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12 August 2019
Holiday Woman Sentenced to Federal Prison for Credit Card Fraud and Identity Theft at Seminole Indian ReservationRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Catherine Trinidad De Jesus Santana (43, Holiday) to three years in federal prison for access device (credit card) fraud and aggravated identity theft stemming from De Jesus Santana’s use of counterfeit credit cards at the Seminole Hard Rock Casino, located on the Seminole Indian Reservation in Tampa.
De Jesus Santana had pleaded guilty on March 27, 2019.
According to court documents, De Jesus Santana obtained breached and stolen credit card and debit card information, which she used to manufacture counterfeit credit cards. In June 2014, on multiple occasions, De Jesus Santana used those counterfeit cards to obtain cash from the Seminole Hard Rock Casino. The total loss amount from the use and attempted use of the counterfeit cards was $20,352.
This case was investigated by the Federal Bureau of Investigation and the Seminole Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
High Desert Pharmacist Sentenced to over 5 Years in Federal Prison for Illegally Distributing Prescription Opioids and Money LaunderingRead the Press Release
LOS ANGELES – A High Desert pharmacist who illegally distributed oxycodone by filling hundreds of counterfeit prescriptions was ordered today to serve 63 months in federal prison.
Pauline Tilton, 50, of Hesperia, a licensed pharmacist and the owner of Oasis Pharmacy in Victorville, was sentenced by United States District Judge Otis D. Wright II.
Tilton pleaded guilty on April 29 to one count of distribution of oxycodone and one count of money laundering related to more than a quarter millions dollars of revenue she received from the illegal sales.
Tilton filled at least 345 fraudulent prescriptions for oxycodone during a one-year period that ended in July 2017. The prescriptions were written under the name and DEA registration number of a retired doctor. When she pleaded guilty, Tilton admitted knowing the prescriptions were fraudulent, outside the usual scope of professional practice, and without a legitimate medical purpose.
As a result of the 345 prescriptions, Tilton and Oasis Pharmacy illegally diverted approximately 62,100 tablets of oxycodone to the black market. Many of the fraudulent oxycodone prescriptions also included prescriptions for alprazolam and promethazine with codeine. Those three drugs – oxycodone, alprazolam, and promethazine with codeine – comprise the “Holy Trinity,” a frequently abused and life-threatening cocktail of controlled substances.
“Tilton admitted that she abused a position of public trust and special skill in committing these offenses, as she used her position of as a pharmacist-in-charge to falsify and fill fraudulent prescriptions for oxycodone and other, potentially lethal controlled narcotics, which she sold to drug dealers,” prosecutors wrote in documents filed with the court.
In return for filling the fake prescriptions, Tilton and Oasis Pharmacy received hundreds of thousands of dollars in cash payments. Between January 2016 and June 2017, Tilton deposited $268,621 of illicit cash proceeds from her illegal drug distribution into three banks accounts over which Tilton held sole signature authority.
“Tilton, using defendant Oasis, profited handsomely for her criminal activity, which included injecting thousands of opioids and other lethal prescription drugs into a community that, like much of the country, is ravaged by the Opioid Crisis,” according to court documents.
As he imposed the prison term – and ordered Tilton to pay a $30,000 fine – Judge Wright said the defendant demonstrated a “callous disregard for her own customers’ health.”
When Tilton pleaded guilty, Oasis Pharmacy also pleaded guilty to the same drug distribution and money laundering offenses. Judge Wright today placed Oasis Pharmacy on probation for one year.
This case was the first to be charged as the result of an ongoing investigation into corrupt pharmacies dubbed “Operation Faux Pharmacy.”
This case is being investigated by the Drug Enforcement Administration; the U.S. Department of Health and Human Services, Office of Inspector General; IRS Criminal Investigation; and the California Board of Pharmacy.
This matter is being prosecuted by Assistant United States Attorney Chelsea Norell of the International Narcotics, Money Laundering, & Racketeering Section.
Harrison County woman admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Danielle Lynn McCarty, of Shinnston, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
McCarty, age 31, pled guilty to one count of “Aiding and Abetting Possession of a Stolen Firearm.” McCarty admitted to having a stolen .45 caliber pistol in June 2018 in Lewis County.
McCarty faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Weston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Hardy County man admits to fentanyl and methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dennis James Miller, of Moorefield, West Virginia, has admitted to his involvement in a fentanyl and methamphetamine distribution operation, United States Attorney Bill Powell announced.
Miller, age 49, pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute Fentanyl.” Miller admitted to distributing more than 64 grams of fentanyl and more than 69 grams of 100% pure methamphetamine from January to June 2019 in Grant County and elsewhere.
Miller faces at least five years and up to 40 years incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, West Virginia State Police, and the Charles Town Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Gang Member Charged in Connection with Two Attempted Murders as Part of RICO ConspiracyRead the Press Release
NEWARK, N.J. – A member of the New Jersey Grape Street Crips appeared in court today on charges that include two attempted murders charged as part of a RICO conspiracy, as well as narcotics trafficking, U.S. Attorney Craig Carpenito announced.
Sean Hills, a/k/a “Half A Brain,” a/k/a “Half,” a/k/a “Rydaman,” 28, of Newark, was charged in a two-count indictment with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and distribution of cocaine. Hills made his initial court appearance and was arraigned today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
Since 2015, more than 80 members of the New Jersey Grape Street Crips have been convicted federally in connection with multiple murders, attempted murders, shootings, drug trafficking, firearms charges, and witness intimidation as part of a coordinated investigation by the FBI, the Drug Enforcement Administration (DEA), and local law enforcement partners.
According documents filed in this case and statements made in court:
Hills is allegedly a long-time member of the New Jersey Grape Street Crips who has the gang’s senior hierarchy tattooed on his face. On Dec. 15, 2012, Hills repeatedly shot Victim-1 near the area of South 14th Street and 14th Avenue, an area that Hills and other gang-members were trying to take over as part of their drug-trafficking territory. On Feb. 1, 2013, Hills shot Victim-2 numerous times. Both victims survived the attacks. Hills is additionally charged with separate instances of possession with intent to distribute of cocaine.
Hills faces a maximum sentence of up to 20 years on each count for the RICO conspiracy and the narcotics charges, and a fine of $250,000 on the RICO conspiracy charge and $1 million on the drug charge.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Armando B. Fontoura, for their long and close collaboration on the case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit, and Assistant U.S. Attorney Jamel Semper of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. 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 in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense Counsel: Olubukola Adetula Esq., East Orange, New Jersey
Friend of Dayton Mass Shooter Charged with Illegally Purchasing and Possessing FirearmsRead the Press Release
DAYTON – A friend of Dayton mass shooter Connor Betts has been charged federally with lying on federal firearms forms in order to purchase weapons and with illegally possessing those weapons. The friend also allegedly purchased firearm components and body armor for Betts, which Betts used in the August 4 shooting.
Ethan Kollie, 24, of Kettering, was arrested Friday evening. His case was unsealed today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Dayton Police Chief Richard S. Biehl announced the charges.
According to the affidavit filed in support of the criminal complaint, federal agents interviewed Kollie on August 4 in connection with the mass shooting earlier that day in Dayton.
During that first interview, Kollie allegedly told agents that he likes guns and currently owns a handgun and a micro Draco pistol.
He also indicated that he purchased body armor and a firearm component for Betts earlier this year.
Kollie consented to a search of his residence, and while inside, agents smelled marijuana and observed in plain sight a bong and the Draco pistol.
Federal agents interviewed Kollie again on August 8. During that second interview, Kollie indicated he and Betts had done “hard drugs,” marijuana and acid together four to five times a week during 2014 to 2015. When asked how often he used drugs in the past year and a half, Kollie said he smokes marijuana every day and has done so since he was 14.
The affidavit details that Kollie also told agents he uses psychedelic mushrooms, which he grows in his residence, and “micro-doses” on a constant basis, stating it gives him energy and is “fun.”
Kollie allegedly told agents he lied on ATF Form 4473 while purchasing firearms, specifically while answering question 11e that asks, “Are you an unlawful user of, or addicted to, marijuana or any depressant, stimulant, narcotic drug, or any other controlled substance?” Kollie checked the “no” box.
According to the affidavit, Kollie also acknowledged purchasing three items used by Betts during the August 4 mass shooting:
- body armor,
- upper receiver that was attached to the AM-15 weapon and
- 100-round double drum magazine.
Kollie indicated he purchased these items for Betts and stored them at his apartment to assist Betts in hiding them from Betts’ parents. Kollie and Betts allegedly assembled the AM-15 in Kollie’s apartment approximately 10 weeks ago. Approximately six to eight weeks ago, Kollie obtained the drum magazine. At that time, Betts took possession of it, the assembled weapon, and the body armor.
Agents returned to Kollie’s apartment with a federal search warrant and recovered the micro Draco pistol, a Taurus Model PT111 G2A semi-automatic pistol, ammunition, drug paraphernalia, including a “bong,” and suspected marijuana and mushrooms believed to contain Schedule 1 Controlled Substances. Kollie was at the apartment at the time agents executed the warrant and was carrying a concealed (with permit) .38 Taurus revolver and a small amount of suspected marijuana, both of which were also recovered pursuant a warrant. Lab testing is in progress.
Possessing a firearm as an unlawful user of a controlled substance is a federal crime punishable by up to 10 years in prison. Making a false statement regarding firearms carries a potential maximum sentence of up to five years’ imprisonment.
Kollie is currently in custody and will appear in federal court in Dayton at 3pm on Wednesday for a detention hearing.
U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as First Assistant United States Attorney Vipal J. Patel and Assistant United States Attorney Dominick S. Gerace, who are prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Four Men Sentenced to Prison for Engaging in a Child Exploitation Enterprise on the Tor NetworkRead the Press Release
The creator and lead administrator of a highly sophisticated Tor-network-based website dedicated to the sexual abuse of children was sentenced Friday, along with three others, for their roles in this global child exploitation enterprise.
Patrick D. Falte, 29, of Franklin, Tennessee, was sentenced to 35 years in prison for engaging in a child exploitation enterprise, three counts of advertising child pornography, and three counts of distributing child pornography. Benjamin A. Faulkner, 28, of Ontario, Canada, was sentenced to 35 years in prison; Andrew R. Leslie, 24, of Middleburg, Florida, was sentenced to 30 years in prison; and Brett A. Bedusek, 35, of Cudahy, Wisconsin, was sentenced to 20 years in prison, all for engaging in a child exploitation enterprise, by Chief U.S. District Judge Waverly D. Crenshaw of the Middle District of Tennessee. The judge also sentenced each defendant to a lifetime of supervised release. Falte had previously pleaded guilty to the charges in June 2018, and Faulkner, Leslie and Bedusek had pleaded guilty in November 2018.
“The Giftbox Exchange proved a haven for sophisticated predators to produce and spread deplorable depictions of child sexual abuse,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These sentences affirm that layers of anonymity on the dark web will not prevent the Department of Justice from identifying and holding accountable those who exploit children.”
“The sentences imposed on these despicable individuals should insure that they never have another opportunity to abuse another child,” said U.S. Attorney Don Cochran for the Middle District of Tennessee. “With all that we have, we will continue to hunt down the evil and abominable like-minded individuals who delight in abusing children and will bring them to justice.”
In July 2015, Falte created a website called the “Giftbox Exchange” as a Tor hidden service, meaning it could only be accessed by users through the Tor anonymity network. Falte paid for the operation of the site using the cryptocurrency Bitcoin. He acted as the lead administrator of the site and established rules that required users to upload and share images and videos depicting pre-teen children being sexually abused before they could access the site.
The site was organized into different forums for posting different types of child pornography, categorized by age range of the minor victims — including a sub forum for “Babies & Toddlers.” At the time the site was shut down in November 2016, it had over 72,000 registered users and 56,000 posts. In addition to operating the site on the Tor network—which masks the internet protocol addresses of the users — Falte and his co-conspirators used other advanced technological means to thwart law enforcement efforts, including file encryption and cryptography.
Faulkner joined the Giftbox Exchange in September 2015 and also became an administrator of the site. In addition to his administration of Giftbox Exchange, he created and administered another Tor network-based hidden service website dedicated to child sexual exploitation, which grew to host over 200,000 users. Faulkner also created and administered a separate Tor hidden service reserved for producers of child pornography. Leslie, in addition to his membership on the Giftbox Exchange, himself ran yet another Tor network-based hidden service website, which explicitly allowed images and videos depicting graphic and violent sexual abuse of children. Bedusek, who has a prior federal conviction for receipt of child pornography and engaged in activity on Giftbox Exchange while on federal supervised release for that offense, was a VIP member of Giftbox Exchange which gave him access to a special area of the site, and a moderator on one of the hidden services created by Faulkner.
In addition to running an online network dedicated to child sexual exploitation, Falte and Faulkner were sentenced in September 2017 to life imprisonment by Judge John A. Gibney, Jr., of the Eastern District of Virginia, in connection with their sexual abuse of a toddler-aged minor to whom they gained access through an individual they met through the Giftbox Exchange. They traveled to abuse that minor on multiple occasions. Faulkner also separately traveled to Texas and sexually abused a toddler and produced child pornography of an infant. In March 2018, Leslie was sentenced to 60 years of imprisonment to be followed by a lifetime of supervised release by U.S. District Judge Brian J. Davis of the Middle District of Florida, in connection with his sexual abuse and production of child pornography involving multiple children, including an infant and a toddler.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the High Technology Investigative Unit of the Child Exploitation and Obscenity Section (CEOS). CEOS Trial Attorney Lauren E. Britsch and Assistant U.S. Attorneys S. Carran Daughtrey and Byron M. Jones of the Middle District of Tennessee prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Military Official Heads to Prison for Trafficking CocaineRead the Press Release
McALLEN, Texas – A 47-year-old Mexican national has been ordered to federal prison following his conviction of importing cocaine into the United States, announced U.S. Attorney Ryan K. Patrick.
Victor Manuel Valencia Rascon served in the Mexican military as a medical doctor for 23 years. He pleaded guilty June 3, 2019.
Today, U.S. District Judge Ricardo H. Hinojosa ordered Rascon to serve a total of 37 months in federal prison. In handing down the sentence, the court noted the significant quantity of cocaine Rascon imported.
On March 3, 2019, Rascon attempted to enter the United States at the Hidalgo Port of Entry. During inspection, law enforcement discovered a suitcase in his trunk with 25 brick-shaped packages weighing 27.54 kilograms.
Authorities tested the contents and confirmed it to be cocaine.
Rascon admitted he was aware he was importing cocaine and that he expected to be paid $2,000 per kilogram successfully imported into the United States.
Rascon will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Matthew Redavid prosecuted the case.
Former Marine and Taft Resident Sentenced to 12 Years in Prison for Child Pornography OffenseRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Hector Hinojosa‑Cisneros, 26, formerly of Taft, today to 12 years in prison for his conviction for receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
In addition, Hinojosa-Cisneros was sentenced to 15 years of supervised release, ordered to pay penalty assessments of $5,100, and $2,500 in restitution to one victim.
According to court documents, the National Center for Missing & Exploited Children reported that hundreds of images of child pornography had been uploaded to a Google Plus Photos account. Investigators in Bakersfield confirmed that Hinojosa-Cisneros controlled the account and executed a search warrant at Hinojosa‑Cisneros’s residence in Taft. Ultimately Hinojosa-Cisneros, who served eight years in the United States Marine Corps Reserve, admitted that he was involved in the receipt and distribution of what the court described as a “massive” amount of “very troubling” material. Hinojosa-Cisneros pleaded guilty on Feb. 19, 2019.
“The culmination of this investigation sends a strong message to perpetrators who seek to exploit and harm children that operating in cyberspace does not protect them from detection. HSI and our local, state, and federal law enforcement partners are coming for you,” said Tatum King, special agent in charge, Homeland Security Investigations for San Francisco and Northern California. “HSI remains committed to conducting investigations resulting in the rescue of victims of crime, end the exploitation of children in our communities, and bring to justice those who dare to commit these heinous crimes.”
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Joplin Police Officer Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former Joplin, Mo., police officer pleaded guilty in federal court today to receiving and distributing child pornography.
Gary McKinney, 43, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an Oct. 24, 2018, federal indictment. McKinney was an officer with the Joplin Police Department for about seven years until May 20, 2006, after which he worked for a short time as a police officer in Webb City, Mo., and Duquesne, Mo.
The investigation began on Sept. 17, 2018, when a federal agent received a CyberTip from the National Center for Missing and Exploited Children. Facebook reported that a user had uploaded a video file of the sexual assault of a 4-year-old victim. Law enforcement officers contacted the Facebook user, who at that time was conversing with McKinney using the KIK messaging application.
Law enforcement officers executed a search warrant at McKinney’s residence on Oct. 3, 2018, and seized his cell phone. Investigators located 506 images and 148 videos that contained child pornography on McKinney’s cell phone. The examination showed that McKinney used both the Telegram and KIK applications to converse with others and exchange child pornography.
Under the terms of today’s plea agreement, McKinney is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force, and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Girard, PA Man Sentenced to 15 Years in Prison for Producing Sexually Explicit Photos of Young ChildrenRead the Press Release
ERIE, Pa. - A former resident of Girard, Pennsylvania, has been sentenced in federal court to 15 years in prison, lifetime supervised release and a $5,300 special assessment on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Michael Robert Heinrich, 68.
According to information presented to the court, in January 2017 Heinrich took sexually explicit photos of a minor who was four years of age at the time. On February 14, 2017, Heinrich again took sexually explicit photos of that same four-year-old minor and also took a sexually explicit photo of a three-year-old minor. An examination of Heinrich’s computers and cell phone also revealed the presence of numerous other images depicting prepubescent minors engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Heinrich.
Felon Who Possessed Stolen Handgun Sentenced to More Than Two Years’ in Federal PrisonRead the Press Release
A man who possessed a stolen gun after being convicted of a felony drug offense was sentenced today to more than two years in federal prison.
Matthew Robert Primmer, age 20, from Cedar Rapids, Iowa, received the prison term after a March 21, 2019 guilty plea to being a felon in possession of a firearm.
At the guilty plea, Primmer admitted that he possessed a firearm in Cedar Rapids on December 8, 2018. On that day, police received a report of a disturbance and a witness stated that he had observed a gun fall from Primmer’s pocket. When officers approached Primmer, he ran from them. Police eventually located Primmer hiding between two cars in a nearby parking lot. While speaking with Primmer, a Glock 19 Gen4 9mm pistol fell from Primmer’s person onto the ground. Police later learned the firearm was previously reported stolen.
Primmer was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Primmer was sentenced to 27 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Primmer is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0011.
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Federal Jury Convicts New Bern Medical Doctor for Unlawfully Distributing Oxycodone, Money Laundering and Tax EvasionRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, SANJAY KUMAR, 53 of New Bern, North Carolina, was convicted after a 26-day jury trial before United States District Judge Louise Wood Flanagan. The jury found KUMAR, who was a licensed medical doctor at the time of the offenses, guilty of five (5) counts of Unlawful Distribution of Oxycodone outside the scope of professional practice and not for a legitimate medical purpose, five (5) counts of Money Laundering by Concealment, and three (3) counts of Attempt to Evade and Defeat Tax.
The evidence at trial showed that KUMAR was a licensed medical doctor who operated a sports medicine and rehabilitation practice in New Bern, North Carolina from 2004 until June 21, 2016, when his ability to prescribe controlled substances was limited by the North Carolina Medical Board. The Drug Enforcement Administration’s Charlotte-based Tactical Diversion Squad began investigating KUMAR when they were notified by local pharmacies about the number and frequency with which KUMAR was writing prescriptions for opioid narcotics. A multi-agency investigation was initiated in early 2014 by the DEA, the State Bureau of Investigation, the Craven County Sheriff’s Office, and the New Bern Police Department.
At trial, the evidence showed that KUMAR prescribed oxycodone and other controlled substances with little or no medical examination. Multiple witnesses testified that KUMAR operated a cash-only practice, there was no additional staff in the office, and the patients received a prescription from KUMAR at every visit without distinction based on their history of prior medications, prior treatment, and medical diagnoses. The evidence showed that KUMAR wrote approximately 9,500 opioid prescriptions between the years of 2011 to 2016.
KUMAR is scheduled to be sentenced in January of 2020.
Mr. Higdon stated: “The United States Department of Justice is aggressively moving against all individuals who illegally distribute opioids and prescription drugs. Whether those illegally pushing these drugs are on the street or operating from a doctor’s office, we will pursue you, charge you and convict you for the crimes that are putting our citizens at risk.”
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Drug Enforcement Administration’s Tactical Diversion Squad. Assistance was also provided by the Internal Revenue Service-Criminal Investigations (IRS-CI), the New Bern Police Department, the State Bureau of Investigation, Diversion and Environmental Crime Unit, and the Craven County Sheriff’s Office. Assistant United States Attorneys Adam Hulbig and Nick Miller represented the government in this case.
Federal Grand Jury Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the August 2019 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Joshua William Beyerl. Felon in Possession of Firearm and Ammunition; Tampering With a Witness by Physical Force or Threat; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Beyerl, 36, of Jay, is charged with being a felon in possession of a Savage Arms .22 LR rifle and associated ammunition. He is also charged with threatening to use physical force against a Delaware County Undersheriff, and with brandishing a firearm during the incident. The Delaware County Sheriff’s Office, Grand River Dam Authority, and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Jeffrey Scott Bruce. Attempted Bank Robbery. Bruce, 55, of Tulsa, is charged with attempting to rob a JP Morgan Chase Bank on July 25, 2019. The Tulsa Police Department and FBI are the investigative agencies.
Thomas Dustin Daughtry. Sexual Exploitation of a Child; Possession of Child Pornography; Coercion and Enticement. Daughtry, 42, of Sperry, is charged with coercing a minor to engage in sexually explicit conduct for the purpose of producing pictures. He is further charged with possessing and accessing pornographic images, including at least one with a prepubescent minor. He is finally charged with knowingly coercing a minor to engage in sexual activity. The Tulsa Police Department and FBI are the investigative agencies.
Thomas Lawrence Dean. Bank Robbery Using a Dangerous Weapon; False Information on Hoaxes; Felon in Possession of Firearm and Ammunition. Thomas Lawrence Dean, 50, of Tulsa, is charged with two counts of bank robbery using a dangerous weapon, conveying false information on hoaxes, and being a felon in possession of a FIE Corp. TITAN TIGER BLU .38 Special Caliber Revolver and associated ammunition. Dean allegedly robbed an International Bank of Commerce (IBC) on July 1, 2019, and an Arvest Bank on July 10, 2019. In the IBC robbery, he is alleged to have approached a teller and handed her a note demanding money. In the note, Dean indicated that he was in possession of a bomb and firearm. Later, at Arvest Bank, Dean also demanded money, indicating in a note that he had a firearm. The Tulsa Police Department and FBI are the investigative agencies.
John Samuel Glenn. Possession of Methamphetamine With Intent to Distribute; Possession of a Firearm in furtherance of a Drug Trafficking Crime. Glenn, 29, of Tulsa, is charged with possessing with intent to distribute methamphetamine. He is also charged with possessing a Smith & Wesson 9x19 caliber semiautomatic pistol in furtherance of his drug trafficking crime. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Keith Ingram. Drug Conspiracy; Possession of Methamphetamine With Intent to Distribute; Distribution of Methamphetamine (2 counts); Possession of a Firearm in Furtherance of Drug Trafficking Crimes; Felon in Possession of a Firearm. From May 28 to May 29, 2019, Ingram, 34, of Tulsa, is alleged to have conspired with others to possess with intent to distribute and to distribute methamphetamine; he is also charged with two counts of knowingly possessing with intent to distribute methamphetamine while aiding and abetting others. He is further charged with possessing a firearm to further his drug trafficking crimes and with being a felon in possession of a Taurus .45 caliber semi-automatic pistol. The Tulsa Police Department is the investigative agency.
Carnell Lovette Matthews. Attempted Coercion and Enticement of a Minor; Receipt of Child Pornography. From April 30 to May 2, 2019 Matthews, 43, of Tulsa, is alleged to have attempted to persuade, induce, coerce, and entice a minor to engage in sexual activity. He is further charged with receiving images of a minor engaged in sexually explicit conduct. The FBI and Broken Arrow Police Department are the investigative agencies.
Alexander Joshua Milner. Possess, Receive, Conceal, Store, Barter, Sell and Dispose of Stolen Firearms; Theft of a Firearm From a Federal Firearm Licensee. Milner, 31, of Sand Springs, is charged with knowingly possessing the following stolen firearms: a Beretta .40 S&W caliber semi-automatic pistol; a Herbert Schmidt .22 caliber revolver; a Mossberg 12 gauge pump-action shotgun; a Remington 12 gauge semi-automatic shotgun; a Benelli 12 gauge semi-automatic shotgun; a Weatherby .22 caliber semi-automatic rifle; and an Anderson Manufacturing 5.56mm caliber semi-automatic rifle. He is further charged with stealing the firearms in July 2019 from a federal firearms licensee in Tulsa. The Osage County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives are the investigative agencies.
Kameron Todd Myers, Chelsey Sky Inman, and Colby Murphy. Carjacking (2 counts); Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence (2 counts); Accessory After the Fact; Felon in Possession of Firearm and Ammunition. Myers, 32, and Murphy, 21, both of Tulsa, are charged with carjacking a 2002 Mercedes-Benz on June 2, 2019. Myers is further charged with brandishing a firearm during the carjacking. Myers is also charged with carjacking a 1999 Jeep Grand Cherokee on June 4, 2019, and with brandishing a firearm during the crime. Finally, Myers is charged with being a felon in possession of a Glock .45ACP caliber semi-automatic pistol. Inman, 26, of Tulsa, is charged with being an accessory after the fact for assisting Myers and Murphy in order to prevent their apprehension and future trial regarding the June 2, 2019, carjacking. The Tulsa Police Department and FBI are the investigative agencies.
Casey Adam Parker. Attempted Coercion and Enticement of a Minor. From July 1 to July 2, 2019, Parker, 39, of Afton, allegedly attempted to knowingly persuade and entice an individual he believed to be a minor to engage in sexual activity. The Tulsa Police Department and FBI are the investigative agencies.
Dawn M. Setser. Unlawful User of a Controlled Substance in Possession of a Firearm. Setser, 39, of Rose, is charged with being an unlawful user of a controlled substance in possession of an Amadeo Rossi .38 special revolver. The Delaware County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Jason Ray Smith. Attempted Coercion and Enticement. Smith, 40, of Sapulpa, is charged with attempting to persuade and entice an individual whom he believed to be a minor to engage in sexual activity. The Tulsa Police Department and FBI are the investigative agencies.
Lee Charles Smith. Destruction of an Energy Facility (6 Counts). In September 2018, Smith, 32, of Wynona, is alleged to have damaged six oil pumping rigs throughout Osage County by removing motors and other equipment from the pumpjack rigs. In total, Smith is alleged to have caused in excess of $30,000 worth of damages. The Osage County Sheriff’s Office and Oklahoma Bureau of Investigation are the investigative agencies.
Carl Thomas Spaeth. Attempted Coercion and Enticement of a Minor. From July 5 to July 10, 2019, Spaeth, 35, of Broken Arrow, is alleged to have persuaded and enticed an individual whom he believed to be a minor to engage in sexual activity. The Tulsa Police Department and FBI are the investigative agencies.
Jimmy Townsend. Possession of Methamphetamine With Intent to Distribute. Townsend, is charged with possessing with intent to distribute 500 grams or more of methamphetamine. The Tulsa Police Department, Drug Enforcement Administration, and U.S. Postal Inspection Service are the investigative agencies.
Lucas Shane Vann. Sexual Exploitation of a Child. Vann, 19, of Salina, is charged with knowingly enticing a minor to engage in sexually explicit conduct for the purpose of producing sexual images. The Delaware County Sheriff’s Office and FBI are the investigative agencies.
Brent Kenneth Whinery. Felon in Possession of Firearm and Ammunition. Whinery, 28, of Avant, is charged with being a felon in possession of a Rohn GMBH .22 caliber revolver and 90 rounds of ammunition. The Skiatook Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Eugene Jury Convicts Methamphetamine TraffickersRead the Press Release
EUGENE, Ore.—U.S. Attorney Billy J. Williams announced today that a federal jury in Eugene has found two men guilty of trafficking methamphetamine from Southern California to Central Oregon and the Portland Metropolitan Area for distribution.
On August 9, 2019, Ronald Wayne Thrasher, 49, of Madras, Oregon, was found guilty of purchasing and transporting methamphetamine for distribution. Thrasher’s supplier, Russell Marvin Jones, 53, of Gresham, Oregon, was found guilty of selling methamphetamine and possessing a stolen firearm. Both men were also found guilty of being felons in possession of a firearm.
Thrasher and Jones have each served time in prison for past convictions. Thrasher served time in federal prison for being a felon in possession of a firearm and Jones in Oregon state prison for first degree manslaughter.
Nine co-defendants have previously pleaded guilty to conspiring with Thrasher to possess with intent to distribute methamphetamine and are awaiting sentencing: Jordan Michael Johnson, 57, of San Diego, California; Brenda Ann Lederman, 46, of Santee, California; Jason James Puckett, 46, of Prineville, Oregon; Tyler Wayne Fuller, 30, Renee Marie Scarlett, 48, and Talina Shantel Ortiz, 45, of Madras; Jacklin Renee Bowlby, 36, of Bend, Oregon; Kerry Wayne Hopson, 33, of Redmond, Oregon; and Mistie Dawn Cooper, 39, of Alfalfa, Oregon. Fuller also pleaded guilty to robbing a bank in Madras.
According to court documents and testimony produced at trial, in spring of 2016, Thrasher became acquainted with multiple co-defendants who were engaged in trafficking methamphetamine from Santee, San Diego and Portland for resale in Central Oregon. Thrasher used these connections to establish a source of supply for his own methamphetamine use and distribution.
In early 2017, after his primary supplier was arrested in Redmond, an associate introduced Thrasher to Jones, a methamphetamine manufacturer, dealer and user in the Portland, Oregon area. On or about February 17, 2017, Thrasher traveled to Portland with his associates to meet Jones. During this meeting, Jones sold Thrasher several pounds of methamphetamine. On March 20, 2017, after several additional methamphetamine deals, Jones sold Thrasher a stolen firearm.
By April 2017, Thrasher was distributing methamphetamine via multiple associates throughout Central Oregon. On April 9, 2017, he was introduced to new California-based methamphetamine suppliers including Stevens. Two weeks later, Thrasher and an associate drove to Santee to meet with his new suppliers. During this meeting, Thrasher purchased approximately 13 pounds of methamphetamine from Stevens.
In May 2017, a Central Oregon Drug Enforcement (CODE) team investigation identified Thrasher as a high-volume methamphetamine supplier and distributor. On May 29, 2017, CODE detectives assisted by a U.S. Drug Enforcement Administration (DEA) agent arrested Thrasher and seized approximately 16 pounds of methamphetamine, $16,000 in cash, records of drug sales and the stolen firearm from his residence in Madras.
Thrasher and Jones will be sentenced on February 4, 2020 and November 14, 2019, respectively, before U.S. District Court Judge Michael J. McShane.
This case was investigated by CODE, DEA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Oregon State Police. It was prosecuted Frank R. Papagni Jr. and Judi Harper, Assistant U.S. Attorneys for the District of Oregon, with the assistance of the Jefferson, Crook and Deschutes County District Attorney’s Offices.
Erie County Man Pleads Guilty to Possessing Computer Images of Child PornographyRead the Press Release
ERIE, Pa. - A resident of Fairview, Pennsylvania pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Matthew E. Poese, 47, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Poese possessed computer images depicting prepubescent minors engaging in sexually explicit conduct..
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for December 9, 2019 at 1:30 p.m.. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court placed Poese on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Poese.
District Man Found Guilty of Multiple Counts of Assault with a Weapon for 2017 ShootingRead the Press Release
WASHINGTON – Derrick Watson, 41 of Washington, D.C., was found guilty by a jury of five counts of assault with a dangerous weapon, assault with significant bodily injury while armed, six counts of possession of a firearm during a crime of violence, and felon in possession for a shooting that took place on July 10, 2017, in Northwest Washington, announced U.S. Attorney Jessie K. Liu.
The guilty verdicts were returned Wednesday, July 24, 2019, following a one-week trial in the Superior Court of the District of Columbia. The Honorable Craig Iscoe scheduled sentencing for October 11, 2019.
The government’s evidence established that on July 10, 2017, at approximately 8:54 p.m., the defendant engaged in a gun battle with Saheed Salu and Kevin Williams in a small courtyard behind 1341 I Street NE, Washington, DC. During the shooting at least 15 innocent adults and children were in the immediate area and a one-year-old was struck in the crossfire requiring medical attention. Earlier in the evening, the defendant was involved in a verbal altercation with Saheed Salu over gambling. Saheed Salu left the area and returned with Kevin Williams both armed. Once the defendant noticed Kevin Williams was armed, the defendant walked to his car, retrieved his own firearm, and returned closer to Salu and Williams. Soon after at least 13 gunshots were fired by the three shooters. Saheed Salu and Kevin Williams plead guilty and were sentenced in January 2019.
In announcing the verdict and guilty plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Litigation Technology Specialist Leif Hickling, Victim/Witness Program Specialist Karina Hernandez, former Victim-Witness Advocate Diana Lim, Supervisory Victim/Witness Services Coordinator Katina Adams-Washington, Supervisory Paralegal Specialist Sabrina Turner, Paralegals Tiffany Fogle and Antoinette Sakamsa, former Criminal Investigator John Marsh, intern Elizabeth Brown, former Assistant U.S. Attorneys Jennifer Kerkhoff and Louis Manzo.
Finally, she acknowledged the efforts of Assistant U.S. Attorney Rachel Bohlen who prosecuted the case and Monica Trigoso who investigated and prosecuted the case.
Defendant convicted in string of horrific armed robberies of Asian-run businessesRead the Press Release
ATLANTA – A federal jury has convicted Dravion Sanchez Ware for conducting a string of armed robberies targeting Asian owned-and-operated businesses in Atlanta, Doraville, Duluth, Roswell, Stone Mountain, and Norcross in October and November 2017.
“Ware terrified his innocent victims, demonstrating a callous disregard for the lives of these small business owners and their customers,” said U.S. Attorney Byung J. “BJay” Pak. “The courage of his victims, and the coordination of federal and local law enforcement officers who were determined to bring him to justice, will ensure he faces a very lengthy prison sentence.”
“The victims of these violent armed robberies will be emotionally scarred forever, but thanks to a federal jury, hopefully they can rest easier knowing that Ware will not traumatize any more victims like they were, for a long, long time,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI would like to thank our state and local law enforcement partners who helped bring this violent defendant to justice.”
“The strong partnerships we work hard to forge in Atlanta with local, state and federal agencies are critical to bringing dangerous criminals like Ware to justice,” said Atlanta Police Chief Erika Shields. “Congratulations to all of those involved in putting an end to this violent string of robberies.”
“These are the results we get when agencies come together and pool our resources to ensure our communities remain safe from people who choose to do harm. Because of all of the hard work from our investigators, as well as the hard work from all of the agencies involved, we were able to make a good case and get a solid conviction. We are pleased that these individuals will not be loose on our streets wreaking havoc,” said Interim Doraville Police Chief Chuck Atkinson
Gwinnett County Police Chief Butch Ayers said, “The series of crimes committed by these perpetrators are a prime example of the need for strong working relationships between federal and local agencies. Criminals do not abide by jurisdictional boundaries. The knowledge that law enforcement works together across those boundaries should discourage others who would commit such crimes.”
“The violent actions of these individuals created grief and fear within our communities. Thanks to coordination and cooperation between the dedicated members of the participating agencies, Ware and Smith will be held responsible for these vicious attacks,” said Roswell Police Chief James W. Conroy.
According to U.S. Attorney Pak, the charges, and other information presented in court: Between October 7 and November 10, 2017, Ware, along with co-defendant Tabyron Rashad Smith, committed multiple armed robberies of Asian-run businesses in Metro-Atlanta. Ware participated in at least nine armed robberies. He pistol-whipped several victims, terrified many others, and even shot three women during one of the robberies. One of Ware’s victims attempted to avoid detection while squatting on her knees, facedown, behind a cash register. Ware then calmly walked up behind her and shot her in the back at point-blank range.
Ware’s convictions for conspiring to commit, and commission of, multiple Hobbs Act robbery offenses, and the charges of discharging or brandishing a firearm during the robberies, stem from his armed robberies of three businesses in Atlanta, two in Doraville, as well as one business in each of the following cities: Norcross, Duluth, Stone Mountain, and Roswell, Georgia.
Ware was captured on November 22, 2017, after the FBI led a multi-jurisdictional investigation that included participation of the Georgia Bureau of Investigation, the Doraville Police Department, the Fulton County Police Department, the Gwinnett County Police Department, the Atlanta Police Department, the Roswell Police Department, and the Sandy Springs Police Department.
Ware’s co-defendant, Tabyron Rashad Smith, pled guilty on July 23, 2019, to conspiracy to commit the Hobbs Act robberies, and four counts of discharging or brandishing a firearm during several of the robberies.
Sentencing for Dravion Sanchez Ware, 23, of Atlanta, Georgia, is scheduled for November 5, 2019, at 10:00 a.m. before U.S. District Judge Timothy C. Batten, Sr. Ware was found guilty on August 2, 2019 by a federal jury.
Assistant U.S. Attorneys Bret R. Hobson and Timothy H. Lee prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Correctional officer indicted for accepting bribes to smuggle contraband into prisonRead the Press Release
DUBLIN, GA: A correctional officer at a federal prison has been charged in a 14-count indictment with accepting bribes in return for smuggling cigarettes to an inmate.
Michael Kerr, 30, of Vidalia, Ga., is charged with 12 counts of Bribery, one count of Providing Contraband into a Prison, and one count of making a false statement to law enforcement, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry possible punishment of up to 15 years in prison.
The indictment alleges that on 12 occasions Kerr, a correctional officer at McRae Correctional Facility, a private prison operated under a federal contract in Telfair County, accepted payments ranging from $400 to $640 in return for smuggling cigarettes to the inmate. The indictment alleges Kerr then lied when confronted about the allegations by claiming the payoff occurred only once, for $100. The forfeiture allegation included in the indictment contends Kerr accepted bribes totaling of $5,790.
“The corrections officers in our federal prison system perform outstanding work under difficult conditions,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Any guard who violates their oath makes the job for all the others more difficult, and as a consequence merits prosecution.”
“Introducing contraband undermines the integrity of federal prisons and creates a danger for correctional officers, prison staff, and inmates,” said Special Agent in Charge James F. Boyersmith, Department of Justice Office of the Inspector General, Miami Field Office. “Bribery and smuggling contraband into federal prisons will not be tolerated, and our agents will continue to root out these schemes. I’d like to thank U.S. Attorney Christine for his partnership in this effort.”
An indictment contains only charges. Defendants are considered innocent unless and until proven guilty in court.
The case was investigated by the U.S. Department of Justice Office of Inspector General, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Conman Who Posed as Beverage Entrepreneur Sentenced to more than 7 Years in Federal Prison for Running $7.5 Million Ponzi SchemeRead the Press Release
LOS ANGELES – A Canadian national was sentenced today to 87 months in federal prison for running a $7.5 million Ponzi scheme in which he defrauded investors by posing as a successful beverage entrepreneur with close ties to well-known business executives and professional sports stars, including NBA star Stephen Curry.
Khemraj Dave Hardat, 50, a former resident of the Ritz-Carlton Residences at L.A. Live in downtown Los Angeles who has been in federal custody since his arrest last November, was sentenced by United States District Judge Dale S. Fischer, who said Hardat was “not a misguided businessman; he was a very skillful fraudster.”
Hardat was sentenced after pleading guilty on April 22 to five counts of wire fraud. When he pleaded guilty, Hardat admitted that, from August 2014 through November 2018, he raised money from investors by falsely holding himself out as a successful investor and businessman in the performance beverage and water-bottling industries. Hardat duped his investors by falsely representing that he had a doctorate and that he maintained relationships with established business figures such as computer entrepreneur Michael Dell and the chief executive officer of PepsiCo.
Hardat falsely claimed that professional basketball star Stephen Curry would be endorsing one of his company’s products, and that PepsiCo and Dr. Pepper Snapple Group, Inc. owed him more than $100 million as the result of purported business deals he had consummated with them.
Hardat supported his bogus claims of financial success by showing victims doctored digital images of bank account statements showing inflated balances. One fraudulent image emailed to a victim showed a balance of nearly $500 million in one bank account, while another phony image showed a bank account balance of nearly $170 million.
In reality, Hardat used investor funds to pay off his personal debts, purchase luxury cars worth more than $100,000 each, pay rent at the Ritz-Carlton Residences, pay tuition to exclusive private schools, and purchase luxury boxes and tickets for sporting and entertainment events. Hardat also admitted that, in the style of a Ponzi scheme, he made payments to prior victim-investors out of subsequent victim-investors’ money. During the course of the scheme, Hardat took in approximately $7.5 million from investors, who suffered losses of more than $6.4 million.
“Fleeing the fallout and escaping the consequences of frauds he perpetrated in Canada, defendant immigrated to the United States, where he overstayed his visa and reconstituted his lucrative, luxurious life of financial crime,” prosecutors wrote in a sentencing memorandum. “[Hardat] befriended neighbors, fellow parents at his children’s school, and entrepreneurial would-be co-venturers, whose trust, loyalty, and hopes he carefully nurtured, only to betray them at the earliest opportunity.”
This matter was investigated by the Federal Bureau of Investigation.
This case was prosecuted by Assistant United States Attorney Adam P. Schleifer of the Major Frauds Section.
Columbus Man Pleads Guilty to Federal Drug Distribution and Firearm OffensesRead the Press Release
CHARLESTON, W.Va. – A Columbus, Ohio man pled guilty to federal drug distribution and firearm offenses, announced United States Attorney Mike Stuart. D’Alfonza Mikell, 26, pled guilty today to possession with intent to distribute methamphetamine and heroin and possession of a firearm in furtherance of a drug trafficking crime.
“Meth. Heroin. Firearm. And in a McDonald’s parking lot no less,” said United States Attorney Mike Stuart. “Definitely not a happy meal. Drug dealers aren’t wanted here and we’ll do everything within our power to remove them from our communities and to protect West Virginia families.”
On January 10, 2019, detectives with the Metro Drug Enforcement Network Team stationed themselves around the McDonald’s parking lot of Washington Street East, in Charleston. They had been warned that Mikell had come from Ohio and would be conducting a drug transaction that morning. A white pickup truck, with Mikell and three other individuals inside, pulled in and parked. Detectives watched as the defendant met with a confidential source. After meeting with the confidential source, MDENT detectives approached the truck in which Mikell was seated. Mikell was ordered out of the truck and at that time, detectives observed a Smith & Wesson .40 caliber pistol hidden underneath his leg. The defendant also had over 25 grams of methamphetamine and 2 grams of heroin inside his jacket pocket. Digital scales, 13 more grams of methamphetamine, and 2 more grams of heroin were inside the truck’s console.
Mikell faces a minimum of 5 years and up to life in federal prison when he is sentenced on December 16, 2019. Assistant United States Attorneys L. Alexander Hamner and Erik Goes are handling the prosecution.
Senior United States District Judge David A. Faber presided over the hearing.
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###California Drug Dealer to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced August 8, 2019, to 14 years in federal prison.
Michael Halstead, 32, originally from the Sacramento, California area, but most recently residing in Fort Dodge, Iowa, received the prison term after a February 28, 2019, guilty plea to conspiracy to distribute methamphetamine and illegal possession of ammunition. Halstead was previously convicted in California of felony transport of marijuana in 2006 and felony burglary in 2010.
At the plea hearing, Halstead admitted that from about August 2016 through November 2018, he was involved in a conspiracy that distributed more than seven pounds of methamphetamine in the Fort Dodge and Webster County areas. Halstead arranged for his mother, other family members and friends to transport methamphetamine, marijuana and cocaine from California to Iowa by car and train. In 2017, law enforcement made three one ounce buys of methamphetamine from Halstead. In 2018, law enforcement seized over 30 grams of methamphetamine, 30 grams of cocaine, ecstasy pills, $6,981, and well over 100 rounds of 9mm ammunition.
Halstead was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Halstead was sentenced to 168 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Halstead remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Webster County Sheriff’s Office, Fort Dodge Police Department, Iowa Division of Criminalistics Investigation, and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3046. Follow us on Twitter @USAO_NDIA.
Cabell County Man Pleads Guilty to Distributing OxycodoneRead the Press Release
HUNTINGTON, W.Va. – A Cabell County man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Billy Dean Vance, age 43, of Huntington, pled guilty to distributing oxycodone.
“Selling pills from his house and adding to the death, destruction and chaos of an epidemic,” said United States Attorney Mike Stuart. “Pill dealers have caused death and destruction across our state. Not anymore.”
On June 20, 2018, Vance sold 20, 30-milligram oxycodone pills for $700 to a person working as a confidential informant for the Drug Enforcement Administration. The sale occurred in the driveway of Vance’s Crestmont Drive home.
Vance had on prior occasions made two additional sales, both involving 10 30-milligram oxycodone pills. Those sales occurred on May 31 and June 12, 2018. On July 2, 2018, law enforcement served a search warrant at Vance’s residence and found more oxycodone pills, hydrocodone pills and marijuana. They also recovered approximately $3500 in cash.
Vance faces up to 20 years imprisonment and a fine of up to $1 million dollars when he is sentenced on November 18, 2019. The Drug Enforcement Administration conducted the investigation. United Stated District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
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CEO of Denver Technology Company Sentenced to over 6 years in Federal Prison for Obstructing and Defrauding the IRS as Well as Stealing Money from Employee Healthcare and 401(K) PlansRead the Press Release
DENVER – Riordan A. Maynard, age 50, of Centennial, Colorado, was sentenced today by U.S. District Court Judge Christine M. Arguello to serve 78 months (6 ½ years) in federal prison for corruptly impeding the administration of tax laws, conspiracy to defraud the United States, conspiracy to steal or embezzle employee benefit plan and healthcare funds, and theft or embezzlement in connection with healthcare. Maynard was found guilty of all counts charged on May 14, 2019 following a seven-day jury trial. The jury deliberated for about two hours before the sentence was handed down. He appeared at the sentencing hearing free on bond, and was ordered to report to a Bureau of Prisons facility once one is designated.
According to court records and evidence presented at trial, Maynard served as the Chief Executive Officer of two communications technology companies located in Denver, Colorado, Touchbase USA (TBUSA) and its successor company Touchbase Global Services, Inc. (TBGSI). TBGSI offered a 401(k) savings plan to the employees of both TBGSI and TBUSA. Maynard conspired with a co-conspirator to steal funds that employees had directed TBGSI to withhold from their paychecks for 401(k) plans, ultimately stealing over $68,000 of 401(k) for use on other TBGSI expenses.
TBGSI also claimed to offer its employees a healthcare benefit program under which the company would contribute $600 per month to each participant’s premiums. Participants were responsible for the remainder of the premium cost. TBGSI automatically deducted the participant contribution from each participant’s paycheck. TBGSI was then responsible for forwarding the full premium to the health insurance carrier, but ultimately never did so. Maynard was convicted of stealing over $50,000 in funds that employees had withheld from their paychecks for their health insurance plans. By June 2017, TBGSI owed over $100,000 to the health insurance carrier, which then terminated coverage for the employees. Numerous employee healthcare claims were subsequently denied, totaling over $135,000. The judge ordered that Maynard pay restitution to employees for the stolen premiums and the denied medical claims.
TBUSA and TBGSI were also required to pay payroll taxes to the IRS. From early 2012 through September 2017, Maynard corruptly impeded the IRS’s attempts to collect these taxes. Maynard closed TBUSA and reopened it as TBGSI to avoid paying more than $2.5 million in unpaid payroll taxes owed to the IRS. TBGSI then ran up an additional unpaid payroll tax liability of over $2.4 million. Maynard transferred funds from business accounts to Maynard’s personal account to avoid IRS levies. And he conspired with a co-conspirator to falsely tell TBGSI customers that IRS levies they had received were in error, in an effort to prevent customers from sending money to the IRS.
“Thanks to the hard work of this office, the Department of Labor and IRS Criminal Investigation, the defendant will live in a small cell for over 6 years for committing this complex economic crime,” said U.S. Attorney Jason Dunn. “As a result of this prosecution, those who were cheated of their benefits will receive justice.”
“IRS-Criminal Investigation enforces the nation's tax laws, and takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said IRS-Criminal Investigation Acting Special Agent in Charge Kevin Caramucci. “The victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm. Today’s sentencing of Riordan Maynard emphasizes our continued pursuit of those who use fraudulent methods in an attempt to corrupt our nation’s tax system.”
“Prosecuting those who misuse funds from employee benefit plans is a vital aspect of this agency’s mission to protect the rights of America’s workers,” said Jim Purcell, Department of Labor’s Employee Benefits Security Administration’s (EBSA) Regional Director in Kansas City. “EBSA will continue to aggressively investigate such crimes on behalf of workers nationwide.”
“Riordan Maynard embezzled over $100,000 in employee healthcare and retirement funds by depriving participants of money they set aside to pay for their health care and retirement expenses. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration to protect the integrity of DOL’s benefit programs,” said Quentin Heiden, Acting Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
This matter was investigated by the Department of Labor Office of Inspector General, the Internal Review Service Criminal Investigation, and the Department of Labor’s Employee Benefits Security Administration. This matter was prosecuted by Assistant U.S. Attorneys Rebecca S. Weber and Aaron M. Teitelbaum.
Casper Physician Sentenced for Prescription Drug Conspiracy Resulting in DeathRead the Press Release
United States Attorney’s Office today announced the sentencing of Shakeel Kahn and his brother Nabeel Kahn on federal charges of operating a continuing criminal enterprise and conspiring to distribute prescription medications, which resulted in the death Jessica Burch. The sentencing follows a nearly four week trial that concluded in May 2019.
Shakeel and Nabeel Kahn were sentenced by United States District Court Judge Alan B. Johnson.
Shakeel A. Kahn, (53) received a 25 year sentence for counts including drug distribution resulting in death, operating a continuing criminal enterprise, and the use of a firearm in furtherance of a federal drug trafficking crime. Nabeel Aziz “Sonny” Kahn (46), received a 15 year sentence, including a 5 year consecutive sentence for use of a firearm in furtherance of a federal drug trafficking crime.
“This is a substantial sentence that reflects the severity of the offenses in this case,” said U.S. Attorney Mark Klaassen. “In concert with the ongoing nationwide effort to combat opioid abuse, my office will continue to focus on stemming the tide of illegally prescribed drugs. These are particularly addictive and dangerous drugs that must be used with care, and we must ensure the integrity of the prescribing process to prevent abuse,” said Klaassen. “I appreciate the effort of the DEA diversion team in the investigation of this case.”
Numerous other defendants were charged and convicted in State court on drug trafficking charges for their involvement in selling prescription medications received through Shakeel Kahn’s practice.
The investigation of this case began in April 2016, based on a complaint from the Wyoming Board of Pharmacy indicating Shakeel Kahn was prescribing large amounts of controlled substances under two DEA registration numbers – one in Arizona and one in Wyoming. Trial testimony revealed that the Kahn drug distribution organization was unlawfully prescribing opioids in small rural communities located in and around Fort Mohave, Arizona; Casper, Wyoming; and the Wind River Indian Reservation between January of 2011 and December of 2016.
Shakeel Kahn purported to be a pain management physician. He targeted vulnerable addicts as customers. They received prescriptions for highly addictive opioids at rapidly escalating volume and in potentially deadly combination with other drugs. It was not uncommon for customers to pay as much as $4,000 per month to Kahn in exchange for the prescription opioids. The patients who received the medications often had no visible source of income that would allow them to afford the prescriptions – other than what they were earning re-selling the drugs on the street. Tragically, at least one patient, Jessica Burch, died as a result of an overdose of medications received from Shakeel Kahn’s practice.
This case was investigated with the assistance of the Drug Enforcement Administration and the Wyoming Division of Criminal Investigation.
Casper Physician Sentenced for Prescription Drug Conspiracy Resulting in DeathRead the Press Release
United States Attorney’s Office today announced the sentencing of Shakeel Kahn and his brother Nabeel Kahn on federal charges of operating a continuing criminal enterprise and conspiring to distribute prescription medications, which resulted in the death Jessica Burch. The sentencing follows a nearly four week trial that concluded in May 2019.
Shakeel and Nabeel Kahn were sentenced by United States District Court Judge Alan B. Johnson.
Shakeel A. Kahn, (53) received a 25 year sentence for counts including drug distribution resulting in death, operating a continuing criminal enterprise, and the use of a firearm in furtherance of a federal drug trafficking crime. Nabeel Aziz “Sonny” Kahn (46), received a 15 year sentence, including a 5 year consecutive sentence for use of a firearm in furtherance of a federal drug trafficking crime.
“This is a substantial sentence that reflects the severity of the offenses in this case,” said U.S. Attorney Mark Klaassen. “In concert with the ongoing nationwide effort to combat opioid abuse, my office will continue to focus on stemming the tide of illegally prescribed drugs. These are particularly addictive and dangerous drugs that must be used with care, and we must ensure the integrity of the prescribing process to prevent abuse,” said Klaassen. “I appreciate the effort of the DEA diversion team in the investigation of this case.”
Numerous other defendants were charged and convicted in State court on drug trafficking charges for their involvement in selling prescription medications received through Shakeel Kahn’s practice.
The investigation of this case began in April 2016, based on a complaint from the Wyoming Board of Pharmacy indicating Shakeel Kahn was prescribing large amounts of controlled substances under two DEA registration numbers – one in Arizona and one in Wyoming. Trial testimony revealed that the Kahn drug distribution organization was unlawfully prescribing opioids in small rural communities located in and around Fort Mohave, Arizona; Casper, Wyoming; and the Wind River Indian Reservation between January of 2011 and December of 2016.
Shakeel Kahn purported to be a pain management physician. He targeted vulnerable addicts as customers. They received prescriptions for highly addictive opioids at rapidly escalating volume and in potentially deadly combination with other drugs. It was not uncommon for customers to pay as much as $4,000 per month to Kahn in exchange for the prescription opioids. The patients who received the medications often had no visible source of income that would allow them to afford the prescriptions – other than what they were earning re-selling the drugs on the street. Tragically, at least one patient, Jessica Burch, died as a result of an overdose of medications received from Shakeel Kahn’s practice.
This case was investigated with the assistance of the Drug Enforcement Administration and the Wyoming Division of Criminal Investigation.
Buffalo Man Indicted by A Federal Grand Jury for Selling Heroin and FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury returned an indictment charging Jose Velez, 36, of Buffalo, NY, with five counts of distribution of heroin and fentanyl. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that according to the indictment, on four separate occasions between June 1 and July 12, 2017, the defendant distributed heroin and fentanyl in the Buffalo area.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is being detained.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo Man Going to Prison for More Than 21 Years for Selling Heroin and Fentanyl That Led to the Deaths of Two PeopleRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Aaron J. McDuffie, a/k/a “G”, 24, of Buffalo, NY, who was convicted of distribution of heroin and butyryl fentanyl causing death, and distribution of fentanyl, butyryl fentanyl, and furanyl fentanyl causing death, was sentenced to serve 262 months in prison by U.S. District Judge Lawrence J. Vilardo.
“Our community has adopted a multi-faceted approach—including enforcement, treatment, and prevention efforts—in our battle against the deadly opioid epidemic,” stated U.S. Attorney Kennedy. “While that approach has produced positive results, too many of our loved ones and friends continue to die. Just as the Erie County Opiate Task Force has sought to build on prior successes by devising new and innovative treatment and prevention efforts, this Office, together with our law enforcement partners, has been extremely forward-leaning in our effort to develop a comprehensive and relentless law enforcement plan to take-out those who are fill our streets with these deadly opioids. While no amount of jail time will ever bring back an overdose victim, aggressive prosecutions such as this, which result in long prison sentences, serve: to protect our community, by ensuring that this defendant will not have the opportunity to fatally poison anyone else in our community for a very long time; to deter others from engaging in future drug trafficking activity, by letting them know that they will face severe and certain punishment if they distribute drugs that injure or kill others; and finally, to reinforce the message that, in our Western New York community, all lives are deemed to be worthy of protection.”
Assistant U.S. Attorneys Misha A. Coulson and Wei Xiang, who handled the case, stated that on June 27, 2015, the defendant met with a repeat drug customer identified as “A.E,” a 24 year-old Cheektowaga man. McDuffie sold A.E. a quantity of powder that the defendant advertised as “fire,” a mixture that contained heroin and butyryl fentanyl. A.E. died as a result of using the drugs McDuffie provided to him.
On November 23, 2016, McDuffie met with another repeat drug customer identified as “D.M,” a 34 year-old West Seneca man, and sold him a quantity of powder that the defendant advertised once again as “fire.” This mixture contained fentanyl, butyryl fentanyl, and furanyl fentanyl. D.M. also died as a result of using the drugs McDuffie provided to him.
On November 30, 2016, law enforcement officers arrested McDuffie leaving his residence in Buffalo. The defendant was on his way to distribute a quantity of powder that contained fentanyl, butyryl fentanyl, and furanyl fentanyl. Under McDuffie’s living room couch, officers recovered a Hi-Point, .40 caliber semi-automatic handgun that was loaded with eight rounds of .40 caliber ammunition.
The sentencing is result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Division; Cheektowaga Police Department, under the direction of Chief David Zack; and the West Seneca Police Department, under the direction of Chief Daniel Denz.
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Belgian Citizen Pleads Guilty to Insider TradingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the Federal Bureau of Investigation, announced that NICHOLAS ZANEN, 46, of Belgium, pleaded guilty today before U.S. District Judge Alvin W. Thompson to a conspiracy charge stemming from his role in an insider trading scheme.
According to court documents and statements made in court, Zanen was employed by Cheniere Energy, Inc. (“Cheniere”), a Houston-based energy company whose common stock traded on the New York Stock Exchange under the symbol LNG. Zanen was a vice president of trading in the Cheniere’s United Kingdom Branch and was based in London. Cheniere maintained written policies prohibiting the direct or indirect disclosure of confidential information and requiring employees to prevent the disclosure of such confidential information. In his position, Zanen had access to material non-public information concerning Cheniere’s deals, financings, and other business information, and he was in possession of inside information prior to public announcements.
Between November 2011 and December 2012, Zanen disclosed Cheniere inside information to a friend, Francis J. Van Steenberge, and advised him whether to buy or sell Cheniere securities with the understanding that Van Steenberge would execute the security transactions on the basis of these instructions. Zanen and Van Steenberge generated approximately $1 million through this scheme.
Zanen also caused to be made materially false and fraudulent statements to the Financial Industry Regulatory Authority (“FINRA”) that he was unaware of the circumstances under which Van Steenberge gained knowledge of Cheniere’s business activities.
On June 4, 2014, a federal grand jury in New Haven returned an indictment charging Zanen with one count of conspiracy to commit securities fraud and three counts of securities fraud. Zanen, who was living abroad in London, Singapore and Belgium, was apprehended on April 22, 2019, in Pisa, Italy. He was extradited to the U.S. on June 13, 2019.
Zanen pleaded guilty to one count of conspiracy to commit securities fraud. Judge Thompson scheduled sentencing for November 4, 2019, at which time Zanen faces a maximum term of imprisonment of five years. Zanen has been detained since his arrest.
On April 4, 2014, Van Steenberge pleaded guilty to the same offense. He awaits sentencing.
In the companion case Securities and Exchange Commission v. Nicolas Zanen and Francis J. Van Steenberge, a judgment was issued ordering Zanen to pay a civil penalty of $432,775.70 to the SEC. Zanen has paid the penalty.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry. U.S. Attorney Durham thanked the U.S. Department of Justice’s Office of International Affairs for its assistance in this matter, in particular former DOJ Rome Attache’ Cristina Posa.
U.S. Attorney Durham stressed that protecting the integrity of the capital markets and ensuring that individuals comply with our nation’s securities laws is a priority of the Justice Department. Individuals who believe that they have been victimized by this insider trading scheme should contact the FBI in New Haven at 203-777-6311.
Barre Man Indicted on Firearms ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Demetericius Campbell, age 42, of Barre, Vermont, has been indicted on three federal firearms charges. Specifically, he is charged with two counts of making false statements to a gun store in connection with attempted firearms purchases, and one count of possessing a firearm while subject to a restraining order. At his arraignment in U.S. District Court in Burlington last Friday, August 9, 2019, Campbell pleaded not guilty to all counts. The government has filed a motion asking United States Magistrate Judge John M. Conroy to order Campbell detained in the custody of the U.S. Marshal’s Service pending disposition of the charges. A hearing on that motion is set for Tuesday, August 13, 2019, at 1:30 p.m.
Court records show that on December 4, 2018, the Vermont Superior Court in Washington County issued a 6-month extended relief from abuse order against Campbell. The protected parties were his ex-wife and three children. Among other things, the order restrained Campbell from threatening, abusing, and using physical force against the petitioning parties. Campbell was present for the hearing on the petition and was served by hand with the relief from abuse order. Under federal law, the order prohibited Campbell from possessing firearms and a portion of the paperwork served upon him notified him that certain qualifying restraining orders prohibited him from possessing firearms under federal law. On December 6, 2018, Campbell attempted to purchase two pistols at R&L Archery in Barre. On the firearm transaction form, Campbell falsely stated that he was not subject to a restraining order prohibiting him from threatening an intimate partner. R&L denied him the purchase because the background check revealed the existence of the restraining order. On January 25, 2019, Campbell attempted to purchase three pistols at R&L, again falsely denying on the transaction paperwork that he was the subject of a restraining order. R&L denied the purchase for the same reason. In February 2019, in the course of the execution of a search warrant at Campbell’s residence, law enforcement found a firearm and ammunition in his bedroom. The restraining order prohibited his possession of these items.
The Indictment is an accusation only and Campbell is presumed innocent until and unless proven guilty. The maximum possible sentence on each federal charge is 10 years of imprisonment. However, any sentence would be informed by the U.S. Sentencing Guidelines.
U.S. Attorney Christina E. Nolan thanked the ATF and the Barre City Police Department for their investigative work and collaboration. She stated: “We can, and must, use our federal gun laws to address and prevent domestic violence throughout Vermont. Roughly half of Vermont’s homicides arise in the domestic violence context and a substantial number of them are committed with firearms. We will continue to take guns out of the hands of dangerous individuals who possess or attempt to possess them unlawfully. This will continue to be an urgent priority, as it is quite literally a matter of life and death.”U.S. Attorney Nolan is representing the United States in this case. Campbell is represented by Robert Katims, Esq.
Baltimore Felon Sentenced to Seven Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Justin Hopkins, age 28, of Baltimore, Maryland, to seven years in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Justin Hopkins illegally possessed a firearm, which he fired at the father of his girlfriend’s child—in front of the child—in order to settle a dispute” said U.S. Attorney Robert K. Hur. “Hopkins will now serve more than seven years in federal prison, where there is no parole—ever. We must change the culture of gun violence in Baltimore. Please, put down the gun. You may save a life, including your own.”
According to his guilty plea, on February 22, 2018, Hopkins and his girlfriend were awaiting the arrival of her son at their residence in the 1900 block of McCulloh Street in North Baltimore. Prior to the child arriving at the residence, Hopkins and the child’s father, D.J., who was bringing the child to the house, had engaged in verbal altercations that involved threats of physical harm.
Hopkins was waiting outside when D.J. arrived at the house with his girlfriend, K.C., and his child. The two men immediately confronted each other. D.J. challenged Hopkins to a fight, and after exchanging threats, Hopkins stated, “I got something for you,” and went into the house. Within 30 seconds, Hopkins leaned out of a top floor window, pointing a gun at D.J. and K.C. D.J. walked into the middle of the street, daring Hopkins to shoot him. Hopkins fired multiple rounds, missing D.J. D.J. and his girlfriend entered the car to flee and Hopkins shot again, shattering the sunroof of their vehicle. D.J. and K.C. called the police and multiple officers responded.
D.J. and K.C. flagged down an officer in the area and pointed to Hopkins from half-a-block away. The officer saw Hopkins running away with a silver backpack with spikes on it. Officers followed Hopkins through a park to the 500 block of Presstman Street, where Hopkins emerged from the park and was apprehended, but without the backpack. An officer returned to the park and recovered a silver backpack matching the description of the backpack carried by Hopkins. Inside the backpack, officers recovered a .22-caliber short barreled rifle and spent ammunition. The barrel and handle of the rifle had been sawed off, with a barrel length less than 16 inches. Hopkins was prohibited from possessing a firearm or ammunition as a result of a previous felony conviction. When Hopkins saw the officer emerging from the park with the backpack, he fled again, but was recaptured by officers a block away. After his arrest, Hopkins made a recorded jail call to his girlfriend and admitted shooting at the vehicle driven by D.J.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Goldsticker and David Metcalf, who prosecuted the case.
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Another Laredoan Arrested for Transporting AliensRead the Press Release
LAREDO, Texas – A 25-year-old Laredo resident has been arrested on charges of transporting an undocumented alien after another local violent crash, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested Francisco Javier Quiroga Aug. 9, 2019. He is set to make his initial appearance today at 11:00 a.m. before U.S. Magistrate Judge Sam Sheldon.
The criminal complaint alleges that on Aug. 9, law enforcement observed multiple people being loaded into a vehicle near the Rio Grande River in Laredo. They attempted to perform an immigration inspection but the vehicle failed to stop, according to the charges. It crashed and rolled over. Authorities then observed people running out of the vehicle, according to the allegations.
According to the complaint, there were eight individuals in the vehicle, including Quiroga. The seven others were all allegedly undocumented aliens. One of them suffered a fractured sternum and three broken ribs as a result of the incident, according to the complaint.
If convicted of transporting an undocumented alien causing serious bodily injury, Rodriguez faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Allen Woman Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Allen, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 12, 2019, by U.S. District Judge Roberto A. Lange.
Clara Poor Bear, age 28, was sentenced to 60 months in federal prison, followed by 4 years of supervised release, and ordered to pay a $1,000 fine and a $100 special assessment to the Federal Crime Victims Fund.
Poor Bear was indicted by a federal grand jury on August 14, 2018. She pled guilty on May 29, 2019.
The conviction stemmed from a conspiracy that occurred between October 1, 2016, through January 31, 2017, where Poor Bear knowingly and intentionally conspired with others, and distributed between 350 and 500 grams of methamphetamine on the Rosebud Indian Reservation.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Poor Bear was immediately turned over to the custody of the U.S. Marshals Service.
10 August 2019
Statement from Attorney General William P. Barr on the Death of Jeffrey EpsteinRead the Press Release
Attorney General William P. Barr issued the following statement:
“I was appalled to learn that Jeffrey Epstein was found dead early this morning from an apparent suicide while in federal custody. Mr. Epstein’s death raises serious questions that must be answered. In addition to the FBI’s investigation, I have consulted with the Inspector General who is opening an investigation into the circumstances of Mr. Epstein’s death."
Statement of Manhattan U.S. Attorney on the Death of Defendant Jeffrey EpsteinRead the Press Release
Manhattan U.S. Attorney Geoffrey S. Berman said: “Earlier this morning, the Manhattan Correctional Center confirmed that Jeffrey Epstein, who faced charges brought by this Office of engaging in the sex trafficking of minors, had been found unresponsive in his cell and was pronounced dead shortly thereafter of an apparent suicide. Today’s events are disturbing, and we are deeply aware of their potential to present yet another hurdle to giving Epstein’s many victims their day in Court. To those brave young women who have already come forward and to the many others who have yet to do so, let me reiterate that we remain committed to standing for you, and our investigation of the conduct charged in the Indictment – which included a conspiracy count – remains ongoing.
We continue to urge anyone who feels they may be a victim or have information related to the conduct in this case to please contact 1-800- CALL FBI.”
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9 August 2019
Young Laredoan to Appear in Court After Violent CrashRead the Press Release
LAREDO, Texas – A 23-year-old has been charged with transporting aliens following a vehicle crash that seriously injured eight, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested Oziel Rodriguez Aug. 2 and made his initial appearance the following Monday. Today, he is set to make his preliminary examination and detention hearing at 10:00 a.m. before U.S. Magistrate Judge Sam Sheldon.
The criminal complaint alleges that on Aug. 2, law enforcement noticed a sensor alert. Shortly thereafter, they witnessed a vehicle leaving the area, according ot the charges. The vehicle allegedly began to accelerate and eventually struck a median, causing it to rollover.
According to the complaint, a total of 12 people were in the vehicle at the time of the rollover, including Rodriguez. The other 11 were determined to be undocumented aliens, eight of whom sustained serious bodily injuries, the complaint alleges.
Rodriguez allegedly left the scene of the accident. The complaint alleges that authorities located him and noted injuries to his chest and arm consistent with those caused by a vehicle accident.
If convicted of transporting an undocumented alien causing serious bodily injury, Rodriguez faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol and the Laredo Police Department. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Warren man sentenced to 60 years in prison for selling heroin that resulted in the overdose death of woman, as well as other crimesRead the Press Release
A Warren man was sentenced to 60 years in federal prison for selling heroin that resulted in the overdose death of a woman, as well as other crimes.
A jury earlier this year found John G. Simer II, 40, guilty of all 13 counts he faced, including: distribution of heroin that resulted in death, possession with intent to distribute heroin, possession with intent to distribute cocaine, being a felon in possession of firearms, using firearms in furtherance of drug trafficking and being a felon in possession of body armor.
U.S. District Court Judge Christopher Boyko sentenced Simer to 55 years in prison, plus five years for having a firearm in relation to drug trafficking. That sentence must be served consecutively to the underlying prison sentence.
The judge also ordered Simer to pay $2,869.64 to the dead woman's family related to funeral expenses.
Simer sold heroin on March 20, 2017. A Warren woman ingested the heroin and fatally overdosed, according to court documents and trial testimony.
Simer possessed heroin and cocaine on April 19, 2017, when police searched his residence. He also possessed a Smith & Wesson .40-caliber pistol, 58 rounds of ammunition and body armor on that day, despite previous convictions for aggravated robbery and firearms offenses that made it illegal for him to have a firearm or body armor, according to court documents and trial testimony.
“This defendant was a one-man crime wave,” U.S. Attorney Justin Herdman said. “He sold heroin that killed a young mother and was found to have carfentanil, fentanyl, heroin, cocaine, firearms, ammunition and body armor. Our community is safer with him locked up for decades.”
Warren Police Chief Eric Merkel said: "I hope this case serves as a cautionary tale to anyone who thinks their criminal liability ends after they have sold their drugs. We will continue to investigate these overdose deaths and bring those responsible to justice. I would like to thank Detective Melanie Gambill and the Warren Street Crimes Unit for all of their hard work on this case."
This case was investigated by the Warren Police Department’s Street Crimes and prosecuted by Assistant U.S. Attorney Segev Phillips.
Ulster County Man Found Guilty of Sexually Exploiting a Child and Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Matthew Osuba, 34, of Saugerties, New York, was found guilty today of sexual exploitation of a child, of distributing child pornography, and of possessing child pornography following a three-day jury trial. The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The evidence at trial showed that Osuba videotaped himself sexually exploiting a minor child. The trial evidence also included that he sent three images of child pornography over the internet using a chat application on his mobile phone, and possessed three additional images of prepubescent girls engaged in sexually explicit conduct.
Sentencing is set for December 12, 2019, before Senior United States District Judge Thomas J. McAvoy. Osuba faces a minimum sentence of 15 years, and a maximum sentence of up to 70 years in prison, to be followed by a term of supervised release of up to life. He will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI, New York State Police, the Town of Colonie (New York) Police Department, and the Warren County (New York) Sheriff’s Department. It is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Shira C. Hoffman.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Two Charged for Hoax Bomb Threat at Deschutes County CourthouseRead the Press Release
EUGENE, Ore.—A federal criminal complaint was unsealed today charging two defendants with placing a hoax bomb at the Deschutes County Courthouse on July 29, 2019.
Kellie Kent Cameron, 31, and Jonathan Tyler Allen, 23, both of Bend, Oregon, were charged with conspiracy to make a threat regarding explosive materials in violation of 18 U.S.C. §§ 844(e) and (n) and false information and hoaxes in violation of 18 U.S.C. § 1038.
This case is being investigated by the FBI and the Deschutes County Sheriff’s Office and is being prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Toledo man charged in federal court for making threats against a member of Congress and illegally having ammunitionRead the Press Release
A Toledo man was charged in federal court for making threats against a member of Congress and illegally having ammunition.
Timothy J. Ireland, Jr., 41, was charged in U.S. District Court in Toledo with one count of being a felon in possession of a firearm, one count of being a fugitive in possession of a firearm and one count of making interstate threats.
According to a criminal complaint filed in the case:
The United States Capitol Police (USCP) received information on July 23 that threatening statements were posted on Facebook. The statements were perceived to be threats against a member of the U.S. House of Representatives. A screen shot was provided to USCP of a news story related to the member of Congress with linked comments that stated: “She should be shot. Can’t fire me, my employer would load the gun for me.”
The statement was made from a Facebook page whose listed user was Tim Ireland of Toledo, Ohio, according to the complaint.
A criminal history check revealed Ireland had outstanding warrants for felony failure to appear in Sarasota County, Florida, and a misdemeanor failure to appear related to a marijuana possession charge in Cook County, Georgia. Further review revealed Ireland had been convicted in 1996 in Sarasota County of four felony counts of dealing in stolen property.
USCP personnel called Ireland on August 2. He stated he made the statements and was very proud of the post he made. He also stated he has firearms and always carries them concealed, according to the complaint.
USCP and ATF agents executed a search of Ireland’s residence at 234 Kosciusko Street in Toledo on August 8. He was taken into custody on the warrant outstanding in Florida. A search revealed three rounds of .32-caliber ammunition and four rounds of .45-caliber ammunition.
“There is absolutely no place in the marketplace of ideas for threats of violence against any person, especially those who are elected to represent the American people,” U.S. Attorney Justin Herdman said. “Disagreement on political issues cannot lead to acts of violence, and if it does, we will seek federal prison time.”
“The mission of the United States Capitol Police is to protect the Congress, the U.S. Capitol, and all who work and visit here. I want to thank our special agents for their excellent work in investigating this case as well as our law enforcement partners and the U.S. Attorney’s Office for their assistance,” said U.S. Capitol Police Chief Steven A. Sund.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the United States Capitol Police, Bureau of Alcohol, Tobacco, Firearms and Explosives and Toledo Police Department. It is being prosecuted by Assistant U.S. Attorney Matthew Simko and Robert Melching.
A charge is only an allegation and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
A copy of the criminal complaint can be found here:
Three Parents Charged with Stealing Social Security Benefits from ChildrenRead the Press Release
COLUMBUS, Ohio – Three parents have been charged and two have pleaded guilty to receiving their children’s Social Security disability payments while the children were not in their care.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Tracey Thanos, Special Agent in Charge, Social Security Administration Office of Inspector General, announced the charges.
Shannon Scott, 35, of Columbus, pleaded guilty before Magistrate Judge Norah McCann King on Wednesday. Scott lost custody of her child in 2014 but falsely represented to Social Security that her child was still living with her in order to continue receiving her child’s disability payments through July 2018. In total, she fraudulently obtained more than $35,000.
Jennifer Riggs, 40, of Heath, pleaded guilty before Magistrate Judge Norah McCann King in June. In 2016, Riggs lost custody of her child but continued accepting the child’s Social Security benefits through May 2018, receiving nearly $17,000 in disability payments.
Maddo Tamboura, 42, of Whitehall, was charged by a federal grand jury on Thursday and arrested today. According to his indictment, Tamboura kept Social Security payments for two children that did not live with him, totaling more than $19,000.
Converting Supplemental Security Income benefits is a federal crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigations by the SSA’s Office of the Inspector General and Special Assistant United States Attorney Timothy Landry, who is prosecuting all three cases.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Three Orlando Men Indicted for Scheme to Facilitate Employment of Illegal Aliens and Evade Payroll Taxes and Workers’ Compensation LawsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging three Honduran nationals, Gregorio Fuentes-Zelaya (26), Santiago Erazo-Zelaya (25), and Dennis Barahona (36), with conspiracy to commit wire fraud. Fuentes-Zelaya is also charged with one count of conspiracy to commit tax fraud, five counts of wire fraud, and two counts of tax fraud. Additional charges against Erazo-Zelaya include one count of conspiracy to commit tax fraud, one count of wire fraud and one count of tax fraud. Barahona is also charged with one count of wire fraud.
Each wire fraud count carries a maximum penalty of 20 years in federal prison and each tax fraud count carries a maximum penalty of 5 years’ imprisonment. The indictment also notifies the defendants that the United States intends to seek forfeiture of a total of $1,367,625, the approximate amount obtained as a result of the wire fraud offenses, as well as a 2014 Land Rover, and two bank accounts (totaling $230,764) that were utilized during the scheme.
Fuentes-Zelaya and Erazo-Zelaya are Honduran citizens who are illegally present in the United States. On May 8, 2019, an immigration judge ordered Erazo-Zelaya to be deported to Honduras. Barahona is a naturalized U.S. citizen from Honduras.
According to the indictment, the three men established shell companies that purported to be the employers of construction work crews that were mostly made up of illegal aliens. The shell companies entered into agreements with construction contractors in which the shell companies purported to be subcontractors. The workers then performed construction work as directed by the contractors, but were paid through the shell companies. By obtaining and paying the workers through the shell companies, the contractors avoided responsibility for ensuring that the workers were legally authorized to work in the United States, that required state and federal payroll taxes were paid, and that adequate workers’ compensation insurance was provided.
Florida law requires any business that engages in construction work to secure and maintain workers’ compensation insurance. The defendants applied for workers’ compensation insurance policies to cover a few employees and a minimal payroll. The defendants then “rented” those insurance policies to numerous construction work crews employing hundreds of workers. The contractors wrote payroll checks to the shell companies for work performed by the work crews and then deposited those payroll checks into a bank and distributed the payroll to the work crew leaders, who in turn paid the workers. The defendants kept at least 6% of the amount of each payroll check as a fee.
During the period of the scheme, the defendants cashed payroll checks totaling approximately $22,793,748, and their fees totaled approximately $1,367,625. Had workers’ compensation policies been purchased for the payroll amount, the policy premiums would have totaled approximately $3.6 million. The policies purchased and then “rented” out by the defendants were for estimated payrolls of $80,800 to $100,800, and the insurance company issued those policies for annual premiums ranging from $15,206 to $31,268.
Although a total of almost $23 million of payroll passed through the shell companies, neither the defendants nor the contractors remitted payroll taxes to the IRS. According to the IRS, the estimated amount of payroll taxes due on the total wages is approximately $5.3 million.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
State Department Official Pleads Guilty to Procurement FraudRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C., woman pleaded guilty today to disclosing confidential State Department bid proposals in an effort to help a furniture company executive win a lucrative government contract to provide furniture to a United States embassy abroad.
According to court documents, Patricia DeLaughter, 69, was a State Department official who was responsible for procuring furniture for United States embassies. In or around December 2016, the State Department was constructing a new embassy in a foreign nation. DeLaughter and another Department official participated in the process of soliciting bid proposals from contractors for the procurement of furniture for the new embassy’s offices.
From in or around December 2016 to in or around March 2017, DeLaughter and the other State Department official knowingly disclosed to Steven Anstine, the vice president of sales for an American furniture manufacturer, the confidential bid prices and design plans of at least three of Anstine’s competitors. DeLaughter knowingly disclosed this information in order to give Anstine—with whom DeLaughter had a social relationship—a competitive advantage in securing the procurement contract for the new embassy. The information that DeLaughter and her coworker gave Anstine enabled him and his company to win the contract with a bid of approximately $1.56 million.
According to DeLaughter’s admissions, DeLaughter made intentionally false statements to agents investigating her conduct. She falsely told State Department Office of Inspector General special agents that she had nothing to do with the embassy furniture project. She also falsely told the agents that she did not have a social relationship with Anstine. In fact, DeLaughter and Anstine had a social relationship and attended dinners, sporting events, and concerts together. Anstine paid at least a portion of DeLaughter’s expenses for these events.
In June 2019, Anstine pleaded guilty to one count of illegally obtaining contractor bid or proposal information in the U.S. District Court for the District of South Carolina.
DeLaughter pleaded guilty to one count of illegally disclosing contractor bid or proposal information and faces a maximum penalty of five years in prison when sentenced on November 8. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division, and Steve A. Linick, Inspector General for the Department of State, made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the plea. Special Assistant U.S. Attorney Russell L. Carlberg, Deputy Chief Robert J. Heberle and Trial Attorney John P. Taddei of the Criminal Division’s Public Integrity Section are prosecuting 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. 1:19-cr-205.
St. Francis Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Aleah Walking Bull, age 24, was indicted on November 14, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 8, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 14, 2018, Walking Bull did forcibly assault, resist, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services.
The charge is merely an accusation and Walking Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Walking Bull was released on bond pending trial. A trial date has not been set.
South Florida Resident Sentenced to 70 months for Investment Fraud Scheme after Attempting to Flee the CountryRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the Florida Office of Financial Regulation (OFR) announced that Jorge Garrido, 45, of Miami, Florida, was sentenced by U.S. District Judge Cecilia Altonaga on August 7, 2019, to 70 months in prison. Garrido was also ordered to pay approximately $5.7 million in restitution after previously pleading guilty to orchestrating the investment fraud scheme (Case No. 18-20784-CR-ALTONAGA).
According to the court record, from 2010 to 2017, Garrido served as the president, director and registered agent of G & C Investment Corp (G&C). In those capacities with G&C, Garrido solicited investors for advance contributions of as much as $1 million, which Garrido stated he would use to monetize bank instruments, engage in platform trading, or fund humanitarian platforms, among other things. Garrido promised staggering returns to his investors of as much as 15- or 20-times their initial contribution. Garrido also claimed he could guarantee the safety of the investors’ principal by asserting he owned U.S. Treasury Notes which would serve as collateral for the investments. In reality, the Treasury Notes did not exist.
Garrido failed to provide promised returns to investors, and instead used nearly $5 million for his personal benefit. He then attempted to flee the country in March 2017 after learning of the Government’s case against him, and was apprehended at Palm Beach International Airport by the FBI as he was preparing to board a private charter jet headed for Europe.
Judge Altonaga ordered Garrido’s sentence to be run consecutively after he completes a 46-month sentence he is currently serving for a separate mortgage fraud case (Case No. 15-20973-CR-WILLIAMS).
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and OFR in this matter. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Sioux City Man Sentenced for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
A man from Sioux City, IA was sentenced August 9, 2019, to more than 9 years in federal prison.
Jesus Giron, age 22, from Sioux City, IA received the prison term after a pleading guilty to possession of a firearm in furtherance of a drug trafficking crime.
Evidence at his detention, change of plea, and sentencing hearings revealed on or about May 20, 2018, was stopped by law enforcement after burglarizing a motor vehicle in Sioux City, Iowa. Upon his arrest officers located 15 one-gram baggies of cocaine and $1,041.00 on his person.
Once at the Woodbury County Jail officers located 15 more baggies, each containing a half-gram of cocaine, in Giron’s waistband. A search warrant at his home revealed drug packaging materials, marijuana, and ammunition. In his living room more marijuana and five baggies of cocaine were discovered. In his basement, officers located a large duffel bag with a large quantity of marijuana and cocaine inside. Also in this bag was a handgun, digital scales, and drug packaging materials. Almost directly above where this bag was located, on top of an air duct, was a plastic shopping bag containing $5,000.
Giron was already a state felon, on state probation, and awaiting resolution of other state felony charges when these discoveries were made.
Giron was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Giron was sentenced to 117 months’ imprisonment and he must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4048.
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Second Former NYPD Officer Sentenced to Federal Prison for Social Security Disability Fraud and Tax EvasionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GERARD SCPARTA, a former New York City Police Department (“NYPD”) officer, was sentenced today to 18 months in prison for fraudulently obtaining over approximately $630,000 in disability benefits from the Social Security Administration (“SSA”) and underreporting income on his taxes by approximately $268,000. At the same time SCPARTA was fraudulently collecting disability benefits, he earned a total of approximately $1.6 million working as a security guard and host at a strip club (the “Strip Club”) located in Manhattan. SCPARTA was sentenced by U.S. District Judge Alison J. Nathan, before whom he had previously pled guilty to tax evasion and theft of government property.
Earlier this year, in a related case also involving a former NYPD police officer and New York City Fire Department (“FDNY”) firefighter, SCOTT MARAIO was sentenced to one year and one day in prison on January 23, 2019 by U.S. District Judge Sidney H. Stein for fraudulently collecting over approximately 360,000 in Social Security benefits over a period of ten years by lying repeatedly to the SSA about his purported inability to work due to disability, when he also worked at the Strip Club and in other employment.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Gerard Scparta, a former NYPD officer, illegally collected over $630,000 in disability benefits by claiming that he could not work in any capacity due to anxiety and depression. During the very same time period, Scparta felt well enough to earn over $1.6 million working at a Manhattan strip club. Gerard Scparta perverted the Disability Insurance system for his own personal gain, depleting a system intended for people with legitimate claims who depend on those benefits for their well-being. For his reprehensible conduct, Scparta has been sentenced to federal prison and will trade velvet ropes for steel bars.”
According to documents filed in Manhattan federal court:
The SSA administers Social Security Disability Insurance (“SSD”), a federal benefits program that provides monthly cash benefits to individuals who have worked in the past and paid into Social Security, but who can no longer engage in any substantial gainful activity due to medical disabilities. SSD is a disability benefit available only to individuals who have a qualifying disability and are unable to work in any profession. In order to receive SSD, a beneficiary must certify that he or she is incapable of performing any gainful activity due to disability. In addition, a beneficiary must report to the SSA all sources of income from work activity and any changes in the beneficiary’s medical condition, which are taken into account in determining whether the beneficiary is entitled to payments and the amount of those payments.
GERARD SCPARTA
Between in or about 1986 and in or about 1997, SCPARTA worked as a police officer with the NYPD. In or about 1997, after reportedly sustaining an injury at the age of 32, SCPARTA was referred to an individual (“CC-1”) who helped him fraudulently obtain disability benefits. Specifically, CC-1 submitted SSD application materials signed by SCPARTA that falsely stated, among other things, that SCPARTA suffered from severe depression and anxiety, could not do anything around his house, and was unable to work in any capacity. In addition, CC-1 coached SCPARTA to make the same false statements to physicians who examined SCPARTA for the purpose of establishing his disability and submitting reports to the SSA. For example, in one examination by a physician, SCPARTA pretended that he did not know where he was, could not remember the last four vice presidents, and had trouble repeating numbers that were told to him. Based on these false statements and representations by SCPARTA in documents and reports submitted to the SSA, the SSA approved SCPARTA to receive disability benefits from in or about 1997 onward.
In addition to lying about his disability status and inability to work, SCPARTA falsely claimed on multiple forms submitted to the SSA that he did not work, and failed to report earnings from employment as required. In fact, from in or about April 2004 up to and including at least in or about December 2017, SCPARTA worked as a security guard and host at the Strip Club. From in or about 1997 up to and including in or about 2017, SCPARTA received a total of over approximately $638,000 in disability benefits for himself, his wife, and his children, while at the same time SCPARTA earned approximately $1.6 million from his work at the Strip Club.
Further, from in or about 2012 up to and including in or about 2017, SCPARTA engaged in tax evasion by concealing and attempting to conceal from the IRS the nature and extent of his income. Specifically, SCARPTA utilized a nominee company registered to his wife to report income that SCPARTA earned from the Strip Club and falsely underreported that income by a total of approximately $268,602 for the tax years 2012 through 2016.
SCOTT MARAIO
From in or about 1985 through in or about 1986, MARAIO worked as an NYPD police officer. Beginning in or about July 1987, MARAIO began working as a firefighter with the FDNY. In or about January 2002, at the age of 37, MARAIO stopped working as a firefighter due to a claimed disability, and began receiving disability benefits. On multiple forms submitted to the SSA, MARAIO falsely claimed he could not work due to problems with his neck and back and failed to report earnings from employment as required. In fact, from in or about September 2008 through in or about August 2014, MARAIO worked as a security guard at the Strip Club. In addition, from in or about July 2012 through at least in or about February 2018, MARAIO worked for a staffing company (the “Staffing Company”) in various positions relating to fire safety on construction sites, including as a fire safety manager and fireguard. From in or about October 2008 through in or about February 2018, MARAIO received a total of over approximately $364,000 in disability benefits for himself, his wife, and his children, while at the same time MARAIO earned a total of approximately $450,000 from his employment at the Strip Club and with the Staffing Company.
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In addition to his prison sentence, SCPARTA, 54, of Campbell Hall, New York, was sentenced to 3 years of supervised release and ordered to make restitution in the amount of $726,517 and to forfeit the $638,586 in Social Security disability benefits he obtained fraudulently.
MARAIO, 54, of Staten Island, New York, was also sentenced to three years of supervised release and ordered to pay restitution and forfeiture of $364,040.
Mr. Berman praised the outstanding investigative work of the United States Social Security Administration, Office of the Inspector General, and the Internal Revenue Service, Criminal Investigation Division. Mr. Berman also thanked the Manhattan District Attorney’s Office and the New York City Department of Investigation for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Seattle Felon Indicted for Possession of a Dozen Weapons Including Ar-Style Assault RiflesRead the Press Release
A 66-year-old Seattle resident was indicted today by a grand jury for being a felon in possession of firearms, announced U.S. Attorney Brian T. Moran. PARK QUAN was arrested July 29, 2019, after FBI agents investigating one of his roommates in connection with a data theft, served a search warrant on his home and discovered a cache of weapons. QUAN has two federal convictions and is prohibited from possessing firearms. QUAN remains in federal custody and will be arraigned on the indictment on August 22, 2019.
“Federal law enforcement makes it a priority to get weapons out of the hands of those who illegally possess them,” said U.S. Attorney Brian T. Moran. “I commend the FBI agents who went into a potentially-dangerous situation and secured these weapons without any shots fired. The U.S. Attorney’s office works every day with state, local, tribal and federal law enforcement to keep our communities safe.”
According to records filed in the case, agents investigating the data theft were sweeping the residence for safety when they observed numerous firearms in a bedroom used by QUAN. Agents applied for and got a second judicially-authorized search warrant and began collecting the firearms. The cache of weapons included four semi-automatic handguns, eight rifles, six of them semi-automatic rifles including two AR-style assault rifles.
QUAN has a 1983 conviction in Washington for being a felon in possession of explosives and a 1991 conviction in Texas for possessing an unregistered machine gun. QUAN also has a military court-martial conviction for soliciting the theft of military weapons. Due to those convictions, QUAN is prohibited from possessing firearms.
Being a felon in possession of a firearm is punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorneys Steven Masada and Andrew Friedman.
Rock Hill Man Sentenced to Federal Prison on Firearm ChargeRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Richard Darryl Moon, age 55, of Rock Hill, was sentenced to 2 years in federal prison after pleading guilty to being a felon in possession of firearms and ammunition.
Evidence presented to the court showed that the York County Sheriff’s Department was notified by an online gun distributor after Moon, a felon, had attempted to sell a SKS rifle online. That, coupled with information that Moon was selling firearms from his residence in Rock Hill, led the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the York County Multi-Jurisdictional Drug Enforcement Unit to open an investigation. Two undercover buys of firearms were made from Moon at his residence in September 2016. During those undercover buys, Moon was seen with assault rifles, handguns, and shotguns. Thereafter, in October 2016, a federal search warrant was executed upon Moon’s residence, where agents recovered four rifles, a shotgun, two handguns, and hundreds of rounds of ammunition. Agents also recovered a handgun from Moon’s truck. Moon, a felon, admitted to buying and selling firearms for six years, both online and in person.
Moon is prohibited under federal law from possessing firearms and ammunition. His prior state convictions include: possession of cocaine (1988), driving under the influence 3rd offense (1996), criminal domestic violence (2002), disorderly conduct (2002), criminal domestic violence of a high and aggravated nature (2002), and accessory after the fact of murder (2004).
United States District Judge Mary Geiger Lewis of Columbia sentenced Moon to 24 months in federal prison, to be followed by a 2-year term of court-ordered supervision. There is no parole in the federal system. In light of Moon’s current medical condition, the court allowed Moon to delay his report date to federal prison until the fall.
The case was investigated by ATF and the York County Multi-Jurisdictional Drug Enforcement Unit. 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.
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Raleigh Business Owner Charged with Defrauding Protein Powder ConsumersRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that a federal grand jury has returned a 41-count Indictment, charging ABHISHEK KRISHNAN, owner of American Pure Whey, LLC, of mail fraud, introducing adulterated and misbranded foods into interstate commerce, and money laundering. The Indictment seeks forfeiture of approximately six million dollars and several Raleigh, North Carolina real properties.
According to the Indictment, American Pure Whey sold protein powders in bulk to other dietary supplement manufacturers and in retail quantities to the public. Other dietary supplement suppliers purchased American Pure Whey products, but packaged them with their own labels, similarly reflecting high protein and low carbohydrate content. The American Pure Whey products were manufactured and packaged in New Bern, North Carolina.
KRISHNAN promoted the products on the website, www.americanpurewhey.com, which claimed the company followed strict quality control standards to produce the highest quality protein powder. In a single 33 gram serving, the website represented that the protein powder products contained as high as 29 grams of protein and as low as 1.58 grams of carbohydrates. The labels affixed to the products manufactured by American Pure Whey also represented the high protein and low carbohydrate amounts.
The Indictment alleges, however, that contrary to the representations on American Pure Whey’s website and on the product labels, the protein powder products manufactured and sold by American Pure Whey contained markedly lower protein and significantly higher carbohydrate contents in order to fraudulently increase the companies’ profit margin. The Indictment further alleges that between August 2015 and December 2018, U.S. Food and Drug Administration (FDA) agents acting in an undercover capacity and posing as consumers made six purchases on American Pure Whey’s website of various types of protein powder products. FDA analysis for protein and carbohydrate contents revealed significantly less protein and substantially more carbohydrates per serving than represented on the respective labels. For example, the 100% Whey Protein Isolate, cake batter flavor, purchased in December 2018, contained only ten grams of protein when the label declared 29 grams per serving. Further, there was 27 grams of carbohydrates when the label represented just 1.58 grams per serving.
The Indictment also alleged that contrary to KRISHNAN’S statements about American Pure Whey’s strict quality control standards, APW lacked basic quality control procedures in the manufacturing, packaging and labeling of APW products. The Indictment further describes KRISHNAN and American Pure Whey’s past interactions with the United States Food and Drug Administration (FDA), which conducted three regulatory inspections of American Pure Whey’s facilities between September 2015 and July 2019. At the close of each inspection, the FDA observed and noted numerous deficiencies in American Pure Whey’s manufacturing processes and procedures, including repeated issues with APW’s master manufacturing and batch production records. In addition, the FDA sent a Warning Letter to KRISHNAN in May 2016, informing him that all of American Pure Whey’s protein powder products were adulterated because they were manufactured under conditions that did not conform to current good manufacturing practice, and at least one product was misbranded because FDA analysis revealed that the product contained less than half the amount of protein declared on the label. KRISHNAN repeatedly responded to the FDA stating that he would take corrective actions to address the deficiencies.
Mr. Higdon commented: “This case is about honesty and integrity when offering a product to the public. And those principles are critical when a manufacturer offers food and dietary products. The FDA and the Justice Department are committed to ensuring that the public knows what it is getting when it purchases products of this sort. And we are committed to prosecuting those who willfully ignore the law.”
“American consumers rely on the FDA to ensure that their foods, including dietary supplements, are safe, wholesome, and properly labeled. When criminals manufacture and sell adulterated and misbranded dietary supplements, they not only cheat consumers, but also place the U.S. public health at risk,” said Justin C. Fielder, Acting Special Agent in Charge, FDA Office of Criminal Investigations, Miami Field Office. “FDA remains fully committed to pursuing and bringing to justice those who ignore the law.”
Investigation of this case was conducted by the FDA, Office of Criminal Investigation, and the United States Department of Homeland Security. The prosecution is being handled by Assistant United States Attorney Susan B. Menzer and Special Assistant United States Attorney and FDA Associate General Counsel Shannon M. Singleton.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.