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19 August 2019
Commercial Flooring Contractor Agrees to Plead Guilty to Antitrust ChargeRead the Press Release
PCI FlorTech Inc., an Illinois-based commercial flooring contractor, has been charged for its role in a long-running conspiracy to rig bids and fix prices for commercial flooring services and products sold in the United States, the Department of Justice announced today.
PCI FlorTech has agreed to plead guilty and pay a $150,000 criminal fine for its role in the conspiracy and to cooperate in the Division’s ongoing investigation. PCI FlorTech’s charge follows the guilty plea of a former vice president of another commercial flooring contractor.
According to a one-count felony charge filed today in U.S. District Court for the Northern District of Illinois in Chicago, PCI FlorTech engaged in a conspiracy to suppress and eliminate competition in the commercial flooring market by submitting complementary bids to ensure that the designated company would win the bidding. PCI FlorTech participated in the conspiracy from at least as early as 2009 until at least June 2017.
“Today marks the first charge brought against a corporation for rigging bids and undermining the competitive process that consumers—including schools and charities—depend upon to get a competitive price for flooring,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “We will continue to investigate and prosecute contractors and their executives who cheat in the bidding process.”
“PCI FlorTech illegally conspired to elevate bid prices, ultimately cheating the public out of the competitive pricing necessary to complete construction projects,” said Special Agent in Charge Jeffrey S. Sallet, FBI Chicago. “This charge demonstrates that the FBI is committed to working with its government partners to hold contractors accountable when they attempt to profit at their community’s expense.”
A violation of the Sherman Act carries maximum penalties of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into bid rigging, price fixing, and other anticompetitive conduct in the commercial flooring industry, conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Division.
Anyone with information on bid rigging, price fixing, or other anticompetitive conduct related to the commercial flooring industry should contact the Antitrust Division’s Chicago Office at 312-984-7200 or visit https://www.justice.gov/atr/contact/newcase.html.
Buffalo Man Sentenced on Illegal Gun Possession ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Errick Roseboro, 26 of Buffalo, NY, who was convicted of being a person prohibited from possessing a firearm, was sentenced to serve 12 months and one day in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Charles J. Volkert, Jr., who is handling the case, stated that on October 21, 2018, the Buffalo Police Department stopped the defendant’s vehicle for a traffic infraction. Officers found Roseboro unlawfully to be in possession of a loaded firearm and marijuana. Subsequent investigation determined that that the defendant was a habitual user of the controlled substance, and as such, he is prohibited from possessing a firearm.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Boyle County Man Convicted of Production of Child Pornography and Distribution of MethamphetamineRead the Press Release
LEXINGTON, Ky. – Richard Eugene Derringer, 47, previously of Junction City, Kentucky was convicted by a jury, following a three-day trial, on Thursday, before Senior United States District Judge Joseph M. Hood. Derringer was found guilty of using a minor to engage in sexually explicit conduct, for the purpose of producing child pornography; conspiracy to use a minor to engage in sexually explicit conduct, for the purpose of producing child pornography; possession of child pornography; and distribution of methamphetamine. Derringer was acquitted of one count of attempted distribution of child pornography.
According to the evidence at trial, Jacquolyn Walls-Land, who previously pleaded guilty to one count of using a minor to engage in sexually explicit conduct for the purpose of producing child pornography, took videos of the minor female victim while Derringer sexually abused the victim. The sexual abuse, and recording of it, occurred on March 11, 2018. The evidence established that Derringer forced the minor victim to smoke methamphetamine with him, on multiple occasions, during an approximate 3-hour period while the sexual abuse occurred. Derringer even took hits of the methamphetamine himself and then exhaled into the minor victim’s mouth. The minor victim reported the sexual abuse and forced drug use to her mother, approximately 8 hours after the abuse ended, and the minor victim was taken to a local hospital, where she tested positive for methamphetamine.
Derringer is scheduled to be sentenced on November 25, 2019. He faces a mandatory minimum sentence of fifteen years in prison, and up to 30 years, on each of the conspiracy and production counts, up to 10 years on the possession of the visual depictions of the minor engaging in sexually explicit conduct, and not more than 20 years for the distribution of methamphetamine. He also faces fines of not more than $250,000 on the production-related offenses and $2,000,000 on the distribution of methamphetamine conviction. Additionally, he faces a mandatory minimum of five years, and up to life, of supervised release, following the service of his prison sentence. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky: James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Richard Sanders, Commissioner, Kentucky State Police, jointly announced the jury’s verdict.
The investigation was conducted by the FBI and Kentucky State Police. Assistant U.S. Attorneys David Marye and Mary Melton represented the United States.
Attorney General William P. Barr Appoints New Leadership Team at the Bureau of PrisonsRead the Press Release
Attorney General William P. Barr today announced he will appoint Dr. Kathleen Hawk Sawyer as the Director of the Federal Bureau of Prisons (BOP) and Dr. Thomas R. Kane as the Deputy Director of the Federal Bureau of Prisons (BOP). Dr. Hawk Sawyer previously served as Director of BOP from 1992 – 2003.
“I am pleased to welcome back Dr. Hawk Sawyer as the Director of the Federal Bureau of Prisons. Under Dr. Hawk Sawyer’s previous tenure at the Bureau, she led the agency with excellence, innovation, and efficiency, receiving numerous awards for her outstanding leadership, “ said Attorney General Barr. “I am also pleased to announce Dr. Thomas R. Kane as the Deputy Director of BOP. Dr. Kane served in the Bureau for over thirty years under four Attorneys General and is known for his expertise and proficiency in prison management and organization. During this critical juncture, I am confident Dr. Hawk Sawyer and Dr. Kane will lead BOP with the competence, skill, and resourcefulness they have embodied throughout their government careers. I would also like to thank Hugh Hurwitz, Acting Director of BOP, for his dedication and service to the Bureau over the last fifteen months. I have asked Mr. Hurwitz to return to his responsibilities as Assistant Director of BOP’s Reentry Services Division, where he will work closely with me in overseeing the implementation of one of the Department’s highest priorities, the First Step Act.”
Dr. Kathleen Hawk Sawyer began her Bureau of Prisons career in 1976 as a psychologist at the Federal Correctional Institution (FCI) in Morgantown, West Virginia, and subsequently held positions of increasing responsibility as Chief of Psychology Services at Morgantown; Senior Instructor at the Bureau of Prisons' Staff Training Academy (STA) in Glynco, Georgia; Associate Warden at FCI Fort Worth, Texas; the Bureau's Chief of Staff Training at STA; and Warden at FCI Butner, North Carolina. In May 1989, she was selected as Assistant Director for the Program Review Division, where she was responsible for developing and implementing a system of internal controls for all Bureau operations. In 1992, Attorney General Barr appointed Dr. Hawk Sawyer as Director of BOP. While serving as Director for over a decade, she introduced the Forward Thinking Initiative, which was designed to prepare the agency to meet future demands and conditions. Additionally, she implemented reengineering initiatives intended to identify and eliminate unnecessary or redundant functions in order to maximize staff attention to inmates and yield agency-wide cost savings. While Director, Dr. Hawk Sawyer received numerous awards for service and leadership, including the Attorney General's Award for Excellence in Management in 1992, the Presidential Rank Award for Meritorious Service in 1994 and 2000, and the Presidential Distinguished Executive Award in 1997. She served as Director until she retired in 2003.
Dr. Thomas R. Kane served in the Bureau of Prisons from 1977 to 2018, including 30 years in multiple senior leadership positions such as Chief of Staff, Assistant Director, Deputy Director, and Acting Director under four Attorneys General. While at BOP, he provided long-term leadership for the enhancement of processes to assess prisoner risk level and need for treatment, as well as the BOP business process by reengineering initiatives resulting in significant organizational cost efficiencies and process improvement. Additionally, he served as a member of the FBI Advisory Policy Board for Criminal Justice Information Services, the District of Columbia Sentencing Commission, and the BOP Health Services Governing Board. Dr. Kane received numerous awards and other recognition throughout his career, including the Attorney General’s Medallion, two Meritorious Presidential Rank Awards, and the BOP Distinguished Service Medal. Dr. Kane also serves as a member of the American Psychological Association and the American Correctional Association.
Armed Fentanyl Dealer Sentenced to Six Years in PrisonRead the Press Release
PROVIDENCE – A Central Falls fentanyl street dealer who claimed he armed himself with a loaded firearm for “protection” was sentenced on Friday to 72 months in federal prison.
On at least three occasions in late January 2018, Dennis Rivera, 32, sold an individual varying amounts of fentanyl during a Central Falls Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) joint Project Safe Neighborhoods investigation into Rivera’s drug trafficking activities.
Rivera was arrested on February 3, 2018, as law enforcement executed a court-authorized search of his residence and seized, among other items, a loaded 22 caliber revolver, 11 grams of cocaine, 21 grams of fentanyl, and various items used in the packaging and distribution of drugs. Rivera told law enforcement that he kept the loaded gun for “protection.”
United States Attorney Aaron Weisman commented, “Selling fentanyl poisons our neighborhoods and puts drug users lives at risk. Having a gun ‘for protection’ puts everyone in the neighborhood at risk. The defendant’s six-year sentence should sound a warning to others that law enforcement and prosecutors will not tolerate drug dealers poisoning our neighborhoods, particularly armed drug dealers who put everyone’s life in danger.”
Rivera pleaded guilty on April 9, 2019, to possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking, and two counts felon in possession of a firearm.
At the time of his arrest, Rivera was awaiting trial in Rhode Island state court on an unrelated firearm charge. Rivera was arrested by Central Falls Police in June 2017 following an altercation with another person. As officers approached the two men, Rivera stashed a semi-automatic pistol near the bumper of a nearby car, then quickly walked away. The firearm was retrieved by police and Rivera was found hiding in the bathroom of a stranger’s apartment nearby.
Additionally, Rivera had previously been convicted of drug trafficking in Massachusetts.
At sentencing, U.S. District Court Chief Judge William E. Smith sentenced River to 72 months in federal prison to be followed by 3 years of supervised release.
Central Falls Police Chief Colonel Daniel J. Barzykowski commented, “We will continue to work with our local, state and federal partners to ensure offenders that poison our communities, like Rivera, are removed from the streets.”
Special Agent in Charge of the Boston Division of ATF Kelly D. Brady added, “ATF will continue to work with our local, state and federal law enforcement counterparts to vigorously combat drug traffickers and the threat they pose to our citizens by illegally possessing firearms in furtherance of their illegal drug trade.”
The case was prosecuted by Assistant U.S. Attorneys Ronald R. Gendron and Ly T. Chin.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Armed Career Criminal Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Jessie Anthony Parker, 36, of Mobile, Alabama, was sentenced today in federal court in Mobile after his conviction resulting from a jury trial conducted in January of 2019. Parker was convicted on two counts of possession with intent to distribute marijuana and cocaine, and felon in possession of a firearm. Parker has three prior felony convictions in Mobile County Circuit Court for possession of marijuana for other than personal use, and a prior conviction in federal court in Mobile for using, carrying and possessing a firearm during and in relation to a drug trafficking felony. Because his prior criminal convictions qualified him as an armed career criminal under the United States Sentencing Guidelines, Parker’s advisory guideline range was 360 months to life.
United States District Court Judge Terry F. Moorer imposed a sentence of 360 months imprisonment, consisting of 120 months on the marijuana count, and 360 months on each of the remaining counts, with all sentences running concurrent. Judge Moorer also ordered that Parker will serve a total of 5 years on supervised release, following his release from imprisonment. He ordered that Parker will pay $300 in special mandatory assessments, but no fine was imposed. Parker will also undergo testing and treatment for drug abuse as a separate condition of his supervision.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
18 August 2019
Sioux Falls Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 8, 2019, by U.S. District Judge Karen E. Schreier.
Michael Anthony Williams, age 35, was sentenced to 188 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Williams was indicted by a federal grand jury on November 6, 2018. He pled guilty on May 8, 2019.
The conviction stemmed from incidents beginning on an unknown date and continuing through November 6, 2018, when Williams, along with at least one other person, knowingly reached an agreement to distribute 500 grams or more of a mixture containing methamphetamine in the District of South Dakota. Methamphetamine is a Scheduled II controlled substance.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Williams was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 12, 2019, by U.S. District Judge Karen E. Schreier.
Jacob Macias Cabrera, age 35, was sentenced to 151 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Cabrera was indicted by a federal grand jury on January 8, 2013. He pled guilty on May 17, 2019.
The conviction stemmed from an incident beginning around October 2011, and until around October 2012, when Cabrera knowingly and intentionally combined, conspired, confederated, and agreed with others, to distribute 500 grams or more of methamphetamine in the state of South Dakota.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney John E. Haak prosecuted the case.
Cabrera was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Seven Years for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Samuel Patrick O’Rourke, age 37, was sentenced on August 9, 2019, to 7 years in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
O’Rourke was indicted by a federal grand jury in November 2018. The charge related to O’Rourke, and at least one other person, distributing at least 50 grams, but less than 200 grams, of methamphetamine in the District of South Dakota, primarily out of his home on the Pine Ridge Indian Reservation, and elsewhere, between 2016 and 2018.
This case was investigated by the Federal Bureau of Investigation, the Northern Plains Safe Trails Drug Task Force, and the Bureau of Indian Affairs. Assistant U.S. Attorney Gina Nelson prosecuted the case.
O’Rourke was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael High Elk, age 30, was sentenced on August 9, 2019, to 5 years and 11 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to High Elk, a previously convicted felon prohibited from possessing firearms, knowingly possessing a Jimenez Arms, model U.A. 380, .380 caliber semi-automatic pistol, which was found in High Elk’s car after he led police on a high-speed chase in Rapid City on January 30, 2019.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
High Elk was immediately turned over to the custody of the U.S. Marshals Service.
Pine Ridge Man Charged with Sexual Abuse and StrangulationRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse and Assault by Strangulation and Suffocation.
Jeremiah White Wash, age 27, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction for the Aggravated Sexual Abuse charge is any term of years up to life in prison, a mandatory minimum term of 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to White Wash and another man sexually assaulting a female on May 1, 2018, at Pine Ridge. White Wash also assaulted the same individual, who was his dating partner, by strangling her in April 2018.
The charges are merely accusations and White Wash is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
White Wash was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Ohio Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Port Clinton, Ohio, man convicted of Attempted Receipt of Child Pornography was sentenced on August 12, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Adam Myosky, age 40, was sentenced to 6 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Myosky was one of seven men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2018 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with minors obtained through the Internet. The conviction stemmed from Myosky communicating with someone he believed to be a 15-year-old girl, but who was in fact an undercover agent, for the purpose of arranging a meeting to engage in sexual acts with the minor.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Myosky was immediately remanded to the custody of the U.S. Marshals Service.
Nebraska Man Sentenced to Five Years for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Columbus, Nebraska, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Christopher Ivory Hawkins, age 25, was sentenced on August 9, 2019, to 5 years in federal prison, followed by 4 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Hawkins was indicted by a federal grand jury in May 2018. The charge related to Hawkins, and at least one other person, distributing more than 350 grams of methamphetamine in the District of South Dakota and elsewhere between 2014 and 2018.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Northern Plains Safe Trails Drug Task Force. Assistant U.S. Attorney Gina Nelson prosecuted the case.
Hawkins was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Criminal ContemptRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Criminal Contempt was sentenced on August 16, 2019, by U.S. Magistrate Judge Mark A. Moreno.
Frank Iron Heart, age 39, was sentenced to time served and a special assessment to the Federal Crime Victims Fund in the amount of $10.
Iron Heart was indicted by a federal grand jury on February 13, 2019. He pled guilty on August 16, 2019.
The conviction stemmed from an incident that occurred on December 18, 2018, when Iron Heart willfully and unlawfully disobeyed and resisted a subpoena issued by the U.S. District Court requiring him to appear at a federal hearing in Pierre, South Dakota.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Mission Man Charged with Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Luke Joseph Burning Breast, age 35, was indicted on August 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 9, 2019, at Rosebud, Burning Breast having previously been convicted of a felony, knowingly possessed a firearm.
The charge is merely an accusation and Burning Breast is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Burning Breast was released on bond pending trial. A trial date has not been set.
Miller Man Sentenced for Being Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Miller, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on August 12, 2019, by U.S. District Judge Roberto A. Lange.
Johnathan Taylor, age 27, was sentenced to time served, 2 years of supervised release, forfeiture of his interest in 6 firearms, any and all ammunition recovered with the weapons, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Taylor was indicted by a federal grand jury on February 13, 2019. He pled guilty on May 28, 2019.
The conviction stemmed from an incident on December 1, 2018, when a South Dakota Game, Fish, and Parks Officer was conducting licensing verification and encountered Taylor, who had a pump action shot gun. When the officer discovered Taylor was an individual prohibited from possessing a firearm, a search warrant was executed on Taylor’s residence and the 6 firearms were seized. During the search, marijuana was also discovered, to which Taylor admitted to using daily for about 8 years.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by South Dakota Game, Fish, and Parks and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Taylor was released following sentencing.
Marty Man and Yankton Man Plead Guilty to Kidnapping and AssaultRead the Press Release
United States Attorney Ron Parsons announced that Gavin Little, age 23, of Marty, South Dakota, and Christian Garcia, age 24, of Yankton, South Dakota, appeared before U.S. District Judge Karen E. Schreier on August 15, 2019, and pled guilty to an Indictment that charged Little with Kidnapping and Garcia with Assault Resulting in Serious Bodily Injury.
The maximum penalty upon conviction for Little is life in federal prison, and/or $250,000 fine, 5 years of supervised release, and $100 special assessment to the Federal Crime Victims Fund. Restitution may also be imposed.
The maximum penalty upon conviction for Garcia is 10 years in federal prison, and/or $250,000 fine, 3 years of supervised release, and $100 special assessment to the Federal Crime Victims Fund. Restitution may also be imposed.
On or about November 25, 2018, Little and Garcia, along with two juveniles, assaulted an adult male at a home in east housing of Marty, on the Yankton Sioux Indian Reservation. After the man was severely beaten and unconscious, Little loaded him into a vehicle and left the scene. A high speed chase ensued near Greenwood, before Little abandoned the vehicle and fled away on foot. Tribal officers discovered the unconscious man in the back of the vehicle. He was flown to Sioux Falls for emergency medical treatment.
The investigation was conducted by the Yankton Sioux Tribe Law Enforcement and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jeffrey C. Clapper.
A presentence investigation was ordered and a sentencing date was set for November 4, 2019. Both Little and Garcia were remanded to the custody of the U.S. Marshals Service pending sentencing.
Eagle Butte Woman Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Nicole Ducheneaux, age 33, was indicted on August 13, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 16, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than on or about January 1, 2017, continuing to on or about August 13, 2019, Ducheneaux, knowingly and intentionally, combined, conspired, confederated, and agreed with persons known and unknown to knowingly and intentionally distribute, and possess with intent to distribute, 50 grams or more of methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Ducheneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Ducheneaux was released on bond pending trial. A trial date has not been set.
16 August 2019
Zuni Pueblo Man Sentenced to 18 Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Ernest Bewanika, 63, an enrolled member and resident of Zuni Pueblo, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 18 years of imprisonment for sexually abusing a child under the age of 12 years of age. Bewanika will be on supervised release for five years after completing his prison sentence. He also will be required to register as a sex offender.
Bewanika was arrested on April 3, 2018, on a two-count indictment charging him with sexually abusing a child under the age of 12 years on two occasions.
In Sept. 2018, Bewanika pled to a felony information charging him with two counts of abusive sexual contact. In his plea agreement, Bewanika admitted to sexually abusing a minor under the age of 12 years in locations within the Zuni Pueblo in McKinley County, N.M. Bewanika admitted that he engaged in sexual contact with the victim between Nov. 2014 and Nov. 2015, and again between Nov. 2015 and Jan. 2016.
The case was investigated by the Gallup office of the FBI and the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorney Elisa C. Dimas prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Wyoming County Dentist Convicted of Unlawful Distribution of Controlled SubstancesRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wyoming County dentist, Christopher Bereznak, age 50, was convicted on August 13, 2019, on eight counts of distributing controlled substances without a legitimate medical purpose, after a seven-day trial before United States District Court Judge A. Richard Caputo.
According to United States Attorney David J. Freed, the evidence showed that beginning in June 2016 and continuing into July 2016, Bereznak unlawfully provided controlled substances to a woman with whom he had no legitimate doctor/patient relationship, without legitimate medical necessity, and outside the scope of a professional practice. The controlled substances included painkillers such as Percocet, Soma and Diazepam.
Bereznak’s license to practice dentistry in Pennsylvania and his DEA registration have been suspended.
The case was investigated by the Drug Enforcement Administration, Scranton, the Olyphant Police Department, and the Lackawanna County District Attorney’s Office. Assistant United States Attorneys Michelle Olshefski and Fran Sempa are prosecuting the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for unlawful dispensing of Percocet is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for unlawful dispensing of Soma is five years of imprisonment, a term of supervised release and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wilkes Barre Man Sentenced to 188 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 14, 2019, Jeffrey Stevens, age 36, of Wilkes-Barre, Pennsylvania, was sentenced to 188 months’ imprisonment and five years of supervised release, by United States District Court Judge Robert D. Mariani, for drug trafficking and firearms offenses.
According to United States Attorney David J. Freed, Stevens was convicted of distributing and possessing with the intent to distribute 10 grams of heroin (which is equivalent to approximately 400 individual doses of heroin) in February 2015. Stevens also was convicted of being a felon in possession of firearms and ammunition, after being found in a hotel room with heroin, firearms, and ammunition. Due to his extensive criminal history, he was deemed an armed career criminal.
Judge Mariani also ordered the forfeiture of the firearms seized during the investigation, which included:
- .380 Bersa pistol with an obliterated serial number;
- 9mm Keltec pistol with an obliterated serial number; and
- .357 Taurus revolver, Serial Number ZH-73125.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania Office of Attorney General. Assistant United States Attorney Phillip Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Waterbury Man Pleads Guilty to Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE PENA, also known as “Papi,” 58, of Waterbury, pleaded guilty today in New Haven federal court to distributing heroin.
According to court documents and statements made in court, in September 2018, law enforcement received information that Pena was distributing large quantities of heroin in Waterbury. Investigators subsequently made a series of controlled purchases of heroin from Pena.
Pena was arrested on a federal criminal complaint on January 10, 2019.
Pena pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Janet C. Hall on November 11, 2019.
Pena, a citizen of the Dominican Republic and a lawful permanent resident of the U.S., is released on a $150,000 bond pending sentencing.
This investigation is being conducted by the Drug Enforcement Administration’s New Haven Task Force and the Naugatuck Police Department. The Task Force includes participants from the U.S. Marshals Service, the Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby and Middletown Police Departments. The case is being prosecuted by Assistant U.S. Attorney Nathaniel Gentile.
Warner Woman Sentenced to 60 Months Probation, $52,000 Restitution for TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christy Little Coppin, age 41, of Warner, Oklahoma, was sentenced to 5 years’ probation with a special condition that she notify all current and future employers of her conviction and the probation officer can contact the employer and confirm restitution of $52,738.58 for Theft Within Special Maritime And Territorial Jurisdiction, in violation of Title 18, United States Code, Section 661. The charges arose from an investigation by the United States Department of Labor.
The Indictment alleges that from in or about May 2015 to in or about July 2017, in the Eastern District of Oklahoma, and within the special maritime and territorial jurisdiction of the United States, that is the Office of the American Federation of Government Employees Local 2250 in the Veterans Administration Hospital, the defendant took and carried away, with intent to steal and purloin, personal property of the Office of the American Federation of Government Employees Local 2250, with a value exceeding $1,000.00.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Sarah McAmis represented the United States.
Unsealed Warrant and Forfeiture Complaint Seek Seizure of Oil Tanker “Grace 1” for Unlawful Use of U.S. Financial System to Support and Finance Sale of Oil Products to SyriaRead the Press Release
WASHINGTON – A seizure warrant and forfeiture complaint were unsealed today in the U.S. District Court for the District of Columbia alleging that Oil Tanker “Grace 1,” all petroleum aboard it and $995,000.00 are subject to forfeiture based on violations of the International Emergency Economic Powers Act (IEEPA), bank fraud statute, and money laundering statute, as well as separately the terrorism forfeiture statute.
John Demers, Assistant Attorney General, National Security Division, Jessie K. Liu, U.S. Attorney for the District of Columbia, Steven W. Cagen, Special Agent in Charge, Denver, Colorado, Homeland Security Investigations; and Jill Sanborn, Special Agent in Charge, Minneapolis, Minnesota, Federal Bureau of Investigation, made the announcement.
The documents allege a scheme to unlawfully access the U.S. financial system to support illicit shipments to Syria from Iran by the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization. The scheme involves multiple parties affiliated with the IRGC and furthered by the deceptive voyages of the Grace 1. A network of front companies allegedly laundered millions of dollars in support of such shipments.
A seizure warrant and a forfeiture complaint are merely allegations. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
In announcing the forfeiture complaint and seizure warrant, U.S. Attorney Liu commended the work of those who investigated the case from HSI and FBI. They also expressed appreciation for the Criminal Division’s Office of International Affairs for its assistance in this case. Finally, they acknowledged the work of Assistant U.S. Attorneys Zia Faruqui and Brian Hudak and National Security Division Trial Attorney David Lim who are handling this matter, with assistance from Paralegal Elizabeth Swinec and Brian Rickers, and Legal Assistant Jessica McCormick from the U.S. Attorney’s Office from the District of Columbia.
Unsealed Warrant and Forfeiture Complaint Seek Seizure of Oil Tanker “Grace 1” for Unlawful Use of U.S. Financial System to Support and Finance IRGC’s Sale of Oil Products to SyriaRead the Press Release
A seizure warrant and forfeiture complaint were unsealed today in the U.S. District Court for the District of Columbia alleging that Oil Tanker “Grace 1,” all petroleum aboard it and $995,000.00 are subject to forfeiture based on violations of the International Emergency Economic Powers Act (IEEPA), bank fraud statute, and money laundering statute, as well as separately the terrorism forfeiture statute.
John Demers, Assistant Attorney General, National Security Division, Jessie K. Liu, U.S. Attorney for the District of Columbia, Steven W. Cagen, Special Agent in Charge, Denver, Colorado, U.S. Customs and Immigration Enforcement’s Homeland Security Investigations (HSI); and Jill Sanborn, Special Agent in Charge, Minneapolis, Minnesota, FBI, made the announcement.
The documents allege a scheme to unlawfully access the U.S. financial system to support illicit shipments to Syria from Iran by the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization. The scheme involves multiple parties affiliated with the IRGC and furthered by the deceptive voyages of the Grace 1. A network of front companies allegedly laundered millions of dollars in support of such shipments.
A seizure warrant is merely an allegation. Every criminal defendant is presumed innocent until, and unless, proven guilty, and the burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
In announcing the indictment, U.S. Attorney Liu commended the work of those who investigated the case from HSI and FBI. They also expressed appreciation for the Criminal Division’s Office of International Affairs for its assistance in this case. Finally, they acknowledged the work of Assistant U.S. Attorneys Faruqui and Hudak and National Security Division Trial Attorney David Lim who are handling this matter, with assistance from Paralegal Liz Swinec and Brian Rickers, and Legal Assistant Jessica McCormick.
Toledo man indicted for allegedly trying to launder drug profits at casinoRead the Press Release
A Toledo man was indicted on charges that he attempted to for attempting to launder more than $138,000 in drug profits at the Hollywood Casino.
Todd A. Brown, 40, was indicted on 15 counts of concealment money laundering.
According to the indictment:
Brown, on 15 different occasions between March 2016 and June 217, went to the Hollywood Casino in Toledo, where he “fast fed” currency into gaming machines. “Fast feeding” is a practice of taking large sums of cash to casino, inserting the cash into a slot machine, playing the slot machine for a brief period of time, then receiving a cash-out ticket for the unused currency and redeeming the ticket. Fast feeding is often used to make cash obtained from unlawful activity appear to be casino winnings.
Brown took proceeds from drug trafficking and fast-fed the cash to gaming machines at the Hollywood Casino in Toledo. He fast-fed approximately $138,843 at the casino in an effort to launder the money, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service in Toledo, Ohio. The case is being prosecuted by Assistant U.S. Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Laredoans Arrested for Making False Statements When Purchasing FirearmsRead the Press Release
LAREDO, Texas – One woman and two men from Laredo are set to appear in court for conspiracy to commit an offense against the United States by knowingly making a false statement in connection with the purchase of a firearm, announced U.S. Attorney Ryan K. Patrick.
Ivette Julissa Ramirez, 18, Jesus Abraham Ramirez, 24, and David Arnaldo Garcia, 25, are set to make their initial appearances today at 10:00 a.m. before U.S. Magistrate Judge Sam Sheldon.
According to the criminal complaint, beginning on July 29, Ivette Ramirez purchased four AK-47 type semi-automatic rifles over the course of eight days. Law enforcement officials subsequently learned she allegedly made a $3,000 deposit on a .50 caliber rifle at a federal firearm licensee in Laredo.
The charges allege that on Aug. 13, 2019, she arrived at the licensee with Jesus Ramirez. Both were subsequently observed leaving, with Jesus Ramirez rolling a large gun case, according to the complaint.
Law enforcement conducted a traffic stop and discovered Ivette Ramirez, Jesus Ramirez and Garcia all inside the vehicle as was a Barrett .50 caliber rifle, according to the charges.
The complaint alleges Garcia and Jesus Ramirez would provide the funds, while Ivette Ramirez made the actual firearms purchases. The firearms were allegedly going to Mexico.
If convicted, each faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosive conducted the investigation with the assistance of Immigration and Customs Enforcement’s Homeland Security Investigations and the Laredo Police Department. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Three Are Sentenced to Prison for Conspiring to Defraud the U.S. Small Business Administration Through A Loan Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced three men for conspiring to defraud the U.S. Small Business Administration (SBA) through a fraudulent loan scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Rafid Latif, 54, of Charlotte, N.C., was sentenced to 84 months in prison; Imtiaz Shareef, 40, of Bossier City, Louisiana, was sentenced to 57 months in prison; and Ejaz Shareef, 42, of Mt. Royal, New Jersey, was handed down a 48-month prison sentence. In addition to the prison terms imposed, Judge Conrad ordered each defendant to serve two years under court supervision upon completion of their prison terms, and to pay $795,435.33 as restitution. Latif was ordered to pay additional restitution in the amount of $999,487.99.
In December 2018, a federal jury convicted the three men of conspiracy to commit wire and bank fraud and conspiracy to commit money laundering A fourth co-defendant, Biren Seth, 42, of West Caldwell, New Jersey, previously pleaded guilty to conspiracy to commit wire and bank fraud for his role in the scheme, and was sentenced to 33 months in prison, followed by two years of supervised release.
According to filed court documents, evidence presented at trial, and today’s sentencing hearing, from 2010 to 2018, Latif, Ejaz Shareef, and Imtiaz Shareef, conspired with each other and Sheth to defraud the U.S. Small Business Administration (SBA), various banks, and an insurance company through the operation and sale of two Charlotte-area hotels, the Days Inn located at 1408 West Sugar Creek Road, and the Arlington Suites located at 4416 South Tryon street.
Trial evidence established that the conspiracy involved three inter-related schemes: an insurance fraud scheme; a fraudulent loan-kickback scheme; and a short-sale scheme. According to court records, in 2010, Latif, Ejaz Shareef and Imtiaz Shareef were the operators of the Days Inn hotel. In that capacity, the three co-defendants engaged in a scheme to obtain fraudulent reimbursements from an insurance company for fictitious repairs and remodeling expenses at the Days Inn hotel. By submitting fake documents and bogus proofs of payment, the co-defendants obtained more than $825,000 from the insurance company, and then used a portion of the money to facilitate bank loan fraud schemes involving the two hotels.
According to trial evidence, in 2012, the defendants obtained an SBA loan from a bank in order to finance the purchase of the Days Inn hotel. The co-conspirators obtained the loan by making several false material representations including presenting the bank with fraudulent documents such as an inflated lease-purchase agreement; by misrepresenting the source of the down payment, which was the fraudulently-obtained insurance money; and by failing to disclose to the bank that the co-conspirators would receive nearly $700,000 as a kickback from the hotel’s inflated sale price.
In addition to the fraudulent scheme involving the Days Inn hotel, Sheth and Latif engaged in separate fraudulent loan scheme involving the Arlington Suites hotel. Trial evidence established that, as a favor for Sheth’s assistance in facilitating the purchase of the Days Inn hotel, Latif agreed to help Sheth with the fraudulent short sale of the Arlington Suites hotel. Sheth owned the Arlington Suites hotel, which was in part financed with an SBA loan. With Latif’s help, Sheth defrauded SBA by convincing SBA to agree to a short-sale when Sheth fell behind on his payments. According to trial evidence, Sheth arranged to “sell” the Arlington Suites hotel to a corporation in Latif’s name. This sham sale was in name only. According to trial evidence, Sheth convinced SBA to charge off nearly $1 million of the balance Sheth owed on the existing loan. Because Latif was only a straw purchaser and Sheth remained the true owner of the hotel, the $1 million represented an immediate increase in Sheth’s equity in the Arlington Suites hotel.
According to evidence presented at trial, Latif further defrauded SBA in connection with the Arlington Suites sale by obtaining another SBA loan to finance the purported purchase of the hotel. Latif secured the SBA loan by using false and fraudulent documentation and making material representations about the down-payment money, among other things.
In 2014, Sheth transferred to Latif $690,000 in kickback funds from the Days Inn sale, after Latif threatened to expose the Arlington Suites short-sale fraud.
In handing down today’s sentences, Judge Conrad said that the defendants used a “web of lies” to defraud “multiple institutions,” and noted the importance of deterring “this type of criminal activity.”
U.S. Attorney Murray credited the Charlotte Division of the FBI for the investigation of this case, and thanked the SBA for its invaluable assistance.
Assistant U.S. Attorneys Caryn Finley and William Miller, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Substance Abuse Clinic Agrees to Pay Federal Government $200,494 to Settle Civil ClaimsRead the Press Release
LEXINGTON, Ky. – 2nd Chance, PLLC (“2nd Chance”), a substance abuse treatment center in Lexington, has agreed to pay $200,494 to resolve civil allegations that it violated the False Claims Act, a federal law that prohibits causing the submission of false or fraudulent claims to the federal government.
According to the settlement agreement, the United States alleged that 2nd Chance caused the submission of false claims to the Kentucky Medicaid program through its referral of urine drug testing services to Compliance Advantage, LLC, a toxicology laboratory in Nicholasville, Kentucky known as “CAL Lab.” CAL Lab provided 2nd Chance with a chemistry analyzer, which is a valuable piece of laboratory equipment that enabled 2nd Chance to perform some urine drug testing on-site beginning on or around October 3, 2016. On November 29, 2016, CAL Lab and 2nd Chance entered into a lease agreement that required 2nd Chance to pay CAL Lab a monthly fee for use of the analyzer. But, 2nd Chance did not make any payments for use of the analyzer until March 14, 2017.
Accordingly, for a five-month period, 2nd Chance received the benefit of the analyzer without paying for it. The United States alleged this was a substantial benefit to 2nd Chance: not only did 2nd Chance receive the benefit of the test results for use in patient care, 2nd Chance also received over $400,000 from Kentucky Medicaid for drug tests performed on the analyzer during this period.
For its part, CAL Lab received referrals for more complex drug testing from 2nd Chance’s physicians. CAL Lab then submitted claims for payment for that testing to Kentucky Medicaid, totaling close to $90,000. According to the settlement agreement, the United States alleged that these claims were false, because they were tainted by 2nd Chance’s acceptance and use of the chemistry analyzer without making lease payments to CAL Lab in violation of the Anti-Kickback Statute, a federal law that prohibits healthcare providers from accepting anything of value in exchange for the referral of services paid for by federal health insurance programs, including Kentucky Medicaid.
“Sweetheart deals paid for by taxpayers, as the Government alleged in this case, will not be tolerated,” said Derrick Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will work with our law enforcement partners to investigate and prosecute organizations entering into such illicit arrangements.”
This case is part of a larger investigation into CAL Lab and affiliated individuals and entities. Earlier this year, in a criminal matter, Samuel L. Ford and Dinesh Goyal pled guilty to conspiracy to commit an offense against the United States in connection with their illegal billing arrangement with CAL Lab. Specifically, Ford, Goyal, and CAL Lab’s owner, Mason Routt, agreed that urine drug tests referred to and performed by CAL would be billed to certain federal health insurance programs using another laboratory’s billing information in order to evade payment restrictions placed on CAL by those insurers. Earlier this week, Mr. Ford was sentenced to 24 months in federal prison and 36 months supervised release for his role in this scheme. Mr. Goyal is scheduled to be sentenced on October 15, 2019.
In June 2018, CAL Lab agreed to a civil settlement with the United States that included the entry of a civil judgment against it and in favor of the United States in the amount of $2,816,015. As part that settlement, CAL Lab admitted that it violated the False Claims Act by knowingly failing to return to federal health insurance programs overpayments it received for specimen validity testing – a service not covered by Medicare or Kentucky Medicaid.
The Government’s work in this investigation illustrates its commitment to combatting health care fraud, waste, and abuse. Tips from all sources about potential fraud, waste, and abuse can be reported to the U.S. Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case against 2nd Chance was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Attorney’s Office for the Eastern District of Kentucky. Assistant United States Attorney Christine Corndorf represented the United States. The claims resolved by the settlement with 2nd Chance are allegations only; there has been no determination of liability.
Skagway Man Sentenced for the Illegal Export and Import of Walrus IvoryRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Skagway man has been sentenced for illegally exporting a raw ivory tusk, using falsified forms to have it admitted to Indonesia, and thereafter illegally importing the carved tusk, for sale, back into the United States.
James Terrance Williams, 67, of Skagway, d.b.a. Inside Passage Arts, was sentenced yesterday by U.S. District Judge Sharon L. Gleason to serve two years of probation and to pay a $5000 fine. Williams pleaded guilty to one felony count of Lacey Act false labeling and one felony count of smuggling goods into the United States.
According to court documents, in October 2014 and March 2016, Williams illegally exported raw, unworked, walrus ivory tusks from Alaska to Bali, Indonesia for carving. He would then smuggle the carved walrus ivory back into the United States, disguising the illegal nature of the transportation by falsification of records, all in furtherance of illegal sales of the ivory.
This scheme involved numerous Lacey Act violations. Specifically, in the years 2014, 2015, and 2016, Williams would then sell the carved walrus ivory as merchandise, knowing that it had been unlawfully transported into the United States from a foreign county. The investigation revealed that Williams knowingly made or submitted false records and accounts for the importation, transportation, and sale of carved walrus ivory tusks. Williams regularly visited Bali, Indonesia to have specific Indonesian carvers work on provided wildlife raw materials that he would then import as carvings into the United States for merchandise sale. The carvings were not traditional-style Alaska Native carvings, but were instead crafted in a “Balinese” style
Under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), walrus ivory cannot be exported out of the United States, nor imported into the United States, without a permit. Furthermore, the Marine Mammal Protection Act prohibits the sale of non-Alaska Native handicrafted walrus ivory.
U.S. Fish and Wildlife Service (USFWS) Office of Law Enforcement (OLE) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Deputy Criminal Chief Steven E. Skrocki.
Six Bloods Members and Associates Charged with Narcotics Trafficking on Long IslandRead the Press Release
An 11-count superseding indictment was unsealed in federal court in Central Islip charging Rashaan Corbin, Miles Lamarca, Sharied Legette, Alex Murphy, Taieek Smith and Andre Turner – members or associates of the Bloods street gang – with multiple crimes for their participation in drug distribution in Babylon, New York, and surrounding neighborhoods. Lamarca was arrested on August 15, 2019 and will be arraigned this afternoon before United States Magistrate Judge A. Kathleen Tomlinson. Legette and Turner were arrested last month and ordered detained. Smith is in state custody and will be arraigned at a future date on the superseding indictment with Corbin and Murphy, who were charged in the original indictment in March 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Raymond Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), Timothy Sini, District Attorney, Suffolk County District Attorney’s Office (SCDA), and Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the charges.
As alleged in court filings, between approximately March 2013 and April 2019, the defendants distributed heroin, fentanyl, fentanyl analogues, cocaine or crack cocaine in and around Babylon. They often used firearms to protect their turf and narcotics from members of other street gangs. During the course of the investigation, members of law enforcement seized more than $120,000 in cash, five semi-automatic handguns, drug paraphernalia and materials used to package narcotics for distribution.
“Drugs, gangs and guns are a dangerous combination, putting our communities at grave risk,” stated United States Attorney Donoghue. “This Office and our federal and state law enforcement partners will continue to work tirelessly to remove drug-dealing gang members from our streets.”
“Members and associates of street gangs go to great lengths to defend their respective territories, at times engaging in acts of violence to prevent others from invading the areas they control. When narcotics are involved, the stakes are even higher. The people of our communities deserve to live in a society that is free from violence. The FBI will continue to aggressively investigate these cases and work together with our partners in disrupting and dismantling this type of illegal activity,” stated FBI Assistant Director-in-Charge Sweeney.
“Today’s arrest marks the end of a criminal organization alleged to have spread drugs, violence, and mayhem throughout Long Island communities,” stated DEA Special Agent- in-Charge Donovan. “This investigation is one example of collaborative law enforcement efforts to make our cities safer by focusing on gang-related crime and violence.”
“Gang activity often goes hand-in-hand with illicit drug sales and the illegal possession of weapons, which are used as protection for narcotics operations like this one,” stated Suffolk County District Attorney Sini. “Make no mistake: these defendants, who are members and associates of the violent Bloods street gang, were driving crime in a variety of ways in our communities, and these indictments put an end to that enterprise. We will continue to work collaboratively with our federal partners, including the cross-designation of prosecutors, so that we can effectively target and arrest impact players.”
“The success of our coordinated efforts with our law enforcement partners is evident in the takedown of these Bloods gang members and associates who ran a narcotics operation for six years,” stated SCPD Commissioner Hart. “We remain committed to arresting those who make a living off of selling illicit drugs and poisoning our communities. Interagency collaboration plays a significant role in creating the safest environment for our residents, and I would like to thank the Eastern District of New York for their unwavering commitment to ridding neighborhoods of narcotics.”
The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted, Corbin, Legette, Murphy and Smith face a maximum of life imprisonment; Lamarca and Turner face up to 40 years in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone, Mark E. Misorek and Special Assistant United States Attorney Melissa J. Turk are in charge of the prosecution.
New Defendants:
MILES LAMARCA (also known as “Shaq”)
Age: 21
Babylon, New YorkSHARIED LEGETTE (also known as “Chalk” and “Rico”)
Age: 22
Wyandanch, New YorkTAIEEK SMITH
Age: 23
Wyandanch, New YorkANDRE TURNER (also known as “X”)
Age: 29
Wyandanch, New YorkPreviously Indicted Defendants:
RASHAAN CORBIN (also known as “Ra” and “Ra Money”)
Age: 23
Mastic, New YorkALEX MURPHY (also known as “Buddha” and “Tall Guy”)
Age: 33
West Babylon, New YorkE.D.N.Y. Docket No. 19-CR-124 (DRH)
Seven People Face Federal Charges in Connection with Armed Robbery Spree that Targeted Pharmacies Across Southern CaliforniaRead the Press Release
LOS ANGELES – A federal grand jury today returned an eight-count superseding indictment that charges a Lynwood man with being the organizer and leader of a crew that committed at least 15 armed robberies of independent and “mom-and-pop” pharmacies across Southern California. The robbers allegedly stole a variety of prescription medications – in particular, oxycodone – with the intent of selling the stolen drugs on the black market.
The suspected organizer and leader, Tyrome Lewis, 24, a.k.a. “Boobie,” was charged with one count of conspiracy to interfere with commerce by robbery, one count of conspiracy to distribute oxycodone, two counts of interference with commerce by robbery, two counts of possession with intent to distribute oxycodone, and two counts of knowingly using and brandishing a firearm during a crime of violence. Lewis, who was previously arrested and charged in a criminal complaint, is being held without bond. His arraignment is scheduled for August 22.
The superseding indictment filed today adds Lewis to a case in which another man – Darrell Mitchell, 29, of Long Beach – was previously charged. Darrell Mitchell, who is a fugitive, also faces conspiracy, narcotics and firearms offenses.
The initial indictment charged two additional co-conspirators, Terrell Mitchell, 31, (Darrell Mitchell’s brother) and Deandre Bonney, 29, both from Compton. Terrell Mitchell and Bonney have signed plea agreements in which they admitted their involvement in a December 2018 robbery of a Glendale pharmacy. Terrell Mitchel and Bonney are not named in the superseding indictment, and they are expected to enter guilty pleas in September.
Over an 18-month period that ended just a few weeks ago, Lewis allegedly led an armed crew that robbed pharmacies in Bellflower, Cerritos, South Los Angeles, Westminster, Pico Rivera, Fullerton, Hawthorne, Huntington Park, Anaheim, Glendale, Riverside, Paramount, and Claremont. Lewis allegedly picked out the robbery locations and provided details to the crew’s participants as to how the robberies should be conducted, including what medications to target. Lewis also traveled to the robbery locations in advance to scout the targeted stores and later oversaw the robberies as they were committed, the indictment alleges.
Each of the robberies shared a common modus operandi, including targeting smaller pharmacies, placing the stolen prescription drugs into the pharmacy’s trash bags or trash cans, using a black semi-automatic handgun to threaten and intimidate store employees, forcing employees to open the medication vault, and taking the store employees’ cell phones to prevent them from immediately calling police, according to court documents.
In addition to the Southern California robberies, the indictment alleges that Lewis was involved in a burglary of a Walgreens pharmacy in Anthony, Texas in January 2018.
If convicted of all charges, Lewis and Mitchell each would face a statutory maximum sentence of life in federal prison.
Three additional co-conspirators have been charged in a separate indictment. Aaron Ganner, 27, Karon Lofton, 28, and Devon Jackson, 30, all from Compton, were indicted for their role in a June 12 robbery of a pharmacy in Torrance. Ganner, Lofton and Jackson were arraigned Thursday in United States District Court, where they were ordered held without bond and a trial was scheduled for October 8.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the Federal Bureau of Investigation and the Los Angeles County Sheriff’s Department, with assistance from the Torrance Police Department.
This case is being prosecuted by Assistant United States Attorneys Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crimes Section.
San Carlos Woman Sentenced to 46 Months for Possession with the Intent to Distribute MethamphetamineRead the Press Release
PHOENIX – On August 5, 2019, Stephanie Miles, 31, of Bylas, Ariz., on the San Carlos Apache Indian Reservation, was sentenced by U.S. District Judge Dominic Lanza to 46 months in prison followed by 3 years of supervised release. Miles had previously pleaded guilty to Possession with the Intent to Distribute Methamphetamine.
On May 7, 2014, Miles was stopped by San Carlos Police for a minor traffic violation and subsequently arrested because her driver’s license was suspended. During a search of Miles’ property, police discovered 7 grams of pure methamphetamine that Miles possessed for distribution.
The investigation was conducted by the Bureau of Indian Affairs, the San Carlos Police Department, the Arizona Department of Public Safety, and the Drug Enforcement Administration Crime Laboratory. The prosecution was handled by Assistant U.S. Attorney Thomas Simon.
San Carlos Man Sentenced to 30 Months for Involuntary ManslaughterRead the Press Release
PHOENIX – On August 1, 2019, Kevin Ryan Upshaw, Jr., 32, of San Carlos, Ariz., was sentenced by U.S. District Judge Susan M. Brnovich to 30 months in prison followed by 3 years of supervised release. Upshaw had previously pleaded guilty to Involuntary Manslaughter.
On July 22, 2013, Upshaw, an enrolled member of the San Carlos Apache Tribe, while driving under the influence of alcohol, struck and killed 5 year old Legend Mariah Ramos.
The investigation in this case was conducted by the Bureau of Indian Affairs, the San Carlos Police Department and the Arizona Department of Public Safety. The prosecution was handled by Assistant U.S. Attorney Thomas Simon.
Richard Grundy, III and associates convictedRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today the conviction of Richard Bernard Grundy, III, a 30-year-old resident of Indianapolis, and four members of his drug trafficking organization on drug trafficking charges. The convictions resulted from a three-week trial that occurred in Evansville, Indiana. Grundy and his associates were convicted of all charges filed in the case.
Grundy was the leader of a drug trafficking organization that distributed over 400 pounds of methamphetamine, as well as large amounts of heroin, cocaine, and marijuana in Indianapolis from August 2016 through November 17, 2017. Grundy was convicted of engaging in a continuing criminal enterprise, conspiracy to distribute controlled substances, and other drug trafficking and money laundering offenses. The conviction for engaging in a continuing criminal enterprise carries a mandatory sentence of life imprisonment.
Also convicted were Ezell Neville, 41, Undrae Moseby, 30, Derek Atwater, 33, and James Beasley, 39, all residents of Indianapolis. Neville, Moseby, Atwater, and Beasley were convicted of conspiracy to distribute controlled substances and other drug trafficking offenses. They face sentences within the range of ten years and life imprisonment. Neville served as a principal distributor of methamphetamine for Grundy. Moseby transported drug proceeds from Indianapolis to Phoenix, Arizona for Grundy and returned to Indianapolis with methamphetamine. Atwater and Beasley were mid-level methamphetamine distributors for Grundy’s organization. The other charged defendants pled guilty in federal court.
Minkler stated, “Richard Grundy’s conviction is another positive step in our continued efforts to combat violence and drug trafficking in Indianapolis. Over the last three weeks, we proved that Grundy was the kingpin of an armed drug trafficking organization that infested our city with heroin, methamphetamine, and other illegal drugs. This verdict sends a clear message that Grundy’s days of pushing drugs, perpetuating violence and menacing the good people of Indianapolis are over.”
The lead investigative agencies were the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department. Other agencies that assisted in the investigation included the Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, Fishers Police Department, Marion County Sheriff’s Department, Indiana State Police, and Zionsville Police Department. Minkler specifically commended the work of FBI Special Agent Kerry Inglis and IMPD Detective Eric Moncrief, who spearheaded the investigation for their agencies.
“Mr. Grundy thought he and his associates were above the law and could run their criminal enterprise without fear of consequence. This verdict sends a very strong message not only that those who traffic drugs and peddle their poison in our communities will be held accountable, but that there is zero tolerance for those who think they can continue to intimidate people/witnesses and inspire fear in our neighborhoods without reprisal,” said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. “I want to thank the agents, task force officers, staff, and law enforcement partners who spent countless hours for more than a year tirelessly investigating this organization and ensuring their illegal activities would be brought to a grinding halt.”
Chief Bryan Roach said, “Today, A violent individual is off the streets of our city thanks in no small part to our strong partnerships with local, state, and federal law enforcement agencies. And that’s why we’ve doubled down on this model, establishing the Indianapolis Crime Gun Intelligence Center earlier this year to formalize these partnerships and continue to pursue the most violent in our community, along with their sources of crime guns.” Chief Roach continued, “I am proud of the officers and investigators who remain vigilant in pursuing all crime in our city. This conviction is the reward of the great police work that occurs in our city every day. Our agency along with our local and federal partners are determined to make Indianapolis a safe and enjoyable place to work and live.”
“Yesterday’s guilty verdict in the Grundy, et al. trial was necessary and just for the citizens of the Indianapolis Metropolitan community. The guilty verdict sends a strong message that violent drug trafficking organizations will be prosecuted to the fullest extent of the law and have no place in our community. This investigation demonstrated the highest level of collaboration among law enforcement and prosecutorial partners throughout the criminal justice system,” remarked DEA’s Assistant Special Agent in Charge, J. Michael Gannon.
“There is no room in the Indianapolis community for anyone using guns and threats of violence to further their illegal drug business,” stated Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “The steps these individuals took to intimidate witnesses and community members are almost unprecedented. I am proud of the long-term, cooperative efforts by all of the law enforcement agencies involved to hold all of these individuals responsible for the harm they inflicted on their victims.”
“The conviction of Richard B. Grundy, III and his co-defendants is an enormous victory for the people of Indianapolis and the surrounding communities,” said Fishers Police Chief Ed Gebhart. “The negative influence these criminals have had on the Indianapolis area has been profound. We are all safer and live better when individuals such as these are brought to justice. The courageous, professional and focused law enforcement and prosecutorial resources brought to bear in this case is a clear illustration of how multi-agency cooperation works for all. The law enforcement community and the law-abiding public should continue to speak and act with one voice against those that would act as predators on our society. Although so much work remains, this success should serve to motivate the peace-loving people of Central Indiana to bond closer, communicate more and pursue justice fiercely, together.”
This case was prosecuted by Assistant United States Attorneys Bradley A. Blackington and Lindsay E. Karwoski.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to target, investigate, and prosecute more violent criminal organizations engaged in drug trafficking, money laundering and the use of firearms to further a drug trafficking crime. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.1
Research Scientist Charged with Making False Statements in Connection with NIH GrantsRead the Press Release
ALBANY, NEW YORK – Gerwin Schalk, age 48, of Albany, and formerly of Glenmont, New York, appeared today in federal court on a complaint charging him with making false statements on conflict of interest certifications he submitted in connection with National Institutes of Health (NIH) grants.
The announcement was made by United States Attorney Grant C. Jaquith; New York State Inspector General Letizia Tagliafierro; and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region.
Schalk is a research scientist employed by the New York State Department of Health (DOH) in Albany, and is the deputy director of the National Center for Adaptive Neurotechnologies.
In connection with applying for and receiving federal research grants, Schalk was required to disclose any financial conflicts of interests to DOH and its affiliate, Health Research, Inc. (“HRI”), or certify that no conflicts existed. (Neither DOH nor HRI is suspected of wrongdoing.)
The complaint alleges that Schalk knowingly and repeatedly lied about, and failed to disclose, payments he was receiving from Company A, whose products Schalk regularly purchased and used in connection with his research. According to the complaint (copy attached), Company A has paid at least $69,856 to Schalk, from July 2013 to April 10, 2019. Additionally, in July 2017, Company A purchased a car that Schalk registered in his name.
Company A billed HRI approximately $260,000 for sales of neurotechnology equipment to HRI, from 2012 through January 23, 2018; Company A was principally paid from federal grant money.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Schalk appeared today before United States Magistrate Judge Daniel J. Stewart, and was released pending further proceedings.
If convicted, Schalk faces up to 5 years in prison on each false statement charge, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the New York State Inspector General’s Office and the DHHS Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Phenix City Man Sentenced to 35 Years in Prison for Federal Drug and Firearms ChargesRead the Press Release
Montgomery, Alabama – On Thursday, August 15, 2019, Hector Manuel Bossio, 43, of Phenix City, Alabama, was sentenced to 35 years in prison for federal drug and firearms charges, announced United States Attorney Louis V. Franklin, Sr., and Special Agent in Charge Marcus S. Watson with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
In April of 2017, Bossio was indicted by a federal grand jury for possession of methamphetamine with intent to distribute, possession of a firearm in connection with a drug distribution crime, and being a felon in possession of a firearm. He was found guilty of all three charges after a trial that concluded on May 21, 2019.
At trial, evidence showed that in January 2016, Phenix City Police responded to a call about a suspicious vehicle at a residence. Upon arrival, officers found a car that had been reported stolen out of Columbus, Georgia. When they approached the vehicle, Bossio was in the driver’s seat and officers saw a bag of what was later confirmed to be methamphetamine in his lap. They also discovered a handgun that was under his leg on the driver’s seat when he exited the vehicle. After conducting a search of the car, more methamphetamine was found, along with digital scales and multiple cell phones.
Bossio received a significant sentence in this case because the judge determined that he qualified as a career offender under the federal guidelines due to his violent criminal history. There is no parole in the federal system.
“Far too many people are illegally carrying guns to support their drug trafficking trade,” said U.S. Attorney Franklin. “My office will continue to work with our federal, state and local partners to identify and prosecute the most dangerous offenders that threaten our communities.”
ATF Special Agent in Charge Marcus Watson stated, “Reducing the potential for violent crime in this case was critical due to ATF partnering with our local, state and federal partners.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Phenix City Police Department. Assistant United States Attorneys Brandon Bates and Josh Wendell prosecuted the case.
Painting Contractor Sentenced to 46 Months’ Imprisonment in Connection with George Wade Bridge ProjectRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the painting contractor on the George Wade Bridge Project, Andrew Manganas, age 61, of Canonsburg, Pennsylvania and Panthera Painting, Inc., headquartered in Canonsburg, was sentenced on August 14, 2019, to 46 months’ imprisonment followed by five years’ on supervised release, by United States District Court Judge Sylvia H. Rambo for theft from union plans, wire fraud, and discharge of pollutants into the Susquehanna River. Judge Rambo also fined Manganas $20,000 and Panthera Painting, Inc. $200,000.
According to United States Attorney David J. Freed, Manganas and his company, Panthera Painting, Inc. were charged in a 46-count indictment for crimes related to Panthera’s role as a subcontractor on the multi-year George Wade Bridge restoration project. In September 2009, PennDOT awarded a contract for rehabilitation work on the George Wade Bridge to J.D. Eckman as the prime contractor. The George Wade Bridge spans the Susquehanna River on Interstate 81 in Cumberland and Dauphin Counties, Pennsylvania. The Wade Bridge Project was a federal oversight project, meaning that the Federal Highway Administration of the U.S. Department of Transportation conducted reviews and approvals during the project’s design and construction phases. The contract amount was $42,480,434.05 with the FHWA’s federal-aid programs reimbursing 90 percent of that cost. The Wade Bridge Project was scheduled to be completed on May 25, 2012, but was extended to September 27, 2013. In October 2009, Panthera was awarded a $9,875,000 subcontract by Eckman; that contract amount was increased to more than $10 million. The subcontract awarded to Panthera covered the blasting, resurfacing, and painting of the structural steel on the George Wade Bridge.
The federal oversight and funding of the contract required each contractor and subcontractor to submit Certified Payroll Reports for every worker and every pay period to certify that the appropriate prevailing wage was being paid to each worker. Manganas and Panthera pleaded guilty in January 2018, to submitting false payroll reports that did not accurately reflect the amount workers were being paid. Manganas paid only partial wages in a wage check that did not include overtime pay. He then paid overtime in a separate “per diem” check that did not properly deduct taxes and remittances, some of which were owed to the unions of which the workers were members. By under-reporting wages paid, Manganas defrauded the federal agencies paying for the bridge work. By failing to properly remit wages to the unions, Manganas effectively stole money from the workers and the union. Moreover, Manganas and Panthera pled guilty to knowingly discharging pollutants into the Susquehanna River over the course of three painting seasons of the Project. The contract and environmental laws prohibit the discharge of pollutants without a permit. Panthera and Manganas were supposed to utilize various methods to ensure that pollutants did not enter the Susquehanna River, including construction of “containment” to cover bridge areas being blasted clean and repainted. Containment involved using ropes, cables, fabric, metal pans and waste collection and recycling systems on segments of the bridge being blasted and repainted to prevent pollutants from being discharged into the River. Manganas knew he did not have a permit to discharge pollutants into the River, but Panthera workers, at Manganas’ direction and with his knowledge, utilized a variety of methods and equipment to discharge pollutants, including abrasive paint blasting materials, waste paint, and metal, into the Susquehanna River rather than collect them for recycling or disposal as hazardous waste.
“Judge Rambo’s significant sentence in this case recognizes the fraudulent conduct of the defendants, causing financial harm to the taxpayers, and the serious harm caused to our environment by the discharge of hazardous waste into the Susquehanna River, the lifeblood of the Chesapeake Bay,” said U.S. Attorney Freed. “This result sends a strong message to government contractors everywhere that fraudulent acts will be vigorously and aggressively investigated and charged. I commend our partners at the FBI, EPA, Department of Labor and Department of Transportation for their dedication and cooperation throughout this investigation.”
“Andrew Manganas enriched himself by cheating his workers and their unions, and defrauding the U.S. government,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI and our partners will continue to investigate and bring to justice those playing fast and loose with federal funds.”
“Clean, fresh water is one of Pennsylvania’s greatest resources,” said Jennifer Lynn, Special Agent in Charge of EPA's criminal enforcement program in the Middle Atlantic States. “The sentences in this case show that federal contractors will be called to account if they ignore laws aimed at protecting human health and the environment.”
“Andrew Manganas submitted fraudulent certified payrolls to the U.S. Department of Labor (DOL) stating employees were paid the required prevailing wages when, in fact, the employees were paid less in violation of the Davis-Bacon Act and Related Acts. We will continue to work with our law enforcement partners to protect the integrity of DOL programs and to ensure workers are paid proper wages for the work they perform,” said Marc Walker, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“Today’s sentencing of Andrew Manganas and Panthera Painting, Inc., for wire fraud, theft from union plans, and discharge of pollutants into the waterways sends a strong message that such activity will not be tolerated,” said Douglas Shoemaker, US DOT-OIG Regional Special Agent-in-Charge. “Together with our law enforcement and prosecutorial colleagues, we remain steadfast in our commitment to ensure the integrity of Federal-aid programs and protect the public and the environment from illegally discharged pollutants.”
The case was investigated by the U.S. Department of Labor, Office of Inspector General, the U.S. Department of Transportation, Office of Inspector General, the U.S. Environmental Protection Agency, Criminal Investigation Division, and the Federal Bureau of Investigation. Assistant U.S. Attorney James T. Clancy and Special Assistant U.S. Attorney Martin Harrell of EPA prosecuted the case.
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Osceola Mills Man Charged with Concealing over $380,000 in Cash from the Bankruptcy Trustee and CreditorsRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Andrew Lee Coleman, age 65, of Osceola Mills, Pennsylvania, was charged in a criminal information on August 13, 2019, for concealment of assets and false statements in bankruptcy proceedings.
According to United States Attorney David J. Freed, the indictment alleges that Coleman concealed over $380,000 in cash and a 1968 Camaro SS in connection with a bankruptcy action that he filed. He is charged with concealing the assets in monthly reports and other statements filed with the trustee responsible for the debtor's property and from the creditors and the United States Trustee.
The criminal information also charges Coleman with one count of concealment of bankruptcy assets and 11 counts of making false declarations in connection with the bankruptcy action.
The case was investigated by the Federal Bureau of Investigation and the Office of the United States Trustee for the Middle District of Pennsylvania. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Operators of fraudulent auto financing company sentenced to federal prisonRead the Press Release
ATLANTA - Michael Miller and Melvin Goode Wentt have been sentenced for their roles in a bank fraud conspiracy involving seven defendants, over 80 fraudulently obtained auto loans, and $1.7 million in bank and credit union losses. Four other co-defendants previously pled guilty. One defendant is awaiting extradition from the United Kingdom.
“These defendants’ ‘creative financing’ company specialized in ‘auto loan conversions,’ which was simply fraud,” said U.S. Attorney Byung J. “BJay” Pak. “This scam was designed to trick lenders, which in this case were mostly credit unions, into granting loans for sham car sales. While the businesses in their scheme may have been make-believe, the federal sentences they received are very real.”
“Bank fraud is not a victimless crime and these defendants will now have time to reflect on their choice to obtain these fraudulent auto loans,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI treats these types of financial crimes very seriously and warns anyone considering this type of criminal activity to also consider the fate these defendants face as a deterrent.”
“The defendants carried out a scheme to fraudulently obtain millions of dollars in loans to enrich themselves. The sentences handed down in this case will hold these individuals accountable for their criminal misconduct,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “Postal Inspectors will continue to work with our law enforcement partners to detect, investigate and mitigate the effects of these types of financial crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: The defendants, and their co-conspirators started the fraud scheme by incorporating businesses that, by name, appeared to be auto dealerships but, in fact, were just shell corporations. These fake companies had names like “Premier Luxury Motors,” “Platinum Motors Auto Sales,” and “5-Star Motorsports,” but they had no employees, no cars, no car lots, and no dealership licenses.
After establishing the fake companies, the conspirators recruited individuals to apply for car loans with banks and credit unions. The loan applicants would claim that they were purchasing a car from one of the fake companies, and would supplement their applications with fake vehicle purchase orders created by the conspirators. If a loan check was issued to the loan applicant, the proceeds would be deposited into financial accounts opened by the conspirators and held in the names of the fake companies. The conspirators and the loan applicants would then split the money and never pay back the lender. Because there were no cars to repossess, the lender would be left with nothing.
The scheme spanned approximately four years. Over that time, the conspirators sought over 80 auto loans, totaling approximately $2.7M in attempted fraud, and actually obtained about $1.7M.
A jury convicted Miller and Goode Wentt of conspiracy and bank fraud on May 14, 2019. The defendants in this case received the following sentences:
- Giovanni “Riq” Cartier, 55 of Austell, Georgia, was sentenced to four years, nine months in prison, to be followed by three years supervised release, and was ordered to pay $1,706,342.74 in restitution. Cartier pleaded guilty to bank fraud conspiracy on April 18, 2018.
- Melvin Goode Wentt a/k/a Melvin Goode, 59, of Brooklyn, New York, was sentenced to two years, ten months in prison, to be followed by five years of supervised release, and ordered to pay $765,603.25 in restitution.
- Michael Miller, 58, of Sandy Springs, Georgia, was sentenced to two years in prison, to be followed by five years of supervised release, and ordered to pay $316,826 in restitution.
- Rhaine Yamabushi a/k/a Marchelle Mathis, 45, of Florence, South Carolina, was sentenced to one year and a day in prison, to be followed by three years of supervised release, and ordered to pay $164,995 in restitution. Yamabushi pleaded guilty to bank fraud conspiracy on December 6, 2018.
- Vladimir Marcellus, 31, of Ventura, California, was sentenced to three years probation, with 240 days of home detention, and ordered to pay $164,995 in restitution. Marcellus pleaded guilty to bank fraud conspiracy on April 27, 2018.
- Kirk Evans, 46, of Ellenwood, Georgia, was sentenced to three years probation, with six months of home detention, and ordered to pay $47,799 in restitution. Evans pleaded guilty to bank fraud conspiracy on April 18, 2018.
This case was investigated by the Federal Bureau of Investigation and U.S. Postal Inspection Service.
Assistant U.S. Attorneys Samir Kaushal and John S. Ghose prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.- Giovanni “Riq” Cartier, 55 of Austell, Georgia, was sentenced to four years, nine months in prison, to be followed by three years supervised release, and was ordered to pay $1,706,342.74 in restitution. Cartier pleaded guilty to bank fraud conspiracy on April 18, 2018.
Okemah Man Sentenced to 33 Months for Ammunition PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that John Frazier Fish, age 38, of Okemah, Oklahoma, was sentenced to 33 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Muscogee Creek Nation Lighthorse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleges that on or about November 19, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, five rounds of Federal Brand .22 caliber ammunition, which had been shipped and transported in interstate commerce.
“The investigation that lead to this indictment began with a Muscogee Creek Nation Lighthorse patrol officer responding to a domestic disturbance involving weapons. Fortunately no one was injured, but the officer discovered the defendant, who has previous felony convictions, unlawfully possessed ammunition,” United States Attorney Brian J. Kuester said. “This office and our federal law enforcement partners are committed to working with tribal law enforcement agencies in their ongoing efforts to serve and protect in Indian Country.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Edward Snow represented the United States.Navajo Man from Arizona Indicted on Federal Assault Charge in New MexicoRead the Press Release
ALBUQUERQUE – A grand jury sitting in Albuquerque, N.M., has indicted Lyle Ryan Begaye, 42, an enrolled member of the Navajo Nation from Arizona, on an assault resulting in serious bodily injury charge.
The indictment alleges that Begaye assaulted a female victim on June 1, 2019, in Indian Country in Bernalillo County, N.M. Begaye was arraigned on the indictment on Aug. 13, 2019, in federal court in Albuquerque, and entered a not guilty plea. Yesterday, a U.S. Magistrate Judge ordered Begaye detained pending trial based on judicial findings that Begaye poses a danger to the community and a risk of flight.
Begaye initially was charged on June 3, 2019, in a criminal complaint which alleged that Begaye beat the victim approximately thirty times with a closed fist. According to the criminal complaint, the victim allegedly suffered four broken ribs and two fractured lumbar vertebrate in her spine as the result of the assault. The criminal complaint alleged that Begaye committed the crime on June 1, 2019, in To’hajiilee, which is located on the Navajo Indian Reservation in Bernalillo County, N.M.
On June 27, 2019, Begaye was indicted by a federal grand jury. The FBI arrested Begaye in Phoenix, AZ, on July 23, 2019, and the U.S. District Court for the District of Arizona ordered the U.S. Marshals Service to transport Begaye to New Mexico to face the charge in the indictment.
If convicted on the charge in the indictment, Begaye faces a statutory maximum penalty of ten years of imprisonment. Charges in criminal complaints and indictments are only accusations. Defendants are presumed innocent unless and until proven guilty.
The Albuquerque office of the FBI investigated this case, with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Thomas J. Aliberti is prosecuting the case.
Muskogee Man Sentenced to 120 Months for Methamphetamine Distribution, Possession of Firearm and AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Gatlin Gary Morgan, age 37, of Muskogee, Oklahoma, was sentenced to 120 months’ imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A); and for Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), and 924(a)(2). The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleges that on or about October 8, 2018, within the Eastern District of Oklahoma, defendant knowingly and intentionally possessed with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment also alleges that on or about October 8, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a Glock model 23 .40 caliber pistol and ammunition which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States.Missoula meth trafficker sentenced to six years in prisonRead the Press Release
MISSOULA—A Missoula man who admitted distributing methamphetamine in the community and trading firearms for drugs was sentenced today to six years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Blade Michael Sorenson, 23, pleaded guilty in March to possession with intent to distribute meth and to possessing a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge Dana L. Christensen presided.
The prosecution said in court records that from the summer of 2017 until about the fall of 2018, Sorenson was distributing large amounts of meth in the area and traded guns in exchange for drugs and cash. Multiple confidential informants told law enforcement of buying meth from Sorenson, seeing him with at least one pound of meth, trading firearms for meth, marijuana and cash and buying a .45 caliber handgun from him. A pound of meth is the equivalent of about 3,624 doses. In August 2018, a Missoula Police Department officer made a traffic stop on a vehicle in which Sorenson was a passenger. During a search of the vehicle, officers found meth and a semi-automatic handgun that Sorenson admitted were his.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by Montana Regional Violent Crimes Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Miami Man Sentenced to Two Years in Federal Prison for Aggravated Identity TheftRead the Press Release
Gulfport, Miss. – Jorge Alberto Perez, 57, of Miami, Florida, was sentenced today by U.S. District Judge Sul Ozerden to 24 months in federal prison, followed by one year of supervised release, for aggravated identity theft, announced U.S. Attorney Mike Hurst and Jere. T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans. Perez was also ordered to pay a $1,000 fine.
On February 17, 2018, Perez was detained by the Gulfport Police Department on suspicion of credit card fraud. During the course of the investigation, it was discovered that Perez was in possession of illegally obtained credit card account information.
On April 30, 2019, Perez was charged in a criminal information with aggravated identity theft. He pled guilty before Judge Ozerden the same day.
The Gulfport Police Department and Department of Homeland Security investigated the case. It was prosecuted by Special Assistant United States Attorney Joshua Paul Fortenberry.
Mexican Man Sentenced to over Four Months for Entering the U.S. After RemovalRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Santiago Velazquez-Cordova, a citizen of Mexico, was sentenced today in U.S. District Court by Judge Lance E. Walker to time served for entering the United States after being removed or deported. He has been in custody since March 28, 2019, and pleaded guilty on June 21, 2019.
According to court records, Velazquez-Cordova was ordered removed from the United States in 2003, and physically left the country in March 2010. He was found again in the United States a few days later, and was again removed on April 9, 2010. He was subsequently found in the United States at Waterville, Maine on March 28, 2019, and arrested. He had not applied for reentry to the United States, and was not legally authorized to reenter.
The investigation was conducted by the Border Patrol of the United States Department of Homeland Security, U.S. Customs and Border Protection.
Mexican Citizen Pleads Guilty to Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Lazaro Juarez-Martinez, age 30, and a citizen of Mexico, pled guilty on Wednesday to illegal re-entry into the United States, and was immediately sentenced to time served (110 days in jail).
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
As part of his plea of guilty, Juarez-Martinez admitted that on April 26, 2019, he entered the United States from Canada by walking across the international boundary near Fort Covington, New York, avoiding United States immigration and customs inspection. Juarez-Martinez encountered and was subsequently apprehended by United States Border Patrol Agents near Peru, New York, nearly 80 miles from the international boundary.
Prior to this case, in 2016, Juarez-Martinez entered the United States near Naco, Arizona, and was apprehended and ordered removed by an immigration judge in Hebronville, Texas, that same year.
This case was investigated by United States Border Patrol and prosecuted by Assistant U.S. Attorney Troy Anderson.
McAlester Man Sentenced to 70 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kody Oscar Maynard, age 31, of McAlester, Oklahoma, was sentenced to 70 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Pittsburg County Sheriff’s Office, the District 18 Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about May 8, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Bushmaster Firearms International, Model XM15-E2S, .223-5.56mm caliber, semi-automatic rifle, a Stoeger, Model 2000, 12-gauge semi-automatic weapon made from a shotgun, and ammunition which had been shipped and transported in interstate and foreign commerce.
United States Attorney Brian J. Kuester said. “The members of this office and our federal law enforcement partners are committed to assisting local agencies combat violent crime. Enforcement of federal firearms statutes against those who have a history of violent felony convictions is one way we are able to help police and sheriff’s departments, district attorneys, and other agencies that have public safety as a top priority.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.Mars, PA Man Sentenced to 4 Years in Federal Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH, PA - A resident of Mars, Pennsylvania, has been sentenced in federal court to four years’ (48 months’) imprisonment, followed by 8 years’ supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States Senior District Judge Nora Barry Fischer imposed the sentence on David McAnally, 64.
According to information presented to the court, McAnally, on September 4, 2015, unlawfully possessed more than 500,000 still images and videos in computer graphics files depicting minor females, some of whom were under the age of 12 years, engaging in sexually explicit conduct. McAnally received and distributed the images through Bit Torrent, a peer-to-peer Internet file-sharing network.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the successful prosecution of McAnally.
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.justice.gov/psc.
Man arrested in connection with the murder of Shreveport Police Officer Chateri Payne pleads guilty in federal court to firearms and drug chargesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Glenn Frierson, 38, of Shreveport, pleaded guilty this morning before U.S. Magistrate Judge Mark L. Hornsby to possession of a firearm by a convicted felon and possession with intent to distribute controlled substances. Local authorities arrested Frierson on January 15, 2019, in connection with the death of Shreveport Police Officer Chateri Payne.
According to the documents filed at the guilty plea, Shreveport police searched the defendant’s place of business on May 3, 2018. As police officers entered the business, Frierson placed a pistol on the restroom floor that opened into his barber stall. The officers found the Smith & Wesson, Model SD40, .40-caliber pistol, which was loaded with 12 rounds of ammunition. Frierson owned the pistol and carried it for protection when selling drugs. He was also found with 28 grams of pure methamphetamine, which was stored inside his backpack and inside of a hidden compartment of a false beverage container. Frierson also possessed a scale to weigh drugs.
Glenn Frierson was a convicted felon at the time he possessed the pistol. He pleaded guilty on May 4, 2009, to possession with intent to distribute cocaine and was sentenced to 10 years in prison, eight of which were suspended. It is illegal under federal law for a convicted felon to possess a firearm or ammunition.
Frierson faces 10 years in prison for illegally possessing a firearm and 20 years in prison for drug distribution. He also faces three years of supervised release and a $1 million fine. Hicks set sentencing for December 11, 2019.
The ATF and Shreveport Police Department investigated the case. Assistant U.S. Attorney Cadesby B. Cooper is prosecuting the case.