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5 August 2019
Manchester Man Sentenced to 20 Months for Felon in Possession of a FirearmRead the Press Release
CONCORD - Joshua Hooper, 36, of Manchester, was sentenced to 20 months in prison for being a felon in possession of a firearm and ammunition, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, law enforcement officers obtained information that Hooper was selling firearms. At the time, Hooper was prohibited from possessing any firearms or ammunition as a result of at least one prior felony conviction. On July 15, 2017, Hooper possessed a Noveski Rifleworks, Model N4, lower receiver, and sold that firearm to another individual. On March 23, 2018, law enforcement officers obtained a search warrant for Hooper’s residence. While executing the search warrant, officers recovered a large quantity of ammunition and other firearm accessories.
Hooper previously pleaded guilty on May 2, 2019.
“Convicted felons who violate federal law by possessing firearms should expect to spend time in prison,” said U.S. Attorney Murray. “Working through Project Safe Neighborhoods, we coordinate with ATF and our other law enforcement partners to reduce crime by keeping firearms out of the hands of criminals.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski. The case was previously prosecuted by Assistant U.S. Attorney Shane Kelbley.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man Sentenced to 7 Years for Madison Bank RobberiesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeffrey Campton, 30, Elkhorn, Wisconsin, was sentenced on August 2 by U.S. District Judge William Conley to seven years in federal prison for robbing three banks in Madison in 2018.
On June 3, 2019, Campton pleaded guilty to robbing Home Savings Bank on East Washington Avenue on September 4, 2018, and stipulated to robbing the Cottage Grove Road Associated Bank on August 25, 2018, and the West Broadway Street Associated Bank on August 31, 2018.
Campton had just been released from Wisconsin state prison on June 7, 2018, after completing the Earned Release Program, an intensive substance abuse treatment program. Judge Conley noted that this program had no impact on Campton’s return to drug use and subsequent string of bank robberies that terrorized the victims. Judge Conley found Campton’s actions outrageous and warned him that if he does not clean up his act when released from this sentence, he will be going back to federal prison. Campton was also ordered to pay restitution.
The charge against Campton was the result of an investigation conducted by the Madison Police Department and Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
Man Pleads Guilty to Heroin and Firearms CrimesRead the Press Release
NORFOLK, Va. – A Portsmouth man pleaded guilty today to possession with intent to distribute heroin and possessing a gun.
According to court documents, Jameel Malik Simmons, 37, was observed by various Chesapeake police officers selling heroin to a customer outside of his apartment. After the police arrested Simmons, they obtained a search warrant for his residence and found more heroin and a loaded firearm in a kitchen cabinet.
Simmons pleaded guilty to possession of heroin with the intent to distribute and possession of a firearm during a drug trafficking crime and faces a mandatory minimum sentence of five years and maximum sentence of life in prison when sentenced on November 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Rebecca Beach Smith accepted the plea. Assistant U.S. Attorneys William D. Muhr and William B. Jackson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-138.
Man Pays VA Employee $1 Million in Illegal GratuitiesRead the Press Release
DENVER – Roland Vaughn, age 58, of Clearwater, Florida, pled guilty late last week to paying illegal gratuities of more than a million dollars to an employee with the Department of Veterans Affairs (“VA”). In exchange, Vaughn received referrals for his company, Legacy Home Health, which in turned billed the VA more than $3 million for ineligible home health services. The announcement was made by U.S. Attorney Jason Dunn, Special Agent in Charge Gregg Hirstein of the Veterans Affairs Office of the Inspector General, Dean Phillips, Special Agent in Charge of the Denver FBI, and Acting Special Agent in Charge Kevin Caramucci of the IRS—Criminal Investigation.
According to the stipulated facts in the defendant’s plea agreement, Vaughn and the VA employee were long-time friends when, in September 2017, they worked together to help Vaughn establish a company called Legacy Home Health (“Legacy”). The VA employee told Vaughn how to set the company up to submit claims for home health services to the VA’s Spina Bifida Health Care Benefits Program. For certain veterans who have children with spina bifida, the program provides for health services in the home.
The VA employee incorrectly told program beneficiaries that their family members and friends could be paid for providing home health services to the beneficiaries, even though these individuals were not “authorized providers” as required by VA regulations because, with only one exception, they did not hold certified nursing assistant licenses or other medical licensure. The VA employee told these individuals they simply had to sign up through Vaughn’s company – Legacy – the health agency that would bill for their services.
Legacy then submitted claims for home health services on behalf of the family members and friends, billing the VA as much as $88 an hour, but paying the individuals approximately $16 an hour. The VA, in turn, paid Legacy $3,039,761.36 for such claims. In exchange for the referrals to Legacy, Vaughn paid the VA employee $1,007,205.00 in illegal gratuities.
Vaughn’s plea agreement requires him to pay restitution to the VA in the full amount of the illegal payments he made to the VA employee. Vaughn’s sentencing is set for December 6, 2019.
This case was investigated by the VA’s Office of the Inspector General as well as the FBI and IRS-CI. The defendants are being prosecuted by Assistant U.S. Attorney Anna Edgar.
The VA employee referenced in this press release has been indicted by a federal grand jury. The charges pending against that defendant are allegations, and that defendant is presumed innocent unless and until proven guilty.
Man Gets 15 Years in Federal Prison on Armed Robbery and Gun ChargesRead the Press Release
A 20-year old man from Hawaii was sentenced today to 15 years in federal prison after having pleaded guilty in March to robbing a gun shop and using the stolen firearms to commit armed robberies, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge James Deir, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Sentenced was Jeffrey Able.
According to court records, on July 6, 2018, Able broke into the Wicked Trigger Gun Shop in Waterford, Michigan and stole more than 10 firearms. Over the course of approximately four weeks, Able used the stolen firearms to commit armed robberies of several locations in Oakland County.
During his robbery spree, Able would enter the locations brandishing one of the stolen firearms and demand money. Out of fear for their lives, the victims complied and gave Able the money. Able robbed the following locations:
• July 13, 2018 7-Eleven located at 1795 Scott Lake Rd, Waterford;
• July 16, 2018 Mobile Gas Station in Highland Township, Michigan
• July 23, 2018 Alliance Catholic Credit Union in Rochester, Michigan
• August 8, 2018 TCF Bank in Lathrup Village, Michigan
Able took $5,349 from the four locations affected by his robbery spree.
The investigation was led by members of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI Oakland County Gang and Violent Crime Task Force.
The case was prosecuted by Assistant United States Attorney Jihan Williams.
Leader of Conspiracy to Illegally Unlock Cell Phones for Profit Extradited from Hong KongRead the Press Release
A 34-year-old citizen of Pakistan, who allegedly paid insiders at telecommunications giant AT&T to plant malware and otherwise misuse computer networks to unlock cellphones, made an initial appearance today on a 14-count federal indictment, announced U.S. Attorney Brian T. Moran. MUHAMMAD FAHD was arrested in Hong Kong on February 4, 2018, at the request of the United States, and was extradited to the U.S. on Friday August 2, 2019. The second superseding indictment, filed in March 2018, describes how FAHD recruited and paid AT&T insiders to use their computer credentials and access to disable AT&T’s proprietary locking software that prevented ineligible phones from being removed from AT&T’s network. The scheme resulted in millions of phones being removed from AT&T service and/or payment plans, costing the company millions of dollars. FAHD allegedly paid the insiders hundreds of thousands of dollars – paying one coconspirator $428,500 over the five-year scheme.
MUHAMMAD FAHD is charged with conspiracy to commit wire fraud, conspiracy to violate the Travel Act and the Computer Fraud and Abuse Act, four counts of wire fraud, two counts of accessing a protected computer in furtherance of fraud, two counts of intentional damage to a protected computer, and four counts of violating the Travel Act.
“This defendant thought he could safely run his bribery and hacking scheme from overseas, making millions of dollars while he induced young workers to choose greed over ethical conduct,” said U.S. Attorney Brian T. Moran. “Now he will be held accountable for the fraud and the lives he has derailed.”
"This arrest illustrates what can be achieved when the victim of a cyber attack partners quickly and closely with law enforcement,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “When companies that fall prey to malware work with the Department of Justice, no cybercriminal—no matter how sophisticated their scheme—is beyond our reach.”
According to the indictment, between 2012 and 2017, FAHD recruited various AT&T employees to the conspiracy. Some early recruits were paid to identify other employees who could be bribed and convinced to join the scheme. So far, three of those coconspirators have pleaded guilty admitting they were paid thousands of dollars for facilitating FAHD’s fraudulent scheme.
Initially, FAHD allegedly would send the employees batches of international mobile equipment identity (IMEI) numbers for cell phones that were not eligible to be removed from AT&T’s network. The employees would then unlock the phones. After some of the co-conspirators were terminated by AT&T, the remaining co-conspirator employees aided FAHD in developing and installing additional tools that would allow FAHD to use the AT&T computers to unlock cell phones from a remote location. FAHD and a second co-conspirator, who is now deceased, allegedly delivered bribes to the AT&T employees both in person and via payment systems such as Western Union.
The crimes charged are punishable by up to 20 years in prison. If convicted, the ultimate sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. Secret Service Electronic Crimes Task Force.
The case is being prosecuted by Assistant United States Attorneys Francis Franze-Nakamura, Andrew Friedman, Michelle Jensen and Senior Counsel Anthony V. Teelucksingh of DOJ’s Computer Crime and Intellectual Property Section. DOJ’s Office of International Affairs was instrumental in the successful extradition. The U.S. Marshals Service transported FAHD to the United States.
fahd_second_superseding_indictment.pdfLast Defendant Sentenced to 2 Years in Prison for Harmful Marijuana Cultivation Operation in Kiava Wilderness in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Mauricio Vaca Bucio, 32, of Michoacán, Mexico, was sentenced today to two years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced.
Vaca’s sentence follows his guilty plea earlier this year. According to court documents, Vaca and his co-defendants Felipe Angeles Valdez Colima, 35, and Rodolfo Torres Galvan, 29, both Mexican nationals, were apprehended after a two-month investigation in the Kiavah Wilderness, a federally designated wilderness area in the Sequoia National Forest. Law enforcement officers saw Torres and Valdez emerge from the forest and enter a Camaro driven by Vaca. They were subsequently stopped in Weldon. Officers found freshly harvested marijuana in the Camaro and located over 1,800 marijuana plants at the grow site on the trail that led to the drop point. The officers also found deadly illegal pesticides, including carbofuran and zinc phosphide, in both the vehicle and at the grow site. U.S. District Judge Dale A. Drozd also ordered Vaca to pay $7,620 in restitution to the U.S. Forest Service for the damage he caused to the National Forest.
The United States Congress designated the Kiavah Wilderness in 1994, and it is managed by the Bureau of Land Management and the Forest Service. This wilderness area is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management’s Jawbone-Butterbredt Area of Critical Environmental Concern.
This case was the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Valdez and Torres pleaded guilty and were sentenced to 10 years and three years and 10 months in prison, respectively.
Justice Department Settles Immigration-Related Discrimination Claim Against Texas Fast Food FranchiseeRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with R.E.E. Inc., which owns and operates McDonald’s restaurants in the Texas Rio Grande Valley. The settlement resolves a claim that the restaurants R.E.E. operated violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by discriminating against work-authorized non-U.S. citizens when verifying their work authorization.
“Employers should not impose discriminatory restrictions on the choice of valid, legally acceptable documents workers can present to prove they are authorized to work,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We are pleased that R.E.E. will work with the Division to ensure that, in the future, it doesn’t impose unlawful discriminatory barriers on workers during the employment eligibility verification process.”
The Department’s investigation concluded that from at least Oct. 14, 2015, to at least Dec. 31, 2017, R.E.E. required non-U.S. citizens to provide specific documentation issued by the Department of Homeland Security to prove their work authorization because of their citizenship or immigration status, even though some had already presented other valid proof of their authorization to work. The Department also concluded that R.E.E. improperly rejected valid documents some non-U.S. citizens tried to present to prove their work authorization, such as their state IDs and unrestricted Social Security cards. All work-authorized individuals, regardless of citizenship status, have the right to choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States.
Under the settlement, R.E.E. will pay $82,800 in civil penalties to the United States, pay $8,746.43 in back pay to a worker who lost work as a result of R.E.E.’s hiring practices, and be subject to departmental monitoring, training, and reporting requirements.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
More information on how employers can avoid unlawful discrimination is available here. Workers can find information about their rights under the anti-discrimination provision of the INA here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Justice Department Announces Resolution with LLB Verwaltung (Switzerland) AGRead the Press Release
LLB Verwaltung (Switzerland) AG, formerly known as “Liechtensteinische Landesbank (Schweiz) AG” (LLB-Switzerland), a Swiss-based private bank, reached a resolution with the United States Department of Justice, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division today. As part of the agreement, LLB-Switzerland will pay a penalty of $10,680,554.64 to the United States.
“This resolution is another step forward in the Department of Justice’s pursuit of tax evaders, who use foreign bank accounts to commit criminal activity, and those institutions, who enable such criminal tax activity,” said Principal Deputy Assistant Attorney General Zuckerman. “The Department is dedicated to holding both financial institutions and individual offenders accountable for tax evasion.”
According to the terms of the non-prosecution agreement, in addition to paying a penalty, LLB-Switzerland has agreed to cooperate in any related criminal or civil proceedings in return for the Department’s agreement not to prosecute the company for tax-related criminal offenses committed by LLB-Switzerland.
According to the statement of facts agreed to by the parties, LLB-Switzerland and some of its employees, including members of the bank’s management, conspired with a Swiss asset manager and U.S. clients to conceal those U.S. clients’ assets and income from the Internal Revenue Service (IRS) through various means, including using Swiss bank secrecy protections and nominee companies set up in tax haven jurisdictions. At its peak, LLB-Switzerland had approximately one hundred U.S. clients holding nearly $200 million in assets. The majority of those accounts were in the names of nominee entities.
In 1997, Liechtensteinische Landesbank AG (LLB-Vaduz), a bank headquartered in Liechtenstein, acquired LLB-Switzerland (LLB-Vaduz reached a separate agreement with the Justice Department in 2013 that excluded LLB-Switzerland from the resolution). At that time, LLB-Switzerland provided banking and asset management services to individuals and entities, including citizens and residents of the United States, principally through private bankers based in Zurich, Geneva and Lugano, Switzerland. LLB-Switzerland also acted as a custodian of assets managed by third-party external investment advisers.
In 2003, LLB-Switzerland began a relationship with a Swiss asset manager. The asset manager offered to create nominee structures, including corporations, foundations, and trusts, to conceal accounts owned by his U.S. clients at Swiss financial institutions. LLB-Switzerland delegated to the Swiss asset manager the authority to prepare account opening and “know your customer” (KYC) documents.
The Swiss asset manager provided prospective customers with a sales letter, pitching his ability to conceal a client’s assets and income from taxing authorities through the use of multiple layers of sham offshore entities and nominee directors in countries or regions that the Swiss asset manager thought would resist requests for information and assistance from foreign law enforcement, including law enforcement in the United States. LLB-Switzerland and its management knew that the Swiss asset manager was marketing structures to clients as a means of tax evasion as the bank kept a copy of the manager’s sales letter in the bank’s files.
In 2008, after it became publicly known that UBS AG, Switzerland’s largest bank, was the target of a U.S. criminal investigation focusing on tax and other violations, the amounts that LLB-Switzerland held for U.S. clients swelled. At the end of 2007, the Bank had 72 U.S. clients with almost $80 million in assets. By the end of the next year, the number of U.S. clients increased to 107, but the assets more than doubled to over $176 million. LLB-Switzerland’s management knew that many of the U.S. clients coming to LLB‑Switzerland were bringing undeclared funds with them.
Although LLB-Switzerland’s management monitored the United States’ investigation of UBS, LLB-Switzerland failed to take actions to cease assisting U.S. taxpayers to evade their taxes. While in August 2008, LLB-Vaduz prohibited U.S. persons from becoming clients of the Liechtenstein bank, LLB-Switzerland did not implement a similar policy. Despite press reports, indicating the Swiss asset manager was under investigation for helping clients evade U.S. taxes, LLB-Switzerland waited two years – until a grand jury had indicted the Swiss asset manager - to close the accounts he managed.
LLB-Switzerland’s remediation efforts since 2012 have been comprehensive. It halted and terminated all U.S. cross-border business with U.S. clients. All of LLB-Switzerland’s U.S. clients and its relationship with the Swiss asset manager ended. It also dismissed its managers and employees implicated in the Department’s investigation of the bank’s U.S. cross-border business, and LLB-Vaduz has shut down the operations of LLB-Switzerland. In 2013, LLB-Vaduz closed LLB-Switzerland and returned LLB-Switzerland’s banking license to the Swiss Financial Market Supervisory Authority.
Principal Deputy Assistant Attorney General Zuckerman thanked Senior Litigation Counsel Mark F. Daly and Assistant Chief Jason Poole of the Tax Division, who served as counsel on this matter. Zuckerman also thanked the Internal Revenue Service for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Illegal alien sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Rogelio Santacruz Godinez, also known as “Tramposo,” also known as “Trampa,” Citizen of Mexico, was sentenced today to 60 months incarceration for a drug charge, United States Attorney Bill Powell announced.
Godinez, age 37, pled guilty to one count of “Conspiracy to Distribute Cocaine” in August 2018. Godinez worked with others to distribute cocaine in Berkeley and Jefferson Counties from August 2017 to February 2018.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The investigation was led by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department. Other agencies that assisted in the investigation are the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County; Virginia Sheriff’s Office; and the Henry County, Virginia, Sheriff’s Office.
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.
Chief U.S. District Judge Gina M. Groh presided.
Huntington Man Sentenced for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to 78 months in prison for possession with intent to distribute cocaine base or “crack,” announced United States Attorney Mike Stuart.
“Crack is back,” said United States Attorney Mike Stuart. “Sadly, crack is making a comeback. We aren’t going to tolerate another crack crisis like the 90s. We prosecute crack dealers just like we do any other drug dealer and we try to lock them up for as long as possible.”
Samuel Crawford, 40, previously admitted that on December 4, 2016, officers with the Huntington Police Department conducted a search warrant at Crawford’s residence at 204 West 6th Avenue in Huntington. Officers seized approximately 12 grams of crack cocaine. Crawford admitted he intended to sell the cocaine for money.
The Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Huntington Man Sentenced for Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to 32 months in prison for possessing with the intent to distribute oxycodone, announced United States Attorney Mike Stuart. Anthony Saunders, 45, previously admitted that on April 28, 2018, officers with the Huntington Police Department conducted a traffic stop in the 1000 block of 28th Street in Huntington. Officers located approximately 562 oxycodone pills hidden under the carpet of the driver’s side of the vehicle.
“562 oxycodone pills,” said United States Attorney Mike Stuart. “Pills remain a serious problem. Diverting prescription opioids remains a serious problem in our communities and if we catch those violating the law, we will prosecute them to the fullest extent of the law.”
The Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Huntington Felon Sentenced to Prison for Possessing a FirearmRead the Press Release
HUNTINGTON, W.Va. - A Huntington man, Juan Isom, 55, was sentenced today to 57 months in prison for being a felon in possession of a firearm, announced United States Attorney Mike Stuart.
Isom previously admitted that on July 13, 2018, Troopers with the West Virginia State Police Violent Crime and Drug Task Force West executed a search warrant at his residence. Troopers located a Taurus .38 caliber revolver on the shelf of Isom’s nightstand. Isom was prohibited from possessing a firearm under federal law because of a 2006 felony drug conviction in Gaston County, North Carolina.
The Violent Crime and Drug Task Force West conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Hays Woman Sentenced for Mail Fraud in Dispute OverRead the Press Release
WICHITA, KAN. – A Kansas woman was sentenced today to a year of supervised probation for mail fraud in a scheme to make it appear her employer left her half his estate when he died, U.S. Attorney Stephen McAllister said. In addition, she was ordered to make monthly payments of $100 to Fort Hays State University during her probation.
Wanda Oborny, 66, Hays, Kan., pleaded guilty to one count of mail fraud. In her plea, she admitted that in 2013 she mailed a fraudulent purported codicil to Kansas banker Earl O. Field’s will to Ft. Hays State University. The document falsely claimed Field had left a fourth of his estate to the university, a fourth to his lawyer and half to Oborny. In fact, Field left the majority of the estate to the university.
McAllister commended the FBI, Assistant U.S. Attorney Annette Gurney and Assistant U.S. Attorney Debra Barnett for their work on the case.
Hampshire County man sentenced for Clean Water Act violationsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy Peer, of Springfield, West Virginia, was sentenced to five years probation and fined $24,000 for violating permits and discharging untreated sewage from his sewage treatment plant, United States Attorney Bill Powell announced.
Peer, age 56, was the owner of Mountainaire Village Utility, LLC, a sewage water treatment plant serving the residents of Mountainaire Village near Ridgeley, West Virginia. Peer owned and operated this business from early 2008 to July 2016. Peer pled guilty to one count of “Knowing Violation of Permit Conditions” and one count of “False Statements on Discharge Monitoring Reports” in April 2019.
From 2014 to 2016, Peer admitted to failing to maintain the treatment plant, resulting in untreated and undertreated sewage being discharged into the North Branch of the Potomac River, violating the Clean Water Act and his permit. Peer also admitted to falsely reporting quarterly testing on the wastewater from the plant.
Assistant U.S. Attorney David J. Perri and Special Assistant United States Attorney Perry McDaniel, with the Southern District of West Virginia U.S. Attorney’s Office, prosecuted the case on behalf of the government. The Environmental Protection Agency and the West Virginia Department of Environment Protection investigated.
Chief U.S. District Judge Gina M. Groh presided.
HSI Employee Pleads Guilty to Making False Statements to InvestigatorsRead the Press Release
On August 5, 2019, Ivette Dominguez, 33 years old, an Investigative Assistant with the United States Department of Homeland Security (“DHS”), Homeland Security Investigations (“HSI”), pled guilty to an Information charging her with making material false statements to Special Agents from DHS, Office of Inspector General (“DHS-OIG”), and Immigration and Customs Enforcement (“ICE”), Office of Professional Responsibility (“ICE-OPR”), in violation of Title 18, United States Code, Section 1001(a)(2). Dominguez is scheduled for sentencing on October 11, 2019, at 9:30 a.m. before United States District Judge Beth Bloom, where she faces a possible maximum sentence of five (5) years in prison. In addition, Ms. Dominguez will resign from her position with HSI as part of her Plea Agreement.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Jay H. Donly, Special Agent in Charge, DHS-OIG, Miami Field Office, and Michael Moreland, Special Agent in Charge, ICE-OPR, SAC Southeast, made the announcement.
According to the facts admitted at the change of plea, Dominguez, in her position as an Investigative Assistant, provided support to the HSI Special Agents investigating various criminal offenses, including drug trafficking and immigration crimes. Dominguez was assigned to HSI’s Homestead Investigative Group (“HIG”), where her duties included conducting database and criminal history checks to further the criminal investigations being done by that group. In her position, Dominguez was aware that the HIG was conducting a proactive criminal investigation into illegal steroids distribution at the Homestead Air Reserve Base, and played an administrative supporting role in that investigation. Using the information she learned in her official position, in December 2017, she alerted a target about this investigation.
In May 2018, Dominguez contacted that target in advance of the target being interviewed by HIG agents and advised the target that the investigation was weak and that the target was under no obligation to cooperate with the HIG agents. In March 2019, Dominguez exchange a series of text messages with an individual who portrayed herself as a friend of the target. In reality, that individual was a DHS-OIG undercover agent (“UCA”). After the UCA told Dominguez that the target was going to be interviewed by DHS-OIG and ICE-OPR agents, Dominguez asked the UCA to tell the target to lie to the interviewing agents to protect her by denying that Dominguez had given her any warning about the investigation.
On April 26, 2019, Dominguez was interviewed by DHS-OIG and ICE-OPR agents, who informed her that they had received allegations that she had alerted that target about the steroids investigation. During this interview, Dominguez initially denied any wrongdoing, but after she was confronted with the text messages she exchanged with the UCA, she admitted that she had alerted the target about the investigation, had provided her with advice and information about the investigation, had warned her not to sell steroids to a person who would approach that target, and had asked that target to lie to interviewing DHS-OIG and ICE-OPR agents to protect her.
Ms. Fajardo Orshan commended the investigative efforts of DHS-OIG and ICE-OPR. This case is being prosecuted by Assistant United States Attorney Edward N. Stamm.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guatemalan National Pleaded Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced that on August 1, 2019 ISAIAS MENDOZA-AILON, age 24, pleaded guilty to a one-count bill of information for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) and was sentenced thereafter.
According to the bill of information, ISAIAS MENDOZA-AILON (“MENDOZA-AILON”), re-entered the United States after being previously deported on October 3, 2018.
MENDOZA-AILON faced a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. MENDOZA-AILON was sentenced to be imprisoned for a term of 6 months and then would be transferred to United States Immigration and Customs Enforcement for deportation.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Guatemalan Citizen Pleads Guilty and is Sentenced to Time Served for Being Found in the United States After Previously Being RemovedRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jerson Otoniel Osorio-Lopes, 32, of Guatemala, pleaded guilty and was sentenced today in U.S. District Court by Judge Lance E. Walker to time served (70 days) for being found in the United States after previously being removed.
According to court records, on May 14, 2019, federal authorities were notified that the defendant had been arrested by the Fairfield, Maine police department. The defendant’s immigration records revealed that on June 8, 2009, he was arrested by U.S. Border Patrol agents in the United States. The defendant admitted being a citizen of Guatemala, was ordered removed by an Immigration Judge on June 30, 2009, and was removed to Guatemala on July 16, 2009. On October 7, 2009, the defendant was arrested again by U.S. Border Patrol agents in the United States. He was issued a Reinstated Removal Order from June 30, 2009 and removed to Guatemala on October 21, 2009.
The case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
Georgia man sentenced for distributing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Spencer Lee Sarver, of Springfield, Georgia, was sentenced today to 84 months incarceration for distributing methamphetamine, United States Attorney Bill Powell announced.
Sarver, age 63, pled guilty to one count of “Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine” in April 2019. Sarver admitted to distributing methamphetamine from January 2017 to September 2018 in Wetzel County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Monroe County, Ohio Sheriff’s Office; and the New Martinsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Gardiner Woman Sentenced to 38 Months for Conspiring to Distribute Heroin and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Heather Downs, 33, of Gardiner, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 38 months in prison and three years of supervised release for conspiring to distribute heroin and cocaine base, commonly known as “crack.” She pled guilty on October 1, 2018.
According to court records, between June 2015 and March 2017, Downs conspired with others to acquire heroin and crack in Rochester, New York and transport it to Central Maine for distribution. The defendant assisted Rochester dealers in distributing the narcotics. She provided transportation, facilitated drug deals, introduced Rochester conspirators to area distributors, and assisted other conspirators in finding residences from which to sell drugs. She also dropped off drugs and picked up proceeds from drug sales.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Former UAW Vice President Norwood Jewell Sentenced to Prison for Conspiring with Fiat Chrysler to Accept Illegal PaymentsRead the Press Release
Norwood Jewell, the former Vice President of the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (“UAW”) and the highest official in the UAW’s Chrysler Department was sentenced to prison today based on his conviction for accepting bribes from high-level executives of Fiat Chrysler Automobiles US LLC (“FCA” or “Fiat Chrysler”), announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Rainer S. Drolshagen, Acting Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.
Norwood Jewell, 61, of Swartz Creek, Michigan was sentenced today to 15 months in prison based on his April 2019 conviction for conspiring with other UAW officials and FCA executives to take illegal payments from Fiat Chrysler. Between 2014 and 2016, Jewell was the highest UAW official responsible for administering and negotiating the collective bargaining agreements on behalf of tens of thousands of UAW members employed by FCA. Jewell served as a member of the UAW’s National Negotiating Committee in 2015 responsible for negotiating the collective bargaining agreement between the UAW and Fiat Chrysler.
During the course of the conspiracy, Jewell accepted over $90,000 in illegal payments from Fiat Chrysler for his own personal benefit, for the benefit of his friends, and for the lavish entertainment of the UAW’s senior leadership. Jewell spent tens of thousands of dollars in Fiat Chrysler money to pay for lavish meals, liquor, and cigars for the personal enjoyment of himself and other senior UAW officials. For example, Jewell caused to be spent $6,912.81 in Fiat Chrysler money for liquor and an extravagant meal at the London Chop House in Detroit Michigan in September 2015 for himself and other senior UAW officials, while Jewell and those same UAW officials were negotiating with Fiat Chrysler executives over a new collective bargaining agreement. Jewell also expended thousands of dollars in Fiat Chrysler money to pay for fancy meals, a three bedroom villa with a private pool and hot tub, and twenty-nine rounds of golf for himself and other senior UAW officials in Palm Springs, California. Jewell used Fiat Chrysler money to acquire over $2,000 in tickets and passes at Disney World and Universal Studios in Orlando, Florida for Jewell’s best friend. Finally, Jewell conducted two lavish parties, each costing over $25,000, at the joint UAW/FCA National Training Center for the members of the UAW’s International Executive Board. The parties included thousands of dollars in Fiat Chrysler money spent on twenty boxes of cigars, ultra-premium liquor, personalized bottles of wine, and women paid to light the cigars of senior UAW leaders.
The Court’s sentencing of Jewell marks the eighth defendant to be sentenced in the ongoing criminal investigation into illegal payoffs to UAW officials. On July 13, 2018, defendant Monica Morgan was sentenced to 18 months in prison and ordered to pay $190,747 in restitution for her tax fraud in connection with the receipt of illegal payments by her husband, the now deceased Holiefield, who had served as the Vice President of the UAW in command of the Chrysler Department. On August 27, 2018, Alphons Iacobelli, FCA’s Vice President for Employee Relations, was sentenced to 66 months in prison and ordered to pay $835,523 in restitution for his involvement in the conspiracy to bribe UAW officials and his submission of false tax returns. On November 7, 2018, defendant Jerome Durden, an FCA executive and Controller of the Joint UAW/FCA National Training Center, was sentenced to 15 months in prison and ordered to pay $8,000 in restitution for his involvement in the conspiracy. Also on November 7, 2018, defendant and FCA executive Michael Brown was sentenced to 12 months in prison and ordered to pay a $10,000 fine for lying to and misleading a federal grand jury in order to cover up FCA’s involvement in the conspiracy. Also on November 7, 2018, defendant Keith Mickens, who served as the UAW’s Director of the National Training Center, was sentenced to 12 months in prison and a $10,000 fine for conspiring to take prohibited payments from FCA. On November 13, 2018, defendant Virdell King, a senior UAW official, was sentenced to two months in prison and a fine of $5,500 for her participation in the conspiracy with FCA and other UAW officials. Finally, on December 18, 2018, defendant Nancy A. Johnson, the second highest official in the UAW’s Chrysler Department, was sentenced to 12 months in prison and ordered to pay a $10,000 fine.
“Jewell’s actions as an elected UAW official who took tens of thousands of dollars in illegal payments from Fiat Chrysler amount to a betrayal of the UAW’s members and their families,” said U.S. Attorney Schneider. “Our office will continue to stand up for the men and women of the union by vigorously prosecuting UAW corruption.”
“Mr. Jewell abused his fiduciary position as the former UAW Vice-President by conspiring to accept FCA funds at the expense of the hard working rank and file members of UAW. We will continue to work with our law enforcement partners to protect the integrity of labor unions and their benefit plans,” said Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.”
“Mr. Jewell’s criminal conduct was part of a broader pattern of dishonesty and self- enrichment among those convicted as a result of this investigation,” said Rainer S. Drolshagen, Acting Special Agent in Charge, Detroit Division of the FBI. “He chose to take almost $100,000 from FCA for his personal gain instead of looking out for the best interests of UAW members. The FBI and its federal partners will remain vigilant in investigating and exposing anyone – regardless of their position - who violates federal labor laws and betrays the trust of the workers they represent."
“Norwood Jewell betrayed the trust of the union membership who rightfully expected him to protect and safeguard their union’s funds and assets. Instead, Jewell chose to use his elected union position to enrich himself, live a lavish lifestyle, and curry favor with the UAW’s leadership,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “Jewell’s conviction leaves no question as to the agency’s commitment to root out corruption within the labor community and seek justice when anyone uses their elected position to put their personal financial gain ahead of the best interests of union members.”
These cases are being prosecuted by Assistant U.S. Attorneys David A. Gardey, Erin S. Shaw, and Adriana Dydell.
Former Postal Employee Pleads Guilty to Role in Federal Marijuana ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A former postal employee who helped deliver marijuana which was mailed from California to Huntington over a period of several years pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Chris Crookshanks, 43, entered a guilty plea to conspiracy to distribute marijuana in federal court in Huntington. Stuart commended the investigative efforts of the United States Postal Service Office of Inspector General, the United States Postal Inspection Service, and the West Virginia State Police – Violent Crime and Drug Task Force West.
“Crookshanks was a letter carrier turned drug dealer,” said United States Attorney Mike Stuart. “He used his position with the U.S. Postal Service to participate in and further a scheme to distribute marijuana – a complete betrayal of the public trust.”
Between 2013 and March of 2018, Crookshanks conspired with James Waylon Molinaro and others to distribute marijuana in the Huntington area. During the conspiracy, Molinaro acquired marijuana in California and arranged for it to be shipped through the United States mail from California to Huntington. Once the parcels containing marijuana arrived in Huntington, Molinaro paid multiple postal employees, including Crookshanks who was a letter carrier with the postal service, to deliver the parcels on their assigned delivery routes or to meet Molinaro at other locations to provide the parcels to him. Crookshanks admitted that he was responsible for the delivery of up to 60 kilograms of marijuana during his participation in the conspiracy.
Molinaro pled guilty on August 1, 2019, to possession with intent to distribute marijuana based on his involvement in the conspiracy. Molinaro also pled guilty to prohibited possession of a firearm by a convicted felon stemming from an unrelated investigation and is scheduled to be sentenced on November 4, 2019.
Crookshanks faces up to 5 years in federal prison when he is sentenced, also on November 4, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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Former Paramedic and Flight Nurse Receives One Year in Prison for Tampering with Ketamine VialsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that United States District Judge Jeffrey U. Beaverstock sentenced defendant Bryan Heath Wester, 43, a resident of Springville, Alabama, to imprisonment for 12 months and one day for tampering with a consumer product. As part of the sentence, the judge ordered that Wester undergo three years of supervised release after finishing his term of imprisonment, pay a $100 mandatory special assessment, receive substance abuse and mental health treatment as directed by the U.S. Probation Office, and pay restitution totaling $511.48 to a patient-victim in the case.
On January 31, 2019, a federal grand jury for the Southern District of Alabama charged Wester with one count of tampering with consumer products in violation of 18 U.S.C. § 1365(a). On April 26, 2019, Wester pleaded guilty to the charge. He faced up to ten years imprisonment.
Wester admitted to the following facts at his plea hearing. He was previously a licensed nurse and a paramedic who worked for an air ambulance service in Demopolis, Alabama. On August 26, 2018, Wester, with reckless disregard for the risk that another person would be placed in danger of death and bodily injury, and under circumstances manifesting extreme indifference to such risk, tampered with ketamine hydrochloride (ketamine), a consumer product that was manufactured outside of Alabama and affected interstate commerce. Wester accessed the controlled substances box inside a locked safe located on board an emergency helicopter, removed ketamine from two vials, and replaced the removed ketamine with saline, knowing that the ketamine was intended to be administered via injection to critically ill and injured patients being transported by helicopter for emergency treatment.On August 27, 2018, a critically injured patient required air transport to Mobile, Alabama. The patient had been run over by a cow and suffered head trauma and loss of consciousness. The on-board nurse attempted to administer ketamine. The vial appeared to have a blue glue on the cap. When the needle was inserted, the vial did not appear to be vacuum sealed. The nurse administered the dose but it did not have the anticipated effect. The nurse then obtained a second vial of ketamine and found that the cap had been glued on.
On August 30, 2018, a special agent with the Food and Drug Administration (FDA)’s Office of Criminal Investigations interviewed Wester, who admitted to removing ketamine from two vials on August 26. According to his statements, around midday on August 26 Wester asked another nurse on duty for the nurse’s set of keys to the locked narcotics on the helicopter, telling the other nurse that he would do the equipment check. The nurse gave Wester the keys. Wester opened the safe and did not lock one side back. The two-key lock system allowed Wester to return later with his own keys and access the safe. Later that evening, Wester went out to the helicopter, withdrew the ketamine from two vials, and replaced it with saline. Wester re-glued the tops of the vials with dermabond. There was a zip-tie securing the plastic narcotics box inside the safe; Wester cut the zip-tie off and replaced it with a new one. Wester also changed the number in the logbook to reflect the new number. The old number ended in a “2.” Wester changed it to a “1.”
At today’s sentencing, District Judge Beaverstock underscored that Wester had abused his position of trust treating vulnerable patients and that Wester was no longer working as a paramedic and flight nurse as a result of the offense conduct.
After sentencing, U.S. Attorney Moore stated, “Health care practitioners take an oath to treat the injured and vulnerable among us. This defendant brazenly violated that oath and has been held accountable for his criminal conduct. I commend the FDA for investigating this important case.”
“FDA is fully committed to the vigorous criminal prosecution of any individual who threatens the safety and security of the U.S. drug supply,” said Justin Fielder, Acting Special Agent in Charge, FDA’s Office of Criminal Investigations’ Miami Field Office. “The sentencing in this case should send a clear signal that this kind of illicit tampering activity will not be tolerated.”
FDA’s Office of Criminal Investigations investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Former Federal Law Enforcement Officer Sentenced to 108 Months for Distribution and Possession of Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – Today, August 5, 2019, Honorable Judge Pedro Delgado sentenced 59-year-old Alfredo Maysonet-Galarza to 108 months of imprisonment to be followed by 10 years of supervised release, for distributing and possessing child pornography material involving prepubescent minors, announced US Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Maysonet-Galarza was a former Customs and Border Protection (CBP) Agent at the time of his arrest in 2016.
The investigation revealed that in May of 2015, the IP address assigned to Alfredo Maysonet-Galarza’s residence shared child pornography. A subsequent search warrant for his residence and electronic devices found more than 1,000 videos of child pornography hidden under several subfolders on Maysonet-Galarza’s computers and hard drives.
“The United States Attorney’s Office will investigate and prosecute those who commit crimes against our children no matter who they are or where they are employed,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “We will continue to work with our federal and local law enforcement partners to identify, investigate, apprehend, and prosecute anyone who sexually exploits children and deprives them of their innocence.”
Special Assistant U.S. Attorney Cristina Caraballo prosecuted the case. The case was investigated by Homeland Security Investigations.
Former Background Investigator for Federal Government Pleads Guilty to Making False StatementsRead the Press Release
WASHINGTON – Jennifer L. Pannocchia, 31, a former background investigator who worked under contract for the U.S. Office of Personnel Management (OPM), pleaded guilty today to making false statements in connection with her falsification of work on background investigations of federal employees and contractors.
U.S. Attorney Jessie K. Liu and Norbert E. Vint, Acting Inspector General for the Office of Personnel Management made the announcement today.
Pannocchia, pled guilty today, in the U.S. District Court for the District of Columbia to one count of making false statements. She will be sentenced by the Honorable Timothy J. Kelly on October 22, 2019. As part of her plea agreement, Pannocchia is required to pay $169, 832.23 in restitution to OPM. She faces a maximum sentence of five years of jail and a $250,000 fine.
According to court papers, Pannocchia was employed by USIS, formerly known as U.S. Investigations Services, Inc., as an investigator under contract to conduct background investigations on behalf of OPM’s Federal Investigative Services, which is now known as the National Background Investigations Bureau (NBIB). NBIB conducts background investigations to determine suitability for federal positions of public trust, including positions that have access to classified information and impact national security. NBIB also conducts investigations for federal employees and contractors seeking security clearances.
Pannocchia admitted that, in conducting these investigations between August 2013 and August 2014, she falsely claimed to have interviewed a source or reviewed a record regarding the subject of the background investigation in more than one dozen investigation reports. For example, court papers state that Pannocchia falsely represented that she had spoken with a source in conducting a background check on an applicant.
She acknowledged at her guilty plea hearing that her false representations required OPM’s Federal Investigative Services to reopen and rework background investigations that were assigned to her during the time period in which she falsified reports. The government estimated the cost of the recovery effort at more than $169,000 to the U.S. government.
NBIB through its workforce of approximately 5,400 filed investigators is responsible for either conducting background investigations for numerous federal agencies and their contracts, on individuals employed by or seeking employment with those agencies or contractors. NBIB conducted more than 2.6 million investigations during the 2018 fiscal year. More than 787,557 of these investigations involved applicants for access or continued access to classified information.
NBIB has a robust integrity assurance program, which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by Pannocchia was detected through the program. This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. Approximately 26 other background investigators and record checkers have been convicted of charges similar to those brought against Pannocchia.
In announcing the plea, U.S. Attorney Liu and Acting Inspector Vint praised the efforts of Special Agents Mark Malogrino and Shantel Robinson, of the OPM Office of the Inspector General, as well as Assistant Special Agent in Charge, Nathaniel Smith, Special Investigations Branch Chief Kevin Cassidy, and Integrity Assurance Executive Program Director Philip Kroop, of OPM-NBIB. They also acknowledge the work of Assistant U.S. Attorney Denise A. Simmonds of the Fraud and Public Corruption Section, who investigated and prosecuted this matter, as well as former Assistant U.S. Attorney Ellen Chubin Epstein, who previously worked on the matter.
Florida Man Sentenced in Manhattan Federal Court to 20 Years in Prison for Mailing 16 Improvised Explosive Devices in Connection with October 2018 Domestic Terrorist AttackRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John C. Demers, Assistant Attorney General for National Security, announced today that CESAR ALTIERI SAYOC was sentenced today to 20 years in prison in connection with his mailing of 16 improvised explosive devices to victims across the country. SAYOC pled guilty to a 65-count Superseding Information on March 21, 2019, before U.S. District Judge Jed S. Rakoff, who also imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Cesar Sayoc assembled and mailed explosive devices to high-ranking officials and former elected leaders to incite fear and to terrorize his victims. Though thankfully no one was hurt by his actions, Sayoc’s domestic terrorism challenged our nation’s cherished tradition of peaceful political discourse. For his wanton disregard of the safety of so many people, Sayoc will now spend 20 years in prison.”
Assistant Attorney General for National Security John C. Demers said: “Time and again, we have seen individuals attempt to express political views and resolve political disagreements through violence. Cesar Sayoc has now been sentenced for acts of domestic terrorism that are repulsive to all Americans who cherish a society built on respectful and non-violent political discourse. Our democracy depends on our debating our strongly held views peacefully and respectfully, and when someone does not, on our prosecuting and punishing those who do not abide by these values. I applaud the efforts of so many in our law enforcement community whose alertness and tirelessness led to the prompt arrest of the defendant before he was able to injure anyone, as well as those whose efforts led to today’s sentence.”
According to the Superseding Information, court filings, and statements made during court proceedings:
In October 2018, SAYOC mailed from Florida 16 padded envelopes, each containing an improvised explosive device (“IED”), to addresses in New York, New Jersey, Washington, D.C., Delaware, Georgia, and California. In alphabetical order, SAYOC’S intended victims (the “Victims”) were former Vice President Joseph Biden, Senator Cory Booker, former CIA Director John Brennan, former Director of National Intelligence James Clapper, former Secretary of State Hillary Clinton, CNN, Robert De Niro, Senator Kamala Harris, former Attorney General Eric Holder, former President Barack Obama, George Soros, Thomas Steyer, and Representative Maxine Walters. Between October 22 and November 2, 2018, the Federal Bureau of Investigation (“FBI”) and the U.S. Postal Service recovered all of the 16 IEDs mailed by SAYOC.
Each of the IEDs mailed by SAYOC contained a mix of explosive powder from fireworks, shards of glass, and pool chemicals, designed to maximize potential injuries, damage, and the burning of his intended Victims’ skin. On the outside of each IED, SAYOC placed photographs of each of the Victims, and sometimes their families and others, with a red “X” over their faces. SAYOC also affixed black flags, similar in appearance to banners used by ISIS and other foreign terrorist organizations, to the outside of the IEDs.
SAYOC had posted incendiary comments about liberal political figures online since at least 2011. In the months prior to mailing the IEDs, SAYOC incited violence against the Victims, conveyed direct threats against them, and researched where and how to carry out his attack. For example, in April 2016, he wrote that former President Barack Obama’s “head need[ed] to be chopped off” and he wished “death” to George Soros and former Attorney General Eric Holder. In April 2017, SAYOC wished “Death” to “all Clintons” and in November 2017 posted “Your days are number[ed] Steyer[].” Beginning in December 2017, SAYOC researched the Victims and their addresses. For example, on December 23, 2017, SAYOC searched for the address of Congresswoman Maxine Waters, and, over the course of the ensuing months, SAYOC repeatedly searched for the “home address” or “address” of several of the Victims, and SAYOC intensified these searches in the days before his attack. Finally, SAYOC researched online how to make a “letter bomb” and watched videos depicting explosions.
The FBI arrested SAYOC in Plantation, Florida, on October 26, 2018—less than five days after the October 22 recovery of the first IED, which SAYOC mailed to Soros in New York.
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In addition to his prison sentence, SAYOC, 57, of Florida, was sentenced to five years of supervised release.
Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department, and the U.S. Postal Inspection Service. Mr. Berman also thanked the U.S. Attorney’s Offices for the Southern District of Florida, the District of Columbia, the District of Delaware, the District of New Jersey, the Central District of California, the Eastern District of California, the Northern District of California, and the Northern District of Georgia for their assistance in the investigation.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Emil J. Bove III, Jane Kim, and Jason A. Richman are in charge of the prosecution, with assistance from Trial Attorney David Cora of the Counterterrorism Section of the Department of Justice’s National Security Division.
Federal Jury Convicts West Columbia Man of 10 Counts of Drug Distribution and Firearms ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that after a three-day trial and two hours of deliberation, a federal jury found Dayquan O’Neal Phillips, age 23, of Lexington County, guilty of 10 counts: four counts of Felon in Possession of a Firearm, three counts of Possession of a Firearm in Furtherance of a Drug Trafficking Crime, two counts of Distribution of Cocaine, and one count of Distribution of Cocaine and Marijuana. United States District Judge J. Michelle Childs of Columbia presided over the trial and will sentence Phillips after receiving and reviewing a sentencing report prepared by the United States Probation Office.
Evidence presented during the trial showed that on four separate occasions between May 10, 2018, and May 25, 2018, Philips sold or planned to sell more than $10,000 worth of firearms and distribution-level amounts of cocaine and marijuana to a confidential informant (CI) working for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case began as a proactive investigation after ATF determined Phillips was selling drugs and firearms together out of Lexington County. ATF captured each of the sales with audio and video surveillance equipment.
On May 10, 2018, Phillips sold 2.55 grams of cocaine, 64 grams of marijuana, and a 9mm pistol. One day later, Phillips sold 27.3 grams of cocaine and a loaded .357 magnum revolver pistol. About one week later, on May 17, Phillips sold 57 grams of cocaine and a loaded .380 Bersa pistol. Finally, on May 25, Phillips planned to sell 57 grams of cocaine and a .380 Jiminez pistol, but moments before the sale, Phillips and the CI planned and executed a fake robbery of the CI, after which Phillips and the CI planned to split the more than $4,600 of ATF-provided funds the CI was carrying.
Based on their monitor of the surveillance equipment, ATF and local law enforcement responded to the fourth sale fearing the CI had been robbed and kidnapped. Agents soon recovered the surveillance equipment on a roadside near Phillips’ residence and uncovered the plans for the fake robbery. The CI was then federally indicted and arrested for theft of government funds. More than $4,000 in U.S. currency was recovered at Phillips’ arrest.
Taken together, Phillips sold or planned to sell 143.5 grams of cocaine, 64 grams of marijuana, and four firearms to the ATF CI. In addition, at the time of his arrest, Phillips was seeking a Mac-10 pistol and an AK-47 to sell to the ATF CI.
At trial, the Government presented video and audio recordings of each sale and the fake robbery; the drugs, firearms, and ammunition Phillips sold or planned to sell; and equipment Phillips used in his drug trafficking operation. The jury also reviewed text messages from Phillips’ phone that corroborated his trade in drugs and firearms. Witnesses included agents from the ATF, the Federal Bureau of Investigation (FBI), Lexington County Sheriff’s Department, and Lexington County Police Department, as well as Phillips and the CI.
Federal law prohibits Phillips from possessing firearms and ammunition based on a prior state felony drug distribution conviction and a state unlawful carrying of a pistol conviction.
For the Felon in Possession of a Firearm convictions, Phillips faces a maximum of 10 years in federal prison, a fine of $250,000, and 3 years of supervised release. For the Distribution of Cocaine convictions, Phillips faces up to 20 years in federal prison. For the Distribution of Marijuana conviction, Phillips faces up to 10 years in federal prison. For the Possession of a Firearm in Furtherance of a Drug Trafficking Crime convictions, taken together, Phillips faces a mandatory minimum term of 15 years in federal prison, consecutive to any additional sentence he receives.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by agents and officers of the ATF, Lexington County Sheriff’s Department, and Batesburg-Leesville Police Department. Assistant United States Attorneys William Camden Lewis and Elliott B. Daniels of the Columbia office prosecuted the case.
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Fairfield Man Sentenced to 4 Years in Prison for Possessing a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — Wesley Ian Groves, 35, of Fairfield, was sentenced today by U.S. District Judge Kimberly J. Mueller, to four years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
Groves pleaded guilty on May 20, 2019. According to court records, in December 2018, police stopped Groves’ car for a traffic violation. When the officer spoke to Groves, Groves said he had a gun underneath the driver’s seat. The officer searched the car and found a loaded pistol under the driver’s seat. The pistol was loaded with one round in the chamber and three rounds in the magazine. A subsequent records check showed that the gun was reported stolen out of Reno, Nevada. Groves cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses.
This case was the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
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.
Ex-Wells Fargo Manager Pleads Guilty to Bank Fraud for Role in Scheme that Laundered $14 Million in Tax Fraud ProceedsRead the Press Release
SANTA ANA, California – A former bank branch manager at Wells Fargo pleaded guilty today to one felony count of bank fraud for using his position to help launder proceeds of a tax fraud and identity theft scheme that used false identities and bogus Republic of Armenia passports to fraudulently obtain $14 million in tax refunds from the Internal Revenue Service.
Hakop Zakaryan, 34, of Glendale, entered a guilty plea this afternoon before United States District Judge Andrew J. Guilford, who scheduled a November 18 sentencing hearing, at which time Zakaryan will face a statutory maximum sentence of 30 years in federal prison.
Zakaryan admitted in his plea agreement that he used his position as bank manager in Glendale to “unfreeze” bank accounts that Wells Fargo had frozen because of suspected fraud. To do so, Zakaryan called the bank’s loss prevention department and provided false information to unfreeze the bank accounts, even though he knew that the schemers were using fraudulent identities, according to the plea agreement. Zakaryan admitted that he assisted the schemers because they paid him thousands of dollars in cash.
For example, in July 2014, Zakaryan called the bank’s loss prevention department and provided false information to unfreeze the bank account, which helped the schemers to withdraw $29,453 in cash from that account. Zakaryan admitted that he unfroze the account in exchange for approximately $3,000 in cash from the schemers.
The underlying Stolen Identity Refund Fraud (SIRF) scheme involved schemers who used false identities and fake Republic of Armenia passports to open hundreds of bank accounts that were used to launder funds fraudulently received from the IRS. A total of 18 defendants, including Zakaryan and Glendale lawyer Arthur S. Charchian, have been charged in that scheme, which involved approximately 7,000 fraudulent tax returns that cumulatively sought about $38 million in refunds. The IRS issued about $14 million in refunds. The fraudulent tax returns were filed and the bank accounts were opened with personal identifying information that had been stolen from thousands of victims.
The federal investigation into the SIRF scheme has resulted in 12 convictions, and the seizure of four residential properties and more than $700,000 from bank accounts. Last month, a civil forfeiture action was commenced against another property worth approximately $1.5 million. One defendant has been extradited from Colombia, four defendants remain fugitives from justice, and two defendants are scheduled to go to trial later this year.
The case against Zakaryan and the defendants in the SIRF scheme is being investigated by IRS Criminal Investigation, the Federal Bureau of Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office. The civil forfeiture action is being pursued by Assistant United States Attorney Brent A. Whittlesey of the Asset Forfeiture Section.
Dunbar Man Sentenced to Federal Prison for Firearm OffenseRead the Press Release
CHARLESTON, W.Va. – A Dunbar man was sentenced today after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Mike Stuart. Kenneth Stover, 43, was sentenced to 34 months in prison for being a felon in possession of firearms. Stuart commended the investigative efforts of the Metropolitan Drug Enforcement Network Team (MDENT).
On August 31, 2017 detectives from MDENT searched Stover’s 18th Street residence in Dunbar as a result of citizen complaints of drug activity. The officers seized two firearms hidden underneath the comforter in Stover’s bedroom. Stover was prohibited from possessing the firearms due to a 2004 felony conviction in Putnam County of conspiracy to operate a clandestine drug laboratory.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Delaware Man Pleads Guilty to Defrauding Federally-Funded Job Placement Program in Wire Fraud CaseRead the Press Release
WILMINGTON, Del. David C. Weiss, United States Attorney for the District of Delaware, announced today that William A. Brown (“Brown”) pled guilty in federal court today to a charge of wire fraud. Brown’s sentencing is scheduled for December 4, 2019 at 9:00 a.m. before the Honorable Leonard P. Stark, United States District Judge for the District of Delaware. Brown faces a maximum penalty of 20 years of imprisonment.
According to court documents and statements made in court, Brown, age 51, of Felton, Delaware, was previously a job placement counselor at Connections Community Support Programs, Inc. (“Connections”). During 2015 and 2016, Connections contracted with the Delaware Division of Vocational Rehabilitation (“DVR”) to help that organization provide employment counseling and job placement services to individuals recovering from drug and alcohol addiction. The federal Workforce Innovation and Opportunity Act provides funding for DVR and sets programmatic goals; DVR receives 80% of its funding through federal government programs.
As part of a multi-year fraud on DVR, Brown submitted falsified client paperwork and created bogus client paystubs so that DVR would pay Connections for completed client services. By submitting over thirty false documents over a two-year period, Brown not only caused the payment of excess funds to Connections, he made Connections’ services appear more successful than they actually were and so improved his own job security.
U.S. Attorney Weiss stated, “The U.S. Attorney’s Office is committed to helping our investigative partners target fraud like that committed by the defendant. The mission of Delaware’s DVR is to enhance employment opportunities for individuals recovering from addiction. By falsifying client paperwork, the defendant improved his own employment position at Connections at the expense of recovering individuals in need of legitimate employment assistance.”
“The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously," said Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Division. "We will continue working with our Delaware law enforcement partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”
Today’s guilty plea shows that Mr. Brown knowingly and willfully abused his position of trust at the expense of America’s taxpayers and the clients he promised to serve – those individuals recovering from addiction” said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. “I’m proud of the work of OIG Special Agents our law enforcement colleagues for their work in this matter and for holding Mr. Brown accountable for his criminal actions.”
“The U.S. Department of Labor Office of Inspector General is committed to investigating allegations of fraud related to the Workforce Innovation and Opportunity Act. We will continue to work with our law enforcement partners to protect the integrity of services designed to strengthen and improve America’s workforce,” said Marc Walker, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
This case is the result of an investigation conducted by the FBI-Baltimore Division’s Wilmington Office, U.S. Department of Education Office of the Inspector General, and the U.S. Department of Labor Office of the Inspector General. The prosecution was handled by Assistant U.S. Attorney Whitney Cloud.
Chilton, WI Resident Andy Huebschmann Pleads Guilty to Exporting Arms to Australia IllegallyRead the Press Release
A Wisconsin man pleaded guilty today to an arms-trafficking crime related to his export of guns to Australia, announced United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin.
Andy Lloyd Huebschmann, 59, was convicted of one count of violating the Arms Export Control Act, Title 22, United States Code, Sections 2778(b)(2) and 2778(c), and Title 22, Code of Federal Regulations, Sections 121.1, 123.1, and 127.1.
According to admissions made in connection with his plea, Huebschmann manufactured numerous firearms and firearm-parts for an Australian criminal and gun-enthusiast. These included rifle kits, which contained the component parts for rifles that could function with either semi-automatic or fully automatic triggers, and 1911 firearm frames that could be assembled into completed pistols. Huebschmann exported those items from the United States to Australia illegally, failing to obtain the required export licenses and shipping guns in containers designed to hide the presence of firearms.
“Today’s conviction reflects our commitment to vigorously prosecute illegal firearms trafficking, wherever it occurs,” stated U.S. Attorney Krueger. “This conviction resulted from outstanding cooperation between the ATF, the Department of Homeland Security, and Australian law enforcement.”
“This defendant’s plea to these serious charges sends an important message that cooperatively law enforcement will investigate and prosecute gun trafficking beyond our borders,” remarked ATF Special Agent in Charge Tim Jones of the Chicago Field Division. “I commend the international partnership of the prosecutors, agents and officers who brought this case to justice.”
Huebschmann faces a maximum term of imprisonment of twenty years, a maximum of three years of supervised release, and a maximum fine of $250,000. His sentencing is set for November 4, 2019, at 1:30 p.m before Judge William Griesbach.
This conviction is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Department of Homeland Security. The case is being prosecuted by Assistant United States Attorney Rebecca Taibleson.
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Charleston Felon Pleads Guilty to Possessing FirearmRead the Press Release
CHARLESTON, W.Va. - A Charleston man, Dana Stevenson, 28, plead guilty today for being a felon in possession of a firearm, announced United States Attorney Mike Stuart.
On August 14, 2017, Charleston Police Department officers were searching for a suspect that was seen driving a stolen vehicle. Officers saw Stevenson walking by the Kanawha River. As officers approached, Stevenson threw a firearm into the river. The Charleston Police Department Dive Team later recovered a Glock .40 caliber pistol from the river. Stevenson was prohibited from possessing a firearm under federal law because of a 2014 felony malicious wounding conviction in Kanawha County, West Virginia.
Stevenson faces up to 10 years in prison when he is sentenced on November 4, 2019.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department conducted the investigation. United States District Judge Joseph R. Goodwin presided over the plea hearing. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
Follow us on Twitter: SDWVNews
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California Man Sentenced for Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A California man was sentenced today to 10 months for possession with the intent to distribute marijuana, announced United States Attorney Mike Stuart. Gerardo Delgadillo, 22, previously admitted that on October 17, 2018, he had flown to Tri-State Airport in Kenova, West Virginia from California. He admitted to possessing approximately 30 pounds of marijuana in his suitcase. He admitted he intended to sell the marijuana.
“Thirty pounds of pot in a suitcase on a plane,” said United States Attorney Mike Stuart. “Marijuana is and remains illegal. We actively prosecute marijuana distribution regardless of whether it’s brought into West Virginia by plane, train, bus, boat, car, or UFO.”
The Violent Crime Drug Task Force West conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Boston-Area Restaurant Owner Convicted of Tax FraudRead the Press Release
BOSTON – A former owner of restaurants in Boston and Chelsea was convicted today by a federal jury in Boston of tax fraud.
Burhan Ud Din, 50, of Watertown, was convicted following a week-long jury trial of six counts of willful failure to collect and pay over tax, which requires employers to withhold and pay to the IRS certain payroll taxes. Din was acquitted of charges of procuring citizenship contrary to law. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Nov. 7, 2019.
Din defrauded the government and avoided paying payroll taxes owed by a Crown Fried Chicken located in Chelsea and a Kennedy Fried Chicken in Boston in 2010. Federal law requires employers to withhold payroll taxes and pay the IRS. To avoid paying taxes, repeatedly, Din falsely reported the number of employees and wages paid to the IRS. Din provided the tax preparer for both stores with false information about the restaurants’ payroll, causing the tax preparer to file false tax returns.
The charging statute provides for a sentence of up to five years in prison, a maximum of three years of supervised release a fine of up to $250,000, restitution, and payment of the costs of prosecution. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Jason Molina, Special Agent in Charge of Homeland Security Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorneys Brian A. Pérez‑Daple and Scott L. Garland of Lelling’s Criminal Division are prosecuting the case.
Berlin Man Pleads Guilty to Possession of a Prohibited Object in PrisonRead the Press Release
CONCORD - Markis Dickerson, 24, of Berlin, pleaded guilty in federal court to possession of a prohibited object in prison, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on March 5, 2019, Dickerson was an inmate at FCI-Berlin, New Hampshire. Officers found a knife-like homemade weapon in Dickerson's possession. The weapon was approximately 5 inches in length. Inmates are prohibited from possessing weapons in prison.
Dickerson is scheduled to be sentenced on November 21, 2019.
“Armed inmates present an immediate threat to prison staff and the entire prison population,” said U.S. Attorney Murray. “In order to maintain the safety of all parties at FCI-Berlin, we will continue to prosecute inmates who possess weapons and other unauthorized items.”
This matter was investigated by the Bureau of Prisons - FCI-Berlin. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Berkeley County man sentenced for cocaine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Tion Rector Jackson, of Martinsburg, West Virginia, was sentenced today to 51 months incarceration for cocaine distribution, United States Attorney Bill Powell announced.
Jackson, age 29, pled guilty to one count of “Distribution of Cocaine Base” in April 2019. Jackson admitted to selling cocaine base in November 2017 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and The West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Arkansas Man Pleads Guilty to Mailing Threatening Letters to the United States Federal Courthouse in Memphis, TennesseeRead the Press Release
Memphis, TN – Patrick Hayden, 32, of Charleston, Arkansas, pled guilty to sending threatening letters to U.S. District Court Judges and other federal personnel through the mail, in violation of 18 U.S.C. § 876(c). D. Michael Dunavant, United States Attorney announced the guilty plea today.
According to the information presented in court, on March 6, 2018, at approximately 2:05 p.m., the United States Clerk’s Office for the Western District of Tennessee received a bomb and violence threat in the mail at 167 North Main Street, Memphis, Tennessee. The envelope, postmarked March 2, 2018, was forwarded from inmate Arron Lewis, of Marianna, Arkansas.
The envelope contained several letters from four Arkansas state inmates and a note stating "federal employees there is a bomb in the building! 901 confederates #savethestatues." The individual letters were addressed to "judges and prosecutors" and "Federal stooges in black skirts" and contained various threats to injure/kill potential victims and their families. One of the letters from Hayden contained similar threats and called for "total Aryan resurgent’s (sic)."
Law enforcement officials met with the Arkansas Department of Corrections at the East Arkansas Regional Unit about the threat mailing by Hayden and the other inmates and verified that Hayden was serving a sentence for a theft conviction along with inmate Lewis and others.
On April 10, 2018, agents interviewed Hayden at the prison who admitted to participating in the writing/mailing of the subject letter and said when he is released from prison, "I will do this" referring to bombing the Memphis Federal Building. Other direct statements from Hayden: "I am a willingly expendable pawn" and, "their life is meaningless" regarding the victims he threatened to kill. Hayden also stated, "Memphis is the place I choose, so I am now dedicated…" and, "I believe this in my heart." Hayden claims to be a member of White Aryan Resistance (WAR). Hayden stated the group chose to mail the letter to Memphis based on the demographics of the city. Hayden believes he is capable of carrying out such a plot and made statements regarding idolizing Timothy McVeigh since an early age. During the interview, Hayden also demonstrated an in-depth knowledge of bomb making materials and using cell phones as remote detonators. Forensic examinations revealed Hayden’s fingerprints on the letter and matched his known handwriting samples.
U.S. Attorney D. Michael Dunavant said: "We reject and denounce all forms of radical violent extremism, including white supremacy and any other threats posed by racism, bigotry, and hatred. This office, along with our federal law enforcement partners, are vigilant to protect the Federal Judiciary and prevent attacks on any critical infrastructure sites in West Tennessee, including the Federal Courthouse in Memphis. We take all threats seriously, and will seek to impose all applicable enhancements and the maximum available penalty under the federal sentencing guidelines in order to punish and incapacitate this dangerous extremist for as long as possible.We are pleased that the defendant has been held accountable for this disturbing threat of violence fueled by racial hatred, and we commend the quick and thorough response of the FBI Joint Terrorism Task Force."
Sentencing is set for November 8, 2019, before U.S. District Court Judge Sheryl H. Lipman. Hayden faces up to 10 years of imprisonment along with 3 years supervised release and a $250,000 fine. There is no parole in the federal prison system.
This case was investigated by the FBI’s Joint Terrorism Task Force, U.S. Marshals Service and the United States Postal Inspection Service.
Assistant United States Attorney Stephen Hall is prosecuting this case on behalf of the government.
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Albert Golant Sentenced for Wire Fraud and Tax Fraud ConspiracyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on August 5, 2019, the Honorable Pamela Pepper sentenced Albert Golant, aka Alex Golant, (age: 38) of Wales, Wisconsin to 126 months’ imprisonment followed by three years of supervised release for wire fraud and conspiracy to commit tax fraud. The Court deferred the imposition of a restitution order at this time.
Over the course of several years and while he was on federal supervised release for a prior fraud conviction, Golant orchestrated a sophisticated Ponzi scheme through which he obtained over $30 million from at least 40 different victims. Golant was in the business of purchasing luxury vehicles in the United States and then selling them at a substantial profit to foreign buyers overseas, typically in China. Golant engaged in a long-term fraud scheme in which Golant obtained the funds from third parties by representing that the funds would be used to purchase specific luxury vehicles. The third parties included vehicle brokers, investors, and lenders. In some instances, Golant never purchased the specific vehicle and did not return the funds. In other instances, Golant purported to sell the same luxury vehicle to multiple clients at the same time. In still other instances, Golant obtained funds from investors, lenders, or clients for the purchase of luxury vehicles he knew had already been sold and exported. To carry out the scheme, Golant made numerous misrepresentations, including preparing multiple fraudulent financing applications to obtain financing for vehicles he knew had previously been exported.
Through the scheme, Golant obtained at least $30 million from at least 40 different victims. He used the funds to support his lavish lifestyle and maintain his wealthy image—including flying across the country in private jets to engage in high-stakes gambling at exclusive casinos, and living in a 10,000 square foot home that was rented for $7,500 a month. Golant also used the funds to pay off gambling debts and to pay professional gamblers to gamble on his behalf. In addition, Golant used the funds to attempt to sustain his luxury vehicle export businesses by using client funds to pay off prior loans, and using one client’s funds to satisfy obligations due to his other clients. In the end, Golant’s scheme left at least 22 victims with a net loss of approximately $17.7 million and the United States with a tax loss of approximately $5.4 million.
“Fueled by greed, Golant carried out an outrageous fraud scheme that harmed victims around the globe,” said U.S. Attorney Krueger. “The United States is fully committed to prosecuting financial crimes. This case proves the point: The IRS-Criminal Investigation Division showed extraordinary tenacity in cutting through Golant’s web of lies and bringing him to justice.”
“Today’s sentencing of Albert Golant again emphasizes the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to commit tax fraud and wire fraud,” said Kathy Enstrom, IRS Criminal Investigation Special Agent in Charge, Chicago Field Office. “Honest taxpayers have been reassured today that no one is above the law—especially when the integrity of tax administration is at stake.”
This matter was investigated by the Internal Revenue Service-Criminal Investigations and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Laura S. Kwaterski.
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16 Members of a Violent Gang from Detroit’s Westside Have Been Convicted for Their Roles in a Racketeering ConspiracyRead the Press Release
Sixteen members of the Playboy Gangster Crips, a violent street gang on Detroit’s Westside, have pleaded guilty or were found guilty by a jury, to Racketeer Influenced Corrupt Organization (RICO) conspiracy and other federal offenses in regards to their role in the gang, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge James Dier, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Chief James Craig, Detroit Police Department.
Fourteen members of the gang were charged in the fall of 2017 with racketeering conspiracy after an ATF investigation prompted by the murder of two young children in 2016. Two additional defendants were added in a superseding indictment in January 2019. Ultimately, thirteen defendants pleaded guilty, and three elected to go to trial. The three-week trial was conducted in March before United States District Judge Stephen J. Murphy, III. The jury convicted three members of the Playboy Gangster Crips with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, discharging a firearm during and in relation to the assault, and failure to appear.
According to court records and the evidence at trial, the gang operated in northwest Detroit, specifically the area in and around Seven Mile Road between Lahser and Evergreen. Initially, the gang earned money through armed robberies and carjackings, but it focused on drug trafficking and burglaries after several gang members were arrested in 2012 to avoid attention from police. Playboy Gangster Crip members took over a gas station within their territory on Seven Mile Road, which they called the “gang station,” to sell narcotics. Gang members worked in shifts to sell their drugs, but they abandoned the location after police officers from the Eighth Precinct arrested seven different members of the gang fourteen times in 2014 and 2015. Instead, gang members moved to various vacant houses in their territory, including two on the 19000 block of Trinity Street, to conduct many of their illegal narcotics sales. The gang stored handguns and assault rifles in the abandoned houses and in nearby fields to protect their drug sales and their illegal proceeds. Gang members also promoted their drug sales and their firepower on social media, but disputes with rivals still lead to multiple shootings and the arson of one of their drug houses.
In addition to drug trafficking, Playboy Gangster Crips committed several hundred burglaries throughout the westside of Detroit and neighboring communities to earn money for the gang. Gang members would either throw a brick through the window or knock on the door of the targeted house and if no one responded, they would break into the house and steal money, jewelry, and expensive electronics to pawn.
The days surrounding Christmas 2016 illustrate the gang’s violent methods. After a drug customer invited two members of the gang to his house to obtain money to pay for his drugs, the gang members pistol-whipped him and ransacked his home. Later that night, four members of the gang tried to break into a convenience store in Redford, but when they were unsuccessful, they rammed a stolen van through the front of a Boost Mobile Store in an attempt to steal its contents.
Pleaded guilty were:
- Jvon Clements, a/k/a “Toon,” 25, of Detroit, to RICO conspiracy; possession of a firearm in furtherance of a drug trafficking offense; and felon in possession of ammunition. Sentenced to 222 months in federal prison;
- Dawon Taylor, a/k/a “J-9,” 21, of Detroit, to RICO conspiracy;
- Ron Benson Jr., a/k/a “Duke,” 23, of Detroit, to RICO conspiracy. Sentenced to 144 months in federal prison;
- Devante Crockett, a/k/a “TBK,” 22, of Detroit, to RICO conspiracy;
- Davon Moultrie, a/k/a “Blue,” 21, of Detroit to RICO conspiracy. Sentenced to 60 months in federal prison;
- Deondre Casey, a/k/a “Trouble,” of Detroit, to RICO conspiracy. Sentenced to 63 months in federal prison.
- Andre Tinsley, a/k/a “Danger,” 23, of Detroit, to RICO conspiracy. Sentenced to 114 months in federal prison.
- Recharl Boynton, a/k/a “Bear,” “Cee,” 26, of Detroit, to RICO conspiracy. Sentenced to 84 months in federal prison.
- Anthony Marshall, a/k/a “Hitman,” 20, of Detroit, to RICO conspiracy. Sentenced to 70 months in federal prison.
- Nathaniel Brown, a/k/a “Nino,” 23, of Detroit, to RICO conspiracy. Sentenced to 54 months in federal prison;
- Darryl Grizzard, a/k/a “Deezy,” 27, of Detroit, to RICO conspiracy and possession of a controlled substance with intent to distribute. Sentenced to 63 months in federal prison;
- Leslie Winters, a/k/a “Menace”, 21, of Detroit, to RICO conspiracy; and
- Daevon Lowe, a/k/a “Lil’ Dre,” ”Low,” 21, of Detroit to RICO conspiracy
The remaining four defendants face guidelines sentencing ranges between 97 and 262 months in prison.
Found guilty at trial were:
- Winston Hill, a/k/a “Shady Blue,” 23, of Sterling Heights, to RICO conspiracy and failure to appear. Awaiting sentencing.
- Deshaun Tisdale, a/k/a “Havoc,” 23, of Detroit, to RICO conspiracy; assault with a dangerous weapon in aid of racketeering; and using, carrying, and discharging a firearm during and in relation to a crime of violence. Sentenced to 252 months in federal prison; and
- Dangelo Davis, a/k/a “Black,” 27, of Detroit, to RICO conspiracy. Sentenced to 144 months in federal prison.
The defendants convicted at trial face guidelines sentencing ranges between 168 and 413 months in prison.
In addition to the 16 gang members convicted in this case, an associate of the gang, Larry Taylor, 24, of Detroit, has been charged with false declarations before a grand jury or court and obstruction of justice. According to court records, Taylor was convicted of carjacking in March 2016 and told federal agents and a grand jury that Playboy Gangster Crip member Deshaun Tisdale committed the carjacking with him while brandishing a gun. Taylor testified at trial against Tisdale but claimed his accomplice was someone other than Tisdale. If convicted of the offenses, Taylor faces a maximum sentence of life in prison.
“Violent street gangs such as the Playboy Gangster Crips threaten the safety of everyone,” said U.S. Attorney Schneider. “Today’s sentences are an example of how our office is aggressively prosecuting gang members who have wreaked havoc in Detroit.”
“The Playboy Gangster Crips reign of terror on Detroit’s Westside is over,” said ATF Special Agent in Charge James Deir. “We will not tolerate senseless violence in our neighborhoods and with help from our law enforcement partners, ATF will continue to disrupt and dismantle dangerous street gangs and remove them from the community.”
“Ensuring the safety and security of our residents in the city of Detroit is our number one priority. With the collaborative efforts of our federal law enforcement partners, we will continue our efforts to target and dismantle gangs, as well as, other violent offenders that pose a threat to the safety and wellbeing of our City,” said Chief James Craig.
This case was investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as officers of the Detroit Police Department. The case was prosecuted by Assistant United States Attorneys Jeanine Brunson, Shane Cralle and Michael Heesters.
"Froggy Robber" Pleads Guilty to Armed Bank Robbery ChargesRead the Press Release
According to court documents, between November 2017 and April 2018, Sanchez-Lopez stole more than $87,000 from the following six banks in Oregon and Southwest Washington:
- On November 27, 2017, $9,710 was stolen from the Albina Community Bank located at 2002 NE Martin Luther King Jr. Boulevard in Portland.
- On December 27, 2017, $26,000 was stolen from the Wells Fargo Bank located at 8699 SW Main Street in Wilsonville, Oregon.
- On January 11, 2018, $11,580.99 was stolen from the Wells Fargo Bank located at 6785 Beaverton Hillsdale Highway in Beaverton, Oregon.
- On January 30, 2018, $6,720 was stolen from the U.S. Bank located at 52313 Columbia River Highway in Scappoose, Oregon.
- On February 12, 2018, $15,400 was stolen from the Wells Fargo Bank located at 1800 Main Street in Vancouver, Washington.
- On April 30, 2018, 33,357 was stolen from the Wells Fargo Bank located at 7200 NE Butler Street in Hillsboro, Oregon.
In all six robberies, Sanchez-Lopez jumped over the bank teller counter and threatened bank employees with a knife.
Each bank robbery charge carries a maximum sentence of 25 years in prison, a $250,000 fine and three years’ supervised release. Sanchez-Lopez will be sentenced on November 5, 2019 before U.S. District Court Judge Michael W. Mosman.
As a non-citizen and lawful permanent resident, Sanchez-Lopez’s guilty plea will subject him to removal from the U.S. by immigration authorities.
This case was investigated by the FBI and is being prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
3 August 2019
Statement from Attorney General William P. Barr on Today's Shooting in El Paso, TexasRead the Press Release
Attorney General William P. Barr issued the following statement:
"The Justice Department joins in mourning with the people of El Paso, Texas. Those who commit such atrocities should be held accountable swiftly and to the fullest extent the law allows."
2 August 2019
Worcester Man Pleads Guilty to Social Security Fraud and Identity TheftRead the Press Release
BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to Social Security fraud and aggravated identity theft.
Jose Lopez Rosado, 51, pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Oct. 31, 2019. Lopez Rosado was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
According to court documents, the defendant escaped from prison in Puerto Rico in 1994 while serving a 40-year sentence for second degree murder. He is currently in state custody on unrelated charges. His true identity was not known until he was arrested in July 2018.
Dubbed “Double Trouble,” the July 2018 investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On Feb. 9, 2016, Lopez Rosado applied for a duplicate Massachusetts driver’s license using the name and Social Security number of another U.S. citizen. Based on the application, Lopez Rosado was issued a duplicate driver’s license in the name of the other U.S. citizen. Lopez Rosado also used that name and Social Security number to receive MassHealth benefits.
The charge of false representation of a Social Security number provides for a sentence of up to 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, one year of supervised release and a fine of $250,000. 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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Winter Park Man Pleads Guilty to Fraud and Money LaunderingRead the Press Release
Orlando, Florida – Bryan L. Brewer (44, Winter Park) has pleaded guilty to wire fraud, bank fraud, and money laundering. He faces a maximum penalty of 20 years in federal prison for the wire fraud count, up to 30 years’ imprisonment for the bank fraud count, and up to 10 years’ imprisonment for the money laundering count. Brewer has also agreed to pay restitution to his victims and a money judgment has been entered for more than $9 million.
According to court documents, Brewer engaged in two fraud schemes that resulted in him receiving more than $9 million. In one scheme, Brewer solicited an individual to invest in a company that manufactured paddleboards by the name of USBoardco (also known as WatersEdge). As part of the scheme, Brewer sent the victim copies of bank statements, tax returns, and other financial documents that had been falsified to inflate the sales, profits, income, and bank account balance for the company. Relying upon those and other misrepresentations, the victim invested over $1 million.
The second scheme related to real estate located in Seminole County. In 2012, an investor loaned more than $4 million to assist Brewer in the purchase of the property. In return, the investor obtained a mortgage on the property. A couple of years later, Brewer defrauded a bank into lending his companies $7.75 million that involved Brewer forging documents and using a fake email account that he had created for his investor. This scheme consisted of two parts. First, Brewer forged a letter that transferred the mortgage from his investor to an entity that Brewer controlled. Second, Brewer forged an estoppel letter from his investor that falsely promised that the investor would release his mortgage for $3.5 million. Brewer used a fake email account that he had established for the investor to send the forged estoppel letter and to pretend to be the investor in communications with the bank. Relying upon the forged letters and his other misrepresentations, the bank loaned one of Brewer’s companies $7.75 million.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Waterloo Man Sentenced to More Than Three Years in Federal Prison for Carrying a Weapon after Domestic Violence ConvictionRead the Press Release
A man who unlawfully possessed a firearm after committing a crime of domestic violence was sentenced on July 30, 2019, to more than 3 years in federal prison.
Sunni Askari Newell, age 33, from Waterloo, Iowa, received the prison term after a guilty plea to one count of Possession of a Firearm by a Person Convicted of Domestic Violence. The domestic violence conviction was entered on June 11, 2009, in Milwaukee, Wisconsin.
Documents at sentencing showed that, in the early morning hours of June 4, 2017, Newell saw officers approaching two people involved in a verbal dispute. Newell walked over to one of the people involved in the dispute, appeared to take something from that person, and tried to leave the scene. Officers later found a loaded handgun in the defendant’s pant leg. In September 2018, Dazarris Shemeek Wilkerson received a 33 month imprisonment term for possessing the same firearm on the same date as Newell. Wilkerson was charged with Possession of a Firearm by a Felon.
Newell was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Newell was sentenced to an imprisonment term of 42 months and 1 day. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. The defendant’s sentence runs consecutively to the sentences imposed in state court for two additional offenses the defendant committed after the June 4, 2017 incident.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Waterloo Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2070. The case file number for Dazarris Wilkerson’s case is 17-CR-2082.
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Warrensburg Man Sentenced to 17 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Warrensburg, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Stacy A. Lyman, 40, of Warrensburg, was sentenced by U.S. Chief District Judge Greg Kays to 17 years and one month in federal prison without parole. Lyman was sentenced as an armed career criminal due to his prior felony convictions.
On June 8, 2018, Lyman pleaded guilty to his role in the drug-trafficking conspiracy and to being a felon in possession of a firearm. Lyman admitted that he participated in a conspiracy to distribute methamphetamine that lasted approximately from August 2014 to March 2016.
Co-defendant Davita Ann Kelly, 39, of Warrensburg, was sentenced on Oct. 9, 2018, to 18 years and nine months in federal prison without parole. Co-defendant Matthew Waylon Newman, 34, of Warrensburg, was sentenced on May 31, 2018, to 17 years and seven months in federal prison without parole.
According to court documents, Lyman was Kelly’s source for methamphetamine. Kelly then distributed methamphetamine to others, including an undercover law enforcement officer. Lyman distributed approximately 373 grams of methamphetamine between Dec. 7, 2015, and Jan. 19, 2016.
The investigation began after law enforcement officers executed a search warrant at Kelly’s residence and seized methamphetamine, hydromorphone pills, marijuana, heroin and drug paraphernalia. Warrensburg police officers also executed a search warrant at a storage facility rented by Kelly and seized several firearms from the unit, including a .38-caliber revolver, a 9mm pistol and two .22-caliber rifles.
On April 29, 2016, officers executed a search warrant at Lyman’s residence and seized an H. Koon, Inc., .410-gauge shotgun and 21.61 grams of methamphetamine hidden in a can in his bedroom. Officers also seized $7,000 that was found inside the pocket of a coat in Lyman’s Pontiac G6.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lyman has been previously convicted of six felony drug offenses and two misdemeanor drug-related offenses in four separate cases. He also has a prior felony conviction for burglary and a misdemeanor conviction for disorderly conduct. Each time he was on supervision for a felony offense, his probation/parole was revoked as a result, in part, of the commission of a new felony offense. In each instance, he had multiple supervision violations (and, in all but one case, multiple conduct violations while in custody).
This case was prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Johnson County, Mo., Sheriff’s Department and the Warrensburg, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Vicksburg Man Pleads Guilty to Health Care Fraud, Money Laundering, Aggravated Identity Theft, Mail Fraud, and Contempt of CourtRead the Press Release
Jackson, Miss. – Laron Evans, 34, of Vicksburg, pled guilty yesterday before U.S. District Court Judge Henry T. Wingate to conspiring to commit wire fraud, mail fraud and health care fraud; money laundering; aggravated identity theft; mail fraud; and contempt of court, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
"We in the U.S. Attorney’s Office will remain steadfast in bringing these swindlers to justice, while the public must remain vigilant to such schemes that seek to defraud us of our identities and our money. I commend the FBI agents and our federal prosecutors for doggedly pursuing these fraudsters and putting an end to their criminal enterprise," said U.S. Attorney Hurst.
"Health care fraud is a systemic issue nationwide, costing our country tens of billions of dollars each year," said SAC Sutphin. "The FBI will continue to pursue those that prey on our health care system and investigate these types of schemes."
Laron Evans conspired with co-defendant Travious Quinshad Jackson and others to execute a health care fraud scheme involving Health Savings Accounts ("HSA’s"), using interstate wire communications and the U.S. postal system. The scheme used interstate wire communication via the Internet to send Personal Identification Information (PII) of 57 actual people, pretending that they were employees of an imaginary company, to a third party administrator company located in Maryland.
The third party administrator company used the stolen PII to create individualized HSA accounts, and corresponding debit cards, for all 57 employee names, and sent debit cards for each employee name in the mail to Vicksburg addresses. The third party administrator advanced and credited funds to each HSA account created for the supposed employees, which money could then be spent through the debit card at designated retail stores. The third party administrator funded approximately $317,000 to these HSA accounts.
Evans, assisted by Jackson and others, spent down the debit cards in various stores throughout April and May 2018, buying gift cards, debit cards, and other consumer goods to deplete the HSA accounts. The third party administrator in the meantime had learned that there was no money in the bank account that Evans had identified for his fake company, when the company sought reimbursement for the HSA accounts.
On July 10, 2018, using proceeds gained from the health care fraud scheme, Evans bought a 2018 Chevrolet Suburban SUV in Forrest County, Mississippi, for $44,335 in cash plus a trade-in vehicle. The Chevy Suburban was titled in Mississippi in Evans’s name and remained under that title through and beyond February 2019.
On February 13, 2019, Evans appeared before U.S. Magistrate Judge Linda Anderson for his initial appearance and arraignment in this case. Judge Anderson entered an Order permitting Evans to be released on bond pending trial, subject to conditions forbidding travel without prior permission of the Court before leaving the Southern District of Mississippi. Between April 16 and April 20, 2019, Evans travelled outside the State of Mississippi without permission of the Court. Also during April and May 2018, while outside the State of Mississippi and on his return to Vicksburg, Evans continued to execute health care fraud schemes using the Internet and the U.S. Mails.
Evans falsely represented himself as leader and manager of an Orlando, Florida, business, seeking to establish health care benefits including HSA accounts for its purported employees. Evans submitted over the Internet to a third party administrator company located in Minnesota, bank account information for drawing reimbursement, plus employee information for creation of HSA debit cards. The Minnesota company sent some of the debit cards, during the period April 16-25, 2019, to Evans at his Vicksburg home address through the U.S. Mail. Evans had requested that the Minnesota administrator fund those HSA accounts up to $91,000.
Evans will be sentenced on January 31, 2020, by Judge Wingate. He faces maximum penalties of 20 years in prison as to the conspiracy charge, 10 years in prison as to the money laundering charge, a mandatory consecutive 2 year sentence for the aggravated identity theft, a possible maximum sentence of 30 years for the mail fraud charge, and up to 5 years in prison for the contempt of court offense. Evans also faces maximum fines of $250,000.00 on each charge.
Co-defendant Travious Quinshad Jackson has already pled guilty and will be sentenced by Judge Wingate on September 16, 2019.
The case was investigated by the Federal Bureau of Investigation with assistance from the Social Security Office of Investigator General, Vicksburg Police Department and Warren County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Theodore M. Cooperstein.
United States Attorney Josh J. Minkler to take part in the 36th Annual National Night OutRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler will join law enforcement, community leaders and residents at the National Night Out celebration. The event will take place on Tuesday, August 6, 2019.
National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Thousands of communities nationwide will participate in neighborhood block parties, festivals, cookouts, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anti-crime efforts. Events such as these help to strengthen neighborhood spirit, police-community partnerships, and demonstrate a shared commitment for strong and safe communities. The event has occurred every first Tuesday of August for the past 36 years and has proven effective in enhancing relationships between law enforcement and members of the community.
The U.S. Attorney’s Office works year round to help ensure safety in neighborhoods through a program called Project Safe Neighborhoods (PSN), and this event is a great night to showcase the program. This program typically works to increase awareness about drug prevention, gun violence, and anti-crime efforts.
“National Night Out is a significant event where we can engage with the community in which we serve and educate the young and old about the importance of our work,” said Minkler. “This year we are aiming to be more involved with the public during the event to show our commitment and dedication throughout the year.”
Last year, the Indianapolis Metropolitan Police Department (IMPD) and U.S. Attorney Minkler, found great success in utilizing National Night Out as an opportunity to cultivate relationships between community members and law enforcement.
This year, both law enforcement and the U.S. Attorney’s Office intend to strengthen that relationship through activities, conversation and fellowship to grow mutual trust and appreciation.
U.S. Attorney’s Office and Federal Law Enforcement Partners Announce the Indictment of 18 Individuals of the “Fast Cash” Criminal Enterprise for Federal Drug and Bank Fraud ConspiraciesRead the Press Release
Memphis, TN – On July 23, 2019, a federal grand jury indicted 18 individuals for federal drug charges. U.S. Attorney D. Michael Dunavant announced the indictment today.
The indictment charges that the defendants conspired to commit bank fraud in violation of Title 18, United States Code, Section 1349, and conspiracy to distribute controlled substances in violation of Title 21, United States Code, Section 846. The indictment also requests the forfeiture of a total of $1,243,000 in criminal proceeds from the defendants.
The defendants charged in the indictment and are currently in custody are:
Nashon Baldwin, 24, Los Angeles, California
Carterrio Bogan, 27, Memphis, Tennessee
Terrell Boyland, 30, Memphis, Tennessee
Quinton Chaffin, 28, Memphis, Tennessee
Cortavious Culp, 22, Memphis, Tennessee
Deandre Evans, 20, Memphis, Tennessee
Allon Gates, 23, Memphis, Tennessee
Marcell Glass, 26, Memphis, Tennessee
Jimmy Gause, 25, Memphis, Tennessee
Aaron Henderson, 42, Memphis, Tennessee
Marticus Hill, 29, Memphis, Tennessee
Ledarious Hope, 25, Memphis, Tennessee
Nickelle Jackson, 24, Memphis, Tennessee
Marquice Lester, 24, Memphis, Tennessee
Cordney Smith, 23, Memphis, Tennessee
Marcolm Watson, 26, Memphis, Tennessee
Carlos Whitten, Jr., 23, Memphis, Tennessee
Karlyss Williams, 25, Memphis, Tennessee
The indictment charges that all 18 defendants were members or associates of Fast Cash Boyz Entertainment. According to the indictment, Fast Cash Boyz Entertainment was a music label and, over time, the members "began exploiting the brand by engaging in criminal activity such as bank fraud and drug trafficking to earn "FAST CASH" for the enterprise."
Count 1 of the indictment charges that Carterrio Bogan, Cortavious Culp, Allon Gates, Marcel Glass, Marquice Lester, Karlyss Williams, Cordney Smith, Marcolm Watson, Carlos Whitten, Jr., Quinton Chaffin, Deandre Evens, and Nickell Jackson all conspired to defraud Regions Bank in order to obtain "monies, funds and assets, and credits." According to the indictment, The defendants would deposit, or cause to be deposited, worthless checks into accounts at Regions Bank. After making these deposits, they would withdraw cash from these accounts before Regions and the other banks involved discovered the checks deposited by the defendants were worthless. The conspiracy operated from November, 2017 until July, 2019. As a result of the defendants’ illegal acts, Regions lost a total of $243,000.
Count 2 of the indictment charges that Nashon Baldwin, Carterrio Bogan, Terrell Boyland, Jimmy Gause, Marcel Glass, Aaron Henderson, Marticus Hill, Ledarious Hope, and Cordney Smith conspired to possess with intent to distribute and distribute more than 100 kilograms of marijuana. The indictment charges that the drug conspiracy operated from February, 2016 until October 31, 2018.
The indictment also contains a forfeiture count that seeks the forfeiture of the $243,000 in criminal proceeds generated by the bank fraud conspiracy and at least $1,000,000 in proceeds generated by the drug conspiracy.
"Drug dealing and fraud schemes that distribute poison into our streets and steal money from financial institutions must be stopped. We thank and commend the outstanding investigative work and collaboration by our federal and local law enforcement partners to dismantle the "Fast Cash" criminal enterprise, and our office looks forward to the prosecution of this case that will hold these defendants accountable."
"No matter where you bank, we encourage everyone to be on guard and report it immediately if someone asks for private account information or for access to your account," said Don White, head of Corporate Security for Regions Bank. "At Regions, we work around the clock to detect and prevent fraud. When we see suspicious activity, our investigators work hand-in-hand with law enforcement to get to the bottom of the issue. Today’s announcement shows the result of that partnership. We appreciate the work of each agency involved in bringing this matter to justice."
If convicted of the bank fraud conspiracy, each charged defendant faces a possible sentence of up to 30 years imprisonment and a $1,000,000 fine. If convicted of the drug conspiracy, each charged defendant faces a mandatory minimum sentence of 5 years imprisonment and a possible fine of up to $5,000,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Postal Inspection Service, United States Secret Service, Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Marshals Service, Memphis Police Department’s Violent Crime Unit and Multi-Agency Gang Unit, and the Shelby County Sheriff’s Office investigated this case.
Assistant U.S. Attorneys Michelle Kimbril-Parks and Gregory Allen are prosecuting this case on behalf of the government.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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U.S. Attorney's Office Reaches ADA Settlement with East Lyme RestaurantRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with Il Pomod’Oro Restaurant in East Lyme to resolve allegations that the facility did not comply with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves ADA complaints filed by individuals with disabilities alleging that Il Pomod’Oro was not accessible for individuals with physical disabilities. The restaurant is in the process of making the changes required by the settlement agreement, including providing accessible parking spaces, ensuring that the restaurant has an accessible entrance with compliant handrails and thresholds, providing accessible dining tables throughout the restaurant, ensuring equivalent service for individuals in the restaurant’s bar area, ensuring access to the restaurant’s patio area, and designing and constructing an accessible restroom. Il Pomod’Oro will continue to make improvements over the next 18 months.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants and bars, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
“The Americans with Disabilities Act is an important part of the federal law enforcement responsibilities of the U.S. Attorney’s Office, and we are committed to enforcing the ADA to ensure that individuals with disabilities are able to access and enjoy our state’s restaurants,” said U.S. Attorney Durham. “We are pleased that Il Pomod’Oro has agreed to make changes to its facility in order to comply with the requirements of the ADA.”
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.