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Wednesday 3 July 2019
Silver Spring Man Sentenced to 75 Months in Federal Prison for Bank Fraud Conspiracy and Aggravated Identity Theft with Losses of Hundreds of Thousands of DollarsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Emmanuel Kusi Appiah, a/k/a Manny, age 47, of Silver Spring, Maryland, to 75 months in federal prison, followed by five years of supervised release, for conspiracy to commit bank fraud, four counts of bank fraud, and two counts of aggravated identity theft, in connection with a years-long bank fraud scheme that resulted in losses of hundreds of thousands of dollars. A federal jury convicted Appiah on March 12, 2019, after a five-day trial.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Chief Robert D. MacLean of the U.S. Park Police; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service.
According to the evidence presented at his trial, from June 2013 through March 2018, Appiah committed a bank fraud scheme that defrauded individuals and financial institution victims of several hundred thousand dollars.
Specifically, the trial evidence proved that Appiah conspired with others to open bank accounts at 10 different financial institutions using the stolen identities of at least five individual victims, and under the business names of five shell corporations, including Global Tax Services Incorporated, Merchandise Services Incorporated, Imperial Pipe Incorporated, SJ Metal Incorporated, and Morgan Incorporated. Appiah and his conspirators then used those fraudulent accounts to deposit stolen and altered business checks, convenience checks, and tax refunds. Witnesses testified that Appiah then withdrew the fraudulent proceeds in cash, transferred the proceeds to other fraudulent accounts, or laundered the proceeds through the purchase of money orders, which Appiah and others used for their personal benefit.
United States Attorney Robert K. Hur commended the U.S. Park Police and the U.S. Postal Inspection Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Burden H. Walker, who prosecuted the case.
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Sex Trafficker Sentenced to 40 Years in Federal PrisonRead the Press Release
INDIANAPOLIS –United States Attorney Josh J. Minkler announces the sentencing of convicted sex trafficker Elijah Vines, aka “Elijah Kilt Vines,” to 40 years in federal prison. Judge James R. Sweeney II also sentenced Vines to a lifetime of Supervised Release and ordered him to pay over $10,000 in restitution to the minor victim.
“Sex trafficking, particularly of children, simply cannot be tolerated. Our children should be able to grow up without being offered for sale by adults who seek to profit from their vulnerability and who place price tags on their innocence,” said Minkler. “A necessarily harsh sentence will keep this defendant behind the walls of a federal prison until at least 2053.”
In United States v. Elijah Vines, a jury returned verdicts against the Defendant on January 28, 2019. Jurors convicted Vines of sex trafficking of a minor, conspiracy to commit sex trafficking of a minor, interstate transportation of a minor, and interstate transportation in furtherance of racketeering.
Vines travelled to Ohio to transport a teenager, who had run away from foster care, back to Indiana so that he could sexually exploit her. Evidence at trial showed that Vines posted advertisements for this girl using his account on Backpage.com, a website frequently used for commercial sex, which was shut down by the Department of Justice in April of 2018.
Prosecutors presented evidence from Vines’ Facebook account in which he shared images of the minor child, bragging that the girl was ready to do what he said at a motel. The Government also presented the jurors with numerous jail calls in which Vines directed co-conspirators to traffic the girl until Vines was released from jail. In addition to the minor girl, evidence showed that Vines offered other women for sale through his Backpage and Facebook accounts, and he boasted that he had multiple women who sold themselves for him. At the time that Vines committed his crimes, he was on probation in Marion County, and he had prior convictions for Robbery. In addition to this case, Vines is awaiting trial for Possession of a Firearm by a Serious Violent Felon.
The case began in October of 2016 as an investigation by the IMPD Human Trafficking and Vice Unit, after the child disclosed information while being treated at Riley Hospital for Children. Months of investigation, including work by the FBI, the Indiana State Police, and the Marion County Prosecutor’s Office, revealed evidence in the form of social media postings, online advertisements, police reports, motel records, jail calls, cell phone evidence, and email records.
“This result is a testament to the power of a team: the concerted effort of law enforcement, victim services, medical professionals, and prosecutors to bring about a just result,” said Minkler. Every child in this community - no matter how vulnerable, how broken, or how isolated - should know that we stand ready to stand with you.”
“The victimization of any member of our community, and especially our city’s children, is unacceptable,” said Indianapolis Metropolitan Police Department Chief Bryan Roach. “The officers and detectives of the IMPD remain committed to holding accountable those who seek to prey on our most vulnerable residents. We will continue to work closely with our partners in law enforcement to achieve meaningful results.”
“Human trafficking takes many forms, often going hidden and unnoticed in our own community. With growing attention and public understanding of this crime, we hope that more individuals will recognize the red flags and report their suspicions to law enforcement,” Marion County Prosecutor Terry Curry stated. “We are proud to work with our public safety partners to investigate and ultimately bring victims out of those shadows, free to live a safe, healthy life.”
“Children in the foster care system are some of our most vulnerable population. As they seek stability, love, and a place to belong, we must assure these at-risk kids do not fall prey to adults with malicious intentions. These convictions should serve as a warning: if the victim is under 18, it’s not “pimping.” It’s trafficking, and it is a federal crime. We will not stop seeking justice for these victims.”
This case was prosecuted at trial by Assistant United States Attorneys Lawrence Hilton and Kristina Korobov and Victim-Witness Coordinator Stephanie Lloyd. It was handled in the Marion County Courts by Deputy Prosecutor Stephanie Edwards. IMPD was represented by Detectives Sheryl McGlinsey and Task Force Officer Gabriel Cuevas. FBI Special Agents Michelle Bartelson and Elizabeth Carlson, along with Victim Specialist Sarah Abdullah, worked this case. Indiana State Police Sergeant Jennifer Barnes presented the computer forensic evidence.
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 utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.2
Second Tahlequah Woman Pleads Guilty to ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jimi Denise Day, age 67, of Tahlequah, Oklahoma, entered a guilty plea to Conspiracy, in violation of Title 18, United States Code, Section 371, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Information alleges that in or about January 2019, in the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally conspire, confederate and agree with others both known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 841(a)(1), namely, Possession with Intent to Distribute and Distribution of Methamphetamine.
The charges arose from an investigation by the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
Second Georgia Man Pleads Guilty to Check Cashing SchemeRead the Press Release
ALBANY, NEW YORK – Javonte J. Johnson, age 22, of Decatur, Georgia, pled guilty today to creating counterfeit checks and then cashing them at banks in Saratoga and Warren Counties.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.
Johnson pled guilty to one count of conspiring to commit bank fraud and one count of aggravated identity theft.
Johnson admitted that he and co-conspirators, including Alphonso L. Howard, Jr., defrauded financial institutions by intercepting and stealing checks sent through the U.S. Mail; using information from these legitimate checks to create counterfeit checks drawn on the same financial accounts as the stolen, legitimate checks; and then cashing and attempting to cash the counterfeit checks at financial institutions in Saratoga and Warren Counties. Johnson agreed that he caused $164,077.70 in losses.
Johnson, who has been in custody since New York State Police arrested him on September 26, 2018, will be sentenced on October 29, 2019. He faces at least 2 years and up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision. 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.
On April 9, 2019, Howard, age 28, of Decatur, Georgia, pled guilty to one count of conspiring to commit bank fraud and one count of aggravated identity theft. He is scheduled to be sentenced on August 13, 2019.
This case was investigated by the FBI and the New York State Police-Troop G, and is being prosecuted by Assistant U.S. Attorney Michael Barnett. Other agencies have assisted in the investigation and prosecution, including the District Attorney’s Offices in Jefferson, Saratoga and Warren Counties, the Glens Falls Police Department, the Burlington Police Department (Vt.), Vermont State Police, and the Stowe Police Department (Vt.).
Saltville Man Sentenced to 262 Months in Prison for Role in Methamphetamine ConspiracyRead the Press Release
Abingdon, VIRGINIA – Jeremy Olinger, the second defendant to be sentenced after being convicted of conspiring to traffic methamphetamine in Smyth County, was sentenced last week to 262 months in federal prison, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Olinger, 38, previously pleaded guilty to one count of conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine and one count of possessing with the intent to distribute and distributing 500 grams or more of methamphetamine. On June 3, 2019, Adam Conley, 37, of Glade Spring, Va., was sentenced to 60 months in prison for his role in the conspiracy.
Two other co-defendants, Amanda Crystal Moore, 31, of Chilhowie, Va., and Michelle Renee Boardwine, 36, of Saltville, Va., will be sentenced later this year.
“Methamphetamine is a deadly drug that has devastating effects on our communities,” U.S. Attorney Cullen stated today. “I am grateful for the dedication of our law enforcement partners in disrupting this major source of supply in southwest Virginia and sending him to federal prison for over 20 years.”
“Our communities continue to suffer from the effects of dangerous drugs, like crystal ice methamphetamine,” Attorney General Herring stated today. “We will continue to aggressively prosecute those who bring this drug into the Commonwealth and work with our law enforcement partners to keep the Commonwealth safe.”
According to documents filed with the court, from September 2015 through November 2016, Olinger conspired with at least five individuals to distribute methamphetamine throughout the Western District of Virginia, and elsewhere. Specifically, Olinger admitted to obtaining “crystal ice” methamphetamine, a potent form of the drug, by the pound, two or three times per week, sometimes traveling to sources located in California. The crystal ice Olinger obtained and distributed was an extremely pure form of the drug. Once obtaining the drug, Olinger further distributed it to his sources of distribution as a source of personal income. Olinger admitted to trafficking 5 to 15 kilograms of crystal ice during the life of this conspiracy.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Smyth County Sheriff’s Office, and the Smyth County Commonwealth Attorney’s Office. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Special Assistant United States Attorney Roy Evans are prosecuting the case for the United States.
Recently Retired School Psychologist Arrested on Child Pornography ChargesRead 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 David Michael Calaiacovo, 61, of Hamburg, NY, was arrested and charged by criminal complaint with receipt of child pornography. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, in June 2019, Homeland Security Investigations in Buffalo (HSI) received a report from the National Center For Missing and Exploited Children (NCMEC) via the New York State Police regarding images of child pornography which were subsequently traced to the defendant.
Also in June 2019, HSI Buffalo received five additional reports from NCMEC via the New York State Police. Once again the reports involved images of child pornography and were traced to Calaiacovo.
The images in all six reports included naked underage and pre-pubescent children, some involved in sexual activity.On June 27, 2019, a search warrant was executed at the defendant’s residence and several electronic devices were seized, including two laptop computers, cell phones, SD memory cards, CD’s and DVD’s, and video tapes. A preliminary examination has identified at least 400 images constituting child pornography.
The defendant recently retired from his position as a school psychologist with the West Seneca School District.
“This is the third time in as many months that an individual in a position of trust involving children has been arrested on child pornography charges,” stated U.S. Attorney Kennedy. “It is our duty zealously to protect the most vulnerable among us, and these cases should serve as a warning to anyone who may engage in similar criminal behavior, we will find you, arrest you, and we will prosecute you.”
“This case is particularly disturbing because the defendant has long occupied an important role in our community,” said HSI Buffalo Special Agent-in-Charge Kevin Kelly. “As special agents, our work now will hopefully begin the road to justice and healing for anyone who has been impacted by this alleged activity.”
Members of the public who have specific information related to this case are urged to contact the HSI Buffalo Office Child Exploitation Tip Line at 716-464-6070 or email [email protected]. HSI victim-witness specialists will be available to assist any parent or guardian should they need victim-related resources.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Pittsburgh Woman Helped her Bank Robber Son Hide from PoliceRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of accessory after the fact, for assisting the "Sorry, Happy Holidays" bank robber, United States Attorney Scott W. Brady announced today.
Melissa Kane, 48, pleaded guilty to Count Three of a three-count Indictment, which also charges her son, Brent Richards, who pleaded guilty to Count One of the Indictment, charging him with armed bank robbery, on June 25, 2019, before United States District Judge Peter J. Phipps.
In connection with the guilty plea, the Court was advised that Ms. Kane knew that her son, Brent Richards, robbed the Citizens Bank located at 31 Foster Avenue in Pittsburgh, at gun point, on January 8, 2018, and she assisted Mr. Richards, following the robbery, by allowing him to stay at her residence, disposing of the clothing worn by Mr. Richards and the bb gun used by Mr. Richards, and later denying any knowledge of or involvement in the bank robbery, when interviewed by law enforcement. The Court was further informed that Ms. Kane was engaged in a physical altercation with Mr. Richard’s former girlfriend, who Ms. Kane believed would tell law enforcement that Mr. Richards had robbed the bank.
Judge Phipps scheduled sentencing for Nov. 6, 2019, at 10:30 a.m. The law provides for a maximum sentence of 12 years and six months in prison, a fine of $125,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Ms. Kane remains on bond pending the sentencing hearing.
Assistant United States Attorneys Rebecca L. Silinski and Timothy M. Lanni are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Crafton Borough Police Department, the Allegheny County Sherriff’s Office, and the West Mifflin Police Department conducted the investigation leading to the prosecution of Kane.
Pittsburgh Man Sentenced to Nearly 6 Years in Prison for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 4 years and 9 months (57 months) of imprisonment and six years of Supervised Release on his conviction of charges involving guns and drugs, United States Attorney Scott W. Brady announced today.
Chance Rice, 26, had previously pleaded guilty to three counts before United States District Judge Cathy M. Bissoon.
According to information presented to the Court, Rice was involved in three separate federal investigations. The first occurred as a result of the September 16, 2015, candlelight vigil shooting. There, multiple people were injured, and multiple guns were fired, as family members and friends held a vigil for the one-year anniversary of the shooting death of a teenage boy in Homewood. The joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pittsburgh Bureau of Police (PBP) revealed that the person who fired one of the guns during the vigil shooting later transferred his gun to an individual who was subsequently shot and killed. Before his death, that person transferred the gun to Rice, and Rice transferred it to a defendant named Keith Lovelace. Lovelace and Rice have both been prosecuted in federal court, while the shooter is pending state charges.
The second incident started when Rice told his former girlfriend that he had recently been shot at and that she needed to buy a gun for her own protection. Rice quickly obtained possession of that gun. On October 31, 2015, Edgewood Police officers stopped the vehicle Rice was driving and noticed a spent casing on the dashboard and a black pistol in the car. Rice fled in the vehicle and was a wanted fugitive until his December 18, 2015 arrest. Rice had prior Allegheny County felony convictions in 2014 for carrying a firearm without a license and for dealing cocaine. These convictions made it illegal for Rice to subsequently possess a firearm or ammunition, under federal law.
Rice was being housed in the Butler County Jail (BCJ) while awaiting his trial. On July 10, 2018, the Deputy Warden of the BCJ received information that caused her to arrange for Rice’s cell to be searched. Guards located drug-soaked paper in Rice’s cell. The lab determined that the paper contained a substance called 5 Flouro ADB, a type of synthetic marijuana. In Court, Rice admitted to possessing this drug to provide to other inmates.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
United States Attorney Brady commended the ATF, the Pittsburgh Bureau of Police, the Butler County Jail, the Edgewood Police Department, and the Pennsylvania Board of Probation and Parole for the investigations that led to the successful prosecution of Rice.
Pauls Valley Couple Charged with Producing Child PornographyRead the Press Release
OKLAHOMA CITY – A federal grand jury has returned an indictment charging CHRISTINA NELSON-CODDINGTON, 29, and GERRAD CODDINGTON, 25, both of Pauls Valley, with producing child pornography, announced United States Attorney Timothy J. Downing.
According to a six-count indictment, both defendants used a minor identified as Jane Doe to engage in sexually explicit conduct to produce a video and photographs. The indictment alleges the defendants produced the video and photographs on various dates in May and June of 2019 and used materials that had been transported in interstate commerce.
Both defendants were arrested on June 14 on related charges lodged by the Oklahoma Attorney General’s Office. They are currently in custody in the Garvin County jail on $5 million bonds.
"I’m grateful both for the tip that led to this prosecution and for Attorney General Hunter’s diligence in addressing these sorts of crimes against children," said U.S. Attorney Downing. "My office will continue to work with state law enforcement under laws enacted by Congress to eliminate child pornography and the harm it causes our youngest citizens."
In the event of a conviction, each count would carry a mandatory minimum sentence of 15 years in prison and a maximum of 30 years, in addition to a fine of up to $250,000. These charges also call for a term of supervised release of not less than five years and up to life and a total special assessment of $55,100.
This case is the result of a tip sent to the Oklahoma Internet Crimes Against Children Task Force and an investigation by the Oklahoma Attorney General’s Office, U.S. Homeland Security Investigations, and the Pauls Valley Police Department. This federal case is being prosecuted by Assistant U.S. Attorney Brandon Hale.
The public is reminded that these charges are merely allegations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Oregon Man Pleads Guilty for Instagram Threats Against Portland Mayor Ted WheelerRead the Press Release
PORTLAND, Ore.—Kermit Tyler Poulson, 40, pleaded guilty today to one count of transmitting threatening communications with the intent to extort Portland Mayor Ted Wheeler.
According to court documents, on October 9, 2018, Poulson posted multiple threatening comments on Mayor Wheeler’s personal Instagram account. Poulson threatened to firebomb the mayor’s home if he did not immediately fire a Portland police officer recently involved in an on-duty shooting. Investigators tracked the IP address associated with the comments to a Portland residence where Poulson was staying. Poulson was present when investigators searched the property and after initially making a number of misleading statements, admitted that he alone was responsible for the comments.
Poulson faces a maximum sentence of two years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on October 2, 2019 before U.S. District Court Judge Michael H. Simon.
As part of the plea agreement, Poulson has agreed to forfeit property used to facilitate his crimes identified by the government prior to sentencing.
This case was investigated by the Portland FBI Joint Terrorism Task Force (JTTF) and the Portland Police Bureau (PPB). The Portland JTTF includes FBI special agents and more than a dozen state and local law enforcement officers.
Norton Doctor Arrested on Federal Criminal ComplaintRead the Press Release
Abingdon, VIRGINIA – Dr. Raymond Michael Moore, a Norton-based, licensed, medical doctor, was arrested this morning and charged via federal criminal complaint with obtaining schedule II and schedule IV controlled substances by fraud or misrepresentation, failing to maintain proper records for schedule II and schedule IV controlled substances, and making false statements. United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring made the announcement.
The criminal complaint charges Moore, 61, of Wise, Va., with one count of acquiring, obtaining, or possessing schedule II and schedule IV controlled substances by misrepresentation, fraud, forgery, deception, or subterfuge, one count of failing to maintaining records for schedule II and schedule IV controlled substances received, delivered or shipped and one count of making false statements.
“It is critical that physicians and other health-care providers who prescribe controlled substances scrupulously follow the law and standards of care to ensure that these drugs are not diverted and abused,” U.S. Attorney Cullen stated today. “When these medical professionals violate their Hippocratic oaths – and essentially act as drug dealers – we will use all available resources to send them to federal prison.”
“It’s so critical that we maintain tight controls over the supply of prescription drugs because opioid abuse and dependence often has its roots in the medicine cabinet with the misuse of prescription medications,” said Attorney General Herring.
“This is once again a prime example of why the DEA’s Tactical Diversion Squads were formed throughout the nation,” said Jesse Fong Special Agent in Charge of the Washington Division Office. “We have no higher priority than investigating drug-dealing physicians and other corrupt health-care practitioners and putting them in federal prison. Doctor Moore flooded Southwestern Virginia, with his opioid prescriptions. The Drug Enforcement Administration’s Tactical Diversion Squads will relentlessly investigate and arrest these drug dealers disguised as doctors.”
According to documents filed with the court, beginning in July 2016 and continuing to January 2019, Moore intentionally, and without authority, acquired and possessed hydrocodone tablets, oxycodone-acetaminophen tablets, fentanyl transdermal system, meperidine tablets, Alprazolam tablets, Lorazepam tablets, clonazepam tablets, tramadol, and diazepam, through fraud, forgery or deception. The defendant also failed to maintain the required records for these controlled substances.
Search warrants executed at the home and medical offices of Moore revealed many of the same schedule II and schedule IV controlled substances were found at Moore’s home. The results of the search led investigators to conclude that Moore was unlawfully prescribing schedule II and schedule IV medication to patients in order for the same medication to be returned to Moore for personal ingestion.
This case was brought by the Appalachian Regional Prescription Opioid Strike Force. The investigation of the case was conducted by the Roanoke Office of the Drug Enforcement Administration’s Tactical Diversion Squad. The Department of Health and Human Services Office of Inspector General, Virginia State Police, Southwest Virginia Drug Task Force, Wise County Sheriff’s Office, Wise County Commonwealth’s Attorney’s Office, Norton Police Department, and Town of Wise Police Department assisted with the search warrant executions. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Major Crimes and Emerging Threats Unit, will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Niagara Falls Man Sentenced for Involvement in Multi-Million Dollar Heroin, Cocaine, and Fentanyl ConspiracyRead 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 Maulana Lucas, 45, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, five kilograms or more of cocaine, and 400 grams or more of fentanyl, was sentenced to serve 84 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between January 2013 and September 2015, the defendant and his girlfriend formed a relationship with co-defendant Darryl Williams to assist Williams with receiving drug shipments from California, distributing the drugs, and collecting proceeds the Western District of New York and elsewhere. In the Western District of New York alone, the defendant assisted in collecting a total of approximately $19,000,000 in cash in drug proceeds.
In May 2014, as part of the conspiracy, Lucas was directed by co-defendant Williams to meet with another co-defendant, Sonia Hernandez, to receive kilograms of cocaine.From July 15, 2014, through March 18, 2015, Lucas received 29 pallets of shipments of illegal drugs from Herman Aguirre. Each pallet contained a mixture of approximately 30-50 kilograms of cocaine, heroin, and fentanyl. The drugs were then distributed in the Western District of New York and in other cities and states. The defendant assisted in breaking down pallets of drugs and in collecting drug proceeds from surrounding states. The drugs were shipped in crates or pallets, disguised as microwaves or furniture. The drugs were unloaded at a local warehouse. Lucas also directed his girlfriend to store kilograms of drugs in the bedroom of her apartment in the Western District of New York.
On March 23, 2015, Buffalo Police seized 22 kilograms of cocaine, two kilograms of heroin, and eight kilograms of fentanyl at the defendant’s girlfriend’s apartment.Lucas was arrested in August 2016 along with 16 other defendants. All defendants have been convicted.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent-in- Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larson, New York Field Division.
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New Orleans Man Pleads Guilty to Heroin ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GEORGE CARTER, age 63 of New Orleans, pled guilty Thursday, June 27, 2019 to conspiracy to distribute and to possess with intent to distribute more than one kilogram of heroin.
According to court documents, CARTER and others conspired to distribute and to possess with intent to distribute one hundred grams or more of heroin.
CARTER faces a minimum term of imprisonment of five years and a maximum term of forty years of imprisonment. A fine of up to $5,000,000 may also be imposed or the greater of twice the gross gain to the defendant or twice the gross loss to any person. CARTER will be placed on supervised release after imprisonment for a period of not less than four years. Additionally, a $100 special assessment fee will be assessed. U.S. District Court Judge Ashe set sentencing for October 3, 2019.
U.S. Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Maria M. Carboni are in charge of the prosecution.
New Orleans Man Pleads Guilty to Firearms and Narcotics ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ERIC ROBINSON, age 26, of New Orleans, has pleaded guilty Thursday, June 27, 2019 to federal firearms and narcotics violations.
According to court documents, ROBINSON, a convicted felon, possessed firearms on two separate occasions between 2017 and 2018, in violation of Title 18, United States Code, Section 922(g)(1) and 924(a)(2). On April 3, 2018, ROBINSON possessed with the intent to distribute fentanyl in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). ROBINSON also conspired with others to possess firearms in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(o).
The Court set sentencing in this matter for September 9, 2019. ROBINSON faces, as to count one of the superseding bill of information, a maximum term of imprisonment of 20 years, a fine of $250,000, up to three years of supervised release after imprisonment, and a $100 special assessment. As to counts two and four, ROBINSON faces a maximum term of imprisonment of 10 years, a fine of $250,000, up to three years of supervised release after imprisonment, and a $100 special assessment. As to count 3, ROBINSON faces a maximum term of imprisonment of 20 years, a fine of $1,000,000, at least 3 years of supervised release after imprisonment, and a $100 special assessment. As to count five, ROBINSON faces a minimum of 5 years and a maximum of life imprisonment, up to 5 years supervised release after imprisonment, a fine of $250,000, and a $100 special assessment.
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.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the New Orleans Police Department, and the Louisiana State Police in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne.
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Maryland Woman Pleads Guilty to Theft of Government Money and Aggravated Identity TheftRead the Press Release
A Maryland woman pleaded guilty to theft of government money and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney for the District of Maryland Robert K. Hur.
According to court documents, between 2011 and 2013, Stephanie Twyman was part of a conspiracy to fraudulently obtain tax refund checks by filing false tax returns with the Internal Revenue Service (IRS) using the names and Social Security numbers of unemployed individuals. Once the refund checks in these individuals’ names were obtained, Twyman sent runners to cash the checks at a check cashing business in Clinton, Maryland, where co-conspirators worked as tellers. The runners brought the proceeds back to Twyman, who then paid the tellers for cashing the fraudulently obtained checks. The total tax loss resulting from Twyman’s fraudulent conduct is approximately $566,261.
Sentencing is scheduled for Oct. 4, 2019. Twyman faces a maximum sentence of 10 years in prison on the theft count and a mandatory two years in prison on the aggravated identity theft count, a term of supervised release, restitution, and a fine.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked agents of the Department of Treasury, Office of Inspector General, and IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney William Guappone and Assistant U.S. Attorney Gregory Bernstein, who are prosecuting the case.
Maryland Man Indicted for Interstate Kidnapping and Sexual Assault of a 13-year-old GirlRead the Press Release
A 21-year-old man, of Oxon Hill, Maryland was charged in the United States District Court for the District of Columbia in a seven-count indictment on Friday. The announcement was made by Jessie K. Liu, United States Attorney for the District of Columbia, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Charles A. Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office.
On June 28, 2019, a seven-count indictment was returned by a federal grand jury charging the man with two counts of kidnaping, four counts of sexual abuse, and violation of a protection order. The charges carry a mandatory-minimum sentence of 20 years imprisonment, a maximum sentence of life imprisonment, and lifetime sex offender registration. The defendant has not been named because this is an intra-family offense against a minor victim.
In 2017, the defendant inappropriately touched the victim’s breasts and tried to further sexually assault her. As a result, a protection order was signed by a Maryland judge. At that time, the defendant was a special police officer and had recently applied for a position as an armed police officer. That application was rejected because of the pending protection order. On December 18, 2018, the defendant waited for the then 13-year-old victim to return from school, and abducted her from Maryland. The defendant forced the victim into his car, handcuffed her, and drove into D.C. to an abandoned home. The defendant forcibly raped the victim. The defendant released the victim three hours later, and the victim immediately reported the attack to family members. Forensic testing revealed that the defendant’s DNA was on the victim. A search warrant executed on the defendant’s vehicle recovered the handcuffs and other items.
U.S. Attorney Liu stated that the U.S. Attorney’s Office is deeply committed to the prosecution of those who commit sexual assaults in the District of Columbia, particularly those who commit such crimes against children. Liu commended the work of the entire team of individuals who assisted with the investigation including Marisa West, Jodi Lazarus, and Elana Suttenberg, AUSAs in the Office’s Sex Offense and Domestic Violence Section (SODV), Anthony Scarpelli, an AUSA in the Office’s Violent Crime and Narcotics Trafficking Section, Victim/Witness Program Specialist Yvonne Bryant, SODV Paralegals Tiffany Jones and Tiffany Fogel, and Forensic Child Interviewer Tracy Owusu.
Finally, U.S. Attorney Liu commended the work of the MPD’s Youth and Family Services Division and the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task Force.
Marshall Man Sentenced to 24 Months in Federal Prison for Failure to Pay Employee Payroll TaxesRead the Press Release
Fort Smith, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Eric De Priest, age 47, of Marshall, Arkansas, was sentenced Monday to serve 24 months in federal prison followed by three years of supervised release and ordered to pay a total of $284,736.30 in restitution for his conviction on one felony count of Willful Failure to Pay Over Payroll Taxes. The Honorable P.K. Holmes III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, Eric De Priest (De Priest) is the co-owner of ZacBac Apparel LLC (ZacBac), a limited liability company formed in Arkansas in 2002. ZacBac’s principal place of business is in Marshall, Arkansas. ZacBac manufactures clothing for government agencies such as the United States Postal Service and the military.
The Internal Revenue Code requires employers to pay to the United States of America the employer’s fair share of Federal Insurance Contribution Act taxes, also called FICA and social security taxes, and Medicare taxes owing on wages paid to employees. The Internal Revenue Code also requires employers to withhold from wages of their employees the employees’ share of FICA taxes, Medicare and social security taxes, and income taxes (collectively, “payroll taxes”), to account for payroll taxes, and pay the withheld amounts of payroll taxes over to the United States of America.
Since 2005, De Priest exercised control over ZacBac’s financial transactions including, but not limited to, directing payments to creditors, authorizing payroll and submitting Federal Tax Deposits, and signing and filing payroll tax returns. Specifically, for multiple consecutive quarters from March 2009 through and including December 31, 2015, De Priest signed each of ZacBac’s Employer’s Quarterly Federal Tax Returns (known as a “Form 941”) as the “owner;” meaning, De Priest was the person responsible for collecting, truthfully accounting for, and submitting ZacBac’s payroll taxes to the United States.
Between July 2012 and September 2015, ZacBac withheld over $293,000.00 in trust fund taxes from employees’ wages and failed to pay over to the United States $284,736.30 of this amount. During this same time period, ZacBac diverted more than $247,000 of the trust fund taxes collected from employees’ wages.
Specifically, during the fourth quarter of 2014 that ended December 31, 2014, De Priest deducted and collected from the total taxable wages of ZacBac employees’ federal income taxes and Federal Insurance Contributions Act taxes in the sum of $24,710.25 that he did not then pay into the Treasury of the United States.
De Priest was indicted by a federal grand jury in September 2018 and entered a guilty plea in February 2019.
The investigation was conducted by IRS Criminal Investigations Division. Assistant United States Attorney Kyra Jenner prosecuted the case for the United States.
Manufacturers of "Spice" Convicted of Operating A Continuing Criminal Enterprise, Possessing and Distributing A Controlled Substance AnalogueRead the Press Release
LAS VEGAS, Nev. – Two individuals were convicted of 24 counts related to the manufacture of synthetic cannabinoids (commonly referred to as “spice”) today by a federal jury including operating a continuing criminal enterprise, manufacturing and possessing with the intent to distribute a controlled substance and controlled substance analogues, money laundering, mail and wire fraud, and related charges.
The verdict was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, United States Attorney Nicholas A. Trutanich of the District of Nevada, Assistant Special Agent in Charge Daniel W. Neill of the Drug Enforcement Administration, and Acting Special Agent in Charge Ismael J. Nevarez Jr. of the Las Vegas Internal Revenue Service-Criminal Investigation.
According to the evidence presented during the ten-day trial, the defendants, Charles Burton Ritchie, 48, of Park City, Utah, and Benjamin Galecki, 44, of Pensacola, Florida, committed these crimes in the District of Nevada, from March 21 to July 25, 2012. Specifically, the evidence showed that Ritchie and Galecki were the owners and managers of Zencense Incenseworks, a company that manufactured smokable synthethic spice and marketed their products as “potpourri,” “incense,” and “aromatherapy.”
The evidence showed that Ritchie and Galcki rented a warehouse in Las Vegas for the sole purpose of manufacturing spice products which contained the dangerous chemical XLR-11, which the jury found to be a controlled substance analogue. Ritchie and Galecki ordered XLR-11 from chemical suppliers in China and Hong Kong. At the Las Vegas warehouse, a Zencense employee mixed the XLR-11 with acetone, liquid flavoring and applied the chemical mixture to dried plant material. The warehouse employee mailed the compounded spice in draw string garbage bags to Ritchie and Galecki in Pensacola, Florida, where other workers placed the spice into small retail bags. The defendants sold their products with suggestive brand names including, “Bizarro,” “Orgazmo,” “Headhunter,” and “Defcon 5 Total Annihilation,” to smoke shops across the United States. From June 1 to July 25, 2012, Ritchie and Galecki were responsible for manufacturing and distributing approximately 4,000 pounds of spice and grossed more than $1.6 million dollars in sales.
The minimum penalty for a continuing criminal enterprise is 20 years’ imprisonment and a maximum penalty of life imprisonment. The penalties for the controlled substance analogue, wire fraud, mail fraud, and six money laundering counts each carry a maximum of 20 years’ imprisonment.
This case was investigated by the Internal Revenue Service-Criminal Investigation, the Drug Enforcement Administration, and the Las Vegas Metropolitan Police Department. Assistant United States Attorney James Keller of the District of Nevada and Trial Attorneys Cole Radovich and Jason Ruiz of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
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Local Man Indicted for Importing 3,000 Oxycodone Pills into United StatesRead the Press Release
McALLEN, Texas – A 40-year-old Mission man has been charged with importing oxycodone into the United States from Mexico, announced U.S. Attorney Ryan K. Patrick.
Jose Luis Guerra Jr., was originally charged by criminal complaint June 7, 2019, after being apprehended as he attempted to cross the border from Mexico at the Progreso Port of Entry. Today, a federal grand jury returned the four-count indictment charging him with conspiracy, importing and possessing with intent to distribute Oxycodone. He is expected to appear for his arraignment before U.S. Magistrate Judge Ormsby July 11, 2019.
Guerra allegedly attempted to enter the United States at the Progreso Port of Entry June 7, 2019, by foot. The complaint alleges he had numerous cookie boxes in his possession. Authorities searched the boxes and located approximately 3,000 oxycodone pills, totaling approximately 612 grams.
If convicted, Guerra faces up to 20 years prison and a possible $1 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorneys Steven Belt and Michael Mitchell are prosecuting the case.
An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Leader of Springfield Heroin Trafficking Organization Pleads GuiltyRead the Press Release
BOSTON – The leader of a large-scale heroin trafficking organization pleaded guilty in federal court in Springfield yesterday. The organization was supplied by sources in the Dominican Republic and New York City.
Alberto Marte, 33, of Springfield, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute 1000 grams or more of heroin, five counts of distribution of and possession with intent to distribute more than 100 grams of heroin, one count of distribution of and possession with intent to distribute heroin, one count of conspiracy to distribute and possess with intent to distribute fentanyl, and one count of possession of a firearm in furtherance of a drug trafficking offense. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept, 24, 2019. Marte and 18 co-defendants were indicted on heroin conspiracy charges in August 2017.
Marte, the leader of a Springfield-based drug trafficking organization, which consisted of at least 17 members, had direct contact with heroin supply sources in the Dominican Republic. On a monthly basis, members of the organization transported between eight and 20 kilograms of heroin to the Springfield area. According to court documents, the organization then packaged the heroin and distributed it using a variety of stamps, including “Donald Trump” and “Hollywood.” The Hollywood brand of heroin has been associated with a number of overdose deaths in western New England that occurred in late 2015 and early 2016. During the course of the investigation, more than six kilos of heroin was seized by federal agents.
Four co-conspirators have also pleaded guilty, including Jose Miguel Ramos, a Dominican national smuggled into the country to work for Marte’s organization. Ramos lived in a heroin mill in Springfield where he and others packaged kilograms of heroin for retail distribution. The remaining defendants have pleaded not guilty.
The charge of conspiracy to distribute and possess with the intent to distribute 1000 grams or more of heroin provides for a minimum mandatory sentence of 10 years and up to life in prison, up to a lifetime of supervised release and a fine of up to $10 million. The charge of distribution of and possession with the intent to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of five years and up to 40 years in prison, a lifetime of supervised release and a fine of $5 million. The charge of conspiracy to distribute and possess with the intent to distribute fentanyl provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $10 million. The charge of possession of a firearm in furtherance of a drug trafficking offense provides for a mandatory minimum sentence of five years and up to life in prison, supervised release for four years, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Acting Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Settles Discrimination Lawsuit Against an Educational Service Agency in MichiganRead the Press Release
The Justice Department announced today that it has reached a settlement with the Allegan Area Educational Service Agency (AAESA), a government agency providing support, cooperative educational programs, and services to local school districts in Allegan County, Michigan, resolving allegations that AAESA subjected two female teachers to sexual harassment and a hostile work environment in violation of Title VII of the Civil Rights Act of 1964, as amended.
The complaint, filed last year in the U.S. District Court for the Western District of Michigan, alleged that AAESA discriminated against two female teachers when they were regularly subjected to sexual harassment in the workplace by their supervisor, a former principal at the school where they all worked. As alleged in the complaint, the sexual harassment included verbal abuse as well as unwanted physical touching that escalated to physical assaults. The principal was later convicted of criminal assault of the teachers. The complaint alleged that AAESA did not take reasonable steps to prevent the principal’s unlawful acts.
Under the terms of a consent decree, which still must be approved by the court, AAESA has agreed to pay $450,000 in total monetary relief to the two teachers. Pursuant to the consent decree, AAESA must review and revise its existing anti-discrimination policies and procedures and implement effective policies to protect its employees from discrimination on the basis of sex, including sexual harassment. The consent decree requires AAESA to train its employees to ensure that employees understand how and when to report potentially discriminatory behavior and to ensure that any future complaints of discrimination are handled properly.
“No one should be forced to endure sexual harassment to keep their job,” said Assistant Attorney General Eric Dreiband. “The Justice Department, through its Sexual Harassment in the Workplace Initiative, will continue to vigorously enforce federal anti-discrimination laws to combat sexual harassment in the workplace and help ensure that teachers and other dedicated public servants are protected from unlawful harassment in the future.”
“My office is committed to vigorous law enforcement, which includes working with the Civil Rights Division to combat sexual discrimination and harassment in public sector workplaces,” said U.S. Attorney Andrew Birge. “This resolution sends a strong message that sexual harassment will not be tolerated in the Western District of Michigan and that employers must make serious and meaningful efforts to prevent and address it.”
Both teachers filed charges of discrimination with the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC investigated the charges and found that there was a reasonable basis to believe that violations of Title VII had occurred. After unsuccessful conciliation efforts by the EEOC, the charges were referred by the EEOC to the Department of Justice. The two teachers intervened in the United States’ suit.
This settlement is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative announced in February 2018. The Initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach, and development of effective remedial measures to address and prevent future sex discrimination and harassment.
Attorneys assigned to the Employment Litigation Section of the Civil Rights Division represented the United States in this matter.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Justice Department Settles Discrimination Lawsuit Against an Educational Service Agency in MichiganRead the Press Release
This Settlement is part of the Justice Department’s Sexual Harassment in the Workplace Initiative
WASHINGTON – The Justice Department announced today that it has reached a settlement with the Allegan Area Educational Service Agency (AAESA), a government agency providing support, cooperative educational programs, and services to local school districts in Allegan County, Michigan, resolving allegations that AAESA subjected two female teachers to sexual harassment and a hostile work environment in violation of Title VII of the Civil Rights Act of 1964, as amended.
The complaint, filed last year in the U.S. District Court for the Western District of Michigan, alleged that AAESA discriminated against two female teachers when they were regularly subjected to sexual harassment in the workplace by their supervisor, a former principal at the school where they all worked. As alleged in the complaint, the sexual harassment included verbal abuse as well as unwanted physical touching that escalated to physical assaults. The principal was later convicted of criminal assault of the teachers. The complaint alleged that AAESA did not take reasonable steps to prevent the principal’s unlawful acts.
Under the terms of a consent decree, which still must be approved by the court, AAESA has agreed to pay $450,000 in total monetary relief to the two teachers. Pursuant to the consent decree, AAESA must review and revise its existing anti-discrimination policies and procedures and implement effective policies to protect its employees from discrimination on the basis of sex, including sexual harassment. The consent decree requires AAESA to train its employees to ensure that employees understand how and when to report potentially discriminatory behavior and to ensure that any future complaints of discrimination are handled properly.
"No one should be forced to endure sexual harassment to keep their job," said Assistant Attorney General Eric Dreiband. "The Justice Department, through its Sexual Harassment in the Workplace Initiative, will continue to vigorously enforce federal anti-discrimination laws to combat sexual harassment in the workplace and help ensure that teachers and other dedicated public servants are protected from unlawful harassment in the future."
"My office is committed to vigorous law enforcement, which includes working with the Civil Rights Division to combat sexual discrimination and harassment in public sector workplaces," said U.S. Attorney Andrew Birge. "This resolution sends a strong message that sexual harassment will not be tolerated in the Western District of Michigan and that employers must make serious and meaningful efforts to prevent and address it."
Both teachers filed charges of discrimination with the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC investigated the charges and found that there was a reasonable basis to believe that violations of Title VII had occurred. After unsuccessful conciliation efforts by the EEOC, the charges were referred by the EEOC to the Department of Justice. The two teachers intervened in the United States’ suit.
This settlement is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative announced in February 2018. The Initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach, and development of effective remedial measures to address and prevent future sex discrimination and harassment.
Attorneys assigned to the Employment Litigation Section of the Civil Rights Division represented the United States in this matter.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
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Jacksonville Man Pleads Guilty to Possessing Child Pornography of A Child in His CustodyRead the Press Release
Jacksonville, Florida – Lonnie Lawrence Mercer, Jr. (40, Jacksonville) has pleaded guilty to possession of child pornography. Mercer faces a maximum penalty of 20 years in federal prison, up to a life term of supervised release, and has agreed to pay restitution to the victim of his offense. A sentencing date has not yet been set.
According to the plea agreement, Mercer possessed images of child pornography on his cellphone depicting a 10-year-old child with her shorts and underwear pulled to the side, revealing her genitalia. The child’s mother told law enforcement that she discovered 8-10 explicit photos of her daughter’s genitalia on Mercer’s phone and confronted him, after which a physical altercation ensued.
The 10-year-old child reported that Mercer would always help her stretch and suggested that she occasionally noticed Mercer’s camera phone open while her legs were open and he helped her stretch. The child explained that Mercer would sometimes adjust her underwear to “cover [her] privates” while she was stretching. This case was investigated by Homeland Security Investigations and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
Husband and Wife Plead Guilty to Involvement in Multi-Million Dollar Investment Fraud Scheme Based in HawaiiRead the Press Release
HONOLULU – Neil Kauhi, 51, pleaded guilty today in federal court to one count of wire fraud. Kauhi faces a maximum term of imprisonment of 20 years. His wife, Lyndie Kauhi, 49, pleaded guilty to one count of misprision of a felony. She faces a maximum term of imprisonment of three years. Both Lyndie and Neil Kauhi are detained without bail until their sentencings on October 17, 2019.
U.S. Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, between October 2012 and April 2018, Neil Kauhi executed an investment fraud scheme involving over 20 victims. Neil Kauhi took in more than $2.5 million by promising these victims that their money would be invested in precious metals, real estate, a trucking company, and a solar energy company. Instead of directing the victims’ funds into the promised investments, Kauhi diverted most of the money to his and his family’s own personal use, such as expenditures on travel, rent and utilities, restaurants, vehicles, retail purchases, entertainment, and a daughter's wedding, as well as into other unauthorized investments.
According to court documents, Lyndie Kauhi knew about her husband’s investment fraud scheme, but she did not report it to federal authorities. Instead, Lyndie Kauhi took steps to conceal the fraud scheme, by among other things, depositing and transferring victims’ funds into the Kauhi’s personal bank accounts. When interviewed on November 8, 2017 by agents of the Federal Bureau of Investigation (FBI), Lyndie Kauhi made misleading statements and material omissions about the fraud scheme.
As part of their plea agreement, both Lyndie and Neil Kauhi have agreed to pay restitution for the fraud losses to victims. Neil Kauhi has also agreed to a forfeiture money judgment of $2,981,191.64. Federal authorities have already seized approximately $581,618.51 in funds in connection with the sale of real property associated with Neil Kauhi.
The case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Rebecca A. Perlmutter.
Houston Area Physician Pleads Guilty to Health Care FraudRead the Press Release
HOUSTON - A local physician has admitted to participating in a conspiracy involving medical tests, procedures and office visits that were not medically necessary, not properly provided or both, announced U.S. Attorney Ryan K. Patrick.
Rezik Saqer, 64, a licensed anesthesiologist of Houston, entered his guilty plea before Magistrate Judge Christina Bryan this morning.
At the hearing, Saqer admitted he submitted fraudulent claims to Medicare and other private insurance companies for financial gain.
From around January 2010 through September 2015, Saqer and his co-conspirators often overbooked patient appointments to maximize billings. Unlicensed co-conspirators often conducted the follow-up appointments which frequently lasted less than the typical face-to-face time that is require. These unlicensed co-conspirators were unqualified to perform medical care in the United States. However, Saqer frequently billed and caused the billing of higher reimbursement codes.
Saqer billed, or caused to be billed, millions of dollars for medical tests, procedures and office visits that were not medically necessary, not properly provided or both.
Sentencing has been set for Oct. 22, 2019, before Chief U.S. District Judge Lee H. Rosenthal. At that time, Saqer faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
The Drug Enforcement Administration, FBI and IRS – Criminal Investigtion conducted the investigation. Assistant U.S. Attorney Tina Ansari and Department of Justice trial attorneys Andrew Pennebaker and Devon Helfmeyer are prosecuting the case.
Gilmer Inmate admits to indecent exposureRead the Press Release
CLARKSBURG, WEST VIRGINIA – Damon Johnson, an inmate at Federal Correction Institution Gilmer in Glenville, West Virginia, has admitted to indecent exposure, United States Attorney Bill Powell announced.
Johnson, age 42, pled guilty to one count of “Indecent Exposure.” Johnson admitted to exposing himself to staff at FCI Gilmer in March 2019.
Johnson was sentenced to 90 days incarceration for the crime.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. FCI Gilmer Special Investigative Services investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Four South American Narcotic Smugglers Apprehended Off the Coast of Ecuador Charged in USVI Federal Court with Trafficking 1,535 Kilograms of CocaineRead the Press Release
St. Thomas, USVI – Freddy Montano Paz, 29, Calixto Tumbaco, 41, Mariano Abregon, 42, and Hector Hernandez Saucedo, 48, appeared today before U.S. Magistrate Judge Ruth Miller for arraignment and detention hearings on charges of Conspiracy to Possess and Possession of a Controlled Substance on Board a Vessel Subject to the Jurisdiction of the United States, United States Attorney Gretchen C.F. Shappert announced. At the conclusion of the hearings, Magistrate Miller ordered all four defendant detained pending trial.
The Information alleges that Montano Paz, Tumbaco, Abregon and Hernandez Saucedo were all on board a semi-submercible vessel that was intercepted by the United States Coast Guard Hamilton (USCG) cutter while on routine patrol. The USCG crew first sighted the semi-submercible vessel on May 10, 2019, approximately 250 nautical miles northwest of Esmeraldes, Ecuador. The vessel did not display any indicia indicating its nationality. After being detected, the four occupants—two Columbian nationals, one Ecuadorian national, and oneMexican national--began tossing the bales of suspected narcotics overboard their vessel. The USCG disabled the semi-submercible vessel, and successfully seized 40 bales of suspected narcotics, including bales that were tossed overboard. The 40 recovered bales contained approximately 1,535 kilograms of a white powdery substance that field tested positive for cocaine.
This case is being investigated by the USCG and the Drug Enforcement Agency, and is being prosecuted by Assistant United States Attorney Delia L. Smith.
United States Attorney Shappert reminds the public that an information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Former NSA Subcontractor Pleads Guilty to Submitting False Claims for Hours Worked on Government ContractsRead the Press Release
Baltimore, Maryland – Kyle Duran Smego, age 40, of Raleigh, North Carolina, pleaded guilty on July 2, 2019, to submitting false claims to the United States, specifically for inflating the number of hours he claimed to have worked on two government contracts.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Robert P. Storch, Inspector General of the National Security Agency.
The National Security Agency (NSA) is a component of the United States Department of Defense. During the period from February 2016 to present, the NSA had two ongoing contracts with an outside company (Contractor A). Each of these contracts required Contractor A to supply information technology (IT) services to the NSA. Contractor A subcontracted with Subcontractors 1 and 2, respectively, to provide software engineers and developers needed to carry out its obligations under each contract.
According to his plea agreement, from February 2016 through May 2018, Kyle Duran Smego was successively employed on a full-time basis by Subcontractors 1 and 2 to work as a software engineer/front end developer on the two separate contracts held by Contractor A. Because the subject matter of these contracts involved classified information, all of the work had to be performed at secure, access-controlled locations. Smego was therefore required to be physically present at his assigned duty locations to do his work.
Between February 2016 and November 2017, Smego reported to Subcontractor 1 that he had worked 3,289 hours on their contract. Between November 2017 and May 2018, Smego reported to Subcontractor 2 that he had worked 797.5 hours on their contract. A subsequent review by the NSA of key card and timecard information demonstrated that Smego was not actually present at his assigned duty stations for at least 1,326 of the 3,289 hours he had reported to Subcontractor 1 (40.3%) and 375 of the 797.5 hours he had reported to Subcontractor 2 (47%). In addition to overstating the number of hours he had worked, the timesheets that Smego submitted to Subcontractors 1 and 2 included entries for 119 separate days in which Smego represented that he had worked an average of 8 hours when, in fact, he had not worked at all on those days.
All of the hours that were falsely reported by Smego were subsequently billed by the subcontractors to Contractor A, and were in turn billed by Contractor A to, and paid by, NSA. Based upon the false billing records submitted by Smego, the NSA overpaid a total of $220,379.42 to Contractor A. Contractor A, in turn, paid most of those funds over to Subcontractors 1 and 2, who ultimately paid Smego $115,110 for work he had not performed.
As part of his plea agreement, Smego will be required to pay restitution and to forfeit any assets derived from or traceable to the offense.
Smego faces a maximum sentence of five years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 3, 2019 at 3:00 p.m.
United States Attorney Robert K. Hur commended NSA Senior Investigator Lori Hazenstab and the NSA OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
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Final Defendants Sentenced in Multi-State Dog Fighting ProsecutionRead the Press Release
The last of 12 defendants to be convicted for their roles in multi-state dog fighting conspiracies were sentenced yesterday in federal court in Trenton, New Jersey, the Department of Justice announced today.
- Justin Love, 39, of Sewell, New Jersey, was sentenced on July 3, 2019, to serve 54 months in prison. A jury had convicted Love of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, six felony counts of possessing a dog intended for use in an animal fighting venture, and two felony counts of purchasing and receiving a dog intended for use in an animal fighting venture.
- Robert A. Elliott, Sr., 50, of Millville, New Jersey, was sentenced on May 30, 2019, to serve 24 months in prison. A jury had convicted Elliott of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and 12 felony counts of possessing a dog intended for use in an animal fighting venture.
- Dajwan Ware, 46, of Fort Wayne, Indiana, was sentenced on May 29, 2019, to serve 24 months in prison. A jury had convicted Ware of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act.
“Our justice system will not tolerate the torment and death of animals in the fighting ring, as the sentencings in this case demonstrate,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “Although the one chapter represented by this landmark series of cases has now closed, we will continue to place a high priority on pursuing and prosecuting similar illegal animal fighting ventures across the country.”
“Dog fighting exacts a steep toll on animals, local animal shelters, charitable humane organizations, and the taxpayers of New Jersey,” said U.S. Attorney Craig Carpenito for the District of New Jersey. “We applaud our local and federal partners who worked so tirelessly to investigate this case and bring the offenders to justice. The message from today’s sentencing hearing is simple: don’t fight dogs in New Jersey, or elsewhere, if you want to avoid a lengthy prison sentence.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“Animal cruelty is a heinous crime that deserves our ultimate condemnation and serious legal consequences for those who engage in it for ‘sport’ and/or profit,” said Brian Michaels, Special Agent in Charge, Homeland Security Investigations, Newark. “As an agency, we are proud to work with our partners to identify, investigate and assist our partners to rout out those who engage in this despicable, inhumane, and illegal practice.”
According to trial evidence and court documents filed in connection with the cases, the defendants and their associates regularly fought dogs – including regularly to the death – and repeatedly trafficked in dogs with other dog fighters across several states so that those dogs could be used in dog fights. They also maintained significant numbers of fighting dogs and substantial dog fighting equipment such as dog treadmills, intravenous drug bags and lines, and “breeding stands” used to immobilize female dogs. At Justin Love’s residence, canine blood was found on the floor, walls, and ceiling of the basement, and Love had tried to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects. Another defendant who previously pleaded guilty admitted that following a fight, his dog died in his car on the way home.
Today’s sentencing brings to a close Operation Grand Champion, a multi-jurisdictional federal dog fighting investigation which commenced in 2015 and resulted in the convictions of 12 defendants in four federal districts. The 12 defendants were sentenced to a total of 315 months in prison. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” As a result of the investigation, 113 dogs were rescued and either surrendered or forfeited to the government.
Judge Peter G. Sheridan presided over the trial and imposed the sentences.
The government was represented in the Trenton proceedings by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
Final Defendants Sentenced in Multi-State Dog Fighting ProsecutionRead the Press Release
TRENTON, N.J. – The last of 12 defendants to be convicted for their roles in multi-state dog fighting conspiracies was sentenced today, U.S. Attorney Craig Carpenito of the District of New Jersey and Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division announced.
Justin Love, 39, of Sewell, New Jersey, was sentenced to 54 months in prison. Love was previously convicted of one count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, six counts of possessing a dog intended for use in an animal fighting venture, and two counts of purchasing and receiving a dog intended for use in an animal fighting venture. He was convicted following a trial before U.S. District Judge Peter G. Sheridan, who imposed the sentence today in Trenton federal court.
Robert A. Elliott Sr., 50, of Millville, New Jersey, and Dajwan Ware, 46, of Fort Wayne, Indiana, were each sentenced in May 2019 to two years in prison. Both had been convicted of violating the Animal Welfare Act.
Today’s sentencing brings to a close Operation Grand Champion, a multi-jurisdictional federal dog fighting investigation which commenced in 2015 and resulted in the convictions of 12 defendants in four federal districts. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” As a result of the investigation, 113 dogs were rescued and either surrendered or forfeited to the government
“Dog fighting exacts a steep toll on animals, local animal shelters, charitable humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “We applaud our local and federal partners who worked so tirelessly to investigate this case and bring the offenders to justice.”
“Our justice system will not tolerate the torment and death of animals in the fighting ring, as the sentencings in this case demonstrate,” Assistant Attorney General Clark said. “Although this landmark case is over, we continue to place a high priority on pursuing and prosecuting illegal animal fighting ventures across the country.”
According to documents filed in these cases, statements made in court and the evidence at trial:
The defendants and their associates regularly fought dogs – including regularly to the death – and repeatedly trafficked in dogs with other dog fighters across several states so that those dogs could be used in dog fights. They also maintained significant numbers of fighting dogs and substantial dog fighting equipment such as dog treadmills, intravenous drug bags and lines, and “breeding stands” used to immobilize female dogs. At Love’s residence, canine blood was found on the floor, walls, and ceiling of the basement, and Love had tried to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects. Another defendant who previously pleaded guilty admitted that following a fight, his dog died in his car on the way home.
In addition to the prison term, Judge Sheridan sentenced Love to three years of supervised release and fined him $9,000.
The government was represented in the Trenton proceedings by Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the FBI.
Final Defendant in Drug Gang That Operated in A Local Housing Project Pleads GuiltyRead 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 Tarrell Hendrix, 35, of Lackawanna, NY, pleaded guilty before Senior U.S. District Judge William M. Skrenty to possession with intent to distribute, and distribution of, crack cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Jeremiah Lenihan and Laura A. Higgins, who are handling the case, stated that the defendant was arrested in December 2014 along with 19 others and charged with engaging in narcotics trafficking in the Gates Housing Project, a housing facility owned and operated by the Lackawanna Municipal Housing Authority. Hendrix sold a quantity of crack cocaine to an individual working with investigators on two separate occasions in August 2014.
During the course of the drug trafficking operation, Hendrix and his co-defendants conducted open air drug sales in and around the public housing project including hand to hand transactions. This was done in close proximity to playgrounds and recreational areas where children living in the housing project would play.
Hendrix is the final defendant to be convicted in this case.
The indictments are the culmination of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel, and the Federal Bureau of Investigation’s Safe Street’s Task Force, under the direction of Special Agent-in-Charge Gary Loeffert. Additional assistance was provided by the U.S. Marshal Service, under the direction of Marshal Charles Salina, and the Tonawanda Police Department, under the direction of Chief Jerome Uschold.
Sentencing is scheduled for October 2, 2019, at 11:00 a.m. before Judge Skretny.
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Farmington Man Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD - Alexander A. Tsiros, 37, of Farmington, pleaded guilty in federal court to drug trafficking and firearms offenses, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on September 7, 2018, Milton Police Department received a call from an individual who reported that Tsiros was in possession of a black handgun.
Tsiros was later arrested in Dover for violating a protective order. During the stop, police officers noticed a backpack on the front seat of his vehicle. The Farmington Police Department executed a search warrant and found a Hi-Point C9, nine millimeter pistol, a black nylon holster, and ammunitions. Also recovered were a bag of crystal methamphetamine, packaging material, and drug paraphernalia. Tsiros is a convicted felon and prohibited from possessing a firearm.
Tsiros is scheduled to be sentenced on October 9, 2019.
“Drugs and guns are a deadly combination that present a serious threat to public safety,” said U.S. Attorney Murray. “Federal law prohibits convicted felons from possessing firearms. Through Project Safe Neighborhoods, we are working closely with our law enforcement partners to identify and prosecute armed criminals in order to protect the citizens of the Granite State.”
“Working with our law enforcement partners to combat violent crime and to keep guns out of the hands of criminals and off the streets is ATF’s top priority,” said Special Agent in Charge Kelly D. Brady of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “Today’s guilty plea is another example of the importance of law enforcement partnerships and their effectiveness in protecting the safety and security of communities.”
This matter was investigated by the Farmington Police Department, Milton Police Department, Dover Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Former U.s. Fish and Wildlife Employee Sentenced to Probation and Community Service for Stalking Former Co-WorkerRead the Press Release
ALBUQUERQUE – Peter Fitzpatrick, 44, of Byron Center, Mich., was sentenced in federal court on Monday to five years of probation and 40 hours of community service for stalking a former co-worker.
Fitzpatrick previously pleaded guilty to stalking on March 1, 2019. In his plea agreement, he admitted to stalking the victim with angry and confrontational telephone calls, emails, and text messages from February 1, 2016, to September 1, 2017. In these communications, Fitzpatrick also objected to the U.S. Fish and Wildlife Service’s management of the Mexican Grey Wolf Recovery Program based in Albuquerque.
Fitzpatrick’s communications placed his former co-worker in reasonable fear of death or serious physical injury. Fitzpatrick also made comments about his former co-worker’s daughter expected to cause emotional distress.
The U.S. Fish and Wildlife Service, Office of Law Enforcement and United States Postal Inspection Service investigated this case. Assistant U.S. Attorney Letitia C. Simms prosecuted the case.
Former Civilian Employee at Holloman Air Force Base Sentenced to 121 Months in Prison for Sexual AssaultRead the Press Release
ALBUQUERQUE – Francisco Javier Palillero, 28, Holloman Air Force Base, Alamogordo, New Mexico, was sentenced in federal court in Las Cruces yesterday to 121 months in prison for Sexual Abuse, committed against a civilian employee at Holloman Air Force Base.
A jury convicted Palillero of this offense on December 5, 2018, after a three day trial. The evidence at trial showed that on April 27, 2018, the victim and her fiancé were next-door neighbors to Palillero, on Holloman Air Force Base. On that date, the victim and her fiancé went to Palillero’s house for a barbeque. At approximately 10:00 p.m., the victim left the barbecue, returned home, and went to sleep in her bedroom with the bedroom door closed, while her fiancé remained at the barbecue.
At approximately 2:00 a.m, on April 28, 2018, Palillero, who was highly intoxicated, followed the victim’s fiancé back to the victim and her fiancé’s home. While the victim’s fiancé sat in the living room, Palillero snuck down a hallway leading to the victim’s bedroom, where she was sleeping. While the victim was sleeping and without her consent, Palillero kissed the victim’s face, rubbed her breasts, traced the outline of her underwear, moved her underwear to the side, rubbed her genital area roughly, and then digitally penetrated her vagina.
When the victim woke up, Palillero told her, “Don’t say anything” and then left the bedroom. The victim then charged out of her bedroom and punched Palillero multiple times in the face, knocking him to the floor.
The case was investigated by the Las Cruces FBI office and Holloman Air Force Base Security Forces. The case was prosecuted by Assistant U.S. Attorneys Matilda M. Villalobos and Mark A. Saltman.
Eight people indicted for conspiracy to sell heroin and cocaine in SanduskyRead the Press Release
Eight people, most from Sandusky, were indicted in federal court for their roles in a conspiracy to sell large amounts of heroin and cocaine in Sandusky.
Named in the 17-count indictment are: Siron Mills, 41; Patrick Brown, 38; Daryl Castile, 48; Timothy Johnson, 40; Jon Lippert, 38; Darrius Martin, 26, and Eugene Nicholson, 49, all of Sandusky, as well as Gregory Boswell, 44, of Cleveland.
All eight defendants are charged with conspiracy to possess with intent to distribute controlled substances. Martin is also charged with being a felon in possession of ammunition.
According to the indictment:
Mills obtained cocaine from a supplier in Columbus and heroin from Castile. Brown obtained cocaine from Mills and Brown. Members of the conspiracy used several residences and vehicles in Sandusky and Cleveland to store, package and distribute narcotics in the Sandusky area.
Prosecutors are seeking to forfeit four firearms, ammunition and nearly $40,000 in cash seized as part of the investigation.
“These defendants were part of a group that brought deadly heroin and cocaine into Sandusky,” U.S. Attorney Justin Herdman said. “These arrests have helped make our community safer.”
Drug Enforcement Administration Acting Special Agent in Charge Keith Martin said: “Keeping our communities safe from drug trafficking and violent crime is a top priority for the DEA. We will continue to utilize our combined resources and work with our law enforcement partners to bring those threatening the safety of citizens in northern Ohio to justice.”
“The Sandusky Police Department is appreciative of the partnership we have with the DEA and the US Attorney’s office in combating the influx of narcotics into our community,” said Sandusky Police Chief John Orzech. “We are cognizant of the resources needed to investigate criminal drug organizations. The citizens of our city can be assured of the continued partnership with DEA, as we pursue the eradication of drugs in our community.”
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
This case was investigated by the Drug Enforcement Administration and the Sandusky Police Department. The case is being prosecuted by Assistant United States Attorneys Alissa M. Sterling and Ashley A. Futrell.
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.
Drug Dealer Sentenced to Eight Years in PrisonRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who brokered the sales of methamphetamine was sentenced today to eight years and one month in federal prison to be followed by four years of supervised release, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
John William Prince, 51, was sentenced by United States District Judge Gloria M. Navarro. Prince pleaded guilty in January 2019, to one count of conspiracy to distribute methamphetamine.
According to court documents, beginning in October 2015, Prince conspired with others to distribute large quantities of methamphetamine in Las Vegas. Customers would pay Prince, who handed the money to distributors, who then gave Prince the methamphetamine for the customers. At four different times, Prince sold a half-pound of methamphetamine for $500. In total, he sold two pounds of methamphetamine for $2,000. On July 13, 2016, law enforcement arrested Prince during a drug transaction in which he was planning to sell two pounds of methamphetamine. Over the course of the investigation, Prince sold over 6 pounds of methamphetamine.
Co-conspirators Julian Garcia Palomera was sentenced to 70 months in prison; Ivan Estrada was sentenced to 37 months in prison; and Leonardo Chavez Morales was sentenced to 46 months in prison for their roles in the drug trafficking conspiracy.
The case was investigated by the Drug Enforcement Administration.
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Denver Man Pleads Guilty for Making Violent Threats Against Locations in Tulsa and PryorRead the Press Release
A Denver man pleaded guilty Wednesday to making multiple threats of violence against county, federal and Shriners employees in northeastern Oklahoma from April 24, 2017 to Aug. 8, 2017, announced U.S. Attorney Trent Shores.
Jose Rawdon Trujillo, 44, of Denver, Colorado, pleaded guilty to interstate communication of a threat and to making threats to injure by means of explosives. U.S. District Judge Gregory K. Frizzell accepted the plea and set sentencing for Oct. 4, 2019.
“Whether through the use of a cell phone or social media, spewing violent and terroristic threats has real world consequences. Mr. Trujillo learned this the hard way. He made nine threats of violence to individuals and organizations in northern Oklahoma. He threatened to ‘blow the Sheriff’s Office up like 9/11’ and to cut Akdar Shrine employees from ‘ear to ear,’” said U.S. Attorney Trent Shores. “Protecting our communities in northeastern Oklahoma is my highest priority. If you make violent or terroristic threats on social media, then we will take you at your word and prosecute accordingly. I encourage victims who have been violently threatened or cyberstalked via social media to report these crimes to law enforcement before there is an escalation to physical violence.”
Trujillo pleaded guilty to nine counts according to court documents.
Count One: April 24, 2017. Interstate Communication of a Threat. Communicating threats by cell phone to blow up the Tulsa County Sheriff’s Office (TCSO) and to cut the throats and heads off any officer who came to him.
Count Two: April 24, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure and intimidate individuals employed by the TCSO and to destroy their building by means of explosives.
Count Three: May 3, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate an employee of the U.S. Marshals Service and to destroy the federal courthouse in Tulsa by means of explosives.
Count Four: June 21, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees at the Akdar Shrine office building in Tulsa and destroy their building by means of explosives.
Count Five: June 21, 2017. Interstate Communication of a Threat. Used social media to threaten Akdar Shrine employees by stating he might cut them from “ear to ear” and “gut” them.
Count Six: June 27, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees of the U.S. Court Clerk’s Office and destroy the federal courthouse in Tulsa by means of explosives.
Count Seven: July, 10, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees of the Mayes County Sheriff’s Office and to destroy their building in Pryor by means of explosives.
Count Eight: Aug. 3, 2017. Interstate Communication of a Threat. Communicating a threat using a cell phone to kill a TCSO employee and his or her family.
Count Nine: Aug. 8, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees of the TCSO and destroy their building by means of explosives.
In August 2017, an arrest warrant was issued for Trujillo, and law enforcement was alerted to be on the look-out for the suspect. On Aug. 21, 2017, an Oklahoma Highway Patrol Trooper stopped Trujillo traveling eastbound on Interstate 44. At that time, Trujillo was taken into custody.
The FBI conducted the investigation. Assistant U.S. Attorney Allen J. Litchfield is prosecuting the case. AUSA Litchfield is the Chief of the Criminal Division at the U.S. Attorney’s Office in the Northern District of Oklahoma.
Delaware County Accountant Charged with Multiple Tax OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Myles Hannigan, 48, of Newtown Square, Pennsylvania, was charged by Information with one count of obstructing the due administration of the Internal Revenue Service (IRS), and seventeen counts of preparing materially false income tax returns.
Hannigan owned and operated Payroll Professionals, Incorporated (“PPI”), which operated out of Media, Pennsylvania. PPI is a third-party payroll processor that assists its clients by issuing payroll checks and forwarding tax payments to federal, state, and local authorities. PPI’s clients were small to medium-sized businesses, and the clients relied on Hannigan to prepare and file Form 941 with the IRS. Form 941 details employee wages that were paid by a company and income tax withheld and paid to the IRS based on those wages.
Beginning in January 2012 and continuing up to December 2016, Hannigan allegedly prepared and submitted Form 941s that falsely reported information to the IRS. In particular, Hannigan reported depositing more money to pay tax debt than he actually had sent to the IRS, causing 35 of PPI’s client companies (who are considered victims in this case) to collectively underpay the IRS $3,270,566.89 for those tax years. These victims/companies gave Hannigan access to all necessary funds to pay the full tax debt, but Hannigan allegedly failed to do so. Hannigan hid his behavior from these victims/companies by presenting bogus documents that purported to be confirmation of payments of taxes he had made to the IRS on their behalf, and by re-directing IRS correspondence to his business address. In essence, Hannigan is alleged to have operated a “Ponzi scheme” of borrowing from one client’s money to pay the debts of another, which collapsed when the interest and penalties owed to the IRS (which he was hiding from clients) became too big to hide.
“As alleged in the Information, this defendant – an accountant in business to handle payroll taxes – committed fraud and stole from clients and the United States government,” said U.S. Attorney McSwain. “He also stole from the pockets of all taxpayers who do the right thing by paying their taxes. It will continue to be a priority of my Office to bring tax cheats to justice and thereby protect honest taxpayers.”
If convicted, the defendant faces a maximum possible sentence of up to 54 years in prison, one year of supervised release, a fine of up to $1,805,000, and a special assessment of $1,800.
The case was investigated by the Internal Revenue Service (IRS), and the Treasury Inspector General for Tax Administration (TIGTA), and is being prosecuted by Assistant United States Attorney Jason P. Bologna.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Connecticut Man Charged with Possessing Fentanyl at Bath NY Veterans Affairs FacilityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Nolan Rogers, 32, of Lisbon, CT, was arrested and charged by criminal complaint with possession of fentanyl. The charge carries a maximum penalty of one year in prison, and a fine of up to $100,000.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that the criminal complaint alleges that in March 2019, the defendant was a resident at the Bath, NY Veterans Affairs Medical Center. On March 2, 2019, Rogers returned to the facility after a trip home to Connecticut, when VA Police received information that the defendant was in possession of a prohibited item. VA Police responded and after speaking with Rogers, officers removed approximately 20 small baggies from his pocket that were rubber-banded together. Also recovered were four knives with blades over three inches long, an unspent round of ammunition, three used hypodermic needles, and a bag of unused needles.
Subsequent laboratory testing performed by the Drug Enforcement Administration confirmed that the substance contained in the 20 seized baggies was fentanyl.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson, and further proceedings are scheduled on August 26, 2019, at 9:00 am.
The criminal complaint is the result of an investigation by the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Office, under the direction of Special Agent-in-Charge Sean J. Smith, and the Bath Veterans Affairs Police Department, under the direction of Chief Joseph Day. Assistance was also provided by the Steuben County Sheriff’s Office, under the direction of Sheriff James L. Allard, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Columbus man admits to role in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Kyuten J. Smith, of Columbus, Ohio, has admitted to his role in a cocaine and heroin distribution operation, United States Attorney Bill Powell announced.
Smith, also known as “Mitch,” pled guilty to one count of “Possession with Intent to Distribute Cocaine Base.” Kyuten, age 28, admitted to distributing cocaine base in Ohio County in September 2018.
Smith is facing no less than five and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
U.S. Magistrate Judge James P. Mazzone presided.
Colorado Man Sentenced to 14 Years for Enticing a Minor for Illicit SexRead the Press Release
KANSAS CITY, Mo. – A Colorado man was sentenced in federal court today for traveling to Kansas City, Mo., to meet an undercover FBI agent, whom he believed to be a mother with her 7-year-old daughter, for illicit sexual activity.
Ryan Edward Mausner, 43, of Basalt, Colo., was sentenced by U.S. District Judge Greg Kays to 14 years in federal prison without parole.
On Feb. 13, 2019, Mausner pleaded guilty to the online enticement of a minor. Mausner admitted that from Jan. 31 to May 25, 2018, he induced, enticed, and coerced a child victim to engage in criminal sexual activity. Mausner was actually communicating (via the Kik messaging application and texts) with an undercover FBI agent, who portrayed a single mother with a 7-year-old daughter.
Mausner admitted that he engaged the undercover agent in numerous private chat sessions, over several months, in which he said he wanted to engage in sexual activity with the mother and daughter. These discussions entailed descriptions of the 7-year-old girl and an insistence, on Mausner’s part, that the mother and 7-year-old would call him “Sir.” Mausner described, in explicit detail, the sorts of sexual activity that he intended to perform on the 7-year-old when they met.
Mausner began communicating plans to either travel to Kansas City, Mo., or arrange for the travel of the mother and her daughter to come to Colorado. Mausner traveled by plane from Denver, Colo., to Kansas City, Mo., on May 25, 2018, with the intent to engage in criminal sexual activity with the child victim. Mausner was arrested when he arrived at the Kansas City International Airport.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Chinese National Pleads Guilty for Failing to Report A Foreign Bank AccountRead the Press Release
CHARLOTTE, N.C. – Lili Bian, a 59-year old citizen of China, and a lawful permanent resident of the United States living in Charlotte, appeared in federal court today and pleaded guilty to failing to report a foreign bank account with a balance exceeding $10,000, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge David C. Keesler presided over Bian’s guilty plea.
Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) and : Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office join U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s court proceedings, Bian admitted that on or about June 30, 2015, she knowingly and willfully failed to file with the Department of the Treasury a Foreign Bank and Financial Account Form TD F 90-22.1 (FBAR), as is required by all citizens or residents in the United States who had a financial interest in, or signature or other authority over a financial account in a foreign country with an aggregate value of more than $10,000. The FBAR requires the filer to identify the financial institution with which the account is held, the type of account, the account number, and the maximum value of the account during the calendar year of which the FBAR is filed. Bian admitted in court today that, during calendar year 2014, she failed to report that she had an interest in, or signature authority over, a financial account at FungChen Securities, a financial institution located in China, with an aggregate value of more than $10,000.
Bian’s son, Shi Yun Zhou, was sentenced in January 2019 to nine years in prison on drug trafficking conspiracy and money laundering conspiracy charges. Pursuant to her plea agreement, Bian has agreed to forfeit over $3 million in U.S. currency, funds, and other assets, including multiple residences and luxury vehicles, many of which are titled in both Bian and Zhou’s names, and were previously identified for forfeiture in the Zhou case.
The charge of willful failure to file an FBAR carries a maximum prison term of five years and a $250,000 fine.
In making today’s announcement, U.S. Attorney Murray thanked IRS-CI and the DEA for their investigation of this case, and commended the U.S. Marshals Service, the Pineville Police Department, the Cornelius Police Department, the Charlotte-Mecklenburg Police Department, the Mint Hill Police Department, the Huntersville Police Department, the Monroe Police Department, and the Gastonia Police Department for their invaluable assistance.
Assistant U.S. Attorneys Sanjeev Bhasker and Caryn Finley are in charge of the prosecution. Assistant U.S. Attorney Benjamin Bain-Creed is handling the forfeiture proceedings.
Carjacker Who Shot Lakeland Police Officer Sentenced to 30 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Terrese Colston (29, Polk County) to 30 years in federal prison for carjacking, brandishing a firearm during and in relation to a crime of violence, and possessing a firearm and ammunition as a convicted felon. The sentence consists of 15 years’ imprisonment on the carjacking charge, 15 years’ imprisonment (consecutive) on the firearm brandishing charge, and 10 years’ imprisonment (concurrent) on the felon-in-possession charge.
According to court documents and evidence presented at sentencing, on July 11, 2018, the victim was in his parked car on East Lemon Street, Lakeland when Colston approached the driver’s side window, pointed a loaded revolver at the victim, and told him to get out of the car. The victim was in fear for his life and complied. Colston then got into the victim’s car and drove away. A few hours later, a Lakeland police officer spotted the stolen Mazda and attempted to pull it over. Colston crashed the car and fled on foot. When the officer finally caught up to Colston and attempted to stop him using a Tazer, Colston turned around and shot the officer in the face. The officer survived and returned fire, striking Colston in the leg. Other officers arrived and took Colston into custody.
United States Attorney Maria Chapa Lopez said, “My Office backs our men and women in blue. The prosecution of all violent crime, including against law enforcement officers, is a top priority for me.”
“This sentencing should send a strong message that violence against law enforcement who are working to serve and protect communities will not be tolerated,” said ATF Special Agent in Charge Daryl McCrary. “Our strong partnerships continue to reduce violent firearms crime and mitigate dangerous individuals from committing further acts of violence.”
Lakeland Police Chief Ruben Garcia said, “The members of the Lakeland Police Department are grateful to our federal law enforcement partners at the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office for the successful prosecution of this case and the incarceration of a violent felon to safeguard the citizens of our community.”
This case was brought in furtherance of the President’s February 9, 2017 Executive Order on Preventing Violence Against Federal, State, Tribal, and Local Law Enforcement Officers (EO). The EO established that it is the policy of the executive branch to enhance the protection and safety of federal, state, tribal, and local law enforcement officers, and thereby all Americans.
This case was also brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Bay Area Real Estate Agent Indicted for Defrauding Homebuyers Out of Down PaymentsRead the Press Release
OAKLAND— A federal grand jury in Oakland indicted real estate agent Min Jin Zhao, a/k/a Michael Zhao, a/k/a Michael West, on charges of wire fraud, mail fraud, and money laundering, announced United States Attorney David L. Anderson; Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Kareem Carter; and Federal Bureau of Investigation (FBI) Special Agent In Charge John F. Bennett.
According to the indictment filed May 9, 2019, and unsealed today, Zhao, 56, of San Francisco, is a real estate agent working in the Bay Area who defrauded his clients out of down payments meant for the purchase of homes in and around the Bay Area. From 2014 through 2015, Zhao misrepresented to prospective homebuyers and investors that Portfolio Consulting, Inc., offered a loan program that would enable his clients to procure financing to make all-cash offers on real property. Zhao told his victims that, as part of the loan program, they had to wire, transfer, or deposit 10% to 20% of the sale price of the real property they sought to purchase into Portfolio’s bank account. According to the indictment, Zhao told his clients that once they delivered their funds to Portfolio, the company then would provide the remaining portion of the purchase price. In reality, however, after Zhao’s victims deposited their funds into Portfolio’s account, Zhao either spent the funds or transferred the funds to another bank account in Portfolio’s name. Further, Zhao used the funds to make purchases unrelated to the purchase of real property for the victims, including for purchases for Zhao’s benefit and the benefit of businesses he controlled. In sum, Zhao is charged with three counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of mail fraud, in violation of 18 U.S.C. § 1341; and one count of money laundering, in violation of 18 U.S.C. § 1957.
Zhao was arrested in San Francisco on July 2, 2019, and made his initial federal court appearance this morning in Oakland. Zhao is currently out on bond. His next scheduled appearance is on September 11, 2019, at 10:30 a.m., for an initial appearance before the Honorable James Donato, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Zhao faces a maximum sentence of 20 years in prison and a fine of $250,000, plus restitution for each violation of wire and mail fraud, as well as 10 years in prison and a fine of $250,000, plus restitution for the money laundering count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jose Apolinar Olivera is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez and Katie Turner. The prosecution is the result of an investigation by the IRS-CI and the FBI.
Attorney General’s Advisory Subcommitee on Native American Issues Meets to Discuss Violent Crime in Indian CountryRead the Press Release
WASHINGTON, D.C. – Attorney General William P. Barr’s Advisory Subcommittee on Native American Issues (NAIS) convened during the U.S. Attorney’s National Conference in Washington, D.C., to discuss a wide range of justice issues affecting Indian Country, announced U.S. Attorney Trent Shores (OK-N), Chair, and U.S. Attorney Kurt Alme (MT), Vice Chair. U.S. Attorney Ron Parsons (SD), who heads the NAIS Law Enforcement Resources Working Group, was also in attendance.
“The Native American Issues Subcommittee is focused on reducing violent crime against women and children in Indian Country, including missing and murdered indigenous persons,” said U.S. Attorney Trent Shores. “I am thankful for Attorney General Barr’s leadership on these issues. He understands the law enforcement and jurisdictional challenges faced by Native Americans and Alaska Natives. We look forward to working with him and with our federal, tribal, state and local partners to find viable solutions that will improve public safety in Indian country.”
“It was an honor to be hosted in the Indian Treaty Room at the White House to work on these important issues,” said U.S. Attorney Parsons. “The Department of Justice is committed to doing everything it can to improve public safety in Native American communities across the United States.”
On Tuesday, the NAIS met with Tara Sweeny, Assistant Secretary of Indian Affairs, Department of the Interior, and discussed cross-agency collaboration in order to provide more responsive and effective justice services to Indian Country. They further discussed Indian Country case investigations, case intake and tracking databases, and tribal law enforcement resource allocation. The NAIS also reviewed President Trump’s priorities for Indian Country justice. Those priorities include protecting Native American children in the Indian Health Services system, collaboration among Department of Justice, the Department of the Interior, and tribal law enforcement agencies, reducing violent crime, and providing services to help victims to overcome trauma.
On Wednesday, U.S. Attorney Shores moderated a panel titled Murdered and Missing Indigenous Women: A Crisis in Urban America & Indian Country. Panelists included Charles Addington, Director of the Office of Justice Services, Bureau of Indian Affairs; Kurt Alme, U.S. Attorney for the District of Montana; Tracy Toulou, Director of the Office of Tribal Justice; Laura Rogers, Acting Director of the Office on Violence Against Women; and Bryan Vorndran, Deputy Assistant Director of the FBI. The panel discussed the development and implementation of protocols to investigate murdered and missing indigenous persons and how to more accurately measure the scope of the problem in both urban America and Indian Country in order to develop strategies to address it.
In August, the subcommittee is scheduled to reconvene in Indian Country in New Mexico.
The NAIS consists of the approximately 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and makes policy recommendations to the Attorney General regarding public safety and legal issues that impact tribal communities.
The NAIS is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime.
Alexandria man indicted for $198,000 bank fraud scheme, lying on loan applicationsRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a federal grand jury returned a three-count indictment on June 26, 2019, charging Roger D. Boggs, 50, of Alexandria, with bank fraud and making false statements on loan applications in order to receive more than $190,000. Boggs was charged with one count of bank fraud and two counts of false statements on loan applications.
According to the indictment, Boggs engaged in a series of schemes to obtain a commercial loan from Red River Bank between May 2015 and March 2016. Boggs submitted fraudulent stock certificates and signed a fraudulent mortgage in support of his loan request, specifically, on June 5, June 11 and September 25 of 2015. Among other things and in an effort to influence the bank to grant his loan application, Boggs falsely claimed that he owned 26 million shares of the company American Specialty Alloys Inc. (ASA), which he valued at $9 a share and pledged 1 million ASA shares to the bank as collateral. Boggs requested an additional disbursement to the loan on June 11, 2015, and he renewed the existing loan on September 25, 2015, both times pledging 1 million shares of ASA stock as collateral.
Boggs also fraudulently offered the bank a mortgage on real estate he allegedly owned in Kentucky but failed to inform the bank that he had previously sold the property on September 12, 2015. The bank disbursed a total of $198,712 to Boggs in reliance on the false information he provided.
If convicted, Boggs faces 30 years in prison for each count of bank fraud and false statement on a loan application. He also faces up to five years of supervised release, a $1 million fine and restitution.
The FBI conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
A Fourth of July Message from US Attorney J. Douglas OverbeyRead the Press Release
KNOXVILLE, Tenn. - This Thursday brings with it our annual reminder of the inception of our great nation. It began with a statement of unity, a gathering of citizens banding together to put a deeply American sentiment to paper. It was a declaration that our country, belonging to no one but its own citizens, would not quell before the threat of tyranny and of foreign powers. On the fourth of July, we, a nation undivided, were willing to stand together in pursuit of our own freedom and the freedom of generations to come.
The signing of the Declaration of Independence was not the first step towards freedom, nor was it the last, but it serves even today as a resounding moment that the United States of America can still look towards for strength and guidance and remember the ideal of life, liberty, and the pursuit of happiness. It was a brief moment in history with an impact that can be felt even today, and together, as a nation, we celebrate the Declaration of Independence as a milestone, a reminder that the United States is not a country that can be divided.
On this Fourth of July, we as a nation celebrate that unity, that independence from those who would tear us apart. We are America, land of the free and home of the brave. In the words of former Associate Justice of the Supreme Court, Oliver Wendell Holmes, Jr:
“One flag, one land, one heart, one hand, one nation forevermore.”
Best regards
J. Douglas Overbey
United States Attorney
Tuesday 2 July 2019
Woman Who Hid Heroin to Appear Pregnant Pleads Guilty to Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – A woman who hid heroin around her waist and pretended to be pregnant pleaded guilty in federal court today to drug trafficking.
Perla E. Murillo, 18, pleaded guilty before U.S. Chief Magistrate Judge Matt J. Whitworth to possessing heroin with the intent to distribute.
Law enforcement officers were conducting interdiction activities at a local bus station on Nov. 27, 2018. Murillo got off a bus traveling from Denver, Colorado, to New York. Detectives contacted Murillo, who appeared very nervous and looked down at her belly when detectives explained they were looking for illegal narcotics. Upon closer inspection, her belly appeared to be somewhat lumpy or out of shape.
Murillo agreed to be searched and unzipped her maroon jacket. Detectives observed a pink maternity shirt with abnormal lumps and could see what appeared to be pillow stuffing between her pink maternity shirt and a sweatshirt. At that point, Murillo’s eyes began to well up with tears. Detectives looked into the gap between the pink maternity shirt and the sweatshirt and observed two bundles wrapped in grey and red duct tape behind some stuffing. Detectives immediately recognized the bundles to be a common method of transporting large amounts of narcotics.
After Murillo was detained, she removed three bundles that were wrapped to her body with a gauze-type material. The bundles contained a total of approximately 1.9 kilograms (more than four pounds) of heroin. Murillo also told investigators she had been paid $1,000 to transport four similarly-sized bundles of heroin to New York earlier that month.
Under federal statutes, Murillo is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashleigh A. Ragner and Trey Alford. It was investigated by the Drug Enforcement Administration and the Missouri Western Interdiction Narcotics Task Force (MoWIN).
Wisconsin Community Services, Inc. Voluntarily Discloses and Agrees to Pay over $500,000 to Resolve False Billings to Medicare and MedicaidRead the Press Release
United States Attorney Matthew D. Krueger announced today that Wisconsin Community Services, Inc. (“WCS”) agreed to pay $537, 904.33 to the United States and the State of Wisconsin to resolve false claims for prescription medications submitted by WCS to Medicare and Medicaid in violation of the False Claims Act, 31 U.S.C. §3729-3733.
WCS is a not-for-profit corporation based in Milwaukee, Wisconsin. WCS provides a range of services, including outpatient mental health services and an associated pharmacy. WCS voluntarily disclosed to the United States Attorney’s Office that one of its pharmacists submitted claims to Medicare and Medicaid that misrepresented the prescription drugs dispensed by WCS over several years. For example, WCS dispensed generic formulations of prescription medications but billed Medicare and Medicaid for more expensive name brand formulations of the medications. As a result, Medicare and Medicaid paid WCS significantly more reimbursement than it was entitled to receive.
“We appreciate that WCS voluntarily disclosed its violations of the False Claims Act and cooperated with the government’s investigation,” stated United States Attorney Krueger. “At the same time, this settlement will make Medicare and Medicaid whole and protect taxpayer funds.”
“Medicare and Medicaid providers cannot misrepresent the drugs they dispense in order to increase their billings,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our federal, state and local partners to protect the health and safety of Medicare and Medicaid patients and vital taxpayer dollars.”
Assistant United States Attorney Michael Carter represented the government in this matter. The OIG and the Wisconsin Department of Justice Medicaid Fraud Control & Elder Abuse Unit assisted in the investigation. The settlement agreement states allegations only; the defendant does not admit liability for the allegations.
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Veterans Affairs Nurse Sentenced for Drug DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced AARON WAYNE PICKRELL, 50, of Fayetteville, North Carolina, to 3 years’ probation and 90 days house arrest.
PICKRELL was named in a five-count Indictment filed on December 12, 2018, and on March 20, 2019, he pled guilty to one count of Obtaining a Controlled Substance through Forgery, Fraud, Deception, and Subterfuge.
The investigation was conducted by the Department of Veterans Affairs (VA) Office of Inspector General (OIG). It began on February 28, 2018, when authorities received information from a confidential informant indicating that PICKRELL, a registered nurse (RN) at the VA Medical Center (MC) in Fayetteville, North Carolina, was diverting controlled substances for his own use.
On March 1, 2018, investigators met with PICKRELL’s supervisor and learned PICKRELL was assigned to the Intensive Care Unit (ICU), but worked in different sections of the VAMC as needed. A review of VAMC records revealed that PICKRELL had submitted requests through the automated prescription delivery system (Omnicell) fraudulently indicating that a physician had given orders for Hydromorphone (Dilaudid) to be administered to patients. As a result, PICKRELL thereby gained access to the VA’s automated dispensing pharmacy system in order to obtain Hydromorphone for his own purposes.
On March 2, 2018, VA OIG agents conducted an interview of PICKRELL and he admitted that he had diverted Hydromorphone from the VAMC for his own use for at least the past two to three years. A comprehensive audit of the Omnicell transaction reports, VA computerized patient record system, and the Veterans Health Information Systems Technology Architecture system revealed that PICKRELL had diverted 5,930 mg of Hydromorphone between January 1, 2015, until May 1, 2018. The records reflected that PICKRELL had developed a weekly/monthly pattern of diverting controlled substance medications wherein he would override the Omnicell safe guards to withdraw medications without a physician’s order. The scheme was further accomplished by working at various sections within the Fayetteville VAMC, including the nursing home, urgent care, psychiatric unit, and ICU. PICKRELL was terminated by the VAMC on March 5, 2018, due to his failure to maintain statutory and VA policy requirements for appointment as an RN, as well as his diversion of controlled substances.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc
The investigation of this case was conducted by the Department of Veterans Affairs (VA) Office of Inspector General (OIG). Assistant United States Attorney Scott A. Lemmon represented the government.