.”
Following a nine-day trial last November, a federal jury found Ghanem guilty of conspiring to use and to transfer missile systems designed to destroy aircraft. The day before his trial started, Ghanem pleaded guilty to six other federal crimes stemming from his arms-trafficking activities, including the unlicensed export of weapons and ammunition, smuggling, money laundering, and unlicensed arms brokering.
The evidence presented at last year’s trial showed that Ghanem conspired to transfer a wide array of surface-to-air missile systems to customers around the world, including clients in Libya, the United Arab Emirates, Iraq, and the leadership of Hezbollah, a designated foreign terrorist organization. During the trial, prosecutors showed that he conspired to use Russian-made Igla and Strela surface-to-air missile systems by brokering the services of mercenary missile operators to a militant faction in Libya in 2015. Among other actions, Ghanem negotiated the salaries and terms of service of the mercenary missile operators, coordinated their payment, facilitated their travel to Libya, confirmed their arrival and performance of duties, and offered them a $50,000 bonus if they were successful in their mission of shooting down airplanes flown by the internationally recognized government of Libya. In addition to numerous documents that demonstrated Ghanem’s role in the conspiracy, the jury viewed videos of sworn deposition testimony of two missile operators and Ghanem’s fellow arms broker who assisted in procuring their services for this transaction.
“This defendant brokered a wide array of military-grade weapons, which endangered civilians around the world and put at risk America’s national security interests, including members of our armed services,” said United States Attorney Nick Hanna. “Mr. Ghanem was literally a merchant of death who was ready, willing and able to sell weapons, including surface-to-air missiles, to any paying customer, with zero concern for the death and destruction these weapons might cause. As a result of his conduct, the sentence imposed in this case is appropriate and richly deserved.”
“This lengthy sentence is well deserved and, unfortunately, demonstrates the sheer breadth of criminal activity engaged in by those who oppose us,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “Counter-proliferation investigations are the highest priority for HSI – and we remain steadfastly committed to working with our domestic and international law enforcement partners to pursue transnational criminal networks intent on committing acts of terrorism against the United States.”
HSI’s Los Angeles Counter-Proliferation Investigations Center began the investigation into Ghanem in mid-2014, when a Los Angeles-based company alerted HSI that it had been solicited to provide military equipment to Ghanem. During an undercover operation, an HSI agent developed a relationship with Ghanem, who was seeking to procure a number of armaments – including sniper rifles and night-vision optics. During discussions with the undercover agent, Ghanem affirmed that the transactions were being conducted “illegally” and had to be “under the table.” During subsequent meetings with the undercover operative in Greece, Ghanem expressed an interest in purchasing helicopters and fighter jets on behalf of Iranian clients, and Ghanem said he had relationships with Hezbollah in Iraq.
Over the course of several months in 2015, Ghanem discussed his interest in purchasing numerous weapons, and in August 2015 placed an order for $220,000 worth of sniper rifles, pistols, silencers, laser sights, ammunition, night-vision googles and other items that were to be shipped to Libya. After making two down payments, Ghanem was arrested on December 8, 2015, in Athens. He was extradited to the United States in April 2016 to face prosecution in this case and has remained in custody without bond since the time of his arrest.
After his arrest, authorities seized numerous digital devices that Ghanem had in his possession. Searches of those devices revealed evidence of other large-scale arms brokering activities, including millions of rounds of ammunition, anti-tank missiles, and the scheme to transfer and use anti-aircraft missiles.
In documents filed in relation to the sentencing hearing, prosecutors offered evidence of a contract documenting Ghanem’s agreement to sell $250 million worth of weapons and ammunition to a militant faction in Libya; a contract between Ghanem and the Egyptian Ministry of Defense dealing with hundreds of rocket-propelled grenade launchers; attempts to buy and sell combat jets and helicopter gunships; and his apparent role in the trafficking of counterfeit currency, looted antiquities and black-market diamonds.
“Protecting America’s warfighters and preserving our national security interests by ensuring that Department of Defense assets and technologies do not end up in the hands of those that seek to do harm to our country or our foreign allies is a critical component of the Defense Criminal Investigative Service's mission,” said Bryan D. Denny, the Special Agent in Charge of the DCIS Western Field Office. “Ghanem’s sentencing reflects the seriousness of the crimes he committed against the United States, and serves as a cautionary tale to others considering or engaging in similar illegal activities. Without question, the exceptional collaboration between the U.S. Attorney's Office, Homeland Security Investigations, the Office of Export Enforcement, and DCIS led to Ghanem’s successful prosecution and sentencing, despite the inherent complexities in detecting, investigating, and prosecuting illegal international arms-trafficking matters.”
“This sentence is the result of outstanding collaborative investigative work by the Office of Export Enforcement and its law enforcement partners to combat the illegal shipment of sophisticated technology. We will continue to aggressively pursue violators wherever they may be,” said Richard Weir, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Los Angeles Field Office.
The investigation in this case was led by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which received substantial assistance from the Department of Defense’s Criminal Investigative Service; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and the Hellenic National Police; the Hellenic Financial and Economic Crimes Unit; and U.S. Customs and Border Protection. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant support in the investigation and securing the defendant’s extradition from Greece.
This case was prosecuted by Assistant United States Attorneys Melissa J. Mills and George E. Pence IV of the Terrorism and Export Crimes Section in the United States Attorney’s Office, and by Trial Attorney Christian E. Ford of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
Arms Trafficker Convicted in Anti-Aircraft Missiles Scheme and Other Arms Offenses Sentenced to 30 Years in Federal PrisonRead the Press Release
A black-market arms dealer with a long history of brokering machine guns, rocket-propelled grenades and anti-tank armaments – and who was found guilty last year in a scheme to sell and use surface-to-air missiles – was sentenced yesterday to 30 years in federal prison.
Rami Najm Asad-Ghanem, 53, who was commonly known as Rami Ghanem, a naturalized United States citizen who was living in Egypt at the time of the offenses, was sentenced by U.S. District Judge S. James Otero.
During this morning’s sentencing hearing, Judge Otero said, “The breadth, scope and gravity [of Ghanem’s offenses] is really breathtaking and, in many ways, frightening.”
Following a nine-day trial last November, a federal jury found Ghanem guilty of conspiring to use and to transfer missile systems designed to destroy aircraft. The day before his trial started, Ghanem pleaded guilty to six other federal crimes stemming from his arms-trafficking activities, including the unlicensed export of weapons and ammunition, smuggling, money laundering, and unlicensed arms brokering.
The evidence presented at last year’s trial showed that Ghanem conspired to transfer a wide array of surface-to-air missile systems to customers around the world, including clients in Libya, the United Arab Emirates, Iraq, and the leadership of Hezbollah, a designated foreign terrorist organization. During the trial, prosecutors showed that he conspired to use Russian-made Igla and Strela surface-to-air missile systems by brokering the services of mercenary missile operators to a militant faction in Libya in 2015. Among other actions, Ghanem negotiated the salaries and terms of service of the mercenary missile operators, coordinated their payment, facilitated their travel to Libya, confirmed their arrival and performance of duties, and offered them a $50,000 bonus if they were successful in their mission of shooting down airplanes flown by the internationally recognized government of Libya. In addition to numerous documents that demonstrated Ghanem’s role in the conspiracy, the jury viewed videos of sworn deposition testimony of two missile operators and Ghanem’s fellow arms broker who assisted in procuring their services for this transaction.
“This defendant brokered a wide array of military-grade weapons, which endangered civilians around the world and put at risk America’s national security interests, including members of our armed services,” said U.S. Attorney Nick Hanna for the Central District of California. “Mr. Ghanem was literally a merchant of death who was ready, willing and able to sell weapons, including surface-to-air missiles, to any paying customer, with zero concern for the death and destruction these weapons might cause. As a result of his conduct, the sentence imposed in this case is appropriate and richly deserved.”
“Yesterday’s sentencing is well deserved and, unfortunately, demonstrates the shear breadth of criminal activity engaged in by those who oppose us,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “Counter-proliferation investigations are the highest priority for HSI – and we remain steadfastly committed to working with our domestic and international law enforcement partners to pursue transnational criminal networks intent on committing acts of terrorism against the United States.”
“Protecting America’s warfighters and preserving our national security interests by ensuring that Department of Defense assets and technologies do not end up in the hands of those that seek to do harm to our country or our foreign allies is a critical component of the Defense Criminal Investigative Service's mission,” said Bryan D. Denny, the Special Agent in Charge of the DCIS Western Field Office. “Ghanem’s sentencing reflects the seriousness of the crimes he committed against the United States, and serves as a cautionary tale to others considering or engaging in similar illegal activities. Without question, the exceptional collaboration between the U.S. Attorney's Office, Homeland Security Investigations, the Office of Export Enforcement, and DCIS led to Ghanem’s successful prosecution and sentencing, despite the inherent complexities in detecting, investigating, and prosecuting illegal international arms-trafficking matters.”
“Yesterday’s sentence is the result of outstanding collaborative investigative work by the Office of Export Enforcement and its law enforcement partners to combat the illegal shipment of sophisticated technology. We will continue to aggressively pursue violators wherever they may be,” said Richard Weir, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Los Angeles Field Office.
HSI’s Los Angeles Counter-Proliferation Investigations Center began the investigation into Ghanem in mid-2014, when a Los Angeles-based company alerted HSI that it had been solicited to provide military equipment to Ghanem. During an undercover operation, an HSI agent developed a relationship with Ghanem, who was seeking to procure a number of armaments – including sniper rifles and night-vision optics. During discussions with the undercover agent, Ghanem affirmed that the transactions were being conducted “illegally” and had to be “under the table.” During subsequent meetings with the undercover operative in Athens, Ghanem expressed an interest in purchasing helicopters and fighter jets on behalf of Iranian clients, and Ghanem said he had relationships with Hezbollah in Iraq.
Over the course of several months in 2015, Ghanem discussed his interest in purchasing numerous weapons, and in August 2015 placed an order for $220,000 worth of sniper rifles, pistols, silencers, laser sights, ammunition, night-vision googles and other items that were to be shipped to Libya. After making two down payments, Ghanem was arrested on Dec. 8, 2015, in Athens. He was extradited to the United States in April 2016 to face prosecution in this case and has remained in custody without bond since the time of his arrest.
After his arrest, authorities seized numerous digital devices that Ghanem had in his possession. Searches of those devices revealed evidence of other large-scale arms brokering activities, including millions of rounds of ammunition, anti-tank missiles, and the scheme to transfer and use anti-aircraft missiles.
In documents filed in relation to today’s sentencing, prosecutors offered evidence of a contract documenting Ghanem’s agreement to sell $250 million worth of weapons and ammunition to a militant faction in Libya; a contract between Ghanem and the Egyptian Ministry of Defendant dealing with hundreds of rocket-propelled grenade launchers; attempts to buy and sell combat jets and helicopter gunships; and his apparent role in the trafficking of counterfeit currency, looted antiquities and black-market diamonds.
The investigation in this case was led by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which received substantial assistance from the Department of Defense’s Criminal Investigative Service; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and the Hellenic National Police; the Hellenic Financial and Economic Crimes Unit; and U.S. Customs and Border Protection.
This case was prosecuted by Trial Attorney Christian E. Ford of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division and Assistant U.S. Attorneys Melissa Mills and George E. Pence IV of the Terrorism and Export Crimes Section in the U.S. Attorney’s Office. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant support in the investigation and securing the defendant’s extradition from Greece.
American Airlines Inc. Agrees to Pay $22 Million to Settle False Claims Act Allegations for Falsely Reporting Delivery Times of U.S. Mail Transported InternationallyRead the Press Release
The Justice Department announced today that American Airlines Inc. has agreed to pay approximately $22.1 million to resolve its alleged liability under the False Claims Act for falsely reporting the times it transferred possession of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS). American Airlines is an international airline headquartered in Fort Worth, Texas.
“We expect companies doing business with the government to comply with their contractual obligations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice vigorously pursues all manner of fraudulent conduct that undermines the benefits that the government has bargained for.”
USPS contracted with American Airlines to take possession of receptacles of United States mail at six locations in the United States or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, American Airlines was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the specified destinations. The contracts specified penalties for mail that was delivered late or to the wrong location. Today’s settlement resolves allegations that scans submitted by American Airlines falsely reported the time it transferred possession of the mail.
“The U.S. Postal Service contracts with commercial airlines for the safeguarding and timely delivery of U.S. Mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases,” said Scott Pierce, Special Agent in Charge, USPS Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of contractual non-compliance within the mail delivery process, including the falsification of delivery information. Our special agents worked hand-in-hand with the Department of Justice’s Civil Division to help ensure a reasonable resolution and we applaud the exceptional work by the investigative and legal team.”
This matter was handled by the Civil Division’s Commercial Litigation Branch, the USPS Office of the Inspector General, and the USPS Office of General Counsel.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
19 August 2019
Wanted Sex Offender Arrested on Federal Charge of Coercion and EnticementRead the Press Release
St. Croix, USVI – Roger Black, 48, of St. Croix, appeared before Magistrate Judge George W. Cannon for an Initial Appearance on August 16, 2019, after his arrest by Homeland Security Investigations (HSI) Special Agents on the charge of Coercion and Enticement.
According to court documents, on August 12, 2019, HSI initiated a law enforcement operation designed to target and identity adult individuals seeking to make contact with and engage in sexual activity with minors. Agents working online in an undercover capacity, created personas in online forums and applications designed to facilitate interactions between individuals. On August 15, 2019, Black initiated contact with an undercover agent on the application Grindr by sending a picture of his naked torso and another of his genitals. A dialogue ensured during which the undercover agent stated that he was 14. Later the defendant discussed the sexual activity that he wished to participate in with the undercover agent. A meet was set up for August 16, 2019, at which time Black was arrested.
Black is a wanted sex offender from Missouri and also has an outstanding parole violation warrant from Georgia.
Upon request of the Government, Black was ordered detained with a full Detention Hearing scheduled for August 21, 2019.
The case was investigated by the Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Daniel H. Huston.
United States Attorney Gretchen C.F. Shappert reminds the public that an arrest warrant is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
U.S. Attorney's Office Writes Article for Meals on Wheels Newsletter to Promote Elder Justice InitiativeRead the Press Release
The U.S. Attorney’s Office for the Eastern District of North Carolina partnered with Meals on Wheels in Wake County to promote the Department of Justice’s (DOJ) Elder Justice Initiative (EJI) by writing an article for The Meal Times, the official newsletter for Meals on Wheels of Wake County. The monthly newsletter is distributed to approximately 10,000 older adults. The article discussed the following scams and tips on how seniors can protect themselves from becoming a statistic.
ROMANCE SCAMS where scammers use dating websites, social networking sites, and chat rooms to meet people. They create fake profiles to build online relationships – some even fake wedding plans - and eventually convince people to send money in the name of love.
- Be cautious of individuals who claim the romance was destiny or fate, or that you are meant to be together.
- Be cautious if an individual tells you he or she is in love with you and cannot live without you but needs you to send money to fund a visit.
- Fraudsters typically claim to be originally from the United States (or your local region) but are currently overseas, or going overseas, for business or family matters.
IRS IMPERSONATION SCAMS where criminals generally accuse victims of owing back taxes and threatens to sue, arrest or deport you if immediate payment is not made by certified check, credit card, electronic wire transfer, prepaid debit card or gift card.
- The IRS WILL NEVER call a taxpayer to demand immediate payment, nor will the agency call about taxes owed without first having mailed a bill to the taxpayer.
- THE IRS WILL NEVER demand that a taxpayer pay taxes without giving him or her the opportunity to question or appeal the amount claimed to be owed.
- THE IRS WILL NEVER ask for a credit or debit card number over the phone.
- THE IRS WILL NEVER threaten to send local police or other law enforcement to have a taxpayer arrested.
- THE IRS WILL NEVER require a taxpayer to use a specific payment method for taxes, such as a prepaid debit card.
GRANDPARENT SCAMS where scammers pose as a grandchild calling or sending messages to urge you to wire money immediately for rent, bail, car repair, to leave a foreign country, etc. These scammers play on your emotions, swear you to secrecy, and insist you wire the money right away!
- Resist the urge to act immediately, no matter how dramatic the story is.
- Verify the person’s identity by asking questions that a stranger couldn’t possibly answer.
- Call a phone number for your family member or friend that you know to be genuine.
- Check the story out with someone else in your family or circle of friends, even if you’ve been told to keep it a secret.
- DON’T WIRE MONEY - or send a check or money order by overnight delivery or courier.
SWEEPSTAKES/JAMAICAN LOTTERY SCAMS where fraudsters generally contact victims by phone or through the mail to tell them they have won or have been entered to win a prize. Scammers then require the victims to pay a fee to either collect their supposed winnings or increase their odds of winning the prize.
- Legitimate sweepstakes don’t make you pay a fee or buy something to enter or improve your chances of winning – that includes paying “taxes,” “shipping and handling charges,” or “processing fees” to get your prize.
- There is no reason to give someone your check account or credit card number in response to a sweepstakes promotion.
- DO NOT WIRE MONEY to “insure” delivery of the prize. The same goes for sending a check or money order by overnight delivery or courier, or putting money on a prepaid debit card.
The mission of the Elder Justice Initiative is to support and coordinate DOJ’s enforcement and programmatic efforts to prevent and combat elder abuse, neglect, financial exploitation and scams that target our nation’s seniors by promoting justice for older adults; helping older victims and their families; enhancing state and local efforts through training and resources; and supporting research to improve elder abuse policy and practice.
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1- 855-4VICTIM (1-855-4842846), or contact the Elder Justice Coordinator at the U.S. Attorney’s Office for the Eastern District of North Carolina at (919) 856-4530.
U.S. Attorney Statement on Law Enforcement Response to Portland DemonstrationRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, provided the below statement on the law enforcement response to the August 17, 2019 demonstration in Downtown Portland.
“As a prosecutor, I’ve had the honor of being involved in law enforcement in Oregon for nearly 30 years. Much of this time has been working with agencies in the Portland Metropolitan Area, and, as a federal prosecutor for the last 19 years, partners throughout the state.
This past Saturday, I had the privilege of watching more than 700 local, state and federal law enforcement, fire and medical professionals work tirelessly to protect the City of Portland. These dedicated, unselfish, and non-political public servants worked together to gather the resources needed to protect our community and, in the process, change the narrative of public safety in this city.
Law enforcement does not and cannot take sides in politically-charged public discourse. This weekend’s response effort was consistent with what I’ve observed throughout my career: public servants working together to ensure public safety and help others, irrespective of politics.
In an era where it’s become all too common for politicians and pundits to question the intentions of law enforcement, I hope this weekend’s police response will serve as a definitive counterpoint.
Please join me in thanking the men and women in uniform who gave up their time with family and friends to protect our community and allow people to exercise their rights here in Portland.
To our law enforcement partners throughout Oregon—the U.S. Attorney’s Office and the U.S. Department of Justice appreciate you and have your back.”
Two from Akron sentenced to prison for using more than $38,000 in counterfeit $100 bills to buy iPads, Apple watches and other items at stores such as Target, Best Buy and Dick’s Sporting GoodsRead the Press Release
Two men from Akron were sentenced to prison for using more than $38,000 in counterfeit $100 bills to buy iPads, Apple watches and other items at stores such as Target, Best Buy and Dick’s Sporting Goods.
Tori Smith, 35, was sentenced to nearly five years in prison last week. Allyn Bell, 32, was sentenced Monday to three years in prison. Robert Peters, 31, also of Akron, is scheduled to be sentenced later this year.
All three previously pleaded guilty to conspiracy to pass or utter counterfeit obligations or securities.
Smith, Bell and Peters conspired together between April 2917 and April 2018 to pass counterfeit $100 bills to purchase items that they sometimes returned to cash. They traveled together to stores Pennsylvania, Michigan and Ohio.
For example, on April 6, 2017, Bell passed four counterfeit $100 bills to an employee at Dick’s Sporting Goods in Butler, Pennsylvania to purchase items. Two days late, Bell traveled to the Dick’s Sporting Goods store in Mentor, Ohio, and returned the items he purchased for cash, according to court documents.
On April 27, 2017, Peters passed seven counterfeit $100 bills to employees at the Kohl’s in State College, Pennsylvania to purchase two Citizen watches. The next day, at the Kohl’s in Macedonia, Ohio, Peters returned one of the watches for approximately $409.96, according to the indictment.
The defendants together made more than 20 such purchases as part of the conspiracy, according to court documents.
“These defendants traveled across several states ripping off businesses,” U.S. Attorney Justin Herdman said.
“These defendants were part of a ring that passed over $38,000 in counterfeit currency in Northeast Ohio and multiple other states,” said Jonathan E. Schuck, Special Agent in Charge of U.S. Secret Service’s Cleveland office. “They used counterfeit money to purchase not only merchandise like electronics and clothes but also paid for gas, food and hotel rooms with counterfeit currency, taking advantage of local businesses. This was a complex case that could not have been solved without the assistance from many other local and state police departments.”
This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Ranya Elzein.
Two Essex County Men Sentenced to Federal Prison Terms on Drug and Weapons ChargesRead the Press Release
NEWARK N.J. – Two Essex County, New Jersey, men were sentenced today to federal prison terms following their convictions on multiple drug and weapons offenses, U.S. Attorney Craig Carpenito announced.
Jesse Tullies, 54, of Hillside, New Jersey, was sentenced to 235 months in prison and Eugene Williams, 34, of Newark, was sentenced to 190 months in prison. Both were convicted on one count each of conspiracy to distribute heroin, distribution of heroin, distribution of cocaine base, being a felon in possession of a weapon, and use and carrying of a firearm in furtherance of a drug trafficking crime. The defendants were convicted following a three-day trial in June 2018 before U.S. District Judge Kevin McNulty, who imposed the sentences today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On Oct. 4, 2017, Essex County Sheriff’s Officers witnessed Tullies and Williams involved in what they believed were a number of illegal drug sales in the area of Clinton Place and Weequahic Avenue in Newark. Tullies and Williams were subsequently arrested, and during a search, officers recovered $1,275 in cash from Tullies and $360 from Williams.
During a search of the area where officers had seen Tullies and Williams retrieve suspected narcotics from under the rear bumper of a car, officers also recovered the following items:
• One plastic bag containing 198 glassine envelopes containing suspected heroin, including four glassine envelopes stamped “Black Jack”;
• One plastic bag containing 22 smaller plastic bags and ten plastic jugs containing cocaine base and cocaine;
• A 9mm Beretta semiautomatic handgun loaded with two rounds of 9mm ammunition;
• A 9mm Taurus Millennium PT111 G2 semiautomatic handgun loaded with eight rounds of Sig Sauer 9mm ammunition and four rounds of Winchester 9mm ammunition; and
• A 9mm FEG PA-63 Makarov semiautomatic handgun loaded with two rounds of JSC Barnaul Machine Tool Plant 9mm hollow point ammunition.
In addition to the prison terms, Judge McNulty sentenced Tullies and Williams each to three years of years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office in Newark and Assistant U.S. Attorney Francisco Navarro of the U.S. Attorney’s Office, Eastern District of New York.
Defense counsel: Tullies: James R. Murphy Esq., Princeton, New Jersey
Williams: Pasquale F. Giannetta Esq., NewarkTrial Jury Finds New Orleans East Resident Guilty of Heroin and Cocaine Conspiracy, Firearm Possession, and Structuring; Defendant Must Forfeit $425,000 in Illegal Drug ProceedsRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that, last Friday, a federal jury returned a guilty verdict against New Orleans East resident DWIGHT ALEXANDER, age 48, on five counts involving drug, firearm, and financial crimes. The jury also ordered the defendant to forfeit approximately $425,000 in proceeds from his illegal drug operation. United States District Judge Greg G. Guidry scheduled ALEXANDER’s sentencing for November 19, 2019.
According to the evidence at trial, between 2012 and 2016, ALEXANDER sold a premium “cutting agent” used by drug dealers to expand and strengthen their heroin and cocaine. ALEXANDER’s product was called “Bonita,” and evidence showed that ALEXANDER acquired hundreds of kilograms of various powders like mannitol, lidocaine, quinine, and acetaminophen, that he then mixed and sold as Bonita to the highest-level drug dealers in New Orleans. During the timeframe of the conspiracy, ALEXANDER made frequent cash deposits from the proceeds of his sale of Bonita into various bank accounts. In total, the government seized approximately $425,000, which will be forfeited as the proceeds of his unlawful drug operation. ALEXANDER, who was a convicted felon, was arrested shortly after leaving his New Orleans East residence in October 2016. Agents conducted a search warrant at his residence and recovered a loaded Taurus revolver, as well as over 100 kilograms of various cutting agents that ALEXANDER intended to mix, market, and distribute to drug dealers.
At the conclusion of a five-day trial, the jury found ALEXANDER guilty of the lead charge of conspiring to distribute 1 kilogram or more of heroin and 5 kilograms or more of cocaine; two counts of distributing heroin; one count of being a felon in possession of a firearm; and one count of structuring cash deposits to avoid financial reporting requirements. On these counts, the defendant faces a mandatory minimum sentence of 10 years in prison and a maximum life sentence. The defendant also faces a period of supervised release of at least 5 years.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, which led this investigation and was assisted by the Kenner Police Department, Customs and Border Protection Agency, New Orleans Police Department, Louisiana State Police, and Jefferson Parish Sheriff’s Office. Assistant United States Attorneys Brandon Long, Theodore Carter, and Michael Redmann are in charge of the prosecution.
* * *
Topeka Man Pleads Guilty to Driving Getaway CarRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty Monday to driving a getaway car during a bank robbery, U.S. Attorney Stephen McAllister said.
Justin Alexander McClelland, 32, Topeka, Kan., pleaded guilty one count of aiding and abetting bank robbery. In his plea, McClelland admitted he drove a co-defendant to a Kentucky Fried Chicken restaurant where a co-defendant committed the robbery. Then McClelland drove the co-defendant away from the robbery.
Co-defendant Joshua Musgraves, 26, Topeka, Kan., pleaded guilty to robbery and is set for sentencing Oct. 7.
McClelland is set for sentencing Nov. 5. Both parties have agreed to recommend a sentence of three years in federal prison.
McAllister commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Teen Who Smuggled Individuals and Recruited Juveniles to Smuggle Drugs Sentenced to 46 Months in CustodyRead the Press Release
SAN DIEGO -- Phillip Junior Webb, 20, was sentenced by District Court Judge Michael M. Anello in federal court today to 46 months in custody for conspiring to distribute controlled substances and smuggle undocumented individuals, including a Mexican national and Chinese national, for financial gain.
According to the public record, at the time of the offense Webb was an 18-year-old high school senior who recruited other high school students to smuggle methamphetamine and/or fentanyl into the United States on multiple occasions. In each instance, the juveniles had drugs strapped on their bodies as they attempted to enter the United States at the San Ysidro or Otay Mesa Ports of Entry.
In May 2018 Defendant Webb was caught attempting to bring a Chinese national and a Mexican national into the United States in the trunk of his vehicle.
In July 2018, Webb pleaded guilty in federal court to charges that he recruited classmates to smuggle methamphetamine and fentanyl.
“We cannot allow drug cartels to cavalierly recruit our youth to smuggle potent methamphetamine and fentanyl drugs into our nation, thereby endangering our teens and contributing to our country’s addiction crisis,” said U.S. Attorney Robert S. Brewer, Jr. “We will stop this exploitation by bringing the full power of the justice system down on the recruiters who exploit these kids.”
“Violent Mexican cartels are making money by exploiting children in the United States and Mexico,” said DEA Special Agent in Charge Karen Flowers. “Our children, naive to the dangers, are promised money in exchange for allowing cartel members to strap drugs on their bodies in the back alleys of Tijuana, often surrounded by gun-baring cartel members, and smuggle the drugs to the US. What these children aren’t told is that these drugs are deadly and they are putting themselves at risk to be physically exploited or even killed. Phillip Webb coerced children with the lure of easy money and the Hollywood notion of a glamorized life of crime. His sentencing makes it clear that we will not stand by and let profiteers damage our children.”
“Today’s sentencing of Webb is an example of justice brought to an individual conspiring to exploit juveniles for their own financial gain,” said Timothy J. Tubbs, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in San Diego. “HSI continues to partner with CBP, other law enforcement agencies, and prosecutors to educate juveniles on the dangers, risks, and consequences of being involved in the vicious world of drug smuggling.”
“I commend the great work of CBP, HSI and DEA and recognize the unified coordination across government agencies to bring this person to justice,” said CBP Director of Field Operations for San Diego, Pete Flores. “We will continue to work diligently with our partners to stop transnational criminal organizations from exploiting and corrupting our youth.”
U.S. Attorney Brewer commended AUSA Sherri Hobson as a “force of nature,” who, inspired by the Webb investigation, helped spearhead an ambitious juvenile smuggling prevention program, in collaboration with the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Customs and Border Protection (CBP), the District Attorney, the San Diego Police Department, local schools, and South Bay Community Services. Over the past year, the multi-agency prevention team made scores of presentations, which have already reached 11,580 people, including 9,250 students, more than 680 parents, 610 school staff, health and counseling professionals, 145 members of law enforcement and 215 community members.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case No. 18MJ2229
Phillip Junior Webb Age: 20 Tijuana, Mexico
CHARGES
Count 1 – Conspiracy to Distribute Methamphetamine (21 U.S.C. 841 & 846)
Maximum Penalty: Ten years minimum to life in custody; $1 million fine
Count 2 - Bringing in Undocumented Aliens for Financial Gain (8 U.S.C. 1324)
Maximum Penatly: Three years mandatory minimum to 20 years in custody; $250,000 fine
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Customs & Border Protection
Homeland Security Investigations
San Diego County Sheriff’s Department
South L.A. Man Pleads Guilty to Federal Robbery Charge in Scheme that Stole Nearly $240,000 from United States Postal Service TrucksRead the Press Release
LOS ANGELES – A South Los Angeles man pleaded guilty today to a federal criminal charge and admitted to participating in two armed robberies of United States Postal Service trucks carrying tens of thousands of dollars in cash.
Myron Crosby, 28, of Athens, pleaded guilty to one felony count of robbery of United States property. United States District Judge S. James Otero has scheduled a November 25 sentencing hearing.
Crosby admitted in his plea agreement that, on February 1, 2018, he and his co-conspirators organized the armed robbery of a Postal Service truck departing the Wagner Post Office located in Los Angeles, near the city boundary with Inglewood. During the robbery, in which Crosby acted as a lookout, a white minivan blocked the USPS truck just outside the Wagner Post Office, the robber threatened the truck driver at gunpoint, and the robber stole $37,658 in cash.
On March 1, 2018, Crosby conspired to rob the Dockweiler Post Office in South Los Angeles, he admitted in his plea agreement. On the day of the robbery, Crosby rented a Mercedes-Benz SUV and used that vehicle to box in the USPS truck as it exited the southbound 110 Freeway at Slauson Avenue. At that time, another co-conspirator exited another vehicle, brandished a gun to control the USPS driver, and stole $72,563 in cash, the plea agreement states. Crosby admitted that he and his co-conspirators robbed the USPS of $110,221.
At the time of his sentencing hearing, Crosby will face a statutory maximum sentence of 25 years in federal prison.
On July 31, Crosby’s half-brother and co-defendant, William Crosby IV, 32, of Inglewood, pleaded guilty to two felonies: robbery of United States property and using a firearm in furtherance of a violent crime.
William Crosby is a former USPS supervisor who previously worked at both the Wagner and Dockweiler post offices and who knew when the USPS transported cash generated from the sale of money orders and USPS merchandise – information that is not known to all Postal Service employees, according to a July 2018 grand jury indictment charging the two men.
William Crosby admitted in his plea agreement that between August 2017 and March 2018, while a USPS employee, he conspired with others, including Myron Crosby, to plan a theft and two robberies of USPS trucks carrying cash. The burglary and armed robberies caused cash losses of $238,457, William Crosby admitted.
William Crosby’s sentencing hearing is scheduled for October 28, at which time he will face a statutory maximum sentence of life imprisonment.
The probe into Myron and William Crosby was conducted by the United States Postal Inspection Service and the United States Secret Service. The investigation remains ongoing with respect to additional co-conspirators and additional robberies.
The case is being prosecuted by Assistant United States Attorneys Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section, and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.
San Antonio Man Sentenced to 25 Years in Federal Prison for Production of Child PornographyRead the Press Release
In San Antonio today, 38-year-old Armando Robledo Gonzales was sentenced to 25 years in federal prison for production of child pornography, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Bexar County Sheriff Javier Salazar.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Gonzales be placed under supervised release for a period of ten years after completing his prison term.
On December 11, 2018, Gonzales pleaded guilty to the production charge. By pleading guilty, Gonzales admitted that in May 2017, he used the Internet to persuade a 13 year old to produce and send him visual images and videos of the minor engaging in sexually explicit conduct.
“We have a crisis of child sex abuse in this country and we must use every tool available to both federal and state law enforcement to address it. The efforts of the San Antonio Child Exploitation Task Force and my office demonstrate how we can effectively combine resources to apprehend and prosecute predators like Armando Gonzales,” stated U.S. Attorney Bash.
“Everyday, across the world, and in our community children are suffering in silence as we go about our daily activities,” said FBI SAC Combs. “The San Antonio Child Exploitation Task Force will relentlessly pursue every lead to rescue children who are being victimized, and bring their perpetrators to justice. We would encourage members of the public to help us protect children, who are among the most vulnerable in our community.”
The FBI San Antonio’s Child Exploitation Human Trafficking Task Force investigated this case. Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Portland Woman Indicted for Tax Fraud Scheme Targeting Somali Refugee CommunityRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, announced today that a local woman has been indicted for a tax fraud scheme targeting Somali refugees in the Portland Metropolitan Area.
Rukia Mohamed, 35, a resident of Portland, has been charged with thirteen counts of making false statements by willfully aiding and assisting individual taxpayers to submit false or fraudulent tax returns claiming tax credits for which the taxpayers were ineligible. Mohamed is also charged with three counts of filing false tax returns for her own taxes.
The indictment alleges that from 2014-2017, Mohamed claimed more than $1 million in false tax credits on behalf of ineligible taxpayers.
“We encourage members of the public to carefully evaluate those from whom they take tax or other financial advice from,” said U.S. Attorney Williams. “We are aware of fraudulent tax preparers targeting refugee communities in the Portland area and are working closely with the IRS to investigate these crimes and bring those responsible to justice.”
Mohamed was released pending a three-day jury trial before U.S. District Court Judge Michael H. Simon.
This case was investigated by IRS-Criminal Investigation and is being prosecuted by Michelle Kerin, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
If you or someone you know have information about tax preparers you believe are engaged in fraudulent activity, please complete IRS Form #3949-A, print it and mail it to: IRS-Criminal Investigation, 1220 SW Third Avenue, G044 M/S 0326, Portland, Oregon 97204.
Pittsburgh Man Charged with Drug Offenses, Including Distributing Heroin and Fentanyl Resulting in an Overdose DeathRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on July 23 and unsealed last week, named Davonte Dugger, age 20, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the Indictment, on August 7, 2018, Dugger distributed heroin and fentanyl that caused serious bodily injury and death of a person who used the heroin and fentanyl. The Indictment also charges Dugger with possession with intent to distribute and distribution of heroin and fentanyl on October 10, 2018, and possession with intent to distribute 10 grams or more of heroin, fentanyl, and acetyl fentanyl on October 19, 2018.
The law provides for a maximum total sentence of not less than 20 years and up to life imprisonment, a fine of $7,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Moon Township Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Picayune Man Pleads Guilty under Project EJECT to Illegal Possession of FirearmRead the Press Release
Jackson, Miss. – Dewayne Yates, 28, of Picayune, pled guilty today before U.S. District Judge Henry T. Wingate to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation.
On March 31, 2017, Yates was found in possession of a firearm during an administrative checkpoint in Jackson. He was previously convicted of felonious aggravated assault with a gun in Hinds County. On March 5, 2019, Yates was charged in a federal criminal indictment with possession of a firearm by a convicted felon.
Yates will be sentenced by Judge Wingate on November 21, 2019 at 9:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Penitentiary Inmate Sentenced in Federal Case for Role in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Joe Kelly announced that on August 15, 2019 Chief United States District Judge John M. Gerrard sentenced Dustin Pauly to a term of imprisonment of 262 months, to be served concurrently to an undischarged term of imprisonment in an unrelated state case. Pauly, 32, of Kearney, Nebraska, pleaded guilty earlier in federal court to conspiracy to distribute methamphetamine.
In January 2019, investigators received information from the Nebraska State Penitentiary regarding drug activity involving Pauly, who was then an inmate at the Penitentiary. Investigators determined that Pauly helped coordinate the delivery of a parcel containing several pounds of methamphetamine to Hannah Pauly’s residence in Kearney. Investigators obtained a warrant to search the residence and recovered five bundles of methamphetamine in varying quantities, totaling close to five pounds. Hannah Pauly and her roommate, Jose Santos-Zepeda, were arrested and charged in the case.
The case was investigated by the Nebraska State Patrol, the Kearney Police Department, and the Central Nebraska Drug and Safe Streets Task Force.
Owners of EMS Company Sentenced to 42 Months in Prison for $3.6M Health Care Fraud SchemeRead the Press Release
COLUMBUS, Ohio – Owners of Tritan EMS were sentenced in U.S. District Court for crimes related to a $3.6 million health care fraud scheme.
Jeralyn R. Dougherty, 67, of Dublin, was sentenced Friday to 42 months in prison, ordered to pay more than $3.6 million in restitution, including $873,716 to the IRS, and ordered to forfeit numerous financial accounts.
Clint J. Green, 47, of Orient, Ohio, was sentenced in June 2019 to 42 months in prison, ordered to pay more than $3.3 million in restitution, including $649,671 to the IRS, and ordered to forfeit numerous financial accounts.
In February 2019, Dougherty and Green pleaded guilty to health care fraud and filing false tax returns.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, and Ohio Attorney General Dave Yost announced Dougherty’s sentence imposed Friday by Senior U.S. District Judge James L. Graham.
According to court documents, between January 2012 and June 2017 Dougherty and her son, Green, owned and operated Tritan EMS, LLC (Tritan), a medical transportation company and Medicare and Medicaid provider.
Dougherty and Green were aware that Medicare and Medicaid only reimbursed claims for non-emergency ambulance services provided to Medicare recipients who were transported to certain locations, such as a hospitals, skilled nursing facilities or renal dialysis facilities, and only where the patients were being transported to receive Medicare or Medicaid covered services or returning from receiving care for such services.
Dougherty and Green billed Medicare and Medicaid for ambulance services knowing that patients were transported by a vehicle other than an ambulance, and knowing that the patients did not meet the Medicare and Medicaid requirements for ambulance services.
The total amount of fraudulent claims submitted to Medicare and Medicaid at the direction of Dougherty and Green for ambulance services that were medically unnecessary and by a vehicle other than an ambulance was more than $2.7 million.
Dougherty filed false personal tax returns with the IRS for the 2013 through 2016 income tax years. Dougherty misrepresented on her personal tax returns the amount of income she received from Tritan each year. The total tax loss to the IRS was $873,716.
Green also filed false personal tax returns with the IRS for the 2014 through 2016 income tax years, and the total tax loss to the IRS was $649,671.
“Waste, fraud and abuse in the health care industry contributes to the rising cost of health care and degrades the integrity of our health care system,” said William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation. “Fortunately, one of the government's most powerful weapons is the ability to seize assets through the asset forfeiture program and in this case the government has seized a significant portion of the health care fraud proceeds.”
“Those who try to game the health care system will end up losing,” Ohio Attorney General Dave Yost said. “I’m proud of my staff and our partners at the federal level for securing justice in this case.”
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, HHS OIG the Ohio Attorney General’s Medicaid Fraud Control Unit, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who prosecuted these cases.
# # #
Orthodontist Indicted for Bribery and Fraud Scheme with Former Arkansas State SenatorRead the Press Release
An orthodontist who owned several businesses that operated orthodontic clinics in Arkansas was indicted for perpetrating a bribery and fraud scheme involving former Arkansas State Senator Jeremy Hutchinson, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Duane "DAK" Kees for the Western District of Arkansas.
Benjamin Gray Burris, 47, of Windermere, Florida, was charged today in the Western District of Arkansas with 14 counts of honest services wire fraud and one count of conspiracy to commit honest services wire fraud. Burris’s arraignment will be scheduled at a later date.
As alleged in the indictment, beginning in or about February 2014, Burris and Hutchinson devised a scheme in which Burris hired and retained Hutchinson as an attorney and paid Hutchinson retainer payments in exchange in part for Hutchinson to take official action as an Arkansas legislator to benefit Burris and his orthodontic companies. Between February 2014 and November 2016, Burris paid Hutchinson, through Hutchinson’s law firm, approximately $157,500 and provided Hutchinson with gifts including free orthodontic services for his family and the use of a private plane to travel to a college football game. Hutchinson, in return, used his official position as a state senator to draft and file legislation to amend a law restricting dental practices that Burris wanted to change. In addition, Hutchinson advised and influenced members of the Arkansas Department of Human Services to expedite the approval of Medicaid applications for physician employees of Burris’s clinics.
On June 25, 2019, Hutchinson, 45, of Little Rock, Arkansas, pleaded guilty to one count of conspiracy to commit federal program bribery in the Eastern District of Arkansas, before U.S. District Judge Kristine G. Baker, for his role in this scheme. Hutchinson’s sentencing has not yet been scheduled.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Little Rock Field Office investigated the case. The case is being prosecuted by Trial Attorneys Sean F. Mulryne and Marco A. Palmieri of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorneys Aaron Jennen and Ben Wulff of the Western District of Arkansas.
Orthodontist Indicted for Bribery and Fraud Scheme with Former Arkansas State SenatorRead the Press Release
Fayetteville, AR — Benjamin Gray Burris, an orthodontist who owned several businesses that operated orthodontic clinics in Arkansas, was indicted today for perpetrating a bribery and fraud scheme involving former Arkansas State Senator Jeremy Hutchinson, announced U.S. Attorney Duane (DAK) Kees for the Western District of Arkansas and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Burris, 47, of Windermere, Florida, was charged today in the Western District of Arkansas with 14 counts of honest services wire fraud and one count of conspiracy to commit honest services wire fraud. Burris’s arraignment is scheduled for September 11, 2019, in the Western District of Arkansas.
As alleged in the indictment, beginning in or about February 2014, Burris and Hutchinson devised a scheme in which Burris hired and retained Hutchinson as an attorney and paid Hutchinson retainer payments in exchange in part for Hutchinson to take official action as an Arkansas legislator to benefit Burris and his orthodontic companies. Between February 2014 and November 2016, Burris paid Hutchinson, through Hutchinson’s law firm, approximately $157,500 and provided Hutchinson with gifts including free orthodontic services for his family and the use of a private plane to travel to a college football game. Hutchinson, in return, used his official position as a state senator to draft and file legislation to amend a law restricting dental practices that Burris wanted to change. In addition, Hutchinson advised and influenced members of the Arkansas Department of Human Services to expedite the approval of Medicaid applications for physician employees of Burris’s clinics.
On June 25, 2019, Hutchinson, 45, of Little Rock, Arkansas, pleaded guilty to one count of conspiracy to commit federal program bribery in the Eastern District of Arkansas, before U.S. District Judge Kristine G. Baker, for his role in this scheme. Hutchinson’s sentencing has not yet been scheduled.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Aaron Jennen and Ben Wulff of the Western District of Arkansas and trial Attorneys Sean F. Mulryne and Marco A. Palmieri of the Criminal Division’s Public Integrity Section.
Nigerian Man Sentenced to Prison for Role in $8.3 Million Medicare Fraud Scheme and Related Money LaunderingRead the Press Release
A Nigerian man was sentenced to 46 months in prison today for his role in a durable medical equipment (DME) scheme in which more than $8 million was fraudulently billed to Medicare for DME that was not medically necessary.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division and Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
Ayodeji Temitayo Fatunmbi, 47, of Nigeria, was sentenced to 46 months in prison by U.S. District Judge Christina A. Snyder of the Central District of California, who also ordered Fatunmbi to pay $1,076,893.15 in restitution. Fatunmbi pleaded guilty on May 8, 2019 to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.
Fatunmbi was charged along with Olufunke Ibiyemi Fadojutimi, 47, of Carson, California, and Maritza Elizabeth Velasquez, 44, of Las Vegas, Nevada.
As part of his guilty plea, Fatunmbi admitted that he and others paid cash kickbacks to patient recruiters and physicians for fraudulent prescriptions for DME such as power wheelchairs, which the Medicare beneficiaries did not have a legitimate medical need. Fatunmbi and co-conspirators caused Lutemi Medical Supply (Lutemi), a DME supply company that he co-ran, to submit approximately $8.3 million in claims to Medicare, which resulted in the company being paid over $3.5 million. Fatunmbi further admitted that he was responsible for $2,090,434 in false and fraudulent claims for medically unnecessary DME and that as a result of his conduct, Medicare paid Lutemi a total of $1,076,893. In furtherance of this scheme, Fatunmbi and a co-conspirator wrote checks from Lutemi’s bank account to Lutemi employees and others, and Fatunmbi instructed that those monies be returned to him to pay the illegal cash kickbacks to the patient recruiters and doctors, he admitted. Fatummbi admittedly directed others at Lutemi to engage in these tranactions to conceal the nature and source of the proceeds of the health care fraud conspiracy.
Velasquez pleaded guilty on July 24, 2013, to one count of conspiracy to commit health care fraud, and was sentenced to 15 months in prison and restitution in the amount of $3,411,428. Fadojutimi was found guilty after a jury trial on July 31, 2014, of one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, and was sentenced to four years in prison and restitution in the amount of $4,372,466.
This case was investigated by the HHS-OIG, the FBI and IRS-CI. Trial Attorneys Claire Yan, Emily Z. Culbertson and Justin P. Givens of the Criminal Division’s Fraud Section are prosecuting the case. The Asset Forfeiture Section of the U.S. Attorney’s Office for the Central District of California is handling the asset forfeiture aspects of the case.
The Fraud Section leads the Medicare Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Monroe resident sentenced to 6 years in prison for possessing two sawed-off shotgunsRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Nelson Bell Jr., 52, of Monroe, was sentenced today to 72 months in prison and three years of supervised release U.S. District Judge Terry Doughty for possessing two sawed-off shotguns. He previously pleaded guilty to the federal charges on April 9, 2019.
Monroe Police went to Bell’s home on October 23, 2017, in response to a complaint. The officers determined that Bell had fired a gun in the living room, hitting a couch across from where his wife was sitting, and then went outside and fired a shot into the air. Officers found an ejected shell from the firearm on the living room floor and two shotguns, an Ithaca shotgun, Model 37, 12 gauge and a Browning shotgun, Model Light Twelve 12 gauge. Law enforcement agents measured the barrels of both shotguns and found they measured less than 18 inches in length, the minimum length required by law. Bell admitted to possessing the firearms, and that he was aware they were below the legal barrel length and not registered as required by law. Under federal law, shotguns with barrels shorter than 18 inches must be registered.
The ATF and the Monroe Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Methamphetamine Dealer Sentenced to 160 Months in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Jason Michael Clark, age 46, of Spokane, Washington, was sentenced after having pleaded guilty on May 30, 2019, to possession with intent to distribute 50 grams or more of methamphetamine. Senior United States District Judge Robert H. Whaley sentenced Clark to a 160-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, members of the Spokane Police Department, Patrol Anti-Crime Team (“PACT”) encountered Clark leaving a residence as they were arresting another individual who had an outstanding warrant. Officers subsequently determined that Clark left a backpack in the residence’s driveway. A search of Clark’s abandoned backpack revealed that it contained over 50 grams of methamphetamine and drug-trafficking paraphernalia.
United States Attorney Hyslop said, “The federal, state and local law enforcement agencies who worked on this case should be commended for their ongoing commitment to investigate aggressively individuals trafficking in methamphetamine. The United States Attorney’s Office for the Eastern District of Washington will similarly continue its ongoing commitment to prosecute methamphetamine traffickers and to seek appropriate punishment for their criminal conduct.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Federal Bureau of Investigation, Spokane Regional Safe Streets Task Force, the Spokane Police Department PACT, the Spokane County Sheriff’s Office, and the Kootenai County Sheriff’s Office. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Manchester Felon Pleads Guilty to Illegal Firearm PossessionRead the Press Release
CONCORD - Christopher D. Mann, 35, of Manchester, pleaded guilty in federal court to unlawfully possessing a firearm, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on April 16, 2019, the United States Marshals Service executed an arrest warrant for Mann having violated supervised release from a prior offense. Mann was arrested in a vehicle that was owned by Mann's girlfriend. At the time of the arrest, the deputy Marshal seized a Glock .357 caliber handgun from the passenger seat where Mann had been sitting. In addition, the deputy Marshal seized from Mann's pocket two magazines of ammunition for the handgun that was found on seat.
Mann was prohibited from possessing any firearms or ammunition as a result of at least one prior felony conviction.
Mann is scheduled to be sentenced on November 22, 2019.
“In order to keep our communities safe, federal law prohibits convicted felons from possessing firearms,” said U.S. Attorney Murray. “Thanks to the excellent enforcement work of the U.S. Marshals Service, this convicted felon was disarmed.”
This matter was investigated by the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
###
Manager of Insurance Broker Pleads Guilty in Seven-Year Embezzlement SchemeRead the Press Release
NEWS RELEASE SUMMARY – August 19, 2019
SAN DIEGO – A Ramona woman, who for ten years worked as the operations manager for a San Diego-based insurance broker, admitted today to participating in a scheme to defraud her employer of over $700,000. The scheme lasted over seven years and involved hundreds of fraudulent checks written to herself and a family member.
During a hearing this morning before U.S. District Judge Thomas J. Whelan, the defendant, Antonia Barber, pleaded guilty to one felony count of Wire Fraud.
According to her plea agreement, Barber, 51, worked as the operations manager for a local insurance brokerage firm from 2005 until June 2015. In that job, she had significant discretion over the finances of the company, and was responsible for approving expense reimbursement requests. Abusing her position, she caused hundreds of checks to be written by the company to a family member, purportedly for “records management,” when in fact such services were not provided. Additionally, she caused hundreds of checks to be written by the company to herself personally, purportedly for expense reimbursements – expenses which in fact she had not incurred. The defendant admitted that the total loss in connection with these fraudulent checks was approximately $726,000 over the course of the seven-year scheme.
“The business owners in our community have a right to the honest services of their employees,” said United States Attorney Robert S. Brewer, Jr. “Stealing from your employer, whether done in a subtle manner over a period years or a brazen way, results in a negative hit to the bottom line that impacts competitiveness. It will not be tolerated.” “I also want to commend the Secret Service for their excellent investigation and AUSA Robert Huie for his leadership and tenacity during this investigation,” Brewer said.
“The U.S. Secret Service is committed to protecting our nation’s financial infrastructure, which includes stopping fraudulent activities like this wire and check fraud,” said Special Agent in Charge James E. Anderson Jr., of the U.S. Secret Service San Diego Field Office. “The Secret Service San Diego Field Office will continue to investigate individuals who utilize and take advantage of their position in an effort to defraud their employer.”
Barber is scheduled to be sentenced on December 9, 2019 at 9:00 a.m., before Judge Whelan.
DEFENDANT Case Number 18-CR-4028-W
Antonia Barber Ramona, CA Age: 51
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment, $250,000 fine (or twice the pecuniary gain or loss), restitution and forfeiture.
AGENCIES
U.S. Secret Service
Man Sentenced to More than 8 Years in Prison for Illegally Importing, Selling Male Sexual Enhancement Pills Branded as ‘Herbal’ MedicineRead the Press Release
LOS ANGELES – A Walnut man was sentenced today to 100 months in federal prison for illegally importing from China and selling $11 million worth of pharmaceutical-grade erectile dysfunction drugs that were falsely marketed as herbal remedies for men, some of whom suffered permanent injuries after consuming them.
John Seil Lee, 41, was sentenced by United States District Judge Percy Anderson, who ordered him remanded into federal custody. Judge Anderson – who also ordered Lee to pay more than $552,000 in restitution to his victims, including men who were injured by Lee’s misbranded pills – remarked in court on Lee’s “callousness” and how Lee’s “scheme has literally ruined lives.”
“It’s obvious to me,” Judge Anderson said, “that this defendant has little or no respect for the law or the harm he caused numerous victims.”
On February 27, Lee pleaded guilty to three felony counts of conspiracy, importing contraband into the United States, and filing a false tax return.
Lee’s companies – KHK International Trade Enterprise, Inc., and SHH World Trading Enterprises, Inc. – each were sentenced today to five years’ probation. KHK was fined $100,000 and SHH was ordered to pay its victims $115,484 in restitution. Lee’s companies each pleaded guilty in February to two felony counts of introducing misbranded drugs into interstate commerce.
From 2011 through early 2017, Lee illegally imported shipments of powder Tadalafil – a prescription drug used to treat erectile dysfunction and sold under the brand name Cialis – from suppliers in China. Lee then manufactured the powder Tadalafil into at least 5.5 million pills that he sold to distributors across the United States. In order to boost sales, Lee made the pills with up to 14 times the level of Tadalafil contained in Cialis.
Lee sold at least $11 million worth of pills across the United States – under names such as “X Again,” “X Monster” and “Royal Master” – with labels that did not disclose the presence of Tadalafil and falsely stated that no prescription was necessary, according to court documents. Lee also continued selling the pills despite FDA announcements that the pills were tainted because they contained undeclared Tadalafil. In order to evade federal regulators, Lee relabeled the tainted pills in response to FDA announcements about their safety, the information states. For example, in August 2016, after the FDA announced that SHH’s “One More Knight” pills contained undisclosed Tadalafil, Lee rebranded the same pills as “Own the Knight” and continued selling them.
After Lee closed SHH following the execution of federal search warrants in February 2017, he helped his friend Jin Su Park set up RNG Global Management and Trading Group to operate as a copycat business, according to Park’s plea agreement and statements made in court today. Park took 14,000 of Lee’s pills, rebranded them as “EEZZY UP PLATINUM,” and sold them to Lee’s former distributors across the country. EEZZY UP’s packaging also failed to disclose that the pills contained Tadalafil.
The FDA’s approval of Cialis is limited to the use under the supervision of a licensed professional. Due to toxicity and other potentially harmful effects – including life-threatening drops in blood pressure, loss of vision, loss of hearing and prolonged, painful erections that can result in permanent injury – drugs similar to Cialis are not safe for use except under the supervision of a medical practitioner.
In addition to the convictions of Lee, KHK, and SHH, federal prosecutors have obtained 13 guilty pleas from individuals and companies who conspired with Lee to distribute his misbranded erectile dysfunction drugs. These defendants are scheduled to be sentenced by Judge Anderson over the next several months.
The investigation into these cases was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Food and Drug Administration’s Office of Criminal Investigations and IRS Criminal Investigation.
The cases are being prosecuted by Assistant United States Attorney Matthew W. O’Brien of the Environmental and Community Safety Crimes Section.
Hidden active pharmaceutical ingredients have been identified in products promoted not only for sexual enhancement, but also for bodybuilding, pain relief and weight loss. The FDA has issued hundreds of public warnings and recall announcements related to these types of fraudulent products. The FDA’s Tainted Products database can help consumers identify some of these potentially harmful products. Even if a product is not included in the list, consumers should be cautious about using certain products, especially those promoted for sexual enhancement, weight loss, bodybuilding and pain relief.
Lincoln Man Sentenced for Stealing Funds from His Elderly FatherRead the Press Release
United States Attorney Joe Kelly announced that Chief United States District Court Judge John M. Gerrard sentenced Craig A. Barnett, 62, of Lincoln, Nebraska, Thursday to a jail term of 16 months, a term of supervised release of three years and restitution of $277,000 for his conviction for wire and mail fraud.
During the six-year period from February 2010 through September 2016, Barnett misappropriated monies from his father’s various income sources including his Social Security benefits, his pension plan payouts and various investment funds that were to be used for the care of his elderly father. Barnett used the money for his own personal use and enjoyment.
As part of his scheme, Barnett had his father execute a power of attorney granting Barnett control over his father’s financial affairs. Barnett then used this power of attorney to steal his father’s personal funds, which were to be used to pay for his father’s care at an assisted-living facility where he resided. Some of these stolen funds were used by Barnett to purchase a new home and an automobile unbeknownst to his elderly father.
It was not until the Office of the Public Guardian for the State of Nebraska intervened on behalf of his father that the fraudulent conduct on the part of the defendant was discovered. As part of his sentence, Barnett is required to make restitution in the total amount of $277,000 to his father, the State of Nebraska, and the assisted-living facility where his father still resides.
This case was investigated by the United State Department of Labor, the Office of Inspector General for the Social Security Administration, the Nebraska Department of Health and Human Services and the Office of the Public Guardian for the State of Nebraska.
Lawrence Woman Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD – Karina Reyes, 29, of Lawrence, Massachusetts, pleaded guilty in federal court to distributing fentanyl as part of a seven-defendant narcotics case, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Reyes resided with a drug trafficker in Lawrence, Massachusetts, and sometimes provided translation services for him during telephone conversations about trafficking in fentanyl, including making arrangements for specific drug transactions in New Hampshire.
Reyes is scheduled to be sentenced on November 22, 2019
Co-defendants Billy Damuel Maldonado Cancel, Jose Hiram Martinez Rolon, Samuel Ramos, and Abelino Morales-Padilla previously pleaded guilty to fentanyl trafficking charges in the same case. .
“Those who participate in the trafficking of fentanyl will be arrested and prosecuted,” said U.S. Attorney Murray. “It is vital to the health and safety of the public that we disrupt the distribution of this lethal substance. Law enforcement at all levels is united in the effort to stop traffickers.”
This matter was investigated by the U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, the New Hampshire State Police, and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney John Davis.
###
Lane County Man Pleads Guilty to Shooting at Endangered Gray WolfRead the Press Release
MEDFORD, Ore.—Colton Tony Dick, 22, of Oakridge, Oregon, pleaded guilty today to a single count of unlawfully taking an endangered species.
According to court documents, on October 5, 2016, using a rifle and scope, Dick shot at an endangered gray wolf without legal justification as the animal was walking away from him in the Fremont-Winema National Forest. Dick was unable to locate the wolf.
Although Dick did not admit to killing a gray wolf, an investigation began on October 6, 2016 when an adult female GPS-collared gray wolf known as “OR 28” was found dead in the Fremont-Winema National Forest near Summer Lake, Oregon. On November 9, 2016, the US Fish and Wildlife Service Forensic Lab determined OR 28 died as a result of injuries sustained from a single gunshot wound.
Gray wolves (Canis lupus), located in Western Oregon, are listed as endangered under the Endangered Species Act.
Unlawfully taking an endangered species carries a maximum sentence of one year in prison, a $100,000 fine and one year of supervised release.
Under a deferred sentencing agreement with the government, Dick has agreed to submit to one-year of supervised release, pay restitution of $2,500 to the Oregon Department of Fish and Wildlife, not hunt any wildlife for a period of one year and perform 100 hours of community service.
If Dick complies with these conditions, he will be allowed to withdraw his guilty plea and the government will move to dismiss his charge.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement and the Oregon State Police. It was prosecuted by Adam E. Delph, Assistant U.S. Attorney for the District of Oregon.
If you or someone you know has information about a wildlife crime, please contact the U.S. Fish and Wildlife Service Office of Law Enforcement by emailing [email protected] or calling 1-844-397-8477.
Kentucky Man Pleads Guilty to Traveling to Have Sex with a MinorRead the Press Release
HUNTINGTON, W.Va. – A South Shore, Kentucky man pled guilty to a sex offense involving a minor, announced United States Attorney Mike Stuart. Charles Wayne Logan, 39, pled guilty to traveling in interstate commerce with the intent to engage in illicit sexual activity with a minor.
“Parents please monitor the online activity of your children,” said United States Attorney Mike Stuart. “There are far too many people like Logan surfing the net and utilizing popular cell phone applications to entice and exploit our children. We must work together to keep our children safe from predators.”
Logan admitted that he began communicating via a cell phone application with a person he believed to be a 14-year-old female on January 10, 2019. The conversations were sexual in nature and involved Logan telling the minor he planned to engage in sexual intercourse with her when they met in person. Logan also sent the purported minor a video depicting himself masturbating. On January 14, 2019, Logan, a long-haul truck driver, arranged to meet with the purported minor at a location in Huntington after he drove back to Kentucky from Indiana. When Logan arrived at the meeting location, he was placed under arrest.
Pursuant to the terms of his plea agreement, Logan faces eight years in prison when sentenced on November 25, 2019. Upon release from prison, Logan will be required to serve a term of supervised release of fifteen years and will also be required to register as a sex offender.
The FBI Violent Crimes Against Children Task Force and the West Virginia States Police Internet Crimes Against Children Task Force conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Jury Returns Conviction in On-Line Dating Fraud ConspiracyRead the Press Release
OKLAHOMA CITY – NNAMDI FRANKLIN OJIMBA, 35, has been convicted by a jury of conspiring to commit wire fraud based on his involvement in an on-line romance scam, announced U.S. Attorney Timothy J. Downing.
According to an indictment filed on October 17, 2017, Ojimba and others defrauded individuals by fostering what appeared to be a genuine romantic relationship on-line and then convincing those individuals to send them money. Ojimba and others used the persona "Edward Peter Duffey" and claimed to be a successful financial advisor or affiliated with charitable causes. He purported to have inside financial information, such as knowledge that the investment firm used by the victim was under investigation or was financially unsound. As a result of these fraudulent claims, victims wired money to conspirators for what they believed would be investments. In reality, Ojimba and his conspirators kept the money for themselves.
Two of Ojimba’s conspirators, Ken Ejimofor Ezeah and Akunna Baiyina Ejiofor, have already been convicted and sentenced. Ezeah, who pleaded guilty to conspiracy, was sentenced to 11 years in prison on October 6, 2017, and ordered to pay $4,678,302.79 in restitution to ten victims. Ejiofor was convicted by a jury on March 30, 2017, and sentenced to seven years in prison on September 28, 2017.
In October 2018, a jury was unable to reach a verdict on the conspiracy count. The United States re-tried the conspiracy case against Ojimba beginning on August 12, 2019, before a different jury. On August 16, he was found guilty. Chief United States District Judge Timothy D. DeGiusti ordered that Ojimba be detained in the custody of the U.S. Marshals Service pending further proceedings.
At sentencing, Ojimba faces up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. Sentencing will take place in approximately 90 days.
This conviction is the result of an investigation by the FBI Oklahoma City Division. The case is being prosecuted by Assistant U.S. Attorney Timothy W. Ogilvie.
Reference is made to public filings for further information.
Johnstown Woman Sentenced to 5 Years in Prison for Heroin ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court in Johnstown to 60 months in prison and four years supervised release on her conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Alissa N. Mosley, 30.
According to information presented to the court, on July 27, 2017, Mosley and a co-defendant did possess with intent to distribute more than 100 grams of heroin.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Mosley.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Bernard Lavon Woofter, 43, of Jackson, pled guilty today before Chief U.S. District Court Judge Daniel P. Jordan III to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On February 13, 2018, Woofter was arrested by an officer with the Jackson Police Department following a pat down search wherein the officer discovered he was carrying a Rossi .38 Special revolver in his waistband. Woofter had previously been convicted of felony theft in Knox County, Tennessee.
Woofter will be sentenced by Judge Jordan on November 22, 2019 at 9:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It is being prosecuted by Assistant United States Attorney Kimberly T. Purdie.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson Man Found Guilty by Federal Jury under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. –Otha Ray Flowers, 37, of Jackson, was found guilty this afternoon by a federal jury for illegally possessing a firearm as a convicted felon, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation, and Special Agent in Charge Kirk Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
At approximately 8:30 pm. on February 18, 2017, an officer with the Jackson Police Department initiated a field interview of two men sitting in a parked vehicle outside of Big Boys Groceries on Road of Remembrance. Upon approaching the vehicle, the officer smelled the odor of marijuana. After asking the driver, later identified as Flowers, for his driver’s license, another officer observed the passenger appearing to put something in his mouth. Both Flowers and the passenger were ordered out of the vehicle. Flowers had been sitting on a .32 silver colored revolver, which the officer saw in plain view when Flowers exited the vehicle. The pistol was loaded with five live rounds and two spent shell casings. A records check revealed that Flowers had multiple felony convictions in Mississippi, Louisiana and Texas. Flowers also had outstanding warrants for his arrest. Officers recovered marijuana from Flowers’ pocket in addition to the loaded firearm.
Flowers was previously convicted in St. Bernard Parish, Louisiana, for attempted armed robbery; in Hinds County, Mississippi for possession of a firearm by a convicted felon; and in Guadalupe County, Texas for possession of a firearm by a convicted felon.
Flowers will be sentenced by U.S. District Judge Henry T. Wingate on November 22, 2019, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Jackson Police Department. It was prosecuted and tried by Assistant United States Attorneys David Fulcher and Chet Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, reentry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Inmate Will Serve Two More Months for Possessing Marijuana at Moshannon Valley Correctional FacilityRead the Press Release
JOHNSTOWN, Pa. – An inmate at Moshannon Valley Correctional Center in Philipsburg, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to two months in prison, consecutive to the current prison term he is serving, United States Attorney Scott W. Brady announced today.
Jose Juarez-Diaz, 34, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on August 25, 2018, Juarez-Diaz possessed a quantity of marijuana.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Moshannon Valley Correctional Center, Special Investigative Staff, Philipsburg, Pa., for the investigation leading to the successful prosecution of Juarez-Diaz.
Huntington Man Sentenced to 102 Months in Prison on Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – An armed methamphetamine trafficker was sentenced to 102 months in prison, announced United States Attorney Mike Stuart. Brandon Douglas Tomblin, 36, of Huntington, previously pled guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
“We don’t want armed meth dealers on our streets,” said United States Attorney Mike Stuart. “So we’re doing are best to put them behind bars for as long as possible.”
On July 29, 2018, an officer with the Huntington Police Department was on patrol along 15th Street in Huntington when he initiated a traffic stop on a vehicle driven by Tomblin for nearly hitting a parked car. Subsequent to Tomblin’s arrest, the officer located approximately 22 grams of a white crystal like substance believed to be methamphetamine. On August 4, 2018, an officer with the Huntington Police Department responded to 401 Bridge Street in Huntington for report of a suspicious person. The officer detained the individual who was identified as Tomblin, at which time the officer observed a gun nearby, specifically a .357 Sig Sauer pistol. The officer also located drugs on Tomblin’s person in an amount consistent with drug trafficking.
The Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Hudson Woman Sentenced to One Year and a Day for Mail Theft and Violation of Supervised ReleaseRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Angela A. Curtis, 33, of Hudson, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to four months and a day in prison and three years of supervised release for mail theft. She was also sentenced to a consecutive term of eight months in prison for violating the terms of supervised release imposed on her in 2012 following convictions for mail theft, bank fraud, access device fraud, and aggravated identity theft. She pleaded guilty to mail theft and admitted violating the terms of her supervised release on March 22, 2019.
Court records reveal that in June and July, 2018, Curtis stole mail from mail boxes in Glenburn, Hudson, Hampden, and Charleston, Maine. The mail that she stole included checks. She altered several of those checks to add her name but her theft was discovered before any of the checks were negotiated.
The investigation was conducted by the U.S. Postal Inspection Service and the Penobscot County Sheriff’s Office.
Guatemalan National Pleads Guilty and Is Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced day that CARLOS HUMBERTO CARRETO-ROMERO, age 29, pleaded guilty to a one-count bill of information for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) on August 13, 2019, and was sentenced that same day.
After accepting CARRETO’S guilty plea, Judge Jay C. Zainey sentenced CARRETO to time served and the payment of a $100 special assessment fee. CARRETO was then transferred to the United States Immigration and Customs Enforcement agency for deportation.
According to court documents signed by the defendants and filed in open court, CARRETO admitted to being a citizen of Guatemala, and being in the United States illegally. He further admitted re-entering the United States after being deported on August 8, 2008.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
* * *
Government settles alleged False Claims Act violations with Sesolinc GroupRead the Press Release
SAVANNAH, GA: The Sesolinc Group has agreed pay up to $2.4 million to settle allegations that they supplied defective products and submitted false claims to the Army, Department of Veterans Affairs and General Services Administration.
Based on the allegations of the unsealed complaint, Sesolinc is alleged to have violated the False Claims Act when it sold products to the United States that were not in compliance with required electrical and structural standards, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After concerns were raised internally, Sesolinc, which manufactures its products in Statesboro, Ga., is alleged to have continued to deliver defective products to government customers. As part of the settlement, Sesolinc has agreed to repair goods previously supplied to the United States and pay an additional penalty.
“If a contractor represents to the United States that it will provide products consistent with basic requirements of the government customers, this office will hold them to those promises,” said U.S. Attorney Christine. “We will continue to vigorously pursue any contractors who try to cut corners at the taxpayers’ expense.”
“This settlement sends a clear message that defective products sold to our military will not be tolerated,” said Special Agent in Charge Cynthia A. Bruce, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “The tireless efforts by DCIS and our investigative partners ensures that contractors are held accountable for the work they perform and the members of our military receive the proper resources to safely and effectively complete their mission.”
“This settlement serves as another reminder that attempting to defraud the government is a very bad idea,” said Frank Robey, director of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit. “Providing shoddy and unsafe conditions for our men and women in uniform to widen profit margins is a total disservice to our government.”
David Spilker, Special Agent in Charge of the Office of Inspector General for the Department of Veterans Affairs, stated, “The substituted, sub-standard, and defective products that veteran-owned Sesolinc Group provided to the VA put at risk critical infrastructure used to care for veterans during times of emergencies and natural disasters. The continued oversight of the companies who do business with VA, as shown in this investigation and subsequent settlement, safeguard the integrity of VA programs and funding.”
Special Agent in Charge Floyd Martinez of the Office of Inspector General of the General Services Administration (GSA OIG), said “Contractors cannot abuse the GSA contracting system to knowingly sell defective products to the federal government. GSA OIG will aggressively pursue those who abuse this process for their own gain. GSA OIG stands ready, with our federal law enforcement partners and the Department of Justice, to combat fraud, waste and abuse.”
The Defense Logistics Agency’s (DLA) Chief of Business Integrity and Procurement Fraud Prevention Program, B. Patrick Costello, Jr., said, “DLA, working in tandem with the Department of Justice, reached a settlement agreement in this matter with Sesolinc. This agreement resolves DLA’s claims against Sesolinc, which provided certain products that failed safety standards and put warfighters at risk. This agreement not only provides monetary relief to DLA, but more importantly will provide a mechanism to repair and make safe all deficient products that were delivered to DLA customers, including the U.S. Army. This agreement reflects DLA’s commitment to warfighters and the taxpayers, and reaffirms that DLA will hold contractors responsible for compliance with all applicable safety standards.”
This settlement resolves allegations that were originally part of a federal lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private citizens with knowledge of false claims to file suit on behalf of the government and to share in the recovery. The government would like to sincerely thank Charles Jackson in this case for bringing the issue to the government’s attention and his assistance with the investigation of this matter.
This case was investigated by Special Agent Lam Hoang with DCIS; Special Agent James Parkinson with Army CID; Special Agent Priva Guillory with U.S. Department of Veterans Affairs Office of Inspector General; and Special Agent Steven Heckler with GSA-OIG. The United States was represented by Assistant United States Attorneys Shannon Heath Statkus and J. Thomas Clarkson.
Former Treasurer of Brownsville Ambulance Service, Inc. Indicted on Fraud and Theft ChargesRead the Press Release
PITTSBURGH, PA – A resident of Newel, PA, has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and theft from a program receiving federal funds, United States Attorney Scott W. Brady announced today.
The 21-count Indictment, returned on Aug 13 and unsealed Friday, named Edward T. Stevenson, 62, as the sole defendant.
According to the Indictment, Stevenson was employed as the Treasurer of Brownsville Ambulance Service, Inc. (BAS), located in Brownsville, Pennsylvania, and from January 17, 2013 through March 22, 2017, without authorization, issued 132 checks totaling $136,140 from BAS’s checking accounts at First National Bank and PNC Bank, made payable to himself, to cash, and to his personal business, Lunden’s Flower Shop. The Indictment alleges that the checks were deposited to either Stevenson’s personal bank account or to one of two bank accounts he maintained on behalf of Lunden’s Flower Shop, and were issued in excess of his wages and for his personal benefit. The Indictment charges Stevenson with seven counts of mail fraud and 14 counts of theft from his employer, a not-for-profit business that annually received $10,000 or more in federal benefits through the Medicare and Medicaid programs.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 as to each count of conviction, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The defendant remains on bond pending the resolution of this case.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florissant Man Pleads Guilty to Possessing 322 Capsules of FentanylRead the Press Release
St. Louis –Ryan Easter, 27, of Florissant, MO, pleaded guilty to one felony count of possessing fentanyl. Easter appeared in federal court today before U.S. District Judge Henry E. Autrey who accepted his plea and set his sentencing date for November 11, 2019.
According to court documents, on February 28, 2018, Easter conducted a narcotics transaction. Easter was eventually stopped by law enforcement. Easter was in the possession of a loaded 45-caliber Glock firearm and a plastic bag containing 322 fentanyl capsules.
Easter faces a penalty of not more than 20 years in prison and a fine of not more than $1,000,000 or both. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The St. Louis Metropolitan Police Department and the Federal Bureau of Investigation investigated this case. Assistant United States Attorney Tom Mehan is handling the case.
Field of Schemes Fraud Results in over a Decade in Federal Prison for Leader of Largest Organic Fraud Case in U.S. HistoryRead the Press Release
A Missouri man who fraudulently sold millions of dollars’ worth of non-organic grain as though it was organic was sentenced on August 16, 2019, to more than ten years in prison in federal court in Cedar Rapids. Three farmers from Nebraska who supplied him with non-organic grain were also sentenced to federal prison for their roles in a scheme to defraud customers across the United States.
Randy Constant, age 61, from Chillicothe, Missouri, received the prison term after a December 20, 2018, guilty plea to one count of wire fraud. Constant admitted the fraudulent scheme involved at least $142,433,475 in grain sales, and the vast majority of those sales were fraudulent. At his plea hearing, he admitted that, from 2010 to 2017, he misled customers into thinking they were buying certified organic grain when the grain he was selling was not organic. Constant admitted falsely telling customers the grain he sold was grown on his certified organic fields in Nebraska and Missouri when the grain was not organic either because he purchased the grain from other growers, the certified organic fields were sprayed with unauthorized chemicals, or organic grain was mixed with non-organic grain. Constant made many of the sales through a brokerage he owned that operated in Ossian, Iowa, known as Jericho Solutions. As part of the plea, Constant also agreed to forfeit $128,190,128 in proceeds from the fraudulent scheme.
Evidence at Constant’s sentencing showed that, for 2016, his sales equaled approximately 7% of all comparable organic corn grown and 8% of all organic soybeans grown in the United States. Overall, from 2010 to 2017, Constant sold more than 11,500,000 bushels of grain, over 90% of which was falsely marketed as organic. That amount of grain would fill approximately 3,600 rail cars or 14,375 semi-trailers.
Constant’s grain was mostly used as animal feed, primarily for chickens and cattle. That livestock was then sold as organic meat or products from the livestock were sold as organic products. Because of Constant’s fraud, most of the livestock that was fed his grain was not organic, causing thousands of consumers to purchase what they thought was organic meat for a premium price across the country.
Further evidence at sentencing showed that, during the time Constant was fraudulently selling grain as organic, he was spending money on gambling trips to Las Vegas with at least one other person involved in the scheme. Between 2010 and 2017, Constant went to Las Vegas more than 20 times, paying for flights, hotels, gambling, and escorts. Evidence further showed he had sexual relationships with three women who lived in Las Vegas. Over the course of the seven year scheme, Constant gave over $225,000 to two of these women as payment for services, purportedly for their work with his companies. In reality, the women did very little of value for Constant’s companies in exchange for the money. Constant’s banking records also showed more than $360,000 in additional Las Vegas-related expenses during the course of the scheme -- $110,000 of that total was charged to a bank account Constant shared with one of the women and included payments for an automobile, insurance, foreign travel, and breast augmentation surgery.
In related matters, three farmers from Nebraska that previously pled guilty to fraud involving sales of grain to Constant they grew that was fraudulently marketed as organic were also sentenced. Tom Brennan, age 71, James Brennan, age 41, and Mike Potter, age 42, all from near Overton, Nebraska, were each sentenced to federal prison after having pled guilty to one count of wire fraud.
At their respective plea hearings, each man admitted to growing grain between 2010 and 2017 that was not organic, often because they had sprayed the grain with chemicals. Each further admitted that they knew the grain was being marketed and sold as organic, even though it was not in fact organically grown. Evidence at sentencing showed the three farmers worked together to produce and sell the grain to Constant. Evidence further showed that, between the three farmers, they received more than $10,000,000 from Constant in connection with the scheme and that the majority of the grain they sold to Constant was not organic.
All four men were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Constant was sentenced to 122 months’ imprisonment. He was also ordered to forfeit over $120 million in proceeds from his crime. In sentencing Constant, Judge Williams called the scheme a “massive fraud, perpetrated on consumers over a long period of time” and said that Constant “caused incalculable damage.”
James Brennan was sentenced to 20 months’ imprisonment. Potter was sentenced to 24 months’ imprisonment. Tom Brennan, whom the sentencing judge referred to as a “legitimate war hero” for his service in Vietnam, was sentenced to 3 months’ imprisonment. Each of the Nebraska farmers was also ordered to forfeit $1 million in proceeds from their crimes.
“Randy Constant and his co-conspirators lied to the American public and cheated thousands of consumers,” said United States Attorney Peter E. Deegan, Jr. “For years, Constant put personal greed and self-interest above all else. In doing so, he and his cohorts victimized thousands of people who were deceived into paying more for a product that they ultimately did not get. They also diluted the organic grain market to the financial disadvantage of organic farmers who were following the law. I want to commend the USDA Office of Inspector General and the Federal Bureau of Investigation for their work in bringing this matter to light. They demonstrated hard work and dedication to protecting the organic food market and American consumers.”
“This prosecution places would-be fraudsters on notice. The government has zero tolerance for individuals who might seek to defraud American consumers by criminally manipulating National Organic Program standards,” said Special Agent-in-Charge Anthony Mohatt of the US Department of Agriculture Office of Inspector General. “It should also serve as a warning to everyone growing, certifying, distributing, and selling organically certified products. Fraud will be vigorously investigated and prosecuted by the USDA Office of Inspector General, the U.S. Attorney's Office, and all its federal, state, and local partners. USDA's Office of Inspector General is committed to ensuring fraud is eliminated from the National Organic Program so that consumers can have confidence in the USDA organic products they put on the table. The USDA Office of Inspector General applauds the steadfastness and resolution of the U.S. Attorney's Office in prosecuting this matter. We also appreciate the investigative assistance of the Federal Bureau of Investigation and USDA's Agricultural Marketing Service.”
“Organic agriculture is a fast growing sector in U.S. agriculture, creating jobs and promoting economic growth. This rapid growth has increased the complexity of supply chains that carry organic products from farm to table,” said National Organic Program Deputy Administrator Jennifer Tucker. Organic farmers and consumers are the foundation of this $52 billion sector. We are committed to helping good producers meet the standards, and to enforcing against those who break the law. The work of the U.S. Attorney’s Office in this case, and others, has a profound and lasting impact.”
“We are proud to work alongside our law enforcement partners to bring to justice individuals who have so blatantly betrayed the trust of consumers,” said Acting Special Agent in Charge Mark Green of the Federal Bureau of Investigation.
Anyone with information about others involved in the scheme should contact our office, the United States Department of Agriculture’s Office of Inspector General, or the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Jacob Schunk and Anthony Morfitt and investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number are 18-CR-2034, 18-CR-2058, 18-CR-2059, and 18-CR-2060. Follow us on Twitter @USAO_NDIA.
Felon Sentenced to over 14 Years in Prison for Unlawful Possession of Firearms Including a Stolen High Capacity RifleRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man with a prior felony conviction was sentenced today to 14 years and six months in federal prison for unlawful possession of numerous firearms, including a stolen semi-automatic firearm capable of accepting a large capacity magazine, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Following a FBI investigation, Robert Aron Irwin, 35, was indicted and pleaded guilty in January 2019, to one count of felon in possession of a firearm and one count of conspiracy to distribute methamphetamine. In addition to the prison term, United States Chief District Judge Jennifer A. Dorsey sentenced Irwin to five years of supervised release.
According to court documents, in August 2017, Irwin possessed a Sig Sauer 5.56 NATO rifle that is capable of accepting a large capacity magazine and had previously been reported stolen; two .22 caliber rifles; a .30-06 caliber firearm; a .375 H&H mag. caliber firearm; a .45/70 caliber firearm; a M44 Russian rifle 7.62 x 54R; a 5.56 NATO firearm; and a 30/30 Winchester firearm. Furthermore, that same month, Irwin conspired with others to sell at least 150 grams of methamphetamine.
###
Feds Charge Three in Relation to Meth Distribution at Keeton Corrections in PaducahRead the Press Release
PADUCAH, Ky. – Three men with ties to a Paducah halfway house have been charged by a Federal Grand Jury sitting in Paducah last week with possession with intent to distribute and distribution of methamphetamine and other charges, announced United States Attorney Russell Coleman.
“We promised that the feds would be more relevant in protecting folks in the Purchase Region” said U.S. Attorney Russell Coleman. “This investigation is a prime example of that, with state and federal partners working together to tackle a very real threat to this community. Paducah should be very proud of the fine work of its police department and Commonwealth’s Attorney.”
DeAnthony Woods, 32, of Paducah; Ralph Gaines Jr., 31, of Paducah; and David Jones, 27, of Madisonville, have all been charged by the grand jury for conspiracy to distribute methamphetamine, possession with intent to distribute and distribution of methamphetamine. According to the indictment, between April 12, 2019, and May 28, 2019, Woods, Jones, and Gaines Jr. knowingly and intentionally possessed with intent distribute and distributed 50 grams or more of a mixture of a substance with a detectable amount of methamphetamine.
Gaines Jr., is also charged with possession with intent to distribute methamphetamine, use/carry of a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm. Gaines Jr. has a previous felony conviction in state court for two counts of first-degree trafficking cocaine in 2016 and another prior felony conviction for four counts of first degree trafficking cocaine in 2008.
The federal charges come on the heels of a two-month investigation by the Paducah Police Department into drug trafficking at Keeton Corrections. The Paducah Police Department charged eight people on charges of trafficking methamphetamine and/or trafficking in synthetic drugs in state court, and detectives recovered more than one quarter pound of meth during the course of the investigation. The United States Attorney’s Office worked in close coordination with investigators and the Commonwealth’s Attorney to bring charges against the three men listed in the federal indictment.
Woods, Gaines and Jones face no less than 5 years and a maximum sentence of 40 years (in prison) for conspiracy to possess with intent to distribute methamphetamine. Gaines faces no more than 20 years for possession with intent to distribute meth, no less than 5 years for use/carry firearm during and in relation to drug trafficking crime and no more than 10 years for being a felon in possession of a firearm.
This case is being prosecuted by Assistant United States Attorney Leigh Ann Dycus, and is being investigated by the Paducah Police Department and the Kentucky Department of Corrections, Division of Probation and Parole, in cooperation with the Office of McCracken Commonwealth’s Attorney Dan Boaz.
####
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
Federal Charges Filed Against Chicago Man Who Allegedly Posted Online Threats of Violence at Women’s Reproductive ClinicRead the Press Release
CHICAGO — A Chicago man has been arrested on federal criminal charges for allegedly threatening to commit violence at a women’s reproductive health clinic.
FARHAN SHEIKH, 19, is charged with transmitting a threat in interstate commerce. Sheikh was arrested Friday night and made an initial court appearance this morning before U.S. Magistrate Judge Susan E. Cox. Judge Cox ordered Sheikh to remain in custody pending a detention hearing set for Tuesday at 2:30 p.m.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The case was investigated by the FBI’s Joint Terrorism Task Force. The U.S. Marshals Service and the Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Jordan M. Matthews.
Sheikh posted the threating communications on or about Aug. 13, 2019, on the social media platform iFunny, according to a criminal complaint and affidavit filed Saturday in U.S. District Court in Chicago. In one of the posts, Sheikh allegedly stated, “I am done with my state and their (sic) [expletive] abortion laws and allowing innocrnt (sic) kids to be slaughtered for the so called ‘womans right’ [expletive].” According to the complaint, Sheikh wrote later in the post that he would visit the clinic on Aug. 23, 2019, and “proceed to slaughter and murder any doctor, patient, or visitor I see in the area and I will not back down. consider this a warning for anyone visiting…”
Sheikh also wrote that his iFunny account is “NOT a satirical account. I post what I mean, and i WILL carry out what I post,” according to the complaint.
The charge in the complaint is punishable by a maximum sentence of five years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Dubuque Man Sentenced to 22 Years for Sexually Exploiting a Child and Conspiring to Distribute Ice MethamphetamineRead the Press Release
A man who sexually exploited a child, conspired to distribute ice methamphetamine, and distributed ice methamphetamine was sentenced today to 22 years in federal prison.
Christopher Frommelt, age 43, of Dubuque, Iowa, received the sentence after a February 22, 2019, jury verdict finding him guilty of one count of sexual exploitation of a child, one count of conspiracy to distribute methamphetamine, one count of distribution of a controlled substance to a person under 21 and near a protected location, and one count of distribution of methamphetamine on premises where a person under 18 was present.
The evidence at trial showed that, in January 2018, Frommelt provided ice methamphetamine to a 16-year-old girl and videotaped himself having sex with her. The evidence also showed that Frommelt conspired with others to distribute ice methamphetamine. He provided a rental car and over $2,600 for others to obtain ice methamphetamine in Texas.
Frommelt was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Frommelt was sentenced to 264 months’ imprisonment. A special assessment of $5,400 was imposed, and Frommelt must also serve a 6-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department, the Dubuque Drug Task Force, the Dubuque County Sheriff’s Office, the Iowa State Patrol, the Iowa Division of Narcotics Enforcement, the Federal Bureau of Investigation, the Cascade Police Department, and the Dyersville Police Department.
This case 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.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 18-1037.
Follow us on Twitter @USAO_NDIA.
Delaware Businessman Sentenced to Federal Prison in Multi-Million Dollar Ponzi SchemeRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that Carl Chen, owner of Chenmax Properties, Inc., a Delaware Real Estate Investment Trust, and part-owner of Re/Max Sunvest Realty Co., was sentenced today in federal court in Delaware to 51 months in prison. Chen pled guilty in March 2019 to wire fraud emanating out of a multi-year Ponzi scheme he orchestrated.
According to court documents and statements made at the hearing, Chen operated Chenmax Properties since 1997, soliciting large real estate investments from his real-estate clients and others. Chen promised his investors guaranteed interest and a full return of their principal payments. However, by 2013, Chen’s business was losing money, and Chen began diverting newly invested funds to pay prior investors.
The government calculated that Chen fraudulently collected at least $3.32 million in investments from twenty different victims between 2013 and 2017. In October 2017, Chen declared bankruptcy in the United States Bankruptcy Court for the District of Delaware, seeking to discharge $6.738 million of debt he owed to investors, including the victims of his fraud.
United States District Judge Richard G. Andrews, who sentenced Chen, noted that the case was “One of the most horrendous white collar offenses that I remember seeing.”
Victims at the sentencing hearing described how Chen solicited hundreds of thousands of dollars in investments from them on multiple occasions, claiming that the investments were for real estate ventures. In actuality, the money investors paid Chen was immediately used to pay off other investors or for Chen’s personal expenses.
U.S. Attorney Weiss commented that “Chen brazenly defrauded innocent Delaware residents, and others, who believed his promises and trusted him to handle their financial security. While this sentence cannot repair the breach of trust, it sends a strong message that my office will prosecute these fraud crimes and seek substantial prison terms for anyone who, like Chen, carries out a large-scale fraud against unsuspecting victims.”
"The effects of this type of fraud can be devastating to the victims. As a result of this scheme, several hardworking people were victimized and lost significant amounts of their life savings," said Jennifer Boone, Special Agent in Charge of the FBI Baltimore Office. "The FBI in Delaware and our partners will continue to vigorously investigate these crimes and hold accountable anyone who takes advantage of unsuspecting victims in order to enrich themselves."
This case was investigated by the FBI Baltimore Division’s Wilmington Office and the Office of the U.S. Trustee and was prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim and Special Assistant U.S. Attorney Hannah McCollum.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:19-cr-00015.
Dark Web Vendor Sentenced to 70 months for Internet Distribution of Deadly Carfentanil, Fentanyl, and Other DrugsRead the Press Release
NEWS RELEASE SUMMARY – August 19, 2019
SAN DIEGO – Today in federal court Sky Justin Gornik, age 39, of San Diego was sentenced by District Court Judge Anthony J. Battaglia to 70 months in prison for participating in a conspiracy to deliver, distribute and dispense controlled substances through the internet, in violation of Title 21, United States Code, Sections 841(h), 841(b)(1)(A), and 846. Gornik previously pled guilty to that charge and also admitted that he engaged in a conspiracy to launder drug proceeds using digital currencies, in violation of Title 21, United States Code, Sections 1956(a)(1)(A)(i) and 1956(h). As part of his guilty plea, Gornik admitted that from 2014 to June 7, 2017 (the date of his arrest by federal authorities), he bought and sold controlled substances on the Dark Web. Employing anonymous screen names, Gornik used multiple Dark Web marketplaces (including Alpha Bay, Trade Route, Abraxas, Evolution, Outlaw Market, and Dream Market) to buy and sell controlled substances. Specifically, Gornik admitted that he purchased and sold fentanyl and purchased the especially deadly opiate carfentanil using a variety of digital currencies. Gornik also purchased and sold multiple other controlled substances, including thousands of vials of ketamine, oxycodone pills, Dimethyltryptamine (DMT), Psilocybin and Psilocin, Amphetamine, Buprenorphine, Methamphetamine, and Naloxone.
According to court documents, agents seized 1.7 grams of carfentanil inside Gornik’s residence on June 7, 2017. Carfentanil is a synthetic opioid approximately 10,000 more potent than morphine and 100 times more potent than fentanyl. The 1.722 grams of carfentanil seized in Gornik’s residence could equate to over 86,000 fatal dosages. Gornik also possessed sheets of fentanyl gelatin tablets (approximately 100 tabs per sheet), which agents seized during the search. The public record reflects that Gornik obtained 600-1200 fentanyl gel tablets each week for approximately two years from a Dark Web vendor, identified as Steven Wallace George, who resides in Oklahoma. George, who manufactured pure fentanyl obtained from China into gelatin tablets, was prosecuted by federal authorities in Oklahoma (see Case No. 17-090-R, Western District of Oklahoma).
As part of his guilty plea, Gornik agreed to forfeit millions of dollars in digital or crypto currency including Bitcoins, Stratis, Ethereum, 2350 Monero, digital currency contained in Gornik’s Bittrex accounts, and digital currency contained in Gornik’s Poloniex accounts. Gornik admitted that these digital or crypto currency represented drug trafficking proceeds of the offense and were involved in the offense of money laundering over the Dark Web.
“Dark Web traffickers take note: we will not allow you to lurk in murky corners of the internet, selling and delivering deadly drugs as casually as an Amazon Prime package,” said U.S. Attorney Robert S. Brewer, Jr., who commended AUSA Sherri Hobson and the multi-agency team for “cracking through multiple levels of anonymity mazes to uncover the true nature and extent of Gornik’s drug dealing and money laundering.”
"Battling opioids in the mail is one of the Postal Inspection Service's highest priorities. By working closely with our law enforcement partners in operations such as this, we can stop drugs and violence from reaching the American public," said Nichole Cooper, Inspector in Charge of the Los Angeles Division.
“Today’s sentencing of Gornik demonstrates the commitment of Homeland Security Investigations (HSI) and our federal partners to bring these criminals to justice,” said Juan Munoz, Acting Special Agent in Charge of HSI in San Diego. “HSI will continue to aggressively pursue those that continue to violate the law and jeopardize the safety of our communities by selling deadly opioids and other dangerous drugs via the Dark Web.”
The investigation was led by U.S. Postal Inspectors in San Diego with the assistance of Special Agents of Homeland Security Investigations.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Criminal Case No.17CR2796AJB
Sky Justin Gornik Age: 39 San Diego, California
SUMMARY OF CHARGES
Count 1 (Conspiracy to Deliver, Dispense, and Distribute Controlled Substances By Internet)
Maximum penalty: 10 year minimum mandatory to life, fine of $1,000,000, 5 years of supervised release
Count 2 (Conspiracy To Launder Money)
Maximum penalty: 20 years; fine of $500,000, 3 years of supervised release
Criminal Forfeiture As To Count 1
Forfeiture to the United States of all property, real and personal, that constitutes or is derived from proceeds of the offense, and all property, real and personal, that was used to commit or to facilitate the commission of the offense.
Criminal Forfeiture As To Count 2
Forfeiture to the United States of all property, real and personal, involved in the offense.
AGENCIES
United States Postal Inspection Service, San Diego
United States Postal Inspection Services, Cyber Unit, Washington D.C.
United States Postal Inspection Service, Oklahoma
Homeland Security Investigations
Internal Revenue Service, Criminal Investigations
San Diego Police Department
San Diego District Attorney’s Office
U.S. Department of Justice, Criminal Division, Money Laundering & Asset Recovery Section
Dallas County Man Sentenced to 30 Months for Possession of a Firearm after Conviction of a FelonyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Jarvis Moss, a 38 year old resident of Selma, Alabama was sentenced to 30 months of incarceration for possession of a Smith & Wesson, .38 caliber pistol.
On May 30, 2019, Moss pled guilty and admitted in Court that on July 29, 2018, a Selma, Alabama police officer initiated a traffic stop on a Camaro being driven by Moss for no tag displayed. As the officer approached Moss, he could smell a strong odor of marijuana coming from inside his vehicle. The officer then asked Moss if he had illegal drugs inside the vehicle. Moss responded by reaching into his left pocket and pulling out a small quantity of marijuana that he then gave to the officer. Next, the officer asked Moss if he had any weapons inside the vehicle. Moss responded saying that there was a gun and that he did not have a permit for it. The officer asked Moss to exit the vehicle and he did. Moss then told the officer that the firearm was in his front right pocket. The firearm is described as a Smith & Wesson, .38 caliber revolver. Moss was then arrested.
At that time, Moss had been convicted of at least three felonies, namely, Resistance to Official Search on April 16, 2010, in the United States District Court for the Southern District of Alabama, case number CR 09-00136-001; Unlawful Possession of a Controlled Substance; Attempt – Trafficking Cocaine on May 18, 2010, in the Circuit Court of Dallas County, Alabama, case number CC-09-163.
Officers of the Selma, AL Police Department and special agents of the ATF investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Connecticut Resident Admits Arranging Fraudulent Marriages so Individuals Would Receive Green CardsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Jason J. Molina, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, and Christopher W. Fonda, Supervisory Immigration Officer for U.S. Citizenship and Immigration Services, Office of Fraud Detection and National Security, announced that JODIAN STEPHENSON, also known as “Jodian Gordon,” 35, of Bridgeport, pleaded guilty today in New Haven federal court to a conspiracy charge stemming from her arrangement of numerous fraudulent marriages so that non-U.S. citizens would receive U.S. immigration benefits.
According to court documents and statements made in court, Stephenson operated Stephenson Immigration and Legal Services, LLC, in Bridgeport. Between 2011 and 2017, Stephenson conspired with others to arrange 28 sham marriages between U.S. citizens and non-citizens residing in the U.S. for the purpose of the non-citizens’ applying for and obtaining “lawful permanent residence” (“LPR”) status, also known as a “green card.”
One of the 28 sham marriages was between Stephenson, who is a citizen of Jamaica, and a U.S. citizen.
For each of the other 27 fraudulent marriages, Stephenson found and introduced a U.S. citizen to be the non-citizen’s purported spouse and helped the couple obtain a marriage license. She also organized the marriage ceremony and celebration, and coached the couple on how to make their marriage appear to be genuine despite their neither living together nor otherwise intending to remain actually married.
As part of the scheme, Stephenson prepared several immigration documents needed as part of the non-citizen’s LPR application. She had the applicant and spouse sign the documents and, in many cases, mailed the documents to the U.S. Citizenship and Immigration Service immigration authorities for the applicant. In some cases, Stephenson or her assistants prepared other false documents for the couple, such as a false lease that portrayed the couple as living together.
Stephenson typically charged between $17,000 and $20,000 to complete this process for a non-citizen, and the citizen spouse received between $2,000 and $4,000 for his or her participation.
During the investigation, Stephenson offered to arrange a sham marriage for a federal law enforcement agent working in an undercover capacity, and help obtain a green card for the undercover agent, in exchange for a proposed fee of $20,000. In recorded conversations, Stephenson then introduced the undercover agent to a U.S. citizen and advised them about the ways they could create the appearance that they were validly married and living together as husband and wife.
Stephenson pleaded guilty to one count of conspiracy to commit immigration marriage fraud. She faces a maximum term of imprisonment of five years when she is sentenced by U.S. District Judge Michael P. Shea in Hartford. A sentencing date is not scheduled.
Stephenson has been released on a $250,000 bond since her arrest on June 22, 2018.
Six other individuals involved in this scheme previously pleaded guilty.
On December 5, 2018, Donovan Lawrence, of Milford, who operated Donovans Accounting Services, LLC, in Bridgeport, pleaded guilty to his role in this conspiracy. In addition, four U.S. citizens who entered into one or more fraudulent marriages with non-citizens, and one non-citizen who entered into a fraudulent marriage with a U.S. citizen, pleaded guilty. All await sentencing.
This investigation is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.