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Friday 28 June 2019
Defense Contractor Agrees to Pay $4,200,000 to Settle Allegations of Submitting False Claims to the United States Air ForceRead the Press Release
Oklahoma City – PAE Applied Technologies, LLC, has agreed to pay $4,200,000 to settle civil claims stemming from allegations that it submitted false claims to the United States Air Force, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
PAE is a Delaware limited liability company that provided services to the Air Force under an Aircraft Maintenance, Airfield Management, Aircrew Life Support and Base Operating Support contract. The services were provided at the Vance Air Force Base, which is located in Enid, Oklahoma. The United States alleges that for government fiscal years 2009-2014, PAE knowingly submitted false claims to the Air Force for employee wages under the Contract. More specifically, PAE submitted false claims for wage rates above the applicable wage caps. The case also included allegations that PAE would not have received award fees under the Contract if PAE had disclosed billing the United States for wages that exceeded the wage caps.
This settlement resolves the allegations filed in a lawsuit by a whistleblower who formerly worked for PAE. The lawsuit was filed in federal district court in Oklahoma City under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the government to intervene in the lawsuit. In this case, the government intervened in the action and resolved all the allegations by this settlement.
In reaching this settlement, PAE did not admit its liability, and the United States did not concede that its claims lack merit. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty of litigating the case.
This case was investigated by the Defense Criminal Investigative Service, Air Force Office of Special Investigations, and Defense Contract Audit Agency. It was prosecuted by Assistant U.S. Attorneys Ronald R. Gallegos and Scott Maule.
Defendant Sentenced for Lying to the FBI and Obstructing Justice as Part of a Scheme to Extort a Federal Bankruptcy JudgeRead the Press Release
NEWS RELEASE SUMMARY – June 27, 2019
SAN DIEGO – Michael Enriquez was sentenced in federal court today for lying to the Federal Bureau of Investigation by falsely implicating a federal bankruptcy judge in prostitution, and further obstructing justice by fabricating emails and an electronic telephone contact to corroborate his lies.
U.S. District Judge Cynthia Bashant sentenced Enriquez to 27 months in prison, payment of a $50,000 fine and a $200 special assessment, and three years of supervised release, during which he must perform 250 hours of community service. In sentencing Enriquez, Judge Bashant noted that his conduct “was a lot more sophisticated than someone who just told a lie” and was the type of obstruction scheme that “threatens the whole judicial system.”
“Attempts to extort a federal judge with malicious lies are a direct attack on the Rule of Law, and today’s sentence reflects that such depraved criminal activity will be punished harshly,” commented Robert S. Brewer, United States Attorney for the Southern District of California.
Paul D. Delacourt, Assistant Director in Charge of the FBI’s Los Angeles Field Office, said, "Mr. Enriquez provided the FBI with false information about a sitting federal bankruptcy judge but, following a thorough investigation, the FBI determined the judge had not engaged in the alleged activity and that Mr. Enriquez had knowingly lied to the FBI on numerous occasions and obstructed justice. The FBI will not tolerate those who attempt to undermine our judicial process for their own personal benefit. In this case, the FBI's fact finding resulted in the exoneration of a wrongly accused judge and the prosecution of Mr. Enriquez."
As detailed in the public record, Enriquez concocted these lies in an effort to assist DB, a litigant/debtor in an involuntary bankruptcy proceeding involving corporate entities connected to filmmaking. Apparently believing that the presiding bankruptcy judge favored his creditors, on multiple occasions, DB expressed to Enriquez a desire to disqualify the bankruptcy judge from the case. To help DB turn the tide of the bankruptcy proceeding, Enriquez falsely told DB that he had personal knowledge that the bankruptcy judge had engaged in prostitution. To corroborate this account, Enriquez created fake email records of the bankruptcy judge requesting escort services from an online escort service. Defendant also input the judge’s name and chamber’s telephone number into his phone contacts in an effort to corroborate that the judge was, in fact, a client of such services. After creating this bogus paper trail, Enriquez forwarded the emails to DB, knowing that the false accusations and fake emails would likely be used to extort the bankruptcy judge or otherwise influence the bankruptcy proceedings.
In or about early 2013, the relationship between Enriquez and DB soured. In an effort to seize some advantage from his duplicity, Enriquez identified DB’s creditors in the bankruptcy proceeding and arranged to meet two creditors, DM and PP, in New York City in February 2013. Unbeknownst to DB, at this meeting, Enriquez told DM and PP that DB had obtained information that the bankruptcy judge had frequented prostitutes, and that DB intended to use that information to influence the outcome of the bankruptcy proceedings. Enriquez did not tell DM and PP that he was the source of the information, that the information was bogus, or that he had fabricated the corroborating documents.
When PP suggested that he could help DM and PP by relaying his allegations to the FBI, Enriquez negotiated a $100,000 payment, which ultimately never materialized. Thereafter, on or about April 25, 2013, May 17, 2013, and on multiple occasions until in or about July 2016, defendant knowingly and willfully made material false and fraudulent statements to the FBI falsely implicating the bankruptcy judge in prostitution, and provided the FBI with emails and an electronic telephone contact that he had fabricated to corroborate his story.
A multi-year investigation by the FBI ensued, focusing initially on the allegations of bribery, extortion, and the conduct of the bankruptcy judge. Eventually, through painstaking effort, agents unearthed the truth: For no discernible reason at all, through malicious lies and fabricated documents, Enriquez attacked the reputation of a respected federal bankruptcy judge. U.S. Attorney Brewer commended the FBI agents for rigorously unraveling defendant’s lies and deception, and ultimately vindicating our judicial system.
DEFENDANT Case Number 18CR3575-BAS
Michael Enriquez Age: 55 San Antonio, TX
SUMMARY OF CHARGE
False Statements -- Title 18, U.S.C., Sec. 1001
Obstruction of Justice -- Title 18, U.S.C., Sec. 1519
AGENCY
Federal Bureau of Investigation
Cumberland County Man Sentenced to Fifteen Months’ Imprisonment for Wire FraudRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Suhail Farooq, age 26, of Camp Hill, Pennsylvania, was sentenced on June 27, 2019, by Chief U.S. District Court Judge Christopher C. Conner to 15 months’ imprisonment to be followed by two years of supervised release for wire fraud.
According to United States Attorney David J. Freed, Farooq previously admitted to perpetrating a computer-based fraud scheme that targeted victims across the United States. As part of the scheme, Farooq and others pretended to work for technology companies and contacted victims through computer pop-ups and telephone calls. Once contact was made, Farooq and others induced victims to authorize payments under false pretenses and utilized remote desktop access applications to initiate unauthorized financial transactions from the victims’ financial accounts.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Carlo D. Marchioli and Chelsea Schinnour prosecuted the case.
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Commerce Bank Robbery Defendants Sentenced to Substantial Prison TermsRead the Press Release
TUCSON, Ariz. – On June 25, 2019, Jovante Lamar Fryson II, 20, of Gardena, California and Amauje Jason Ferguson, 23, of Inglewood, California were sentenced by U.S. District Judge James A. Soto to serve nine years and seven years in prison, respectively. A third co-defendant, Tysheere Traymar Ford, 25, of Los Angeles, California was previously sentenced to twelve years for his participation in the same offense. All co-defendants previously pleaded guilty to bank robbery, and Fryson and Ferguson also pleaded guilty to conspiracy to commit bank robbery. All three defendants’ terms of imprisonment will be followed by three years of supervised release.
On June 29, 2018, after traveling to Tucson from California, Fryson, Ferguson and Ford planned and executed a robbery of the Commerce Bank of Arizona located on East Broadway Road. All three defendants entered the bank wearing ski masks and gloves, and ordered employees to the floor before physically forcing them to open a teller drawer and the bank vault. Multiple bank employees were injured during the robbery. After robbing the bank, the co-defendants fled in a stolen vehicle, leading a Tucson Police Department officer on a high-speed chase before crashing the getaway vehicle into an SUV. The co-defendants then fled on foot and hid in a nearby neighborhood, where they were ultimately arrested by Tucson Police Department.
The investigation in this case was jointly conducted by the Tucson Police Department and Federal Bureau of Investigation, Tucson. The prosecution was handled by Christopher J. Curran and Erica L. Seger, Assistant U.S. Attorneys, District of Arizona, Tucson.
Columbia Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Wilbert Green, Jr., age 30, of Columbia, was sentenced to over 4 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that at approximately 8:45 p.m. on April 13, 2018, officers of the Columbia Police Department and the Midlands Gang Unit were patrolling the Lorick Circle area of Columbia with special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) after receiving several firearm-related reports the previous month. As they drove through an apartment complex on Lorick Circle, officers/agents observed what appeared to be a black pistol magazine protruding from Green’s right rear pants pocket. Officers/agents exited their vehicles and made contact with Green, who was also holding an open container of beer, in violation of the open container law. Green failed to comply with directives of officers/agents to quit reaching behind to his back pocket and to turn around put his hands on a nearby car. Green advised officers/agents, “I know the law….I just got out of prison.” Officers secured Green and located a loaded Hi-Point 9mm with an extended high-capacity magazine in Green’s rear right pants pocket. After the arrest, officers/agents learned that there were outstanding warrants for Green from Clarendon County for attempted murder and possession of a weapon during a violent crime.
A ballistics analysis through National Integrated Ballistic Information Network (NIBIN) revealed that the Hi-Point 9mm handgun was linked to shell casings recovered at an unsolved July 2017 shooting off Garners Ferry Road. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.
Federal law prohibits Green from possessing firearms and ammunition based upon his prior state convictions from North and South Carolina. Green’s prior state court convictions include: assault with a deadly weapon (knife) to inflict serious injury (NC 2009); criminal domestic violence wherein he threatened a female with a firearm and slapped her (SC 2013); and assault and battery 1st degree wherein he shot a man during a robbery (SC 2015).
Senior United States District Judge Cameron McGowan Currie sentenced Green to 51 months in federal prison, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the ATF and the Columbia Police Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), 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.
Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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California Man Charged and Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – A California man will plead guilty to charges in connection with using bribery and other forms of fraud to facilitate his son’s admission to the University of Southern California (USC).
Jeffrey Bizzack, 59, of Solana Beach, Calif., will plead guilty to an Information charging him with one count of conspiracy to commit mail fraud and honest services mail fraud. A plea hearing has not yet been scheduled by the Court. According to the terms of the plea agreement, the government will recommend a sentence of nine months in prison, one year of supervised release, a fine of $75,000, and restitution.
According to the Information, Bizzack agreed with William “Rick” Singer to pay $250,000 to facilitate the admission of Bizzack’s son to USC as a purported volleyball recruit. On July 16, 2017, Singer emailed Bizzack asking for his son’s biographical information for the purpose of creating a falsified athletic profile. On July 26, 2017, Bizzack’s son sent Singer his academic transcripts, which Singer then forwarded to Laura Janke, a former USC assistant soccer coach. Janke created a fabricated volleyball profile for Bizzack’s son and sent it to Singer, who forwarded it to the senior associate athletic director at USC. It is alleged that, in October 2017, the USC senior associate athletic director presented Bizzack’s son to the USC subcommittee for athletic admissions as a purported volleyball recruit. In November 2017, Bizzack’s son received conditional admission to USC as a student-athlete, and in March 2018, Bizzack’s son received a formal acceptance letter from USC. Beginning in December 2017, Bizzack sent a $50,000 check to the USC “Galen Center,” and made multiple payments totaling $200,000 to Singer’s purported non-profit corporation.
According to the Information, in July 2018, Singer began making monthly payments of $20,000 to the senior associate athletic director at USC in exchange for her assistance with facilitating the admission of Bizzack’s son and others.
Janke previously pleaded guilty and is cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brownsville, PA Man Indicted on Charges Relating to the Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH – A resident of Fayette County has been indicted by a federal grand jury in Pittsburgh on charges of production of material depicting the sexual exploitation of a minor and possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The eight-count Indictment, returned on June 26, named Sean Houston, age 47, of Brownsville, Pennsylvania, as the sole defendant.
According to indictment, on or about December 23, 2015; May 20, 2016; October 2016 to October 2018; July 22, 2017 to October 2018; May 2018 to October 2018; October 2016 to October 2018; and October 5, 2018, Houston produced and attempted to produce visual depictions, images and a video of the sexual exploitation of a minor. The Indictment further alleges that on or about October 29, 2018, Houston knowingly possessed visual depictions of the sexual exploitation of minors.
The law provides for a maximum total sentence of life imprisonment for the production and attempted production of child pornography, a fine of $2,000,000 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 Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations, the Centerville Police Department, the North Strabane Police Department and the Washington County District Attorney’s Office 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.
Brooklyn, New York, Man Admits Distributing Synthetic Drugs, Fentanyl, and Oxycodone over the InternetRead the Press Release
CAMDEN, N.J. – A New York man today admitted selling dangerous designer drugs, fentanyl, and oxycodone over the internet, U.S. Attorney Craig Carpenito announced.
Shadab Chowdhury, 26, of Brooklyn, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with eight counts of distributing and possessing with intent to distribute synthetic cannabinoids; one count of distributing and possessing with intent to distribute fentanyl; and one count of distributing and possessing with intent to distribute oxycodone. Chowdhury also acknowledged, as relevant conduct, his distribution of cyclopropyl fentanyl.
According to documents filed in this case and statements made in court:
Chowdhury admitted that from January 2016 to July 2018, he used the internet to distribute synthetic cannabinoids, fentanyl, cyclropropyl fentanyl, and oxycodone. He solicited and serviced his customers through three websites, two email accounts, and text messages. His customers included undercover law enforcement officers located in New Jersey, as well as various individuals in New York, Kansas, North Carolina, South Dakota, West Virginia, Georgia, Ohio, Alaska, California, and Virginia.
Chowdhury arranged and coordinated shipments of synthetic cannabinoids, which he termed “fire” or “spice,” as well as shipments of fentanyl and oxycodone. He also prepared the drugs to make them potent and negotiated pricing on the drugs. To avoid law enforcement, Chowdhury deliberately misbranded the synthetic cannabinoids. He also referred to the oxycodone and fentanyl in code. He received payments for his drug shipments via credit card payments, Western Union, direct bank deposit, and cryptocurrency.
Each of the counts to which Chowdhury pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. As part of Chowdhury’s plea agreement, he will forfeit a large number of personal items that were seized from his home, including several computers, computer parts and other electronics that were involved in his crimes. Sentencing is scheduled for Oct. 4, 2019.
U.S. Attorney Craig Carpenito credited special agents with the Drug Enforcement Administration’s Tactical Diversion Squad in the Camden Resident Office, under the direction of Special Agent in Charge Susan Gibson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Mitchell C. Elman Esq., Ozone Park, New York
Bothell Woman Sentenced to 3 Years in Prison for Embezzling more than $400,000 from Family-Owned Property Management FirmRead the Press Release
A 52-year-old Bothell, Washington woman was sentenced today in U.S. District Court in Seattle to three years in prison and five years of supervised release for bank fraud and aggravated identity theft for a five-year scheme in which she cashed 306 fraudulent checks, totaling $400,526 and drawn on the bank accounts of her employer. ERIN K. McCAULEY, also known as ERIN K. CHARLES, was a trusted part-time employee of a Lynnwood, Washington property management firm. The firm managed a number of commercial properties and a contracting business. It was owned by a couple who brought McCAULEY on in 2004 to assist with the book-keeping. As early as 2012, McCAULEY began writing large checks to herself and forging the owners signatures. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said “she stole a significant amount of money from a small company and it greatly impacted that business.”
According to records filed in the case, McCAULEY had become a trusted employee of the couple as they entered their 60’s and 70’s. They gave McCAULEY gifts, assisted her with car and house payments and made sure she got an annual bonus. In 2017 for example, the couple loaned McCAULEY $8,000 for home repairs. It appears now they were repaid with some of the $400,000 that was stolen from their own accounts.
When the couple became aware of the theft, they worked with the FBI to see if McCAULEY would admit the embezzlement. She vastly underestimated the amount of money she had embezzled, and acknowledged much of the money had gone to feed her gambling addiction.
In asking for a four-year prison sentence prosecutors wrote to the court McCAULEY “wanted money that she did not have in order to live a lifestyle should could not afford. To do so, she took advantage of her position as the trusted office manager and bookkeeper for the (couple) and used their business accounts as her personal “piggy bank” to fund the lifestyle she wanted to live.”
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Stephen Hobbs.
Billings meth trafficker sentenced to four years in prisonRead the Press Release
BILLINGS—A woman who admitted selling a pound of methamphetamine for $4,500 as part of series of sales was sentenced on Wednesday to four years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Ashley Dawn Chesmore, 30, of Billings, pleaded guilty in February to conspiracy to possess with intent to distribute meth and to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
An investigation beginning in July 2018 by the Eastern Montana High Intensity Drug Trafficking Area Task Force and Drug Enforcement Administration found that Chesmore was distributing drugs, court documents said. A confidential informant and an undercover agent made a total of seven buys from Chesmore, with the last sale involving a pound of meth Chesmore sold for $4,500. A pound of meth is the equivalent of about 3,624 doses.
Investigators learned Chesmore was receiving meth in the mail from a co-conspirator and that one of the parcels came from San Ysidro, CA. All of the meth tested by the DEA was substantially pure.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Drug Enforcement Administration, FBI, Eastern Montana High Intensity Drug Trafficking Area Task Force and the Billings Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime
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Biddeford Man Sentenced to Nine Years for Conspiracy to Commit Sex Trafficking of a MinorRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Isaac Suero, 23, of Biddeford, Maine, was sentenced yesterday in U.S. District Court by Judge Nancy Torresen to nine years in prison and five years of supervised release for conspiracy to commit sex trafficking of a minor. Suero also was ordered to pay $750 in restitution to the victim of the offense. Suero pleaded guilty on January 16, 2019.
Court records reveal that on April 19, 2017, Suero and the victim, who was 15 years old at the time, connected online. Thereafter, Suero and three others picked the victim up at a Hannaford store and drove her to a private residence in the Bangor area. While there, there was a discussion about prostitution, and it was suggested that the victim, who had no money, would engage in prostitution with Suero’s assistance and give him a portion of the money. Suero paid for a hotel room in Bangor for the victim and another adult female, and between April 20 and 22, the 15-year-old victim engaged in multiple commercial sex acts, giving a portion of the proceeds to Suero. On April 22, Suero paid an associate to drive him and the victim from Bangor to a motel in Scarborough, Maine, where Suero introduced the victim to his mother, Lourdes Suero. Isaac Suero left the victim at the motel with his mother, and the victim continued to engage in commercial sex acts in the Scarborough area. Lourdes Suero pleaded guilty in March to using a facility of interstate commerce with the intent to promote prostitution and is scheduled to be sentenced in August.
The District of Maine is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the FBI; the Portland, South Portland and Lewiston Police Departments; the York County Sheriff’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Drug Enforcement Administration. The Androscoggin County Sheriff’s Office and District Attorney’s Office also provided assistance.
Bay Area Man Sentenced to Ten Years in Prison for Possessing Child PornographyRead the Press Release
SAN FRANCISCO – Devon Davey Hudson, a/k/a Davey Wayne Hudson, was sentenced to 120 months in prison for possessing child pornography, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable Jon S. Tigar, U.S. District Judge.
Hudson, 56, of Alameda County pleaded guilty to the charge on February 15, 2019. In pleading guilty, Hudson admitted he possessed images of child pornography. According to court filings, Mr. Hudson possessed more than 100,000 images and videos of child pornography, some depicting physical acts of sexual abuse of children.
A federal grand jury indicted Hudson on May 31, 2018, charging him with one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Hudson pleaded guilty to the count.
In addition to the prison term, Judge Tigar also sentenced the defendant to a ten-year period of supervised release and ordered him to pay restitution to one victim in the amount of $1,000. The defendant was immediately remanded into custody.
Assistant United States Attorney Jose Olivera is prosecuting the case with the assistance of Jessica Rodriguez. The prosecution is the result of an investigation by FBI in partnership with the Oakland Police Department.
Bandon Educational Assistant and Coach Sentenced to 30 Years in Federal Prison for Sexually Abusing an InfantRead the Press Release
MEDFORD, Ore.—U.S. Attorney Billy J. Williams announced today that former Bandon School District educational assistant and coach Sean Jeffrey Haga, 33, was sentenced to 360 months in federal prison and a life term of supervised release for sexually abusing a 2-month-old infant and distributing photos of the abuse on the internet.
“Mere hours passed between FBI agents first discovering the photographic evidence of Sean Haga’s abuse online and their rescue of the infant victim assisted by local law enforcement. Unfortunately, Haga’s victimization of this child did not stop with his arrest. These images will continue to be circulated on the internet forever, a heartbreaking fact this child will one day come to understand,” said U.S. Attorney Williams. “We believe the sentence imposed will prevent Haga from abusing other children and hope that it brings some measure of solace and comfort to the victim’s family and community.”
“The sexual abuse of this victim—an infant—is reprehensible. Sean Haga's further exploitation of this baby as he shared that abuse with other pedophiles is unconscionable. I want to thank the FBI agents and local partners at the Bandon Police Department and Coos County Sheriff's Office who worked around the clock to rescue this child and arrest Haga,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
On June 17, 2016, Haga shared photos depicting the sexual abuse of children online with an undercover FBI task force officer using Kik Messenger, an instant messaging mobile application. Haga told the undercover officer that he wanted to travel to have sex with the officer’s minor daughter and that he possessed photos of himself sexually abusing a minor victim. Haga sent multiple pictures depicting this abuse to the undercover officer.
The FBI worked through the night to identify the person associated with the Kik account and the location from which it was being used. Based on the information collected, FBI agents from the Medford Resident Agency were able to obtain search and arrests warrants for Haga who was arrested on June 18, 2016 without incident.
On April 25, 2018, Haga pleaded guilty to one count of sexual exploitation of a minor.
This case was investigated by the FBI and prosecuted by Judi Harper and Amy Potter, Assistant U.S. Attorneys for the District of Oregon.
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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
Attorney General William P. Barr Announces Emergency Funding to Address Public Safety Crisis in Rural AlaskaRead the Press Release
Justice Department Authorizes More than $10 Million in Immediate Funding to Support Police in Alaska Native Villages and Additional Resources to Support Child Advocacy Centers in Rural Hubs, Expanding Prosecution Resources and Project Safe Neighborhoods Crime Reduction Measures
Attorney General William P. Barr declared a law enforcement emergency in rural Alaska under the Emergency Federal Law Enforcement Assistance Program today, making $6 million immediately available to the state of Alaska for critical law enforcement needs of Alaska Native villages. Recognizing that Alaska has the highest per capita crime rate in the country and the unique circumstances of Alaska’s geographical and jurisdictional landscape, the Attorney General authorized additional funding and several long-term measures to support village public safety and victim services.
The $6 million in emergency funding from the Office of Justice Program’s Bureau of Justice Assistance (OJP-BJA) will go toward hiring, equipping, and training Village Public Safety Officers (VPSOs), Village Police Officers (VPOs), and Tribal Police Officers (TPOs) working in rural Alaska, as well as for mobile detention facilities.
In addition, the Department of Justice Office on Community Oriented Policing Services (COPS) will award $4.5 million in funding for 20 officer positions, along with equipment and training, to Alaska Native grantees by the end of July.
The Office for Victims of Crime (OVC) and the Office on Juvenile Justice and Delinquency Prevention (OJJDP) will support Children’s Advocacy Centers (CAC) in rural Alaska’s major hubs, which provide wrap-around services, forensic interviews, and medical exams for child victims. OVC and OJJDP have identified up to $14 million in available funding for CACs in Alaska and the lower 48 states.
“In May, when I visited Alaska, I witnessed firsthand the complex, unique, and dire law enforcement challenges the State of Alaska and its remote Alaska Native communities are facing,” said Attorney General Barr. “With this emergency declaration, I am directing resources where they are needed most and needed immediately, to support the local law enforcement response in Alaska Native communities, whose people are dealing with extremely high rates of violence. Today, I am also directing each component and law enforcement agency of the Justice Department to submit plans within the next 30 days to further support federal, state, and tribal public safety efforts in rural Alaska. Lives depend on it, and we are committed to seeing a change in this unacceptable, daily reality for Alaska Native people.”
The Attorney General also announced a Rural Alaska Violent Crime Reduction Working Group, led by U.S. Attorney Bryan Schroder. The Working Group will look for ways to build the capacity of federal, state, and tribal law enforcement in rural Alaska and its work will have a particular emphasis on crimes of domestic violence and crimes against children. BJA is also making an additional $162,000 available to the U.S. Attorney’s Office to establish an additional Project Safe Neighborhoods (PSN) target site encompassing rural Alaska.
Alaska is home to some of the most remote communities in all of America. This geographic isolation contributes to law enforcement problems not seen anywhere else in our Nation. According to one estimate, one-third of Alaskan villages have no local law enforcement personnel at all. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. The lack of law enforcement resources results in a high violent crime rate, especially in Alaska Native communities.
Additional near-term measures by Department of Justice components include:
- The Office on Violence Against Women (OVW) will issue an award for sexual assault training and technical assistance in Alaska, including training community health aides in Alaska Native villages to perform sexual assault forensic exams and training for victim advocates. The project will include community sexual assault training, which will address coordinated responses to sexual assault across the community. This award will also train village-based victim advocates to accompany victims throughout the process, including prosecution, as appropriate.
- OVC is extending their application deadline for the Crime Victim Fund tribal set-aside solicitation (part of the $167 million available to tribes for victim services in FY 2019) to Aug. 16, 2019. This money may be used to fund direct services and advocacy, domestic violence shelters, rape crisis services, children advocacy programs, and elder abuse programs.
- BJA is extending their application deadline to July 15, 2019, for programs that target mental health/drug addiction, reentry initiatives, and community crime reduction.
- The COPS Office has two grant programs that it will reopen to afford Alaska the opportunity to apply:
- The Anti-Methamphetamine Program (CAMP) is open to state law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures.
- The COPS Anti-Heroin Task Force (AHTF) Program is open to state law enforcement agencies with multi-jurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions.
As the Department develops a comprehensive response to public safety issues in Alaska, Attorney General Barr expressed his commitment to working closely with American Indian and Alaska Native leadership as well as Congressional and state representatives to ensure Departmental solutions are practical and effective. The Attorney General will also travel to an Indian country location in the lower 48 states in the coming months, recognizing the significant public safety challenges that persist for many Native American communities.
“I want to be sure that the support this Department offers to Alaska Native communities will support solutions identified by the communities themselves,” said Attorney General Barr. “The only way for us to provide effective support is to work in partnership with others. This is true in Alaska and throughout Indian country.”
In a memo to all Justice Department component leaders, the Attorney General directed every component and law enforcement agency to submit a plan in the next 30 days to further support these efforts in Alaska, focusing in particular on the following goals:
- Increasing the federal, state, local, and tribal law enforcement presence in Alaska and ways to provide more prosecutorial resources for the criminal cases that will result from increased law enforcement presence;
- Reducing violent crime, especially gun violence;
- Decreasing sexual assaults of women and children;
- Providing better immediate and long-term services to victims of crime;
- Cutting off supplies of methamphetamines, opioids, and other illegal drugs;
- Addressing the problem of alcohol abuse and its role in violent crime and crimes against children;
- Increasing addiction prevention and treatment services to those struggling with addictions to drugs and alcohol;
- Providing adequate detention facilities in remote locations; and,
- Incorporating technology into law enforcement efforts to improve response times and decrease travel costs for victims and witnesses.
Atlantic Beach Man Pleads Guilty to Failing to Register as A Convicted Sex OffenderRead the Press Release
Jacksonville, Florida – Jimmie Dwight Whitfield (43, Atlantic Beach) has pleaded guilty to failing to register as a sex offender after absconding from Georgia and establishing residence in Florida. He faces up to 10 years in federal prison and a $250,000 fine. His sentencing hearing is scheduled for October 1, 2019.
According to court documents, in 1995, Whitfield was convicted of committing a sex offense against a child in Jacksonville. In 2006, he was convicted of two sex offenses in Valdosta, Georgia. Following his release from prison, Whitfield resided at a motel in Valdosta while serving a term of supervised probation. In March 2018, he cut off his ankle monitor, fled to Florida, and established a residence in Atlantic Beach. Whitfield failed to register as a sex offender in Florida as required by federal and state law. On October 25, 2018, he was arrested at his home in Atlantic Beach for violating his probation. During an interview, Whitfield admitted that he had he cut off his ankle monitor and that he knew he was not allowed to leave Georgia without permission.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the United States Marshals Service, the Lowndes County (Georgia) Sheriff’s Office, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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.
Armed Drug Dealer Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – A Temple Hills man was sentenced today to 15 years in prison for his role in a cocaine distribution conspiracy and possession of a firearm in furtherance of a drug trafficking crime.
“Armed drug and opioid dealers represent a toxic and deadly double threat,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “They might be targeting the people of the Eastern District of Virginia, but we are targeting them and we will hold those apprehended and prosecuted to the fullest extent of the law.”
According to court documents, Roger Vincent, 42, conspired with others to distribute cocaine and heroin in the Washington D.C. metropolitan area. While residing in Maryland, Vincent maintained a “stash” location in Washington, D.C., where law enforcement recovered cocaine, heroin, drug paraphernalia and a handgun that had been modified to fire fully automatically. Months later, Vincent negotiated the purchase of 10 kilograms of cocaine. Vincent was arrested in October 2018, after attempting to purchasing two kilograms of cocaine, which he intended to sell to generate the funds to purchase additional kilograms of cocaine. Upon his arrest, law enforcement recovered two firearms hidden in Vincent’s vehicle, including an AK-style pistol.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Michael Ben’Ary and Special Assistant U.S. Attorney and Virginia Assistant Attorney General Lena Munasifi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-440.
Armed Carjacker Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Mouhamed Camara, age 29, of Reisterstown, Maryland to 10 years in federal prison, followed by five years of supervised release for Carjacking, and Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to Camara’s plea agreement, on January 9, 2018, the victim had started her 2010 Toyota Corolla to warm the engine outside of her home in Reisterstown, Maryland. She was scraping ice off of the windows when she spotted Camara on the other side of the street. When she turned around, Camara pointed a gun in her face, but did not say a word. The victim ran for safety. Camara entered the victim’s car, which contained her purse and cellphone, and drove away.
Baltimore County Police Officers later located the vehicle in the area of an apartment complex in Reisterstown, Maryland. Detectives placed a GPS tracker on the carjacked vehicle to track its movements. A short time later, the vehicle was observed traveling towards Hanover Pike and onto I-795 South. Detectives followed the vehicle onto I-695 where they stopped the vehicle. Camara was the operator and sole occupant of the vehicle.
Detectives obtained a search warrant for Camara’s cellphone. A search of the cellphone revealed a photo of a black semi-automatic handgun that was consistent with the description of the firearm provided by the victim. There was also a photo of the defendant’s girlfriend stamped with a geolocation near a residence in Reisterstown, Maryland, taken on January 8, 2018, the day prior to the carjacking.
On January 10, 2018, detectives went to the residence and found Camara’s girlfriend and another male exiting the residence. Detectives approached and spoke with them. Camara’s girlfriend indicated that she and Camara had been living at the residence and had a black backpack inside the residence.
Detectives obtained a search warrant for the residence and recovered a loaded handgun, along with a black backpack, and some clothing belonging to Camara. The firearm seized matched the firearm seen in the photo on Camara’s phone.
United States Attorney Robert K. Hur commended the FBI's Baltimore Field Office and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney John Sippel, who is prosecuting the case.
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Attorney General William P. Barr Announces Emergency Funding to Address Public Safety Crisis in Rural AlaskaRead the Press Release
WASHINGTON – Attorney General William P. Barr declared a law enforcement emergency in rural Alaska under the Emergency Federal Law Enforcement Assistance Program today, making $6 million immediately available to the state of Alaska for critical law enforcement needs of Alaska Native villages.
Recognizing that Alaska has the highest per capita crime rate in the country and the unique circumstances of Alaska’s geographical and jurisdictional landscape, the Attorney General authorized additional funding and several long-term measures to support village public safety and victim services.
As the Department develops a comprehensive response to public safety issues in Alaska, Attorney General Barr expressed his commitment to working closely with American Indian and Alaska Native leadership as well as Congressional and state representatives to ensure Departmental solutions are practical and effective. The Attorney General will also travel to an Indian country location in the lower 48 states in the coming months, recognizing the significant public safety challenges that persist for many Native American communities.
“I want to be sure that the support this Department offers to Alaska Native communities will support solutions identified by the communities themselves,” said Attorney General Barr. “The only way for us to provide effective support is to work in partnership with others. This is true in Alaska and throughout Indian country.”
The $6 million in emergency funding from the Office of Justice Program’s Bureau of Justice Assistance (OJP-BJA) will go toward hiring, equipping, and training Village Public Safety Officers (VPSOs), Village Police Officers (VPOs), and Tribal Police Officers (TPOs) working in rural Alaska, as well as for mobile detention facilities.
In addition, the Department of Justice Office on Community Oriented Policing Services (COPS) will award $4.5 million in funding for 20 officer positions, along with equipment and training, to Alaska Native grantees by the end of July.
The Office for Victims of Crime (OVC) and the Office on Juvenile Justice and Delinquency Prevention (OJJDP) will support Children’s Advocacy Centers (CAC) in rural Alaska’s major hubs, which provide wrap-around services, forensic interviews, and medical exams for child victims. OVC and OJJDP have identified up to $14 million in available funding for CACs in Alaska and the lower 48 states.
“In May, when I visited Alaska, I witnessed firsthand the complex, unique, and dire law enforcement challenges the State of Alaska and its remote Alaska Native communities are facing,” said Attorney General Barr. “With this emergency declaration, I am directing resources where they are needed most and needed immediately, to support the local law enforcement response in Alaska Native communities, whose people are dealing with extremely high rates of violence. Today, I am also directing each component and law enforcement agency of the Justice Department to submit plans within the next 30 days to further support federal, state, and tribal public safety efforts in rural Alaska. Lives depend on it, and we are committed to seeing a change in this unacceptable, daily reality for Alaska Native people.”
The Attorney General also announced a Rural Alaska Violent Crime Reduction Working Group, led by U.S. Attorney Bryan Schroder. The Working Group will look for ways to build the capacity of federal, state, and tribal law enforcement in rural Alaska and its work will have a particular emphasis on crimes of domestic violence and crimes against children. BJA is also making an additional $162,000 available to the U.S. Attorney’s Office to establish an additional Project Safe Neighborhoods (PSN) target site encompassing rural Alaska.
Alaska is home to some of the most remote communities in all of America. This geographic isolation contributes to law enforcement problems not seen anywhere else in our Nation. According to one estimate, one-third of Alaskan villages have no local law enforcement personnel at all. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. The lack of law enforcement resources results in a high violent crime rate, especially in Alaska Native communities.
Additional near-term measures by Department of Justice components include:
- The Office on Violence Against Women (OVW) will issue an award for sexual assault training and technical assistance in Alaska, including training community health aides in Alaska Native villages to perform sexual assault forensic exams and training for victim advocates. The project will include community sexual assault training, which will address coordinated responses to sexual assault across the community. This award will also train village-based victim advocates to accompany victims throughout the process, including prosecution, as appropriate.
- OVC is extending their application deadline for the Crime Victim Fund tribal set-aside solicitation (part of the $167 million available to tribes for victim services in FY 2019) to Aug. 16, 2019. This money may be used to fund direct services and advocacy, domestic violence shelters, rape crisis services, children advocacy programs, and elder abuse programs.
- BJA is extending their application deadline to July 15, 2019, for programs that target mental health/drug addiction, reentry initiatives, and community crime reduction.
- The COPS Office has two grant programs that it will reopen to afford Alaska the opportunity to apply:
- The Anti-Methamphetamine Program (CAMP) is open to state law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures.
- The COPS Anti-Heroin Task Force (AHTF) Program is open to state law enforcement agencies with multi-jurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions.
As the Department develops a comprehensive response to public safety issues in Alaska, Attorney General Barr expressed his commitment to working closely with American Indian and Alaska Native leadership as well as Congressional and state representatives to ensure Departmental solutions are practical and effective. The Attorney General will also travel to an Indian country location in the lower 48 states in the coming months, recognizing the significant public safety challenges that persist for many Native American communities.
“I want to be sure that the support this Department offers to Alaska Native communities will support solutions identified by the communities themselves,” said Attorney General Barr. “The only way for us to provide effective support is to work in partnership with others. This is true in Alaska and throughout Indian country.”
In a memo to all Justice Department component leaders, the Attorney General directed every component and law enforcement agency to submit a plan in the next 30 days to further support these efforts in Alaska, focusing in particular on the following goals:
- Increasing the federal, state, local, and tribal law enforcement presence in Alaska and ways to provide more prosecutorial resources for the criminal cases that will result from increased law enforcement presence;
- Reducing violent crime, especially gun violence;
- Decreasing sexual assaults of women and children;
- Providing better immediate and long-term services to victims of crime;
- Cutting off supplies of methamphetamines, opioids, and other illegal drugs;
- Addressing the problem of alcohol abuse and its role in violent crime and crimes against children;
- Increasing addiction prevention and treatment services to those struggling with addictions to drugs and alcohol;
- Providing adequate detention facilities in remote locations; and,
- Incorporating technology into law enforcement efforts to improve response times and decrease travel costs for victims and witnesses.
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Thursday 27 June 2019
“Goodie Bag” Doctor Charged with Health Care Fraud and Oxycodone DistributionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Andrew M. Berkowitz, M.D., 60, of Huntington Valley, PA, was charged by Indictment with 19 counts of health care fraud, and 23 counts of distributing oxycodone outside the course of professional practice and without a legitimate medical purpose.
According to the Indictment, Berkowitz operated a medical practice in Philadelphia under the name ‘A+ Pain Management’, and through this practice Berkowitz fraudulently billed insurers for medically unnecessary physical therapy, acupuncture, chiropractic adjustments, and prescriptions drugs – and sometimes for treatments not provided at all.
Regardless of their individual complaint, at every visit A+ patients received a “goodie bag” which was a tote bag filled with prescription drugs for which Berkowitz submitted pharmacy claims through his company, Bucks Philadelphia Medical Care Group. The “goodie bags” typically included a combination of drugs such as Topical Analgesics, such as Relyyt and/or Lidocaine; Muscle Relaxers, such as Chloroxazon and/or Cyclobenzaprine; Anti-Inflammatories, such as Celecoxib and/or Nalfon; and Schedule IV controlled substances, such as Tramadol for pain; and/or Eszopiclone and Quazepam for insomnia and anxiety. Berkowitz obtained payments from insurers of more than $4,000 for each bag by falsely asserting that the drugs were for the benefit of the patient when, in reality, Berkowitz was the real beneficiary.
The Indictment also alleges that Berkowitz would prescribe Oxycodone to “pill-seeking” patients in exchange for their tacit approval that he would submit excessive claims to the patients’ insurers for the “goodie bag” and other medically unnecessary services. For 2015 through 2018, Berkowitz obtained an estimated $3.2 million in fraudulent proceeds from his “goodie bag” scheme.
In addition to the criminal charges, the Affirmative Civil Enforcement (ACE) Strike Force of the U.S. Attorney’s Office also filed a civil suit for an injunction to stop any future healthcare fraud and to freeze much of the defendant’s assets pending the criminal and civil investigations. The court granted the government’s request and entered a temporary restraining order against the defendants pending additional proceedings.
“The U.S. Attorney's Office is committed to bringing all of our enforcement tools to bear against healthcare fraud and drug diversion,” said U.S. Attorney McSwain. “Today's case is the latest example of our Criminal Division working in tandem with our ACE Strike Force to pursue fraud and diversion that allegedly put dangerous and addictive pills onto the street in the midst of the ongoing opioid epidemic.”
“Again and again, we're seeing these doctors with dollar signs in their eyes, willing to abandon all pretense of professional ethics,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “As alleged, Berkowitz made millions by diverting dangerous drugs to anyone who wanted them, with Medicare — and ultimately, American taxpayers — picking up the tab. The FBI, with the Philadelphia Police and our federal partners are doggedly working to put medical professionals engaged in this kind of fraud out of business.”
If convicted, the defendant faces a maximum possible sentence of 660 years in prison.
The case was investigated by the Federal Bureau of Investigation; the Philadelphia Police Department, Health and Human Services – Office of Inspector General, Office of Personnel Management – Office of Inspector General, and Department of Labor – Office of Inspector General, and is being prosecuted by Assistant United States Attorney M. Beth Leahy. The civil action is being handled by Assistant United States Attorney Anthony Scicchitano.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wisconsin Dentist Indicted for Tax EvasionRead the Press Release
A federal grand jury in Madison, Wisconsin, indicted a La Crosse, Wisconsin, dentist yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott C. Blader for the Western District of Wisconsin.
According to the indictment, Frederick G. Kriemelmeyer operated a dental practice in La Crosse, Wisconsin. In 2007, Kriemelmeyer was ordered by the United States District Court for the Western District of Wisconsin to pay $135,337 to the Internal Revenue Service (IRS) for unpaid individual income taxes. By December 2012, the IRS had assessed Kriemelmeyer more than $450,000 in taxes, interest and penalties. Beginning in approximately 2011, Kriemelmeyer allegedly took a number of actions to evade payment of this assessment. The indictment also charges that for the years 2013 through 2015 Kriemelmeyer failed to file tax returns and attempted to evade the taxes due on income from his dental practice. Kriemelmeyer allegedly sought to conceal his income from the IRS, by among other things, directing his patients to pay in cash or with personal checks that left the payee line blank and by paying his business and personal expenses with cash and third-party checks.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Kriemelmeyer faces a statutory maximum sentence of five years in prison for each of the tax evasion counts.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Blader commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Elizabeth Altman and Trial Attorney Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Waterbury Man Sentenced to 33 Months in Federal Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANGEL CRUZ, 44, of Waterbury, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, Luis “Gordo” Cirino, coordinated the shipment of multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico to various locations in Connecticut. Cirino, Cruz and others then distributed the drug in central Connecticut, and also in northeastern Pennsylvania. Investigators seized approximately 13 kilograms of cocaine during the investigation.
On October 18, 2017, a grand jury in New Haven returned an indictment charging Cirino, Cruz and six associates with cocaine trafficking offenses.
Cruz was arrested on October 25, 2017. On January 24, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine.
Cirino pleaded guilty and, on April 29, 2019, was sentenced to 135 months of imprisonment.
This matter has been investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Verona Man Charged with Federal Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA – One former resident of Verona, PA, 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 two-count superseding indictment, returned on June 25, named Richard Anthony Burke, 29, as the sole defendant.
According to the superseding indictment, on November 12, 2016, Burke possessed with intent to distribute a quantity of fentanyl. On February 3, 2017, Burke, a convicted felon, was also in possession of a firearm. As a convicted felon, Burke is prohibited by federal law from possessing a firearm.
The law provides for a maximum total sentence of not more than 40 years’ imprisonment and a fine of $2,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the criminal history of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Wilkinsburg 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.
U.S. Postal Service Employee charged with EmbezzlementRead the Press Release
BOSTON – A U.S. Postal Service (USPS) employee was arrested today and charged with embezzling over $20,000 in payments from customers for money orders and stamps.
Austin Correia, 22, of New Bedford, was indicted on one count of embezzlement and theft of public money, property or records. Correia will appear later today in federal court in Boston.
According to the indictment, Correia began working for USPS at the end of 2017 as a Sales & Service Distribution Associate at both the Mount Pleasant and North Street Post Offices in New Bedford. In this role, Correia had the ability to issue foreign and domestic postal money orders and sell stamps to customers. Correia engaged in a scheme in which he received a cash payment from customers to purchase stamps or money orders, but voided out the valid transactions to make it appear as if they did not occur. Correia provided the customer with the USPS product, but took the cash payment for his own personal use either by pocketing the money or by purchasing gift cards sold at the Post Office. It is alleged that Correia’s scheme cost the USPS over $20,000.
The charging statute provides a sentence of no greater than 10 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney's Office to Join FBI, Local Law Enforcement for House of Worship Safety SeminarRead the Press Release
PORTLAND—U.S. Attorney Billy J. Williams announced today that the U.S. Attorney’s Office will join the FBI and other Portland area law enforcement agencies to host a safety and security seminar for faith communities.
Leaders and subject matter experts from the U.S. Attorney’s Office, the FBI, Oregon State Police, Portland Police Bureau and the Multnomah, Clackamas and Washington County Sheriffs’ Offices will jointly present information designed to support and update existing house of worship security protocols and preparedness measures.
All senior faith leaders and congregation security personnel in Multnomah, Clackamas and Washington counties are encouraged to attend. The training will include a robust question and answer period.
Please note: this training is being offered for information and preparedness purposes only and is not responsive to any active or known threats to area congregations.
WHAT: Safety Seminar for Faith Communities
WHEN: Sunday, June 30, 2019 from 3:00-6:00pm PDT
WHERE: Congregation Neveh Shalom—2900 SW Peaceful Lane, Portland, Oregon
This training is free and designed for senior faith leaders and congregation security personnel.
A news conference featuring senior leaders from OneCOP and participating law enforcement agencies will be held on Thursday, June 27, 2019 at 12:30 p.m. on the 15th floor of the Justice Center (Chief's Office Conference Room). Media can arrive at 12:00 p.m. for set-up and a representative will meet interested media in the lobby to assist with entry.
U.S. Attorney to Host Annual Youth Summit on June 28 at Catholic UniversityRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia teams up with our local and federal law enforcement partners and community-based organizations to host the Ninth Annual “Breaking the Silence on Youth Violence Youth Summit,” on Friday, June 28, 2019, at The Catholic University of America in the Hartke Theater.
The free Summit will focus on gun violence and drug prevention and feature dynamic speakers, entertainment, prizes, invaluable information and resources.
For the past eight years, the U.S. Attorney’s Office has collaborated with its partners to host the Youth Summit. Past Summits have included sessions that highlight the causes and consequences of youth violence, challenge youth participants to make better decisions, and emphasize the importance of cooperating with law enforcement. The breakout sessions focus on public safety issues facing our youth, such as teen domestic violence, heroin and opiate abuse, and human trafficking. The Summits have concluded with an educational entertainment segment to reinforce the positive messages of the Youth Summit.
The Summits have also included a youth informational fair in which numerous non-profits provide information on youth development programs, mentoring programs, and educational youth activities. More than 500 youths participated in the event last year, and thousands have participated in the activities since the first event in 2011.
The ninth annual “Breaking the Silence on Youth Violence Summit” will be held from 9:00 a.m. to 3:00 p.m., at the Catholic University of America in the Hartke Theater at 3801 Harewood Road, NE Washington, D.C. 200017. All youth between the ages of 8-18 are welcome.
The Summit is a part of the Department of Justice’s Project Safe Neighborhood Program, a nationwide effort to reduce violent crime.
This year’s partners include Mayor Marion S. Barry Summer Youth Employment Program, East of the River Family Collaborative, Hillcrest Children Family Center, the Metropolitan Police Department, Collaborative Solutions for Communities, the D.C. Department of Parks and Recreation, D.C. Department of Behavioral Health, Kids Eat Free, D.C. Prevention Centers, Court Services and Offender Supervision Agency, and a Foundation for a Drug-Free World.
For more information, contact Executive Assistant U.S. Attorney for External Affairs, Wendy Pohlhaus (202)252-6930 or [email protected].
Two Romanian Nationals Charged with Bank Fraud and Identity Theft OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Costel Aparaschivei, age 35, a Romanian national, was indicted by a federal grand jury on June 25, 2019, for conspiring to commit and committing bank fraud, and with aggravated identity theft. In a related case, Daniel Gologan, age 29, also a Romanian national, was charged in a criminal information on June 26, 2019, for conspiring to commit bank fraud and aggravated identity theft.
According to United States Attorney David J. Freed, the indictment and information charge Aparaschivei and Gologan with conspiring to commit bank fraud between October 6, 2018 and October 21, 2018. Aparaschivei was charged with six counts of bank fraud during that time period, and two counts of aggravated identity. Gologan also was charged with a single count of aggravated identity theft.
The indictment and information allege that the defendants obtained counterfeit debit cards bearing stolen account numbers and PINs in New York, and transported them to South Abington, Pennsylvania. In Pennsylvania, the defendants used the counterfeit debit cards at Penn East Federal Credit Union and attempted to withdraw approximately $140,360. The defendants successfully withdrew $66,510.
The matter was investigated by the United States Secret Service and by the South Abington Township Police Department. Assistant United States Attorney Phillip J. Caraballo is prosecuting the cases.
Indictments and informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the most serious charges are up to 30 years of imprisonment. The aggravated identity theft charges carry mandatory, consecutive two-year terms of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two New Jersey Men Sentenced in Manhattan Federal Court for Scheme to Steal over $2 Million in Stock Certificates from Deceased Manhattan WomanRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ROBERT MERLO was sentenced today to 42 months in prison and STEPHEN DECKER was sentenced on June 12, 2019, to 57 months in prison for participating in a scheme to steal more than $2 million in stock certificates from the apartment of a deceased Manhattan woman, open a brokerage account in her name in order to liquidate the stocks, and then use those stolen assets to attempt to purchase over $2 million worth of gold coins. MERLO was convicted of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft after a four-day trial in March 2019. DECKER pled guilty to the same charges in January 2019. The sentence was imposed by U.S. District Judge Lewis A. Kaplan.
U.S. Attorney Geoffrey S. Berman said: “Robert Merlo and Stephen Decker engaged in a conspiracy to steal stock certificates from a deceased woman, liquidate them, and convert the proceeds for themselves. Their conduct was the financial equivalent of grave-robbing, and the sentences they received reflect the seriousness of their crimes.”
As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:
From approximately March 2016 to February 2017, MERLO and DECKER engaged in a scheme with others known and unknown designed to steal over $2 million from a deceased Manhattan woman (the “Victim”). As part of the scheme, DECKER and another co-conspirator, who both worked in the Victim’s building, stole stock certificates valued at over $2 million from the Victim’s Manhattan apartment after the Victim’s death. DECKER approached MERLO, a New Jersey-based insurance agent and DECKER’s longtime friend, to find a way to monetize the stock certificates. In August 2016, MERLO and DECKER agreed with others to make false representations to a financial institution (“Company-1”) in order to open a brokerage account (the “Account”) in the Victim’s name, deposit the stolen stock certificates into the Account, and sell the shares in the brokerage account, resulting in a cash balance of over $2 million. MERLO agreed to help launder the cash balance in the brokerage account, approaching several individuals to carry out his plan. MERLO, DECKER, and their co-conspirators then attempted to purchase $2 million in gold coins using the assets in the Account. MERLO, DECKER, and the other co-conspirators met several times over the course of months and communicated using prepaid or “burner” phones regarding the fraudulent scheme.
* * *
Judge Kaplan sentenced MERLO, 55, of Secaucus, New Jersey, to a mandatory minimum sentence of two years in prison on the aggravated identity theft count and 18 months in prison on the remaining counts, to be served consecutively to the two-year term of imprisonment. In addition, Judge Kaplan ordered restitution in the amount of $75,000; the balance of the over $2 million in proceeds from the stolen stock certificates were previously recovered, as a result of the investigation by the Federal Bureau of Investigation “FBI”), and returned to the Victim’s estate.
Judge Kaplan sentenced DECKER, 61, of Secaucus, New Jersey, to a mandatory minimum sentence of two years in prison on the aggravated identity theft count and 33 months in prison on the remaining counts, to be served consecutively to the two-year term of imprisonment.
Mr. Berman praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Cecilia Vogel, Sarah Mortazavi, Dina McLeod, and Alexandra Rothman are in charge of the prosecution.
Two KC Men Indicted for $1 Million Conspiracy to Steal 1,400 Cell Phones in Dozens of BurglariesRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Missouri, men have been indicted by a federal grand jury for their roles in a $1 million conspiracy to steal more than 1,400 cell phones in dozens of commercial burglaries across five states.
Viktor Chernetskiy, 29, a naturalized citizen from Ukraine, and Bryan C. Kirkendoll II, 29, were charged in a five-count indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, June 26. The indictment replaces a criminal complaint that was filed on June 14. Chernetskiy remains in federal custody without bond; Kirkendoll was released on bond.
The federal indictment alleges that Chernetskiy and Kirkendoll participated in a conspiracy to steal electronic devices – primarily cell phones – from stores in Missouri, Kansas, Iowa, Illinois, and Oklahoma, then transport them across state lines in order to sell them.
According to the indictment, Chernetskiy and Kirkendoll committed 48 burglaries from Nov. 21, 2018, to June 14, 2019, in which they stole approximately 1,401 electronic devices (primarily cell phones) with a total financial loss of approximately $1,008,742. The indictment includes a list of burglaries and individual loss amounts for each store.
In each instance, the indictment says, the stores were burglarized after hours and the co-conspirators wore hooded sweatshirts, caps, and gloves to conceal their identity and limit the trace evidence left behind during the burglaries. They allegedly pried the doors open with a large screwdriver or crowbar; in many instances, they broke the glass windows out of the doors, and then went through the opening. Once inside, they allegedly looked for phones that were not secured within a safe or other secure location, and loaded those phones into a plastic bin, trash bag, or other bag. In some instances, the indictment says, they also cut retractable security cables from store demonstration phones and took those as well. There was at least one instance where it appeared that they tried (unsuccessfully) to pry open a safe.
In addition to the conspiracy, Chernetskiy and Kirkendoll are charged together in three counts of transporting stolen property across state lines and Chernetskiy is charged in a fourth count of transporting stolen property across state lines.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the Missouri State Highway Patrol and the FBI.
Two Former Venezuelan Officials Charged and Two Businessmen Plead Guilty in Connection with Venezuela Bribery SchemeRead the Press Release
A former Venezuelan government minister and a former officer at Venezuela’s state-owned and state-controlled electricity company, Corporación Eléctrica Nacional, S.A. (Corpoelec), were charged in an indictment returned today for their alleged roles in laundering the proceeds of violations of the Foreign Corrupt Practices Act (FCPA) in connection with their alleged receipt of bribes to award Corpoelec business to U.S.-based companies. Today’s indictment follows the guilty pleas of two businessmen, earlier this week, for conspiring to violate the FCPA in connection with the corrupt payment scheme at Corpoelec.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s Miami Field Division (DEA Miami) made the announcement.
Luis Alfredo Motta Dominguez (Motta), 60, and Eustiquio Jose Lugo Gomez (Lugo), 55, both of Venezuela, were charged in an eight-count indictment returned today in the Southern District of Florida with one count of conspiracy to commit money laundering and seven counts of money laundering. Until recently, Motta was the minister of electrical energy in Venezuela and the head of Corpoelec; Lugo was the procurement director at Corpoelec.
The indictment alleges that beginning in or around January 2016 and continuing through December 2018, Motta and Lugo conspired with others to launder the proceeds of an illegal bribery scheme to and from bank accounts located in southern Florida. According to the indictment, Motta and Lugo awarded three Florida-based companies more than $60 million in procurement contracts with Corpoelec in exchange for bribes paid to them or for their benefit. The indictment further alleges that the unlawful activity was a bribery scheme that violated the FCPA and involved bribery offenses against Venezuela. According to the charges, a substantial portion of the proceeds from the corrupt contracts was laundered through U.S. financial institutions using bank accounts located in the Southern District of Florida.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On June 24, 2019, Jesus Ramon Veroes (Veroes), 69, of Venezuela, and Luis Alberto Chacin Haddad (Chacin), 54, of Miami, Florida, each pleaded guilty before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to violate various provisions of the FCPA. Veroes and Chacin are scheduled to be sentenced by Judge Altonaga on Sept. 4, 2019.
According to admissions made in connection with their guilty pleas, Veroes and Chacin agreed with each other and with other co-conspirators to make corrupt payments to foreign officials at Corpoelec in exchange for the award of procurement contracts to Florida-based companies. Under the terms of their plea agreements, Veroes and Chacin will each be required to forfeit at least $5.5 million in profits from the corruptly obtained contracts, as well as real property in the Miami area.
This case was investigated by DEA Miami with assistance from the IRS Criminal Investigations Miami Field Office and the FBI’s Miami Field Office. Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section, Trial Attorney Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Two Former Venezuelan Officials Charged and Two Businessmen Plead Guilty in Connection with Venezuela Bribery SchemeRead the Press Release
A former Venezuelan government minister and a former officer at Venezuela’s state-owned and state-controlled electricity company, Corporación Eléctrica Nacional, S.A. (Corpoelec), were charged in an indictment returned today for their alleged roles in laundering the proceeds of violations of the Foreign Corrupt Practices Act (FCPA) in connection with their alleged receipt of bribes to award Corpoelec business to U.S.-based companies. Today’s indictment follows the guilty pleas of two businessmen, earlier this week, for conspiring to violate the FCPA in connection with the corrupt payment scheme at Corpoelec.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and Adolphus P. Wright, Special Agent in Charge of the Drug Enforcement Administration’s Miami Field Division (DEA Miami), made the announcement.
Luis Alfredo Motta Dominguez (Motta), 60, and Eustiquio Jose Lugo Gomez (Lugo), 55, both of Venezuela, were charged in an eight-count indictment returned today in the Southern District of Florida with one count of conspiracy to commit money laundering and seven counts of money laundering. Until recently, Motta was the minister of electrical energy in Venezuela and the head of Corpoelec; Lugo was the procurement director at Corpoelec.
The indictment alleges that beginning in or around January 2016 and continuing through December 2018, Motta and Lugo conspired with others to launder the proceeds of an illegal bribery scheme to and from bank accounts located in southern Florida. According to the indictment, Motta and Lugo awarded three Florida-based companies more than $60 million in procurement contracts with Corpoelec in exchange for bribes paid to them or for their benefit. The indictment further alleges that the unlawful activity was a bribery scheme that violated the FCPA and involved bribery offenses against Venezuela. According to the charges, a substantial portion of the proceeds from the corrupt contracts was laundered through U.S. financial institutions using bank accounts located in the Southern District of Florida.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On June 24, 2019, Jesus Ramon Veroes (Veroes), 69, of Venezuela, and Luis Alberto Chacin Haddad (Chacin), 54, of Miami, Florida, each pleaded guilty before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to violate various provisions of the FCPA. Veroes and Chacin are scheduled to be sentenced by Judge Altonaga on Sept. 4, 2019.
According to admissions made in connection with their guilty pleas, Veroes and Chacin agreed with each other and with other co-conspirators to make corrupt payments to foreign officials at Corpoelec in exchange for the award of procurement contracts to Florida-based companies. Under the terms of their plea agreements, Veroes and Chacin will each be required to forfeit at least $5.5 million in profits from the corruptly obtained contracts, as well as real property in the Miami area.
This case was investigated by DEA Miami with assistance from the IRS Criminal Investigations Miami Field Office and the FBI’s Miami Field Office. Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida, Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section, and Trial Attorney Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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 on http://pacer.flsd.uscourts.gov.
Two Former Residents of Dubois Plead Guilty to Mail TheftRead the Press Release
JOHNSTOWN, PA – Two residents of DuBois, PA, pleaded guilty in federal court to charges of conspiracy to commit mail theft and mail theft, United States Attorney Scott W. Brady announced today.
David E. Moore, 26, and Joshua J. Frantz, 26, each pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the Court was advised that from in or around February 2016 through in or around March 2016, cousins, Joshua J. Frantz and David E. Moore, Jr., agreed to and did steal mail from mail receptacles located at an apartment complex at 122 West Washington Avenue, in DuBois, PA. The court was further advised that on at least 11 occasions, either one or both of the defendants were observed on surveillance video and that more than 60 individuals had pieces of US mail stolen from their mail receptacles as a result of the mail theft conspiracy.
Judge Gibson scheduled sentencing for Oct. 22, 2019 at 10 a.m. for Frantz, and at 1 p.m. that same day for Moore. The law provides for a total sentence of 10 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Both defendants remain imprisoned pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the DuBois Police Department conducted the investigation that led to the prosecution of Moore and Frantz.
Two Defendants in College Admissions Case Plead GuiltyRead the Press Release
BOSTON – A university athletic coach and a former accountant pleaded guilty today in federal court in Boston in connection with the college admissions case.
Ali Khosroshahin, 49, of Fountain Valley, Calif., a former head coach of women’s soccer at the University of Southern California, pleaded guilty to conspiracy to commit racketeering. U.S. District Court Judge Indira Talwani scheduled sentencing for Oct. 25, 2019. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the federal Sentencing Guidelines, one year of supervised release, a fine, restitution and forfeiture. Khosroshahin is cooperating with the government’s investigation.
Steven Masera, 69, of Folsom, Calif., a former accountant and financial officer for the Edge College & Career Network and the Key Worldwide Foundation, pleaded guilty to conspiracy to commit racketeering. Judge Talwani scheduled sentencing for Oct. 22, 2019. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the federal Sentencing Guidelines, one year of supervised release, a fine, restitution and forfeiture. Masera is also cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit and Carol Head of Lelling’s Asset Recovery Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Additional Men Indicted in Connection with Attempted Robbery of Smithgall’s Pharmacy in LancasterRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Johnny Straining, 23, and Lamar Black, 29, both of Harrisburg, PA were charged by Indictment with attempted robbery which interferes with interstate commerce, and brandishing a firearm during a crime of violence. Black was also charged with possession of a firearm by a felon. The charges against the defendants stem from the October 23, 2018 attempted robbery of Smithgall’s Pharmacy in Lancaster, Pennsylvania. Two additional men – Brandon Galette and Andrew Garrett – were charged in February with federal crimes related to the same attempted robbery.
“Stemming the tide of violent crime in our communities is a top priority for my Office,” said U.S. Attorney McSwain. “People looking to make a quick buck by robbing convenience stores, pharmacies, and other businesses beware: this conduct is a federal crime, and if you are convicted, you will face stiff penalties under federal law.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, Straining and Black face a maximum possible sentence of life imprisonment, with a seven-year mandatory minimum, which will be served consecutive to any other sentence imposed. Both are also subject to financial penalties, including fines and special assessments.
The case was investigated by the Federal Bureau of Investigation and the Lancaster City Bureau of Police, and is being prosecuted by Assistant United States Attorney Tim Stengel.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Twenty-Two Defendants Charged in Takedown of Atlantic City Drug-Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Twenty-two people have been charged for their roles as members, associates, and suppliers of an Atlantic City, New Jersey-based drug-trafficking organization that distributed heroin throughout the area, U.S. Attorney Craig Carpenito announced today.
Nineteen defendants were arrested today, one defendant was in custody on previous state charges, and two defendants are not yet in custody. All of the defendants are charged by complaint with one count of conspiracy to distribute or possess with intent to distribute over one kilogram of heroin. The defendants arrested today are scheduled to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. (See chart below.)
“The defendants charged today have been flooding the streets of Atlantic City and surrounding towns with heroin, often with tragic results,” U.S. Attorney Carpenito said. “Numerous deaths and overdoses have been linked to the ‘brands’ pushed by these drug traffickers. With our law enforcement partners, we are working to get these drugs, and the organizations that distribute them, off the streets of Atlantic City.”
“From international terrorists to street level drug dealers, the FBI is committed to keeping you safe,” FBI Special Agent-in-Charge Gregory W. Ehrie said. “Today's operation should serve as a warning to those thinking of filling the void created by the arrests - we aren’t finished. Our agents are dedicated and persistent. We will continue our efforts to free the community of deadly drugs and drug dealers. We will continue on our mission to protect the public.”
"This is a great day for Atlantic City, and a great day for Atlantic County," Atlantic City Police Chief Henry White Jr. said. "The dismantling of an organization that has brought sorrow and anguish to so many families through the distribution of deadly narcotics is a win for the community. Together, with our federal, state and local partners, we have showed those that wish to invade and flood our neighborhoods with deadly drugs that it will not be tolerated. We will continue to fight on behalf of the men, women and children of our respective communities."
According to the documents filed in this case and statements made in court:
An authorized wiretap investigation revealed that from April of 2017 through June of 2019, the drug trafficking organization’s leader, Khalif Toombs, operated a massive drug distribution ring, utilizing multiple stash houses throughout Atlantic City and numerous drug couriers to re-distribute the heroin. Toombs and his associates coordinated their efforts through the use of phone calls, text messages, and social media. The investigation revealed that Toombs obtained his heroin from a supplier in Paterson, New Jersey, and used Atlantic City associates to make frequent trips to Paterson to obtain his resupply of heroin.
Through the course of the investigation, the FBI determined that Toombs and his associates were distributing multiple “stamps,” or brands, of heroin, including “AK-47,” “Apple,” “Fortnite,” “Rolex,” “Frank Lucas,” “Bentley,” “Pandora,” and “9 ½.” Between Jan. 1, 2017, and June 21, 2019, drugs with these stamps have accounted for 48 deaths and 84 non-fatal overdoses in New Jersey, according to the N.J. State Police Office of Drug Monitoring and Analysis.
The count of conspiracy to distribute or possess with intent to distribute more than one kilogram of heroin with which each defendant is charged is punishable by a minimum of 10 years in prison and a maximum of life in prison.
U.S. Attorney Carpenito credited special agents of the FBI’s Safe Streets South Jersey Violent Incident and Gang Task Force, Atlantic City Resident Agency, and FBI, Newark, under the direction of Special Agent in Charge Ehrie; officers of the Atlantic City Police Department, under the direction of Chief White; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Department, under the direction of Sheriff Eric Scheffler; and the Pleasantville Police Department, under the direction of Chief Sean Riggin, with the investigation leading to today’s charges. He also thanked the U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the N.J. State Police for their assistance.
The government is represented by Assistant U.S. Attorney Martha K. Nye of the U.S. Attorney’s Office in Camden.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
NAME
AGE
RESIDENCE
Khalif Toombs
29
Pleasantville, N.J.
Wilbert Toombs
63
Atlantic City
*Blaine Dorsey
54
Atlantic City
Dean Johnson
39
Atlantic City
Mayda Hernandez
50
Atlantic City
Joseph Aversa
37
Ventnor, N.J.
David Ramirez
23
Mays Landing, N.J.
James Blackwell
54
Atlantic City
Khalif Davis
33
Mays Landing
Wayne Burnside
28
Atlantic City
Jeremy Carll
47
Mays Landing
Sarah Taliaferro
26
Brigantine, N.J.
Philip Surace
32
Atlantic City
Valarie Lamar
59
Atlantic City
Karon Carey
35
Atlantic City
*Thomas Randall
25
Mays Landing.
Nasir Brown
26
Somers Point
Tieyesha Tucker
25
Atlantic City
Jamal Marshall
32
Atlantic City
**Quadir Stanley
30
Atlantic City
Tyjuan Demarest
39
Elmwood Park, N.J.
Terryn Kelsey
29
Atlantic City
*Denotes at large
**Denotes in state custodyToledo pastor Anthony Haynes sentenced to life in prison for sex trafficking of a minor; fourth person sent to prison as part of investigationRead the Press Release
A Toledo pastor was sentenced to life in prison for sex trafficking a minor and other crimes, U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Eric B. Smith said.
A jury in March convicted Anthony Haynes, 40, of conspiracy to engage in sex trafficking of a minor, sex trafficking, child exploitation and obstruction of a sex trafficking investigation.
Cordell Jenkins was sentenced to life in prison. Kenneth Butler was sentenced to more than 17 years in prison. Both pastors previously pleaded guilty to their roles in the sex trafficking conspiracy involving minors.
Haynes, Butler and Jenkins sexually assaulted a juvenile girl beginning in 2014 through 2017, according to court documents.
The girl was 14 when the conduct began and she was in the custody of Haynes. Some of this conduct took place at Greater Life Christian Center in Toledo, where Haynes was pastor at the time. Haynes used his cellular telephone to record these sexual assaults, according to trial testimony and court documents.
Haynes told her that if she said anything, it would ruin his family and his church, according to court documents.
Haynes also facilitated the victim being sexually exploited by other men, including Jenkins, according to trial testimony and court documents.
Jenkins repeatedly sexually exploited the minor at his home on Barrington Drive, at his office at Abundant Life Ministries and at a motel in Toledo. He paid her and referred to the payment as “hush money.” He often recorded these interactions with his cellular telephone, according to court documents.
Jenkins also caused another juvenile girl to engage in commercial sex acts in March 2017, according to court documents.
Butler also caused another juvenile girl to engage in commercial sex acts from 2015 through 2017, according to court documents.
A fourth defendant, Laura Lloyd-Jenkins, was sentenced to 21 months in federal prison after pleading guilty to one count making a false statement. She made false statements to law enforcement on April 12, 2017, about her knowledge of the sexual exploitation of a minor. Lloyd-Jenkins was the Lucas County Administrator and served on the board of Lucas County Children Services at the time of the crimes, according to court documents and statements.
“This defendant and his friends preyed upon a vulnerable child and used her for their own gratification,” U.S. Attorney Justin E. Herdman said. “This sentence reflects the depravity of the defendant’s conduct. We remain committed to stamping out human trafficking in all its forms.”
"This is a well-deserved sentence which reflects the gravity of the sex trafficking and child exploitation crimes committed by this defendant,” said FBI Special Agent in Charge Eric B. Smith. “The FBI is committed to investigating and holding accountable those engaged in these ruthless acts and will continue to work with our law enforcement partners to ensure justice is served for the victims."
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Alissa Sterling following an investigation by the FBI’s Northwest Ohio Violent Crimes Against Children Task Force. The Task Force is comprised of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, the Bureau of Criminal Investigation and Lucas County Sheriff’s Office.
Three Inland Empire Women Arrested on Charges of Fraudulently Obtaining Student Aid for ‘Students’ Who Never Attended SchoolRead the Press Release
RIVERSIDE, California – Three San Bernardino County women were arrested today on federal charges that allege a scheme in which they fraudulently collected nearly $1 million in federal student aid for 235 “students” – the vast majority of whom never attended any classes.
A 21-count indictment returned by a federal grand jury on June 5 charges the defendants with defrauding the United States Department of Education by falsely claiming the “students” would attend Fullerton College and other schools. Some of the applications for student aid were filed under the names of stolen identities and at least two were filed on behalf of inmates in California state prisons.
The three defendants arrested this morning are:
- Sparkle Shorale Nelson, 32, of Highland;
- Shykeena Monique Johnson, 31, a.k.a. “Shy,” of Apple Valley; and
- Jerrika Eldrena Lashay Johnson, 37, a.k.a. “Muffin,” “Big Sis,” and “Jerrika Carter,” of Apple Valley.
All three are scheduled to be arraigned this afternoon in United States District Court in Riverside.
According to the indictment, the women and unindicted co-conspirators obtained personal identifying information, including names and Social Security numbers, that the defendants used to file the Free Application for Federal Student Aid (FAFSA), a form completed by prospective and current university students to determine their eligibility for financial aid.
As a result of the applications filed in 2013 and 2014, the Department of Education approved financial aid for the “straw students.” After Fullerton College and other schools deducted student fees, the schools disbursed money to the “students” via debit cards that were mailed to the defendants and their co-conspirators, the indictment alleges.
In August 2014, according to the indictment, Nelson submitted a FAFSA form online to the Education Department that used the personal identifying information of a straw student who in fact was a state prisoner. In September 2014, Nelson allegedly activated a debit card in the prisoner’s name and subsequently used the debit card to make a $370 payment to her Southern California Edison account.
At least $1,089,856 in student aid funds were disbursed by the U.S. Department of Education to Fullerton College for the 235 straw students associated with this fraudulent scheme. The school then placed $977,792 on debit cards that were sent to the defendants and their associates.
All three defendants are charged with one count of conspiracy to commit mail fraud and wire fraud, four counts of mail fraud, and 11 counts of wire fraud. Nelson, Johnson and Carter each face additional counts of aggravated identity theft and financial aid fraud.
If convicted on all the charges in the indictment, all three defendants would face statutory maximum sentences of more than 300 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was investigated by the Department of Education Office of the Inspector General and the United States Postal Inspection Service.
This matter is being prosecuted by Assistant United States Attorney Sean D. Peterson of the Riverside Branch Office.
Three Individuals Charged with Drug Trafficking OffensesRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Bressi, age 47, of Danville, Pennsylvania, Terry Harris, age 45, of Philadelphia, Pennsylvania, and Damonico Henderson, age 54, of Elyria, Ohio, were indicted by a federal grand jury for drug trafficking charges.
According to United States Attorney David J. Freed, the indictment alleges that Bressi, Harris and Henderson conspired to manufacture, distribute and possess with the intent to distribute fentanyl, carfentanil, and other fentanyl analogue substances between 2015 and June 2019.
The matter was investigated by the Federal Bureau of Investigation (FBI) and the Pennsylvania State Police. Assistant United States Attorney Geoffrey W. MacArthur is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Charged with Distributing Heroin and Fentanyl in Rutland CountyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Brent Campbell, also known as “Marv” and “Slim,” 35, of Waterbury, CT, as well as Jeffrey Haynes, 37, and Marlana Gibeault, 46, both of Rutland County, VT appeared yesterday and today in United States District Court in Burlington, VT following their arrests on charges related to the distribution of heroin and fentanyl. Campbell and Haynes were also charged with engaging in a conspiracy to distribute heroin and cocaine base, and cocaine base distribution.
According to court documents, the Vermont Drug Task Force and the Federal Bureau of Investigation conducted an investigation into the distribution of heroin and cocaine base in the Rutland, Vermont area. The investigation used confidential informants under the supervision of the Vermont Drug Task Force to conduct purchases of controlled substances from Campbell, Haynes, and Gibeault. In the course of the investigation, law enforcement conducted five separate purchases of controlled substances.
On June 25, 2019, the Vermont Drug Task Force and the FBI arrested Campbell and executed a federal search warrant at storage unit in Rutland, Vermont. In the storage unit, law enforcement found approximately half a kilogram of cocaine.
Campbell appeared before United States Magistrate Judge John M. Conroy in Burlington on June 26, 2019 to answer charges of conspiracy to distribute heroin and cocaine base, and distribution of heroin, fentanyl, and cocaine base. Campbell was remanded to the custody of the U.S. Marshals Service.
On June 27, 2019, Haynes and Gibeault appeared before Judge Conroy. Haynes is charged with conspiracy to distribute heroin and cocaine base, and distribution of heroin, fentanyl, and cocaine base. Gibeault is charged with the distribution of heroin and fentanyl. Gibeault was released on conditions. A detention hearing for Haynes will be held on June 28, 2019.
The charges against Campbell, Haynes and Gibeault are merely accusations and the defendants are presumed innocent unless and until they are proven guilty.
In addition to the Vermont Drug Task Force and the FBI, members from the Rutland City Police and Vermont State Police-Rutland Barracks assisted with the arrest and search warrant.
Campbell is represented by Stephanie Greenlees, Esq. Haynes is represented by Richard C. Bothfeld, Esq. Gibeault is represented by Edward M. Kenney, Esq. Assistant U.S. Attorney Andrew C. Gilman represents the United States.
Suntrust Bank Employee Sentenced for Stealing Nearly $172,000 from A Bank CustomerRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Reginald Green II (36, Orlando) to 23 months in federal prison for theft and embezzlement of client funds by a bank employee. A jury had found Green guilty on December 6, 2018.
According to testimony and evidence presented at trial, between 2011 and 2018, Green, a SunTrust Bank employee, stole more than $171,000 from a bank customer. Green withdrew more funds then the bank client had authorized, he then directed the extra funds into several different bank accounts that he controlled. At different times during the scheme, Green took the stolen funds to pay down his own mortgage and auto loans. Upon discovering the theft, in April 2018, SunTrust immediately fired Green and reimbursed the bank customer for the stolen funds.
This case was investigated by the United States Postal Inspection Service and the United States Secret Service. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
Stroudsburg Woman Charged with Drug Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jennifer Annette Bush, age 44, of Stroudsburg, Pennsylvania, was indicted on June 25, 2019, by a federal grand jury for drug trafficking charges.
According to United States Attorney David J. Freed, the indictment alleges that Bush distributed and possessed with the intent to distribute both cocaine and heroin/fentanyl on diverse dates in late 2017, 2018 and early 2019.
The matter was investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police, and the Stroud Area Regional Police Department. Assistant United States Attorney Jeffery St John is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Stamford Drug Dealer Sentenced to 30 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARCUS MOORE, also known as “Sparks,” 41, of Stamford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing crack and powder cocaine.
According to court documents and statements made in court, in August and September 2018, investigators conducted five controlled purchases of crack cocaine from Moore. During the fifth controlled purchase, Moore distributed cocaine instead of crack.
On September 20, 2018, during an attempted sixth controlled purchase of crack, Moore sped away from law enforcement at a high rate of speed. Moore eventually crashed his vehicle into a law enforcement vehicle and was placed under arrest. A subsequent search of Moore’s residence revealed quantities of cocaine and crack.
On February 12, 2019, Moore pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).
Moore’s criminal history includes state convictions for narcotics, firearm, assault, robbery and escape offenses.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Stamford Police Department. The Task Force includes personnel from the DEA, Connecticut State Police and Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments. The case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Springfield Man Charged with Sex TraffickingRead the Press Release
BOSTON - A Springfield man was charged in federal court in Springfield today with sex trafficking.
William Coleman, 48, was charged with one count of conspiracy to commit sex trafficking and nine counts of sex trafficking. Coleman was arrested on Dec. 23, 2018, and has been in custody since.
According to court documents, William Coleman ran a prostitution business and used violence, as well as the drug addictions – primarily heroin - of female victims to coerce them into engaging in commercial sex acts with paying customers. The women were typically required to turn over all of their earnings to Coleman, while being subject to his tight control over their daily lives. Most of the women were not allowed to keep any of the money they earned, and they were only allowed to obtain the drugs they were addicted to from Coleman. Victims who did not engage in prostitution for Coleman, or who did not follow his rules, were subjected to physical assaults, sexual violence and the withholding of drugs. Coleman allegedly used websites to post prostitution advertisements for the victims working for him. His business covered the greater Springfield and Hartford areas, and other parts of Connecticut.
The maximum sentence for sex trafficking and conspiracy to commit sex trafficking is life in prison, five years of supervised release and a $250,000 fine. The Sex Trafficking statute also imposes a mandatory minimum sentence of 15 years for offenses committed by means of force, threats of force, fraud or coercion. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; and Acting Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sorrento Woman Sentenced to More Than Nine Years in Federal Prison for Credit Card and Identity Theft Scheme Resulting in over $812,000 in LossesRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Shannon Bentley (33, Sorrento) to nine years and three months in federal prison for credit card fraud and aggravated identity theft. The court also ordered restitution to be paid by the co-defendants, to the victims, in the amount of $812,990.53.
Bentley had pleaded guilty on January 22, 2019.
According to court documents and evidence presented at the hearing, from August 2014 through July 2018, Bentley obtained personal identifying information (“PII”) from victims, obtained fake credit card accounts and cards in the victims’ names or linked to their accounts, and used those credit cards to obtain goods, gift cards and cash at retail establishments and banks throughout Orlando and surrounding areas. Bentley was the leader of a broad group of conspirators that used sophisticated means to facilitate this fraud, and exploited the advanced age of their elderly victims to steal their identity, causing them to incur exorbitant fraudulent charges. The total amount of loss as a result of the scheme was estimated to be over $812,000, involving the compromise of hundreds of credit card accounts.
Co-conspirators Lenardra Griffin (30, Grand Island) and Christina Scott (35, Umatilla) have also pleaded guilty in connection with this scheme. They are scheduled to be sentenced in September 2019.
This case was investigated by the United States Postal Inspection Service and the Florida Department of Law Enforcement, with assistance from the Orange Count Sherriff’s Office and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness.
Shreveport man sentenced to 57 months in federal prison for possessing pistol at Monroe halfway houseRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Tommy Devereaux Warren, 40, of Shreveport, was sentenced Wednesday by U.S. District Judge Donald E. Walter to serve 57 months in federal prison and three years of supervised release following his incarceration, for possession of a firearm as a convicted felon. Judge Walter also sentenced Warren to serve an additional three months in prison for violation of his supervised release conditions.
According to information presented in court, Warren was a resident of the City of Faith Halfway house in Monroe and was serving a term of federal supervised release. As a resident of the halfway house, Warren was subject to searches of his property, which included a pickup truck he was allowed to drive and park on the property. Halfway house employees conducted a search of Warren’s vehicle on December 11, 2018 and found a pistol in a bag behind the driver’s seat. They called Monroe Police who seized a Raven Arms pistol, model: MP-25, .25-caliber pistol loaded with seven rounds of ammunition. Warren pleaded guilty to the current federal charge on March 21, 2019.
Tommy Warren has prior felony convictions including a 2007 conviction in the Western District of Louisiana for possession of a firearm by a felon. Under federal law, convicted felons are not allowed to possess firearms or ammunition.
The ATF and Monroe Police Department conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Seven Defendants Arrested for Distributing Heroin, Fentanyl and Cocaine Base Near Elementary School and in Public Housing in BrooklynRead the Press Release
Three indictments were unsealed yesterday in federal court in Brooklyn charging seven defendants with narcotics trafficking in the Bushwick neighborhood of Brooklyn. Jessie Smith, Kendall Johnson, also known as “Duke,” Tyrell Spellman, also known as “Rude Boy,” Saquan Warlick, also known as “SB,” Ruben Pabon, Byron Elder, also known as “Bezo,” and Adrian Mattei, also known as “Spanish D,” were arrested yesterday and arraigned before United States Magistrate Judge Lois Bloom.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the indictments.
“As alleged, Mattei sold heroin near a public elementary school in Bushwick, and the other defendants sold heroin laced with fentanyl and crack cocaine, inside the Bushwick Houses,” stated United States Attorney Donoghue. “Drug dealers destroy lives and communities and threaten our young people in countless ways. We are working tirelessly with our partners to hold accountable the criminals who contribute to the opioid epidemic and to ensure that the residents of our communities are free from the plague of drug trafficking.”
“The subjects arrested in this case are allegedly pushing the drugs that are killing hundreds of people daily in this country,” stated FBI Assistant Director-in Charge Sweeney. “They also exposed children going to and from school to a scary and violent world of criminal activity that would be difficult for an impressionable child to forget. The FBI Metro Safe Streets Task Force is doing all it can every day to remove these dealers from the communities most impacted by their illicit actions.”
“Crack cocaine, heroin and fentanyl have a well-known history of destroying lives and devastating communities,” stated NYPD Commissioner O’Neill. “That’s why the NYPD and its law enforcement partners work tirelessly to rid our city of these deadly drugs and prosecute those who sell them. I want to thank the investigators who worked on this case. It is their dedication and hard work that keeps our most vulnerable communities – in this case schools and public housing – safe.”
According to the indictments and court documents, between July 2018 and June 2019, Smith and his co-conspirators distributed heroin, fentanyl and crack, and between November 2018 and June 2019, Pabon and Elder distributed more than 28 grams of crack, in and around the Bushwick Houses. In August 2018, Adrian Mattei allegedly distributed heroin within 1,000 feet of Public School 257, an elementary school on Cook Street in Brooklyn. Smith is charged with distributing and possessing over 1,000 grams of heroin.
If convicted, the maximum sentences range from 40 years’ to life imprisonment.
The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia E. Moore and Nicholas J. Moscow are in charge of the prosecution.
The Defendants:
E.D.N.Y. Docket No. 19-CR-283 (WFK)
ADRIAN MATTEI (also known as “Spanish D”)
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-284 (RJD)
JESSIE SMITH
Age: 29
Brooklyn, New YorkKENDALL JOHNSON (also known as “Duke”)
Age: 32
Brooklyn, New YorkTYRELL SPELLMAN (also known as “Rude Boy”)
Age: 31
Brooklyn, New YorkSAQUAN WARLICK (also known as “SB”)
Age: 21
Brooklyn, New York
E.D.N.Y. Docket No. 19-CR-285 (PKC)
RUBEN PABON
Age: 28
Brooklyn, New YorkBYRON ELDER (also known as “Bezo”)
Age: 43
Brooklyn, New YorkSeven Charged in Connection with Credit Card-Skimming Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that seven people were charged today by Indictment with conspiracy, bank fraud and aggravated identity theft. Those charged are Hamlet Tantushyan, 35, of Glendale, CA; Verzh Movsisyan, 41, of Glendale, CA; Armen Sahakyan, 41, of Burbank, CA; David Daldumyan, 29, of Van Nuys, CA; Hrchya Gyulumyan, 39, of Sun Valley, CA; Gevush Gabrielyan, 27, of North Hollywood, CA; and Roman Gridjusko, 30, of Philadelphia, PA.
The sevenc defendants were charged for their alleged involvement in a scheme to steal money from victims’ bank accounts by making fraudulent ATM withdrawals and money order purchases in multiple states with stolen debit card numbers. The victims’ debit card numbers were obtained by members of the scheme through illegally installed devices on gas station pumps, known as ‘skimmers’, that captured the victims’ debit card numbers and Personal Identification Numbers when they used their debit cards at gas stations to purchase gas.
“As alleged in the Indictment, this was a devious fraud utilizing technology to take advantage of victims who didn’t even see it coming,” said U.S. Attorney McSwain. “I want to thank the many agents and investigators who worked tirelessly to uncover this scheme and assist my Office in bringing today’s Indictment.”
If convicted Hamlet Tantushyan faces a maximum possible sentence of 187 years imprisonment and a $7,250,000 fine, defendant Vrezh Movsisyam faces a possible maximum sentence of 177 years imprisonment and a $6,000,000 fine, defendant Roman Gridjuski faces a maximum possible sentence of 25 years imprisonment and a $750,000 fine, defendant Armen Sahakyan faces a maximum possible sentence of 155 years imprisonment and a $6,000,000 fine, defendant Davit Daldumyan faces a maximum possible sentence of 93 years imprisonment and a $4,250,000 fine, defendant Hrchyan Gyulumyan faces a maximum possible sentence of 79 years imprisonment and a $2,050,000 fine, and defendant Gevush Gabrielyan faces a possible maximum sentence of 71 years imprisonment and a $3,000,000 fine.
The case was investigated by the Federal Bureau of Investigation Philadelphia Organized Crime Task Force, the United States Postal Inspection Service, the United States Secret Service, the Newark, Delaware Police Department, the Borough of Wyomissing, Pennsylvania Police Department, and the Bensalem, Pennsylvania Township Police Department, and is being prosecuted by Assistant United States Attorney K.T. Newton.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Second Brother Sentenced in Multi-Million Dollar Insurance Fraud SchemeRead the Press Release
A former insurance agent of One Stop Insurance Agency was sentenced today to 101 months in prison, to be followed by three years of supervised release, and ordered to pay $20,056,054.67 in restitution for his role in defrauding two finance companies.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Stuart Alan Starr, 62, formerly of North Miami Beach, pled guilty in April 2019, to one count of conspiracy to commit wire fraud and five counts of wire fraud. In August 2018, his brother Glen Wayne Starr pled guilty to one count of conspiracy to commit wire fraud, and later in October 2018, received the same sentence as Stuart Alan Starr.
According to documents filed with the court and statements made in court during the plea and sentencing, Stuart Alan Starr and his brother, Glen Wayne Starr, from March 1990 to August 2015, operated One Stop Insurance Agency, Inc. The company was located at 17088 West Dixie Highway, North Miami Beach, Florida 33160. Both Starr brothers were licensed insurance agents with the state of Florida. One Stop was an approved agent of Progressive Insurance Company, Castle Point and Lloyds of London and authorized to write insurance policies underwritten by those carriers. One Stop specialized in offering liability and cargo insurance policies to independent truckers and small trucking companies for coverage of trucks, tractor-trailers and heavy equipment. Since the premiums for this type of coverage was often extremely expensive, when small trucking carriers could not afford the large lump sum payments for those premiums, One Stop would arrange to have the truckers or trucking companies finance the premiums through loans obtained from one of several finance companies with which One Stop worked. These finance companies included Pro Premium Finance Company, Standard Premium Finance Management, Corporation, and DAB Premium Finance, LLC.
Beginning in or around July 2014, One Stop, on a monthly basis, created and submitted, via email or facsimile, over 300 false and fraudulent application packages to Pro Premium and other finance companies for funding. The documents in the package were prepared using the names of real companies as well as fictitious companies, which were purportedly true customers of One Stop. Glen Wayne Starr and Stuart Alan Starr represented on the premium financing agreement that the purported customers had made the required down payment towards their premium when in fact they had not. Pro Premium would approve the financing for these loans and the Starr brothers, in keeping with their practice, would write checks to One Stop, deposit those checks into one or several of One Stop’s bank accounts then use those funds for personal gain.
In August 2015, both Starr brothers fled the country when the fraud was about to be discovered and were later apprehended in Colombia in 2018. The loss caused by the Starr brothers’ conduct forced Pro Premium, which had been in operation since 1988, to close its doors.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI. She thanked the Bureau of Insurance Fraud, Florida Department of Financial Services for their assistance. The case was prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
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 on http://pacer.flsd.uscourts.gov.
Scranton Woman Sentenced to A Year in Prison for Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Patricia Cook, age 61, of Scranton, was sentenced on June 26, 2019, by U.S. District Court Judge Robert D. Mariani to one year in prison and three years on supervised release for distributing heroin and cocaine.
According to United States Attorney David J. Freed, Cook previously pleaded guilty to distribution of heroin and distribution of cocaine. Cook distributed less than 10 grams of heroin and less than 50 grams of cocaine to another person on April 7, 2015.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, Pike County Detectives, and Scranton Police. Assistant U.S. Attorneys Jenny P. Roberts and Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Scottsdale Man Sentenced to Federal Prison for Sexual Abuse of a Minor and Domestic AssaultRead the Press Release
PHOENIX, Ariz. – This week, Andrew Orozco, of Scottsdale, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 97 months of imprisonment to be followed by a lifetime term of supervised release. Orozco had previously pleaded guilty to sexual abuse of a minor and assault of an intimate partner or dating partner by strangulation.
The act of sexual abuse to which Orozco pleaded guilty was one of a series of sexual acts Orozco perpetrated against the same minor victim. The minor victim was a family member of Orozco’s adult dating partner, who eventually discovered evidence of the sexual abuse and confronted Orozco. When she did so, Orozco assaulted her, including by strangling her.
Each of Orozco’s crimes occurred on the Navajo Nation Indian Reservation. Both victims are enrolled members of the Hopi Tribe, and Orozco is an enrolled member of the Salt River Pima-Maricopa Indian Community.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
Schuylkill County Man Sentenced to 28 Months’ Imprisonment for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Derek Yashinsky, age 29, of Shenandoah, Pennsylvania, was sentenced on June 26, 2019, by Senior U.S. District Court Judge James M. Munley to 28 months’ imprisonment followed by two years on supervised release, for his role in a heroin trafficking conspiracy.
According to United States Attorney David J. Freed, the defendant previously pleaded guilty to conspiracy to distribute more than 100 grams of heroin. Yashinsky admitted to distributing heroin and transporting other drug traffickers to Patterson, New Jersey, and Hazleton to obtain large quantities of heroin on multiple occasions. Yashinsky was involved in transporting and distributing between 400 grams and 700 grams of heroin, which is equivalent to between than 16,000 and 28,000 retail bags of heroin. Yashinsky was one of 11 people charged in the investigation.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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