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Tuesday 2 July 2019
Utah Man Sentenced for Computer Hacking CrimeRead the Press Release
Assistant U. S. Attorney John Parmley (619) 546-7957
NEWS RELEASE SUMMARY – July 2, 2019
SAN DIEGO – Austin Thompson of Utah was sentenced in federal court today to 27 months in prison for carrying out a series of so-called denial-of-service computer hacking attacks against multiple victims between 2013 and 2014. The defendant was also ordered to pay $95,000 in restitution to one of the victims - Daybreak Games, formerly Sony Online Entertainment.
A denial-of-service (DoS) attack occurs when legitimate users are unable to access information systems, devices, or other network resources due to the actions of a malicious cyber threat actor. Essentially the hacker floods the targeted host or network with traffic until the target cannot respond or simply crashes, preventing access for legitimate purposes.
According to the plea agreement, between December 2013 and January 2014, Thompson’s attacks, which flooded his victims’ servers with enough internet traffic to take them offline, were directed mainly at online gaming companies and servers, including then San Diego-based Sony Online Entertainment. Thompson typically used the Twitter account @DerpTrolling to announce that an attack was imminent and then posted “scalps” (screenshots or other photos showing that victims’ servers had been taken down) after the attack. The attacks took down game servers and related computers around the world, often for hours at a time. According to the plea agreement, Thompson’s actions caused at least $95,000 in damages.
The defendant, who is free on bond, was ordered to surrender to authorities on August 23 to begin his sentence.
“Denial-of-service attacks cost businesses and individuals millions of dollars annually,” said U.S. Attorney Robert Brewer. “We are committed to prosecuting hackers who intentionally disrupt internet access.” Brewer praised Assistant U.S. Attorney John Parmley and the FBI’s San Diego Field Office for their hard work on this case.
DEFENDANT Case Number 18cr4775JM
Austin Thompson Age: 23
SUMMARY OF CHARGES
Damage to a Protected Computer, 18 U.S.C. § 1030(a)(5)(A)
Maximum penalty: Ten years in prison, $250,000 fine
AGENCY
Federal Bureau of Investigation – San Diego Field Office
United States Sues Railroad to Recover Millions in Damages Caused by “416” Fire Near DurangoRead the Press Release
DENVER, Colorado — U.S. Attorney Jason Dunn announced today that his office has filed a lawsuit on behalf of the U.S. Forest Service in the U.S. District Court for the District of Colorado against the Durango & Silverton Narrow Gauge Railroad Company and its owner and operator, American Heritage Railways, Inc., seeking to recover damages it suffered as a result of the “416 Fire,” which started on the morning of June 1, 2018, near Durango, Colorado. The United States incurred approximately $25 million in suppression costs and other damages, including rehabilitation costs, which are still to be fully determined.
The 416 Fire burned approximately 54,000 acres, mostly on lands in the San Juan National Forest, and required significant deployment of federal firefighting resources. Five incident management teams (IMTs) were assigned to the fire during the course of the incident. All the IMTs assigned met the objective of keeping the fire west of Highway 550 and north of a large subdivision. The fire burned actively for approximately 61 days and was not declared completely extinguished until November 29, 2018.
In the complaint, the United States alleges that the ignition of the 416 Fire occurred adjacent to the railroad track used by the Durango & Silverton Narrow Gauge Railroad Company. The United States alleges that the fire was ignited by burning particles emitted from an exhaust stack on a coal-burning steam engine locomotive owned and operated by the Durango & Silverton Narrow Gauge Railroad Company and its owner and operator, American Heritage Railways, Inc.
The United States asserts that because the fire was caused by the Durango & Silverton Narrow Gauge Railroad Company and American Heritage Railways, Inc., they should be held liable under federal and Colorado law for all the damages incurred by the United States as a result of the fire, including the costs of fire suppression and the costs to rehabilitate the public lands damaged by the fire.
“Protecting our public lands is one of the most important things we do in the U.S. Attorney’s Office,” said U.S. Attorney Jason Dunn. “This fire caused significant damage, cost taxpayers millions of dollars, and put lives at risk. We owe it to taxpayers to bring this action on their behalf.”
“As with all fire investigations, the 416 Fire investigation was handled with great care and thoroughness. We appreciate the communities’ patience through this process,” said San Juan National Forest Supervisor Kara Chadwick. “We will continue to work toward preventing similar fires from happening by reminding local businesses and the public about their role in protecting nature, and using every available tool to improve forest conditions.”
This matter was investigated by the U.S. Forest Service. The litigation is being handled Assistant U.S. Attorneys Jacob Licht-Steenfat and Katherine Ross.
Two New York Men Charged with Aggravated Identity Theft and Conspiracy to Commit Bank FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announces the June 28, 2019 return of an indictment charging two New York men with aggravated identity theft and conspiracy to commit bank fraud.
The indictment charges TERRENCE NEALY, age 31, of Rockville Center, New York, and MYLES NICHOLAS, age 32, of Jamaica, New York. The defendants were charged with conspiracy to commit bank fraud, which carries a maximum penalty of 30 years in prison, a $1,000,000.00 fine, and up to five years of supervised release. They are also charged with aggravated identity theft, which carries a mandatory sentence of two years in prison consecutive to any other sentence, a maximum $250,000.00 fine, and up to one year of supervised release.
According to court documents, members of the Louisiana Financial Crimes Task Force received information that NEALY and NICHOLAS would be flying to New Orleans from New York on the morning of June 21, 2019. Jefferson Parish Sheriff’s Office deputies and U.S. Secret Service agents initiated surveillance at New Orleans International Airport, where they observed NEALY and NICHOLAS rent a car and immediately travel to Baton Rouge. While in Baton Rouge, the defendants traveled to two local Best Buy stores and attempted to open a fraudulent Best Buy credit card, which is issued by Citibank, using a stolen identity. They then traveled back to New Orleans where they were arrested by state and federal law enforcement.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the agencies that contributed to this indictment, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, the U.S. Postal Inspection Service, the Louisiana Attorney General’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
Tulsa Man Sentenced to 33 Years in Prison for Multiple Armed RobberiesRead the Press Release
TULSA, Okla. – A man convicted of three armed robberies in Tulsa was sentenced Tuesday for his crimes, announced U.S. Attorney Trent Shores. In March 2019, a jury found Melvin Louis Bailey, 26, of Tulsa guilty of obstructing commerce by robbery; carrying, using and brandishing a firearm during a crime of violence; and Hobbs Act conspiracy.
U.S. District Judge Gregory K. Frizzell sentenced Bailey to 33 years in federal prison to be followed by five years of supervised release. The Court denied Bailey’s request for downward variance and further ordered the defendant to pay $7,968 in restitution for his crimes.
“Melvin Bailey committed so many armed robberies in Tulsa and Texas that he lost count of the total number of offenses. His armed robbery crime spree has earned him 33 years in federal prison,” said U.S. Attorney Trent Shores. “The Tulsa Police Department and the Federal Bureau of Investigation joined with Assistant U.S. Attorneys Dennis Fries and Ryan Roberts to form a formidable investigative and prosecution team. This is justice achieved through another Project Safe Neighborhoods prosecution.”
From April 2015 to January 2018, the defendant committed three separate armed robberies of two Walgreens’ locations in Tulsa. During the crimes, Bailey brandished a shotgun or handgun to intimidate Walgreens’ employees. In January 2018, he also conspired with a juvenile to rob the pharmacy. As part of the conspiracy, Bailey provided a mask and firearm to the juvenile, and the two discussed strategy to commit the crime. Afterward, he and his co-conspirator met at Bailey’s apartment and divided the stolen money. Beyond his conviction in the Northern District of Oklahoma, Bailey has been named as a suspect in numerous other armed robberies.
Bailey remains in the custody of the U.S. Marshals Service pending transfer to a U.S. Bureau of Prisons facility.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Dennis A. Fries and Ryan M. Roberts prosecuted the case.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.
Tukwila, Washington Man Sentenced to 6 Years in Prison for Possession of Child PornographyRead the Press Release
A 50-year-old Tukwila, Washington man, with a prior state conviction for possession of child pornography, was sentenced July 1, 2019, to six years in prison, announced U.S. Attorney Brian T. Moran. JEFFREY ALLEN MORRIS was arrested in September 2018, following a cybertip to the National Center for Missing and Exploited Children (NCMEC). At the sentencing hearing, U.S. District Judge James L. Robart sentenced MORRIS to ten years of supervised release to follow prison, telling the defendant that he needed to get control of his demons or he would “spend the rest of his life in prison.”
According to records filed in the case, the investigation by the Seattle Police and Homeland Security Investigations began May 10, 2018, when Microsoft Skype reported to NCMEC that a subscriber, MORRIS, had uploaded images of child rape. Law enforcement confirmed the images were sexual abuse of toddlers. A review of MORRIS’ Skype chats revealed his interest in sex acts with children as young as 3 years old. When law enforcement conducted a court-authorized search of MORRIS’ residence, forensic analysis revealed hundreds of images of child rape and molestation on his electronic devices.
MORRIS served a 21-month state sentence in 2007 for possession of images of child pornography. In that case, he had posted over 100 images of sexually explicit images of child rape and abuse to Yahoo.com profile photos. A search of his computers at that time revealed he had more than 700 images and 14 movies depicting the sexual abuse of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 better, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by Homeland Security Investigations, as part of the Internet Crimes Against Children (ICAC) Taskforce led by the Seattle Police Department.
The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
Three Texas Men Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – RAFAEL MOLINA, age 43, GUSTAVO BALDERAS, age 32, and MICHAEL GARZA, age 34, all residents of Texas, were charged February 22, 2019, in a six-count indictment by a Federal Grand Jury with several narcotics offenses, including conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride and five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine, use of a communication facility to facilitate a drug trafficking crime, and distribution of cocaine hydrochloride, announced U.S. Attorney Peter G. Strasser.
According to court records, a Drug Enforcement Administration (DEA) Task Force identified MOLINA as an upper level narcotics trafficker of cocaine in the Thibodaux, Louisiana area. Between July 2018 and September 2018, MOLINA made several telephone calls in the Eastern District of Louisiana to facilitate a cocaine conspiracy and on September 28, 2018, distributed more than 500 grams of cocaine hydrochloride to the Eastern District of Louisiana.
On February 10, 2019, the DEA Task Force learned that MOLINA was en route to Thibodaux to deliver two kilograms of cocaine. Task Force officers established surveillance in Thibodaux and observed MOLINA, riding in a white pickup truck, and BALDERAS and GARZA, riding in a black Chrysler 300, registered to GARZA, at a motel in Thibodaux. GARZA and BALDERAS entered the truck with MOLINA and they departed from the motel. As the three departed the motel, officers conducted a traffic stop on the truck. Agents searched both vehicles and located a Yeti ice chest in the Chrysler 300. Inside the Yeti were two kilograms of cocaine hydrochloride.
If convicted, MOLINA, BALDERAS and GARZA face a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00 and at least five years of supervised release following any term of imprisonment.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations-Harlingen, Texas, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Sumter Women Sentenced to Federal Prison in Healthcare Fraud SchemeRead the Press Release
Columbia, South Carolina – United States Attorney Sherri A. Lydon announced today that Angela Breitweiser Keith, age 53, and Ann Davis Eldridge, age 58, both of Sumter, were sentenced after pleading guilty to one count of making false statements to defraud Medicaid. United States Magistrate Judge Paige J. Gossett of Columbia sentenced Keith to 12 months in federal prison and Eldridge to 6 months.
Facts presented during the hearing showed that Keith and Eldridge were executives of the South Carolina Early Autism Project (SCEAP). SCEAP provided behavioral health and education solutions for children and young adults, particularly those diagnosed with autism. SCEAP began providing Applied Behavior Analysis (ABA) services for children with autism in 2003, becoming the number one biller in the country for ABA services by 2015. SCEAP overcharged Medicaid and Tricare (military-affiliated insurance) millions of dollars by inflating billing records and charging the government for services it did not provide to clients. SCEAP employees reported to the government that they were pressured to exaggerate the amount of time they spent delivering services to the clients. Company emails indicated that SCEAP encouraged employees to unlawfully bill for time while waiting in driveways, traveling to and from servicing the clients, and even while sitting in restaurants. The employees also indicated that they had required billing goals they had to meet to qualify for job benefits and/or bonuses. These bonuses included gift cards and company-expensed vacations.
Ann Eldridge was a co-founder of SCEAP and Angela Breitweiser Keith worked at the SCEAP since its inception. In December 2012, Eldridge and her partner sold SCEAP to a company called Chancelight for over $18 million. Eldridge and Keith remained with the company, continuing in leadership roles in South Carolina. Chancelight engaged Eldridge to promote the SCEAP system to other Chancelight franchises in the Southeast and promoted Keith to Senior Vice President of Data Reporting and Analysis. In 2018, SCEAP/Chancelight repaid the government nearly $9 million for overbilling Medicaid and Tricare in a civil settlement.
“The U.S. Attorney’s Office will aggressively protect the integrity of our health care system,” said U.S. Attorney Lydon. “Those found cheating the system face the prospect of both civil fines and federal prison time.”
“Fraudulently diverting funds from vital government healthcare programs comes at a cost—as this sentence illustrates,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health & Human Services, Office of Inspector General. “Every dollar overcharged decreases funds available to provide desperately needed healthcare services to this vulnerable population. We will continue working with state and federal law enforcement partners to bring such criminals to justice.”
"These sentencings are the product of a thorough investigation and demonstrate the commitment of the Defense Criminal Investigative Service (DCIS) and our law enforcement partners to hold dishonest medical service providers accountable when they submit false bills and divert taxpayer funds," said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office. "DCIS will continue to protect the integrity of the Department of Defense by rooting out fraud, waste, and abuse that negatively impacts critical programs such as TRICARE."
The investigation was conducted by members of the Department of Health and Human Services, Office of Inspector General, the Department of Defense, Office of Inspector General and the South Carolina Attorney General’s Office. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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St. Charles Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
St. Louis –Jonathen Aguilar, 31, of St. Charles, Missouri, pleaded guilty to one felony count of conspiracy to distribute and possess with the intent to distribute between 1.2 and 4 kilograms fentanyl. Aguilar appeared in federal court today before U.S. District Judge Rodney L. White who accepted his plea and set his sentencing date for October 2, 2019.
According to court documents, on September 13, 2018, a suspicious package was sent to the address of 2017 Avignon Drive in St. Charles, Missouri from California. Aguilar and co-defendant Ruben Lopez were involved in retrieving the package from Avignon Drive and delivering it to another residence at 425 Molina Way.
On September 18, 2018, inspectors discovered a suspicious package addressed to a “Kimberly Coxx” at “2017 Avignon Dr” and a La Mirada, California return address. Investigators obtained a federal warrant to search the package. Inside, inspectors discovered fentanyl. The fentanyl was seized.
Based on additional investigation, investigators obtained a search warrant for 2017 Avignon Drive and 425 Molina Way. During the Avignon Drive search, investigators located and seized, among other things, a stolen Glock 27 .40 caliber handgun with an ammunition magazine containing twelve rounds; two suspected pill presses with drug residue; fentanyl; and an empty postal box mailed on August 30, 2018. During the Molina Way search, investigators located and seized, among other things, fentanyl and $19,000.
On September 20, 2018, the Drug Enforcement Administration received information that an additional package was present on the porch at 2017 Avignon Drive. Investigators obtained a federal warrant to search the package. Inspectors located fentanyl inside.
Aguilar faces a penalty of imprisonment of not more than life, a fine of not more than $10,000,000 or both. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
These charges are a result of a joint investigation between the St. Louis Division of the Drug Enforcement Administration, the United States Postal Inspection Service with assistance from the St. Charles County Police Department, the St. Charles County Regional Drug Task Force, the St. Charles County Prosecuting Attorney’s Office and the St. Peters Police Department.
Springfield Man Charged with ExtortionRead the Press Release
BOSTON – A Springfield man was arrested today and charged in federal court in Springfield with extortion.
Anthony J. Scibelli, 51, was charged with one count of collecting on an extension of credit by extortionate means. He will appear in federal court in Springfield later today.
According to the criminal complaint, in 2019, Scibelli collected on a line of credit that had been extended to a victim. It is alleged that on June 19, 2019, Scibelli threatened and beat the victim for failing to make the monthly $1300 payment. The beating occurred in front of four plain clothed members of law enforcement. During the beating, Scibelli allegedly threatened that the victim must have all the money “on the first,” referring to the 1st of the month.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office and Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Dakota Federal Prosecutor Honored with Top American Bar Association Award for Young LawyersRead the Press Release
SIOUX FALLS, SD – United States Attorney Ron Parsons is pleased to announce that Tamara Nash, Special Assistant U.S. Attorney in the Sioux Falls Office, has just been named as one of the American Bar Association’s Top 40 young lawyers as recognized by the ABA On The Rise Award.
The On The Rise Award program provides national recognition for ABA young lawyer members who exemplify a broad range of high achievement, innovation, vision, leadership, and legal and community service.
“Tamara Nash’s strength of character and dedication to the rule of law bring honor to the Department of Justice,” said U.S. Attorney Parsons.
Tamara attended Wayne State College (Wayne, Nebraska), where she graduated magna cum laude in 2009. Immediately following college Tamara perused her life-long dream of becoming an attorney and attended the University of South Dakota School of Law, graduating with honors in 2013.
Upon completing her education, Tamara clerked for one year with the Second Judicial Circuit in Sioux Falls. While clerking, Tamara had a diverse experience in the law and had the opportunity to be mentored by several members of the judiciary.
Following clerking, Tamara achieved her career goal of becoming a prosecutor when she was hired in 2014 to serve as Deputy State’s Attorney for Union County, South Dakota. In that capacity, Tamara prosecuted misdemeanor and juvenile offenses in rural South Dakota.
In spring 2016, Tamara transitioned into her current position as a Special Assistant United States Attorney for the State of South Dakota. She represents both the federal and state arms of prosecution. Tamara works with both the Attorney General’s Office as well as the United States Attorney Office to prosecute firearm and high intensity drug cases.
Tamara maintains her commitment to public service by remaining active in the legal community. In the South Dakota State Bar, Tamara serves as President of the South Dakota State Bar Young Lawyers Section. She also serves on the State Bar Law School Committee and Committee for Diversity and Inclusion. Tamara also is active within the American Bar Association Young Lawyers Division. This year, Tamara serves as the Chair of the Minorities in the Profession Committee and a Liaison to the Women in the Profession Committee.
Six Sentenced to Federal Prison in Deadly Fentanyl Distribution ConspiracyRead the Press Release
NASHVILLE, Tenn. – July 2, 2019 – Six individuals have been sentenced for their role in a fentanyl distribution conspiracy which caused a massive number of overdoses and resulted in at least one death, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. The July 2016 episode also left more than 20 persons hospitalized in the Murfreesboro, Tennessee area.
Joedon Bradley, 31, of Nashville, Tennessee, was sentenced yesterday to 30 years in prison and Jonathan Barrett, 31, of Murfreesboro, Tennessee, was sentenced to 23 years in prison. Johnny Williams, 33, also of Murfreesboro was sentenced in December 2018 to 20 years in prison. A federal jury convicted the trio in March 2018, after an eight-day trial.
Also sentenced yesterday were Eric Falkowski, 37, of Kissimmee, Florida, 266 months in prison; and Davi Valles, Jr., 26 of Nashville, Tennessee, seven years in prison. Falkowski and Valles pleaded guilty in 2017.
Sentenced today was LaKrista Knowles, 27, of Nashville, Tennessee, who pleaded guilty in May 2017, 100 months in prison.
The remaining defendants, Preston Davis, 25, of Madison, Tennessee, and Jennifer Dogonski, 35, of Farmington, Michigan, formerly of Murfreesboro, previously pleaded guilty and will be sentenced in September.
During the course of sentencings, U.S. District Judge Jack Zouhary, sitting by special designation, said that this was “one of the saddest cases” he had seen in his time on the bench and “it was as if [the defendants were] putting a gun to someone’s head.”
This investigation began in July 2016, when law enforcement and medical personnel in the Murfreesboro, Tennessee area were overwhelmed by a series of overdoses caused by pills that appeared to be prescription Percocet pills. The pills were counterfeit and contained fentanyl, alprazolam, and acetaminophen, and had been produced by Joedon Bradley and Eric Falkowksi.
According to testimony at trial, in May 2016, Eric Falkowski moved his illicit pill operation to Madison, Tennessee, after law enforcement conducted a search of his home in Florida and seized his pill presses. Following the seizure, Falkowski obtained more fentanyl through the internet from China and purchased a new pill press through Amazon.com.
Beginning on July 4, 2016, Joedon Bradley and Eric Falkowski mixed together a combination of inert pill binder, alprazolam (“Xanax”), acetaminophen (sold as Tylenol), and fentanyl. Over the course of approximately 24 hours, Joedon Bradley helped produce thousands of pills, using a pill mold that imprinted “A333” onto the finished product: a white, oblong pill that was almost identical to a prescription A333 Percocet pill.
On July 5, 2016, Johnny Williams obtained approximately 300 pills through the chain of distribution. Williams arranged to sell 150 of those pills for $1,050, to Jonathan Barrett through Jennifer Dogonski, a woman who acted as a broker.
During the period of July 5-6, 2016, Jonathan Barrett, Johnny Williams and Joedon Bradley all distributed counterfeit Percocet pills containing fentanyl, with the markings “A333,” that were produced by Falkowski and Bradley. On July 6, 2016, Barrett learned that some individuals who had purchased the counterfeit pills had overdosed, and that one had possibly died, but he continued to distribute the counterfeit pills.
Law enforcement later searched a home in Madison, Tennessee, pursuant to a federal search warrant, and found, among other things, the pill press, multiple molds used for embedding text onto pills, including a mold for “A333,” a pill grinder, fentanyl, alprazolam and other drug manufacturing equipment. Testing later confirmed that the mold found at the house was the same mold used to make some of the pills seized from overdose victims during the investigation.
This case was investigated by the Drug Enforcement Administration; the Tennessee Bureau of Investigation; the Murfreesboro Police Department; the Rutherford County Sherriff’s Office; and the Food and Drug Administration. The case was prosecuted by Assistant U.S. Attorneys Amanda J. Klopf and Brent A. Hannafan.
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Six Plead Guilty to Defrauding the United StatesRead the Press Release
Abingdon, VIRGINIA – Two employees of Kennedy Industrial Electronics, and their wives, have pleaded guilty to a payroll tax scheme that dates back at least 15 years and with defrauding the United States out of more than $907,000 of disability benefits, in addition to $148,000 in employment taxes, United States Attorney Thomas T. Cullen announced today. An additional employee was indicted by a federal grand jury on June 25, 2019, on similar charges.
Yesterday in U.S. District Court in Abingdon, Harold Kennedy, 64, and Hollie Kennedy, 67, both of Lebanon, Va., the owners of Kennedy Industrial Electronics, Inc., pleaded guilty to one count of conspiracy to defraud the United States and one count of failing to pay over and collect employment taxes.
Last week, Danny M. Hill, 70, of Lebanon, Va., pleaded guilty to one count of conspiracy to defraud the United States. Geneva Hill, 64, of Lebanon, Va., pleaded guilty to one count of causing to be made a false representation concerning the requirements of the Social Security Act. In addition, last week Gerald Lee Stevens, 45, of Lebanon, Va., pleaded guilty to one count of conspiracy to defraud the United States. Teena Charlene Stevens, 47, of Lebanon, Va., pleaded guilty to one count of causing to be made a false representation concerning the requirements of the Social Security Act. Ricky Allen Matney, 58, of Honaker, Va., was indicted on one count of conspiracy to defraud the United States and two counts of providing false information to the Social Security Administration.
“Disability, payroll, and other types of employment fraud are serious federal crimes and ones that, collectively, put a significant burden on vital government programs,” U.S. Attorney Cullen stated today. “As this case indicates, the Department of Justice will vigorously investigate and prosecute these types of workplace-fraud schemes and hold those who profit from illegal activities accountable.”
According to documents filed with the court, between 2001 and 2015 the defendants conspired to defraud the United States through a scheme in which Harold and Hollie Kennedy, the owners of Kennedy Industrial Electronics, failed to report approximately $148,000 in employment taxes. Those taxes were owed through hours worked by employees Danny Hill, Gerald Stevens, and Ricky Matney.
However, Danny Hill, Gerald Stevens, and Ricky Matney were each receiving disability benefits from the Social Security Administration and therefore unable to earn additional income without reporting. As a result, the conspirators issued checks to their spouses, Geneva Hill and Teena Stevens, and others.
Defendants Danny Hill, Gerald Stevens, Ricky Matney, Harold Kennedy, and Hollie Kennedy each face a prison sentence of up to five years on the conspiracy charge.
The investigation of the case was conducted by the Internal Revenue Service (Criminal Investigations), the Social Security Administration Office of the Inspector General, and the Russell County Sheriff’s Office. Assistant United States Attorney Lena Busscher is prosecuting the case for the United States.
Sioux City Man to Federal Prison for Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and possessed guns was sentenced June 28, 2019, to 19 years in federal prison.
Travis Wayne Mattson, age 35, from Sioux City, Iowa, received the prison term after a November 26, 2018, guilty plea to conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
At the guilty plea, Mattson admitted his involvement in a conspiracy that from January, 2017, through approximately May 11, 2018, distributed nearly 10 pounds of methamphetamine mixture in the Sioux City, Iowa area. Mattson kept his methamphetamine and drug proceeds in safes inside his home. Evidence also showed that on one occasion Mattson fired multiple rounds at a drug customer’s residence. During a search warrant of Mattson’s residence, law enforcement located methamphetamine, drug paraphernalia, a digital scale, 9mm rounds of ammunition, a bullet proof vest, and two guns. Evidence at the sentencing further showed that Mattson installed metal and wood barricades to fortify his residence as well as security cameras to monitor entrances to the residence.
Mattson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Mattson was sentenced to 228 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Mattson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by the Iowa Division of Narcotics Enforcement, Iowa Department of Criminalistics Investigation, Spencer Police Department, Clay County Sheriff’s Office, Iowa Great Lakes Drug Task Force, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4043. Follow us on Twitter @USAO_NDIA.
Scranton Mayor Pleads Guilty to Corruption ChargesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Scranton Mayor William L. Courtright, age 61, of Scranton, Pennsylvania, pleaded guilty today to a criminal information charging him with three felony public corruption offenses. The guilty pleas were entered before Chief United States District Court Judge Christopher C. Conner in Williamsport where Judge Conner was presiding over a trial in an unrelated matter. Before entering his guilty pleas, Courtright resigned from his position as Mayor of Scranton.
According to United States Attorney David J. Freed, the criminal information charges Courtright with engaging in a multi-year conspiracy with unidentified individuals to take bribes from vendors who did business with the City. The information also alleges that other objectives of the conspiracy were to commit the offenses of attempted extortion under color of official right and extortion through use of fear of economic harm.
Courtright’s corrupt activities came to light during a multi-year undercover investigation headed by the FBI. The undercover investigation revealed that the former mayor accepted cash payments from vendors doing business with the city in a pay-to-play scheme.
“In this County, in this Commonwealth, in this Country – our elected officials work for us,” said U.S. Attorney Freed. “Not the other way around. Using public office for personal financial gain is a crime, plain and simple. All citizens, not just those of us in law enforcement, should demand that our public officials scrupulously follow the law. And when they do not, no matter how difficult the investigations may be, or how long they may take, the United States Department of Justice and our law enforcement partners will hold them to account. I want to commend the painstaking work of our partners at the FBI who have never wavered in their commitment to the citizens of this district. We are also grateful for the valuable assistance of IRS-Criminal Investigations and the Pennsylvania State Police. We will not rest in the fight against corruption.”
“Bill Courtright used the city of Scranton,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “He traded on his office in exchange for money and other valuable favors. He wielded his official powers for his own benefit, when he should’ve been focused on that of his community. The FBI will never stop seeking to bring to justice corrupt public officials who so badly betray the public trust. To that end, we and our partners at the Pennsylvania State Police and the IRS have launched a task force specifically to take on public corruption in the northeast Pennsylvania region. We’re working on behalf of the people, who expect — and deserve — honest services from all their elected officials.”
The FBI was assisted during the investigation by the Pennsylvania State Police and the Internal Revenue Service Criminal Investigations. Assistant United States Attorneys Michael Consiglio, Michelle Olshefski and William Houser are prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 35 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Santa Fe Springs Gang Member Pleads Guilty to Racketeering Charges and Admits 2016 Murder of Rival Gang MemberRead the Press Release
LOS ANGELES – A member of a street gang that operates in Santa Fe Springs and Whittier pleaded guilty today to federal criminal charges, including ones stemming from the April 2016 murder of a rival gangster outside a San Gabriel Valley restaurant.
Leonardo Antolin, 25, of Whittier, pleaded guilty to five felonies before United States District Judge Virginia A. Phillips, who scheduled a September 23 sentencing hearing. In a plea agreement filed in this case, Antolin has agreed to serve a sentence of 33 to 40 years in federal prison.
Antolin – a member of the Mexican Mafia-affiliated Canta Ranas gang – admitted in the plea agreement that on April 19, 2016, he executed a Mexican Mafia member whom prosecutors allege wanted to expand his influence and challenge the authority of other Mexican Mafia members in the San Gabriel Valley. During the incident at a restaurant in the San Gabriel Valley community of Bassett, the Mexican Mafia member was fatally shot, his bodyguard was severely wounded, and an innocent restaurant patron was shot six times in the abdomen, back, buttocks and legs. Antolin also admitted to aiding in the trafficking of methamphetamine on behalf of Canta Ranas.
Antolin pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to traffic in controlled substances, and discharging a firearm during a violent crime.
This guilty plea arose from a 2016 federal grand jury indictment charging 51 defendants that was the result of Operation Frog Legs. Prosecutors have secured more than 20 convictions so far in this matter. A trial for Jose Loza, 40, a Mexican Mafia member and Canta Ranas shot caller, and Ronald Sotello, 43, is scheduled to begin on July 30.
Operation Frog Legs is the result of an investigation by the Southern California Drug Task Force, which is led by the Drug Enforcement Administration as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. The Task Force members that participated in Operation Frog Legs were U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, the Whittier Police Department, the Los Angeles County Sheriff’s Department, IRS Criminal Investigation, and the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit.
This matter is being prosecuted by Assistant United States Attorney Carol Alexis Chen, Chief of the International Narcotics, Money Laundering, and Racketeering Section, and Assistant United States Attorneys Victoria A. Degtyareva and Kathy Yu, also of the International Narcotics, Money Laundering, and Racketeering Section.
Rochester Man Going to Prison for 15 Years for Possession of Child PornographyRead 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 Scott Wilbert, 43, of Rochester, NY, who was convicted of possession of child pornography, was sentenced to serve 180 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Melissa Marangola, who handled the case, stated that the FBI Child Exploitation Task Force identified Wilbert sending child pornography from his computer web camera to another user of an online chat site. As a result, the New York State Police began to investigate the defendant, who was identified as a registered sex offender from a prior conviction for sexual abuse of a child.
In February 2016, officers executed a search warrant at Wilbert’s residence on Garson Avenue in Rochester and seized a laptop computer and SD cards containing thousands of images and videos of child pornography. A forensic examination of the computer and SD cards recovered sexually explicit photographs of prepubescent children, some as young as toddlers.
The sentencing is the culmination of an investigation by the New York State Police, under the direction of Major Eric Laughton, and Special Agents of Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in- Charge Gary Loeffert.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Ringleader Who Headed Cocaine Conspiracy Between Puerto Rico and Buffalo 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 Cesar Rivera-Figueroa, aka Fat Boy, 28, of San Juan, Puerto Rico, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to engaging in a continuing criminal enterprise. The charge carries mandatory minimum penalty of 20 years in prison, a maximum of life and a $2,000,000 fine.
Assistant U.S. Attorneys Laura Higgins and Wei Xiang, who are handling the case, stated that the defendant was the leader of a drug trafficking organization who coordinated the transport of cocaine from multiple suppliers in Puerto Rico to the Buffalo area. Rivera-Figueroa then directed the distribution of cocaine, which included setting the price of cocaine, directing the collection of debt and the storage of proceeds, and instructing how payment was remitted back to Puerto Rico. The defendant also directed co-defendants to make trips to New York City to retrieve quantities of cocaine to bring back to Buffalo for distribution, and to make payment for the cocaine.
Throughout the course of the conspiracy, several packages containing kilogram-quantities of cocaine were sent from Puerto Rico and were intercepted by the United States Postal Inspection Service.
Cesar Rivera-Figueroa was arrested in September 2017 along with 11 others including: Jenhsen Rodriguez; Daniel Navarro; Virgen Perez-Jurado; Josue Cardona-Soto; Devincio K.D. James; Omar Vazquez-Baez; Luis Andino; Joseph Jones; Quinton Jones; Sucley Romero; and Tori Rockmore. Rivera-Figueroa is the fourth defendant to be convicted. 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.
The plea is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in Charge John B. Devito, New York Field Division; the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Joseph W. Cronin; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; and the Erie County Sheriff’s office, under the direction of Sheriff Timothy Howard.
Sentencing is scheduled for November 8, 2019, before Judge Vilardo.
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Registered Nurse Indicted on Drug Diversion ChargeRead the Press Release
BOSTON – A Haverhill nurse was charged in federal court in Boston with tampering with patients’ morphine.
Brianna Duffy, 32, was indicted on one count of tampering with a consumer product and one count of acquiring a controlled substance by fraud or deception. Duffy will appear in federal court in Boston this afternoon.
As alleged in the indictment, on March 17 and 18, 2019, while working as a registered nurse at Hunt Nursing and Rehab in Danvers, Duffy tampered with morphine sulfate prescribed to an 89-year old hospice patient. In an attempt to avoid detection, she replaced the extracted medication with another liquid, diluting the morphine to just 26% of the prescribed concentration. The hospice patient received the diluted morphine and suffered unnecessary pain.
It is further alleged that from December 2016 until July 2017 while working as a registered nurse at Maplewood Care and Rehabilitation Center in Amesbury, Duffy diverted morphine from two bottles that were prescribed to a 68-year old patient. Duffy subsequently diluted the remaining morphine with another liquid, leaving only 1.2%-2.5% of the declared concentration of morphine. Duffy tested positive for morphine on July 18, 2017.
The charges provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office on Investigation; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Elysa Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Raleigh Man Sentenced to 151 Months for Illegally Receiving Child PornographyRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that United States District Judge Louise W. Flanagan sentenced WILLIAM TREVOR SOLOFF, 52, of Raleigh to 151 months’ imprisonment, followed by 10 years of supervised released.
On January 24, 2019, SOLOFF, pursuant to a Waiver of Indictment and with a written Plea Agreement, pled guilty to a Criminal Information which charged him with Receipt of Child Pornography that concluded on May 19, 2017.
Between March and May of 2017, the Apex North Carolina Police Department received four separate cyber tips from the National Center for Missing and Exploited Children (NCMEC) indicating that the user of an IP address, later identified as assigned to SOLOFF, uploaded one or more images of child pornography to chatrooms on the website Chatstep and to SOLOFF’S Yahoo! Messenger account.
Investigators determined SOLOFF was residing on Abruzzo Drive in Apex with his wife and stepdaughter. On June 30, 2017, a search warrant was executed at SOLOFF’S residence during which SOLOFF made an unprotected statement wherein he admitted to visiting the website Chatstep and acknowledged observing images of child pornography in chatrooms that he visited. Investigators informed SOLOFF that the logs from Chatstep reflected that the usernames “Trevor” and “TrevorinNC,” which originated from SOLOFF’S IP address, had been recorded uploading images of child pornography to Chatstep chatrooms on more than one occasion. SOLOFF stated it was possible he could have taken an image that he saw during a conversation and shared it. SOLOFF also admitted to having a Yahoo account; however, he indicated he did not remember if he sent those images.
Investigators conducted a forensic examination of SOLOFF’S computer, various hard drives, and other forms of digital media seized from SOLOFF’S residence and discovered a total of 1,910 images and 96 videos (96 videos x 75 images = 7,200 images) depicting child pornography. The longest video that was discovered was 38 minutes and 16 seconds in duration. Of the images and videos, 255 depicted the sexual abuse of infants or toddlers, 317 portrayed sadistic or masochistic conduct or other depictions of violence, and 13 depicted bestiality.
Mr. Higdon commented: “The uploading, downloading, sharing, transmission, sending, or any use of images or videos depicting child pornography victimizes the vulnerable victims seen in those images and further generates more demand for such images, which further victimizes innocent children. We are committed to breaking this awful and degrading cycle and to punishing the criminals - like William Soloff - who are involved. We are grateful for the serious way in which the Court handled this matter and for the sentence which the court imposed for its horrendous crime.”
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov
The investigation of this case was conducted by the Federal Bureau of Investigation (FBI) and the Apex Police Department. Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Project Safe Neighborhoods Investigation Nets Twelve Arrests in WoonsocketRead the Press Release
PROVIDENCE, RI – A four-month FBI Safe Streets Task Force Project Safe Neighborhoods investigation into the trafficking of fentanyl, cocaine, and crack cocaine on the streets of Woonsocket culminated today with the dismantling of at least three alleged drug trafficking conspiracies.
To date, twelve individuals have been charged, and law enforcement has seized four firearms, significant quantities of fentanyl pills, crack cocaine, cocaine, marijuana, and approximately $12,000 in cash.
Teams of federal, state, and local law enforcement agents and officers fanned out early this morning and arrested six individuals on federal criminal complaints, three individuals on state charges, and executed four federal court-authorized search warrants. Additionally, federal charges were unsealed today brought against an individual currently detained at the ACI.
Prior to today, members of the Safe Street Task Force arrested two individuals charged by way of federal criminal complaints and executed one federal court-authorized search warrant.
Leading up to today’s arrests, law enforcement made nearly two dozen undercover drug purchases and seized 1,964 fentanyl pills (332.9 grams),116.2 grams of powder fentanyl, 296 grams of marijuana, 244 grams of crack cocaine, 20 grams of powder cocaine, 3 firearms, and $1,800 U.S. currency.
Today, law enforcement seized a loaded 9 millimeter handgun, and approximately 144 grams of crack cocaine and 1,094 grams of cocaine, and $10,200 in cash.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Aaron L. Weisman said, “These twelve arrests in Woonsocket should be looked upon as a warning to others: Be it in Woonsocket or in any community in Rhode Island where drug traffickers are peddling their poison and impacting the safety and quality of life in our neighborhoods, federal, state, and local law enforcement will team up and bring to bear the full-force of the Department of Justice’s Project Safe Neighborhoods initiative.”
“Today’s arrests exemplify the epitome of law enforcement agencies working together to target and dismantle drug trafficking organizations that threaten the safety and stability of our neighborhoods,” commented Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta. “The residents of Woonsocket have been dealing with drugs and violence for far too long and the FBI Safe Streets Task Force will continue to use all of the tools we have at our disposal to make sure the people who are peddling these poisons on our streets—many of whom are repeat, violent offenders—are held accountable.”
Woonsocket Police Chief Thomas Oates added, “Working with our federal partners allows the Woonsocket Police Department to bring added resources to Woonsocket to combat illegal drug trafficking which is so harmful to our community. We will continue to use any and all resources available to us to continue to try and improve the quality of life and safety of the residents of the City of Woonsocket.”
Charged by way of federal criminal complaint in U.S. District Court:
David Bradford, 34
Conspiracy to distribute 28 grams or more of cocaine base
Conspiracy to distribute 40 grams or more of fentanyl
Possession with intent to deliver 28 grams or more of cocaine base
David Kennedy, 29
Conspiracy to distribute 28 grams or more of cocaine base
Possession with intent to distribute cocaine base
Jason Simpson, 34
Conspiracy to distribute 28 grams or more of cocaine base
Possession with intent to distribute cocaine base
Christopher Nieves, 34 (detained at the ACI)
Conspiracy to distribute 28 grams or more of cocaine base
Possession with intent to distribute cocaine base
James Ruth, 31
Conspiracy to distribute 28 grams or more of cocaine base
Possession with intent to distribute cocaine base
Gilbert Delestre, 29
Possession with intent to distribute 28 grams or more of cocaine base
Possession with intent to distribute cocaine
Conspiracy to distribute 28 grams or more of cocaine base
Sean Breton, 27
Possession with intent to distribute cocaine base
John Switzer, 37, arrested May 1, 2019
Conspiracy to distribute 400 grams or more of fentanyl
Possession with intent to deliver and distribution of 400 grams or more of fentanyl
Charged in Rhode Island State Court:
Victoria Kinnecom, 24
13 counts of conspiracy to manufacture with intent to deliver a Schedule 1 substance
Trevis Woods, 30
4 counts of possession with intent to distribute a Schedule 1substance
9 counts of conspiracy
Christopher Grondin, 29
7 counts of conspiracy
5 counts of possession with intent to distribute a Schedule 1 substance
Damien Drolet, 32, arrested April 3, 2019 (detained at the ACI)
Possession with intent to distribute a controlled substance
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty in court.
Cases charged in U.S. District Court are being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Woonsocket Police Chief Thomas Oates thank the Central Falls, Cranston, Pawtucket, Warwick and Providence Police Departments, Rhode Island State Police, Rhode Island National Guard, and Adult Correctional Institutions for their assistance.
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Pittsburgh Woman Sentenced for Mail TheftRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to two years’ probation and 100 hours’ community service on her conviction of mail theft, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Ekeyma Harris, 32.
According to information presented to the court, on November 17, 2018, a woman living in Longmont, Colorado, reported to her local police department that she believed she had been victimized by unknown individuals living in Jamaica who telephoned her and reported that she was a Publishing Clearing House winner. In order to collect her winnings, the callers convinced her to send two U.S. Postal Express packages, one to "David Miller" containing $810 and a second to "James Holliday" containing $6,800 to an address on Imogene Road, Pittsburgh, Pennsylvania 15217. Following her report, the Postal Service intercepted the package and delivered it on November 21, 2018, under the direction of law enforcement. Harris opened the door and signed a fictitious name on a Postal Service Domestic Return Receipt, in order to take receipt of the package and its contents, knowing that no individual by the name of James Holliday resided at that address.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the successful prosecution of Harris.
Omaha Woman Sentenced for Preparing a False Tax ReturnRead the Press Release
United States Attorney Joe Kelly announced that Opal Harris, age 38, of Omaha, Nebraska, was sentenced Monday in federal court for willfully preparing a false tax return. The Honorable Robert F. Rossiter, Jr. sentenced Harris to five years of probation and ordered her to pay $31,404 in restitution.
An investigation conducted by IRS Criminal Investigations determined that Harris worked as an income tax preparer at Wise Tax Solutions, a business owned and operated by Harris and her husband. Investigators learned that Wise Tax Solutions customer tax returns prepared by Harris represented, through the inclusion of a Schedule C, income amounts that were false. As a result of the falsified individual income tax returns, Wise Tax Solutions’ customers qualified for earned income tax credit to which they were not entitled. Based upon these tax credits, customers received income tax refunds to which they were not entitled.
Between 2012 and 2015, Harris prepared and filed with the IRS federal income tax returns that were false and fraudulent, resulting in a loss to the IRS totaling $31,404.
“Tax practitioners and return preparers have a duty to their clients to prepare tax returns that comply with the law and are complete and accurate,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.
This case was investigated by IRS Criminal Investigations.
Ohio County woman admits to methamphetamine chargeRead the Press Release
WHEELING, WEST VIRGINIA –Tiffany Markle, of Wheeling, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Markle, age 33, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Methamphetamine.” Markle admitted to distributing methamphetamine in Marshall and Ohio Counties from July 2018 to February 2019. The government is also seeking the forfeiture of the Markles’ residence at 36 Fernwood Avenue in Wheeling.
Markle faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Newark, NJ Man Sentenced to Two ½ Years for Lying to Purchase Firearms in PennsylvaniaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Kevin Elcock, 33, of Newark, NJ was sentenced to 30 months’ incarceration by U.S. District Court Judge Jeffrey Schmehl.
The defendant was sentenced after pleading guilty to seven counts of making false statements to federally licensed firearm dealers in Northampton and Bucks Counties. From December 27, 2016 through July 31, 2018, on seven different occasions, Elcock lied about his state of residence – claiming that he lived in Pennsylvania when he actually lived in New Jersey. Those lies were a federal crime. The defendant lied in this manner because he claimed it was “easier” to purchase firearms in Pennsylvania than in New Jersey. The defendant then sold many of the guns that he purchased to people with criminal histories who would otherwise not have been able to purchase weapons legally.
“Federal laws for purchasing and owning firearms exist to protect public safety, and this defendant purposefully and arrogantly flouted those laws,” said U.S. Attorney McSwain. “Reducing violent crime by keeping illegal guns off of our streets is a top priority for the Department of Justice and my Office.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
New Britain Man Sentenced to Prison for Possession of Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN ANDERSON, 38, of New Britain, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 46 months of imprisonment, followed by three years of supervised release, for one possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on October 11, 2018, Hartford Police officers responded to a ShotSpotter detection system alert of gunfire in the vicinity of Vernon Street. At the scene, officers observed Anderson and another man pacing back and forth before entering a vehicle. When officers approached the vehicle, they saw live ammunition in the center console cup holder. A subsequent search of the car revealed a loaded Ruger Model EC9S 9mm semi-automatic handgun with an obliterated serial number underneath the seat Anderson had occupied. Anderson later admitted to ownership of the handgun and firing it in the air.
Anderson’s criminal history includes state felony convictions for burglary in the third degree and assault in the second degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Anderson has been detained since his arrest on October 11. He pleaded guilty to the offense on April 4, 2019.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Natrona Heights Man Charged with Possessing Child PornographyRead the Press Release
PITTSBURGH - A resident of Natrona Heights, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on June 26 and unsealed today, named Jack Ulrich, Jr., 41, as the sole defendant.
According to the indictment, on October 12, 2018, Ulrich, Jr., unlawfully possessed photographs and videos in computer graphics files, which depicted minors, some of whom were under the age of 12 years, engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000.00, or both. If the defendant has a prior qualifying sex offense, the law requires a sentence that includes a term of imprisonment of not less than 10 years. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
NYPD Police Officer Charged with Fraud and False Statement ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, Police Commissioner of the City of New York (“NYPD”), announced today the unsealing of a superseding indictment and the arrest of EDUARDO RODRIGUEZ, a police officer with the NYPD, for conspiring to commit bank and loan fraud, as well as making false statements to federal law enforcement officers. RODRIGUEZ was arrested this morning and will be presented this afternoon before U.S. Magistrate Judge Barbara C. Moses. The case is assigned to U.S. District Judge William H. Pauley III.
U.S. Attorney Geoffrey S. Berman stated: “As alleged, Eduardo Rodriguez, an officer with the New York Police Department, misled a financial institution about his intentions for a loan. Instead of using the loan proceeds for a car, he allegedly used the money for other purposes. If anything, law enforcement officers should be held to a higher standard than the general public. At a minimum, they should be expected to obey the law.”
NYPD Commissioner James P. O’Neill said: “There is no place in the NYPD for criminal or unethical behavior. NYPD officers swear an oath to uphold the law and protect the public. If an officer fails to uphold this oath, they must be held accountable.”
According to the allegations in the Superseding Indictment[1]:
In June 2017, RODRIGUEZ agreed with at least two other individuals (identified in the Superseding Indictment as CC-1 and CC-2) to submit an application to a lending institution (“Lender-1”) for an automobile loan for the express – but false – purpose of financing RODRIGUEZ’s purchase of a vehicle from a real automobile dealer that RODRIGUEZ did not own and never intended to own. In connection with that application, Lender-1 issued to RODRIGUEZ a loan (“Loan-1”) and, specifically, a check representing the proceeds of that loan. RODRIGUEZ, in turn, endorsed that check and provided it to CC-1 and CC-2 with the understanding they would deposit and withdraw money against that check for RODRIGUEZ’s enrichment.
In March 2018, USPIS inspectors interviewed RODRIGUEZ, and he falsely denied any involvement in applying for, or any knowledge about, Loan-1.
In April 2018, RODRIGUEZ was again interviewed by federal law enforcement officers. Although RODRIGUEZ admitted during that interview that he did, in fact, endorse the check issued in connection with Loan-1, RODRIGUEZ claimed to have endorsed the check and provided it to CC-1 and CC-2 for the purpose of CC-1 and/or CC-2 returning the check to Lender-1. That statement was false: as noted, RODRIGUEZ endorsed the check not for the purpose of returning it to Lender-1 but to obtain proceeds from Loan-1. Similarly, although RODRIGUEZ admitted during the April 2018 interview that he did, in fact, work with CC-1 to obtain Loan-1, RODRIGUEZ denied any previous relationship with CC-1, stating in substance and in part that CC-1 had contacted RODRIGUEZ without any prior prompting by RODRIGUEZ. That statement was false: RODRIGUEZ had a prior business relationship with CC-1 dating back to at least December 2015 and had been in substantial telephone contact long before when he claimed he first met CC-1.
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RODRIGUEZ, 41, of Goshen, New York, is charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; one count of conspiracy to commit loan fraud, which carries a maximum sentence of five years in prison; and one count of making false statements, which carries a maximum sentence of five years in prison.
The statutory maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service and the Internal Affairs Bureau of the NYPD.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Daniel H. Wolf is in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation
Montana Man Pleads Guilty in Connection with $43 Million Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that TODD CAPSER pled guilty this morning before U.S. District Judge J. Paul Oetken to one count of wire fraud, in connection with a $43 million fraud scheme.
U.S. Attorney Geoffrey S. Berman said: “Todd Capser purported to be a legitimate businessman and convinced a Canadian financial institution to lend him more than $43 million. But the loan was based on a mountain of false information from Capser. Then, to further his fraud, Capser attempted to induce other financial institutions to loan him additional money. Today, Capser admitted his guilt and now faces significant time in prison for his crimes.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
From January 2016 through April 2019, CAPSER perpetrated a scheme to defraud a financial institution based in Toronto, Canada (“Financial Institution-1”), by inducing it, through false and misleading representations and omissions, to loan approximately $43.3 million to an entity incorporated by CAPSER (“Capser Entity-1”), for the purchase of two chemical and oil tankers (the “Tankers”).
After obtaining the loan from Financial Institution-1 and purchasing the Tankers, CAPSER attempted to induce at least nine other Financial Institutions to loan between $46 and $52 million each to refinance the original loan.
CAPSER fraudulently induced Financial Institution-1 to make the $43 million loan, and attempted to induce the other Financial Institutions to make the $46 million to $52 million refinancing loans, through, among other things: (a) fraudulently obtaining documents from a company that provides wealth management services to private clients (“Trust Company‑1”); (b) altering the Trust Company-1 documents, and forging additional Trust Company-1 documents, to make it appear as though CC-1 held an investment portfolio at Trust Company-1 composed of securities worth tens of millions of dollars, which could serve as collateral for the loans; (c) sending the altered and forged Trust Company-1 documents to certain of the Financial Institutions; (d) creating fake email accounts for employees of Trust Company-1, and sending emails from those accounts to certain of the Financial Institutions to make it appear as though CC-1 held an investment portfolio at Trust Company-1 composed of securities worth tens of millions of dollars; and (e) making false and misleading representations and omissions about the financial assets of CAPSER and his family to certain of the Financial Institutions, including falsely claiming to own a cattle company and ranch.
In addition, in an effort to engender sympathy, deflect questions, and explain suspicious behavior, CAPSER falsely represented to certain of the Financial Institutions that his daughter was terminally ill with cancer.
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CAPSER, 47, of Billings, Montana, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. CAPSER is scheduled to be sentenced by Judge Oetken on November 8, 2019.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”). He also thanked the Billings Resident Agency of the FBI’s Salt Lake City Field Office and the United States Attorney’s Office for the District of Montana for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Benjamin Woodside Schrier is in charge of the prosecution.
Middlesex County Man Sentenced for Illegally Importing Scorpions and Other WildlifeRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man was sentenced today to six months home confinement and four years’ probation for illegally smuggling wildlife into New Jersey, U.S. Attorney Craig Carpenito announced.
Wlodzimie Lapkiewicz, 30, a/k/a “Wlodek Lapkiewicz,” of Metuchen, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of smuggling wildlife. Judge Sheridan imposed the sentence today in Trenton federal court.
According to the documents filed in the case and statements made in court:
Between July 2015 and July 2018, Lapkiewicz illegally imported and exported scorpions, giant millipedes, and other invertebrate species, conduct which Lapkiewicz acknowledged is commonly referred to as “brown-boxing.” On multiple occasions, Lapkiewicz imported Emperor and Dictator Scorpions, both of which are listed in the Convention on International Trade in Endangered Species (CITES) treaty as protected species. Postal inspectors learned of Lapkiewicz’s illegal imports after live scorpions and giant millipedes escaped from an international parcel while in transit to Lapkiewicz in July 2015. The investigation revealed that Lapkiewicz participated and assisted others in intentionally mislabeling parcels of live wildlife to avoid detection. The investigation also revealed that Lapkiewicz utilized social media to arrange buyers for the scorpions, giant millipedes, and other invertebrates that he had illegally imported.
U.S. Attorney Carpenito credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Special Agent in Charge Honora Gordon, with the investigation leading to these charges.
The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Marion County Man Sentenced to 6 Years in Federal Prison for Selling a Firearm to a Known FelonRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Christopher Lee Scott, age 37, of Marion County, was sentenced to six years in federal prison after pleading guilty to selling a firearm to a known convicted felon.
Evidence presented in court established that on January 8, 2018, a long-time acquaintance of Scott’s, whom Scott knew to be a convicted felon, approached him about purchasing a firearm. Later that same day, this individual drove to Scott’s residence in Marion County, where Scott showed him a .357 revolver and a 9mm pistol for sale. Scott then agreed to sell the individual the 9mm pistol for $400. After completing the transaction, Scott told the individual that he also had other guns to sell, including an assault rifle.
Not only does federal law prohibit selling a firearm to a known convicted felon, but Scott’s own felon status prohibited him from possessing a firearm in the first place. Prior to selling the firearm in January 2018, Scott had two convictions for possession with intent to distribute cocaine, a conviction for distribution of crack cocaine, and two convictions or possession with intent to distribute marijuana.
Chief United States District Judge R. Bryan Harwell, of Florence, accepted Scott’s guilty plea and sentenced him to 72 months in federal prison followed by three years of court-ordered supervision. Scott was immediately taken into custody following his sentencing hearing. There is no parole in the federal system. Assistant United States Attorneys Christopher Taylor, Derek Shoemake, and Justin Holloway prosecuted the case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) alongside officers with the Marion County Sheriff’s Department and the Marion County Combined Drug Unit. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in our communities and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based prevention and reentry programs for lasting reductions in crime.
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Manhattan Man Sentenced to 27 Years in Prison for Murder of 17-Year-OldRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GARY TURNER was sentenced to 27 years in prison for the April 2018 murder of 17-year-old Samuel Ozuna. TURNER was sentenced in Manhattan federal court by United States District Judge Jesse M. Furman, before whom TURNER previously pled guilty.
U.S. Attorney Geoffrey S. Berman said: “Gary Turner killed Samuel Ozuna in order to keep his membership in a crew operating in the Carver Houses in East Harlem. For this callous crime, Turner will now spend decades in prison. We thank our partners at the NYPD for their outstanding work on this case.”
According to the Indictment, other filings in Manhattan federal court, and statements made in court proceedings:
On April 24, 2018, TURNER shot and killed Samuel Ozuna in the vicinity of the George Washington Carver Houses (the “Carver Houses”) on 104th Street in East Harlem. On that night, TURNER, a member of a crew operating in the Carver Houses, was inside the lobby of a building in the Carver Houses when he learned that individuals whom he understood to be from the nearby Washington Houses were coming to the area. TURNER’s crew was engaged in a rivalry with a crew from the Washington Houses. Soon thereafter, approximately four individuals, including Mr. Ozuna, ran toward the Carver Houses building, and as they approached, TURNER fired multiple shots in their direction. TURNER continued to fire as they fled. TURNER’s gunshots struck and killed Mr. Ozuna.
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In addition to his prison term, TURNER, 25, was sentenced to five years of supervised release.
Mr. Berman praised the outstanding investigative efforts of the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Lauren B. Schorr and Jacob Warren are in charge of the prosecution.
Man Who Victimized Immigrants in Kidnapping and Extortion Scheme Sentenced to 135 MonthsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PASCUAL RODRIGUEZ, 51, a citizen of the Dominican Republic last residing in New York, New York, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 135 months of imprisonment for his role in a kidnapping and extortion scheme.
According to court documents and statements made in court, on multiple occasions, Rodriguez approached victims after they exited buses at the Port Authority in New York. The victims included women, men and children from Central American countries who did not speak English and were seeking asylum in the U.S. Rodriguez, sometimes posing as an immigration officer, falsely told the victims that their connecting bus was unavailable and asked the victims for a phone number of a family member in the U.S. He then contacted family members and informed them that the victims could not travel by bus, and that he would arrange for the transportation of the victims in exchange for money. He then brought the victims to his co-conspirator, Lucilo Cabrera, who then drove the victims around for hours, refusing to release them until their families agreed to pay money.
Rodriguez has been detained since his arrest on January 23, 2018. On October 12, 2018, he pleaded guilty to one count of kidnapping.
Rodriguez faces immigration proceedings when he completes his sentence.
On March 9, 2018, a federal jury in Bridgeport found Cabrera, Francisco Betancourt and Carlos Antonio Hernandez guilty of offenses related to this extortion and kidnapping scheme. They await sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Vanessa Richards.
Louisville Metro Police Officer’s Credit Union Vice President Pleads Guilty to FraudRead the Press Release
LOUISVILLE, Ky. – The former Vice President of the Louisville Metro Police Officer’s Credit Union has been charged and pleaded guilty to a two count Information with fraud and aggravated identity theft, announced United States Attorney Russell Coleman.
“We expect our bankers to be of the highest integrity, especially those that serve the families of Louisville’s Finest,” stated U.S. Attorney Russell Coleman. “When financial professionals abandon this high standard, robust federal prosecution awaits.”
Josephine M. Crowe, 46, of Louisville, Kentucky, was charged in a criminal Information with one count of financial institution fraud and one count of aggravated identity theft as part of a scheme to defraud the Louisville Metro Police Officer’s Credit Union of over $3 million during a four year period.
According to the Information, beginning no later than January 2013, and continuing to on or about November 22, 2017, Crowe stole cash from the Credit Union’s vault and teller drawers. In order to compensate for the depletion of cash the defendant engaged in various methods to obtain cash for day-to-day operations including: instructing Credit Union employees, members, and others to withdraw cash from an ATM using either a debit card she provided or the individual’s personal debit card and return the cash to her for Credit Union operating needs; (b) obtaining credit card cash advances from members’ credit cards; (c) wire transferring funds to external accounts at various other financial institutions and then obtaining cash from the transfer; and (d) recording fictitious, unauthorized loans and using the proceeds of these loans to issue an Official Check, which she directed individuals to cash at local pawn shops or financial institutions and to return the cash proceeds to her so that she could then place it in the Credit Union’s vault and teller drawers.
As part of the scheme, Crowe created hundreds of fictitious, unauthorized loans by generating fraudulent loan documents and agreements between the Credit Union and unwitting Credit Union members in order to cover up her theft of cash from the Credit Union’s vault and teller drawers and to obtain funds owned by and under the custody and control of the Credit Union. She also created additional fictitious, unauthorized loans to generate proceeds that she used to make payments on legitimate loans that had outstanding balances at the Credit Union, without the knowledge of the either the Credit Union member in whose identity she was creating the fictitious loan, or the member for whose benefit the loan payment was being made.
On or about September 15, 2016, Crowe created a fictitious, unauthorized loan for $100,000 in the name of a member of the Credit Union (“Member 1”) without the knowledge and consent of Member 1, collateralizing the loan with a certificate of deposit owned by Member 1. She then deposited the loan proceeds, into an account held by Member 1 at the Credit Union and, approximately fifteen days later withdrew the entirety of the $100,000 loan proceeds from the account in the form of cash. Crowe used the name, social security number, and date of birth of Member 1 of the credit union, during and in relation to the fraud.
At sentencing, Crowe could receive a minimum term of imprisonment of 24 months, a maximum term of imprisonment of 32 years, a combined maximum fine of $1.25 million, followed by no more than 3 years of supervised release. The defendant could also be ordered to pay restitution to the National Credit Union Administration, as the liquidating agent for the Louisville Metro Police Officer’s Credit Union.
The case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and is being investigated by the Federal Bureau of Investigation.
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Long-Time Ridgeland Drug Dealer and Associates Sentenced to Federal PrisonRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Demetrius Dwayne Swinton, a/k/a “Million Dolla Meat,” age 31, of Ridgeland, was sentenced in federal court after pleading guilty to conspiring to possess with intent to distribute and to distribute cocaine. United States District Judge Richard M. Gergel, of Charleston, sentenced Swinton to 22 years in federal prison, to be followed by 5 years of supervised release. There is no parole in the federal system. Swinton also agreed to forfeit $500,000, two vehicles, and several pieces of jewelry.
Evidence presented in the case established that Swinton was the leader of a cocaine trafficking organization that was responsible for bringing a large volume of cocaine into South Carolina, primarily into Beaufort and Jasper Counties. Agents and prosecutors established that Swinton was receiving multiple kilograms of cocaine at a time from a source of supply in Atlanta, Georgia, and that he used a number of associates to assist in both the distribution of drugs and the collection of drug proceeds. Swinton was responsible for moving at least 74 kilograms of cocaine into those communities, and he used violence and intimidation to maintain his status as a main drug supplier to that area. During the course of the investigation, agents seized over 47 kilograms of cocaine, 782 grams of crack cocaine, 6 kilograms of marijuana, 97 grams of heroin, 10 firearms, 5 vehicles, over $50,000 worth of jewelry, and over $68,000 cash.
In addition to Swinton, three of his co-defendants have also been sentenced by Judge Gergel. Travis Wiggins, a/k/a “Trap”, age 28, of Ridgeland, was sentenced to 15 years in federal prison, to be followed by 5 years of supervised release, after pleading guilty to conspiring to possess with intent to distribute and to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
Ernest Fields, a/k/a “Fly”, age 39, of Hilton Head, was sentenced to 6 years in federal prison, to be followed by 4 years of supervised release, after pleading guilty to conspiring to possess with intent to distribute and to distribute cocaine.
Boston Brown, age 32, of Bluffton, was sentenced to 5 years in federal prison, to be followed by 4 years of supervised release, after pleading guilty to conspiring to possess with intent to distribute and to distribute cocaine.
“It is our hope and belief that the significant sentences handed down to Swinton and his associates send a message to those hoping to fill their void and allow these communities, which have been ravaged by drug trafficking and violence, an opportunity to heal,” said U.S. Attorney Lydon. “We appreciate the efforts of our federal, state, and local law enforcement partners in working together to hold these men accountable for such serious crimes.”
"The 14th Circuit is safer today because Swinton is in prison," added Fourteenth Circuit Solicitor Duffie Stone. "It's fortunate that we've had this tremendous partnership with the U.S. Attorney's Office in place for a number of years now. It has been invaluable in our efforts to get dangerous people like Swinton off the streets."
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, "DEA and the entire law enforcement community are committed to making our society safe by removing such criminals from the streets. These notorious drug dealers distributed poison to the community and caused fear through means of violence and intimidation. The success of this investigation was due to the skillful investigative efforts of our federal, state and local law enforcement counterparts."
“Identifying and investigating drug trafficking organizations is one of Homeland Security Investigations’ major priorities to protect the public from the serious harm these criminals inflict without any regard for the violence and public health damage they cause,” said John Eisert, Acting Special Agent in Charge of Homeland Security Investigations (HSI) Charlotte. “This case also illustrates the importance of collaborative working relationships between HSI and our federal, state and our local law enforcement partners to keep communities safe, and HSI is appreciative of their cooperation as well as the U.S. Attorney’s office in successfully bringing these individuals to justice.”
The case was investigated by agents of the Drug Enforcement Administration, Homeland Security Investigations, Beaufort County Sheriff’s Office, Hampton County Sheriff’s Office, Jasper County Sheriff’s Office, Charleston County Sheriff’s Office, Berkeley County Sheriff’s Office, Hardeeville Police Department, City of Charleston Police Department, Summerville Police Department, North Charleston Police Department, Mount Pleasant Police Department, South Carolina Highway Patrol, Fourteenth Circuit Solicitor’s Office, and South Carolina National Guard. Assistant United States Attorney Nick Bianchi of the Charleston Office and Special Assistant United States Attorney Carra Henderson of the Fourteenth Circuit Solicitor’s Office are prosecuting the case.
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Long Island Felon Convicted of Violent Drug Robbery, Firearms Offense and Obstruction of JusticeRead the Press Release
A federal jury in Central Islip returned a guilty verdict today against Spencer Jean for Hobbs Act robbery of a marijuana trafficker, discharging a firearm during a crime of violence, possession with intent to distribute marijuana, conspiracy to obstruct justice and obstruction of justice. The verdict followed a two-week trial before United States District Judge Joanna Seybert. When sentenced, Jean faces a mandatory minimum sentence of 25 years’ imprisonment on the firearms discharge count, and up to a total of 45 years on the other four counts.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
The evidence at trial established that on March 20, 2018 in Middle Island, Jean robbed $1,500 worth of marijuana from a drug dealer he had met at a halfway house following a 2016 firearms conviction. During the robbery, Jean brandished a 9mm Glock handgun loaded with hollow-point ammunition, and shot the victim in the leg at close-range. Shortly thereafter, Jean directed a former girlfriend to provide an alibi for him by lying to law enforcement and falsely testifying at trial that he was at a nursing home in Medford at the time of the shooting.
“Spencer Jean is a dangerous felon who used a handgun to commit a violent crime, and in doing so put others in the community at grave risk,” stated United States Attorney Donoghue. “Stopping gun violence in the district is a continuing priority of this Office and our federal and local law enforcement partners, and we will be unrelenting in our efforts to hold violent offenders like Jean accountable.” Mr. Donoghue thanked the Federal Bureau of Investigation, New York Field Office, for its outstanding work on the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Allen L. Bode are in charge of the prosecution.
The Defendant:
SPENCER JEAN (also known as “Cash”)
Age: 33
Westbury, New YorkE.D.N.Y. Docket No. 19-CR-123 (JS)
Kinsey Man Sentenced to 12 Years in Federal Prison for Federal Firearm and Assault ChargesRead the Press Release
Montgomery, Alabama- On July 2, 2019, Jaccarlus Montrail Dawsey, 18, of Kinsey, Alabama, was sentenced to 12 years in prison for shooting at officers during an arrest on state charges, announced U.S. Attorney Louis V. Franklin, Sr. and U.S. Marshal Jessee Seroyer.
The federal case began when the United States Marshals Service’s Gulf Coast Regional Fugitive Task Force (GCRFTF) was assisting the Houston County Sheriff’s Office with locating and apprehending Dawsey, who was wanted on multiple state charges including assault and robbery. On January 4, 2019, Task Force Officers with the GCRFTF, including members from the U.S. Marshals Service, Houston County Sheriff’s Office, Houston County District Attorney’s Office, Dothan Police Department, and Covington County Sheriff’s Office, discovered his location in Dothan. When Task Force Officers approached Dawsey, he fled and fired at them multiple times as they pursued. Thankfully, no one was struck during the exchange of gunfire and he was eventually taken into custody.
On March 26, 2019, Dawsey pled guilty to assaulting federal officers and discharging a firearm in in relation to a crime of violence. The 12-year prison sentence will be followed by five years of supervised release. There is no parole in the federal system. State charges are still pending.
U.S. Attorney Franklin would like to thank the U.S. Marshals Service, the Houston County Sheriff’s Office, the Houston County District Attorney’s Office, the Dothan Police Department, and the Covington County Sheriff’s Office for their assistance in this case. Assistant U.S. Attorneys Eric M. Counts and Curtis Ivy, Jr. prosecuted the case.
Jury convicts two Cleveland men of using firearms to rob MetroPCS storesRead the Press Release
A federal jury convicted two Cleveland men of brandishing firearms while robbing MetroPCS stores last year and shooting at an off-duty Cleveland police officer.
Shawn Ford, 20, and Charles Rogers, 24, were each convicted on multiple counts of Hobbs Act robbery and using firearms during a crime of violence. They are scheduled to be sentenced October 9.
Ford and Rogers robbed the MetroPCS story at 10959 Kinsman Road on March 21, 2018, at 11100 Lorain Ave. on March 25, 2018, and at 5853 Broadway Ave., on March 27, 2018, and attempted to the rob the store at 14701 Kinsman Road, also on March 27, 2018.
Ford and Rogers fled from the store on Broadway after taking more than $1,000 from the register. An off-duty Cleveland police officer, who was a customer in the store, followed them out of the store. He identified himself as a police officer and ordered them to stop. One of the suspects began shooting at the officer and spent 9 mm shell casings were recovered nearby, according to court documents.
About 30 minutes later, an officer saw a vehicle that matched the description of the car the suspects got into after shooting at the officer. The car was pulled over with Ford and Rogers inside. Inside the car was a spent 9 mm round, blue latex gloves and clothing that matched clothing worn by suspects in other MetroPCS robberies, according to court documents.
Rogers was wearing an electronic monitoring device with GPS capabilities on March 21, the date of the first MetroPCS robbery. The GPS placed Rogers in the vicinity of the Kinsman Road store a few minutes before the robbery. Sometime later the GPS device was tampered with or taken off Rogers, according to court documents.
This case was investigated by the Cleveland Division of Police and Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Ohio Adult Parole Authority and the Cuyahoga County Prosecutor’s Crime Strategies Unit. It is being prosecuted by Assistant U.S. Attorneys Kelly L. Galvin and Margaret Kane and Special Assistant U.S. Attorney Eleina Thomas.
These cases are part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Deviassi Adams, 41, of Jackson, pled guilty yesterday before U.S. District Court Judge Henry T. Wingate to possessing a firearm as a convicted felon, announced U.S. Attorney Mike Hurst and Acting Special Agent in Charge Steven J. Jensen with the Federal Bureau of Investigation.
On September 10, 2018, the United States Marshals Service Gulf Coast Regional Fugitive Task Force arrived at a Jackson residence to serve a felony arrest warrant on Adams. While conducting a protective sweep inside the home, task force members observed two firearms: one pistol and one AR-style rifle. In a subsequent interview, Adams confessed to possessing both firearms. Adams has previous convictions for manslaughter in Hinds County and other felony crimes.
On December 6, 2018, Adams was charged in a federal indictment with possessing a firearm as a convicted felon. He will be sentenced on October 3, 2019, by Judge Wingate, and faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hazelton Inmate admits to indecent exposureRead the Press Release
CLARKSBURG, WEST VIRGINIA – Marco Charles Gilbert, an inmate at Federal Correction Institution Hazelton in Bruceton Mills, West Virginia, has admitted to indecent exposure, United States Attorney Bill Powell announced.
Gilbert, age 33, pled guilty to two counts of “Indecent Exposure.” Gilbert admitted to exposing himself to staff at FCI Hazelton in December 2018 and January 2019.
Gilbert was sentenced to 180 days incarceration for the crimes.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. FCI Hazelton Special Investigative Services investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Gun Charge Leads to 5-Year Sentence for Jackson County ManRead the Press Release
Billy Jack Reed, 24, of Murphysboro, Illinois, was sentenced today to 60 months in federal prison on a federal firearm violation. Earlier this year, Reed pled guilty to a one-count indictment charging unlawful possession of a firearm by a convicted felon.
Evidence at the plea and sentencing hearings established that, on February 18, 2018, Reed knowingly possessed a 9mm pistol in Jackson County. At the time, Reed was prohibited from possessing a gun because of multiple prior felony convictions. In handing down the sentence, U.S. District Judge Staci M. Yandle also took into consideration that the gun was stolen and that Reed attempted to obstruct justice after his arrest by encouraging a witness to lie for him.
Reed’s sentence includes three years of supervised release.
The investigation was conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department.
Greece Man Sentenced for Lying to the FBIRead 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 Thomas Alonzo Bolin, a/k/a Peter Vincent, 22, of Greece, NY, who was convicted of making a false statement to the FBI, was sentenced to serve time served (three months) and three years supervised release by U.S. District Judge David G. Larimer. As a condition of supervised release, the judge ordered the defendant to submit to monitoring of his computer usage and online activities. Bolin also forfeited a Mossberg 12-gauge shotgun seized during the investigation along with 39 rounds of ammunition.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that the FBI began investigating the defendant and others in March 2019 for potential violations of federal civil rights and firearms laws. On March 15, 2019, a Facebook user named “Ragnar Odinson” – who was a member of a Facebook group called “Odin’s Warriors” – made statements on Facebook referencing the mosque attacks that occurred in Christchurch, New Zealand, and indicated that he was willing to “do something” the following week. The defendant was a member of and administrator for the “Odin’s Warriors” Facebook group. The defendant used Facebook – under the user name “Peter Vincent” – to post messages consistent with white supremacist ideology, statements threatening violence against Muslims and others, and messages containing derogatory terms for Muslims and other minority groups.
On March 30, 2019, members of the FBI, as part of their investigation, interviewed the defendant. During the interview, Bolin falsely stated that he did not possess any firearms in New York State. At the time of the statement, the defendant knew that he possessed a Mossberg 12-gauge shotgun in his bedroom closet at 34 Third Avenue in Greece. This false statement was material to the FBI’s investigation of possible civil rights and firearms violations by Bolin and others. The FBI recovered the shotgun during a subsequent search of the defendant’s bedroom closet.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Gates Man Who Attempted to Lure A Teenager for Sex Going to Prison for 10 YearsRead 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 Dillon T. Boyington, 35, of Gates, NY, who was convicted of attempted online enticement of a minor, was sentenced to serve 120 months in prison and 10 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that the defendant utilized a social media application in an attempt to meet a 14 year-old child for sex. As he traveled to meet such child on October 24, 2018, Boyington was intercepted by members of the New York State Police. Upon his arrest, the defendant was found to be in possession of condoms and candy, which he intended to give to the child.The sentencing is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, and the Rochester Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Gates Man Sentenced on Child Pornography ChargeRead 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 Sean Blackwell, 35, of Gates, NY, who was convicted of possession of child pornography, was sentenced to serve 48 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that Blackwell was discovered actively trading child pornography from an apartment in Gates during an operation conducted by the FBI. Special Agents executed a search warrant at a residence that the defendant occupied during the period in question and seized digital items belonging to Blackwell. A forensic examination determined that the items contained multiple images and videos of child pornography, including images that depicted the sexual abuse of prepubescent minors.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert.
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Fugitive Returned to U.S. to Face Federal Charges in $50 Million Health Care Fraud Scam Run Out of Coachella Valley Surgery CenterRead the Press Release
SANTA ANA, California – A Rancho Mirage woman who faces federal charges related to a scheme that fraudulently billed insurance companies $50 million for “medically necessary” cosmetic surgeries has been returned the United States after fleeing to Israel two years ago.
Linda Morrow, 67, who fled the United States after being named in a 31-count federal grand jury indictment, arrived in Southern California on Monday morning after being deported by Israel, which had determined that she had entered that nation on a fraudulent Mexican passport.
Linda Morrow appeared in United States District Court in Santa Ana on Tuesday afternoon and entered a not guilty plea to a separate grand jury indictment that charges her with contempt of court for fleeing while free on bond. During that hearing, she was ordered detained and a trial date in the contempt case was scheduled for August 27. She will make another court appearance later this month to discuss the status of the pending health care fraud case.
Linda Morrow and her husband, David Morrow, 74, were arrested in Israel on June 16. David Morrow, who pleaded guilty in 2016 in the health care fraud case and was sentenced in absentia to 20 years in federal prison, is pending extradition proceedings in Israel. David Morrow also faces contempt of court charges for fleeing while he was pending sentencing.
Linda Morrow, who was the executive director of The Morrow Institute (TMI) in Rancho Mirage, is charged with participating in a scheme to defraud health insurance companies by submitting bills for more than $50 million for procedures that were claimed as “medically necessary” – but in fact were cosmetic procedures such as “tummy tucks,” “nose jobs,” breast augmentations and vaginal rejuvenation. The indictment outlines a scheme in which patients were lured to TMI with promises that cosmetic procedures would be paid for by their union or PPO health insurance plans. The indictment further alleges that some patients who underwent multiple surgeries at TMI suffered severe medical complications from the procedures.
The victim health insurance companies included Anthem Blue Cross, Blue Cross/Blue Shield of California, Blue Cross/Blue Shield of Massachusetts, Regional Employer/Employee Partnership for Benefits, formerly known as Riverside Employer/Employee Partnership (REEP) and Cigna. When insurance companies refused to pay for the cosmetic procedures for patients who happened to be employed by public entities such as school districts, TMI made formal claims against those public entities, demanding payments totaling more than $15 million from the California Highway Patrol, the Desert Sands Unified School District, the Palm Springs Unified School District and the City of Palm Springs.
The indictment naming Linda Morrow with conspiracy, 23 counts of mail fraud, six identity theft charges, and one count of misprision of a felony for allegedly failing to report the health care fraud scheme to authorities. If she were to be convicted, Linda Morrow would face a potential sentence of more than 500 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. A defendant is presumed to be innocent until and unless proven guilty in court.
The investigation into the Morrows and TMI was conducted by the FBI, IRS Criminal Investigation and the California Department of Insurance. The FBI’s Legal Attaché in Tel Aviv and the Israeli National Police provided considerable assistance relative to the capture of Linda and David Morrow. The United States Marshals Service handled the transportation of Linda Morrow from Israel.
The case is being prosecuted by Assistant United States Attorney Charles Pell of the Santa Ana Branch Office.
Four Lafourche Parish Men Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – KENDALL MATHEWS, a/k/a “DOT,” age 36, EARL JOHNSON, a/k/a “MUD,” age 39, MONTRELL CLEVELAND, a/k/a “NOON,” age 32, and DONTRELL MATHEWS, age 40, all residents of Thibodaux, Louisiana, were charged June 14, 2019, in a fifteen-count indictment by a Federal Grand Jury with several narcotics offenses, including conspiring to distribute and possess with intent to distribute fifty grams or more of methamphetamine, five kilograms or more of cocaine hydrochloride, use of a communication facility to facilitate a drug trafficking crime, and distribution of methamphetamine, announced U.S. Attorney Peter G. Strasser.
According to the indictment, beginning at a time unknown and continuing until September 28, 2018, Kendall MATHEWS, JOHNSON, CLEVELAND, and Dontrell MATHEWS conspired with each other to distribute and possess with intent to distribute fifty grams or more of methamphetamine. During that same period, Kendall MATHEWS and JOHNSON engaged in a conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride and a quantity of heroin. Kendall MATHEWS and Dontrell MATHEWS are also charged with distribution of methamphetamine and all four individuals are charged with using a communication facility, a telephone, to facilitate drug conspiracies.
If convicted, Kendall MATHEWS, JOHNSON, CLEVELAND, and Dontrell MATHEWS face a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00 and at least five years of supervised release following any term of imprisonment.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Former Swink Public School Treasurer Sentenced for Theft of Federal FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that the former treasurer of Swink Public School, Lori Rae Baskin, age 50, of Swink, Oklahoma, was sentenced to 4 years’ probation for Theft from Organization Receiving Federal Program Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A). Baskin was also ordered to pay total restitution of $27,738.80. The charges arose from an investigation by the Department of Education Office of Inspector General (OIG) and the Federal Bureau of Investigation (FBI).
The Information alleged that from on or about February 3, 2012, until on or about June 30, 2015, in the Eastern District of Oklahoma, the defendant, being an agent, employee, and officer of Swink Dependent School District No. C-21, an agency of a State government, which received in excess of $10,000 in federal benefits in each one year period from 2012 through 2015, stole, obtained by fraud, and without authority knowingly converted to the use of a person not the rightful owner, property of a value of $5,000 or more, owned by, under the care of, and under the control of Swink Dependent School District No. C-21.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States.
Former State Delegate Sentenced for Role in Defrauding United StatesRead the Press Release
NORFOLK, Va. – A former member of the Virginia General Assembly was sentenced today to two and a half years in prison for his role in a conspiracy that resulted in the fraudulent award of over $80 million in government contracts.
According to court documents, Ronald A. Villanueva, 49, participated in a nine-year conspiracy involving over $80 million in fraudulently obtained government contracts. More specifically, Villanueva conspired with others to help two Virginia Beach companies secure Small Business Administration contracts that had been set aside for minority-owned businesses. Villanueva began working for one company, SEK Solutions, in or about 2005. When that company’s 8(a) status was set to expire in 2010, Villanueva and his co-conspirators set up a new company, Karda Systems, which on paper was run by Villanueva’s brother-in-law. However, in reality Karda’s contracting business was managed by Villanueva and others associated with SEK.
As part of the conspiracy, Villanueva and others misrepresented whether SEK and Karda were eligible for government contracts under the 8(a) program. In fact, neither company was eligible to participate in the program, yet Villanueva and his co-conspirators made numerous false statements and certifications to the contrary. During part of the conspiracy, Villanueva was a member of the Virginia General Assembly, and in one instance used his House of Delegates letterhead to send a letter to the SBA in support of Karda’s application to participate in the 8(a) program, knowing that it contained false and misleading statements about who actually operated the company. As a result of the fraud, the two companies were awarded over $80 million dollars in government contracts for which they were not eligible.
As part of the sentence, Villanueva was ordered to pay $524,533 in restitution.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Carol Fortine Ochoa, Inspector General, General Services Administration (GSA), Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA), and Glen A. Fine, Acting Inspector General, Department of Defense (DoD), made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorneys Alan Salsbury and Daniel Young prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-2.
Former Postal Carrier Sentenced for Stealing Mail, Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – A former postal carrier was sentenced in federal court today for stealing mail from dozens of residents and for possessing methamphetamine to distribute.
Brandy Manning, 40, of Liberty, Missouri, was sentenced by U.S. District Judge Greg Kays to six years in federal prison without parole. The court also ordered Manning to pay $3,993 in restitution.
Manning, who was employed as a mail carrier for the U.S. Postal Service from June 9, 2007, to June 5, 2017, pleaded guilty on Jan. 17, 2019, to one count of mail theft by a postal employee and one count of possessing methamphetamine with the intent to distribute. Manning admitted that she stole driver’s licenses mailed to customers on her route, as well as credit cards, debit cards, rebate cards, checks, and other mail matter. Manning also admitted that she used the stolen identifications, credit and debit cards, and checks to unlawfully purchase items and to create counterfeit checks.
Brandy Manning was arrested by Kansas City, Mo., police officers on Feb. 21, 2017. She was in possession of dozens of items she stole from the U.S. Postal mail in her position as a U.S. Postal mail carrier. Police recovered from her personal truck: 14 driver’s licenses issued to different people; 15 credit/debit cards issued to different people; 15 gift cards; 12 personal or business checks issued to/from different people; a counterfeit check bearing information matching a stolen check and driver’s license; four receipts related to fraudulent uses of stolen cards; a Missouri Bar card belonging to another person; a health insurance card issued to another person; a physician certificate belonging to another person; a vehicle registration renewal receipt for another person; and unopened mail – in all, items in 45 other people’s names and addresses. Manning also possessed an oxycodone tablet for which she did not have a prescription.
When interviewed after this arrest, Manning admitted to police that she used methamphetamine, cocaine, opiates, “just about everything.” Manning did not return to work at the U.S. Postal Service after her arrest. She was separated from employment on June 5, 2017.
The U.S. Postal Inspection Service and U.S. Postal Service, Office of Inspector General sent questionnaires to all the identifiable victims and everyone on Manning’s postal route. The agencies received a total of 54 victim impact responses.
Manning was again arrested on May 3, 2017, by a Cass County sheriff’s deputy after Manning left the scene of an accident in which she rear-ended a stopped vehicle. Deputies searched her truck and found a loaded Smith & Wesson .40-caliber handgun, a second loaded firearm magazine, a box of 100 rounds of .40-caliber ammunition, .56 grams of cocaine; 1.83 grams of marijuana, 26.229 grams of pure methamphetamine, 414 Alprazolam pills, drug paraphernalia, $1,593, three cell phones; three debit cards issued to other people, and unopened mail addressed to another person.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the U.S. Postal Inspection Service, the U.S. Postal Service – Office of Inspector General, the Kansas City, Mo., Police Department, and the Cass County, Mo., Sheriff’s Department.
Former Postal Carrier Sentenced for Deserting Approximately 49 Plastic Tubs of MailRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that, in the largest “mail dumping” case in Alaska history, a former U.S. Postal Service employee has been sentenced to federal prison for deserting more than 49 plastic tubs of mail that he was responsible for delivering.
Thomas Gerald Hilty, 48, of Wasilla, was sentenced yesterday by Chief U.S. Magistrate Judge Deborah M. Smith to serve three years of probation, to complete 300 hours of community service, and to pay a $1,000 fine. In April 2019, Hilty pleaded guilty to one count of desertion of mail.
According to court documents, over the course of two years, Hilty abandoned some of the mail along the route in unused mail receptacles, kept some of it in and around his home, and even destroyed mail by burning it. The deserted mail included a passport, insurance correspondence, PFD letters, college acceptance letters, child support payments, among other unknown types of mail that Hilty burned. The investigation revealed that Hilty simply tired of delivering the mail he was entrusted with delivering, and did not want to complete his assigned rounds. This was the largest “mail dumping” case in Alaska history, as measured by the mail volume and number of victims – there were 467 identifiable victims in this case.
At the sentencing hearing, Judge Smith noted that a higher fine could have been imposed, however federal law required the judge to consider Hilty’s inability to pay.
The U.S. Postal Service-Office of Inspector General (USPS-OIG) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
Former Military Serviceman Sentenced to Federal Prison for Theft of Government MoneyRead the Press Release
GAINESVILLE, FLORIDA – U.S. Attorney Lawrence Keefe for the Northern District of Florida today announced the sentencing of William Larry Johns, 69, of Gainesville, after he was sentenced on June 24 in the United States District Court in Gainesville to a federal grand jury indictment that charged him with one count of theft of government money.
Johns served in the United States Marine Corps for less than a year in 1967, and years later applied for the United States Department of Veterans Affairs (“VA”) Disability Pension claiming to be unable to work due to a non-service connected disability. Johns failed to regularly report his employment history, net worth, and income received from all sources as he was required to do. Further, during visits to the VA Medical Center, Johns falsely indicated that he was retired and failed to report to the VA the income he was earning through his plumbing and drain cleaning businesses between 2004 and 2017.
In addition to receiving a sentence of incarceration in federal prison and supervised release, Johns was ordered to pay restitution to the Department of Veterans Affairs in the amount of $157,949.
Assistant United States Attorney Justin M. Keen prosecuted the case, which was investigated by the Department of Veterans Affairs Office of Inspector General (VA-OIG). David Spilker, Special Agent in Charge, VA-OIG, stated, "The defendant’s deceitful actions stole VA’s limited resources from eligible veterans deserving of the financial assistance they earned through military service. VA-OIG is committed to safeguarding the integrity of VA’s healthcare and benefits programs."
United States Attorney Keefe added, “Military benefits exist for those who truly earned them, individuals who need the help of a public on whose behalf they sacrificed so much. Not only should these benefits be denied to those who do not earn them, but we owe it to the real heroes to prosecute anyone who seeks to benefit unjustly at their expense.”
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html