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14 August 2019
Greenbrier County Man Sentenced to Five Years on Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Ronald Collins, 39, of Greenbrier County, was sentenced to 60 months in prison for federal gun crimes, announced United States Attorney Mike Stuart. The sentence was an upward departure from the U.S. Sentencing Guidelines. The Court found that Collins obstructed justice when he assaulted his former counsel. Further, the Court found that an upward departure was warranted because of the defendant’s violent ideations, threatening behavior and lack of respect for law enforcement.
“Another upward departure from the federal sentencing guidelines granted by the Court at my request. This is the second request for an upward departure granted in the past two weeks based on the gravity of the offense. I will continue to seek upward departures where the circumstances warrant,” said United States Attorney Mike Stuart. “Prosecution of cases like this are important. By enforcing federal gun laws, we keep guns out of the wrong hands.”
In March 2019, a federal jury convicted Collins of making a false and fictitious written statement on an ATF Form 4473 in order to acquire a firearm and of being in possession of a firearm after being committed to a mental institution. In January 2018, Collins lied on ATF form 4473, indicating that he had never been committed to a mental institution, and thereafter purchased a firearm. Collins posted several videos of himself with the firearm on social media, including one of him shooting the firearm, which were shown to the jury.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the West Virginia State Police conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Steve Loew and Alex Hamner handled the prosecution.
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German Citizen Sentenced for Violating U.S. Sanctions Against IranRead the Press Release
ALBANY, NEW YORK – Mojtaba Biria, age 68, and a citizen of Germany, was sentenced today to time served (approximately 21 months in jail) for conspiring to unlawfully export gas turbine parts from the United States to Iran.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement, New York Field Office.
United States District Judge Mae A. D’Agostino also ordered Biria to pay a $5,000 fine.
Biria pled guilty to one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA), and the Iranian Transactions and Sanctions Regulations.
Biria was the Technical Managing Director of Energy Republic GmbH (“Energy Republic”), an export company based in Cologne, Germany; most of Energy Republic’s customers were located in Iran.
Biria admitted to conspiring in 2017 with Olaf Tepper and others to acquire about $1 million worth of energy turbine parts from a company in Saratoga County, New York. The parts would have been shipped to Germany and then immediately re-shipped to Iran, as part of a scheme to willfully violate U.S. export control laws.
Biria was arrested on November 23, 2017 at Boston’s Logan International Airport. He had been in custody since that day.
Two of Biria’s co-conspirators have also pled guilty.
Tepper, age 53, and a citizen of Germany, pled guilty to conspiring to violate IEEPA. On August 3, 2018, Judge D’Agostino sentenced him to 24 months in prison, and to pay a $5,000 fine. Tepper was the founder and Managing Director of Energy Republic.
Mahin Mojtahedzadeh, age 74, and a citizen of Iran, pled guilty on July 19, 2019 to conspiring to violate IEEPA. She is scheduled to be sentenced on November 12, 2019.
These cases are the result of a joint investigation by FBI, HSI and the Department of Commerce Office of Export Enforcement, and are being prosecuted by Assistant U.S. Attorneys Rick Belliss and Michael Barnett, with assistance from Trial Attorney Scott A. Claffee of the Department of Justice’s National Security Division, Counterintelligence & Export Control Section.
Former St. Louis Community College Employee Steals over $7.5 million from the Missouri Job Training ProgramRead the Press Release
St. Louis, MO – Donald L. Robison, 57, Ballwin, MO, pleaded guilty to 15 counts of wire fraud, mail fraud and money laundering before United States District Judge Stephen R. Clark. Sentencing is scheduled for November 12, 2019.
According to his plea agreement, from August 1998 through November 2018, Robison stole millions of dollars allocated for New and Retained Job Training Programs established by the Missouri Department of Economic Development. Robison stole program-allocated funds from both the Missouri Department of Revenue and St. Louis Community College. Robison subsequently moved the stolen funds between bank and investment accounts to conceal their origin.
"All the money stolen was meant for a program designed for people who wanted to better themselves by learning new skills to become employable," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Instead, Donald Robison helped himself to millions of taxpayer dollars and deprived the program of money destined to help Missouri workers."
Wire fraud and mail fraud carry a maximum penalty of 20 years imprisonment for each count and a fine of $250,000 or both. Money laundering carries a maximum penalty of 10 years imprisonment for each count and a fine of $250,000 or both. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges. Restitution to the victims is also mandatory.
The Federal Bureau of Investigation is investigating the case with the assistance and cooperation of St. Louis Community College and the State of Missouri. Assistant United States Attorney Lindsay McClure-Hartman is handling the case for the U.S. Attorney’s Office.
Former Principal Chief of Muscogee (Creek) Nation Indicted for BriberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bristow, Oklahoma, resident GEORGE PHILLIP TIGER, age 69, has been Indicted for Bribery Concerning Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(B), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
Tiger, the former Principal Chief of the Muscogee (Creek) Nation, was an agent of the Alabama-Quassarte Tribal Town (AQTT) from September 26, 2017 through December 4, 2018. His duties included serving as the Chairman of the Economic Development Authority (EDA) Board. The AQTT formed the EDA to identify, plan, initiate and develop tribal economic and industrial activities on behalf of the AQTT. The AQTT is an Indian tribal government and organization that received federal assistance in excess of $10,000.00 during any one-year period from January 1, 2012 through the date of the indictment. The AQTT is headquartered in Wetumka, Oklahoma.
The Indictment alleges that from on or about September 26, 2017 through on or about February 15, 2019, in the Eastern District of Oklahoma and elsewhere, Defendant George Phillip Tiger did corruptly solicit, demand, accept and agree to accept a thing of value from persons known to the Grand Jury, intending to be influenced and rewarded in connection with a transaction or series of transactions of the Alabama-Quassarte Tribal Town (AQTT) involving $5,000.00 or more.
The Defense Criminal Investigative Service (DCIS), Office of Inspector General, the Federal Bureau of Investigation (FBI), Internal Revenue Service, Small Business Administration – Office of Inspector General, General Services Administration – Office of Inspector General, Army Criminal Investigations Division, and Naval Criminal Investigative Service participated in the investigation that lead to the Indictment. Assistant United States Attorney Douglas Horn, Assistant United States Attorney Ryan Heatherman, and Special Assistant United States Attorney Courtney Jordan represent the United States.
The above named individual has been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
Former Executive Director of Non-Profit Charged with EmbezzlementRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Teri Donaldson, Inspector General, U.S. Department of Energy, Office of Inspector General (DOE-OIG), Nadine Gurley, Special Agent in Charge of the Southeast Caribbean Region, U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG), and Scott McInerney, Director, Florida Department of Law Enforcement (FDLE), Office of Executive Investigations announced that Donna Carman, 59, of Martin County, Florida has been charged by an Information with theft from an organization receiving federal funds (Case No. 19-14039-CR-Martinez/Maynard).
According to the Information, Indiantown Nonprofit Housing, Inc. (“Indiantown”), is a Florida not-for-profit corporation that provides affordable housing and community, social, and economic development opportunities for low and moderate income residents in Martin County. Indiantown applied for and received funds through various Federal programs. As the Executive Director of Indiantown, Carman was responsible for planning, organizing and monitoring the activities of the organization, coordinating with consultants, architects, contractors, funding agencies, property management companies, and other related professionals in furtherance of Indiantown’s mission, maintaining the fiscal records of the organization, ensuring appropriate and timely processing of all fiscal reporting requirements, and providing administrative support to Indiantown’s Board of Directors. She was authorized to use an American Express credit card bearing her name and issued to Indiantown for business-related purchases. Beginning as early as August 21, 2014, Carman began siphoning funds from for her own personal use, including repairs and upgrades made to real property she owned. Carman used the Indiantown American Express credit card on several occasions to purchases goods and services for herself and others unrelated to Indiantown’s mission.
If convicted, Carman faces up to 10 years in prison and a maximum fine of $250,000 or twice the loss or twice the gain caused by the offense.
An information merely contains allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of DOE-OIG, HUD-OIG, and FDLE in this matter. This case is being prosecuted by Assistant U.S. Attorney Michael D. Porter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former CEO, CFO of South Florida Tech Support Scam Plead Guilty to Federal Charges in Southern IllinoisRead the Press Release
There will be no trial for two South Florida men who owned and operated a fraudulent tech support business known as Client Care Experts, LLC (CCE), U.S. Attorney Steven D. Weinhoeft announced today. Michael Austin Seward, 32, of Deerfield Beach, Florida, and Kevin James McCormick, 46, of
Delray Beach, Florida, have both pleaded guilty to a federal indictment charging them with conspiracy to commit wire fraud, admitting in the process that their business
– formerly known as “First Choice Tech Support” – was a scam.Seward and McCormick were part owners of CCE, based in Boynton Beach, Florida, and held themselves out as the chief executive officer and chief financial officer respectively. As part of their guilty pleas, both men admitted that they also oversaw the operations of another fraudulent tech support business called ABC Repair Tech (ABC), located in Costa Rica.
According to court documents, the defendants purchased pop-up advertisements that would appear suddenly on a person’s computer screen. The pop-ups were made to look like system warnings and falsely informed the victims that serious problems, such as viruses or malware, had been detected on their computers. Often, the pop-ups caused the person’s internet browser to freeze up and stop responding. The pop-ups also typically warned the victims not to shut down their computers or else they would lose all their data. Instead, the ads directed them to call a toll-free number, where they were connected to sales representatives who continued the fraud.
The sales representatives would convince the victims to grant them remote access to their computers, where normal computer functions and routine processes were highlighted as evidence of serious computer problems. Victims were never told that the pop-ups that had hijacked their computers were just advertisements purchased by the tech support company, or that in most instances they could make the pop-ups go away simply by rebooting their computers. Instead, they were sold remote “tune-ups” for $250 and anti-virus protection software for another $400. If victims balked at the steep prices, the sales representatives would offer them a discount for being a senior citizen or a military veteran or something else.
From 2013-2016, the two companies – CCE and ABC – combined to defraud more than 40,000 people.
Victims were located in all 50 States, the District of Columbia, Puerto Rico, several
U.S. territories, all 10 Canadian provinces, the United Kingdom, and several other foreign countries. At least 57 victims of the scams were residents of the Southern District of Illinois, representing 22 of the district’s 38 counties, including St. Clair and Madison. All told, the two companies took in over $25 million.Before Seward and McCormick pleaded guilty, they had been set for trial on Sept. 9. Their case has been pending since May 2018, when a federal grand jury in East St. Louis returned a superseding indictment charging them and their former vice president, Grant Clark Wasik, 35, of Boynton Beach, Florida, with one count of conspiracy and 13 counts of wire fraud. Wasik pleaded guilty to the conspiracy count earlier this year.
The Honorable Joe Billy McDade from the Central District of Illinois was recently appointed to preside over the case and will handle the defendants’ sentencing hearings from the federal district courthouse in East St. Louis. Seward and McCormick are set to be sentenced on November 18. Wasik’s sentencing is scheduled for October 8.
The former CEO of ABC, Michael Cary Lawing, is due to be sentenced on October 15 before the
Honorable Nancy J. Rosenstengel, Chief United States District Judge for the Southern District of
Illinois. Lawing, 34, of Lincolnton, North Carolina, pleaded guilty to his role in the conspiracy late last year.Since April 2017, 14 other employees of CCE and ABC have also pleaded guilty to federal fraud violations in the Southern District of Illinois:
• Joseph Ralph Aievoli, IV, 26, of Boynton Beach, FL – Salesperson at CCE
• Cory Steven Bachman, 26, of Boynton Beach, FL – Salesperson at CCE
• Andrew Douglas Broad, 27, of Boynton Beach, FL – Director of Training at CCE
• Ryan Stocker Carr, 24, of Mount Laurel, NJ – Team Leader at CCE
• Joshua Dennis Cortez, 38, of Lake Worth, FL – Director of Training at CCE
• Nicholas James Davidson, 27, of Boynton Beach, FL – Salesperson at CCE
• Patrick M. Dougherty, 36, of Boynton Beach, FL – Salesperson at CCE
• Tatum Elyse Espenshade, 27, of West Palm Beach, FL – Salesperson at CCE
• Eric M. Iannaccone, 33, of Monroe Township, NJ – Sales Manager at CCE
• Anthony Vincent Ludena, 30, of Boca Raton, FL – Salesperson at CCE
• Robert Thomas McCart, 33, of Boynton Beach, FL – Team Leader at CCE
• Timothy James Miller, II, 28, of Schwenksville, PA – Salesperson at CCE
• Jonathan Matthew Richardson, 28, of Lake Worth, FL – Salesperson at CCE
• Kyle Evan Swinson, 27, of Boynton Beach, FL – Team Leader at ABC/CCE
Another CCE salesperson, Erica Crowell, 30, of Maple Shade, New Jersey, remains under indictment and is scheduled for trial on Sept. 9. Members of the public are reminded that an indictment is merely a formal charge against a defendant. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt to a jury.
Because the crimes allegedly took place in connection with telemarketing and victimized 10 or more persons over the age of 55, the maximum punishment in each case is 30 years imprisonment. The defendants could also be ordered to serve up to five years of supervised release and pay a fine of up to $250,000. Under federal law, restitution to identified victims is mandatory.Ten of the convicted defendants have been sentenced already:
Date Defendant Prison Sentence Restitution Mar. 8, 2018 Ryan Carr 12 months + 1 day $20,384.36 May 7, 2018 Joshua Cortez 18 months $3,034.00 June 8, 2018 Patrick Dougherty 12 months + 1 day $240,966.94 June 14, 2018 Anthony Ludena 12 months + 1 day $176,692.26 June 29, 2018 Nicholas Davidson 5 years probation $181,808.40 July 26, 2018 Timothy Miller 5 years probation + 200 hours community service $127,042.06 Aug. 3, 2018 Tatum Espenshade 1 day + 18 months home detention $132,683.68 Sept. 11, 2018 Andrew Broad 12 months + 1 day $55,238.28 Sept. 20, 2018 Jonathan Richardson 12 months + 1 day $78,638.99 Oct. 4, 2018 Corey Bachman 1 day $156,806.25
These cases are part of an ongoing investigation by the St. Louis Field Office of the Chicago
Division of the United States Postal Inspection Service. The cases are being prosecuted by
Assistant United States Attorneys Scott A. Verseman, Ranley R. Killian, and Nathan D. Stump.The Florida Attorney General’s Office raided CCE in June 2016 and has been cooperating with the federal investigation, in addition to bringing its own civil enforcement action against CCE under
Florida state law.The Federal Trade Commission has been working for some time to shut down illegal tech support scams. For more information about the FTC’s “2019 Tech Support Takedown,” please visit https://www.consumer.ftc.gov/blog/2019/03/ftcs-tech-support-takedown-2019.
Some consumers who were victimized by ABC or CCE / First Choice Tech Support have received additional fraudulent calls. These calls typically come from companies claiming either
(a) that the technical support the victims purchased has been transferred to them and additional funds are now needed; or (b) that they can help the victims obtain a refund. Victims should be advised that no companies have been authorized to provide them with any tech support services on behalf of ABC or CCE / First Choice Tech Support, or to provide them with a refund for any previous purchases.
Former Blackwater Employee Sentenced to Life Imprisonment for Murder in 2007 Shooting at Nisur Square in IraqRead the Press Release
WASHINGTON – Nicholas Slatten, 35, a former security guard for Blackwater USA, was sentenced today to life in prison without parole for committing first-degree murder in the killing of Ahmed Haithem Ahmed Al Rubia’y, one of 14 unarmed civilians who were killed in a shooting by Blackwater guards that took place at Nisur Square in Bagdhad on Sept. 16, 2007.
The announcement was made by Jessie K. Liu, U.S. Attorney for the District of Columbia and Timothy Dunham, Special Agent in Charge of the FBI’s Washington Field Office’s Criminal Division.
Slatten, formerly of Sparta, Tenn., was initially found guilty of the murder charge in October 2014, following a trial in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Royce C. Lamberth to life in prison.
Three other former guards for Blackwater USA were found guilty in the 2014 trial, of voluntary manslaughter, attempted manslaughter, and other charges. Slatten subsequently was sentenced in April 2015 to a mandatory term of life in prison without parole; the co-defendants were each sentenced to 30 years and one day in prison.
The defendants appealed the convictions. In August 2017, the District of Columbia Circuit of the U.S. Court of Appeals reversed Slatten’s conviction. The appeals court also ordered Slatten’s three co-defendants -- Paul Alvin Slough, Evan Shawn Liberty, and Dustin Laurent Heard -- to be re-sentenced for their roles in the crime. Slough, Liberty and Heard remain in custody and their re-sentencing proceedings are scheduled for September 5, 2019, before Judge Lamberth.
Slatten initially was retried on the murder charge last summer but a mistrial was declared on Sept. 5, 2018, after that jury was unable to reach a verdict. The second retrial began on Nov. 5, 2018, and the jury reached the guilty verdict on its fifth day of deliberations.
According to the government’s evidence, at approximately noon on Sunday, Sept. 16, 2007, several Blackwater security contractors, including Slatten and his former co-defendants, opened fire in and around Nisur Square, a busy traffic circle in the heart of Baghdad.
When they stopped shooting, 14 Iraqi civilians were dead. Those killed included 10 men, two women, and two boys, ages 9 and 11. At least another 17 victims were injured. According to the evidence, Slatten was the first to fire, without provocation, killing Ahmed Haithem Ahmed Al Rubia’y, an aspiring doctor, who was driving his mother to an appointment.
Slatten was among 19 Blackwater security contractors assigned to a convoy of four heavily-armed trucks known as a Tactical Support Team, using the call sign “Raven 23.” Shortly before noon, Raven 23 learned that a car bomb had detonated in central Baghdad near a location where a U.S official was being escorted by a Blackwater personal security detail team. Raven 23 team members promptly reported to their convoy vehicles, and the convoy drove to a secured checkpoint between the Green Zone and Red Zone.
Once there, in disregard of an order from Blackwater’s command, the team’s shift leader directed Raven 23 to leave the Green Zone and establish a blockade in Nisur Square, a busy traffic circle that was immediately adjacent to the Green Zone. All told, seven of the 19 members of Raven 23 fired their weapons.
In announcing the sentence, U.S. Attorney Liu, and Special Agent in Charge Dunham commended the work of those who investigated the case from the FBI’s Washington Field Office Northern Virginia Violent Crime Squad, which has extraterritorial investigative responsibilities, The Iraqi Ministry of Interior, and the Iraqi National Police who provided cooperation and assistance in the investigation.
They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office including Paralegal Specialist Jessica Moffat, Victim Witness Advocate Yvonne Bryant, Supervisory IT Specialist Leif Hickling, Victim Witness Service Coordinator Tonya Jones, Assistant U.S. Attorneys T. Patrick Martin, Fernando Campoamor-Sanchez, Karen Seifert, and Michael Friedman, and Special Assistant U.S. Attorney Alexandra Hughes.
Fishers Resident Receives 57 Months for Stealing Identities and Defrauding BanksRead the Press Release
INDIANAPOLIS B United States Attorney Josh Minkler announced today the conviction and sentencing of Arielle Wilkerson, age 25, to 57 months in federal prison after her admission of guilt to charges that she used the identities of victims throughout the United States to obtain new and take-over current credit cards and other financial instruments in the name of these victims for her own personal benefit, such as to purchase gift cards, airline tickets and other personal items.
"This sentence sends a strong message to those out there who steal victims’ identities and profit from the use of those identities, that this behavior is illegal and those who do so will face real consequences," said Minkler. "Protecting the public from the illegal use of personal information to commit fraud is a priority of this office."
From about 2012 through about March 16, 2018, Wilkerson devised a scheme to defraud banks and individuals throughout the United States, whereby she used the identities of many individuals, without their knowledge and authority, to obtain new and/or take-over current credit cards and other financial instruments in the name of these victims. Wilkerson then used those financial instruments to purchase gift cards and other personal items from stores located throughout the Southern District of Indiana and elsewhere, including through the internet.
At the sentencing hearing, the Court deemed Wilkerson "a consumer’s worst nightmare." Wilkerson obtained files over the internet containing personally identifiable information ("PII") of hundreds of individuals located throughout the United States, including names, dates of birth, social security numbers, phone numbers, credit card numbers, and bank account and routing numbers. Wilkerson ran credit reports on some of the victims to identify the financial institutions at which those victims had accounts. Wilkerson then used these stolen identities at multiple banks in order to obtain new and/or take-over current credit cards and other financial instruments
in the name of the victim. Wilkerson used those credit cards to purchase gift cards, beauty products, clothing, food and other personal items and merchandise at a variety of locations around Fishers and Indianapolis, including at Target, Meijer, Lowes, Walgreens and Macys. Wilkerson also used these credit cards to purchase airline flights and hotel reservations. In certain circumstances, Wilkerson wired money from victim accounts to accounts controlled by Wilkerson. Wilkerson had an extensive criminal history pertaining to fraudulent offenses, and re-victimized some of the same victims she had been previously been convicted of victimizing. In total, the banks suffered actual losses totaling at least $115,360.38 and at least another $41,500.00 in attempted loss.
This case was investigated by the U.S. Postal Inspection Service (USPIS) as well as members of the Indiana Financial Fraud and Identity Theft Task Force.
"The identity theft crimes Wilkerson committed could eventually cause the victims immeasurable time in an effort to clear their good names," said Patricia Armstrong, Inspector in Charge of the U.S. Postal Inspection Service, Detroit Division. "Not only did she use the U.S. Mail to further her scheme, but Wilkerson also targeted victims she had previously harmed. With this 57-month sentence, she will have time to reflect on her deeds."
According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Wilkerson must also serve four years of supervised release following her sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in fraudulent activity using identity fraud. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.4 and 4.5
Federal Jury Convicts Prior Felon for a Violent Armed Robbery of the Carlsbad Motel 6Read the Press Release
NEWS RELEASE SUMMARY – August 14, 2019
SAN DIEGO – Yesterday, a federal jury found Lance Lamont Lavert, a Utah resident, guilty of robbing the Motel 6 in Carlsbad, California, using and brandishing a Smith and Wesson .357 magnum revolver during the robbery, and being a felon in possession of a firearm. The jury returned their verdict after hearing the testimony of 11 witnesses and deliberating for approximately two hours.
“We are working tirelessly with our local and federal law enforcement partners to find and prosecute violent criminals and keep our community safe,” said U.S. Attorney Robert Brewer. “We are gratified to have brought this defendant to justice and some measure of peace to his victims, thanks to the diligent efforts of Assistant U.S. Attorneys Brandon Kimura and Matthew Brehm and our law enforcement partners.”
During trial before Chief District Judge Larry Alan Burns, the prosecution relied on victims from the Motel 6, a Carlsbad police detective, forensic specialists from the San Diego Sheriff’s Department, and federal agents, among others, as witnesses to prove Lavert’s traumatizing crimes. Witnesses described how, on the morning of July 9, 2018, Lavert and his girlfriend, a co-defendant, entered the Motel 6 on Paseo Del Norte in Carlsbad, California. Lavert approached the counter and asked for a room. When his request was denied due to a lack of identification, Lavert pulled a gun out of his backpack, pointed it at the clerk and her manager, and then demanded money. The clerk and manager ran from Lavert but Lavert jumped the counter, kicked in the door of the bathroom where the clerk was hiding, and then brought the clerk (at gun point) back to cash register. Lavert demanded money and pistol-whipped her in the head. After the clerk opened a drawer that held the motel’s cash, Lavert grabbed money from the drawer and ordered the clerk to give him keys to her personal vehicle. Lavert then jumped back over the counter and he and his girlfriend departed.
Two days later, Lavert was arrested trying to enter the United States from Mexico at the San Ysidro Port of Entry. He had the Smith and Wesson .357 magnum revolver concealed in his waistband. The prosecution introduced certified court documents to prove Lavert had several prior felony convictions, including for arson.
“This case serves as a great example of the close cooperation that exists between federal and local law enforcement and the U.S. Attorney’s Office, “said Timothy J. Tubbs, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in San Diego. “HSI will continue working with our regional partners to ensure that violent criminals are brought to justice.”
Lavert’s co-defendant and girlfriend (at the time of the offense) accepted a resolution before trial.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert S. Brewer, Jr., the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, labor trafficking and alien smuggling. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
DEFENDANT Case Number 18cr3485-LAB
Lance Lamont Lavert Age: 37 Salt Lake City, UT
SUMMARY OF CHARGES
Interference with Commerce by Threats or Violence – Title 18, U.S.C., Section 1951(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Using and Brandishing a Firearm During and in Relation to a Crime of Violence –
Title 18, U.S.C., Section 924(c)
Maximum penalty: life imprisonment; a mandatory minimum seven years in prison; and $250,000 fine
Felon in Possession of a Firearm
Title 18, U.S.C., Section 922(g)(1)
Maximum penalty: 10 years’ imprisonment and $250,000 fine
AGENCY
Carlsbad Police Department
San Diego Sherriff’s Department
Homeland Security Investigations
Customs and Border Protection
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Denver Man Convicted of Large-Scale Cocaine TraffickingRead the Press Release
DENVER – Michael Benitez-Lopez, aka “Mikey” aka “Money Mike”, age 36 of Denver, Colorado, was found guilty late Friday, August 9, 2019, on one count of conspiracy to distribute cocaine, one count of cocaine distribution, and one count of use of a telephone in furtherance of drug trafficking.
According to court documents and evidence presented at trial, from March 2017, through April 1, 2018, Benitez-Lopez received multiple kilograms of cocaine as part of a large scale drug trafficking organization that was responsible for the importation of more than 200 kilograms of cocaine during the course of the conspiracy. The defendant then sold multi-kilogram quantities of cocaine to lower level dealers throughout Metro Denver.
“Cocaine continues to be a serious problem in Metro Denver and in Colorado,” said U.S. Attorney Jason Dunn. “Working with the DEA and other law enforcement partners, we are targeting these large-scale traffickers and their networks. Getting Mr. Benitez-Lopez off the streets and in prison for at least 10 years sends a strong signal to like-minded criminals that we will seek lengthy sentences for traffickers that try to use Colorado as a base to pedal their poison.”
“The DEA continues to see an increase in the distribution and abuse of cocaine along the Front Range,” said Special Agent in Charge of DEA’s Denver Division William McDermott. “The investigation and prosecution of Mr. Benitez-Lopez on serious cocaine distribution charges is indicative of DEA’s commitment to work with the U.S. Attorney and law enforcement partners, and prioritize investigative resources towards dismantling the most significant illicit drug networks operating in Colorado. “
Benitez-Lopez faces not less than 10 years, and up to life in federal prison.
The trial lasted three days before Chief U.S. District Court Judge Philip A. Brimmer. The jury deliberated for two hours before reaching their guilty verdicts. Benitez-Lopez is scheduled to be sentenced by Judge Brimmer on November 1, 2019.
This case was investigated by the Drug Enforcement Administration. The defendant was prosecuted by Assistant U.S. Attorneys Stephanie Podolak and Zachary Phillips.
CASE NUMBER: 18-cr-00328
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Crafton Man Charged in Superseding Indictment with Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - A resident of Crafton, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count Superseding Indictment, returned on August 13, named Robert Allen, 40, as the sole defendant.
According to the Superseding Indictment, on May 11, 2017, the Federal Bureau of Investigation Western Pennsylvania Opioid Task Force, assisted by the Pittsburgh Bureau of Police, executed a series of search warrants in Allegheny County. Agents recovered over two kilograms of pure fentanyl, an AK-47 assault rifle, and over $100,000 in cash.
As a result, according to the Superseding Indictment, Allen is charged with conspiracy to distribute and possess with the intent to distribute over 400 grams of fentanyl, distribution and possession with intent to distribute more than 40 grams of fentanyl on April 26, 2017, distribution and possession with intent to distribute over 400 grams of fentanyl on May 11, 2017, and possession of a firearm as a convicted felon. As a convicted felon, Allen is prohibited by federal law from possessing a firearm.
The law provides for a maximum total sentence of not less than 15 years nor more than life in prison, a fine of up to $20,000,000, or both. The United States is also seeking the forfeiture of $116,054 in United States Currency, a black Infinity QX56 SUV, a Romarm Assault Rifle, and numerous items consistent with drug packaging and distribution. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Pittsburgh Bureau of Police, Port Authority Police Department, Munhall Township Police Department, and West Mifflin Police Department conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Charged with Illegal Possession of A Pipe Bomb Appears in Federal CourtRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced that Thomas Derreck Charlet, 40, of Valdese, N.C., appeared in federal court today on charges of illegal possession of a destructive device. Charlet was indicted by a federal grand jury on August 6, 2019, and was arrested by law enforcement this morning. The federal indictment also charges Charlet with possession of ammunition by a felon and drug trafficking.
According to allegations in the federal indictment, on or about November 24, 2018, Charlet knowingly possessed a destructive device known as a pipe bomb, not registered to him in the National Firearms Registration and Transfer Record. In addition to the explosive device, the indictment alleges that, during the relevant time period, Charlet was found to be in possession of ammunition, which he is prohibited from possessing due to prior felony convictions. In addition to the firearm offenses, Charlet is also charged with knowingly and intentionally possessing with intent to distribute methamphetamine.
Charlet appeared in federal court before U.S. Magistrate Judge W. Carleton Metcalf. The maximum penalty for possession of a pipe bomb and possession of ammunition by a convicted felon is up to 10 years in prison and a $250,000 fine for each offense. The drug trafficking charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
The charges in the indictment are allegations. Charlet is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray commended the Valdese Police Department for their investigation of the case, and thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the North Carolina State Bureau of Investigation for their assistance with this case.
Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Columbus Tax Preparers Plead Guilty to Fake Tax Return SchemeRead the Press Release
COLUMBUS – A Columbus, Georgia tax preparer pleaded guilty to federal wire fraud and identity theft charges, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Keven Walker, 33, of Columbus, Georgia was the owner of Walker Tax Financial Group, an income tax preparation business operating in Columbus. Mr. Walker pleaded guilty to one count of Wire Fraud and one count of Identity Theft in front of U.S. District Judge Clay Land on Tuesday, August 13, 2019. Mr. Walker’s co-defendant, Tiffany Gist a/k/a Tiffany Walker, 46, of Columbus, Georgia, entered a guilty plea on July 23, 2019 to one count Wire Fraud and one count Identity Theft. Both defendants face up to twenty years imprisonment and a $250,000 fine for Wire Fraud and a mandatory two year prison sentence for Identity Theft. They will be sentenced at a later date.
Mr. Walker and Ms. Gist e-filed tax returns with Walker Tax Financial Group. During the 2013 tax year, Internal Revenue Service agents discovered that the co-defendants filed 126 fraudulent returns, attempting to steal approximately $216,684 in refunds. According to Mr. Walker’s signed plea agreement, the co-defendants used one victim’s correct social security number to file a phony tax return, but the address and W-2 form were false. Victims signed affidavits stating they never did business with the defendants and did not authorize them to file tax returns.
“Dishonest tax return preparers will be held accountable for filing fictitious returns and stealing from taxpayers,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Protecting the integrity of our tax system is important, and all citizens must play by the same rules. I want to thank the IRS investigators for their good work in this case, and helping shut down these unscrupulous tax return preparers.”
“IRS Criminal Investigations Division is sworn to protect the tax system and bring to justice those who would steal from the Treasury,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Would-be criminals should know: we are committed to combating identity theft related refund fraud. We understand that in these types of cases, the government is not the only victim. Identity theft can have a catastrophic emotional and financial impact on its victims. Our agents are determined to keep up the fight to eradicate identity theft and protect the honest taxpayers who would otherwise personally shoulder the immense burden of this crime.”
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Mel Hyde prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Clifton Park Man Sentenced for Lying to the FBIRead the Press Release
ALBANY, NEW YORK - Thomas Ruchlicki, age 63, of Clifton Park, New York, was sentenced today to 1 year of probation for making a false statement to the Federal Bureau of Investigation, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the FBI Albany Field Office.
As part of his August 15, 2018 guilty plea, Ruchlicki admitted that on January 3, 2018, when questioned by FBI Special Agents, he falsely told the agents that his financial dealings with an owner/operator of a property construction and development company involved the owner/operator’s purchasing of an antique car from Ruchlicki. In fact, Ruchlicki never sold a car, and never had any plans to sell the owner/operator a car.
Senior United States District Judge Lawrence E. Kahn also ordered Rucklicki to pay a $3,000 fine and perform 50 hours of community service.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Rick Belliss.
California Man Sentenced to 12 Years in Prison for His Role in Operating A Multi-Million Dollar Continuing Criminal Enterprise That Was Engaged in Narcotics Trafficking in Western New YorkRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Jose Ruben Gil, 53, of Bell Gardens, California, who was convicted of operating a continuing criminal enterprise and money laundering conspiracy, was sentenced to serve 144 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Meghan Tokash and Wei Xiang, who handled the case, stated that between June 2013 and September 2015, the defendant conspired with others to sell cocaine in the Western District of New York. The defendant formed a relationship with co-defendant Darryl Williams, who agreed to distribute large amounts of drugs for Gil in Western New York and other cities. Gil, who was based out of California, requested that Darryl Williams and co-defendant Troy Gillon meet with him in California on at least two occasions to arrange for the set-up and delivery of illegal narcotics to Buffalo and other cities. The defendant began sending large shipments of cocaine via surface shipment on tractor-trailers, the proceeds of which were sent back to Gil via surface transportation.
On June 23, 2013, California Highway Patrol stopped a tractor-trailer in Barstow, California which resulted in the seizure of approximately $420,000 in United States Currency. The cash seized from the tractor¬ trailer was money collected from the sale of heroin and cocaine in the Buffalo area that Darryl Williams was sending to Gil.
Following Gil’s arrest in California on January 13, 2014, his associate, Herman Aguirre, continued the cross-continent drug trafficking operation. After Gil's arrest, the money obtained from drugs sales in Buffalo and other East Coast cities, was brought to Bank of America locations in Western New York, and deposited it into accounts held by three California-based corporations, including Triton Foods, Kamara Investments, and Fresh Choice Produce.
One coconspirator alone was responsible for depositing approximately $19,000,000 in cash derived from drug trafficking into those accounts. Once the money was deposited, the principals of the three California corporations engaged in further financial transactions for the purpose of withdrawing or otherwise debiting the funds from the bank accounts to give to Gil and/or Herman Aguirre to pay for the heroin, cocaine and fentanyl.
The transactions were designed to avoid a transaction reporting requirement under Federal law and made with knowledge that the money involved in the financial transactions represented the proceeds of narcotics trafficking.
A total of 17 defendants were charged and convicted in this case.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larson, Special Agent-in-Charge, New York Field Office.
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Buffalo Man Who Pointed A Gun at Police Is Going to Prison for Being A Felon in PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Julius Hatten, Jr., 29, of Buffalo, NY, who was convicted of being a felon in possession of a firearm, was sentenced to serve 30 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Justin G. Bish, who handled the case, stated that on August 5, 2018, Buffalo Police Officers observed a black vehicle, traveling eastbound on Winspear Avenue, violating several New York State traffic laws. Officers conducted a vehicle stop and determined that the defendant was not suitable to operate a motor vehicle. As officers attempted to secure Hatten and place him in handcuffs, he pushed them away, pulled a firearm from his waistband, began to flee on foot, and pointed the firearm in the direction of the officers. The defendant was ultimately apprehended on Highgate Avenue. The firearm was a 9mm pistol.
In August 2011, Hatten was convicted of a felony for Criminal Possession of a Weapon Second Degree in Erie County Court and is legally prohibited from possessing a firearm.
“While cases of police involved shootings garner headlines, situations such as this, in which police exercise tremendous restraint in peacefully resolving a situation in the face of great danger, are far more common yet far less publicized,” noted U.S. Attorney Kennedy. “As a community, we should be quicker to commend than we are to condemn. On behalf of our entire community, I say thank-you to the many brave men and women on the Buffalo Police Department—and all of our state and local law enforcement agencies—who each day put themselves in harm’s way and perform quiet acts of heroism. Far too often, your good work goes unnoticed and unreported.”
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Buffalo Man Pleads Guilty to Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brandon Barclay, 31, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to distribution of fentanyl. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Charles J. Volkert, Jr., who is handling the case, stated that on May 30, 2018, the defendant sold fentanyl to an undercover law enforcement officer. Subsequently, on June 15, 2018, Barclay sold a mixture of heroin and butyryl fentanyl to the same officer.
The plea is the result of an investigation by the New York State Police, under the direction of Major Edward Kennedy; Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for November 20, 2019, before Judge Arcara.
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Brockton Man Sentenced to 10 Years in Federal Prison for Firearm and Drug OffensesRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston on firearm and drug charges.
Douglas Norris, 40, was sentenced by Chief U.S. District Court Judge Patti B. Saris to 10 years in prison and four years of supervised release. In December 2018, Norris was convicted by a federal jury of one count of being a felon in possession of a firearm and ammunition, one count of possession with intent to distribute 28 grams or more of crack cocaine, one count of possession with intent to distribute cocaine, and one count of possessing a firearm in furtherance of a drug trafficking crime.
On June 20, 2017, law enforcement officers executed a search warrant at Norris’ home, where they recovered a backpack containing a fully loaded Smith & Wesson, model 6906, 9 mm pistol; 21 additional rounds of assorted ammunition; plastic baggies containing more than 32 grams of cocaine and more than 46 grams of crack cocaine; and two digital scales. Elsewhere in the house, police found an additional 25 grams of cocaine and cocaine base, a kilo press, an electronic money counter, calibration weights, and five additional scales. Norris was prohibited from possessing a firearm based on a prior conviction.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorneys Robert E. Richardson and Elianna Nuzum of Lelling’s Major Crimes Unit prosecuted the case.
Bridgeport Twins Plead Guilty to Violent Robbery and Carjacking of Ansonia Delivery DriverRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTOINE SNELL and TREYQUANE SNELL, both 20 of Bridgeport, each pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a federal robbery offense stemming from a violent robbery and carjacking of a food delivery driver in Ansonia.
According to court documents and statements made in court, on December 21, 2016, Antoine and Treyquane Snell, who are twin brothers, and a juvenile male, placed a food order with an Ansonia restaurant to be delivered to a location on Dwight Street. After the driver arrived at the location, the three males ordered the driver out of his car, attacked him and stole the car. The victim suffered serious injuries, including multiple broken bones in his face and bleeding in his brain.
The brothers each pleaded guilty to one count of Hobbs Act robbery, an offense that carries a maximum term of imprisonment of 20 years. Judge Dooley scheduled sentencing for November 6, 2019.
The brothers are detained pending sentencing.
The juvenile involved in the robbery and carjacking was charged, convicted and sentenced in state court.
This matter is being investigated by the Federal Bureau of Investigation and the Ansonia Police Department. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Maria del Pilar Gonzalez.
Bettendorf Doctor Pleads Guilty to Failure to Pay Employment TaxesRead the Press Release
DAVENPORT, IA-- On August 12, 2019, Nirander Kumar, age 66, from Bettendorf, Iowa, pled guilty to Failure to Pay Employment Taxes announced United States Attorney Marc Krickbaum. This crime carries a maximum potential penalty of not more than 5 years’ imprisonment, up to a $10,000 fine, a term of supervised release of not more than (3) three years, and a $100 special assessment to the Crime Victims Fund. Kumar’s sentencing is scheduled for December 19, 2019.
On or about July 31, 2014, Nirander Kumar had a duty and was responsible for paying withheld employment taxes on behalf of Jai Mata Lakshmi, doing business as Embers of Phoenix. Jai Mata Lakshmi operated two businesses at the same Davenport location Echelon Sports Bar, and Embers of Phoenix. In violation of federal tax laws, Kumar willfully failed to pay the second quarter 2014 withheld employment taxes due on behalf of Jai Mata Lakshmi. In total, Kumar admitted to willfully failing to pay approximately $187,000 in employment taxes withheld from Jai Mata Lakshmi employees. Additionally, as part of his plea agreement, Kumar also admitted that he willfully failed to pay over $234,000 of employment taxes withheld from employees’ pay at Bettendorf Pediatric; and over $39,000 in employment taxes for another business, Funky Desi, in Moline, Illinois.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa, and the Internal Revenue Service-Criminal Investigation Division.
Amsterdam Man Sentenced to 18 Months on Firearm ConvictionRead the Press Release
ALBANY, NEW YORK – Mark P. Messare, age 43, of Amsterdam, New York, was sentenced today to 18 months in prison for possessing an unregistered, short-barreled rifle.
The announcement was made by United States Attorney Grant C. Jaquith and John B. Devito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge Lawrence E. Kahn also imposed a 3-year term of post-imprisonment supervised release.
In pleading guilty, Messare admitted that on September 8, 2018, he possessed a Glock 9 millimeter handgun that was inserted into a Micro Roni Pistol Carbine Conversion Kit, creating a short-barreled rifle with a barrel length of approximately four (4) inches. Messare also admitted that he knew that the Micro Roni Pistol Carbine Conversion Kit was designed to convert a handgun into a short-barreled rifle, as the Conversion Kit includes a folding shoulder stock that allows a handgun to be fired from the shoulder. Messare never registered this firearm in the National Firearms Registration and Transfer Record, as required by federal law.
This case was investigated by the ATF and prosecuted by Assistant U.S. Attorney Michael Barnett.
Akron man indicted for his role in conspiracy to distribute 22 pounds of methamphetamineRead the Press Release
An Akron man was indicted for his role in a conspiracy to sell 22 pounds of methamphetamine.
Floyd Randle, 29, was indicted in U.S. District Court on one count of conspiracy to possess with intent to distribute methamphetamine.
According to court documents:
Randle had someone fly to Los Angeles on July 13, 2019 to transport $9,000 in cash. Once there, the person was told by Randle they would be given a package to transport from California to 161 West Tallmadge Avenue in Akron. The car the person was traveling in was stopped by police before they could deliver the 22 pounds of methamphetamine to the address in Akron.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case was investigated by the Federal Bureau of Investigations, Ohio HIDTA and Ohio State Highway Patrol. It is being prosecuted by Assistant U.S. Attorney Margaret Sweeney and Patrick Burke.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
13 August 2019
“John Doe” Indicted for Passport Fraud and False Statements in Health Care MatterRead the Press Release
BOSTON - A Southbridge man whose true identity is unknown was indicted by a federal grand jury in Boston today on charges of making false statements in an application for a U.S. passport, aggravated identity theft and false statements in a health care matter. It is alleged that Doe has used and maintained the identity of a U.S. citizen from Puerto Rico for 36 years.
John Doe, whose true identity is unknown, was indicted on one count of making false statements in an application for a U.S. passport, one count of aggravated identity theft, and two counts of false statements in a health care matter. Doe was charged by complaint. An arraignment date has not yet been set.
According to the charging documents, in January 2018, Doe allegedly submitted an application for a United States passport by representing himself as a U.S. citizen from Puerto Rico. He provided the U.S. citizen’s name, place of birth, and Social Security number. The Social Security number Doe provided did not, however, match the individual’s name he was representing as his own.
In support of his passport application, Doe allegedly provided a copy of a birth certificate issued to the victim whose identity he was representing as his own, an expired U.S. passport issued in 1988, an inmate’s identity card issued by the Federal Bureau of Prisons in the victim’s name, a Federal Probation Department urinalysis card in the victim’s name, and a letter from a U.S. Probation Officer Assistant indicating that Doe is currently on Federal Supervised Release.
The passport application and documents were sent to the Boston Passport Agency and subsequently referred to the Fraud Prevention Unit. It was then determined that the Social Security number submitted with the application was valid, but did not match the victim’s name Doe used in his application. On further review, it was determined that the Social Security number used on Doe’s previous passport application from 1988 was in fact a fraudulent number that had never been issued by the Social Security Administration.
Further investigation revealed that Doe, who is on lifetime parole, has four different names, four different dates of birth, and three different Social Security numbers associated with him. Doe has an extensive criminal record dating back to the 1970s. At one time, Doe owned an auto body shop in New York that was used to install electronic hidden compartments in cars to conceal money and cocaine trafficked from Colombia.
According to the indictment returned today, the government further alleges that Doe used this same identity on two MassHealth applications, one on June 10, 2015, and one on Oct. 31, 2018.
The passport fraud charge provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two year prison sentence to run consecutive to any other sentence imposed, and a fine of $250,000. The charge of false statement in a health care matter provides for sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made the announcement. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is 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.
Virginia Man Pleads Guilty to Federal Charge Relating to a Scheme to Provide Fraudulent Maryland Driver’s Licenses to Applicants Who Paid a FeeRead the Press Release
Greenbelt, Maryland – Warner Antonio Portillo, age 34, of Manassas, Virginia, pleaded guilty today to conspiracy to produce and transfer identification documents without lawful authority, specifically, Maryland driver’s licenses.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge John Eisert of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore.
According to his plea agreement, from at least July 2015 through March 2016, Portillo conspired with two employees of the Maryland Motor Vehicle Administration (MVA conspirators), who worked in the Largo, Maryland branch office, and others, to produce and transfer Maryland driver’s licenses without lawful authority. Specifically, Portillo and others met with prospective Maryland driver’s license applicants who were willing to pay money to obtain a driver’s license illegally, typically because the applicants were aliens without legal status in the United States or were otherwise unable to obtain a lawfully issued driver’s license. The applicants paid Portillo and his co-conspirators between $800 and $5,000 in cash for each fraudulently issued Maryland driver’s license.
Portillo admitted that he gave the MVA conspirators the names, addresses, and other information that applicants wished to appear on their Maryland driver’s licenses. Portillo provided the applicants and the MVA conspirators with fraudulent documents necessary to obtain a Maryland driver’s license, including proof of payment of taxes, proof of Maryland residence, a valid license number from Motor Vehicle Departments in other states, and an identification document. Portillo and others assisted the applicants to travel to the Largo branch of the MVA, and directed the applicants to one of the MVA conspirators’ workstations, where applicants obtained Maryland driver’s licenses produced by the MVA conspirators without lawful authority.
Portillo paid the MVA conspirators bribes of between approximately $500 and $1,000 in cash for each fraudulently issued Maryland driver’s license transferred to the applicants. The conspiracy resulted in the unlawful production and transfer of at least 276 Maryland driver’s licenses.
MDOT MVA Administrator Chrissy Nizer stated, “Following the April 2016 investigation, MDOT MVA immediately cancelled all of the fraudulent licenses in question. The MVA also implemented system changes to prevent the unlawful production and transfer of licenses and retrained and reinforced these procedures among our staff.”
Portillo faces a maximum sentence of 15 years in prison for the conspiracy. As part of his plea agreement, Portillo will also be required to pay a money judgment of at least $276,000, which constitutes assets derived from or obtained by Portillo as a result of the conspiracy. U.S. District Judge Theodore D. Chuang has scheduled sentencing for December 19, 2019, at 2:00 p.m.
United States Attorney Robert K. Hur commended HSI for its work in the investigation and thanked the Maryland Motor Vehicle Administration Investigation and Security Services for its assistance. Mr. Hur thanked Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the case.
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Ukrainian Woman Sentenced to 20 Years in Prison for Producing Child PornographyRead the Press Release
Earlier today, in federal court in Central Islip, Olena Kalichenko, a citizen of Ukraine, was sentenced by United States Circuit Judge Joseph F. Bianco to 20 years’ imprisonment, following her April 2016 guilty plea to conspiracy to sexually exploit a child, sexual exploitation of a child, production of child pornography for importation into the United States, and transportation of child pornography. Upon completion of her prison sentence, Kalichenko will be required to register as a sex offender, and faces deportation to Ukraine. Kalichenko was arrested in July 2014, when she traveled to the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant’s lengthy prison sentence should serve as a warning to anyone who victimizes children by producing and trafficking child pornography, on the internet or otherwise: You will be identified, apprehended, prosecuted and punished,” stated United States Attorney Donoghue. Mr. Donoghue thanked the Federal Bureau of Investigation (FBI) and the Suffolk County Police Department (SCPD) for their assistance in this case.
Between April 2012 and November 2012, Kalichenko produced 46 custom-made videos of child pornography, scripted by co-defendant Joseph Valerio, depicting a two-year-old girl in Ukraine. In exchange for thousands of dollars, Kalichenko emailed the videos to Valerio, who resided in Smithtown, Long Island. In January 2014, FBI agents and SCPD officers executed a search warrant at Valerio’s residence and found hidden cameras, costumes, a wooden stage, computers and other electronic devices. A forensic examination of the computers and electronic devices revealed that Valerio had produced child pornography in the basement of his house involving a six-year-old girl.
Valerio was convicted by a federal jury in November 2014 of conspiracy to sexually exploit a child, sexually exploiting a child, and transporting, receiving and possessing child pornography. He was subsequently sentenced to 60 years’ imprisonment.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, 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.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Ameet B. Kabrawala and Allen L. Bode are in charge of the prosecution.
The Defendants:
Olena Kalichenko
Age: 32
UkraineJoseph Valerio
Age: 52
Smithtown, New YorkE.D.N.Y. Docket No. 14 CR 94 (JFB)
E.D.N.Y. Docket No. 14 CR 95 (JFB)
USAO Seeking $17M in Money Judgments Against Defendants Convicted in Forest Park TrialRead the Press Release
The U.S. Attorney's Office is seeking more than $17 million in money judgments against the seven defendants convicted in the Forest Park Medical Center bribery trial in April, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Each defendant played a role in the $200 million kickback scheme, designed to induce doctors to steer lucrative patients – particularly those with high-reimbursing, out-of-network private insurance – to the now defunct hospital. The majority of the kickbacks, which totaled more than $40 million, were disguised as consulting fees or “marketing money” doled as a percentage of surgeries each doctor referred to Forest Park.
Hospital manager Alan Beauchamp, who testified for the government, admitted that Forest Park “bought surgeries,” and then “papered it up to make it look good.”
“Patients trust medical professionals to make healthcare based on the patients’ best interests. Instead, these defendants allowed their greed to dictate their recommendations as to how and where patients were treated,” U.S. Attorney Nealy Cox said today.
Prosecutors filed motions for entry of a forfeiture money judgement against six of the seven convicted defendants Tuesday afternoon:
From Wilton McPherson “Mac” Burt, Forest Park’s managing partner, the government is seeking $4,560,852.33. Mr. Burt was found guilty on 10 of 12 counts, including one count of conspiracy, two counts of paying kickbacks, six counts of commercial bribery in violation of the Travel Act, and one count of money laundering, and now faces up to 65 years in federal prison.
From Jackson Jacob, owner of the shell companies through which some of the bribes were routed, the government is seeking $526,102.13. Mr. Jacob was found guilty on four of 14 counts, including conspiracy and three counts of paying kickbacks, and now faces up to 20 years in federal prison.
From Michael Bassem Rimlawi, a spinal surgeon, the government is seeking $8,130,000.00. (A portion of that money would be jointly and severally liable with his partner, Dr. Doug Won.) Dr. Rimlawi was found guilty on three of four counts, including conspiracy and two counts of receiving kickbacks, and now faces up to 15 years in federal prison
From Shawn Mark Henry, a spinal surgeon who invested in FMPC, the government is seeking $840,000.00. Dr. Henry was found guilty on three of three counts, including conspiracy, commercial bribery, and money laundering, and now faces up to 30 years in federal prison.
From Mrugeshkumar Shah, a pain management doctor, the government is seeking $67,850.00. Dr. Shah was found guilty on four of four counts, including conspiracy, two counts of paying kickbacks, and one count of commercial bribery, and now faces up to 20 years in federal prison.
From Iris Kathleen Forrest, a nurse who recruited and preauthorized worker’s comp requests, the government is seeking $463,600.00. Ms. Forrest was convicted on two of two counts, including conspiracy and paying kickbacks, and now faces up to 10 years in federal prison.
Prosecutors had previously filed a motion for entry of a forfeiture money judgement against Dr. Douglas Sung Won, who is currently facing bankruptcy proceedings:
From Dr. Won, a spinal surgeon who partnered with Dr. Rimlawi, the government is seeking $9,122,500.00. (A portion of that money would be jointly and severally liable with Dr. Rimlawi.) Dr. Won was found guilty on one of two counts, conspiracy, and now faces up to 5 years in federal prison.
The government is also seeking $8,255,000.00 from Dr. Wade Neal Barker, one of Forest Park’s founding doctors, who pleaded guilty to conspiracy to pay and receive healthcare bribes and kickbacks as well as aiding and abetting commercial bribery before trial and agreed to testify for the prosecution.
In total, the government is seeking $17,355,904.46 from the defendants convicted at trial, plus an additional $8,255,000.00 from Dr. Barker, for an overall total of $25,610,904.46 to date.
In this case, prosecutors are seeking forfeiture money judgements based on proceeds traceable to the defendants’ crimes of conviction. In addition to any forfeiture ordered by the Court, the Forest Park defendants may be required to pay mandatory restitution to the victim insurance companies – an amount that will likely far exceed the amount sought in the money judgements.
The case was investigated by the U.S. Office of Personnel Management Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration Office of Criminal Investigations. Assistant U.S. Attorney Mark Tindall is handling the money judgements. Assistant U.S. Attorneys Andrew Wirmani, Kate Pfeifle, Marcus Busch, and Gail Hayworth are also prosecuting the case.
Two Top-Level Managers Admit Roles in Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Two top-level managers in a drug-trafficking organization today admitted their roles in distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.
Ronnie Lopez, 45, of Pennsauken, New Jersey, and Nelson Salcedo, 41, of Camden, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to their roles in managing a drug trafficking conspiracy that was based on the 500 block of Pine Street in Camden. Lopez pleaded guilty to an information charging him with one count of conspiracy to distribute heroin, crack cocaine, cocaine and fentanyl. Salcedo pleaded guilty to an information charging him with one count of conspiracy to distribute heroin, crack cocaine and cocaine. Lopez and Salcedo are the first of 19 defendants who were charged in this case in November 2018 to plead guilty. Charges against the other defendants remain pending.
According to documents filed in this case and statements made in court:
An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the Camden drug-trafficking organization.
Lopez occupied the highest position in the conspiracy, and obtained bulk quantities of illegal drugs for ultimate sale to customers. The organization also had other top-level managers and distributors, such as Salcedo, who obtained drugs from Lopez and other suppliers and prepared and packaged the drugs for distribution downstream. At their plea hearings, both Lopez and Salcedo admitted to distributing thousands of kilograms of illegal drugs in Camden.
The counts to which Lopez and Salcedo pleaded guilty carry a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations against the other defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: Lopez: Stanley O. King Esq., Woodbury, New Jersey
Salcedo: Rocco C. Cipparone Jr. Esq., Haddon Heights, New JerseyTwo Colombian Nationals and One Belizean National Sentenced for Roles in International Cocaine Smuggling ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew has sentenced Rudolph Randolph Meighan (28, Belize), Jorge Ramon Newball-May (49, Colombia), and Calbot Reid-Dilbert (59, Colombia) each to 19 years and 7 months in federal prison for their roles in an international maritime cocaine trafficking conspiracy. In May 2019, a federal jury found Randolph Meighan, Newball-May, and Reid-Dilbert each guilty of one count of conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States, and one count of possession with the intent to distribute five kilograms or more of cocaine on that vessel.
According to evidence presented at trial, Randolph Meighan, Newball-May, and Reid-Dilbert were part of an international maritime drug smuggling operation involving more than 600 kilograms of cocaine, worth approximately $18 million, bound for the United States. Randolph Meighan was the Belizean load guard for a Cartagena, Colombia-based cocaine smuggling crew, which included Newball-May and Reid-Dilbert as crewmembers. Prior to their interdiction by the U.S. Coast Guard, the individuals were transporting approximately 30 to 40 bales of cocaine onboard a go-fast vessel from Colombia to Belize, following a known cocaine smuggling route known as the “Honduras Rise.”
On December 1, 2018, a U.S. Coast Guard HC-130 aircraft deployed from Air Station Elizabeth City, N.C. spotted and recorded the defendants onboard a go-fast vessel traveling north at a high rate of speed, approximately 110 nautical miles southwest of Jamaica. In an attempt to destroy evidence and evade capture, the defendants jettisoned all of the cocaine bales onboard the vessel and sank them to the ocean bottom by tying the bales to the outboard engines and throwing the engines (their only means of propulsion) overboard.
Later that day, Randolph Meighan, Newball-May, and Reid-Dilbert and their now engine-less vessel were interdicted and boarded by USCG officers from the Tactical Law Enforcement Team (TACLET) Pacific. That boarding yielded crucial evidence consistent with cocaine trafficking, including trace amounts of cocaine present both on the smuggling vessel and on the defendants.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Special Assistant United States Attorney Nicholas DeRenzo and Assistant United States Attorney Dan Baeza.
Two Charleston Men Plead Guilty to Distributing MethamphetamineRead the Press Release
CHARLESTON, W.Va. – Two Charleston men pled guilty to federal drug trafficking offenses, announced United States Attorney Mike Stuart. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearings.
“Law enforcement intercepted a pound of pure meth in this case,” said United States Attorney Mike Stuart. “I commend law enforcement for their work in this case that prevented further distribution of this powerful drug.”
Christian Ryan Bowles, 27, pled guilty to possessing methamphetamine with intent to distribute methamphetamine. Public court hearings and Bowles’ plea agreement established that on August 2, 2018, Bowles brought mason jars containing about a pound of pure methamphetamine to Randall Lee Patton’s house on Garrison Avenue in Charleston. Bowles supplied Patton with 34 grams of the methamphetamine. Patton then had his neighbor, George Ray Breckenridge, transport the 34 grams of methamphetamine to a confidential police informant at the Dunbar Plaza Hotel. Police investigators conducting surveillance saw Bowles place the mason jars in the woods behind his house, where they were recovered. Bowles faces up to life in federal prison when he is sentenced on November 13, 2019.
George Ray Breckenridge, 41, pled guilty to distribution of methamphetamine. Court hearings and public filings established that, on August 2, 2018, Breckenridge, working with two other drug traffickers, traveled from his house on Garrison Avenue in Charleston to the Dunbar Plaza Hotel, where he delivered 34 grams of pure methamphetamine to a police confidential informant. Police investigators tried to initiate a traffic stop on Breckenridge’s car as he drove back home from the hotel. Breckenridge then took off back to his house on Garrison Avenue, where he fled on foot into the woods. Investigators arrested Breckenridge minutes later. Breckenridge faces a mandatory minimum ten years and up to life in federal prison when he is sentenced on November 14, 2019.
The Metropolitan Drug Enforcement Network Team (MDENT), Nitro Police Department, Charleston Police Department, South Charleston Police Department, Kanawha County Sheriff’s Department, and the Drug Enforcement Administration (DEA) conducted the investigation. Assistant United States Attorney Drew O. Inman is handling the prosecutions.
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Three Men Arrested in ‘SNAP’ Food Stamp Benefits Theft SchemeRead the Press Release
CAMDEN, N.J. – Three men were arrested today in connection with a scheme in which they allegedly stole hundreds of thousands of dollars in government funds using fraudulently procured electronic benefits transfer (EBT) cards, U.S. Attorney Craig Carpenito announced.
Luciano Estevez, 50, and Jose Garcia, 52, both of Camden; and Juan Melo, 56, of Woodlynne, New Jersey, are charged by separate complaints with one count each of conspiracy to defraud the United States and one count each of defrauding the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP). They appeared this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. A fourth defendant, Octavio Rodriguez, 50, of Pennsauken, New Jersey, is charged with the same crimes and remains at large.
SNAP, formerly known as the food stamp program, is a program administered by the USDA to assist low-income individuals and families with the purchase of groceries and food items. SNAP recipients receive EBT cards, similar to commercial debit cards, to make food purchases. Retailers authorized to accept SNAP benefits have EBT terminals to process the food purchases. Food purchases are made by swiping the EBT card at the terminal, and having customers enter a Personal Identification Number (PIN). The EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
According to documents filed in this case and statements made in court:
Estevez, Rodriguez, Garcia, Melo, and others allegedly targeted low-income individuals who possessed or had access to EBT cards, and unlawfully purchased the cards from these individuals in exchange for cash and controlled substances. Two confidential sources working with law enforcement engaged in 43 controlled transactions involving EBT cards totaling more than $40,500, which they exchanged for cash and controlled substances, including prescription opioids and narcotics.
The defendants used the unlawfully procured EBT cards to purchase bulk goods and food items from large national superstores. These goods and food items were then resold in small convenience and grocery stores owned or affiliated with the defendants or their associates, resulting in a profit for the defendants. Hundreds of EBT cards fraudulently procured by the defendants were used at these superstores, resulting in the misappropriation of approximately $150,000 in government funds.
Estevez also unlawfully procured an EBT terminal registered to a superstore in Philadelphia, Pennsylvania, to use at his small grocery store in Camden, which was not registered as a lawful SNAP merchant in the USDA program. Estevez was able to unlawfully receive through this terminal approximately $110,000 in SNAP funds.
The conspiracy count with which all four defendants are charged carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Estevez, Rodriguez, and Garcia each are each charged with a SNAP fraud offense in which the value of the trafficked benefits exceeded $5,000, which carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Melo is charged with a SNAP fraud offense in which the value of the trafficked benefits is less than $5,000, but greater than $100, which carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI Philadelphia Field Office, South Jersey Resident Agency, both under the direction of Special Agent in Charge Michael Harpster in Philadelphia; the U.S. Department of Agriculture-Office of Inspector General, Philadelphia, under the direction of Special Agent in Charge Bethanne M. Dinkins; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Sheriff’s Department, the N.J. State Police; the N.J. Department of Treasury and the National Guard, with the investigation leading to the arrests.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until convicted.
Three Individuals Sentenced to Federal Prison After Convictions for Conspiring to Distribute Heroin, Fentanyl and Crack Cocaine in Chittenden CountyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that United States District Judge William K. Sessions III sentenced Lassine Sangho, 25, of Philadelphia, PA, as well as Karen Norful, 57, of Winooski, VT, and Matthew Reynolds, 30, of Saint Albans, VT, to federal prison for engaging in a conspiracy to distribute heroin, fentanyl, and cocaine base. On August 5, 2019, Sangho was sentenced to 120 months in jail and 5 years of supervised release. Norful was sentenced to 36 months in jail and 3 years of supervised release on August 5, 2019. Yesterday, Reynolds was sentenced to 60 months in jail and 4 years of supervised release.
According to court documents, the prosecution grew out of a Drug Enforcement Administration (DEA) and local law enforcement investigation into heroin and crack distribution in the Winooski area. The investigation revealed that between December 2017 and August 2018 Sangho oversaw a drug trafficking operation in Chittenden and Franklin Counties with Norful and Reynolds as the main distributors. The investigation used confidential informants under the supervision of the DEA to conduct purchases of controlled substances from Norful and Reynolds. On August 2, 2018, law enforcement agents arrested Sangho after he brought crack cocaine and fentanyl to Vermont for sale. On the same day, DEA and local law enforcement agents executed a search warrant at Norful's home, which yielded approximately 500 grams of cocaine base and approximately 20 grams of fentanyl.
On March 15, 2019, Norful pleaded guilty to conspiring to distribute over 100 grams of heroin and 28 grams of cocaine base. On March 20, 2019, Sangho pleaded guilty to conspiring to distribute heroin and over 280 grams of cocaine base. Then, on April 1, 2019, Reynolds pleaded guilty to conspiring to distribute over 100 grams of heroin and over 28 grams of cocaine base.
In addition to the DEA, officers from the Winooski City Police and Vermont State Police, Williston Barracks, assisted with the investigation, arrests and search warrants.
Sangho is represented by Bradley S. Stetler, Esq. Norful is represented by Richard C. Bothfeld, Esq. Reynolds is represented by Heather E. Ross, Esq. Assistant U.S. Attorney Paul J. Van de Graaf represents the United States.
St. Louis Man Sentenced for Two Armed RobberiesRead the Press Release
St. Louis, MO –Jerrinon Tate, 28, of St. Louis, MO, sentenced to a term of fourteen years in federal prison for brandishing a firearm in furtherance of a crime of violence. He appeared today before U.S. District Judge Henry E. Autrey.
According to court documents, on June 21, 2018, at 1:00 a.m., Tate entered the QuikTrip located at 10845 Lilac in Bellefontaine Neighbors in Saint Louis County. He pointed a black semi-automatic pistol at the clerk and demanded money.
Hours later, Tate entered the Moto Mart located at 11005 Riverview Drive in the City of St. Louis. He again pointed a black semi-automatic pistol at the clerk and demanded money. Approximately 20 minutes later, Tate entered the Family Dollar store located at 8971 Halls Ferry, St. Louis, Missouri. Tate pointed a firearm at the clerk, demanded money, and threatened to shoot the clerk.
The total combined cash that Tate took in the armed robberies was approximately $847.
The Federal Bureau of Investigation investigated this case.
Seafood Processor Pleads Guilty to Selling Foreign Crabmeat Falsely Labeled as Blue Crab from the U.S.Read the Press Release
Phillip R. Carawan of Columbia, North Carolina, pleaded guilty today in federal court in New Bern, North Carolina, on charges that his company, Capt. Neill’s Seafood Inc., at Carawan’s direction, falsely labeled millions of dollars’ worth of foreign crabmeat as “Product of USA.”
“Today’s plea helps to ensure that American fishermen and consumers are not defrauded,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “We are proud to partner with the U.S. Attorney’s Office and NOAA in bringing this case.”
“Seafood mislabeling is consumer fraud that undermines efforts of hardworking, honest fisherman and the free market by devaluing the price of domestic seafood,” said Acting U.S. Attorney G. Norman Acker III for the Eastern District of North Carolina. “In this case, the fraudulent scheme artificially deflated the cost of domestic blue crab and gave Carawan an unacceptable economic advantage over law-abiding competitors.”
“Seafood fraud and mislabeling can affect the economic value of our domestic fisheries,” said Logan Gregory, Deputy Director of the U.S. Department of Commerce’s National Oceanic and Atmospheric Administration Office (NOAA) of Law Enforcement. “Our office is committed to investigating these crimes to help ensure the economic value and sustainability of our fisheries.”
According to information in the public record, Carawan was the owner, President and Chief Executive Officer of Capt. Neill’s Seafood Inc., a North Carolina company engaged in the business of purchasing, processing, packaging, transporting and selling seafood and seafood products, including crabmeat from domestically harvested blue crab. Carawan pleaded guilty to a one-count information charging him and Capt. Neill’s with substituting foreign crabmeat for domestic blue crab and, as part of the plea, Carawan admitted to falsely labeling more than 179,872 pounds of crabmeat with a retail market value of $4,082,841. The falsely labeled crabmeat was then sold primarily to wholesale membership clubs, but also to other retailers. Charges have also been filed against Capt. Neill’s and a hearing is set for Sept. 11, 2019.
As part of his guilty plea, Carawan admitted that he and his company could not and did not process sufficient quantities of domestic blue crab to meet customer demands. To make up the shortfall, Carawan and his company used foreign crabmeat to fulfill customer orders. During the periods when the company did not have a sufficient supply of domestic crab, Carawan and Capt. Neill’s purchased crabmeat (not live crabs) from South America and Asia.
As part of the guilty plea, Carawan further admitted that beginning at least as early as 2012, and continuing through June 16, 2015, he directed company employees to repack foreign crabmeat into containers labeled “Product of USA,” which Capt. Neill’s then sold to customers as jumbo domestically harvested blue crab.
As part of the plea agreements entered into by Carawan and Capt. Neill’s, restitution will be made to persons whom the government confirmed purchased Capt. Neill’s jumbo crabmeat between 2012 and June 16, 2015. For individuals who wish to see whether they qualify for restitution and for further information on the prosecution, please visit the following site: https://www.justice.gov/usao-ednc/captneillsseafoodvictiminformationpage or http://justice.gov/largecases.
This case was part of an ongoing effort by NOAA’s Office of Law Enforcement, in coordination with the Food and Drug Administration and the Department of Justice to detect, deter and prosecute those engaged in the false labeling of crabmeat.
The plea took place before U.S. Magistrate Judge Robert B. Jones Jr. in New Bern. Sentencing will take place in January 2020 before U.S. District Court Judge Louise W. Flanagan. The maximum sentence for falsely labeling crabmeat is five years in prison and a fine of up to twice the gross gain of the offense, which in this case, is $8,165,682.00
This prosecution is being handled by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina. The government is represented by Senior Litigation Counsel Banumathi Rangarajan and Trial Attorney Gary N. Donner.
Seafood Processor Pleads Guilty to Selling Foreign Crabmeat Falsely Labeled as Blue Crab from USARead the Press Release
WASHINGTON – Phillip R. Carawan of Columbia, North Carolina, pleaded guilty today in federal court in New Bern, North Carolina, on charges that his company, Capt. Neill’s Seafood Inc., at Carawan’s direction, falsely labeled millions of dollars’ worth of foreign crabmeat as “Product of USA.”
“Today’s plea helps to ensure that American fishermen and consumers are not defrauded,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “We are proud to partner with the U.S. Attorney’s Office and NOAA in bringing this case.”
“Seafood mislabeling is consumer fraud that undermines efforts of hardworking, honest fisherman and the free market by devaluing the price of domestic seafood,” said Acting U.S. Attorney G. Norman Acker III for the Eastern District of North Carolina. “In this case, the fraudulent scheme artificially deflated the cost of domestic blue crab and gave Carawan an unacceptable economic advantage over law-abiding competitors.”
“Seafood fraud and mislabeling can affect the economic value of our domestic fisheries,” said Logan Gregory, Deputy Director of the U.S. Department of Commerce’s National Oceanic and Atmospheric Administration Office (NOAA) of Law Enforcement. “Our office is committed to investigating these crimes to help ensure the economic value and sustainability of our fisheries.”
According to information in the public record, Carawan was the owner, President and Chief Executive Officer of Capt. Neill’s Seafood Inc., a North Carolina company engaged in the business of purchasing, processing, packaging, transporting and selling seafood and seafood products, including crabmeat from domestically harvested blue crab. Carawan pleaded guilty to a one-count information charging him and Capt. Neill’s with substituting foreign crabmeat for domestic blue crab and, as part of the plea, Carawan admitted to falsely labeling more than 179,872 pounds of crabmeat with a retail market value of $4,082,841. The falsely labeled crabmeat was then sold primarily to wholesale membership clubs, but also to other retailers. Charges have also been filed against Capt. Neill’s and a hearing is set for Sept. 11, 2019.
As part of his guilty plea, Carawan admitted that he and his company could not and did not process sufficient quantities of domestic blue crab to meet customer demands. To make up the shortfall, Carawan and his company used foreign crabmeat to fulfill customer orders. During the periods when the company did not have a sufficient supply of domestic crab, Carawan and Capt. Neill’s purchased crabmeat (not live crabs) from South America and Asia.
As part of the guilty plea, Carawan further admitted that beginning at least as early as 2012, and continuing through June 16, 2015, he directed company employees to repack foreign crabmeat into containers labeled “Product of USA,” which Capt. Neill’s then sold to customers as jumbo domestically harvested blue crab.
As part of the plea agreements entered into by Carawan and Capt. Neill’s, restitution will be made to persons whom the government confirmed purchased Capt. Neill’s jumbo crabmeat between 2012 and June 16, 2015. For individuals who wish to see whether they qualify for restitution and for further information on the prosecution, please visit the following site: https://www.justice.gov/usao-ednc/captneillsseafoodvictiminformationpage or http://justice.gov/largecases.
This case was part of an ongoing effort by NOAA’s Office of Law Enforcement, in coordination with the Food and Drug Administration and the Department of Justice to detect, deter and prosecute those engaged in the false labeling of crabmeat.
The plea took place before U.S. Magistrate Judge Robert B. Jones Jr. Sentencing will take place before U.S. District Judge Louise W. Flanagan in January 2020. The maximum sentence for falsely labeling crabmeat is five years in prison and a fine of up to twice the gross gain of the offense, which in this case, is $8,165,682.00.
This prosecution is being handled by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina. The government is represented by Senior Litigation Counsel Banumathi Rangarajan and Trial Attorney Gary N. Donner.
Revere Man Sentenced for Trafficking Counterfeit GoodsRead the Press Release
BOSTON - A Revere man was sentenced today in federal court in Boston in connection with importing and selling counterfeit sports apparel, including Celtics and other NBA jerseys, as well as NFL and NCAA jerseys.
Paul G. Adri, 34, was sentenced to three months of home confinement, two years of supervised release, and ordered to pay a $7,500 fine. In April 2019, Adri pleaded guilty to trafficking in counterfeit goods. Adri was charged in December of 2018, and released on conditions.
Adri improperly utilized trademarks held by Adidas, Nike, MLB, the NFL, and the NBA, among others, by importing counterfeit goods from Hong Kong and China and selling them on eBay. Adri ignored two separate notices from U.S. Customs and Border Protection relating to his illegal counterfeiting activities.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrime Unit prosecuted the case.
Rapid City Man Sentenced to 10 Years in Prison for Attempted Sex TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Attempted Commercial Sex Trafficking of Children and Attempted Enticement of a Minor Using the Internet following a federal jury trial, was sentenced on July 26, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Zam Lian Mung, age 30, was sentenced to 10 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Mung was one of seven men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2018 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with minors obtained through the Internet. The conviction stemmed from Mung communicating with someone he believed to be associated with a 15-year-old girl, but who was in fact an undercover agent, for the purpose of arranging a meeting to engage in sexual acts with the minor.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Mung was immediately remanded to the custody of the U.S. Marshals Service.
Prineville Man Sentenced to Federal Prison for Conspiracy to Transfer and Unlawful Possession of a Machine GunRead the Press Release
EUGENE, Ore.—Michael James Friesen, 33, of Prineville, Oregon, was sentenced today to 18 months in federal prison and three years’ supervised release for conspiracy to transfer and unlawful possession of a machine gun.
According to court documents, between May and June 2018, Friesen agreed to broker the sale of a Guide Lamp, Model M3A1, .45 ACP caliber machine gun for co-defendant John Widener Jordan, 38, also of Prineville. Between May 30 and June 5, Friesen discussed the sale price of the firearm with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) posing as a potential purchaser. Friesen confirmed for the agent that he had seen the firearm function as a machine gun.
On June 6, Friesen met the undercover agent in a motel room in Prineville. Shortly thereafter, Jordan brought the firearm to the motel room and completed the transaction in exchange for $3,000 in cash. Jordan in turn paid Friesen for arranging the sale.
On April 24, 2019, Friesen pleaded guilty to one count each of conspiracy to transfer and unlawful possession of a machine gun.
Jordan is awaiting a jury trial scheduled to begin on October 16, 2019.
This case was investigated by the ATF and is being prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
The case was brought as part of Project Safe Neighborhoods (PSN). 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.
Previously Convicted Felon Sentenced to 48 Months in Prison for Possessing FirearmRead the Press Release
DAYTON – Dontae T. Tucker, 34, of Dayton, was sentenced in U.S. District Court to 48 months in prison for possessing a firearm after being convicted of a felony.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Dayton Police Chief Richard S. Biehl announced the sentence imposed yesterday by U.S. District Judge Walter H. Rice.
According to court documents, in March and April 2018, Tucker possessed five firearms that he sold to an individual in Dayton. The firearms included a rifle, a shotgun and three pistols.
Tucker was previously convicted in Montgomery County Court of Common Pleas of aggravated robbery with a deadly weapon.
Tucker pleaded guilty in November 2018 to illegally possessing firearms.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Glassman commended the cooperative investigation of this case by ATF and Dayton Police, as well as Assistant United States Attorney Dominick S. Gerace, who is representing the United States in this case.
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Pocatello Man Sentenced to 100 Years in Prison for Producing Child PornographyRead the Press Release
POCATELLO – Lex Bennett Goodwin, 34, of Pocatello, was sentenced to 100 years in federal prison for producing, transporting, and possessing child pornography, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also sentenced Goodwin to a lifetime of supervised release, and entered an order forfeiting the electronic devices used to commit the offenses. Goodwin was ordered to pay restitution to the victims of the offenses and will be required to register as a sex offender. Goodwin was convicted by a jury on May 23, 2019, after a four-day trial.
According to court records, the investigation began in September 2017 after Google reported that child pornography had been uploaded to a Google account. An agent with Homeland Security Investigations (HSI) obtained a federal search warrant for the Google account, which revealed that the account belonged to Goodwin. Within the account, the agent located several sexually explicit images of a sixteen-month-old child that Goodwin had produced. The agent obtained additional search warrants authorizing the search and seizure of Goodwin’s electronics, including his cellphone, and a second Google account belonging to Goodwin. Additional files of the sixteen-month-old child that Goodwin had produced were located on his cellphone and in the second Google account. The investigation further revealed that Goodwin had attempted to produce sexually explicit images of a six-year-old child and that he had possessed and transported numerous other files of child pornography.
The case was investigated by Homeland Security Investigations in Idaho Falls and the Idaho Internet Crimes Against Children Task Force, with the assistance of the Idaho Department of Correction, Minidoka County Sheriff’s Office, and Pocatello and Rupert Police Departments.
The 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Pittsburgh Man Charged with Distribution and Possession of Child Porn Images and VideosRead the Press Release
PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of distribution and possession of material depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Krent Jeffrey Haight, 47, formerly of Mt. Washington, as the sole defendant.
According to the Indictment, on or about September 20, 2018, Haight distributed material depicting the sexual exploitation of minors to an internet website, and on November 14, 2018, Haight knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a term of imprisonment of not less than five years, and not more than 20 years, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pittsburgh Man Charged with Attempted Coercion of a Minor for SexRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Joseph Hamilton, 38, as the sole defendant.
According to indictment, from March 11, 2019 until on or about April 18, 2019, Hamilton used a facility or means of interstate commerce, specifically the Internet and over a cellular phone network, to knowingly attempt to persuade, induce, entice and coerce a minor to engage in sexual activity.
The law provides for a maximum total sentence of up to life in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The FBI conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.
Pittsburgh Felon Charged in Project Safe Neighborhoods CaseRead the Press Release
PITTSBURGH - One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Julian Crosby, 35, as the sole defendant.
According to the Indictment, on or about June 30, 2019, Crosby, being a convicted felon, illegally possessed a Springfield Armory, 45 caliber handgun. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm or ammunition.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Police Department conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods (PSN). 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Erie Auto Group and Finance Manager Indicted on Fraud ChargesRead the Press Release
ERIE, Pa. – Two Erie County residents have been indicted by a federal grand jury in Erie on charges of conspiracy, bank fraud and wire fraud, United States Attorney Scott W. Brady announced today.
The 17-count indictment named Andrew Gabler, 50, of Harborcreek, Pennsylvania and Chad Bednarski, 48, of Fairview, Pennsylvania as defendants.
According to the indictment presented to the court, Andrew Gabler was the owner of Lakeside Auto Sales and Lakeside Chevrolet and Chad Bednarski was the finance manager of Lakeside Auto Sales and Lakeside Chevrolet. The indictment states that from in and around January 2015, to in and around January 2019, Gabler and Bednarski falsely indicated that customers made a down payment and falsified and inflated the income of customers when submitting auto loan applications to financial institutions on behalf of customers. In addition, Mr. Gabler caused extended warranties to be sold to customers buying a vehicle at Lakeside Auto Sales and Lakeside Chevrolet and deliberately failed to remit the paperwork and payment to the extended warranty company. Further, the defendants falsely reported vehicle sales to General Motors for vehicles that had not been sold in order to obtain expiring incentive rebates. Finally, the defendants deliberately did not inform S&T Bank when Lakeside Auto Sales and Lakeside Chevrolet sold a vehicle that the dealerships had purchased utilizing S&T Bank’s floor plan financing in order to delay and attempt to avoid the dealerships’ required payment to S&T Bank for the sold vehicles which had been purchased using S&T Bank’s floor plan financing.
The law provides for a maximum total sentence of 510 years in prison and a fine of $17,000,000 for Andrew Gabler and 330 years in prison and a fine of $11,000,000 for Chad Bednarski. 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 defendants.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Operation Mountaineer Highway Update: Fayette County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Fayette County man pled guilty for his participation in a drug trafficking organization (DTO) in Fayette County, announced United States Attorney Mike Stuart. Ryan Johnson, 37, of Oak Hill, Fayette County, entered his guilty plea to conspiracy to distribute more than 100 grams of heroin and a quantity of oxycodone. The Drug Enforcement Administration and the Central West Virginia Drug Task Force conducted the investigation with the support of the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fayette County Sheriff’s Department, the Beckley/Raleigh County Drug Task Force, the Southern Regional Drug and Violent Crime Task Force, the Fayetteville Police Department, and the Oak Hill Police Department.
“Johnson is the tenth defendant convicted as a result of Operation Mountaineer Highway,” said United States Attorney Mike Stuart. “This exemplary operation conducted by law enforcement dismantled a significant DTO and, no doubt, saved lives.”
Johnson admitted that between October 2017 and September 2018, he worked with other members of a DTO operating between Fayette County, West Virginia and New Jersey to distribute heroin and oxycodone pills. Johnson admitted to selling oxycodone and heroin to a confidential informant working with law enforcement on two separate occasions. He further admitted that he was supplied with drugs by other members of the DTO that transported the drugs from New Jersey to Fayette County, West Virginia. Johnson also admitted to sending approximately $21,000 to his suppliers in New Jersey as payment for controlled substances. The controlled substances he obtained from New Jersey were re-distributed to other members of the DTO in Fayette County. Johnson admitted that he knew it was the plan to distribute the oxycodone and heroin in the Southern District of West Virginia.
Johnson faces a mandatory minimum sentence of not less than 5 years and up to 40 years in federal prison and a $5,000,000 fine when he is sentenced on November 12, 2019.
Assistant United States Attorneys Timothy D. Boggess and Andrew J. Tessman are in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
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New Castle Man Charged with Distributing Crack Cocaine in March and April 2019Read the Press Release
PITTSBURGH, PA - A resident of Lawrence County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Delaughn Searcy, age 23, formerly of New Castle, PA, as the sole defendant.
According to the Indictment, on or about March 18, 2019, Searcy distributed a quantity of crack cocaine, a Schedule II controlled substance, and on April 10, 2019, Searcy distributed more than 28 grams of crack cocaine.
The law provides for a sentence of not less than 5 years nor more than 40 years in prison, a fine not to exceed $6,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Yvonne M. Saadi is prosecuting this case on behalf of the government.
The Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Morris County Man Admits Role in Compounding Pharmacy ConspiracyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man today admitted participating in a conspiracy to bill health insurance companies for medically unnecessary compounded prescriptions, U.S. Attorney Craig Carpenito announced.
Peter Frazzano, 46, of Randoph, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court: Frazzano admitted that from November 2014 through March 2016 he participated in a conspiracy to defraud health insurance plans, including the N.J. State Health Benefits plan, by knowingly causing the billing of fraudulent claims for medically unnecessary prescription compounded medications, such as scar creams, pain creams, and metabolic supplements. To ensure that a physician prescribed compounded medications regardless of medical necessity, Frazzano and a conspirator recruited a doctor to sign prescriptions ordering compounded medications without ever examining or interacting with any of the individuals who were to receive the medications.
The count to which Frazzano pleaded guilty is punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. As part of his plea agreement, Frazzano must forfeit $270,751 in criminal proceeds and pay restitution of $2,727,292. Sentencing is scheduled for Nov. 19, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Vikas Khanna, Deputy Chief of the Criminal Division of the U.S.Attorney’s Office in Newark.
Defense counsel: Joseph Shumofsky Esq., Newark
Montana Native Women’s Coalition Board ex-treasurer charged with embezzlement of grant moneyRead the Press Release
BILLINGS—The former board treasurer of the Montana Native Women’s Coalition was arraigned today on charges in a 10-count indictment accusing her, along with the Coalition’s ex-chairwoman, of stealing federal grant funds to make unapproved trips to Las Vegas and to receive other unauthorized benefits, U.S. Attorney Kurt Alme said.
Barbara Mary Daychief, 43, of Browning, pleaded not guilty to theft from a program receiving federal funding, wire fraud, fraudulent travel claims and misprision of felony. Daychief, who was the Coalition’s treasurer, is charged with a total of six counts.
Co-defendant Meredith McConnell, 49, of Busby, who was the Coalition’s chairwoman and the executive director for Healing Hearts, is charged with a total of seven counts. McConnell is set for arraignment on Aug. 29.
U.S. Magistrate Judge Timothy J. Cavan presided and released Daychief pending further proceedings.
If convicted of the most serious crime, Daychief faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty.
The indictment accuses McConnell and Daychief of stealing from the Lame Deer-based coalition from about August 2017 until March 2018. The Coalition’s purpose is to help Native American victims of domestic and sexual violence. In addition, the Coalition brings together Native American leaders and state representatives who administer state and federal funds for domestic violence and programming to improve resources for Native women and tribal programs.
The Coalition receives funding from the U.S. Department of Justice’s Office on Violence Against Women, which provides grants for victim services. From October 2017 to September 2018, the OVAW awarded the Coalition $318,008 in federal funds.
In March 2017, the Coalition’s previous executive director, Toni Louise Plummer-Alvernaz, pleaded guilty to fraud for stealing from the Coalition. Plummer-Alvernaz was sentenced to one year and one day in federal prison and ordered to pay $246,024 restitution.
Two months later, the First Nations Development Institute held a two-day training for the Coalition in Billings, where it taught board members, including McConnell and Daychief, about conflicts of interest, whistleblower policies, code of ethics and financial oversight. The Coalition also received a special condition about reporting fraud in its September 2017 award package.
The indictment alleges McConnell and Daychief committed travel fraud, received travel payments on non-approved trips, including to Las Vegas, received and authorized double-payment for “days in service,” authorized unapproved construction projects and took other benefits they were not entitled to receive.
Assistant U.S. Attorneys Ryan Weldon and Bryan Dake are prosecuting the case, which was investigated by the Department of Justice Office of the Inspector General.
Pacer case reference. 19-90. The progress of the case may be monitored through the U.S. District Court calendar and the PACER system. To establish a PACER account, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Mingo County Man Sentenced for Federal Firearm OffenseRead the Press Release
CHARLESTON, W.Va. – Jay James Field, of Mingo County, was sentenced to 18 months in prison for being a felon in possession of a firearm, said United States Attorney Mike Stuart. Stuart commended the investigative efforts of the Logan County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On November 3, 2017, Logan County 911 Dispatch received a call regarding two suspicious individuals who left a known drug house. A Logan County Sheriff’s Deputy proceeded to the area, and identified the two individuals described by 911. The Deputy tried to speak to Fields who fled on foot with a gun in his hand. The Deputy retrieved the gun after Fields discarded it during chase. United States Marshals soon apprehended Fields.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Chris Arthur handled the prosecution.
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Michigan man admits to drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Delon Phillip Price, of Dearborn, Michigan, has admitted to drug distribution, United States Attorney Bill Powell announced.
Price, also known as “Pedro,” age 28, pled guilty to one count of “Distribution of Heroin Within 1,000 Feet of a Protected Location.” Price admitted to selling heroin near West Virginia University in November 2017.
Price faces not less than one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Meth Distributor Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Lasieka Juwanne Lee, 32, of Pensacola, Florida, was sentenced on the charge of possession with intent to distribute methamphetamine on August 9, 2019, in federal court in Mobile. Lee pled guilty to the charges in January of 2019.
United States District Court Judge Kristi Dubose imposed the statutory minimum mandatory sentence of 60 months for Lee’s involvement with the distribution of approximately 91 grams of methamphetamine. The judge ordered that Lee be placed on four years of supervised release when she completes her term of imprisonment. Lee will undergo treatment and testing for drug abuse while she is imprisoned and under supervised release. No fine was imposed, but Lee was ordered to pay the mandatory special assessment of $100.
The case was investigated by the Baldwin County Sheriff’s Office, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.