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8 August 2019
Nebraska Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Gordon, Nebraska, man convicted of Sexual Abuse of a Minor was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lawrence Martin, Jr., age 20, was sentenced on August 2, 2019, to time served, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Martin was indicted by a federal grand jury in May 2018. The charge related to Martin engaging in a sexual relationship with a 13-year old female in 2017 and 2018.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Numerous Previously Detained Aliens with Small Children Released on Humanitarian GroundsRead the Press Release
Jackson, Miss. – As part of an immigration enforcement operation throughout central Mississippi yesterday, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) concluded their processing of detained aliens last night and followed their procedures by releasing many on humanitarian grounds, announced Jere Miles, HSI Special Agent in Charge in New Orleans, and Mike Hurst, U.S. Attorney for the Southern District of Mississippi.
Preliminarily, it appears that approximately 30 detained aliens were released yesterday on humanitarian grounds at the individual sites where they were initially encountered, and another 270 detained aliens were released after being processed by HSI at the National Guard base in Pearl and returned to the place where they were originally encountered.
Pursuant to HSI procedures as part of this operation, all those detained yesterday were asked when they arrived at the processing center whether they had any children who were at school or childcare and needed to be picked up. In order to make it possible for detained aliens to contact family members and address childcare issues, HSI made cell phones available for use by detained aliens to make arrangements for the care of their children or other dependents. In addition, HSI had liaison officers working with the school districts to facilitate this process.
As part of HSI procedures pursuant to this operation, if HSI encountered two alien parents with minor children at home, HSI released one of the parents on humanitarian grounds and returned that individual to the place from which they were arrested. HSI similarly released any single alien parent with minor children a home on humanitarian grounds and physically returned that person to the place where he or she was originally detained. Based on these procedures, it is believed that all children were with at least one of their parents as of last night.
If there are children who are without parents, individuals are required by state law to contact Mississippi Child Protective Services ("CPS") at 1-800-222-8000. CPS will assist in taking care of that child and placing the child in a safe foster care home or licensed facility.
Family members of those detained can call ICE’s toll-free detainee locator hotline for information about an individual’s detention location and status, as well as information about the removal process. This hotline operates in English and Spanish. The phone number is 1-888-351-4024.
This operation is part of multiple ongoing criminal investigations and these investigations continue.
NDTX Round-up August 8, 2019Read the Press Release
GUILTY PLEA – Bobby Dewayne Smith
On August 1, Bobby Dewayne Smith, 38, pled guilty to attempt and conspiracy to distribute cocaine. On a search warrant, the DEA searched Smith’s home to find a pistol, a scale, cookware associated with the conversion of cocaine, and crack cocaine for distribution. He faces up to 20 years imprisonment and up to a $1,000,000 fine. This case was investigated by the Drug Enforcement Agency and prosecuted by AUSA Suzanna Etessam.
GUILTY PLEA – Cesar Aranda-Delgado
On August 1, Cesar Aranda-Delgado, 40, pled guilty to aiding and abetting possession with intent to distribute cocaine. Law enforcement officials conducted a search on the vehicle Aranda-Delgado was driving and found 1.5 kilograms of cocaine. Aranda-Delgado confirmed that he came to the United States from Mexico to make money distributing narcotics. Aranda-Delgado faces up to 20 years in prison. This case was investigated by the Grand Prairie Police Department and the Drug Enforcement Agency and is prosecuted by AUSA Rachael Jones.
SENTENCING – Romulo Ramos-Diaz
On August 1, Romulo Ramos-Diaz was sentenced to 14 years in federal prison. Ramos-Diaz had pled guilty to conspiracy to possess with intent to distribute methamphetamine. Ramos-Diaz served as a look-out and protection for his co-conspirators and was eventually arrested after selling to an undercover officer. In the course of the investigation, officers discovered over two kilograms of methamphetamine. This case was investigated by the Drug Enforcement Agency and prosecuted by AUSA John Kull.
SENTENCING – Adrian Jimenez-Reynoso
On August 5, Adrian Jimenez-Reynoso was sentenced to 9 years in federal prison. Jimenez-Reynoso had pled guilty to charge of possession with the intent to distribute methamphetamine. Law enforcement officials had intercepted a variety of calls and other evidence that revealed Jimenez-Reynoso’s drug deals. This case was investigated by the Drug Enforcement Agency and prosecuted by AUSA John Kull.
INDICTMENT – Joshua Blake Browning
On August 7, a federal grand jury indicted Joshua Blake Browning, 38, for escaping from custody and possessing contraband in prison. Browning escaped a federal prison camp where he was serving time for the possession of a firearm in furtherance of a drug trafficking crime. Additionally, while serving his time in prison, Browning illegally possessed a mobile device. If convicted, Browing faces up to 6 years of imprisonment and a fine of up to $250,000. The case was investigated by the United States Marshall Service and is prosecuted by AUSA Suzanna Etessam.
INDICTMENT – Abel Cardenas Segundo and Guillermo Zarco Villasenor
On August 7, a federal grand jury indicted Abel Cardenas Segundo, 30, and Guillermo Zarco Villasenor, 26, for conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute methamphetamine. Both defendants face up to 40 years in prison. This case was investigated by the Federal Bureau of Investigation and is prosecuted by AUSA P.J. Meitl.
INDICTMENT – Garibaldi Gutierrez Solorio
On August 7, a federal grand jury indicted Garibaldi Gutierrez Solorio, 25, for conspiracy to possess with the intent to distribute one kilogram or more of heroin and possession with the intent to distribute heroin. If convicted, Solorio faces a maximum sentence of life in prison and a maximum fine of $11,000,000. This case was investigated by the Drug Enforcement Agency and is prosecuted by AUSA Suzanna Etessam.
INDICTMENT – Santos Ramos
On August 7, a federal jury indicted Santos Ramos, 26, as an illegal alien in possession of a firearm. Ramos allegedly was in possession of two pistols. If convicted, Ramos must forfeit any firearms involved in the offense and he faces up to 10 years imprisonment. This case was investigated by the Irving Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and is prosecuted by AUSA Gary Tromblay.
Monongalia County man admits to his role in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jesse Tichenor, of Morgantown, West Virginia, admitted to his involvement in a drug distribution operation, United States Attorney Bill Powell announced.
Tichenor, age 27, pled guilty to one count of “Unlawful Use of a Communication Facility.” Tichenor admitted to using a phone to help distribute “crack” cocaine in March 2017 in Monongalia County.
Tichenor faces up to four 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Michigan woman indicted for allegedly embezzling $300,000 from Sylvania electrical company and using it to gamble and pay for electronics, airline tickets and other personal expensesRead the Press Release
A former Toledo resident was indicted in federal court for allegedly embezzling more than $300,000 from her employer and using it to gamble and pay for electronics, airline tickets and other personal expenses.
Traci Ann Grillo, 47, of Ida, Michigan, was indicted on nine counts of wire fraud and one count of aggravated identity theft.
According to the indictment:
Grillo worked for King Electrical Service in Sylvania from September 2014 through March 2019. As part of her job, King Electrical entrusted financial accounts to Grillo, including bank accounts, credit card accounts, and check-writing authority.
Grillo embezzled more than $300,000 from King Electrical. She did this through several fraudulent means, including: salary overpayments to herself; personal use of the King Electrical checking account, such as writing check to pay her son’s tuition at Kent State University; personal use of King Electrical credit cards, including for clothing, home furnishings, electronics, airline tickets and to pay her online gambling account, and obtaining high-interest rate loans under fraudulent pretenses, according to the indictment.
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.
The investigating agencies in this case are the Toledo Police Department and the Federal Bureau of Investigation. The case is being handled by Assistant U.S. Attorneys Jody L. King and Gene Crawford.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Medicare Advantage Provider and Physician to Pay $5 Million to Settle False Claims Act AllegationsRead the Press Release
Beaver Medical Group L.P. (Beaver) and one of its physicians, Dr. Sherif Khalil, have agreed to pay a total of $5,039,180 to resolve allegations that they reported invalid diagnoses to Medicare Advantage plans and thereby caused those plans to receive inflated payments from Medicare, the Justice Department announced. Beaver is headquartered in Redlands, California.
“The United States relies on healthcare providers to submit accurate diagnosis data to Medicare Advantage plans to ensure those plans receive the appropriate compensation from Medicare,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will pursue those who undermine the integrity of the Medicare program and the data it relies upon.”
Under the Medicare Advantage program, also known as the Medicare Part C program, Medicare beneficiaries may opt to obtain health care coverage through private insurance plans that are owned and operated by private insurers known as Medicare Advantage Organizations (MAOs). Medicare pays MAOs a fixed, monthly amount to provide health care coverage to Medicare beneficiaries who enroll in their plans. Medicare adjusts these monthly payments to reflect the health status of each beneficiary. In general, Medicare pays MAOs more for sicker beneficiaries and less for healthier ones.
MAOs often contract with physician groups and other healthcare providers to provide care to Medicare beneficiaries enrolled in their plans. These healthcare providers report diagnoses and other information to the MAOs, which the MAOs then submit to Medicare in order to obtain higher risk-adjusted payments.
In this case, several MAOs in California contracted with Beaver to provide health care to Medicare beneficiaries enrolled in their plans. The MAOs often compensated Beaver with a share of the payments that the MAOs received from Medicare for the beneficiaries under Beaver’s care. Thus, Beaver had a financial incentive to submit additional diagnosis codes to the MAOs in order to increase the payments that the MAOs received from Medicare. The settlement resolves allegations that Beaver and Dr. Khalil knowingly submitted diagnoses that were not supported by the beneficiaries’ medical records in order to inflate the payments that the MAO received from Medicare.
“As enrollment in Medicare Advantage continues to grow, investigation into accuracy of diagnosis data becomes ever more important,” said Timothy B. Francesca, Acting Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Those who inflate bills sent to government health programs can expect to pay a heavy price.”
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Dr. David Nutter, a former employee of Beaver. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Dr. Nutter will receive approximately $850,000.
The government’s intervention in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was handled by the Civil Division’s Commercial Litigation Branch and the Department of Health and Human Services, Office of Inspector General.
The case is docketed as United States ex rel. David Nutter, M.D., and David Nutter, M.D., individually, v. Sherif F. Khalil, M.D., Beaver Medical group, L.P., The Beaver Medical Clinic, Inc., Epic Management, L.P., and Epic Management, Inc., No. CVC17-02035-PSG-KKX (C.D. Cal.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Mastermind of $1.3 Billion Investment Fraud (Ponzi) Scheme - One of the Largest Ever - Sentenced to Twenty-Five Years in Prison on Conspiracy and Tax Evasion ChargesRead the Press Release
Today, a Sherman Oaks, California native, Robert Shapiro, 61, was sentenced to a total of a total of twenty-five years in in prison by U.S. District Judge Cecilia M. Altonaga in Miami, Florida after previously pleading guilty to orchestrating and leading a massive investment fraud scheme, in which more than 7,000 victims suffered financial losses, as well as tax evasion. Shapiro is the former owner, president, and CEO of Woodbridge Group of Companies LLC (“Woodbridge”).
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, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and the Florida Office of Financial Regulation (OFR), made the announcement.
According to the indictment and court documents, Shapiro spearheaded and concealed an enormous Ponzi scheme through his business, Woodbridge. Woodbridge employed approximately 130 people and had offices located throughout the United States, including in Boca Raton, Florida; Sherman Oaks, California; Colorado; Tennessee; and Connecticut. The scheme ran from at least July 2012 to December 2017, when Woodbridge filed for Chapter 11 bankruptcy and defaulted on its obligations to investors.
Throughout the conspiracy, Woodbridge’s main business model was to solicit money from investors and, in exchange, issue investors promissory notes reflecting purported loans to Woodbridge that paid high monthly interest rates. Woodbridge falsely claimed that these investments were tied to real property owned by third parties and that the third parties would be making the interest payments to Woodbridge and its investors; it was portrayed as an investment in a hard-money lending business. Using high pressure sales tactics, Shapiro and his co-conspirators marketed and promoted these investments as low-risk, safe, simple, and conservative. And at minimum, investors were made to believe that Woodbridge’s real estate dealings would generate the funds used to pay the return on their investments.
Despite Woodbridge’s claims that these investments would be backed by properties owned by third-parties, in fact, to the extent that the properties existed, they were secretly owned by Shapiro. Unbeknownst to investors, Shapiro created and controlled a network of more than 270 limited liability companies, which he used to acquire and sell the properties pitched to investors.
Shapiro and his co-conspirators falsely claimed that Woodbridge was profitable and advertised high rates of return to investors. However, Shapiro’s real estate portfolio failed to generate sufficient cash flow to satisfy the loan obligations and interest payments owed to investors. To make up for the cash deficiency, Shapiro and his co-conspirators resorted to making Ponzi payments, i.e., hundreds of millions of dollars invested by new investors were used to pay “returns” to older, existing Woodbridge investors. In some instances, Shapiro made these fraudulent “interest” payments even when the advertised investment properties were never acquired.
The Woodbridge sales operation functioned as a “boiler room” and featured high-pressure sales tactics, deception, and manipulation. Woodbridge promoted investments through telephone and in-person conversations, emails and website displays. The scheme also involved misrepresentations to financial planners who helped Woodbridge to sell investments to potential investors.
At least five states issued cease and desist orders against one or more of the Woodbridge entities based on their unregistered sale of securities. Shapiro and his co-conspirators nonetheless continued to sell Woodbridge investments to residents of those states, and engaged in deceptive conduct with respect to pending state regulatory actions against Woodbridge, in violation of the cease and desist orders.
At some point in 2017, Shapiro made the decision that Woodbridge would file for bankruptcy. Without disclosing to investors that Woodbridge was insolvent and on the verge of bankruptcy, Shapiro caused Woodbridge to collect additional money from investors through the filing of Woodbridge’s bankruptcy in December 2017. Shapiro also admitted that, immediately prior to Woodbridge’s bankruptcy filing, he diverted millions of dollars in investor funds to several bank accounts opened in the name of his wife, J.S., which he used for new ventures.
In total, Shapiro and his co-conspirators convinced more than approximately 9,000 investors to invest more than $1.29 billion to Woodbridge. According to the Indictment, at least 2,600 of these investor victims invested their retirement savings, totaling approximately $400 million. Of that, Shapiro misappropriated approximately $25 million to $95 million in investor money for himself and for the benefit of his immediate family members. Shapiro spent millions on personal expenditures, such as $3.1 million for chartering private planes and travel, $6.7 million on a personal home, $2.6 million on home improvements, $1.8 million on personal income taxes, and over $672,000 on luxury automobiles. Shapiro further admitted that he used bank accounts and credit cards opened in the name of his wife, J.S., to divert millions of dollars to his family.
Shapiro also pled guilty to tax evasion based upon his failure to pay more than $6 million in taxes due and owing to the IRS for calendar years 2000 through 2005.
As part of his plea, Shapiro and his wife agreed to forfeit certain assets, many of which were seized during a search executed by federal agents at his home in Sherman Oaks, California. They include, but are not limited to: artworks by Pablo Picasso, Alberto Giacometti, Marc Chagall, and Pierre-August Renoir; a collection of 603 bottles of wine; a 1969 Mercury convertible; luxury jewelry, including a pair of 14-karat, white gold earrings with two black diamonds (61.81 carats), two grey diamonds (23.92 carats), two rose-cut diamonds, and 266 round diamonds; a platinum ring with an oval-cut ruby (10.91 carats), two trapezoid diamonds and 70 round-cut diamonds; a platinum ring with certified Colombia emerald-cut emerald (9.54 carats), trapezoid-cut diamonds, and 166 round-cut diamonds; and other items detailed in court documents. The Court entered a Preliminary Order of Forfeiture today (Case No. 19cr20178). A restitution hearing has been scheduled for Jan. 17, 2020 at 9:30 a.m.
Shapiro was sentenced to concurrent terms of 300 months in prison on Count 1 and Count 10 of the indictment. Upon his release from prison, Shapiro will be placed on supervised release for three years.
The indictment also charged two co-defendants, Dane Roseman, a/k/a “Dayne Roseman,” and Ivan Acevedo, who are scheduled for trial in June 2020 (Case No. 19cr20178). The U.S. Securities and Exchange Commission (SEC) filed parallel civil enforcement actions against Woodbridge, Shapiro, his wife, and co-defendants Acevedo and Roseman related to the Ponzi scheme.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, IRS-CI and OFR in this matter. She thanked the SEC Miami Regional Office and the U.S. Attorney’s Office for the Central District of California for their assistance. This case was prosecuted by Assistant U.S. Attorneys Roger Cruz and Lisa H. Miller. Assistant U.S. Attorneys Nalina Sombuntham and Alison Lehr are responsible for the asset forfeiture component of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Martin, Tennessee Man Sentenced to 108Months Imprisonment for Conspiracy to Distribute MethamphetamineRead the Press Release
Jackson, TN – Robert Thomas, 46, has been sentenced to 108 months imprisonment for conspiracy to distribute 50 grams or more of actual methamphetamine. U.S. Attorney D. Michael Dunavant announced the sentence today.
This is the first sentencing in a case involving multiple defendants including Keith Norris, Charles Settles, Justin Tyler Bynum and Solomon Clay on charges of conspiracy to distribute actual methamphetamine.
According to information presented in court, the Weakley County Sheriff’s Department began an investigation into Keith Norris’ drug trafficking organization in late April, 2018. This investigation included search warrants, traffic stops, statements of cooperators and phone records. Agents learned that Thomas was a member of Norris’ drug trafficking organization.
On April 15, 2018, Weakley County Sheriff’s Office stopped Thomas for a traffic violation and recovered approximately 21 grams of methamphetamine. During a mirandized statement, Thomas confessed to selling approximately 88 ounces of methamphetamine in Weakley County within a seven-month period.
U.S. Attorney D. Michael Dunavant said, "Methamphetamine that is trafficked in and through West Tennessee is increasing in dangerous purity, and continues to destroy individuals, families, and communities. Drug dealers who profit from the pain, addiction, violence and death caused by these dangerous substances deserve proper punishment, and this sentence does just that."
On August 6, 2019, United States Chief District Court Judge S. Thomas Anderson sentenced Thomas to 108 months in federal prison followed by 5 years supervised release.
This case was investigated by the Weakley County Sheriff’s Department and the Martin Police Department.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Maple Heights woman sentenced to nine years in prison for robbing the same consignment store on Chagrin Boulevard on consecutive days, including using a firearm in the second robberyRead the Press Release
A Maple Heights woman was sentenced to more than nine years in prison for robbing the same consignment store on Chagrin Boulevard on consecutive days, including using a firearm in the second robbery.
Rachellette McKissack, 26, was sentenced to 114 months in federal prison. She previously pleaded guilty to two counts of Hobbs Act robbery and one count of using a firearm during a crime of violence.
McKissack robbed the Cleveland Consignment Shoppe at 28790 Chagin Blvd. in Woodmere on November 15, 2018, according to court documents.
McKissack again robbed the Cleveland Consignment Shoppe on November 16, 2018, this time using a firearm during the robbery, according to court documents.
“For two consecutive days, this defendant terrorized people who were simply going about their day,” U.S. Attorney Justin Herdman said. “We will pursue a long prison sentence for anyone who uses a firearm during a robbery.”
This case was prosecuted by Assistant U.S. Attorneys Margaret Kane and John C. Hanley following an investigation by the FBI and Woodmere Police Department.
Man Indicted for Straw Purchasing and Making False StatementsRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Woodbridge man with straw purchasing two firearms in November 2016 and then giving those firearms to a Boston man.
According to the indictment, Carl Napper, 26, was allegedly paid $250 to straw purchase two firearms on behalf of a Boston man, who then transported the firearms back to Boston. One of these firearms was recovered in Boston a month later after having been used in a shooting incident.
Napper is charged with making false statements on an ATF form in connection with the purchase of the firearms, and transferring the firearms to a resident of another state). If convicted, he faces a maximum penalty of five years in prison for each count of conviction. 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.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Jason Trigger 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-230.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Man Arrested for Theft of Military PropertyRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that BRYAN ALLEN faces federal charges of theft of government property.
ALLEN was named in an indictment filed on August 6, 2019, charging him with theft of military property and conspiracy to steal such property, in violation of 18 U.S.C. §§ 371 and 641, and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. The indictment charges that ALLEN used his position as property book officer for the 4th Battalion, 3rd Special Forces Group at Ft. Bragg, North Carolina, to decrease the number of items shown in the possession of specific companies, which reduced the number of those items expected to be located in a physical inventory of those items. In a two and a half year period from December 2016 through June 20, 2018, it is alleged ALLEN stole more than $2 million of military property. The stolen property included 43 enhanced night vision goggles, a U.S. military sensitive item made to military specifications, which require “demilitarization” and disposal/destruction in accordance with Department of Defense policies.
If convicted, ALLEN would face up to a maximum term of 19 years’ imprisonment, a $250,000 fine as to each of the four counts, and a term of up to three years supervised release following any term of imprisonment.
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.
Investigation of this case is being conducted by the Defense Criminal Investigative Service, Federal Bureau of Investigation, U.S. Army Criminal Investigative Division, and the Department of Homeland Security, Investigations.
Lebanese Businessman Tied by Treasury Department to Hezbollah is Sentenced to Prison for Money Laundering Scheme Involving the Evasion of U.S. SanctionsRead the Press Release
The operator of a network of businesses in Lebanon and Africa whom the U.S. Department of the Treasury designated as a financier of Hezbollah, the Lebanon-based terrorist group, was sentenced to five years in prison and ordered to forfeit $50 million by U.S. District Judge Reggie B. Walton of the District of Columbia.
Kassim Tajideen, 63, had previously pleaded guilty to one count of conspiracy to launder monetary instruments in furtherance of violating the International Emergency Economic Powers Act (IEEPA). In 2009, the U.S. Department of the Treasury designated Tajideen as a Specially Designated Global Terrorist based on his tens of millions of dollars of financial support of Hezbollah. The designation prohibited Tajideen from being involved in, or benefiting from, transactions involving U.S. persons or companies without a license from the Department of the Treasury.
“This defendant knowingly violated sanctions and put our nation’s security at risk,” said Assistant Attorney General Brian A. Benczkowski of the Criminal Division. “His sentencing and the $50 million forfeiture in this case are just the latest public examples of the Department of Justice’s ongoing efforts to disrupt and dismantle Hezbollah and its support networks.”
“Today’s sentencing highlights our efforts to prosecute those who violate sanctions meant to stem the flow of money to terrorists groups,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Our message to those who violate sanctions is that you will be found, and you will be prosecuted to the full extent of the law.”
“This is the latest example of DEA’s success against Hezbollah’s global criminal support network and our commitment to interagency collaboration in combatting the overall threat posed by this transnational criminal organization,” said Acting Special Agent in Charge of DEA’s Special Operations Division Michael J. Machak.
According to the statement of facts signed by Tajideen in conjunction with his plea, after his designation, Tajideen conspired with at least five other persons to conduct over $50 million in transactions with U.S. businesses that violated these prohibitions. In addition, Tajideen and his co-conspirators knowingly engaged in transactions outside of the United States, which involved transmissions of as much as $1 billion through the United States financial system from places outside the United States.
Tajideen’s case falls under DEA’s Project Cassandra, which targets Hezbollah’s global criminal support network, which operates as a logistics, procurement and financing arm for Hezbollah. This investigation and others are part of the Department of Justice’s Hezbollah Financing and Narcoterrorism Team (HFNT). The HFNT was formed in January 2018 to ensure an aggressive and coordinated approach to prosecutions and investigations, including Project Cassandra cases, targeting the individuals and networks supporting Hezbollah. Comprised of experienced international narcotics trafficking, terrorism, organized crime, and money laundering prosecutors and investigators, the HFNT works closely with partners like the DEA, the Department of the Treasury, and the FBI, among others, to advance and facilitate prosecutions of Hezbollah and its support network in appropriate cases.
This case was investigated by DEA SOD’s Counter Narcoterrorism Operations Center (CNTOC) and the DEA New Jersey Field Division, with support from the CPB’s National Targeting Center/Counter Network Division, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC), the Criminal Division’s Office of International Affairs, and the Counterintelligence and Export Control Section of the National Security Division.
The case was prosecuted by Trial Attorney Joseph Palazzo of the Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Thomas A. Gillice, Luke Jones, Karen Seifert and Deborah Curtis and Special Assistant U.S. Attorney Jacqueline L. Barkett of the U.S. Attorney’s Office for the District of Columbia.
Lebanese Businessman Tied by Treasury Department to Hezbollah is Sentenced to Prison for Money Laundering Scheme Involving the Evasion of U.S. SanctionsRead the Press Release
WASHINGTON – The operator of a network of businesses in Lebanon and Africa whom the U.S. Department of the Treasury designated as a financier of Hezbollah, the Lebanon-based terrorist group, was sentenced to five years in prison and ordered to forfeit $50 million by U.S. District Judge Reggie B. Walton of the District of Columbia.
Kassim Tajideen, 63, had previously pleaded guilty to one count of conspiracy to launder monetary instruments in furtherance of violating the International Emergency Economic Powers Act (IEEPA). In 2009, the U.S. Department of the Treasury designated Tajideen as a Specially Designated Global Terrorist based on his tens of millions of dollars of financial support of Hezbollah. The designation prohibited Tajideen from being involved in, or benefiting from, transactions involving U.S. persons or companies without a license from the Department of the Treasury.
“This defendant knowingly violated sanctions and put our nation’s security at risk,” said Assistant Attorney General Brian A. Benczkowski of the Criminal Division. “His sentencing and the $50 million forfeiture in this case are just the latest public examples of the Department of Justice’s ongoing efforts to disrupt and dismantle Hezbollah and its support networks.”
“Today’s sentencing highlights our efforts to prosecute those who violate sanctions meant to stem the flow of money to terrorists groups,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Our message to those who violate sanctions is that you will be found, and you will be prosecuted to the full extent of the law.”
“This is the latest example of DEA’s success against Hezbollah’s global criminal support network and our commitment to interagency collaboration in combatting the overall threat posed by this transnational criminal organization,” said Acting Special Agent in Charge of DEA’s Special Operations Division Michael J. Machak.
According to the statement of facts signed by Tajideen in conjunction with his plea, after his designation, Tajideen conspired with at least five other persons to conduct over $50 million in transactions with U.S. businesses that violated these prohibitions. In addition, Tajideen and his co-conspirators knowingly engaged in transactions outside of the United States, which involved transmissions of as much as $1 billion through the United States financial system from places outside the United States.
Tajideen’s case falls under DEA’s Project Cassandra, which targets Hezbollah’s global criminal support network, which operates as a logistics, procurement and financing arm for Hezbollah. This investigation and others are part of the Department of Justice’s Hezbollah Financing and Narcoterrorism Team (HFNT). The HFNT was formed in January 2018 to ensure an aggressive and coordinated approach to prosecutions and investigations, including Project Cassandra cases, targeting the individuals and networks supporting Hezbollah. Comprised of experienced international narcotics trafficking, terrorism, organized crime, and money laundering prosecutors and investigators, the HFNT works closely with partners like the DEA, the Department of the Treasury, and the FBI, among others, to advance and facilitate prosecutions of Hezbollah and its support network in appropriate cases.
This case was investigated by DEA SOD’s Counter Narcoterrorism Operations Center (CNTOC) and the DEA New Jersey Field Division, with support from the CPB’s National Targeting Center/Counter Network Division, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC), the Criminal Division’s Office of International Affairs, and the Counterintelligence and Export Control Section of the National Security Division.
The case was prosecuted by Trial Attorney Joseph Palazzo of the Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Thomas A. Gillice, Luke Jones, Karen Seifert and Deborah Curtis and Special Assistant U.S. Attorney Jacqueline L. Barkett of the U.S. Attorney’s Office for the District of Columbia.
Kyle Woman Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, woman convicted of Assault by Striking, Beating, or Wounding was sentenced by Daneta Wollmann, U.S. Magistrate Judge.
Mattie Yankton, age 38, was sentenced on August 2, 2019, to 3 years of probation, 25 hours of community service work, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Yankton was indicted by a federal grand jury in December 2018. The charge related to Yankton assaulting a man while he slept on April 12, 2018, at Kyle. The assault resulted in him having to seek medical treatment for his injury.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Kansas Man Sentenced to 84 Years for Producing Child PornographyRead the Press Release
WASHINGTON – A Kansas man who traveled to the Philippines and had sex with minor females there was sentenced to over 84 years in prison today.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Stephen R. McAllister of the District of Kansas made the announcement.
Anthony Shultz was charged by complaint in July 2016 and pleaded guilty to three counts of producing child pornography in July 2018 before U.S. District Judge Eric F. Melgren of the District of Kansas.
According to admissions made in conjunction with the guilty plea, Shultz engaged in sex acts with minor females in the Philippines. He videotaped his sexual encounters with two minors and transported the videos to his home in Kansas. Shultz would also sell the videos online. One of the girls was only 12 years old at the time; the other was 15 years old. In one of the videos, Shultz is seen giving the 15-year-old money after having sex with her. Shultz also produced child pornography of an 8-year-old girl in the Philppines by communicating on Skype with the child’s mother and directing the mother to expose the child’s genitals and live-stream it on web camera.
The FBI investigated the case. Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jason Hart of the District of Kansas 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
Kansas Man Sentenced for Producing Child PornographyRead the Press Release
A Kansas man who traveled to the Philippines and had sex with minor females there was sentenced to over 84 years in prison today.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Stephen R. McAllister of the District of Kansas made the announcement.
Anthony Shultz was charged by complaint in July 2016 and pleaded guilty to three counts of producing child pornography in July 2018 before U.S. District Judge Eric F. Melgren of the District of Kansas.
According to admissions made in conjunction with the guilty plea, Shultz engaged in sex acts with minor females in the Philippines. He videotaped his sexual encounters with two minors and transported the videos to his home in Kansas. Shultz would also sell the videos online. One of the girls was only 12 years old at the time; the other was 15 years old. In one of the videos, Shultz is seen giving the 15-year-old money after having sex with her. Shultz also produced child pornography of an 8-year-old girl in the Philppines by communicating on Skype with the child’s mother and directing the mother to expose the child’s genitals and live-stream it on web camera.
The FBI investigated the case. Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jason Hart of the District of Kansas 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.
KC Man Sentenced to 20 Years for Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for four armed robberies of local businesses committed during a month-long crime spree.
Montez L. Clayton, 29, was sentenced by U.S. District Judge Greg Kays to 20 years in federal prison without parole.
On Jan. 3, 2019, Clayton pleaded guilty to the armed robberies of four businesses in March and April 2018, and to brandishing a firearm during a crime of violence. Clayton admitted that he robbed the Subway restaurant at 1831 Independence Ave., Kansas City, on March 18, 2018; the 7-Eleven store at 1701 Independence Ave., Kansas City, on March 26, 2018; the Metro PCS store at 2506 Independence Ave., Kansas City, on April 5, 2018; and the Metro PCS store at 2217 E. 12th St., Kansas City, on April 9, 2018. Clayton used a Jimenez 9mm pistol in each of those robberies.
Clayton provided his phone number and account information when he asked an employee to check the balance on his account during the first Metro PCS robbery. Law enforcement officers traced the location of Clayton’s phone to a Kansas City residence, where he was arrested.
According to court documents, Clayton has an extensive criminal record that includes a history of violence. For example, in November 2013, he was charged with multiple counts of domestic assault for assaulting a mother of two of his children, and with one count of unlawful use of a weapon for exhibiting a firearm at her in an angry or threatening manner. In one of the assaults, Clayton’s child was in the arms of the victim while he assaulted her. In 2014, Clayton pleaded guilty to domestic assault for striking the victim in the head with a dumbbell and to unlawful use of a weapon. In 2015, while on probation, he was convicted of assaulting a different victim, also the mother of one of his children. In that assault, Clayton struck the victim in the face, pushed her, kicked her, pushed her down the stairs, and put his hands in her mouth. In February 2017, while he was under probation supervision on two cases and while he had an outstanding arrest warrant for probation violations, Clayton was charged with assault for kicking yet another female victim.
This case was prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Kansas City, Mo., Police Department.
KC Day Care Owner Sentenced for $556,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – The owner of a Kansas City, Missouri, day care center was sentenced in federal court today for his role in a conspiracy to fraudulently receive more than $556,000 in federal benefits.
Sharif Karie, 41, of Olathe, Kan., was sentenced by U.S. District Judge Brian C. Wimes to four years and 10 months in federal prison without parole.
On Jan. 11, 2019, Karie was convicted at trial of participating in a conspiracy to steal government property, theft of government property, three counts of aggravated identity theft, three counts of wire fraud, 15 counts of money laundering, and six counts of mail fraud.
Karie, a naturalized U.S. citizen from Somalia, was the owner and CEO of a day care center established under two businesses and two names for the same location, with the same key employees: KARIE Day Care Center, LLC, and Tima Child Care Center, LLC, at 1019 Admiral Blvd., Kansas City, Mo. Tima Child Care Center was established under false pretense with a straw owner, according to court documents, apparently to circumvent the state’s oversight efforts.
Co-defendant Sheri Beamon, 48, of Kansas City, Missouri, was the director of KARIE/Tima Childcare Center. Beamon pleaded guilty on Sept. 10, 2018, to her role in the conspiracy and will be sentenced on Aug. 15, 2019.
The day care centers submitted false childcare claims to the state of Missouri that fraudulently inflated the number of hours and children who actually attended the childcare centers. The conspiracy, which lasted from October 2013 to June 2016, resulted in a loss of $536,833 to the Missouri Department of Health and Social Services. The Child Care and Development Fund provides daycare subsidies for low-income families where the parents are employed or engaged in job training. Providers contract with the Children’s Division of the Missouri Department of Health and Senior Services and submit claims electronically.
Additionally, Karie committed fraud by misleading the Department of Housing and Urban Development (HUD) when he understated his income and assets. Karie received Section 8 assistance, which is funded by HUD. The fraud scheme resulted in a loss of more than $40,000 to the Housing Authority.
This case was the result of a nationwide sweep that targeted child care center fraud schemes. The national law enforcement operation in Missouri and six other states was the result of separate, but related, federal investigations into childcare center fraud that resulted in a loss of more than $1 million to the government.
Pole cameras, which were installed near the day care center, captured footage of the entrances and exits of the building during two time periods in 2015 and in 2016. Timesheets and billing records were reviewed and compared to the children seen on the pole cameras being dropped off and picked up from the daycare center during that time. There were significant discrepancies between the timesheets, claims submitted, and the pole camera footage. According to court documents, even the fire evacuation records were falsified indicating a fire drill was performed on a date when pole cameras were capturing footage of the entrance/exit of the day care and the planned evacuation route as provided to the state. The drill never took place.
At no time during its operation, according to court documents, did Karie Day Care Center meet the minimum health and safety standards for operation as established by Missouri statute and agreed to by contract. Tima Child Care Center was conceived as the state was in process of shutting down Karie Day Care Center for failure to comply with standards for health, safety, and record keeping. Had the state known that Karie was actually operating the business, according to court documents, a license would not have been approved.
The state conducted a compliance review of the daycare center’s billing for May 2014 and July 2014. The review found several attendance records missing. The review also identified 14 out of the 15 families with children at the center who had a parent employed there. With only two classrooms, it is improbable that parents were not caring for their own children. One of these parents reported that her job was contingent on having all of her children placed in care at KARIE Day Care Center so her child care would be paid by the state. According to court records, nearly all children enrolled for services were those of employees, in violation of state regulations. This same 2014 audit found several discrepancies on the time sheets submitted to the state.
Subsequent unannounced inspections at KARIE Day Care Center found the facility in violation of state regulations pertaining to child care licensing rules, including health and safety, staff ratios, and the maintaining of attendance records. Each of the inspections resulted in violation findings.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Kathleen D. Mahoney. It was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, Office of Investigations, the U.S. Department of Housing and Urban Development - Office of Inspector General, the FBI, the Missouri Department of Social Services – Division of Legal Services Investigations and the Kansas City, Mo., Police Department.
Justice Department Settles Sexual Harassment Lawsuit Against New York Property OwnerRead the Press Release
The Department of Justice today announced that Douglas S. Waterbury and his co-defendants will be obligated to pay $850,000 in damages and civil penalties to resolve two Fair Housing Act lawsuits alleging that Waterbury sexually harassed numerous female tenants and prospective tenants for nearly three decades at properties he owned in and around Oswego, New York. The Department filed one of the lawsuits and a group of private plaintiffs brought the other.
Under the Consent Decree in United States of America v. Douglas S. Waterbury, et al., which still must be approved by the U.S. District Court for the Northern District of New York, Defendants have agreed to pay a total of $450,000, which includes $400,000 in monetary damages to former tenants and potential tenants who were harmed as a result of the sexual harassment, as well as a $50,000 civil penalty. Additionally, the Defendants will pay $400,000 to compensate nine plaintiffs in the related private suit. The Consent Decree also bars Douglas Waterbury from participating in the rental or management of residential properties.
“The sexual harassment of the vulnerable female applicants and tenants in this case by their landlord is an egregious and intolerable violation of federal civil rights law,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to pursue any depraved landlords and others who prey upon vulnerable women.”
“No woman should have to endure harassment and discrimination to obtain housing,” said Grant C. Jaquith, United States Attorney for the Northern District of New York. “Landlords who sexually harass their tenants in our district will be held accountable under the Fair Housing Act.”
The Department’s complaint, filed in 2018, alleged that Douglas Waterbury, his business partner, and two related entities operated an extensive real estate business involving more than 50 residential rental properties in and around Oswego, New York. The lawsuit further alleged that Douglas Waterbury subjected former tenants and potential tenants of these homes to sexual harassment, including unwanted sexual intercourse, sexual advances and comments, groping or other touching of their bodies without consent, and offers to reduce or eliminate security deposits and rent in exchange for sexual contact. The complaint further alleged that Waterbury took or threatened to take adverse action against residents when they refused or objected to his advances.
In October 2017, the Justice Department launched an initiative to combat sexual harassment in housing. In April 2018, the Department of Justice announced the nationwide rollout of the initiative, including three major components: an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the launch of a national Public Service Announcement, and a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing.
Since launching the initiative, the Department of Justice has filed 10 lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 15 sexual harassment cases since January 2017, and has recovered over $2.6 million for victims of sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Justice Department Settles Lawsuit Against Warren County North Carolina Board of Education to Enforce the Employment Rights of United States Army ReservistRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with the Warren County, North Carolina, Board of Education (Warren County) that resolves a federal lawsuit brought under the Uniformed Services Employment and Reemployment Rights Act (USERRA) on behalf of Dwayne Coffer, a Command Sergeant Major (CSM) in the Army Reserve. In its complaint, the United States alleged that Warren County violated USERRA by eliminating Sergeant Major Coffer’s employment position while he was on active duty with the military and failed to re-employ him in a comparable position when he returned.
Under the terms of the settlement agreement, Warren County will reinstate Coffer to the position of Dean of Students at Warren County Middle School, and provide him with back pay and pension benefits. The reinstatement position is the one that Coffer held before his period of active duty with the Army.
“Command Sergeant Major Coffer was called upon to leave his civilian employment and serve our nation, and we are grateful for his service,” said Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division. “This settlement agreement with Warren County Resolves the USERRA claims brought by the United States and serves as a reminder that our servicemembers, like CSM Coffer, deserve fair and lawful reemployment following their returns from active military duty.”
“Members of our Reserves, like Command Sergeant Dewayne Coffer, are often called away from their civilian jobs in order to provide the security our nation depends on,” said United States Attorney Robert J. Higdon of the Eastern District of North Carolina. “These citizen servicemembers should never face losing their jobs or be forced to accept an inferior position when they answer that call. The Uniformed Services Employment and Reemployment Rights Act protects these brave men and women, and, as this lawsuit demonstrated, the Department of Justice is committed to enforcing it when it is violated.”
USERRA safeguards the rights of uniformed servicemembers to return to their civilian employment following absences due to military service obligations and protect servicemembers from discrimination on the basis of their military obligations. This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service (VETS). After resolution failed, VETS referred the complaint to the Department of Justice’s Civil Rights Division. This lawsuit was handled by Deborah Birnbaum and Brian McEntire in the Employment Litigation Section of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael G. James in the U.S. Attorney’s Office for the Eastern District of North Carolina.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and https://www.justice.gov/servicemembers, as well as on the Department of Labor’s website at https://www.dol.gov/agencies/vets/programs/userra.
Justice Department Settles Lawsuit Against Warren County (North Carolina) Board of Education Brought to Enforce the Employment Rights of United States Army ReservistRead the Press Release
WASHINGTON – The Department of Justice announced today that it has reached a settlement agreement with the Warren County, North Carolina, Board of Education (Warren County) that resolves a federal lawsuit brought under the Uniformed Services Employment and Reemployment Rights Act (USERRA) on behalf of Dwayne Coffer, a Command Sergeant Major (CSM) in the Army Reserve. In its complaint, the United States alleged that Warren County violated USERRA by eliminating Sergeant Major Coffer’s employment position while he was on active duty with the military and failed to re-employ him in a comparable position when he returned.
Under the terms of the settlement agreement (attached), Warren County will reinstate Coffer to the position of Dean of Students at Warren County Middle School, and provide him with back pay and pension benefits. The reinstatement position is the one that Coffer held before his period of active duty with the Army.
“Command Sergeant Major Coffer was called upon to leave his civilian employment and serve our nation, and we are grateful for his service,” said Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division. “This settlement agreement with Warren County Resolves the USERRA claims brought by the United States and serves as a reminder that our servicemembers, like CSM Coffer, deserve fair and lawful reemployment following their returns from active military duty.”
“Members of our Reserves, like Command Sergeant Dewayne Coffer, are often called away from their civilian jobs in order to provide the security our nation depends on,” said United States Attorney Robert J. Higdon of the Eastern District of North Carolina. “These citizen servicemembers should never face losing their jobs or be forced to accept an inferior position when they answer that call. The Uniformed Services Employment and Reemployment Rights Act protects these brave men and women, and, as this lawsuit demonstrated, the Department of Justice is committed to enforcing it when it is violated.”
USERRA safeguards the rights of uniformed servicemembers to return to their civilian employment following absences due to military service obligations and protect servicemembers from discrimination on the basis of their military obligations. This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service (VETS). After resolution failed, VETS referred the complaint to the Department of Justice’s Civil Rights Division. This lawsuit was handled by Deborah Birnbaum and Brian McEntire in the Employment Litigation Section of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael G. James in the U.S. Attorney’s Office for the Eastern District of North Carolina.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and https://www.justice.gov/servicemembers, as well as on the Department of Labor’s website at https://www.dol.gov/agencies/vets/programs/userra.
Justice Department Launches National Public Safety Partnership with Baton Rouge Police DepartmentRead the Press Release
BATON ROUGE, LA - Today, officials from the Department of Justice's Bureau of Justice Assistance, the United States Attorney's Office, Middle District of Louisiana, the Baton Rouge Police Department, and many other local, state and federal partners, convened in Baton Rouge, LA to initiate the National Public Safety Partnership (PSP) program. This Justice Department program is a three-year engagement that seeks to leverage department assets in support of a local jurisdiction’s commitment to drive down violent crime.
On June 3, 2019, Attorney General William Barr announced the selection of the Baton Rouge Police Department as one of ten FY 2019 PSP sites where the Justice Department will work collaboratively to provide training and technical assistance in areas such as crime analytics, emerging technology and community engagement.
Since 2017, the Justice Department has directed nearly $14.9 million in customized training and technical assistance to help build crime fighting capacity in PSP sites, including $6.6 million to support the FY 2019 sites through FY 2022. PSP seeks to bring law enforcement stakeholders together to work collaboratively in reducing violent crime attributed to felonious firearm use, drug trafficking and human trafficking.
“Today our team is on-site in Baton Rouge to collaborate with local law enforcement officials in their mission to improve public safety and drive down violent crime,” said Jon Adler, Director of the Bureau of Justice Assistance. "Through the Public Safety Partnership, we are committed to fulfilling the Attorney General's priority of supporting local law enforcement combat violent gangs, felonious firearms use and drug trafficking," added Adler.
U.S. Attorney Brandon J. Fremin stated, “I am extraordinarily grateful to Attorney General Barr for selecting Baton Rouge as a Public Safety Partnership site and for his willingness to supplement and support our local violent crime efforts with additional resources and training. Along with our state and local partners we will continue our collaboration to combat violent crime in our communities and will work tirelessly to achieve our goal of reducing violent crime in the district.”
Baton Rouge Police Chief Murphy Paul stated, "We look forward to our continued partnership with the US Department of Justice. The technical assistance and training our department will receive from DOJ experts will strengthen our ability to address violent crime in the city of Baton Rouge. As an agency, BRPD is committed to using innovative ways to improve public safety in our community."
Since 2017, the Justice Department has worked with more than 30 local jurisdictions under the nationwide PSP program. Many participating cities have already seen dramatic reductions in violent crime. New Orleans ended 2018 with 146 murders, the lowest number of murders since the early 1970s. In Milwaukee, homicides declined in 2018 for a third straight year after hitting a deadly peak in 2015.
Other agencies in attendance at this meeting included the Office of Justice Programs; East Baton Rouge Sheriff’s Office; East Baton Rouge District Attorney’s Office; Office of the Mayor-President; U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Drug Enforcement Administration; Federal Bureau of Investigation; U.S. Marshals Service; United States Secret Service; Internal Revenue Service; U.S. Customs and Border Protection; U.S. Department of Health and Human Services; Louisiana Attorney General’s Office; Louisiana Department of Justice; Louisiana Office of Alcohol Beverage Control; Zachary Police Department; Baker Police Department; and Southern University Police Department.
For more information about PSP, visit https://www.nationalpublicsafetypartnership.org.
Jury Convicts Hampton Duo for Cocaine DistributionRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Hampton man and woman yesterday on charges of cocaine distribution.
According to court records and evidence presented at trial, Marcus Troy Moody, 30, and Latoya Patrice Carter, 29, were stopped by Newport News police in December 2018 after committing multiple traffic infractions. A subsequent lawful search of Moody, Carter, and their vehicle yielded two loaded semi-automatic handguns, including one with an extended magazine; an additional loaded magazine; a digital scale with narcotics residue; narcotics packaging material; approximately 80 grams of cocaine; and approximately $4,000 in cash.
Moody and Carter face a mandatory minimum of 10 years and a maximum of life in prison when sentenced on November 14. 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.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Steve R. Drew, Chief of Newport News Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the verdict. Assistant U.S. Attorney Peter G. Osyf and Special Assistant U.S. Attorney Kristen Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-51.
Jefferson County man admits to cocaine chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joroy Nigel Twyman, of Ranson, West Virginia, has admitted to distributing cocaine base, United States Attorney Bill Powell announced.
Twyman, age 40, pled guilty to one count of “Possess with Intent to Distribute Cocaine Base.” Twyman admitted to distributing cocaine base in April 2017 in Jefferson County.
Twyman faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Illegal possession of firearm sends Billings man to prison for 10 yearsRead the Press Release
BILLINGS—A Billings man who admitted illegally having a firearm that he discharged during a fight, sending a bullet through the brim of a person’s hat, was sentenced today to the statutory maximum of 10 years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Gary Duane Ervin, 51, pleaded guilty in April to being a prohibited person in possession a firearm.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court records that on Oct. 28, 2018, Billings Police officers responded to a weapons complaint at a residence and found Ervin and two other individuals. During an altercation between Ervin and one of the individuals, Ervin pointed a firearm in the air and fired, sending a round into the brim of the person’s hat. The firearm was .38-caliber revolver that had been reported stolen, and it had an obliterated serial number. Ervin was prohibited from possessing firearms because of a prior felony conviction.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Honduran Man Sentenced for Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that BAYRON MARTINEZ-RODRIGUEZ, age 28, a native of Honduras, was sentenced on Wednesday, August 7, 2019 after previously pleading guilty to illegally using a Social Security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
United States District Court Judge Martin L.C. Feldman sentenced MARTINEZ-RODRIGUEZ to time served (2 months of imprisonment), followed by 1 year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, on June 14, 2019, MARTINEZ-RODRIGUEZ submitted a fraudulent Form I-9 application in order to obtain employment with a local company. He attested on the form that he was someone else. He used a fraudulent Social Security card in the name of the other person which also contained that person’s actual Social Security number as verification. In order to finalize employment with that company, he was required to take a safety course at another location on June 18, 2019. He once again provided the fraudulent Social Security card as proof of his identity, but an employee suspected the card was fraudulent and alerted Customs and Border Protection. Subsequent record checks confirmed his real identity.
U.S. Attorney Strasser praised the work of United States Customs and Border Protection agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Hartford Man Pleads Guilty to Possessing a Loaded FirearmRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CLETUS JONES, 39, of Hartford, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession of a firearm and ammunition by a felon.
According to court documents and statements made in court, on January 23, 2018, Hartford Police officers responded to a two-car motor vehicle accident near Elizabeth Park. At the scene, officers learned that Jones had gone into the park and placed something near a tree. A search of the area uncovered a loaded Taurus .38 semi-automatic handgun. Subsequently, Jones’ DNA profile was found on the gun.
Jones’ criminal history includes felony convictions for possession of narcotics, failure to appear in the first degree, robbery in the first degree and carjacking.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
When he is sentenced, Jones faces a maximum term of imprisonment of 10 years. A sentencing date has not been scheduled.
Jones has been detained since his arrest on August 8, 2018.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson and Law Student Intern Owen R. Eagan.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Grand Jury Indicts Steven Wiggins on Federal Charges Relating to Death of Dickson County Sheriff’s DeputyRead the Press Release
NASHVILLE, Tenn. – August 8, 2019 – A federal grand jury sitting in Nashville yesterday, returned a four-count indictment charging Steven J. Wiggins, 32, of Dickson, Tennessee with federal carjacking and firearms violations which resulted in the death of Dickson County Sheriff’s Sergeant Daniel Baker. U.S. Attorney Don Cochran immediately filed a notice with the Court that the government intends to seek the death penalty.
After a thorough review by the Department of Justice, Attorney General William P. Barr recently granted authority to seek the death penalty in this case.
According to the indictment and court records, on May 30, 2018, Sergeant Baker encountered Wiggins after responding to a suspicious vehicle call in Dickson County. Sergeant Baker subsequently determined that the vehicle Wiggins was occupying was stolen and ordered Wiggins and his passenger out of the car. Wiggins then fired several rounds at Baker from a .45 caliber handgun. As the wounded deputy lay on the ground, Wiggins fired several more rounds, killing Baker. The indictment also alleges that after shooting Sergeant Baker, Wiggins dragged his body to his patrol car and placed him in the rear seat. Wiggins then drove the patrol car several miles, parked it and set fire to the car.
Wiggins will make an initial appearance before a U.S. Magistrate Judge at a time yet to be determined. He is presumed innocent until proven guilty in a court of law.
Agencies involved in the search and capture of Wiggins and the subsequent investigation include the Dickson County Sheriff’s Department; the 23rd District Attorney General’s Office; the Tennessee Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Tennessee Highway Patrol; the FBI; and numerous other local, state and federal agencies. U.S. Attorney Don Cochran and Assistant U.S. Attorney Robert McGuire are prosecuting the case.
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Franklin County Man Indicted for Charges of Attempted Enticement of a Minor and Soliciting Child PornographyRead the Press Release
St. Louis, MO – A federal grand jury returned an indictment charging Franklin County resident Patrick Estes, 57, with enticement of a minor (18 USC 2422(b)), solicitation of child pornography (18 USC 2252A(a)(3)(B)(ii)), and committing a felony involving a minor while a registered sex offender (18 USC 2260A). Estes has been taken into custody and ordered detained pending trial.
The defendant is a registered sex offender having been previously convicted by the State of Missouri for sexual offenses against minors.
As is always the case, charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Pursuant to our continuing effort to keep children safe, law enforcement is requesting that anyone with more information about this case or other possible victims please contact FBI Task Force Officer Det. Jacob Walk at the Franklin County Sheriff’s Office at 636-583-2567 or Investigator Donya Jackson with the U.S. Attorney’s Office at 314-539-2200.
Fort Wayne Man Convicted After 4-Day Jury TrialRead the Press Release
FORT WAYNE – Shawn Bacon, 39, of Fort Wayne, Indiana was convicted after a four-day jury trial before U.S. District Court Judge Holly Brady of two counts of possessing with intent to distribute controlled substances to include more than 500 grams of methamphetamine and more than 400 grams of fentanyl found in his house and more than 500 grams of a mixture or substance containing a detectable amount of methamphetamine found in his car, being a convicted felon in possession of a firearm, maintaining a drug involved premises, possessing a destructive device and a short barreled rifle not registered to him in the National Firearms Registration and Transfer Record, possessing body armor after having been convicted of a crime of violence, and possessing in furtherance of and carrying during and in relation to the drug trafficking offenses, firearms to include destructive devices, more particularly explosive bombs and a short barreled rifle, announced U.S. Attorney Kirsch.
According to the documents in this case, Bacon, was initially charge by way of a federal complaint, in December 2017 with multiple federal drug and firearm charges which resulted from a search warrant conducted on his residence and his vehicle. The execution of the search warrant resulted in the seizure of 22 firearms, some stolen, found in his car and residence, despite the fact that he had been convicted of at least 4 prior felony convictions. Bacon had many high capacity magazines, body armor, and various rounds of ammunition in this residence. There were destructive devices, more particularly pipe bombs, and a short barreled rifle in his possession that were not registered through the National Firearms Registration and Transfer Record. Bacon also had larger quantities of narcotics (methamphetamine, cocaine, heroin, fentanyl and marijuana) in his possession which were amounts consistent with distribution and not personal consumption. During the arrest process on the complaint, investigators photographed Bacon’s Aryan Brotherhood tattoos. As required under federal criminal procedures, Bacon was charged by way of an 8 count Superseding Indictment on July 10, 2019, on the gun, drug, and body armor charges on which he proceeded to trial.
This case is the result of the investigative efforts of the Bureau of Alcohol Tobacco Firearms and Explosives Fort Wayne Resident Office Agents, ATF Explosives Technology Branch, ATF Forensic Chemistry Laboratory, with the assistance of the Fort Wayne Police Department, Fort Wayne Police Department Vice and Narcotics Division, and the Indiana State Police. The case was prosecuted by Northern District of Indiana Assistant U.S. Attorney Lesly Miller-Lowery.
Former Sacramento Resident Sentenced to over 3 Years in Prison for Failure to Register as a Sex OffenderRead the Press Release
SACRAMENTO, Calif. — Tony Fernandez Barnes, 39, of Las Vegas, Nevada, was sentenced today by U.S. District Judge Morrison C. England Jr. to three years and one month in prison for failure to register as a sex offender, U.S. Attorney McGregor W. Scott announced.
According to court documents, Barnes had three prior Nevada state convictions for pandering of a minor, and failed to register as a sex offender upon his release in 2013. Between 2013 and 2018, Barnes lived in Sacramento and did not register as required under the Sex Offender Registration and Notification Act and Nevada and California law.
This case was the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorney Roger Yang prosecuted the case.
Former Rancho Cordova and Tracy Residents and Utah Resident Indicted for “Refund Fraud” SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 12-count indictment today against Johnathon Ward, 40, formerly of Tracy; Monica Nunes, 39, formerly of Rancho Cordova; and Talalima Toilolo, 44, of Salt Lake City, Utah, charging them with conspiracy to commit bank fraud and bank fraud, U.S. Attorney McGregor W. Scott announced. The indictment also charges Ward and Nunes with aggravated identity theft.
According to court documents, Ward, Nunes, and Toilolo conspired to defraud financial institutions using a scheme called “refund fraud” or “force post refund fraud.” This scheme exploited the refund process used by businesses and retail establishments to pay back customers for returns, reimbursements, and erroneous charges. The defendants posed as merchants and executed fraudulent debit or credit card refunds, which caused the unauthorized transfer of money from a merchant bank account to an account under the defendants’ control.
The defendants allegedly committed this scheme by stealing or purchasing point-of-sale (POS) terminals that are used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ banks to transfer funds to the defendants’ accounts. The defendants then drained the stolen funds from the accounts. The indictment alleges that this scheme caused at least $3.5 million in intended victim losses.
This case is the product of an investigation by the Regional Enforcement Allied Computer Team (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office, and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Ward and Nunes are in custody, and Toilolo was arrested yesterday in Salt Lake City, Utah, on a criminal complaint filed in this district.
If convicted, Ward, Nunes, and Toilolo face a maximum statutory penalty of 30 years in prison and a $1 million fine for each count of bank fraud and conspiracy to commit bank fraud. Additionally, if convicted of aggravated identity theft, Ward and Nunes face a mandatory two-year prison sentence, to be served consecutive to any other sentence, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Postal Workers Union Officer Admits EmbezzlementRead the Press Release
CAMDEN, N.J. – A former secretary-treasurer of a U.S. Postal Workers Union today admitted embezzling $34,500 of union funds, U.S. Attorney Craig Carpenito announced.
Robert Peter, 58, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an information charging him with one count of embezzling funds from the operating account of the Local 526 Postal Workers Union. Local 526 represents approximately 900 members who work in the clerk, maintenance, and motor vehicle crafts for the U.S. Postal Service in southern New Jersey.
Between May 1, 2018, and June 13, 2018, Peter issued eight checks to himself, totaling $22,500, by fraudulently utilizing the union president’s “signature stamp” to authorize the disbursement of members’ money. He also withdrew, without proper authorization, $12,000 in cash from the union’s account through ATM machines in Atlantic City.
The count of embezzlement carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain to the defendant or loss to the victim, whichever is greater. Sentencing is scheduled for Nov. 26, 2019.
U.S. Attorney Craig Carpenito credited the special agents of the Office of Labor Management Standards from the Philadelphia-Pittsburgh District Office, under the direction of District Director Kevin Kennedy, with the investigation leading to today’s guilty plea.
The government is represented by V. Grady O'Malley, Senior Litigation Counsel, of the U.S. Attorney's Office Organized Crime/Gangs Unit in Newark.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Former Personal Care Aide Pleads Guilty to Health Care FraudRead the Press Release
WASHINGTON – Mobolaji Tina Stewart, 58, of Laurel, Maryland, pled guilty today to a federal charge of health care fraud stemming from a scheme in which she caused the District of Columbia’s Medicaid program to be defrauded out of more than $500,000.
The announcement was made by U.S. Attorney Jessie K. Liu; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Charles A. Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C., and Daniel W. Lucas, District of Columbia Inspector General.
Stewart pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Stewart faces a likely range of 18 to 24 months in prison and a fine of up to $75,000. The plea agreement calls for Stewart to pay $534,073 in restitution and $302,414 in a forfeiture money judgment. The Honorable Senior Judge John D. Bates scheduled sentencing for October 24, 2019.
According to a statement of offense submitted to the Court, Stewart worked as a personal care aide for twelve home health agencies at various times between January 2014 and December 2018. The home health agencies employed Stewart to assist D.C. Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Stewart was supposed to document the care she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered.
Between January 2014 and November 2018, Stewart caused the D.C. Medicaid Program to issue payments totaling $534,073 for services that she did not render. As part of her fraud scheme, she submitted false timesheets to different home health agencies claiming that she provided 24 hours or more of personal care aide services. She also submitted false timesheets claiming to have provided personal care aide services while she was out of the country. She also submitted false timesheets claiming to have provided personal care aide services to a beneficiary while he was hospitalized. Stewart fraudulently earned more than $300,000 in wages as a result of the healthcare fraud scheme.
In announcing the plea, U.S. Attorney Liu, Assistant Attorney General Benczkowski, Acting Special Agent in Charge Dayoub, Special Agent in Charge Dixon of U.S. HHS-OIG, and District of Columbia Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services Office of Inspector General, and the District of Columbia Office of Inspector General. They also expressed appreciation for the work of Paralegal Specialist Brittany Phillips and former Paralegal Specialist Robert Fishman. Finally, they commended the work of Assistant U.S. Attorney Kondi Kleinman and Trial Attorney Amy Markopoulos, who are prosecuting the case.
Former Doctor Pleads Guilty to Federal Criminal Charges for Illegally Selling Painkillers for Cash at His High Desert Medical ClinicRead the Press Release
LOS ANGELES – An ex-physician pleaded guilty today to federal criminal charges for illegally prescribing and distributing the semi-synthetic opioid painkiller oxycodone to undercover operatives who visited his Victorville medical office.
Wendell Mark Street, 67, of Las Vegas, pleaded guilty to two felony counts of illegally prescribing oxycodone to patients without a legitimate medical purpose. United States District Judge George H. Wu has scheduled a December 9 sentencing hearing, at which time Street will face a statutory maximum sentence of 40 years in federal prison.
Street admitted in court today that, while he was a licensed anesthesiologist, on August 1, 2013, he sold two prescriptions for $300 each to a confidential informant and an undercover investigator with the California Medical Board. He further admitted that he wrote the prescriptions without a legitimate medical purpose and intentionally acted outside the usual course of professional practice, including by failing to conduct a physical examination, establish diagnostic testing, provide a treatment plan, and create documentation to establish a medication indication for the prescriptions.
The investigation showed that Street prescribed 7,769 prescriptions for narcotics, including 437,000 doses of oxycodone, from November 2012 to November 2013.
Street was charged in a 10-count indictment returned by a federal grand jury in February 2018. During the investigation into Street, investigators executed a search warrant at his Victorville office in 2014. Street surrendered his California medical license in 2016.
This matter was investigated by the Drug Enforcement Administration – Riverside District Office Diversion Group.
This case is being prosecuted by Assistant United States Attorneys Bryant Y. Yang of the International Narcotics, Money Laundering, and Racketeering Section and Jason C. Pang of the General Crimes Section.
Former District Government Employee Sentenced to 18 Months for Carrying Out Embezzlement SchemeRead the Press Release
WASHINGTON – Gary T. Holliday, 50, a former training supervisor and policy analyst for the District of Columbia Department of Human Services (DHS), was sentenced today to 18 months in prison for his involvement in a scheme in which he defrauded the agency of more than $400,000 in temporary assistance benefits meant for needy District residents.
The announcement was made by U.S. Attorney Jessie K. Liu, Charles A. Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, District of Columbia Inspector General Daniel W. Lucas, and Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
Holiday, of Fort Washington, Maryland, pled guilty in the U.S. District Court for the District of Columbia in February 2019. He was sentenced by the Honorable Rudolph Contreras. The judge also ordered Holliday to pay $404,800.31 in restitution and in forfeiture. Upon completion of his prison term, Holliday will be placed on two years of supervised release.
According to plea documents, Holliday embezzled money intended to provide temporary support and assistance to low-income families and individuals. Specifically, he targeted the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamps program, and Temporary Assistance for Needy Families (TANF), which consists of cash benefits. Benefits in both programs were provided to clients via electronic benefit cards.
Holliday’s job responsibilities at DHS included representing the agency at “fair hearings” that involved disputes between DHS and its clients about eligibility and benefits. In cases where the agency lost the hearing, Holliday was responsible for creating a memorandum summarizing the conclusions of the hearing and directing another employee at DHS to calculate and pay whatever “underpayments” the client was owed. Holliday created and submitted a fraudulent memorandum in which he falsely claimed that as a result of a purported fair hearing, a client of DHS needed to be processed for SNAP and TANF underpayments.
In fact, the named client had not applied for benefits (the client’s alleged application had been forged by Holliday) and there had never been a fair hearing regarding the client’s eligibility for benefits. As a result of the Holliday’s actions, another employee created an active underpayment account for the client in the DHS computer system. Then, between June 2017 and November 2018, Holliday used his access to the DHS computer system to create over 400 fraudulent underpayments for the client, totaling in excess of $400,000. He accessed the fraudulent proceeds by using the client’s benefit card.
In announcing the sentence, U.S. Attorney Liu, Acting Special Agent in Charge Dayoub, District of Columbia Inspector General Lucas, and Special Agent in Charge Dixon of U.S. HHS-OIG, commended the work of those who investigated the case from the FBI’s Washington Field Office, the District of Columbia Office of the Inspector General, and the U.S. Department of Health and Human Services Office of Inspector General. They also expressed appreciation for the work of Assistant U.S. Attorney Emily A. Miller who prosecuted the case and Paralegal Specialist Aisha Keys who assisted.
Former CEO of Israeli Company Found Guilty of Orchestrating $145 Million Binary Options Fraud SchemeRead the Press Release
The former CEO of the Israel-based company Yukom Communications, a purported sales and marketing company, was found guilty yesterday for orchestrating a scheme to defraud investors in the United States and worldwide by fraudulently marketing approximately $145 million in financial instruments known as “binary options.”
Lee Elbaz, 38, a citizen of Israel, was found guilty after a three-week jury trial of one count of conspiracy to commit wire fraud and three counts of wire fraud. Sentencing is scheduled for Dec. 9, 2019, before U.S. District Judge Theodore D. Chuang of the District of Maryland, who presided over the trial. Elbaz was arrested on a criminal complaint in September 2017 and indicted in March 2018.
“This verdict demonstrates that the Department will hold accountable those who deceive American investors with false claims and rates of returns,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “We are committed to prosecuting financial fraud, even when perpetrated from abroad.”
“I would like to commend the FBI agents, analysts and our DOJ colleagues for their hard work to seek justice for the victims of Lee Elbaz’s fraud,” said Acting Assistant Director in Charge of the FBI's Washington Field Office, John P. Selleck. “We would not be successful in our work if not for our partners around the world; and this investigation demonstrates that no matter where fraudsters and criminals try to hide, we will work tirelessly to locate them.”
According to the evidence presented at trial, the defendant and her co-conspirators fraudulently sold and marketed binary options to investors located in the United States and throughout the world through two websites, known as BinaryBook and BigOption. The evidence showed that in her role as CEO of Yukom, Elbaz, along with her co-conspirators and subordinates, misled investors using BinaryBook and BigOption by falsely claiming to represent the interests of investors when, in fact, the owners of BinaryBook and BigOption profited when investors lost money; by misrepresenting the suitability of and expected return on investments through BinaryBook and BigOption; by providing investors with false names and qualifications and falsely claiming to be working from London; and by misrepresenting whether and how investors could withdraw funds from their accounts. Representatives of BinaryBook and BigOption, working under Elbaz’s supervision, misrepresented the terms of so-called “bonuses,” “risk free trades” and “insured trades,” and deceptively used these supposed benefits in a manner that in fact harmed investors, the evidence showed.
This case was investigated by the FBI’s Washington Field Office. Principal Assistant Chief Henry Van Dyck and Trial Attorneys L. Rush Atkinson and Caitlin Cottingham of the Criminal Division’s Fraud Section are prosecuting the case. Assistant Chief Tracee Plowell and Trial Attorney Ankush Khardori previously prosecuted the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information at: https://www.justice.gov/criminal-vns/case/lee-elbaz.
Final Defendant Pleads Guilty in Bid-Rigging Conspiracy Involving Government ContractsRead the Press Release
SACRAMENTO, Calif. — Loraine Dixon, 61, of Granite Bay, pleaded guilty today to a conspiracy to commit bid rigging, U.S. Attorney McGregor W. Scott announced.
According to court documents, Dixon conspired with John Brewer, 50, of San Francisco, and Brent Vinch, 49, of New York, to rig the state of California’s competitive bidding process. Dixon was a regional representative for a software company that produced software used by several California state agencies. Brewer and Vinch were the owners of, and senior executives for, a company called Expert Network Consultants (ENC), which submitted bids to the state for various government contracts, including contracts to supply the software produced by Dixon’s employer.
Working together, Dixon, Brewer, and Vinch thwarted the competitive bidding process in order to ensure that ENC won contracts with California agencies to supply the software in question. The process requires that any IT purchase over $4,999 and not advertised must obtain at least two bids from prospective sellers, and the contract must be awarded to the lowest bidder. Brewer solicited bids from individuals and companies that had no intention or ability to perform the work called for in the contracts, and Brewer directed Vinch to create and submit non-competitive bids. Dixon often directed Brewer and Vinch to create, collect, or submit bids to certain agencies, and on other occasions advised them on how to act in bidding. Dixon solicited cash and wine from Brewer and Vinch to continue steering contracts to them and advising them on the non-competitive bidding process, and she joined ENC as an employee in 2012.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew M. Yelovich prosecuted the case. The California Attorney General’s Office conducted the initial investigation into this matter.
Brewer was sentenced on April 26, 2018, to 15 months in prison.
Dixon is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 31. Vinch is scheduled to be sentenced on Jan. 9, 2020. They each face a maximum statutory penalty of 10 years in prison and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Prison Inmate Sentenced for Assaulting Fellow InmateRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Carl Richardson, 40, was sentenced today by U.S. District Judge James D. Peterson to 48 months in federal prison for assaulting an inmate at the Federal Correctional Institution at Oxford, Wisconsin. Richardson pleaded guilty to this charge on May 22, 2019. This sentence is to be served consecutively to Richardson’s current federal sentence for being a felon in possession of a firearm.
On November 5, 2017, Richardson brutally attacked a fellow inmate at FCI-Oxford using a combination lock that he secured to the end of a belt. As a result, the victim sustained significant injuries to his hands, face, neck, and head. During sentencing, Judge Peterson stressed the importance of keeping people safe in prison. He also explained that inmates insult the integrity of the institution by engaging in such conduct.
The charge against Richardson was the result of an investigation conducted by the Federal Bureau of Investigation and the Bureau of Prisons – Special Investigative Services. The prosecution of the case has been handled by Special Assistant U.S. Attorney Chadwick M. Elgersma.
Federal Jury Convicts on Federal Gun and Ammunition ChargesRead the Press Release
Yesterday, a federal jury convicted Christopher McNabb (a.k.a. “Rudy”) from Leeds, Alabama, of three firearm and ammunition related offenses announced U.S. Attorney Jay E, Town and the Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
The jury returned its guilty verdict against McNabb after two days of testimony before U.S. District Judge Karon O. Bowdre. McNabb will be sentenced on December 10, 2019, and faces up to 10 years in federal prison.
“Our prosecutors and law enforcement partners continue to show that they will not leave their fight in the dressing room, and as a result another violent offender has been convicted,” Town said. “This is the third trial, and third conviction, in the last three weeks of this type. The public can rest assured that we will continue to bring justice to these defendants. These criminals can rest assured in a federal prison bed.”
“Reducing the potential for violent crime in this case was critical due to ATF partnering with our state, local and federal partners,” Watson said.
Evidence at trial proved that McNabb, a known member of the Southern Brotherhood white supremacist gang, possessed a machinegun, a .223 caliber assault rifle as well as two .380 caliber pistols and assorted ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant United States Attorneys Kevin Sanchez and Michael Pillsbury prosecuted the case.
Fayetteville Man Sentenced to Seven Years for Drug DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced MIGUEL ANGEL GIERBOLINI, 27, of Fayetteville, North Carolina, to 84 months imprisonment, followed by 5 years of supervised release.
GIERBOLINI was named in an Indictment filed on May 8, 2018, and on August 7, 2018, he pled guilty to Conspiracy to Distribute and Possess with the Intent to Distribute 5 Kilograms or More of Cocaine and a quantity of Heroin.
Investigators with the Fayetteville Police Department, the Sampson County Sheriff’s Office, and the Federal Bureau of Investigation identified members of a Puerto Rican drug trafficking organization (DTO) that were shipping kilograms of cocaine locations in Cumberland and Sampson counties, North Carolina via the United States Postal Service. Surveillance, wiretap interceptions, and confidential sources of information (CSIs) were used to identify multiple drug traffickers working in connection with the DTO. Indicted members of the DTO include Luis Joel Robles Latorres; Wilmer Luis Mejias; Luis Morales; Wayne Williams; Carlton Roy Hughes; and Miguel GIERBOLINI.
The investigation showed that the DTO shipped more than 100 kilograms of cocaine from Puerto Rico to North Carolina, with a total street value of approximately $3.5 million. Agents also seized multiple firearms from DTO members pursuant to search warrants. Luis Joel Robles Latorres was identified as the head of the DTO. Wilmer Mejias assisted in the distribution of cocaine and the collection of drug proceeds. Wayne Williams, Carlton Hughes, and Luis Morales were also large-scale drug distributors in North Carolina.
The investigation also identified GIERBOLINI as one of the suppliers within the DTO. He worked with DTO leader Luis Joel Robles Latorres, who was sentenced to 162 months imprisonment on June 18, 2019.
Agents began receiving information about the DTO from CSI #1. Specifically CSI #1 identified Latorres as the individual responsible for arranging cocaine shipments from Puerto Rico. Latorres was also responsible for collecting drug proceeds and sending them back to the DTO in Puerto Rico.
GIERBOLINI was identified as Latorres’ drug business partner by a cooperating defendant (CD#1). CD#1 stated that between the fall of 2015 through January 2016, CD#1 received between 4 and 9 ounces of cocaine per week from Latorres. CD#1 also noted that GIERBOLINI was his heroin source of supply, and he purchased 3 ounces of heroin from GIERBOLINI in the summer of 2017. Furthermore, CD#1 noted that Latorres and GIERBOLINI possessed firearms. Specifically, Latorres possessed a handgun during several of the drug transactions, and GIERBOLINI wore a gun in a holster during drug transactions. CD#1 advised he purchased cocaine directly from GIERBOLINI on four occasions. The total amount of cocaine purchased directly from GIERBOLINI during the drug transactions was 18 ounces (510.3 grams).
A second cooperating defendant (CD#2) identified GIERBOLINI as Latorres’ “right hand man,” and the witness noted that all of the cocaine received from Puerto Rico went to GIERBOLINI for “safekeeping” after it was inspected by Latorres. Specifically, CD#2 noted that at any given time, GIERBOLINI stored between 1 and 4 kilograms of cocaine at his residence in Fayetteville for Latorres. GIERBOLINI also kept firearms and large amounts of U.S. Currency at his home.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF) named Operation La Vida Loca. 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 on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Investigation of this case was conducted by the Fayetteville Police Department, the Federal Bureau of Investigation, the Sampson County Sheriff’s Office, and the Wilmington Police Department. Assistant United States Attorney Scott A. Lemmon represented the government.
Eau Claire Man Sentenced to 7 Years for Possessing Methamphetamine for SaleRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Manuel Small, 48, Eau Claire, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to seven years in federal prison for possessing methamphetamine with the intent to sell it. Small pleaded guilty to this charge on April 17, 2019.
Small was arrested in Eau Claire on July 30, 2018, after officers searched his hotel room and found over 50 grams of methamphetamine packaged for resale. Officers had been surveilling the room a few days before the search and watched numerous individuals visit the room. Officers received information that Small was selling methamphetamine out of that room during that time.
In sentencing Small, Judge Peterson considered the amount methamphetamine involved, the fact that Small involved others to deal for him, and Small’s extensive and serious criminal history, including several convictions for domestic violence. Judge Peterson was also concerned that Small’s criminal history began later in life when he was in his 30’s, and continued until his arrest at an age one would expect to see criminal behavior begin to subside. Judge Peterson nonetheless saw the potential for Small to be law abiding, if he could address his substance abuse and anger issues.
The charge against Manuel Small was the result of an investigation conducted by the Eau Claire Police Department and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Laura A. Przybylinski Finn.
Drug Trafficker Who Possessed Firearm Sentenced to 12 Years in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Daniel Rodriguez-Santos, age 38, of Yakima, Washington, was sentenced after having been convicted after a 2-day jury trial in May 2019, of possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. United States District Judge Salvador Mendoza, Jr., sentenced Rodriguez-Santos to a 12-year term of imprisonment, to be followed by a five-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, law enforcement officers with the U.S. Drug Enforcement Administration (“DEA”) and the Yakima Police Department obtained a warrant to search Rodriguez-Santos’ residence. During execution of the warrant, officers found a large quantity of methamphetamine and a .380 caliber handgun and ammunition in his bedroom closet.
United States Attorney Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for individuals who may engage in drug trafficking and firearm-related offenses. I commend the DEA and Yakima Police Department officers for their tireless efforts in combating drug trafficking and related offenses in our community.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Yakima Resident Office of the U.S. Drug Enforcement Administration, and the Yakima Police Department. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Dominican Republic National Who Operated the Underground Nightclub in St. Thomas, USVI Arrested for Crimes Related to Alien Smuggling and Prostitution SchemeRead the Press Release
St. Thomas, USVI - Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division and U.S. Attorney Gretchen C.F. Shappert for the District of the Virgin Islands. Announced today that Yohanna Gonzalez-McFarlane, 38, of the Dominican Republic, was arrested yesterday and charged in a criminal complaint with one count of alien harboring for financial gain and one count of interstate transportation for prostitution.
According to court documents unsealed today, between at least December 2018 and August 2019, defendant Gonzalez-McFarlane operated the Underground Nightclub in St. Thomas. She recruited young foreign women and arranged to have them smuggled into the U.S. Virgin Islands to engage in prostitution while working at the bar. The defendant then housed the women at a residence on St. Thomas and required them to engage in commercial sex at the defendant’s nightclub to repay their smuggling debts. According to court documents, the defendant’s activities came to law enforcement’s attention when one of the women originally from Venezuela secretly reported the conditions of her treatment to her family via text messages and calls. The young woman’s family members in turn contacted the Virgin Islands Police Department (VIPD). According to court documents, the young woman sent messages indicating that she was forced to engage in prostitution and was in fear of physical danger.
Court documents also indicate that the Federal Bureau of Investigation (FBI) conducted a recovery operation and rescued the young woman from the bar. An FBI agent posing as a bar patron, negotiated with defendant Gonzales-McFarlane to obtain a "date" with the young woman, away from the premises of the bar. As a result, the young woman was able to escape.
Court documents also describe threats allegedly made by the defendant and others at the bar to kill another one of the young foreign women forced to work there and to burn one of the women’s passports.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until found guilty beyond a reasonable doubt in a court of law.
This case is being investigated by Homeland Security Investigations and the FBI, and supported by Customs and Border Protection, the U.S. Marshal Service, U.S. Postal Inspection Service, Drug Enforcement Administration, and VIPD. It is being prosecuted by Assistant U.S. Attorney Meredith Edwards for the District of the Virgin Islands and Trial Attorney Mark Probasco and Special Litigation Counsel Rose Gibson for the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit.
Dominican National Sentenced for Social Security Fraud and Identity TheftRead the Press Release
BOSTON – A Dominican national residing in Lawrence was sentenced yesterday in federal court in Boston for Social Security fraud and aggravated identity theft.
Ulises Mota Carmona, 36, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to two years and one day in prison. He will be subject to deportation upon completion of his sentence. Mota Carmona was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
Dubbed “Double Trouble,” the investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On Aug. 5, 2015, Mota Carmona applied for a learner’s permit with the Massachusetts Registry of Motor Vehicles using the name and Social Security number of a U.S. citizen from Puerto Rico. He presented a birth certificate and Social Security card in the other person’s name to the Massachusetts Registry of Motor Vehicles as proof of his identity. Mota Carmona also used the name and Social Security number of a U.S. citizen to receive MassHealth benefits.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Arrested in U.S. Virgin Islands for Crimes Related to Alien Smuggling and Prostitution SchemeRead the Press Release
Yohanna Gonzalez-McFarlane, 38, of St. Thomas, U.S. Virgin Islands, was arrested on August 7, and charged in a criminal complaint with one count of alien harboring for financial gain and one count of interstate transportation for prostitution. The arrest was announced by Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division and U.S. Attorney Gretchen C.F. Shappert for the District of the Virgin Islands.
According to court documents that were unsealed today, between at least December 2018 and August 2019, the defendant recruited young foreign women and arranged to have them smuggled into the U.S. Virgin Islands. The defendant then housed the women at a residence on St. Thomas and required them to engage in commercial sex at the defendant’s nightclub to repay a smuggling debt. The case came to law enforcement’s attention when one of the women reported the conditions of her treatment to her family, who then called the Virgin Islands Police Department.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until found guilty beyond a reasonable doubt in a court of law.
This case is being investigated by Homeland Security Investigations and the FBI. It is being prosecuted by Assistant U.S. Attorney Meredith Edwards for the District of the Virgin Islands and Trial Attorney Mark Probasco and Special Litigation Counsel Rose Gibson for the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit.
Department of Justice Antitrust Division to Hold Workshop on Competition in Labor MarketsRead the Press Release
WASHINGTON – The Department of Justice will hold a public workshop on September 23, 2019, to discuss the role of antitrust enforcement in labor markets and promoting robust competition for the American worker. The workshop will cover a variety of labor competition issues, including, among other topics: anticompetitive no-poach and wage-fixing agreements, approaches to labor market definition, the role of employer collaboration and contractual arrangements between employers on competition for workers, labor monopsony in merger enforcement, and antitrust exemptions for collective bargaining and other labor union activity. Panelists will discuss recent developments in the law, economic research, and policy proposals, as well as how to effectively develop cases challenging labor monopsony.
Assistant Attorney General for Antitrust Makan Delrahim will open the workshop, which will bring together economists, attorneys, labor representatives, and industry experts who examine competition in labor markets and who have experience litigating or studying labor antitrust cases. The Division intends to explore the practical considerations that antitrust enforcers and private litigants face in bringing cases that involve labor markets. The workshop will begin with an overview of the status of labor economics, followed by a series of panels examining (1) approaches to defining labor markets; (2) antitrust analysis of labor restraints arising out of competitor collaborations and contractual partnerships between employers; and (3) statutory and non-statutory antitrust exemptions for labor union activities.
The Department of Justice invites comments from the public on the topics covered by this workshop. Interested parties may submit public comments online now through October 23, 2019 at [email protected].
The workshop is free and open to the public and will take place in the Great Hall of the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, D.C., from 10:00 a.m. to 5:00 p.m. EST on September 23, 2019. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, directions to the event, and a list of speakers will be available in the near future on the event web page. Attendees are encouraged, but not required, to register in advance for the workshop at [email protected]. Members of the press also should copy [email protected] on their registration email. Seating will be on a first-come, first-served basis. Attendees should bring a valid government-issued photo ID (government badge, license, passport, etc.) and arrive in time to go through security.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact Alexei Woltornist in the Office of Public Affairs at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
Defense Contractor to Pay $3.3M to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Ambu, Inc. (“Ambu”), will pay $3.3 million to resolve False Claims Act allegations that it manufactured products in China and Malaysia for sale to United States government agencies in violation of the Trade Agreements Act (“TAA”).
The settlement resolves allegations that, between December 2011 and March 2015, Ambu, a provider of medical supplies, submitted false claims to the Defense Logistics Agency (“DLA”) and the Department of Veterans’ Affairs (“VA”) for payment relating to Ambu’s sales of medical supplies. The Trade Agreements Act (“TAA”) requires that products sold to government agencies must come only from countries with which the United States has a trade agreement. While many countries qualify as TAA compliant countries, China and Malaysia do not. Ambu began manufacturing its products in these countries and selling them to government agencies in violation of the TAA. Indeed, over 80% of Ambu’s sales to DLA and VA under these contracts were from these non-compliant countries during the years covered by the settlement. Ambu executives certified that its products came from compliant countries despite allegedly knowing that most of the products were manufactured in non-compliant countries.
“Congress passed the Trade Agreements Act as an important part of the United States’ economic, diplomatic, and defense strategy,” said U.S. Attorney McSwain. “Contractors must follow the law and manufacture their products in TAA compliant countries, whether they like it or not. By investigating the allegations and reaching a settlement in this case, we have put all companies doing business with the United States government on notice that the TAA is an important law that must be respected.”
“The Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of the U.S. Defense Department’s (DoD) procurement process and ensuring that defense contractors comply with all applicable laws, such as the Trade Agreements Act (TAA),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “The settlement agreement announced today is the direct result of a joint effort by the DCIS, Army CID, VA-OIG and the U.S. Attorney’s Office, to guarantee that medical supplies purchased by the DoD for members of the U.S. military and their dependents are manufactured in TAA compliant countries.”
This case was a cooperative effort among the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Defense Criminal Investigative Services, the United States Army Criminal Investigation Division and the Department of Veterans Affairs Office of Inspector General. For the United States Attorney’s Office, Assistant United States Attorney Colin Cherico and Auditor Dawn Wiggins handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Dallas Brothel Owner Targeted in Sting Operation Pleads GuiltyRead the Press Release
Brothel owner Helen Kim pleaded guilty today to a racketeering charge, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Ms. Kim, 59, was apprehended by law enforcement in November, after a sting operation at a Dallas hotel liberated a number of foreign-born commercial sex workers.
She pleaded guilty Thursday morning to one count of use of a facility of interstate commerce in aid of a racketeering enterprise involving prostitution before Magistrate Judge Renee Toliver.
“I am proud that our law enforcement partners poured significant resources into this sting operation in order to liberate the numerous women that Ms. Kim sold for sex,” said U.S. Attorney Nealy Cox. “We were determined to hold her accountable for her willingness to demean other women for financial gain.”
In plea papers, Ms. Kim – the owner of brothels “Pink One” and “Illusion Spa” – admitted that she agreed to take more than $40,00 in exchange for providing illicit sex services to a group of out of town “businessmen” partying at a local hotel.
Those “businessmen” were in fact undercover law enforcement. More than 50 officers from the Dallas Police Department, the Texas Department of Public Safety, and Homeland Security Investigations participated in the Nov. 1 undercover operation, which involved agents posing as businessmen posted at the hotel bar and in rooms upstairs.
According to an indictment returned in November, Ms. Kim and her 36-year-old son had previously negotiated the businessmen’s private sexual liaisons with 20 to 25 women at a rate of $2,000 each, for a total of at least $40,000. The pair promised the “girlfriend experience,” and even allowed an undercover detective to meet several of the women at a local Sushi bar.
“The way this is set up,” her son allegedly told the undercover officer, “it could be considered human trafficking.”
In her plea papers, Ms. Kim admitted that she employed more than 10 commercial sex workers at her two brothels. Many of the women lived at the establishments, in order to cater to customers at all times of the day and night, she acknowledged.
Ms. Kim now faces up to five years in federal prison.
Assistant U.S. Attorneys Ryan Raybould and Cara Foos Pierce are prosecuting the case.
Convicted Felon Charged with Firearm and Drug Law ViolationsRead the Press Release
PITTSBURGH, PA- A resident of Duquesne, PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on July 30 and unsealed today, named Rarji Neal, 26, as the sole defendant.
According to the Indictment, on December 11, 2018, Neal possessed with intent to distribute 100 grams or more of heroin and a quantity of cocaine. The indictment further alleges that Neal unlawfully possessed a Ruger 9 millimeter firearm, a Glock 9 millimeter firearm, an Intratec 9 millimeter firearm, and ammunition, after being convicted of carrying a firearm without a license. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of life in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy Criswell Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.