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Friday 21 June 2019
Illegal Alien Arrested with Enough Fentanyl to Kill One Million People Pleads Guilty to Heroin TraffickingRead the Press Release
Gulfport, Miss. – Pablo Vega-Ontanon, 53, an illegal alien from Mexico living in Georgia, pled guilty today before U.S. District Judge Sul Ozerden to possession with intent to distribute one kilogram or more of heroin, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On November 6, 2018, Vega-Ontanon and two co-defendants arrived in Gulfport to sell heroin to a confidential informant. They claimed to have ten kilograms of heroin hidden in a compartment of their vehicle. All three were arrested shortly thereafter. The substance was eventually tested and found to contain nine kilograms of heroin and one kilogram of fentanyl.
That amount of fentanyl can produce one million fatal doses.
Vega-Ontanon was indicted on November 27, 2018 along with co-defendants Eder Ortega- Casarrubias and Eric Estudillo Carrazco.
Vega-Ontanon will be sentenced by Judge Ozerden on September 23, 2019 at 9:00 a.m., and faces a maximum penalty of life in prison and a $10,000,000 fine.
Ortega- Casarrubias pled guilty on March 20, 2019 and will be sentenced by Judge Ozerden on June 26, 2019. Carrazco is awaiting trial.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
I-80 Bust Sends Indiana Man to PrisonRead the Press Release
United States Attorney Joe Kelly announced that Robert Eugene Huff, 69, formerly of Indianapolis, Indiana, was sentenced today in Lincoln, Nebraska, to 1 year in prison by Chief United States District Judge John M. Gerrard, for interstate transportation in aid of racketeering. In addition to his prison sentence, Huff will be required to serve 2 years on supervised release. Huff also forfeited $149,746.00 in cash and a 2016 Ford F-350 truck.
In December, 2017, the Lancaster County Sheriff’s Department stopped Huff’s pickup for following too closely as it was travelling through Lancaster County on Interstate 80. Huff was the driver and lone occupant of the vehicle. Huff stated that he had come from Brown County, Indiana, and was going back to his home in Chico, California. During that encounter a K9 officer was called to the scene of the stop. The K9 indicated to the odor of a controlled substance coming from the vehicle and the vehicle was searched.
Upon opening the tailgate and the topper, the deputies saw a large tote, locked and cable-tied to the bed of the pickup. The K9 officer was able to put his hand inside the top of it and pulled out vacuumed-sealed packages of money. There was also a tool chest, which held several bundles of money with sticky notes on them with people’s name and amounts on the notes. The deputies also found a backpack which held a $10,000.00 bundle of one hundred dollar bills, a $3,000.00 bundle of ten-dollar bills and several hundreds of dollars in one-dollar bills.
One of the officers asked Huff about the lock on the tote and Huff stated that he did not have a key for the bag, as it belonged to his son. Deputies later found the key among Huff’s belongings. Once the bags of money were opened, officers stated the currency smelled like raw marijuana. The currency was later tested and tested positive for cannabis. In all, $149,746.00 was recovered from the vehicle.
The deputies also found notes/paperwork/ledgers detailing Huff’s interstate travel across the country with mileage consistent with a trip from Chico, California, to an area south of Indianapolis, then back home to California. These notes provided information indicative of drug distribution activity. The paperwork indicated Huff had made two trips per month from March, 2016, to the date of the traffic stop. Based on an estimated $2,000 per pound value for the purchase of marijuana in California, the money seized by the Officers would convert to approximately 74.8 pounds of marijuana.
This case was investigated by Lancaster County Sheriff’s Department.
Husband and Wife Sentenced to Prison in Compounding Healthcare Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Edward Leonard Wells, Jr. (34, North Carolina) to two years and eight months in federal prison for conspiracy to commit healthcare fraud and aggravated identity theft. On April 18, 2019, Wells’s estranged wife, Alcira Mercedes Wells (34, Connecticut), was sentenced to 18 months in federal prison for conspiracy to commit healthcare fraud. The court also entered a money judgment of $32,747.93, the proceeds of the healthcare fraud conspiracy. Alcira Wells and Edward Wells had pleaded guilty in January 2019.
According to court documents, starting in September 2014 and continuing through February 2015, Alcira Mercedes Wells was a marketing representative for Centurion Compounding, Inc. As such, she earned and was promised commissions for each paid claim resulting from compounded creams marketed by Centurion and prescribed to a health care plan beneficiary recruited by Alcira Wells or other marketing representatives working for her.
Centurion was a marketing firm located in Pasco County that employed representatives to market compounded medications, specifically creams for pain and scars, among others, to beneficiaries of health care benefit programs, particularly TRICARE. These creams ranged in price from approximately $900 to $21,000 for a one-month supply. Centurion paid its marketing representatives a percentage of each paid claim, which ranged from 15-30% of the total claim amount.
Edward Leonard Wells, Jr. was married to Alcira Wells and worked as a Staff Sergeant in the United States Army stationed at Ft. Bragg in North Carolina.
Alcira and Edward Wells conspired to photocopy or otherwise duplicate a doctor’s signature, name, address, NPI number, and DEA number from an authorized prescription for these compounded creams onto scores of forged prescription forms in order to make claims for Centurion marketed creams for TRICARE beneficiaries whom the doctor never saw. This includes claims for prescription compounded creams for the Wells’s own family members, such as their three minor children. Alcira and Edward Wells then submitted and caused to be submitted dozens of fake and fraudulent prescriptions for Centurion-marketed compounded medications for U.S. Army personnel stationed at Ft. Bragg. The purported prescriber of these prescriptions never wrote, authorized, or knew about them.
Edward Wells recruited personnel stationed with him at Ft. Bragg, most of whom were subordinate in rank to him, and paid and offered to pay these TRICARE beneficiaries to obtain the compounded creams.
Alcira and Edward Wells caused TRICARE to be billed at least $1.24 million and TRICARE paid more than $1 million as a result of false and fraudulent claims submitted and caused to be submitted by them during the conspiracy.
This case was investigated by the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services - Office of Inspector General, the Federal Bureau of Investigation, the U.S. Army Criminal Investigation Command, and the Naval Criminal Investigative Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Greenville Man Sentenced for Drug TraffickingRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge Louise W. Flanagan sentenced TRAWN JOVAL RODGERS, 39, of Greenville, North Carolina to 98 months imprisonment, followed by 3 years of supervised release.
RODGERS was named in a three-count Indictment filed on June 13, 2018 charging him with three counts of distribution of a quantity of cocaine. On August 14, 2018, RODGERS pled guilty to one of those charges.
According to the investigation, RODGERS distributed cocaine in Greenville, North Carolina. As part of the investigation, law enforcement made controlled drug purchases directly from RODGERS. On June 19, 2018, RODGERS was arrested, following which officers seized cocaine and drug paraphernalia during a search of his apartment.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. 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 on this link. https://www.justice.gov/usao-ednc/tbnc
Investigation of this case was conducted by the Greenville Regional Drug Task Force consisting of the Greenville Police Department, Drug Enforcement Administration (DEA), Winterville Police Department, East Carolina University Police Department, and North Carolina State Bureau of Investigation. Assistant United States Attorney Dena King represented the government.
Gloucester Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON - A Gloucester man pleaded guilty yesterday in federal court in Boston to bank robbery.
Michael Robinson, 40, pleaded guilty to one count of bank robbery before U.S. District Court Judge William G. Young, who scheduled sentencing for Sept. 24, 2019.
On Nov. 19, 2018, a man, later identified as Robinson, entered the Institution for Savings Bank branch in Gloucester, walked up to the teller counter, passed a handwritten note to the teller, and stole $2,650. Within minutes of the robbery, local police responded to the bank. They reviewed bank surveillance footage and recognized Robinson as the robber. Police also matched bank surveillance footage of Robinson to a recent Facebook photograph Robinson posted the previous weekend. In that Facebook photo, Robinson was wearing the same clothing he wore when he robbed the bank. The investigation also revealed possible locations where Robinson might be, and, only a few hours after the robbery, police apprehended Robinson on a bus in another city.
The charge provides for a sentence of no greater than 20 years in prison, up to five years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Gloucester Police Chief Edward G. Conley made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Gadsden County Deputy Sheriff Charged with Facilitating Drug Trafficking OffensesRead the Press Release
TALLAHASSEE, FLORIDA – Gadsden County Sheriff’s Deputy Joseph Barnes, Jr., 52, of Quincy, has been arrested on a federal criminal complaint alleging that he unlawfully used a communication facility to aid or facilitate the possession with intent to distribute a controlled substance. Barnes was released on court-ordered conditions that included surrendering his two service weapons and the trained K-9 that played prominently in Barnes’ alleged criminal activity. The criminal complaint was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
According to the criminal complaint, Barnes actively aided individuals who distributed drugs in the Gadsden County area by alerting these individuals that federal law enforcement was watching them. In addition, he is alleged to have physically examined drug transport vehicles to determine if law enforcement had attached GPS tracking devices to vehicles about to be used for drug transportation. The complaint also alleges that he used his Gadsden County K-9, which was trained to detect the odor of narcotics residue, to determine whether a law enforcement K-9 could detect the presence of drugs in cars equipped with a hidden compartment to transport a load of drugs. Barnes allegedly used his cell phone to facilitate meetings with these individuals to accomplish these goals.
The criminal complaint and arrest stemmed from an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a joint federal, state, and local cooperative, which targeted a drug trafficking organization.
This case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. Assistant United States Attorney Eric K. Mountin is prosecuting the case.
A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Fresno Man Sentenced to over 21 Years in Prison for Methamphetamine Trafficking, Possession of A Firearm, and Interstate Transportation for ProstitutionRead the Press Release
FRESNO, Calif. — On June 17, 2019, Carlos Montano, aka “Loco,” 29, of Fresno, was sentenced by U.S. District Judge Lawrence J. O'Neill to 21 years and 10 months in prison for conspiracy to distribute methamphetamine, being a felon in possession of a firearm, and interstate transportation for prostitution, United States Attorney McGregor W. Scott announced.
According to court documents, Montano was an influential member of the Fresno Bulldogs criminal street gang. Between April 2017 and July 2017, Montano distributed multiple pounds of crystal methamphetamine in the Fresno area, often using others in his distribution activities. During the investigation, Montano discussed the possession and use of weapons, and on two separate occasions, he fled from officers who were attempting to apprehend him. Montano engaged in commercial sex trafficking, exploiting women in multiple cities, including Los Angeles, San Francisco, Las Vegas and New York.
This case is the product of an investigation by Homeland Security Investigations, Federal Bureau of Investigation, Drug Enforcement Administration, Fresno Police Department, Multi Agency Gang Enforcement Consortium, Fresno County Sheriff’s Office, and Fresno County District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey A. Spivak, and Thomas Newman prosecuted the 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.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Former Sandridge Employee Sentenced to 21 Months in Federal Prison for Fraud and KickbacksRead the Press Release
OKLAHOMA CITY – JOEL MATTHEW EILERTS, 40, of San Diego, California, has been sentenced to 21 months in federal prison for defrauding his former employer, SandRidge Energy, Inc., announced Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma.
On October 25, 2017, Eilerts pleaded guilty to a two-count information that charged conspiracy to commit wire fraud and honest services wire fraud. According to the information, Eilerts worked in SandRidge’s land department from 2009 to 2014. He held the positions of Senior Landman and Land Supervisor before eventually being promoted to Land Manager, a position that made him the highest-ranking employee in SandRidge’s land department overseeing its Oklahoma operations. His position at SandRidge gave him access to confidential information regarding areas where SandRidge hoped to obtain oil and gas leases, including information regarding how much SandRidge was willing to pay in lease bonuses and royalties. He also had authority to hire third-party land brokers to acquire oil and gas leases on behalf of the company.
The information explains Eilerts hired Robert S. Kerr IV of R.S.K. Land and Energy Resources, LLC, and Brian Eischeid of Keystone Land & Minerals, LLC, as third-party brokers to obtain leases on behalf of SandRidge. Rather than paying Kerr and Eischeid a day rate for their services, Eilerts told them the maximum amount SandRidge would pay for a particular mineral interest, and tasked Kerr and Eischeid with securing the lease for less. If Kerr and Eischeid were able to secure a lease for less than SandRidge was willing to pay, they were able to keep the difference as profit. However, Eilerts required Kerr and Eischeid to pay him 1/3 of their profit as a kickback. In total, Eilerts was paid at least $345,000 in kickbacks as part of this scheme.
In addition, the information explains two instances in which Eilerts directed Kerr and Eischeid to obtain leases—one in Alfalfa County and one in Garfield County—in which the purported lessor turned out not to own the leased minerals. Nevertheless, SandRidge issued checks to Eischeid’s company, Keystone Land & Minerals, in the amount of $208,000 to fund the lease bonuses to the lessors. When Eilerts, Kerr, and Eischeid ultimately discovered that the purported lessors did not own title to the leased minerals, they did not return the $208,000 to SandRidge. Instead, at Eilerts’s direction, and without SandRidge’s authorization, they decided to keep the money and split it among themselves. Eilerts himself retained $148,000 in this scheme.
On June 20, 2019, U.S. District Judge Robin J. Cauthron sentenced Eilerts to 21 months in prison. He was also ordered to pay $493,707.59 in restitution to SandRidge. After release from prison, he will serve two years on supervised release. During the first year of supervised release, he is required to complete 104 hours of community service. Eilerts is required to report to the Federal Bureau of Prisons to begin his term of imprisonment by September 3, 2019.
In related cases, Kerr pleaded guilty on November 9, 2017, to a one-count information that charged conspiracy to commit wire fraud. Kerr will be sentenced on July 22, 2019. Eischeid pleaded guilty on April 8, 2019, to one count of misprision of a felony. Eischeid is scheduled to be sentenced on July 9, 2019.
These cases are the result of an investigation by the FBI Oklahoma City Division. They were prosecuted by Assistant U.S. Attorneys Jessica L. Perry and Kerry A. Kelly.
Reference is made to public filings for further information.
Former Pharmacy Professor Sentenced for Transportation of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Philip Gregory, 48, was sentenced today in federal court for transporting child pornography. The Honorable Robert F. Rossiter, Jr. sentenced Gregory to 8 years of imprisonment. There is no parole in the federal system. After his release from prison, Gregory will begin a 10-year term of supervised release and will be required to register as a sex offender. He was further ordered to pay $4,500 in restitution to victims portrayed in the images of child pornography. Gregory was formerly a professor of pharmacy at Creighton University in Omaha, Nebraska.
According to admissions made in connection with his guilty plea, Gregory was identified in 2016 via an investigation initiated by a NCMEC CyberTipline report regarding an individual who had uploaded child pornography into a Google+ Photos internet storage account. The reported IP address resolved to the defendant’s residence, and a search warrant was executed at Gregory’s home. A forensic exam of electronic devices seized pursuant to the warrant revealed that Gregory was in possession of 25,808 image files and 174 videos of child pornography. Additionally, the exam revealed that Gregory had participated in online chats discussing and requesting child pornography from others.
The FBI Child Exploitation Task Force in Omaha investigated this case, in conjunction with the Nebraska State Patrol and the Douglas County Sheriff’s Office. Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael Norris of the District of Nebraska prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Kiddar Capital CEO Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to six and a half years in prison for orchestrating multiple fraud schemes that resulted in total losses of approximately $20 million.
According to court documents, Todd Elliott Hitt, 54, solicited approximately $30 million from investors for a variety of real estate and venture capital investments in the Washington, D.C. area from 2014 through August 2018. The investments included Hitt’s solicitation of approximately $17 million from investors in order to purchase a five-story office building adjacent to a planned future stop on the Silver Line in Herndon. Hitt made false statements and material omissions to investors by failing to disclose that a significant portion of the monies raised were commingled with other unrelated investment projects, used for personal spending to support an extravagant lifestyle and new investor’s funds used to pay off old investors in a Ponzi-like scheme. Hitt’s fraudulent conduct resulted in investor losses of approximately $20 million.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Mark D. Lytle prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-43.
Former Grain Elevator Manager Sentenced to 96 Months in Prison for $5 Million Fraud Scheme, Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JEROME ROBERT HENNESSEY, 56, to 96 months in prison for mail fraud and income tax evasion. HENNESSEY, who pleaded guilty on February 14, 2019, was sentenced earlier today before Chief Judge John R. Tunheim in U.S. District Court in Fergus Falls, Minnesota.
“As a manager, Mr. Hennessey held a position of trust over the Co-op’s members and their financial interests. Unfortunately, he chose to violate that trust by committing an egregious fraud, stealing from his own colleagues, friends, and neighbors,” said U.S. Attorney Erica MacDonald. “This case has had a significant impact on the Ashby community and its industry. Today’s sentencing is a just outcome and a demonstration of the U.S. Attorney’s Office’s commitment to protecting Minnesotans from all types of crime – including financial crimes.”
According to the defendant’s guilty plea and documents filed in court, from 1988 until September 2018, HENNESSEY was an employee of the Ashby Farmers’ Cooperative Elevator Company (“the Co-op”). Beginning in 2003, HENNESSEY began using his position as the general manager to steal millions of dollars from the Co-op. HENNESSEY wrote hundreds of checks to himself and to third parties for, among other things, renovations and improvements to his residence and a cabin, the purchase of real estate, furniture, jewelry, all-terrain vehicles, outstanding credit card balances, property taxes, expensive hunting trips, taxidermy services, and the shipping costs for animals he had killed during the hunting trips.
According to the defendant’s guilty plea and documents filed in court, HENNESSEY attempted to disguise the payments by writing descriptions on the carbon copies of the checks falsely indicating that the checks were for the purchase of corn and soybeans or other legitimate expenses. HENNESSEY then provided the carbon copies to the Co-op’s bookkeeper, thus ensuring that the Co-op’s accounting records would give the false impression that the funds had been used for legitimate purposes. In order to make sure that the Co-op had sufficient funds to cover its legitimate expenses and to cover the millions of dollars that HENNESSEY stole, HENNESSEY obtained a line of credit for more than $7 million. In total, HENNESSEY stole approximately $5,338,922.21.
This case was the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division, the Grant County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney John Kokkinen prosecuted the case.
Defendant Information:
JEROME ROBERT HENNESSEY, 56
Dalton, Minnesota
Convicted:
- Mail fraud, 1 count
- Income tax evasion, 1 count
Sentenced:
- 96 months in prison
- Three years of supervised release
- $5,338,922.21 in restitution to Ashby Farmers’ Cooperative Elevator Company
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former GBI inspector sentenced for charging over $60,000 on government credit cardsRead the Press Release
ATLANTA - Sandra J. Stevens, f/k/a Sandra J. Putnam, has been sentenced for making more than 325 personal charges totaling over $60,000 on government credit cards when she was a high-ranking member of the Georgia Bureau of Investigation (“GBI”).
“No member of law enforcement is above the law,” said U.S. Attorney Byung J. “BJay” Pak. “Stevens traded the years of distinguished service and trust that she built as an agent for personal gain. Citizens must have confidence in the integrity of those entrusted with law enforcement power.”
“It is imperative sworn officers obey the law while they enforce the law. This sentence sends a clear message that public corruption will not be tolerated and the violators, no matter who they are, will be held accountable,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the indictment, and other information presented in court: the GBI is a statewide agency that provides assistance to the criminal justice system in the areas of criminal investigations, forensic laboratory services, and computerized criminal justice information.
In October 1994, Stevens joined the GBI as an Intelligence Technician. On June 3, 1999, after becoming a Special Agent, Stevens took an oath of office to support and defend the Constitutions of the United States and the State of Georgia; to maintain public trust and abide by the GBI’s Code of Ethics; and to obey the laws of the land and the regulations of the GBI.
As a Special Agent with the GBI, Stevens held several prestigious and high-ranking leadership positions, including being the Special Agent in Charge of the Child Exploitation and Computer Crimes Unit, where she supervised approximately 25 GBI employees; and an Inspector of the Investigative Division, where Stevens supervised approximately 55 GBI employees. As the Inspector of the Investigative Division, Stevens earned more than $100,000 per year.
As a state agency, the GBI participates in Georgia’s Visa Purchasing Card (“P-Card”) Program. P-Cards are credit cards provided to Georgia employees for official business purchases, such as supplies, materials, equipment, and services for official use. State policy expressly prohibits using P-Card for personal purchases. P-Card users are required to reconcile all purchases by electronically uploading receipts for each P-Card transaction.
In 1998, the GBI issued Stevens a P-Card for business-related purchases and expenses. As P-Card holder, Stevens signed an agreement stating that “under no circumstances will [she] use the Purchasing Card to make personal purchases, either for [her]self or for others.”
Nevertheless, from approximately May 9, 2013 to August 17, 2016, Stevens used her P-Card and the P-Cards of other GBI employees to make more than 325 unauthorized purchases of goods and services for her personal benefit or the personal benefit of others, including: a seven-piece dining set for $562.99, a corn hole game set for $229.99, two chaise lounge chairs for $399.99, and a 65-inch ultra HD smart television for $1597.99.
Stevens also submitted altered receipts to the GBI in which she changed the description of the items purchased, the addresses to which the items were shipped, or both the item description and the shipping address. For example, on May 27, 2016, Stevens used another GBI employee’s P-Card to order a $930.12 sofa from Amazon.com that was delivered to her home in Covington, Georgia. Subsequently, Stevens submitted a false receipt to the GBI in which she misrepresented the item description as 12 anti-spyware software discs, rather than a sofa, and misrepresented the shipping address as the GBI’s Headquarters in Decatur, Georgia, rather than her home address.
In total, the GBI paid over $60,000 for more than 325 unauthorized purchases made by Stevens on at least six GBI P-Cards. As a result of Stevens’s scheme to defraud, federal money from the U.S. Department of Justice and U.S. Department of Homeland Security grants was impacted.
Sandra J. Stevens, 46, of Covington, Georgia, was sentenced by U.S. District Judge Steve C. Jones to one year and one day in prison to be followed by two years of supervised release. Stevens was convicted on January 3, 2019, after she pleaded guilty to mail fraud.
This case was investigated by the Georgia Bureau of Investigation, with assistance from the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five Individuals Sentenced for Roles in Southern Vermont Drug ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that five individuals have been sentenced by Chief United States District Judge Geoffrey W. Crawford for their roles in a prolonged conspiracy to distribute heroin and cocaine base in Vermont. On June 19, 2019, Joaquin Diaz-Alicea, a.k.a. “J.J.,” of Springfield, Massachusetts, was sentenced to ten years in federal prison, to be followed by five years of federal supervised release. Previously, Andrew Cruz, a.k.a. “Tone,” of Springfield, Massachusetts, was sentenced to ten years in federal prison to be followed by four years of federal supervised release; Jonthony Maldonado, a.k.a. “Little Tone,” of Springfield, Massachusetts was sentenced to 30 months in federal prison, to be followed by a three-year term of supervised release; Steven Miller, of Vernon, Vermont, was sentenced to one year in federal prison, to be followed by a three-year term of supervised release; and Laura Frankiewicz, of Brattleboro, Vermont, received a time-served sentence, to be followed by a three-year term of supervised release. A sixth defendant, Anthony Serrano, was also charged in the indictment prior to his death, which resulted from a reported gang-related shooting in Springfield, Massachusetts.
As described at the defendants’ sentencing hearings and in court records, between late 2014 and February of 2016, the defendants conspired to distribute large quantities of heroin and cocaine base in and around Brattleboro, Vermont. On November 18, 2014, Cruz and Serrano were stopped in a motor vehicle equipped with a “hide” containing 180 grams of cocaine base, 103 grams of powder cocaine, 30 Oxycodone pills, and a loaded Beretta 9mm handgun. Thereafter, between mid-2015 and early 2016, the Vermont Drug Task Force utilized confidential informants to conduct nine separate controlled purchases of heroin and cocaine base from the members of the conspiracy.
Serrano and Cruz were the leaders of the drug trafficking organization. Cruz’s criminal history included convictions for assault and battery, assault and battery on a police officer, and a 2018 federal conviction in the District of Massachusetts for distribution of cocaine base and possession with intent to distribute cocaine base. In that federal case, the FBI’s Western Massachusetts Gang Task Force was engaged in an investigation into the distribution of heroin, cocaine, cocaine base, and firearms from suspected members of the Latin Kings gang in Holyoke and Springfield. On two occasions Cruz sold an informant a total of 31 grams of cocaine base. Cruz received a three year sentence in federal court in Massachusetts, which will run concurrent to his 10 year sentence.
Diaz-Alicea was immediately subordinate to Cruz in the drug trafficking organization. Witnesses stated that both Cruz and Diaz-Alicea possessed firearms while selling drugs in Vermont. Diaz-Alicea’s criminal history includes four separate firearms-related convictions, as well as convictions for assault and battery, assault with a dangerous weapon (shotgun), malicious damage to a motor vehicle, threats, and assault and battery on a correctional guard. These offenses included an incident in which Diaz-Alicea fired a shotgun at a motor vehicle, and a separate incident in which he approached a vehicle and fired a handgun through the driver’s-side window causing a bullet to strike the driver of the vehicle. Diaz-Alicea has two pending cases in Massachusetts alleging domestic assault and battery and aggravated assault and battery, and a separate case alleging assault and battery, assault and battery with a dangerous weapon, and discharging a firearm. In the latter of these cases, Diaz-Alicea is alleged to have shot an individual twice with a handgun over an alleged drug debt. Diaz-Alicea is presumed innocent of these pending Massachusetts charges.
Maldonado was the drug trafficking organization’s “apprentice.” In addition to selling heroin and cocaine base on behalf of the drug trafficking organization, Miller and Frankiewicz, provided Cruz, Diaz-Alicea, and Maldonado with housing in Vermont in exchange for heroin and cocaine base.
United States Attorney Christina E. Nolan commended the collaborative investigation led by the Vermont State Police Drug Task Force, with support from Drug Enforcement Administration and the Bellows Falls Police Department, stating: “The talent and diligence of the Vermont State Police drug unit, working closely with their federal and local law enforcement partners, led to the dismantling of a very significant drug pipeline from Springfield, Massachusetts to the Brattleboro area. Windham County suffered more overdose deaths than any other Vermont county last year. The U.S. Attorney’s Office will continue to deploy federal enforcement resources to southeast Vermont to remove dangerous, for-profit drug traffickers from its communities and to reduce the supply of deadly drugs flowing up Interstate 91. Drug trafficking organizations like this one will continue to be top targets for federal prosecution and we will pursue serious sentences.”
The case was prosecuted by U.S. Attorney Nolan and Assistant U.S. Attorney Nate Burris. Cruz was represented by Attorney John Mabie. Diaz-Alicea was represented by Attorney Paul Volk. Maldonado was represented by Attorney Peter Langrock. Miller was represented by Attorney Michael Shklar. Frankiewicz was represented by Attorney Thomas Sherrer.
Findlay Market Vendor Convicted of $3.4 Million in Food Stamp FraudRead the Press Release
DAYTON – A husband and wife and their Findlay Market vendor have all been convicted of food stamp fraud. A jury returned the verdict today of guilty on all 25 counts following a two-week trial before U.S. District Judge Thomas M. Rose.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture Office of Inspector General Investigations, Midwest Region, Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service and Michelle Thourot, Agent-in-Charge, Ohio Investigative Unit, announced the verdict.
A federal grand jury charged Busch’s Country Corner, Inc. and officials with charges related to Supplemental Nutrition Assistance Program (SNAP) fraud in an indictment returned here in June 2018.
According to court documents and trial testimony, from April 2010 until May 2018, Busch’s Country Corner co-owner Michael Busch, his wife, Amanda Jo Busch, and his brother, Randall S. Busch, illegally exchanged cash for SNAP benefits.
The defendants caused more than 195,000 individual SNAP Electronic Benefit Transfer (EBT) transactions to be completed by Busch’s Country Corner, totaling more than $5.4 million. According to witness testimony at trial, approximately 64 percent, or $3.4 million, of those SNAP transactions were fraudulent.
Co-conspirators used an electronic point of sale device in order to process EBT transactions for cash. For example, one transaction included a beginning EBT balance of $1,300 and an ending balance of $11.
Michal and Amanda Busch and Busch’s Country Corner were each convicted on all counts, including conspiracy to steal government funds, submitting false claims, SNAP fraud and wire fraud.
“There is no substitute for trial by jury,” said U.S. Attorney Glassman. “After listening to the evidence attentively for two weeks, this jury rendered verdicts to ensure that the defendants did not get away with getting ahead by stealing taxpayer money.”
Randall Busch previously pleaded guilty and was sentenced to five years of probation.
U.S. Attorney Glassman commended the investigation of this case by the USDA OIG, Secret Service and Ohio Investigative Unit, as well as Assistant United States Attorney Dwight Keller and Deputy Criminal Chief Laura Clemmens, who are prosecuting the case.
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Final Defendant Sentenced in Methamphetamine Trafficking ConspiracyRead the Press Release
Abingdon, VIRGINIA – Kevin Thomas Seigler was sentenced this week to 286 months in prison for his role in a conspiracy that trafficked large amounts of methamphetamine and opioids from Nevada into Southwest Virginia and Eastern Kentucky, United States Attorney Thomas T. Cullen announced.
Seigler, 36, of Las Vegas, was previously convicted of one count of conspiracy to distribute 500 grams or more of methamphetamine and conspiracy to use a communication facility to facilitate a drug trafficking offense and one count of failure to appear. In addition, $19,669 in U.S. currency was seized from Seigler and forfeited as proceeds of drug trafficking.
“I am grateful for the dedication and hard work of our federal, state, and local law-enforcement partners in dismantling this large drug-trafficking ring and sending 32 of its members to federal prison,” U.S. Attorney Cullen stated today. “We will continue to target the individuals and organizations responsible for distributing large quantities of these deadly drugs into our communities.”
In late 2016, law enforcement agencies, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, and assisted by agencies from across southwest Virginia and Las Vegas, Nevada, charged 32 individuals with conspiring to commit money laundering and to distribute methamphetamine, oxycodone, and buprenorphine. The investigation, Operation Leaving Las Vegas, accused 32 individuals of being members of a drug trafficking organization that shipped methamphetamine, oxycodone, and buprenorphine from Las Vegas into Southwest Virginia, Eastern Kentucky and elsewhere. Evidence presented at Seigler’s trial demonstrated that Seigler was a member of the organization and was responsible for supplying quantities of methamphetamine that were then shipped to Southwest Virginia. In March 2016, officers with the Las Vegas Metropolitan Police Department seized two pounds of methamphetamine that had been sold by Seigler to another member of the organization and also recovered $19,669 in U.S. currency from Seigler’s residence. Seigler also previously pleaded guilty to one count of failing to appear for a trial scheduled in May 2017.
To date, all of the 32 defendants charged have been convicted of federal drug conspiracy and money laundering charges and sentenced. Additionally, throughout the course of the investigation, more than $60,000 in currency has been seized and money judgments totaling $995,074.52 have been ordered. Those previously sentenced are:
- Richard Henry Kayian, 58, Las Vegas, Nevada - 324 months imprisonment and ordered to pay a forfeiture money judgment in the amount of $743,441.52, for one count of conspiracy to distribute 500 grams of methamphetamine and oxycodone, and one count of money laundering.
- Stephen Cino, 52, Henderson, Nevada – 292 months imprisonment and ordered to pay a forfeiture money judgment of $251,633.00 for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Tracey Allen Callihan, 49, Glade Spring, Virginia - 324 months imprisonment and ordered to pay a forfeiture money judgment of $30,000.00 for one count of conspiracy to distribute 500 grams or more of methamphetamine and oxycodone, and one count of money laundering.
- Brandon Lee Stone, 33, Abingdon, Virginia – 300 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Misael Reyes Tajimaroa, 32, Spokane, Washington – 192 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Bradley Lee Chapman, 28, Bristol, Virginia - 135 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Kaitlynn Elizabeth Chapman, 26, Bristol, Virginia – 72 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- John Williams, 50, Glade Spring, Virginia – 18 months imprisonment and a $2,500 fine for one count of conspiracy to use a communications facility to facilitate a drug trafficking offense.
- Rebecca Williams, 51, Abingdon, Virginia – 108 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Heather Michelle Sullins, 27, Abingdon, Virginia – 30 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine.
- Alex Michael Kayian, 23, Bristol, Virginia - 72 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Ralph Stewart Dingus, 27, Abingdon, Virginia - 37 months imprisonment for one count of conspiracy to distribute methamphetamine.
- John Dewayne Farmer, 32, Abingdon, Virginia - 240 months imprisonment for one count of conspiracy to distribute methamphetamine and one count of money laundering.
- Lola Virginia Farmer, 52, Abingdon, Virginia - 87 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Shauna Nicole Chafin, 36, Abingdon, Virginia - 97 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine.
- William Wesley Fleenor, 29, Abingdon, Virginia - 79 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Jeffrey Nathaniel Gobble, 25, Abingdon, Virginia - 46 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Preston Kyle Lawson, 21, Abingdon, Virginia - 46 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Gary Chapman, 47, Clay City, Kentucky - 151 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine.
- Daniel Corey Cantrell, 25, Abingdon, Virginia - 37 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Tanner Morris Curd, 23, Meadowview, Virginia - 84 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Amy Lorene Moser, 52, Abingdon, Virginia -100 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Steven Salyer, 27, Abingdon, Virginia - 87 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Brandon Cody Trivett, 23, Abingdon, Virginia - 30 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Brian Edward Widener, 30, Abingdon, Virginia – 46 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Justin Lowe, 24, Abingdon, Virginia – 41 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Lamar Skipper, 27, Chilhowie, Virginia - four years’ probation for one count of conspiracy to distribute oxycodone and one count of money laundering
- Gary Brandon Childress, 25, Abingdon, Virginia - three years’ probation for one count of conspiracy to distribute oxycodone.
- Austin Obranovic Boardwine, 24, Abingdon, Virginia - four years’ probation for one count of conspiracy to distribute oxycodone and buprenorphine.
- Caleb Dean, 28, Damascus, Virginia – 48 months imprisonment for one count of conspiracy to distribute methamphetamine and oxycodone.
- Charlene Hale, 25, Bristol, Tennessee – four years’ probation for one count of conspiracy to distribute methamphetamine and oxycodone.
The investigation of the case was conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service Criminal Investigations, United States Marshals Service, Virginia State Police, Washington County, Virginia Sheriff’s Office, Abingdon Police Department, Marion Police Department, Smyth County, Virginia Sheriff’s Office and Las Vegas Metropolitan Police Department. Assistant United States Attorneys Cagle Juhan and Zachary T. Lee are prosecuting the case for the United States.
Federal Jury Convicts Winter Springs Woman of Theft of Government Funds and Making A False Statement to the Social Security AdministrationRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Jaimi Hawkins (51, Winter Springs) guilty of theft of government funds and making a false statement to a federal agency. Hawkins faces a maximum penalty of 10 years in federal prison for the theft offense and up to 5 years’ imprisonment for the false statement offense. Her sentencing hearing is scheduled for September 2, 2019.
Hawkins was indicted on February 13, 2019.
According to evidence presented at trial, Hawkins made omissions and misrepresentations regarding her son’s living arrangements on an application for Supplemental Security Income. She also made misrepresentations and omissions regarding her son’s living arrangements during a subsequent benefit review interview. Hawkins knew that her son’s true living arrangements would have made him ineligible for benefits. As a result of the omissions and misrepresentations, Hawkins obtained $30,705 in Supplemental Security Income benefits to which she was not entitled.
Hawkins also made false statements to the Social Security Administration regarding how she spent the Supplemental Security Income benefits received on behalf of her son.
This case was investigated by the Social Security Administration, Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler and Assistant United States Attorney Emily Chang.
Federal Jury Convicts San Antonio Businessman on Health Care Fraud ChargesRead the Press Release
In San Antonio this afternoon, a federal jury returned a guilty verdict against Rafael Enrique Rodriguez for engaging in health care fraud, announced Special Agent in Charge Christopher Cave of the United States Postal Service Office and United States Attorney John F. Bash.
Rodriguez, age 40, of San Antonio, was convicted on six counts of health care fraud, five counts of wire fraud, and one count of aggravated identity theft. Rodriguez was the owner/operator of 210 Workers with offices providing physical therapy and rehabilitation services in both San Antonio and Salt Lake City, Utah.
Evidence at trial demonstrated that between October 22, 2012 and December 14, 2016, Rodriguez devised a scheme to defraud the Federal Employees Compensation Act program, a federal health care benefit program that provides worker’s compensation services to federal employees. Specifically, Rodriguez billed the program for physical therapy and treatment using codes indicating that a qualified professional provided those services when, in fact, unlicensed technicians were providing them. Additionally, Rodriguez used the identity of another individual, a licensed physical therapist, to obtain provider registration with the program without the permission of the therapist. Rodriguez fraudulently billed the program $8,413,103.14 for these services for which he was paid over $6,300,000.
“The guilty verdict issued today is a testament to the thorough investigation conducted by our agents which uncovered an elaborate scheme to exploit Federal benefits programs for personal gain,” said Special Agent in Charge Christopher Cave of the U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to deter and stop medical providers and beneficiaries from engaging in these fraud schemes.”
Rodriguez faces up to 10 years in federal prison for the health care fraud convictions, up to 20 years in federal prison on the wire fraud convictions, and up to two years in federal prison for the aggravated identity theft conviction. He remains on bond pending sentencing, which is scheduled for September 23, 2019 before United States District Judge David A. Ezra.
Special Agents with the Postal Inspector OIG, Veterans Administration OIG, and Department of Labor OIG investigated this case. Assistant United States Attorney Gregory J. Surovic prosecuted this case on behalf of the Government.
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Federal Jury Convicts Memphis Man of Bank Robbery, CarjackingRead the Press Release
Memphis, TN – After a four-day trial, a federal jury has convicted a local man of bank robbery and carjacking. D. Michael Dunavant, United States Attorney announced the guilty verdict today.
According to the information presented in court, on July 26, 2018, defendant Lorenzo Davis, 29, and two other males robbed a Memphis man at gunpoint. Davis then walked the victim two miles to an ATM machine and forced him to withdraw his last $40 at gunpoint. The next day, Lorenzo Davis committed a carjacking by shooting a Memphis man in the neck and taking his Toyota Solara.
On June 20, 2019, a federal jury convicted Davis of bank robbery, brandishing a firearm during a bank robbery, carjacking, and being a felon in possession of a firearm during both incidents.
Sentencing is set for October 2, 2019, before U.S. District Court Judge Mark Norris.
U.S. Attorney D. Michael Dunavant said: "This is precisely the type of violent gun offender that threatens lives and public safety in Memphis. These federal bank robbery, carjacking, and firearms charges are evidence of the aggressive approach taken by this office to remove the worst of the worst offenders from our streets. This jury verdict finding this dangerous criminal guilty of brazen and recidivist violent behavior demonstrates that the community is Fed Up with repeat offenders who have dedicated their lives to lawlessness and violence."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Memphis Police Department Violent Crimes Unit.
Assistant U.S. Attorneys Elizabeth Rogers and Neal Oldham are prosecuting this case on behalf of the government.
Father and Son Sentenced for Juneau Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a father and son have been sentenced for their roles in distributing large quantities of methamphetamine in Juneau.
Charles Edward Cotten, Jr., 53, of Juneau, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve 10 years in prison, followed by 25 years of supervised release, after having pleaded guilty to four counts of drug distribution. Cotten’s son and co-conspirator, Ricky Stapler Lisk, 37, of Juneau, was previously sentenced to serve five years in prison, followed by five of supervised release, after having pleaded guilty to one count of drug distribution.
According to court documents, in May and June 2017, Cotten distributed methamphetamine to individuals on four separate occasions in Juneau, for a total of 112 grams of methamphetamine. During one of these transactions, Cotten was accompanied by Lisk and his late common law wife and had them handle money, drugs, or both during the transaction. The investigation revealed that one of the transactions was conducted on Cotten’s recreational boat, M/V Northwind, and that Lisk received part of the drug proceeds.
At the time of Cotten’s arrest, he was in possession of a loaded .45 caliber firearm located inside his vehicle, and an additional 391.9 grams of methamphetamine. The total amount of drugs seized during the course of the criminal conduct was over 500 grams of methamphetamine, which was either distributed or possessed with the intent to distribute in Juneau. Law enforcement also seized Cotten’s motorcycle and the M/V Northwind, which were used in furtherance of his drug trafficking activities. According to court documents, the amount of drugs seized is enough dosage units to supply nearly 5,000 individuals (1/6 of the population of Juneau) with methamphetamine.
The Federal Bureau of Investigation (FBI) and the Juneau Police Department (JPD) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
Fatal stabbing sends Lame Deer man to prison for six yearsRead the Press Release
BILLINGS—Lame Deer resident Darrell Lee Whiteman, Jr., who admitted to fatally stabbing a person during an argument on the Northern Cheyenne Indian Reservation, was sentenced today to 73 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Whiteman, 29, pleaded guilty in February to voluntary manslaughter.
U.S. District Judge Susan Watters presided.
Prosecutors said evidence would show that on March 4, 2017, Whiteman was at a Lame Deer residence, drinking with others. Whiteman got into an argument with his girlfriend, and the victim told Whiteman to stop. Whiteman and the victim then got into a fight that was broken up by another person.
The victim went to the kitchen for a drink of water, and Whiteman grabbed a knife from the kitchen. The fight between the two continued. Whiteman reached around another individual who was in between the two and stabbed the victim once in the chest. Whiteman left the residence and the victim later died.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.
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Employee at Mortgage Company Admits Illegally Accessing Computer to Steal $2 MillionRead the Press Release
CAMDEN, N.J. – A Camden woman today admitted accessing a protected computer without authorization to steal money from her employer and then laundering the proceeds of her theft, U.S Attorney Craig Carpenito announced.
Dilcia Mercedes 38, pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of unauthorized access of a computer with intent to defraud and one count of money laundering.
According to documents filed in this case and statements made in court:
From April 2014 to May 2017, Mercedes worked for a mortgage lender as a payment processor, and had access to the company’s computer system. She discovered that some escrow checks were returned to the company as undeliverable. Mercedes admitted that she would monitor those funds by checking monthly reports to see if the funds were ever claimed. If the money was not claimed, Mercedes recruited various family members and friends to allow her to use their bank accounts. With that information, Mercedes used her family members’ and friends’ identities to open reloadable debit/credit accounts. She accessed the company’s computer system and made it appear as if the customer requested that the money be sent via wire transfer into the fraudulent accounts. After creating the request, Mercedes then accessed the company’s computer then approved the transfer, using a co-worker’s login and password.
Mercedes caused approximately 580 fraudulent wire transfers, totaling more than $2 million, from her company’s bank account to bank accounts and reloadable debit/credit accounts controlled by Mercedes’ relatives, friends or associates. She then used the money to pay personal expenses.
The count of accessing a protected computer without authorization to defraud carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of money laundering carries a maximum penalty of 20 years in prison and a fine of $500,000. Sentencing is scheduled for Sept. 23, 2019.
U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Wyatt Achord, and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Carroll, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Elmira Heroin Dealer Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Andrew Tingling, 39, of Elmira, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, and possession of a firearm as a convicted felon. The charges carry a minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
Assistant U.S. Robert A. Marangola, who is handling the case, stated that the charges stem from an investigation into the sale of heroin in the City of Elmira. On March 1, 2019, a search warrant was executed at a residence in Elmira. During the search, law enforcement officers seized $70,593 in U.S. currency, paraphernalia for the processing, packaging, and distribution of narcotics, approximately 318 grams of heroin, and a loaded .22 caliber handgun. Tingling was located and arrested inside the residence with a female.
The conviction was the culmination of an investigation on the part of the Elmira Police Department, under the direction of Chief Joseph Kane; the New York State Police Community Narcotics Enforcement Team, under the direction of Major Mary Clark; the Chemung County Sheriff’s Office, under the direction of Acting Sheriff William A. Schrom; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Office.
Sentencing is scheduled for October 7, 2019, at 10:15 a.m. Judge Siragusa.
# # # #Eastern Shore Drug Dealer Sentenced to 12 Years in Federal Prison for Distribution of Fentanyl AnaloguesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Narada Walls, age 38, of Salisbury, Maryland, today to 12 years in federal prison, followed by three years of supervised release, for conspiracy to possess and to distribute fentanyl and fentanyl analogues. Fentanyl analogues are chemical compounds designed to have effects similar to fentanyl and can be just as deadly. Judge Russell also ordered that Walls must forfeit anything of value seized during the investigation, including $29,650 in cash.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
U.S. Attorney Robert K. Hur stated, “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. We’re also targeting drug dealers who buy fentanyl on the dark web and re-sell this poison to our citizens. Working together with our local, state, and federal partners, we are determined to reduce the number of opioid overdose deaths in Maryland.”
“Individuals like Narada Walls are producing and profiting from deadly addictions, and the snares of these addictions entrap more people every day,” said HSI Baltimore Acting Special Agent in Charge Cardell T. Morant. “This significant sentence takes one more access point off the street and means fewer network may be permitted to rampantly poison our community.”
According to his plea agreement, in fall 2017, law enforcement began an investigation into a drug trafficking organization operating on the Eastern Shore of Maryland and in Baltimore, which was responsible for importing and distributing fentanyl and fentanyl analogue substances. This investigation revealed that Narada Walls was part of the conspiracy and used assumed names and a fake e-mail address to purchase methoxyacetyl fentanyl directly from suppliers in China. Walls had this product shipped to addresses of his acquaintances along the Eastern Shore of Maryland to distance himself from the packages. Walls imported more than 1.5 kilograms of methoxyacetyl fentanyl in this manner.
In September and November, 2017, a confidential source purchased fentanyl analogue substances from Walls, at the direction of law enforcement. On each occasion, Walls brought the drugs to Baltimore, where he met with the source. During their interactions Walls discussed with the source the potency of this product and how it needed to be diluted with cutting agents or offered only to experienced drug users, or else overdoses could occur.
In December 2017, law enforcement executed a search warrant at Walls’ residence in Salisbury. Inside a safe found at the home was approximately 419 grams of methoxyacetyl fentanyl and approximately $18,650 in drug proceeds. Law enforcement recovered other drug-related paraphernalia from Walls’ bedroom, including a blender, a digital scale, and packaging materials.
Walls agreed that, in June 2017, he was in a relationship with a recovering heroin user. According to a witness, on June 14, 2017, Walls asked this woman to clean up the kitchen, which was the area where Walls mixed his drug product. In the process of cleaning up the blender in the kitchen, the victim ingested some of this fentanyl analogue product. The victim was subsequently found unresponsive on the kitchen floor, next to her minor child. Paramedics were called, and she was later pronounced dead. An autopsy determined that the woman’s death was caused by her exposure to this fentanyl analogue product.
United States Attorney Robert K. Hur commended HSI and Maryland State Police Gang Enforcement Unit East for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jason D. Medinger and Burden Walker, who prosecuted the case.
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Drug Conspiracy Convictions of Former Fresno Deputy Police Chief Affirmed on AppealRead the Press Release
FRESNO, Calif. — The Ninth Circuit Court of Appeals affirmed the convictions of former Fresno deputy police chief Keith Foster, 55, for criminal conspiracies involving heroin and marijuana, U.S. Attorney McGregor W. Scott announced today.
On May 23, 2017, a federal jury in Fresno found Foster guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana. On November 13, 2017, U.S. District Judge Anthony W. Ishii sentenced Foster to four years in prison. Foster then filed an appeal, challenging his two criminal convictions. The Ninth Circuit Court of Appeals rejected Foster’s claims and upheld his convictions.
The court found that Foster’s “phone calls and text messages with co-conspirators … sufficiently demonstrated Foster’s role in the conspiracy to distribute heroin.” Foster discussed heroin types, prices and other details with a supplier. The court also found that Foster’s calls with his nephew “sufficiently established his role in the conspiracy to distribute marijuana.” When Foster’s nephew was arrested with 6 pounds of marijuana in the trunk of his car, Foster said that he could have provided “cover” for him if he had been asked, and he also said that he would see what his “narc guys” could do for the nephew.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant U.S. Attorneys Melanie L. Alsworth and Henry Z. Carbajal III prosecuted the case.
Dominican National Sentenced for Aggravated Identity Theft and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national was sentenced in federal court in Boston yesterday for identity theft, aggravated identity theft, theft of public money, and illegally reentering the United States after being deported.
Isidro Viscaino-Soto, a/k/a Ysidro Vizcaino, 59, a Dominican national residing in Boston, was sentenced by U.S. District Court Judge Patti B. Saris to two years and one day in prison and two years of supervised release. Viscaino-Soto will be subject to deportation proceedings upon completion of his sentence. In March 2019, Viscaino-Soto pleaded guilty to one count of identity theft, one count of aggravated identity theft, one count of theft of public money, and one count of illegal reentry of a deported alien. Viscaino-Soto was arrested and charged by complaint on April 17, 2018, and has been in custody since.
Law enforcement officers in Boston discovered Viscaino-Soto on April 12, 2018, and determined him to be illegally present in the United States. Viscaino-Soto was previously deported on July 31, 2000, after receiving a drug conviction. In addition, Viscaino-Soto used the Social Security number of a U.S. citizen from Puerto Rico in order to receive disability insurance, and in so doing, stole approximately $9,000 in federally-funded MassHealth benefits.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Charged with Identity TheftRead the Press Release
BOSTON – A Dominican national was arrested today in connection with using the identity of a U.S. citizen.
Wandil Mejia Jimenez, 30, a Dominican national residing in Dorchester, was indicted on one count of false representation of a Social Security number and one count of aggravated identity theft. Jimenez will appear in federal court in Boston later today.
According to the indictment unsealed today, in 2014, Mejia Jimenez fraudulently used a Social Security number that was not his when applying for a driver’s license with the Massachusetts Registry of Motor Vehicles.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, one year of supervised release and a fine of $250,000. Jimenez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Valuable assistance was provided by the United States Marshals Service for the District of Massachusetts. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Sentenced to 10 Years in Prison for Multi-Million Dollar Fraud and Money Laundering SchemesRead the Press Release
WASHINGTON - Michael A. Orji, 40, formerly of Washington, D.C., was sentenced today to 10 years in prison on federal charges stemming from his role in at least seven bank fraud schemes, involving at least 10 victims and more than $5.7 million in intended losses.
The announcement was made by U.S. Attorney Jessie K. Liu, John P. Selleck, Acting Assistant Director in Charge of the FBI’s Washington Field Office, and Jay N. Lerner, Inspector General for the Federal Deposit Insurance Corporation (FDIC).
Orji, a Nigerian national, pled guilty on Oct. 26, 2018, in the U.S. District Court for the District of Columbia, to one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering. He was sentenced by the Honorable Chief Judge Beryl A. Howell. Orji also was ordered to pay a restitution judgment in the amount of $905,274.98 divided among five victims with uncompensated losses. As part of his plea agreement, Orji additionally agreed to forfeit $75,254 in previously seized funds and pay a forfeiture money judgment in the amount of $1,705,320.03. Following his prison term, he is required to surrender himself to ICE and cooperate with the deportation proceedings to Nigeria.
According to a statement of offense and related conduct acknowledged by Orji, he participated in an ongoing conspiracy from August 2015 through November 2017 to commit a variety of financial frauds, primarily involving stolen checks and business e-mail compromise (BEC) schemes. He then laundered the resulting proceeds through a network of fraudulent bank accounts, shell corporations, and co-conspirators in the District of Columbia and elsewhere. In a typical BEC scheme, a co-conspirator working online tricks a company or individual using “spoofed,” or fake, e-mails into transferring large sums of money into bank accounts controlled by those participating in the crime. Soon after the wire transfers are completed, the co-conspirators drain the bank accounts and launder the criminal proceeds.
In total, Orji participated in at least seven bank fraud schemes involving 10 victims and 15 fraudulent accounts opened and/or controlled by the defendant under false names. The schemes generated a total of $905, 274.98 in actual losses and $5,717,596.23 in intended losses.
He used false aliases and forged driver’s licenses in carrying out the crimes.
The victims of the defendant’s frauds included a public school system, a medical center, several small and medium-sized companies, an individual who happened to call the bank in order to take precautions before an international trip, an individual attempting to purchase a new home, and an individual saving for retirement. Meanwhile, according to the government’s evidence, Orji frequented casinos, which he also used to launder money, and lived in a luxury apartment under a borrowed name.
Orji was arrested on Nov. 20, 2017, and has been in custody ever since. On that day, federal agents executed a search warrant on Orji’s residence in the District of Columbia. During the search, , they found 14 fraudulent driver’s licenses corresponding to the defendant’s false aliases, 1 fraudulent Social Security card in the name of false alias, a printed-out copy of the Wikipedia article on “Bank Fraud,” a copy of a journal article on online banking fraud with handwritten markings, a book on creating false identities, and multiple burner phones.
The case was investigated by the FBI’s Washington Field Office and the Federal Deposit Insurance Corporation-Office of Inspector General. Assistance was provided by the U.S. Postal Inspection Service, U.S. Secret Service, the District of Columbia Office of the Inspector General, and the Metropolitan Police Department.
The case was prosecuted by Assistant U.S. Attorney Christopher B. Brown, with assistance from Paralegal Specialist C. Rosalind Pressley. Assistant U.S. Attorney Andrea Duvall, Computer Crime & Intellectual Property Section Trial Attorney W. Joss Nichols, former Assistant U.S. Attorney John Marston, and former Special Assistant U.S. Attorney Kyle Bateman also assisted in investigating and prosecuting the case.
District Man Pleads Guilty to First Degree Murder for Fatally Stabbing RunnerRead the Press Release
WASHINGTON – Anthony Crawford, 23, of Washington, D.C., pled guilty today to first degree murder for fatally stabbing a D.C. woman as she ran in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Crawford pled guilty on June 21, 2019, in the Superior Court of the District of Columbia, to one count of first degree murder while armed. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence of 30 years and a fine of up to $250,000. As part of the plea deal, Crawford will also have to contribute between $100 and $5,000 to the Victims of Violent Crime Compensation Fund. The Honorable Judge Craig Iscoe scheduled sentencing for September 13, 2019.
According to the government’s evidence, on the evening of September 18, 2018, Crawford stole a kitchen knife from a local grocery store. Twenty minutes later, Crawford encountered the victim who was out for an evening run. Crawford attacked the victim at the intersection of 11th Street and P Street, stabbing her seven times; twice in the head, once in her face, three times in the neck, and once in the back, with the stolen knife. The victim was able to get away and ran into a nearby Chinese restaurant to escape Crawford’s attack. Crawford fled the area and threw the knife on the ground. Crawford also discarded several clothing items covered in his and the victim’s blood.
Several good Samaritans attempted to save the victim as she lay on the floor of the restaurant bleeding. The victim was transported to a local hospital to receive further medical treatment for the stab wounds. Over the course of the evening, her condition deteriorated and she died from the injuries.
Crawford has been in custody since his arrest on September 19, 2018.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department, as well as paralegals Alesha Matthews and Kelly Blakeney, and Investigative Analyst Zachary McMenamin. She also expressed appreciation for the efforts of Assistant U.S. Attorney Katherine Earnest who prosecuted the matter.
Deputy Attorney General Recognizes South Dakota Federal Prosecutor for Superior Performance in Indian CountryRead the Press Release
WASHINGTON, D.C. – Troy R. Morley of the U.S. Attorney’s Office in the District of South Dakota was one of only 172 members of the Department of Justice nationwide recognized by Deputy Attorney General Jeffrey Rosen, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 35th Director’s Awards Ceremony in Washington D.C. on June 20, 2019.
The District of South Dakota was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building. U.S. Attorney Ron Parsons attended the ceremony with Morley.
In his prepared remarks, Deputy Attorney General Jeffrey Rosen addressed the recipients and guests, saying, “Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded."
Morley was awarded the Director’s Award for Superior Performance in Indian Country. As an enrolled member of the Turtle Mountain Band of Chippewa and Tribal Liaison for the District of South Dakota, Morley's outreach to tribal communities has been pivotal in strengthening the District’s ties with tribal law enforcement officers, tribal courts, tribal social service agencies, and tribal decision makers. His body of work, including both zealous prosecutions and his Tribal Liaison outreach, exemplifies the very best of the Department of Justice's efforts in Indian Country. His status as an enrolled member of a federally recognized Indian tribe enhances his ability to build bridges and promote cooperation among all levels of Federal, State, and Tribal law enforcement.
Morley joined the U.S. Attorney’s office in Pierre, South Dakota, in May of 2012, and for over five years, he prosecuted violent crimes occurring on the Standing Rock Reservation in South Dakota. In June 2017, he transitioned to similar work on the Crow Creek and Lower Brule reservations. He has been an exemplary prosecutor, winning convictions and long prison sentences for murderers, child molesters, online predators, and domestic abusers.
Morley became the District's Tribal Liaison in March 2015, and in that role has had a deep and holistic impact on tribal communities throughout South Dakota. He has helped form working groups with state governments (both North Dakota and South Dakota) to implement reentry plans for individuals returning to the community after incarceration. He has worked closely with tribal officials on pilot programs to exercise special domestic violence jurisdiction. Morley also serves as a mentor in a special program he developed for the Pierre Indian Learning Center, regularly coaching students about how to succeed in life and avoid bullying behavior. Morley has been a key voice in discussions surrounding the selection of Special Assistant United States Attorneys assigned to four of the state’s nine reservations: Standing Rock, Sisseton- Wahpeton, Flandreau, and Rosebud. His partnerships have also helped identify cases leading to successful federal prosecutions. For instance, Morley’s work with a Tribal SAUSA has identified repeat domestic abusers, leading to an appreciable uptick in the prosecution of habitual domestic violence offenders harming women and children in our district.
“Troy Morley serves as a strong, dedicated, and essential Native American role model for federal prosecutors in Indian Country, the communities we serve, and the victims we seek to protect,” said U.S. Attorney Parsons. “I am very pleased, though certainly not surprised, that his stellar performance has been recognized with this coveted award.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Deputy Attorney General Recognizes Assistant U.S. Attorney Erin Blondel for Superior PerformanceRead the Press Release
RALEIGH – United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., is proud to announce that Assistant United States Attorney (AUSA) Erin Blondel was one of 172 members of the Department of Justice recognized by Deputy Attorney General Jeffrey Rosen, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 35th Director’s Awards Ceremony yesterday in Washington, D.C. AUSA Blondel, along with AUSA Eleanor Morales (Ms. Morales is formerly of the Eastern District and now with the Middle District of North Carolina), was presented a Director’s Award for Superior Performance as a Criminal AUSA.
The Eastern District of North Carolina was one of 31 districts represented at the ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Deputy Attorney General Jeffrey Rosen addressed the recipients and guests, saying, “Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
In his prepared remarks, EOUSA Director James Crowell said, “The Department of Justice is in truth a deployed force. Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy. As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”
Assistant United States Attorneys Erin Blondel and Eleanor Morales were recognized for the successful prosecution of William Maurice Saddler in the first sex trafficking trial in this district. Saddler and four co-defendants repeatedly prostituted and exploited a fifteen-year-old child. Ms. Blondel and Ms. Morales were faced with many complex and novel legal issues, particularly concerning the young age of the victim. The trial featured dozens of exhibits and testimony by eighteen witnesses, including from the victim, all four co-defendants, three “johns,” and a world-renowned expert in child exploitation. After brief deliberation, the jury convicted Saddler of sex trafficking and he was later sentenced to 40 years in prison. (See press release). The District Court ordered hundreds of thousands of dollars in restitution to the victim under the human trafficking restitution statute. (See press release).
United States Attorney Higdon commented, “Congratulations to AUSAs Erin Blondel and Eleanor Morales on this well-earned and deserved recognition. This award recognizes AUSAs who have distinguished themselves through the outstanding performance of their duties in criminal matters – and they have done just that. Due to their exemplary work, Saddler received a 40-year sentence, ensuring that he cannot hurt other children – and his nearly half-million dollar restitution order is a small step on the victim’s path to recovery. AUSAs Blondel and Morales have significantly contributed to the successful accomplishment of the mission of this USAO and the Department of Justice as a whole – making the Eastern District of North Carolina a safer place for its citizens.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Denver Man Sentenced to Federal Prison for Ponzi Scheme That Defrauded 175 Investors out of Nearly $20 MillionRead the Press Release
DENVER – Daniel B. Rudden, age 72 of Denver, Colorado, was sentenced yesterday by U.S. District Court Judge Christine M. Arguello to serve 121 months (just over 10 years) in federal prison, followed by 3 years on supervised release for mail fraud after he defrauded 175 investors out of more than $19 Million, announced U.S. Attorney Jason Dunn and FBI Denver Field Office Special Agent in Charge Dean Phillips. Rudden was also ordered to pay restitution of $19,609,905.21 to victims of his Ponzi scheme. Rudden appeared at the hearing free on bond and was remanded at the hearing’s conclusion.
According to court documents, Rudden was the President and sole owner of Financial Visions, Inc. (FV). FV’s business model was based on taking assignments on life insurance policies in order to pay for funeral expenses. When a family experienced the death of a family member and could not afford the funeral expenses, FV would pay the funeral home and/or cemetery for those expenses and take an assignment on the deceased’s life insurance proceeds. When the insurance company paid the proceeds, it would pay FV directly for the funeral expenses that FV had fronted. FV charged the family of the deceased a 4 to 5 percent fee for this service.
Individuals who decided to invest in FV received a promissory note signed by the defendant. Through the promissory note, the defendant promised to pay back to the investor the principal amount invested plus interest. Most investors were promised 12% simple interest per year on their principal amount invested, to be paid on a quarterly basis.
Over the years, the defendant continued to take in money from new investors, but the number of funeral homes using FV’s services did not continue to grow at a commensurate rate. As a result, FV owed investors more and more in interest payments while FV was not making a profit sufficient to sustain such payments. The defendant ultimately began using later investors’ funds to make the interest payments to earlier investors. The Ponzi scheme ended up defrauding 175 investors out of more than $19 million. More than 65 victims lost over $100,000 each, and two people lost over $1 million.
The scheme came to a head when the defendant stopped being able to pay out “interest” and could not give investors a refund of their principal balance when demanded. Some investors reported the defendant to state and federal authorities. On July 9, 2018, the defendant himself emailed his investors and admitted that FV had become a Ponzi scheme. As stated in the plea agreement, the government maintains that, based on profit and loss statements, FV was not a profitable business model from its inception.
“This is a scheme that was particularly egregious because the defendant took advantage of people at one of their most emotional times – following the loss of a loved one,” said U.S. Attorney Jason Dunn. “The sentence here appropriately reflects that harm.”
“The FBI is committed to aggressively pursuing those who deceive innocent investors by creating complex white-collar fraud schemes. Duplicitous schemes devised to obtain funds from our community’s citizens for personal gain is a felony,” said FBI Denver Special Agent in Charge Dean Phillips. “The recent sentencing of Daniel Rudden should deter others who engage in this type of crime."
The matter was investigated by the FBI with assistance by the U.S. Postal Inspection Service. The defendant was prosecuted by Assistant U.S. Attorney Martha A. Paluch, Chief of the Economic Crime Section, Assistant U.S. Attorney Rebecca S. Weber, and Special Assistant U.S. Attorney Jason Slothouber of the Colorado State Attorney General’s Office. Financial analysts from the Federal Bureau of Investigations, the United States Attorney’s Office, and the Colorado State Attorney General’s Office provided invaluable assistance to this prosecution.
Delaware Federal Trial Team Honored for Landmark Cyberstalking Resulting in Death ProsecutionRead the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced that the U.S. Department of Justice honored the trial team which prosecuted the country’s first cyberstalking resulting in death case by awarding them the prestigious Director’s Award for Superior Performance by a Litigative Team on June 20, 2019. Five employees of the U.S. Attorney’s Office (USAO) for the District of Delaware, together with their investigative counterparts from the Federal Bureau of Investigation and Delaware State Police were among ten trial teams nationwide so recognized at the 35th Executive Office for U.S. Attorneys (EOUSA) Director’s Awards Ceremony in Washington, D.C.
The award was the result of the team’s work in United States v. Matusiewicz, et al. tried in U.S. District Court for the District of Delaware. The prosecution team honorees, from top to bottom in the photo, are:
- Shawn A. Weede, Criminal Chief, USAO
- Millard Greer, Lieutenant, Delaware State Police
- Joseph P. Gordon, Supervisory Senior Resident Agent, FBI
- Edward J. McAndrew, former Assistant U.S. Attorney, USAO
- Jamie M. McCall, Assistant U.S. Attorney, USAO
- Christine C. Oliver, Special Agent, FBI
- Susan P. Alfree, Victim/Witness Coordinator, USAO
- Sherry Kaminski, Legal Assistant, USAO
- Barbara Lotharp, Litigation Support Specialist, USAO
On the morning of February 11, 2013, the lobby of the New Castle County Courthouse in Wilmington, Delaware became a shooting gallery as Thomas Matusiewicz – the husband of Defendant Lenore and the father of Defendants David and Amy – shot and killed his former daughter-in-law, Christine Belford, and her friend, Laura “Beth” Mulford. Thomas also shot two Capitol Police officers, who were providing security at the courthouse, before taking his own life. This brutal criminal act touched off a lengthy investigation, which uncovered evidence of Defendants’ three-year stalking campaign designed to psychologically torture and intimidate Ms. Belford – the mother of David Matusiewicz’s three biological children. Among other things, Defendants publicly and falsely accused Ms. Belford of sexually molesting her own children and utilized third parties to keep her under constant surveillance. These actions led Ms. Belford and her family to live in a constant state of fear, and ultimately resulted in Ms. Belford’s death.
Following a five-week trial in the summer of 2015, where the government called approximately 70 witnesses and admitted over 700 trial exhibits, Defendants were convicted on all charges, including cyberstalking resulting in death. Each Defendant was sentenced to life imprisonment, and on appeal the Court of Appeals for the Third Circuit upheld their convictions in a sweeping precedential opinion.
U.S. Attorney David C. Weiss commented, “Cyberstalking is a form of psychological terror that deeply impacts its victims, and the Matusiewicz cyberstalking prosecution was a watershed case of national importance. I am proud to offer congratulations to the entire trial team for winning the Director’s Award for Superior Performance by a Litigative Team. This award is among the most prestigious and competitive awards given by the U.S. Department of Justice, and is the only award that includes those who have left federal government service. The long-term commitment and personal partnerships required to successfully prosecute the Matusiewicz family represent the best of Delaware law enforcement. We truly value these relationships.
While the Matusiewicz case was the first of its kind, our commitment to the victims of online terror campaigns continues. Individuals who engage in cyberstalking are on notice that the U.S. Department of Justice will continue such prosecutions to the fullest extent of the law.”
Debra Bluto Sentenced for Social Security FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Debra Bluto, 64, of St. Albans Bay, was sentenced today in United States District Court in Burlington following her guilty plea to a charge that she defrauded the Social Security Administration. Chief U.S. District Judge Geoffrey Crawford sentenced Bluto to two years of probation and ordered her to pay restitution totaling $48,000.
On October 24, a federal grand jury in Rutland returned a four-count indictment charging Bluto with stealing government funds and making false statements to the Social Security Administration. According to the indictment, Bluto’s grandson began receiving Supplemental Security Income benefits from the government in 2001. SSI is a special needs-based benefit program designed to provide financial assistance to aged, blind and disabled persons who have little or no income. The benefits for Bluto’s grandson were paid directly to Debra Bluto as her grandson’s representative payee.
For most of the period between May 2008 and January 2017, Bluto’s grandson was incarcerated following his convictions for serious crimes. By law, Bluto’s grandson was not entitled to receive SSI benefits during any period of incarceration. Nonetheless, Bluto continued to receive her grandson’s SSI benefits for the entire time he was in jail. According to the indictment, in annual reports she had to file with the Social Security Administration, Debra Bluto concealed the fact that her grandson was in prison and falsely claimed that she used all the SSI funds to pay for his care. In fact, the indictment charges, Debra Bluto converted those illegitimate payments – which totaled slightly more than $50,000 -- to her own benefit.
This case was investigated by the Office of the Inspector General of the Social Security Administration.
Bluto is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Culbertson man sentenced for strangulationRead the Press Release
GREAT FALLS— A Culbertson man who admitted to strangling a woman during an argument in a vehicle on the Blackfeet Indian Reservation in September 2018 was sentenced on June 20 to 22 months in prison and to two years of supervised release, U.S. Attorney Kurt Alme said.
Elijah Blaine Eagleman, 24, pleaded guilty to strangulation in March.
U.S. District Judge Brian M. Morris presided.
Prosecutors said evidence would show that on Sept. 8, 2018, Eagleman hit and strangled the victim near Browning, on the Blackfeet Reservation. The victim lost consciousness after Eagleman choked her with his left forearm and does not recall being hit in the face by Eagleman. The victim said in a statement that the two of them had been arguing.
A law enforcement officer responded after a woman reported to law enforcement that she had stopped at a domestic assault at the intersection of U.S. Highways 2 and 89, at the Y, near Browning. She said a man was on top of a woman, who appeared to be trying to wave her down. The officer approached the vehicle and saw that the victim, who was the driver, had fresh bruises on her face and was crying. The victim was treated at the Indian Health Service and released the next morning.
In an interview with an agent, the victim said Eagleman had wrapped his forearm around her neck and pulled her backward into his seat, choking her. The agent observed injuries to the victim’s face and neck as being consistent with a strangulation assault.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Indian Affairs and Blackfeet Tribal Police.
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Charlotte Woman Indicted for Preparing False Tax ReturnsRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte indicted Elizabeth Pigatt, 46, of Charlotte, on June 20, 2019, on charges of aiding and assisting in the preparation of fraudulent tax returns for her client and filing false tax returns for herself, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, beginning in at least 2012 and continuing through 2016, the defendant owned and operated Pigatt Taxes Quick, a tax return preparation business located in Charlotte. The indictment alleges that Pigatt prepared income tax returns for clients that claimed false education credits, false Premium Tax Credits, and false Schedule C businesses to inflate refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Pigatt falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2013, 2014, and 2015, and in her 2012 through 2015 tax returns, Pigatt also falsely claimed education credits and the incorrect filing status.
According to allegations in the indictment, Pigatt prepared or caused to be prepared more than 430 tax returns for tax years 2011 through 2015 that claimed total refunds of more than $2 million. Pigatt allegedly received at least $95,000 in fees from her clients which were taken directly from her clients’ refunds. In some cases, the indictment alleges that Pigatt’s clients were unaware of how much they were being charged, which was frequently between $250 and $500.
As alleged in the indictment, Pigatt regularly failed to provide her clients with copies of their prepared and filed tax returns. Some clients received correspondence from the IRS after their taxes were filed questioning items on the tax returns. The indictment alleges that Pigatt refused to assist the clients with questions from the IRS.
The indictment further alleges that Pigatt also prepared a false 2015 income tax return for an undercover IRS agent, which included false education credits.
Pigatt faces a maximum possible sentence of three years in prison on each count, as well as a period of supervised release, restitution, and monetary penalties.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
IRS-CI is leading the investigation. The U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Buffalo Man Sentenced on Drug and Ammunition ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Tremaine Giddens, 42, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine, and being a felon in possession of ammunition, was sentenced by Chief U.S. District Judge Frank P. Geraci, Jr. to serve 71 months in prison.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that in October 2017, the defendant sold a quantity of cocaine to an individual working with the Drug Enforcement Administration (DEA) in a commercial parking lot at 15 Skillen Street in Buffalo.
On November 9, 2017, a federal search warrant was executed at 15 Skillen Street where investigators recovered a quantity of suspected cocaine, plastic bags, baking powder, and 2 digital scales. In addition, 35 rounds of .44 caliber ammunition was recovered.
On August 29, 2006, Giddens was convicted in Federal Court of possession with intent to distribute, and distribution of, a controlled substance. On January 20, 2000, in Erie County Court, the defendant was convicted of Criminal Possession of a Controlled Substance in the Fifth Degree. As a result of those convictions, Giddens is legally prohibited from possessing ammunition.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Buckhannon man and Clarksburg man sentenced for methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joshua Langbein, of Buckhannon, West Virginia, and Ramiro Pimentel, Jr., of Clarksburg, West Virginia, were sentenced today for distributing methamphetamine, United States Attorney Bill Powell announced.
Langbein, age 28, was sentenced to 115 months incarceration. Langbein pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in March 2019. He admitted to distributing methamphetamine in March 2018 in Harrison County.Pimentel, age 32, was sentenced to 78 months incarceration. Pimentel pled guilty to one count of “Distribution of Methamphetamine” in February 2019. He admitted to selling methamphetamine in May 2017 in Harrison County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part 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. District Judge Thomas S. Kleeh presided.
Brazilian National Indicted for Firearm TraffickingRead the Press Release
BOSTON – A Brazilian national, who resides in Malden, was charged in federal court in Boston yesterday with immigration and firearms crimes.
Vanderlei Rodrigues DeAraujo, a/k/a Neneco, 43, was indicted on one count of dealing in firearms without a license, two counts of alien in possession of a firearm and ammunition, and one count of illegal reentry of a previously deported alien. DeAraujo will be arraigned in federal court in Boston at a later date.
According to the indictment, DeAraujo possessed and subsequently sold firearms and ammunition on two occasions: on Sept. 6, 2018, and Jan. 28, 2019. At the time of the firearm sales, DeAraujo was unlawfully present in the United States, having been previously deported to Brazil on Aug. 18, 2011, and returning to the United States illegally sometime thereafter.
The charge of engaging in the business of dealing in firearms without a license carries a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of being an alien in possession of firearm and ammunition carries a sentence of no greater than 10 years in prison, three years supervised release, and a fine of up to $250,000. The charge of unlawful reentry of a previously deported alien carries a sentence of no greater than two years in prison, up to one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Marcos D. Charles, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made announcement today. Valuable assistance was provided by Homeland Security Investigations in Boston, the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division and the Malden Police Department. Assistant U.S. Attorney Lindsey Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bookkeeper Sentenced to 30 Months after Pleading Guilty to Failing to Declare More Than $700,000 in Stolen Money on Tax Return and Stealing over Five Million Dollars from New Orleans Law Firm and Real Estate CompanyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that PEGGY NAGELE, age 65 of Thibodeaux, Louisiana was sentenced Thursday, June 13, 2019 to serve 30 months in federal prison. She previously pled guilty to a one-count bill of information, charging her with violating Title 26, United States Code, Section 7206, making false statements on an income tax return in January 2019.
In papers signed by NAGELE and filed in open court, NAGELE admitted to failing to declare more than $727,847.80 in funds she had stolen on her 2011 Federal tax form 1040, as charged in the Bill of Information. NAGELE was employed as a bookkeeper with Law Firm A, a New Orleans law firm. NAGELE further admitted to theft of $5,083,601 from Firm “A” and Business “A”, a real estate management company.
NAGELE further admitted to having unfettered access to both entities checkbooks and financial assets. She wrote checks to herself from operating accounts at Firm “A”. She disguised her thefts by making the checks payable to routine vendors, or simply did not record the checks in the check register. The checks were then deposited into either Mortgage Lending Group, a business NAGELE and her family controlled or Nagele Corporation, another business controlled by the defendant.
“The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Demetrius Hardeman, Assistant Special Agent in Charge, Atlanta Field Office – New Orleans Post. “The federal tax laws are normally violated in these cases which can add to additional jail time. As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm.”
NAGELE was also ordered to pay $5,083,601 in restitution to her victims. She is to report to prison in August, 2019.
U.S. Attorney Strasser praised the work of the Internal Revenue Service-Criminal Investigation Division for their thorough investigation. The case was prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
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Black Guerilla Family Gang Member Sentenced to Life in Prison for Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Marquise McCants, a/k/a Digga, age 26, of Baltimore, to life in prison for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (BGF). In January 2018, McCants was convicted by a federal jury of racketeering conspiracy, conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm by a convicted felon. At the sentencing hearing, the government also presented evidence that McCants committed an additional murder that was unsolved at the time of McCants’ trial.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Maryland Attorney General Brian E. Frosh; and Baltimore City State’s Attorney Marilyn Mosby.
“Marquise McCants and his fellow gang members brought terror and death to Baltimore’s Greenmount Avenue neighborhood with guns, drugs, and violence,” said U.S. Attorney Robert K. Hur. “As a result of a coordinated effort by our federal, state, and local law enforcement partners, nine members of the BGF Greenmount Regime have been removed from our community and Marquise McCants faces the rest of his life in federal prison, where there is no parole—ever. I urge anyone who’s thinking of following these gang members’ example: Please, put down the guns and save a life—maybe even your own.”
According to the evidence presented at the two-month trial, McCants was a member of an organization known today as the BGF Greenmount Avenue Regime, a violent set of BGF. Between 2005 and 2017, the gang and its members were responsible for seven murders; three non-fatal shootings; more than 10 armed robberies; and over 12 years of street-level drug dealing. McCants was a member of the gang during that time and dealt drugs, and committed stabbings, robberies, and attempted murders in furtherance of BGF.
Beginning in approximately 2005 and continuing until early 2007, co-defendant and BGF Greenmount Regime leader Gerald Johnson supplied distribution quantities of cocaine, crack cocaine, heroin, and methylenedioxy-methamphetamine (ecstasy) to YGF members, including McCants, who was then a juvenile. According to witness testimony, McCants primarily sold crack cocaine in the vicinity of Barclay and 24th Streets. McCants also participated in violence on behalf of the gang. For example, on May 9, 2008, in the 2400 block of Greenmount Avenue, McCants, who was not even sixteen years old at the time, led a group of individuals who attacked and stabbed a twelve-year-old member of a rival Bloods gang. A witness who identified McCants as the person who led the attack testified that afterward, members of BGF walked back and forth in front of the witness’s residence in an apparent effort to silence the witness. The witness’ family moved out of the neighborhood shortly thereafter, in fear for their lives.
Witnesses testified at trial that on August 26, 2010, McCants and an unknown accomplice committed an armed home invasion and robbery of a family in Elkton, Maryland. Further, the evidence proved that in August 2011, McCants assaulted and stabbed a member of a rival Bloods gang in a prison in Hagerstown, Maryland.
On February 4, 2017, while a fugitive in the case, McCants attempted to murder an individual in the vicinity of Greenmount and North Avenues, shooting him seven times in the legs and back. McCants then fled to a residence in the 5600 block of Pioneer Drive, where he was arrested after a multi-hour standoff with a U.S. Marshals Task Force. Before surrendering, McCants disassembled the .40 caliber firearm used to shoot the victim and hid it behind a wall in a bathroom of the residence. In recorded jail calls after his arrest, McCants attempted to direct confederates to dispose of the weapon. Law enforcement officers monitoring his jail calls were able to recover the gun, which was then examined and linked to the February 4 shooting.
On September 26, 2017, a hidden audio-video recording device in a common area at the Chesapeake Detention Facility captured McCants telling co-conspirator Norman Handy about a brutal murder he committed with a fellow BGF member in retaliation for the victim shooting up the BGF member’s residence on Druid Hill. According to McCants, he and his co-conspirator convinced the victim to come for a ride with them. Upon reaching their destination, the victim started to get out of the car, when McCants grabbed the victim’s shirt and fired 11 rounds at him, killing him. McCants bragged that he took the victim’s phone while “he was still twitching.”
Based on evidence presented at the sentencing hearing, the Court also found that McCants shot and killed George Cookson on January 19, 2017, in connection with an effort to collect a drug debt owed to an associate. The gun used to murder Cookson was recovered during the execution of a search warrant on a vehicle parked in the driveway of the associate’s home in northeast Baltimore, where McCants was arrested. The gun was found in a hidden compartment in the vehicle, along with another firearm.
Eight co-defendants, also members of the BGF gang, were convicted of conspiring to violate federal racketeering and drug trafficking laws and have been sentenced, including Gerald Thomas Johnson, a/k/a “Geezy,” age 35; and Kenneth Jones, a/k/a “K-Slay” and “Slay,” age 30, both of Baltimore, who were convicted after trial and sentenced to life in prison.
United States Attorney Robert K. Hur commended the ATF, the FBI, the Baltimore Police Department, the Maryland Attorney General’s Office, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Christina Hoffman, who prosecuted the case.
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Baltimore man sentenced for role in methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Justin Jackson, of Baltimore, Maryland, was sentenced today to 48 months incarceration for his role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Jackson, age 41, pled guilty to one count of “Distribution of Methamphetamine” in March 2019. Jackson admitted to selling methamphetamine in November 2017 in Harrison County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part 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. District Judge Thomas S. Kleeh presided.
Attorney Indicted for Conspiring to Commit Immigration FraudRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an Indictment charging DAVID E. PIVER, age 59, from Newton Square, Pennsylvania, with conspiracy to commit visa fraud and false statements, fraud and misuse of visas permits and other documents; false statement in an immigration proceeding relating to alien registry; and, aiding and abetting.
According to the Indictment, PIVER is an attorney admitted to practice law in Pennsylvania and in immigration proceedings throughout the United States. The Indictment alleges that PIVER conspired with a Nepalese client to conceal a past false claim of United States citizenship. The purpose of the scheme was to fraudulently qualify the Nepalese client for lawful permanent resident status in the United States. The charging document alleges that it was further part of the conspiracy that PIVER would be paid approximately $10,000.
Publicly available court documents also show that, in order to accomplish the purpose of the conspiracy, PIVER instructed the Nepalese client to deny having made the previous claim of United States citizenship and file immigration applications containing false statements. When the Nepalese client was confronted by immigration officers in Durham, North Carolina about his prior false claim, PIVER advised him to recant the statement and withdraw the application. Thereafter, PIVER advised the Nepalese client to resubmit the application containing the same false statement, but move to a different city in order to avoid the jurisdiction of the immigration office in Durham, North Carolina.
If convicted, PIVER would face maximum penalties of fifty years’ imprisonment, a $1,750,000.00 fine, and a term of 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.
The case is being investigated by the Document Benefit Fraud Task Force (DBFTF) led by Homeland Security Investigations, and assisted by U.S. Citizenship and Immigration Services (USCIS), among other agencies.
Armed Heroin Dealer Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ISMAEL MANGUAL, 43, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 137 months of imprisonment, followed by four years of supervised release, for heroin distribution and firearm possession offenses.
According to court documents and statements made in court, on August 31, 2017, Milford Police stopped a vehicle Mangual was driving. Mangual did not have a driver’s license, the car was not registered or insured, and there was a six-year-old boy in the back seat without a car seat or seatbelt. A subsequent search of the car revealed a loaded Glock 27 .40 caliber handgun, a Glock 30 .45 handgun that had been reported stolen, approximately 140 grams of heroin and a digital scale. The loaded firearm was found in the rear footwell of the car, close to where the child had been sitting. Mangual was arrested on state charges on that date.
On March 28, 2019, Mangual pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin, and one count of possession a firearm in furtherance of a narcotics trafficking offense.
Mangual’s criminal history includes state convictions for robbery and narcotics offenses.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, which includes personnel from the DEA, Connecticut State Police and Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Anchorage Man Arrested and Charged for Armed Bank RobberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Kek Nyathor Bol, 21, of Anchorage, has been charged by criminal complaint with bank robbery and discharging a firearm during a crime of violence, in connection with the June 15, 2019, robbery of Credit Union 1 located at 4020 Debarr Road.
According to the criminal complaint, on June 15, 2019, Bol allegedly entered the Credit Union 1 branch armed with a semi-automatic pistol with an extended magazine wearing grey sweat pants, a grey sweatshirt, and a black bandana covering his face. It is alleged that, immediately upon entering the branch, Bol fired a shot into the ceiling, and demanded money from the tellers while pointing the pistol at them. He then ran out of the building after the robbery.
The complaint explains that law enforcement obtained and reviewed video surveillance of a man who was running into and out of the credit union at the time of the robbery, and who dropped several items in the parking lot, later identified as bundles of cash. The footage also identified a sedan that was seen near the man before and after the robbery. Anchorage Crime Stoppers received an anonymous tip that led law enforcement officers to an Anchorage address where Bol resided. A sedan matching the vehicle seen during the robbery was parked directly in front of the residence. While searching the vehicle and the sedan, investigators located a black Glock Model 19 9mm handgun and ammunition, as well as thousands of dollars in cash, some of which they were able to match to the money taken in the robbery through a comparison of serial numbers.
Bol was arrested on the charges the evening of June 18, 2019, and was ordered detained pending trial. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD), as part of FBI’s Safe Streets Task Force, conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney James Klugman.
The charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Agawam Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
BOSTON - An Agawam man pleaded guilty yesterday in federal court in Boston to his role in a cocaine conspiracy.
Lawon Baulkman, 37, pleaded guilty to one count of conspiracy to distribute 500 grams or more of cocaine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 16, 2019.
Baulkman conspired with co-defendant David Cruz and others to process and distribute cocaine. According to court documents, Cruz obtained the cocaine from sources in Mexico and arranged for the cocaine to be transported to the Springfield area via concealed compartments in a Nissan Juke. Cruz has pleaded guilty to cocaine and firearms offenses and is awaiting sentencing in federal court in Worcester.
Baulkman faces at least five years and no more than 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Valuable assistance was provided by the Internal Revenue Service Criminal Investigation’s in Boston and the Westfield Police Department. Assistant U.S. Attorneys Katharine A. Wagner of Lelling’s Springfield Office and Evan J. Gotlob of Lelling’s Boston Office are prosecuting the case.
Thursday 20 June 2019
Woman Sentenced to 70 Months for Methamphetamine Parcel Delivery SchemeRead the Press Release
United States Attorney Joe Kelly announced that Chief United States District Judge John M. Gerrard, sentenced Mayra Guadalupe Nunez today to a term of imprisonment of 70 months, to be served in the U.S. Bureau of Prisons. Nunez pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine, a felony offense.
Investigators with the Omaha Field Division of the Drug Enforcement Administration and the Douglas County Sheriff’s Office intercepted a FedEx delivery of packages containing approximately 10 pounds of methamphetamine. Investigators successfully executed the delivery at a residence in Omaha, where Nunez and Jose Guzman-Ramirez received the packages. Guzman-Ramirez was sentenced in February of 2019 to a term of imprisonment of 120 months, and will be removed to Mexico by immigration authorities after he serves his sentence. Nunez is a U.S. citizen. Investigators recovered the methamphetamine and more than $11,600.00 in United States Currency, which is subject to criminal forfeiture.
Wichita Man Pleads Guilty to Four Commercial RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty Wednesday to four commercial robberies, U.S. Attorney Stephen McAllister said.
Kenneth W. Cade, 29, Wichita, Kan., pleaded guilty to four counts of robbery and one count of carrying a firearm during a robbery. In his plea, he admitted committing the following robberies:
- Dollar General Store, 915 S. Glendale in Wichita, Nov. 22, 2017. Cade admitted pointing a gun at an employee and demanding money.
- C-Store, 837 S. Oliver in Wichita, Feb. 7, 2018. Cade admitted serving as a lookout while a co-defendant pointed a gun at an employee and demanded money.
- Arby’s, 4308 E. Harry in Wichita, Feb. 14, 2018. Cade admitted pointing a firearm at an employee and demanding money.
- Circle K Store, 515 N. Seneca in Wichita, Feb. 14, 2018. Cade admitted grabbing cash from a register after a co-defendant pointed a gun at an employee and demanded money.
Co-defendant Savannah Cole, 21, Wichita, Kan., is scheduled for a change of plea hearing June 24, 2019.
Cade is set for sentencing Sept. 6. Both parties have agreed to recommend Cade receive a sentence in a range from 144 months to 170 months in federal prison.
McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case, which was prosecuted as part of Project Safe Neighborhoods, a U.S. Department of Justice initiative targeting violent crime.
Walmart Inc. and Brazil-Based Subsidiary Agree to Pay $137 Million to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
ALEXANDRIA, Va. – Walmart Inc. (Walmart), a U.S.-based multinational retailer and one of the world’s largest corporations, and its wholly owned Brazilian subsidiary, WMT Brasilia S.a.r.l. (WMT Brasilia), have agreed to pay a combined criminal penalty of $137 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA). WMT Brasilia pleaded guilty today in connection with the resolution.
“Walmart violated the Foreign Corrupt Practices Act because it failed to implement the internal controls necessary to ferret out corrupt conduct,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “For more than a decade, Walmart experienced exponential international growth but failed to create safeguards to protect against corruption risks in various countries. This resolution is the result of several years of steadfast work by the prosecutors and our law enforcement partners at the FBI and IRS-CI.”
According to Walmart’s admissions, from 2000 until 2011, certain Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption were aware of certain failures involving these controls, including relating to potentially improper payments to government officials in certain Walmart foreign subsidiaries, but nevertheless failed to implement sufficient controls that, among other things, would have ensured: (a) that sufficient anti-corruption-related due diligence was conducted on all third-party intermediaries (TPIs) who interacted with foreign officials; (b) that sufficient anti-corruption-related internal accounting controls concerning payments to TPIs existed; (c) that proof was required that TPIs had performed services before Walmart paid them; (d) that TPIs had written contracts that included anti-corruption clauses; (e) that donations ostensibly made to foreign government agencies were not converted to personal use by foreign officials; and (f) that policies covering gifts, travel and entertainment sufficiently addressed giving things of value to foreign officials and were implemented. Even though senior Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption knew of these issues, Walmart did not begin to change its internal accounting controls related to anti-corruption to comply with U.S. criminal laws until 2011.
“Walmart profited from rapid international expansion, but in doing so chose not to take necessary steps to avoid corruption,” said Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division. “In numerous instances, senior Walmart employees knew of failures of its anti-corruption-related internal controls involving foreign subsidiaries, and yet Walmart failed for years to implement sufficient controls comporting with U.S. criminal laws. As today’s resolution shows, even the largest of U.S. companies operating abroad are bound by U.S. laws, and the Department of Justice will continue to aggressively investigate and prosecute foreign corruption.”
The internal controls failures allowed Walmart foreign subsidiaries in Mexico, India, Brazil and China to hire TPIs without establishing sufficient controls to prevent those TPIs from making improper payments to government officials in order to obtain store permits and licenses. In a number of instances, insufficiencies in Walmart’s anti-corruption-related internal accounting controls in these foreign subsidiaries were reported to senior Walmart employees and executives. The internal control failures allowed the foreign subsidiaries in Mexico, India, Brazil and China to open stores faster than they would have with sufficient internal accounting controls related to anti-corruption. Consequently, Walmart earned additional profits through these subsidiaries by opening some of its stores faster.
“The FBI will hold corporations responsible when they turn a blind eye to corruption," said Robert Johnson, Assistant Director of the FBI’s Criminal Investigative Division. "If there is evidence of violations of FCPA, we will investigate. No corporation, no matter how large, is above the law."
In Mexico, a former attorney for Walmart’s local subsidiary reported to Walmart in 2005 that he had overseen a scheme for several years prior in which TPIs made improper payments to government officials to obtain permits and licenses for the subsidiary and that several executives at the subsidiary knew of and approved of the scheme. Most of the TPI invoices included a code specifying why the subsidiary had made the improper payment, including: (1) avoiding a requirement; (2) influence, control or knowledge of privileged information known by the government official; and (3) payments to eliminate fines.
“Walmart’s guilty plea is another step in IRS-CI’s ongoing effort to pursue corporations that engage in corruption that prevents fair competition around the world,” said Kelly Jackson, Special Agent in Charge of IRS Criminal Investigations’ (IRS-CI) Washington, D.C. Office. “Through our efforts, we delved through layers of transactions and uncovered the bribery of foreign officials. Today’s announcement is a statement that no company, even one as large as Walmart, is above the law.”
In India, because of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption, from 2009 until 2011, Walmart’s operations there were able to retain TPIs that made improper payments to government officials in order to obtain store operating permits and licenses. These improper payments were then falsely recorded in Walmart’s joint venture’s books and records with vague descriptions like “misc fees,” “miscellaneous,” “professional fees,” “incidental” and “government fee.”
In Brazil, as a result of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption at its subsidiary, Walmart Brazil, an entity majority-owned by WMT Brasilia, despite repeated findings in internal audit reports that such controls were lacking, Walmart Brazil continued to retain and renew contracts with TPIs without conducting the required due diligence. Improper payments were in fact paid by some of these TPIs, including a construction company that made improper payments to government officials in connection with the construction of two Walmart Brazil stores in 2009 without the knowledge of Walmart Brazil. Walmart Brazil indirectly hired a TPI whose ability to obtain licenses and permits quickly earned her the nickname “sorceress” or “genie” within Walmart Brazil. Walmart Brazil employees, including a Walmart Brazil executive, knew they could not hire the intermediary directly because of several red flags. In 2009, the TPI made improper payments to government inspectors in connection with the construction of a Walmart Brazil store without the knowledge of Walmart Brazil. WMT Brasilia was a wholly-owned subsidiary of Walmart and was a majority-owner of Walmart Brazil.
In China, Walmart’s local subsidiary’s internal audit team flagged numerous weaknesses in internal accounting controls related to anti-corruption at the subsidiary between 2003 and 2011, sometimes repeatedly, but many of these weaknesses were not addressed. In fact, from 2007 until early 2010, Walmart and the subsidiary failed to address nearly all of the anti-corruption-related internal controls audit findings.
Walmart entered into a three-year non-prosecution agreement and agreed to retain an independent corporate compliance monitor for two years. The $137 million penalty reflects a 20 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range for the portion of the penalty applicable to conduct in Mexico and 25 percent for the portion applicable to the conduct in Brazil, China and India. Walmart fully cooperated with the investigation in Brazil, China and India. Walmart cooperated with the investigation in Mexico, but did not timely provide documents and information to the government and did not de-conflict with the government’s request to interview one witness before Walmart interviewed that witness. Walmart did not voluntarily disclose the conduct in Mexico and only disclosed the conduct in Brazil, China and India after the government had already begun investigating the Mexico conduct. The $137 million penalty includes forfeiture of $3.6 million and a fine of $724,898 from WMT Brasilia.
In a related resolution with the U.S. Securities and Exchange Commission (SEC), Walmart agreed to disgorge $144 million in profits.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Robert Johnson, Assistant Director of the FBI’s Criminal Investigative Division, and Kelly Jackson, Special Agent in Charge of IRS Criminal Investigations’ (IRS-CI) Washington, D.C. Office, made the announcement.
The FBI’s International Corruption Squad in Washington, D.C. and IRS-CI are investigating the case. Assistant Chiefs Tarek Helou and Lorinda Laryea and Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamar Walker of the Eastern District of Virginia are prosecuting the case.
The Criminal Division’s Office of International Affairs has provided significant assistance by obtaining key evidence in this case, as have public authorities in, among other countries, Mexico and India.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
A copy of this press release may be found 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-192.
Walmart Inc. and Brazil-Based Subsidiary Agree to Pay $137 Million to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
Walmart Inc. (Walmart), a U.S.-based multinational retailer and its wholly owned Brazilian subsidiary, WMT Brasilia S.a.r.l. (WMT Brasilia), have agreed to pay a combined criminal penalty of $137 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA). WMT Brasilia pleaded guilty today in connection with the resolution.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Special Agent in Charge Kelly Jackson of IRS Criminal Investigation’s (IRS-CI) Washington, D.C. office made the announcement.
“Walmart profited from rapid international expansion, but in doing so chose not to take necessary steps to avoid corruption,” said Assistant Attorney General Benczkowski. “In numerous instances, senior Walmart employees knew of failures of its anti-corruption-related internal controls involving foreign subsidiaries, and yet Walmart failed for years to implement sufficient controls comporting with U.S. criminal laws. As today’s resolution shows, even the largest of U.S. companies operating abroad are bound by U.S. laws, and the Department of Justice will continue to aggressively investigate and prosecute foreign corruption.”
“Walmart violated the Foreign Corrupt Practices Act because it failed to implement the internal controls necessary to ferret out corrupt conduct,” said U.S. Attorney Terwilliger. “For more than a decade, Walmart experienced exponential international growth but failed to create safeguards to protect against corruption risks in various countries. This resolution is the result of several years of steadfast work by the prosecutors and our law enforcement partners at the FBI and IRS-CI.”
“The FBI will hold corporations responsible when they turn a blind eye to corruption," said FBI Assistant Director Johnson. "If there is evidence of violations of FCPA, we will investigate. No corporation, no matter how large, is above the law."
“Walmart’s guilty plea is another step in IRS-CI’s ongoing effort to pursue corporations that engage in corruption that prevents fair competition around the world,” said IRS-CI Special Agent in Charge Jackson. “Through our efforts, we delved through layers of transactions and uncovered the bribery of foreign officials. Today’s announcement is a statement that no company, even one as large as Walmart, is above the law.”
According to Walmart’s admissions, from 2000 until 2011, certain Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption were aware of certain failures involving these controls, including relating to potentially improper payments to government officials in certain Walmart foreign subsidiaries, but nevertheless failed to implement sufficient controls that, among other things, would have ensured: (a) that sufficient anti-corruption-related due diligence was conducted on all third-party intermediaries (TPIs) who interacted with foreign officials; (b) that sufficient anti-corruption-related internal accounting controls concerning payments to TPIs existed; (c) that proof was required that TPIs had performed services before Walmart paid them; (d) that TPIs had written contracts that included anti-corruption clauses; (e) that donations ostensibly made to foreign government agencies were not converted to personal use by foreign officials; and (f) that policies covering gifts, travel and entertainment sufficiently addressed giving things of value to foreign officials and were implemented. Even though senior Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption knew of these issues, Walmart did not begin to change its internal accounting controls related to anti-corruption to comply with U.S. criminal laws until 2011.
The internal controls failures allowed Walmart foreign subsidiaries in Mexico, India, Brazil and China to hire TPIs without establishing sufficient controls to prevent those TPIs from making improper payments to government officials in order to obtain store permits and licenses. In a number of instances, insufficiencies in Walmart’s anti-corruption-related internal accounting controls in these foreign subsidiaries were reported to senior Walmart employees and executives. The internal control failures allowed the foreign subsidiaries in Mexico, India, Brazil and China to open stores faster than they would have with sufficient internal accounting controls related to anti-corruption. Consequently, Walmart earned additional profits through these subsidiaries by opening some of its stores faster.
In Mexico, a former attorney for Walmart’s local subsidiary reported to Walmart in 2005 that he had overseen a scheme for several years prior in which TPIs made improper payments to government officials to obtain permits and licenses for the subsidiary and that several executives at the subsidiary knew of and approved of the scheme. Most of the TPI invoices included a code specifying why the subsidiary had made the improper payment, including: (1) avoiding a requirement; (2) influence, control or knowledge of privileged information known by the government official; and (3) payments to eliminate fines.
In India, because of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption, from 2009 until 2011, Walmart’s operations there were able to retain TPIs that made improper payments to government officials in order to obtain store operating permits and licenses. These improper payments were then falsely recorded in Walmart’s joint venture’s books and records with vague descriptions like “misc fees,” “miscellaneous,” “professional fees,” “incidental” and “government fee.”
In Brazil, as a result of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption at its subsidiary, Walmart Brazil, despite repeated findings in internal audit reports that such controls were lacking, Walmart Brazil continued to retain and renew contracts with TPIs without conducting the required due diligence. Improper payments were in fact paid by some of these TPIs, including a construction company that made improper payments to government officials in connection with the construction of two Walmart Brazil stores in 2009 without the knowledge of Walmart Brazil. Walmart Brazil indirectly hired a TPI whose ability to obtain licenses and permits quickly earned her the nickname “sorceress” or “genie” within Walmart Brazil. Walmart Brazil employees, including a Walmart Brazil executive, knew they could not hire the intermediary directly because of several red flags. In 2009, the TPI made improper payments to government inspectors in connection with the construction of a Walmart Brazil store without the knowledge of Walmart Brazil. WMT Brasilia was a wholly-owned subsidiary of Walmart and was a majority-owner of Walmart Brazil, Walmart’s wholly-owned subsidiary in Brazil, and the majority-owner of retail stores operating as Walmart Brazil.
In China, Walmart’s local subsidiary’s internal audit team flagged numerous weaknesses in internal accounting controls related to anti-corruption at the subsidiary between 2003 and 2011, sometimes repeatedly, but many of these weaknesses were not addressed. In fact, from 2007 until early 2010, Walmart and the subsidiary failed to address nearly all of the anti-corruption-related internal controls audit findings.
Walmart entered into a three-year non-prosecution agreement and agreed to retain an independent corporate compliance monitor for two years. The $137 million penalty reflects a 20 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range for the portion of the penalty applicable to conduct in Mexico and 25 percent for the portion applicable to the conduct in Brazil, China and India. Walmart fully cooperated with the investigation in Brazil, China and India. Walmart cooperated with the investigation in Mexico, but did not timely provide documents and information to the government and did not de-conflict with the government’s request to interview one witness before Walmart interviewed that witness. Walmart did not voluntarily disclose the conduct in Mexico and only disclosed the conduct in Brazil, China and India after the government had already begun investigating the Mexico conduct. The $137 million penalty includes forfeiture of $3.6 million and a fine of $724,898 from WMT Brasilia.
In a related resolution with the U.S. Securities and Exchange Commission (SEC), Walmart agreed to disgorge $144 million in profits.
The FBI’s International Corruption Squad in Washington, D.C. and IRS-CI are investigating the case. Assistant Chiefs Tarek Helou and Lorinda Laryea and Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamar Walker of the Eastern District of Virginia are prosecuting the case.
The Criminal Division’s Office of International Affairs has provided significant assistance by obtaining key evidence in this case, as have public authorities in, among other countries, Mexico and India.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
United States Attorney Mike Stuart Issues Statement in Recognition of West Virginia DayRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement in recognition of West Virginia Day:
“On June 20, 1863, the greatest state in the greatest nation on earth was born out of struggle as a beacon to freedom and individual liberty. We have certainly struggled at times along our path but West Virginia remains a tremendous beacon for freedom and liberty with amazing economic potential today.
HAPPY BIRTHDAY TO OUR BELOVED WEST VIRGINIA! A great history with only brighter, bigger, bolder days ahead. Our mantra must be: Bold in vision; Bold in purpose. We must compete and we must compete to win. Greatness is at our doorstep if we choose to embrace it. Our brightest days are surely ahead.
I’m always proud to be a West Virginian in these mountains, along these ‘Country Roads’, among our great people.
Take time today to appreciate our blessings and our opportunities on this special day.
HAPPY BIRTHDAY WEST VIRGINIA!”
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