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Thursday 13 June 2019
Southwest Houston Man Convicted of Sex Trafficking Adult Women by ForceRead the Press Release
HOUSTON – A 28-year old resident of Katy has admitted he conspired to compel three adult women to engage in sex trafficking by means of force and violence in Houston and other locations across the country, announced U.S. Attorney Ryan K. Patrick.
Marquis Holmes aka “Goldie” pleaded guilty to one count of conspiracy to engage in sex trafficking by means of force, fraud and coercion; two counts of transportation to engage in prostitution; and two counts of enticing and coercing another to travel in interstate commerce for prostitution.
From June 2015 until his arrest in March 2018, Holmes scoured social media websites to recruit women, often under false pretenses, to work as prostitutes for him. Under threat of violence and actual violence, Holmes prostituted two of these women in Houston and Austin; New Orleans, Louisiana; Memphis, Tennessee; Pittsburgh, Pennsylvania; Mississippi; Alabama; South Carolina and other locations across the country. Holmes coerced the women to pose for pictures used in online advertisements for sex and to engage in commercial sex acts for money. Holmes collected all the money the women earned.
On March 30, 2018, authorities arrested Holmes, at which time a third victim was rescued along with her infant child. After repeatedly physically assaulting the woman, Holmes forced her to solicit commercial sex dates along the 1.3 mile stretch of Bissonnet St., commonly referred to as “The Track.” If she did not meet the monetary quota Holmes had set, he beat her and deprived her of food.
Holmes has been and will remain in custody pending his sentencing, set for Sept. 19, 2019. At that time, he faces up to life in prison.
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation.
HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Coast Guard and sheriff’s offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sebastian Edwards and Carrie Wirsing prosecuted this case.
South Florida Pill Mill Owner Sentenced to Prison for Role in $2.2 Million Medicare Fraud SchemeRead the Press Release
The owner of a pain clinic and a pharmacy in South Florida was sentenced today to 78 months in prison followed by three years of supervised release for his role in a $2.2 million Medicare fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Scott Novick, 51, of Hollywood, Florida, was sentenced by U.S. District Judge K. Michael Moore of the Southern District of Florida, who also ordered Novick to forfeit approximately $1.4 million. Novick had previously pleaded guilty to one count of conspiracy to commit health care fraud. As part of his plea agreement, Novick agreed to liquidate several financial accounts worth approximately $1,329,886, the proceeds of which were ordered at sentencing to be paid back to Medicare.
According to admissions made as part of his plea agreement, Novick was the owner of American Pain Management, a pain clinic that had locations in Broward and Palm Beach County. Novick also owned Pacific Pharmacy of Miami, Florida where the majority of the prescriptions written by American Pain Management were filled. Novick admitted to submitting approximately $1.2 million in fraudulent claims to Medicare for pain management services purportedly rendered by a doctor who worked at American Pain Management that Novick knew were fraudulently submitted and not eligible for reimbursement. Novick also admitted that in 2010, in response to legislation passed by the Florida Legislature prohibiting pain clinics from dispensing controlled substances directly from the clinic and other concerns about federal anti-kickback laws, he disguised his ownership of Pacific Pharmacy, falsely naming a relative so that he could continue dispensing controlled substances. Novick admitted that he knew the doctor at American Pain Management was prescribing controlled substances at inappropriately high levels and that the drugs had not been prescribed for a legitimate medical purpose or in the usual course of professional practice. In fact, Novick knew the doctor would sign prescriptions for patients without conducting a visit with the patient. Novick admitted he and his clinics received approximately $1.4 million in compensation for his participation in the conspiracy and submitted approximately $1.2 million in claims to Medicare for the medical services rendered by the doctor that were fraudulently submitted and not eligible for reimbursement. Pacific Pharmacy was also paid in excess of $1 million for the drugs, which were not eligible for reimbursement.
The FBI and HHS-OIG investigated the case which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorney Timothy P. Loper and Acting Assistant Chief Jacob Foster of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
South Bend, Indiana Woman Sentenced to 72 Months in PrisonRead the Press Release
SOUTH BEND – Jaronna Groves, age 22, of South Bend, Indiana, was sentenced before United States District Court Judge Robert L. Miller, Jr. upon her plea of guilty to possession of a firearm in furtherance of a drug trafficking crime and possessing with intent to distribute fentanyl, announced U.S. Attorney Kirsch.
Groves was sentenced to 72 months in prison followed by 2 years of supervised release.
During several months in 2018, Groves participated in the distribution of drugs in South Bend. Several of her acquaintances distributed heroin, fentanyl, and other drugs. Sometimes they used their own phones to do so, while other times they shared a common drug phone that customers would call. On numerous occasions during June and July, 2018, she personally conducted drug sales to customers who had contacted the common drug phone. Groves obtained a house on South Illinois Street in May, 2018, to allow her acquaintances to meet and discuss drug distribution. She allowed them to store drugs, guns and cash in her house. On July 13, 2018, investigators searched her house and found over 100 grams of fentanyl in her bedroom, along with cash, a money counter, scales, and 2 loaded handguns.
This case was investigated by ATF with assistance from the South Bend Police Department. The case was handled by Assistant U.S. Attorneys Joel R. Gabrielse and Molly E. Donnelly.
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South Bend Man Convicted Following 4-Day Jury TrialRead the Press Release
SOUTH BEND – Donyea Fowler, age 34, of South Bend, Indiana was convicted of 6 counts of Hobbs Act Robbery and 7 counts of federal firearm offenses (being a felon in possession of a firearm and 6 counts for using a firearm in relation to crimes of violence (each of the six (6) Hobbs Act robberies), announced U.S. Attorney Kirsch.
U.S. District Court Judge Jon E. DeGuilio, presided over this 4-day trial.
According to documents in this case, in late 2017 through early 2018, Fowler robbed six convenience stores in the South Bend area while wearing a mask and brandishing a firearm. During the trial, evidence was presented to include videos of the masked robberies, a video of Fowler while unmasked cashing in a winning lottery ticket three minutes after one of the robberies, videos of the getaway car with a missing light, some phone location evidence, and DNA linking him to a gun that was found. Mr. Fowler has four prior felony convictions.
Sentencing of Mr. Fowler has been set for September 25, 2019 at 1:30 PM.
The case was investigated by the FBI with the assistance of the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Joel R. Gabrielse.
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Smuggler Pleads Guilty to Transporting Illegals Across Country in Exchange for CashRead the Press Release
ATHENS – A Honduran national who admitted to transporting people entering the United States illegally from South America to other areas of the country pleaded guilty to his crimes in federal court Monday, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Carlos Aguilera-Espinal, 28, of Honduras, pleaded guilty to one count of Transporting an Illegal Alien and one count of Illegal Reentry in front of U.S. District Court Judge C. Ashley Royal on June 10, 2019. On the charge of Transporting an Illegal Alien, Mr. Aguilera-Espinal faces a maximum sentence of ten years imprisonment, a maximum fine of $250,000, or both, and a term of supervised release of three years. On the charge of Illegal Reentry, he faces a maximum sentence of two years in prison, a maximum fine of $250,000, or both, and a term of supervised release of one year. entencing is scheduled for September 11, 2019 in Athens, Georgia.
Mr. Aguilera-Espinal was pulled over on April 3, 2019 by the Franklin County Sheriff’s Office (FCSO) on I-85 due to a lane change violation and improper window tint. Deputies discovered a total of thirteen people, a number including Mr. Aguilera-Espinal, inside the SUV being driven by the defendant. Special agents with the Atlanta office of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) determined that all thirteen people were illegally present in the United States. One of the occupants was a sixteen year old male juvenile, who was unaccompanied by a guardian or relative. Mr. Aguilera-Espinal and four passengers had been previously removed from the United States by court order and did not have permission to return. Mr. Aguilera-Espinal admitted in his plea agreement that he transported illegal aliens in the United States to further their unlawful presence and for his own private financial gain.
“Smuggling human beings for cash is a dangerous business. Cramming thirteen people, including a minor, in an automobile built for half that many occupants and driving that vehicle on I-85 only compounds the dangers. Our office will continue to enforce laws that prohibit transporting illegal aliens in the United States,” said Charlie Peeler, the U.S. Attorney. “I want to thank the Franklin County Sheriff’s Office and HSI for their excellent work in this matter.”
This case was investigated by the Franklin County Sheriff’s Office and HSI, Atlanta. Assistant U.S. Attorney Amy Helmick prosecuted this case for the Government.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Shreveport man sentenced to 10 years in prison for drug and firearms offensesRead the Press Release
SHREVEPORT, La. – A Shreveport man was sentenced on Wednesday to serve time in federal prison for being a felon in possession of a firearm and possession of a firearm in furtherance of drug trafficking, announced U.S. Attorney David C. Joseph.
Chief U.S. District Judge S. Maurice Hicks Jr. sentenced Bryan Thomas Robinson, 38, to 10 years in prison to be followed by three years of supervised release. Robinson pleaded guilty to these charges on February 20, 2019.
According to information presented in court, a Shreveport police officer conducted a traffic stop on Robinson’s vehicle on October 28, 2017, for no tag information on the vehicle. The officer smelled marijuana and conducted a search of the vehicle where he found a cooler in the trunk of the car containing a glass bong, 49 grams of marijuana in a blue bag, pills, a digital scale, additional packaging baggies and a Hi Point .45-caliber semi-automatic handgun. Robinson admitted to possessing the firearm telling officers that his neighborhood was dangerous and he needed the gun for protection.
At the time of his arrest, Robinson was a felon who was convicted on February 25, 2013, for possession with intent to distribute marijuana and possession with intent to distribute cocaine. Under federal law, a felon is not allowed to possess a firearm or ammunition.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Seneca Falls Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Matthew A. Urquhart, 32, of Seneca Falls, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of child pornography. The charge carries a maximum penalty of 20 years in prison, a lifetime term of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that FBI Special Agents identified the defendant actively trading child pornography from a trailer residence in Seneca Falls. Subsequently, agents, with assistance from the Seneca Falls Police Department and Seneca County Sheriff’s Office, searched two residences that Urquhart occupied during the period in question. Digital items belonging to Urquhart were seized. A forensic analysis determined that the defendant possessed multiple images and videos of child pornography, including images that depicted the sexual abuse of prepubescent minors.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Seneca Falls Police Department, under the direction of Chief Stuart W. Peenstra, and the Seneca County Sheriff’s Office, under the direction of Sheriff W. Timothy Luce.
Sentencing is scheduled for September 18, 2019, before Judge Wolford.
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Search Warrants Executed in Grady, Thomas CountiesRead the Press Release
MACON – Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia, announced today that multiple federal search warrants were executed in Grady and Thomas Counties on June 12, 2019 in a joint law enforcement operation involving DEA, GBI, Grady County SO, Thomas County SO, Thomas Vice/Narcotics Squad and Cairo PD.
Warrants were executed at:
- 159 Alison Drive, Cairo, Grady County, Georgia;
- 274 Temple Terrance Circle, Cairo, Grady County, Georgia;
- 628 Marshall Street, Thomasville, Thomas County, Georgia;
- 2848 Bark Avenue, Cairo, Grady County, Georgia;
- 1094 Woodland Road, Cairo, Grady County, Georgia;
- 91 13th Avenue, SW, Cairo, Grady County, Georgia.
As a result of the execution of these warrants, methamphetamine, marijuana, approximately $20,000 in US currency, firearms and illegally possessed prescription medications were recovered. Tobias Sanders was arrested in Thomas County and remains in the Thomas County Jail. Orry Bell, Joseph Jones, and Kentrail Brown were arrested in Grady County and remain in the Grady County Jail. Those arrested are presumed innocent unless and until convicted beyond a reasonable doubt in a court of law.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Se le condena a un hombre de Luisiana por conspirar a vulnerar los derechos federales a la vivienda de una mujer discapacitadaRead the Press Release
Jody Lambert, de 24 años, fue condenado hoy en el Distrito Oriental de Luisiana a 120 meses de cárcel por conspirar con otros miembros de su familia a impedir que D.P., una mujer con discapacidades cognitivas, ejerciera su derecho a alquilar y ocupar una vivienda sin ser víctima de lesiones, intimidación e interferencia por motivos de sus discapacidades cognitivas.
«Lambert y sus coconspiradores conspiraron a privarle a una víctima vulnerable de un lugar seguro para vivir, obligándola a vivir afuera en una jaula encerrada, por motivos de su discapacidad», declaró el Fiscal General Auxiliar Eric Dreiband. «Esta conducta desgraciada constituye un delito de odio, y la lucha contra los delitos de odio seguirá siendo una de las prioridades principales del Departamento de Justicia. La condena de hoy refleja nuestro compromiso a buscar justicia para las víctimas».
«Una de las metas primordiales de nuestro país es la protección de los derechos civiles de todas las personas, sobre todo los de los más vulnerables», afirmó Peter G. Strasser, el Fiscal Federal para el Distrito Oriental de Luisiana. «La condena del Sr. Lambert envía un mensaje claro que se hará rendir cuentas a cualquier persona que deniegue a un ciudadano sus derechos».
«La condena hoy de Jody Lambert, por su trato inhumano de un miembro de su familia, sirve como claro recordatorio que la justicia prevalecerá», comentó Eric Rommal, el Agente Especial Encargado del Buró de Investigaciones Federales (FBI, por sus siglas en inglés) en Nueva Orleans. «Como la agencia federal principal encargada de hacer cumplir las leyes federales de derechos civiles, la Oficina Local del FBI en Nueva Orleans seguirá investigando agresivamente todo alegato creíble de vulneraciones de derechos civiles en el Estado de Luisiana».
El 18 de octubre del 2018, Lambert se declaró culpable ante un cargo de conspiración contra los derechos civiles. En la audiencia en la que se declaró culpable, Lambert admitió que durante algunos meses antes del 30 de junio del 2016, en Amite, Luisiana, él conspiró con otros parientes suyos para obligar a D.P. a vivir dentro de una jaula encerrada en su patio por motivo de sus discapacidades cognitivas y porque no querían que cohabitara con ellos en su hogar móvil. Lambert admitió que él y otros miembros de su familia encerraban a D.P. en la jaula en las noches con una cadena de metal y un candado, y que él y otros miembros de su familia habían colocado ramas y lonas por encima de la jaula para ocultarla de la vista. Más aún, Lambert admitió que, estando encerrada en la jaula, a D.P. se le requería usar un cubo de cinco galones como inodoro. Lambert también admitió que antes de obligar a D.P. a vivir en la jaula, él y su familia habían forzado a D.P. a vivir en su patio en una tienda de campaña y en una caseta cerradas con llave. Lambert admitió que durante todo el tiempo que D.P. vivía con la familia en Amite, Luisiana, Lambert y sus coconspiradores la sometían a violencia física rutinaria y amenazas de violencia física con el fin de intimidar a D.P. a aceptar estas condiciones de vida.
Este caso fue investigado por la Oficina Local del FBI en Nueva Orleans, Luisiana, la Oficina del Sheriff de la Parroquia de Tangipahoa y la Fiscalía de Distrito de la Parroquia de Tangipahoa. El caso está siendo enjuiciado por los Abogados de Litigios Risa Berkower y Nicholas Reddick de la División de Derechos Civiles del Departamento de Justicia, la Fiscal Federal Auxiliar Julia Evans, de la Fiscalía Federal para el Distrito Oriental de Luisiana, y la Fiscalía de Distrito de la Parroquia de Tangipahoa.
Sarcoxie Man Indicted for Illegal Firearms, Silencer, Auto-Conversion SwitchesRead the Press Release
SPRINGFIELD, Mo. – A Sarcoxie, Missouri man who was earlier charged with illegally possessing firearms and ammunition has been indicted by a federal grand jury on additional charges of illegally possessing an unregistered silencer and selector switches to convert semi-automatic firearms into machine guns.
Leng Lee, 35, was charged in a three-count superseding indictment returned by a federal grand jury in Springfield, Mo., on Wednesday, June 12. The superseding indictment replaces an indictment returned on May 7, which charged Lee with being a felon in possession of firearms and ammunition.
The federal indictment charges Lee with one count of illegally possessing a device designed to convert a semi-automatic Glock-type pistol into an automatic machine gun, and one count of illegally possessing an unregistered silencer. The indictment also contains the original count of being a felon in possession of firearms and ammunition. The indictment alleges that Lee was in possession of a Glock 10mm pistol, two Glock 9mm pistols, and numerous rounds of ammunition.
According to court documents, law enforcement officers participated in the controlled delivery of an international mail package from China addressed to Lee at his residence on April 23, 2019. The parcel contained seven parts (selector switches) that are used to convert a Glock semi-automatic pistol to fire in full-automatic mode.
Officers executed a search warrant at Lee’s residence and found numerous firearms, ammunition, firearm suppressors, suspected methamphetamine, marijuana, suspected stolen farm equipment, and a large amount of cash. According to court documents, Lee told officers that a couple of the firearms were given to him by his deceased father, but the others were purchased by him at gun shows or during hand-to-hand transactions. None of the firearms were purchased from a licensed firearms dealer. Lee also told officers that he had 10-15 past deliveries of the selector switches, and that he was able to convert and successfully fire a Glock pistol as a fully automatic firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lee has two prior felony convictions for burglary, and prior felony convictions for vandalism, criminal conspiracy, grand theft, and being a felon in possession of a firearm.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Newton, Mo., Sheriff’s Department.
SDTX to be Part of New Transnational Elder Fraud Strike ForceRead the Press Release
HOUSTON - Attorney General William P. Barr has announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Department of Justice’s Consumer Protection Branch, U.S. Attorneys’ Offices for six federal districts, FBI, U.S. Postal Inspection Service and other organizations. The Southern District of Texas will be one of the offices part of that group.
The Strike Force will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing and tech-support fraud schemes.
“Elder Fraud comes in many variations – through the mail, online and even in person,” said U.S. Attorney Patrick. “By focusing on these cases, we hope to send a message from the low level hucksters to the sophisticated international organizations that when we find you, we will prosecute you.”
The Transnational Elder Fraud Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with the SDTX and five other U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia and Eastern District of New York), FBI special agents, Postal Inspectors and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office. Assistant U.S. Attorney Quincy Ollison is the coordinator for the SDTX.
“Fraud against the elderly is on the rise,” said Barr. “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”
“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”
“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”
Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.
The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect and financial exploitation.
The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least 3 million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.
Ruskin Armed Career Criminal Sentenced to 15 Years for Illegally Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Guillermo Ramirez, Jr. (46, Ruskin) to 15 years in federal prison for knowingly possessing a firearm as a convicted felon. Ramirez had pleaded guilty on March 27, 2019.
According to the plea agreement and evidence presented at the sentencing hearing, on December 3, 2016, Ramirez arranged to sell a firearm to an undercover detective from the Hillsborough County Sheriff’s Office. When Ramirez and the detective met, Ramirez pulled a Jennings 9mm semi-automatic pistol from his waistband and sold it to the detective. Ramirez then offered to sell the detective more guns.
At the time of this sale, Ramirez had multiple prior felonies, including convictions for aggravated assault, delivery of cocaine, and possession of cocaine with intent to sell. Therefore, he was – and is – prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime-reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Roxbury Man Convicted of Identity Theft and Stealing Public FundsRead the Press Release
BOSTON – A Roxbury man identified as John Doe was convicted yesterday by a federal jury in Boston of using another person’s identity for over 40 years.
John Doe, whose true identity is unknown, was convicted of aggravated identity theft; using a passport obtained through false statements; stealing public funds; and misuse of a Social Security number. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 18, 2019.
At some point prior to 1975, Doe, who is suspected to be a Dominican national, obtained the birth certificate of a U.S. citizen from Puerto Rico. Initially, Doe did not have the U.S. citizen’s Social Security number, so he created or obtained a counterfeit Social Security card bearing the U.S. citizen’s name with a non-matching Social Security number that was assigned to a different person from Puerto Rico. From 1975 to 1994, Doe used the counterfeit Social Security card to find employment, first in New York, and later in Boston.
In 1994, Doe received a letter from the IRS notifying him that the name on his Social Security card did not match the Social Security number he was using and that he needed to go to a local Social Security Administration (SSA) office to resolve the discrepancy. Doe took the letter to an SSA office in Roxbury, where he deceived an SSA employee into believing that he was the person whose identity he had stolen and that he had forgotten his true Social Security number. Doe gave the employee the name, date of birth, place of birth, and parents’ names on the U.S. citizen’s birth certificate without disclosing that the birth certificate was not his own. The employee entered this biographical information into the SSA computer, which returned a match for the U.S. citizen’s true Social Security number. Through this deception, Doe was able to obtain a Social Security card bearing the U.S. citizen’s true name and true Social Security number.
Doe used this unlawfully obtained Social Security card for the next 18 years, until the U.S. citizen died in Puerto Rico in 2012. At that point SSA learned that someone in Massachusetts was using a deceased person’s Social Security number and began a fraud investigation.
Doe used the stolen identity to work in Boston, obtain and travel on a U.S. passport, apply for unemployment benefits, and obtain public housing benefits for himself and his family.
The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000. The charges of using a passport obtained through false statements, and stealing public funds, each provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office, made the announcement today. Assistant U.S. Attorneys Christine Wichers and David Tobin of Lelling’s Major Crimes Unit are prosecuting the case.
Riverside Man Found Guilty of Federal Charges Stemming from Bogus Debt-Elimination Services that Cost Victims $1.6 MillionRead the Press Release
LOS ANGELES – An Inland Empire man who operated a series of companies that purported to provide debt-relief, primarily to distressed homeowners, has been found guilty of defrauding victims who paid thousands of dollars after attending seminars that promoted a “Free and Clear” program pitched by the defendant and his salespeople.
James Ignatius Diamond, who went by the name “Jim Diamond,” 69, of Riverside, was found guilty of 30 fraud charges late Wednesday in United States District Court.
“Between 2010 and 2013, [Diamond] sold fraudulent debt-elimination services to desperate victims thrown into financial crisis by the Great Recession,” according to court documents. Diamond owned and operated a number of businesses – including the Riverside-based Transmitting Assets, Inc., Operation Safe Haven, Buyer Beware, and Unlimited Logistics Corporation – that he claimed could wipe out the debts of homeowners behind on their mortgage payments, as well as other debts.
The evidence presented to the federal jury over the course of six days showed that the “Diamond Home Reclamation Method” was pitched to solicit victims with false promises that Diamond’s methods would entirely eliminate their mortgages and allow people to own their homes “free and clear.”
Relying on the false representations, victims paid substantial fees, including an upfront fee – typically $3,500, payable only in cash, money orders or cashier’s checks – periodic program fees, and inflated notary fees. After paying the upfront fee, victims were required to sign and notarize documents, which they were instructed to send to financial institutions and government agencies – documents prosecutors described in court documents as “fraudulent and nonsensical.”
When victims of the scheme in 2011 began receiving mortgage default notices and lost their homes, Diamond launched another debt-elimination scam called the “EFT Program,” under which Diamond claimed to be able to eliminate victims’ debt with “EFT” checks. This scam required victims to pay Diamond 13 percent of the debt that was to be eliminated.
Diamond knew that his methods did nothing to discharge debts. In fact, when FBI agents searched his business in 2013, they recovered hundreds of “rejection letters” from financial institutions indicating that documents submitted as part of the debt-elimination programs did nothing to help the victims. Diamond’s email accounts contained numerous complaints and refund requests from victims – all of which he ignored.
Investigators have identified more than 500 victims. The victims’ total losses exceeded $1.6 million. Diamond spent victims’ money on luxury hotels, jewelry, alcohol and living expenses.
After deliberating for about three hours, the jury convicted Diamond of 15 counts of mail fraud affecting a financial institution and 15 counts of wire fraud affecting a financial institution. Defendant was immediately remanded into custody upon conviction, with United States District Judge R. Gary Klausner citing defendant’s extremist anti-government views as a concern. As a result of the conviction, Diamond will face a statutory maximum sentence of 30 years for each of the 30 counts.
Diamond is scheduled to be sentenced by Judge Klausner on September 9.
Previously in this case, a Diamond associate – Tricia Mae Gruber, 43, of Riverside – pleaded guilty to conspiracy to commit mail fraud and admitted helping operate the scheme.
This case was investigated by the Federal Bureau of Investigation.
This matter is being prosecuted by Assistant United States Attorneys Marina A. Torres and Kevin B. Reidy of the General Crimes Section.
Raleigh Man Convicted of Human TraffickingRead the Press Release
NEW BERN - United States Attorney Robert J. Higdon, Jr. announced that today, BRANDON MARQUIS JENNINGS, 29, of Raleigh, North Carolina, was convicted in federal court following a four-day trial before United States District Judge Louise W. Flanagan. The jury found JENNINGS guilty of four counts of sex trafficking, one count of production of child pornography, one count of transporting a minor in interstate commerce for a sexual offense, three counts of coercing and enticing victims to travel interstate for prostitution, three counts of transporting victims interstate for prostitution, and one count of operating an interstate prostitution enterprise.
From 2013 until December 2016, JENNINGS operated a prostitution ring involving numerous women and children. Jennings typically enticed his victims to work for him with promises of love and money. After they joined him, JENNINGS frequently ruthlessly manipulated, threatened, and violently assaulted his victims to ensure they would continue prostituting for him. Then he took all their money. Some victims were minors, and he enticed one of those minors to send an image of child pornography to him.
JENNINGS faces a sentence of not less than 15 years and up to life in prison, a fine up to $3,250,000, and up to life supervised release at sentencing.
Investigation of this case was conducted by the Department of Homeland Security – Homeland Security Investigations and the Raleigh Police Department. Assistant United States Attorneys Erin Blondel and Melissa Kessler handled the prosecution of this case for the government.
R.I. Businessman Admits Selling Misbranded DrugsRead the Press Release
PROVIDENCE – A Lincoln, R.I., wholesale businessman pleaded guilty in federal court in Providence today to selling more than 500,000 capsules of a misbranded drug that contain the commonly known active ingredient in Viagra, purporting that the drug was an all-natural herbal supplement designed for male sexual enhancement.
Jeffrey Guzman, 34, of Providence, operator of Tony’s Enterprise, LLC, in Lincoln, today pleaded guilty to fraudulent introduction of a misbranded drug. Guzman admitted to distributing to various retail and wholesale businesses throughout New England and New York a product called Golden Night, which falsely was represented to be an all-natural herbal supplement designed for male sexual enhancement. In fact, U.S. Food and Drug Administration (FDA) laboratory tests demonstrated Golden Night contained the prescription drug sildenafil, commonly known as the active ingredient in Viagra.
Guzman’s guilty plea is announced by United States Attorney Aaron L. Weisman and Jeffrey Ebersole, Special Agent in Charge of the FDA, Office of Criminal Investigations.
According to information presented in court, in 2015, an FDA inspection of a wholesaler in New York revealed quantities of Golden Night for sale at convenience stores and gas stations in the New York area. The FDA subsequently issued a public notification advising consumers not to purchase Golden Night. The notice explained that FDA analysis confirmed the presence of sildenafil, the active ingredient in Viagra and that these ingredients were not declared on the label. The notice warned the undeclared ingredients may lower blood pressure to dangerous levels and other potential health consequences.
An undercover FDA agent emailed the notice to Guzman and asked whether Golden Night contained Viagra. Guzman falsely replied that Golden Night did not contain Viagra, and claimed the product was safe to take. Guzman subsequently sent the FDA notice to his supplier in China and asked what to do about the FDA notice. The supplier in China advised changing the brand name of the product and continuing to sell it. Guzman admitted continuing to sell Golden Night as usual. An FDA agent subsequently purchased Golden Night which again tested positive for sildenafil.
A court-authorized search of Tony’s Enterprise in June 2018, revealed additional inventory of Golden Night, packaging and marketing materials, and various business records. In addition, email search warrants revealed numerous instances in which Guzman falsely answered customer inquiries about Golden Night by stating it was all-natural and did not contain Viagra or require FDA approval.
Laboratory tests of Golden Night also detected the presence of oxytetracycline HCI, also known as Terramycin, a discontinued prescription antibiotic that was used to treat specific diseases in humans. It is currently used in livestock feed to prevent diseases and infections in cattle and poultry.
Guzman admitted that between 2013 and 2018, Tony’s Enterprise sold more than 500,000 Golden Night capsules totaling over $1 million in sales.
Guzman is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on September 9, 2019. Fraudulent introduction of a misbranded drug is punishable by statutory penalties of up to 3 years imprisonment and a $250,000 fine.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Philadelphia Man Indicted for Rash of Cell Phone Store RobberiesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Malcolm Xavier Taylor, 26, of Philadelphia, Pennsylvania, was indicted by a grand jury with four counts of robbery which interferes with interstate commerce, and use and carrying of a firearm during and in relation to a crime of violence.
The defendant is alleged to have committed a string of robberies of cell phone stores in Philadelphia, robbing four different stores over a three-week time period in November and December 2017. During all four incidents, he brandished a firearm and threatened to shoot store employees. In total, the defendant stole over a hundred cell phones and cash.
“The complete disregard for others’ safety that Taylor is accused of is appalling,” said U.S. Attorney McSwain. “The employees of these stores were simply doing their jobs, while the defendant terrorized them so that he could make a buck off of stolen cell phones. The streets are safer now that Taylor will have to answer these charges.”
“ATF’s primary mission is to combat violent crime and this investigation is a clear statement of our resolve to accomplish this mission,” said Special Agent in Charge Donald Robinson. “This indictment of Malcolm Taylor sends a clear message that ATF and its law enforcement partners will not allow violent criminals to continue victimizing our communities and neighborhoods”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a maximum possible sentence of life imprisonment and a mandatory minimum of five years’ imprisonment.
The case was investigated by the Bureau for Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Indicted for Armed Robbery of Firstrust Bank in Bryn Mawr, PARead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Justin O’Brien, 32, of Philadelphia, was indicted by a federal grand jury with armed bank robbery. The indictment charges that on March 12, 2019, O’Brien knowingly and unlawfully, by force, violence and intimidation, took approximately $1,260 from an employee of Firstrust Bank, located at 725 Lancaster Avenue, Bryn Mawr, Pennsylvania. The indictment also charges that the defendant knowingly and unlawfully assaulted another person by the use of a dangerous weapon: a facsimile firearm (pellet gun).
“As alleged in the indictment, the defendant’s conduct in this case was reckless and stupid,” said U.S. Attorney McSwain. “Not only did O’Brien rob a bank, which is a serious offense, but he threatened bank employees with what looked like a real gun – causing them to fear for their lives. He is now facing serious federal charges and prison time over a relatively small sum of money. To all would-be robbers: let this serve as a deterrent – it’s not worth it.”
“Imagine looking down the barrel of a gun pointed at you by some stranger demanding money,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “It's not something armed robbery victims soon forget. As alleged, Justin O'Brien barged into a bank with a weapon, terrified employees, and fled with cash. Anyone willing to commit a violent crime like that needs to answer for it.”
If convicted, the defendant faces a maximum possible sentence of 25 years’ imprisonment; up to five years’ supervised release; a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Lower Merion Township Police Department, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio Man Sentenced to 15 Years in Prison for Trying to Join ISISRead the Press Release
A Dayton, Ohio man was sentenced today in U.S. District Court to 180 months in prison and 25 years of supervised release for attempting, and conspiring, to join the Islamic State of Iraq and al-Sham (ISIS). Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio and Special Agent in Charge Todd A. Wickerham of the FBI’s Cincinnati Division made the announcement.
“Alebbini was determined to travel overseas for the purpose of joining ISIS and engaging in violence in support of the foreign terrorist organization,” said Assistant Attorney General Demers. “Notwithstanding pleas from others close to him, Alebbini declared that he is a terrorist and decided to move forward with his plan to join ISIS. Thanks to the great work of the agents, analysts, and prosecutors who are assigned to this case, Alebbini’s plans were thwarted and he is being held accountable for his crimes.”
“Alebbini was prepared to kill soldiers and citizens of the United States, the Kingdom of Jordan, and coalition partners fighting against ISIS. Indeed, Alebbini was prepared to kill any person who did not accept ISIS as the Islamic Caliphate,” said U.S. Attorney Glassman. “Prison is the right place for him.”
Laith Waleed Alebbini, 28, was convicted following a bench trial in November and December 2018 before U.S. District Judge Walter H. Rice.
Alebbini attempted, and conspired, to provide material support and resources to ISIS in the form of personnel, namely himself.
Alebbini, a citizen of Jordan and a U.S. legal permanent resident, was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint.
Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court. The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding pass in hand for a flight to Amnan, Jordan, with a connection in Istanbul, Turkey. The evidence also showed that Alebbini intended to forego the flight to Jordan and instead make his way from Turkey into Syria to join ISIS.
According to court documents and testimony, on April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “The Islamic State is fighting a survival war . . . I, cousin, want to go to be an inghimasi soldier.”
As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation.
On April 26, 2017, about one hour before Alebbini arrived at the Cincinnati/Kentucky International Airport, several relatives pleaded with Alebbini not to join ISIS. Alebbini responded in three separate back-to-back text messages: “Do you think I am a criminal” “I am a terrorist” “I am mujahid.”
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the Joint Terrorism Task Force, which includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.
First Assistant Vipal J. Patel and Assistant U.S. Attorney Dominick S. Gerace of the Southern District of Ohio and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted this case.
New Jersey Tax Prep Duo Plead Guilty to Fraud, Filing False Returns for Themselves and ClientsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Omar Faruq, 37, of Pennsauken, New Jersey, and co-conspirator Omar Ali, 36, also of Pennsauken, New Jersey, both entered pleas of guilty before United States District Court Judge Nitza I. Quiñones on one count each of conspiracy to defraud the Internal Revenue Service, aiding another in the filing of a false tax return, and filing a false tax return.
According to a criminal Information filed in April 2019, Faruq and Ali conspired to file false tax returns on behalf of their clients at Omar Consultancy Inc., a tax service operated by them with offices in Pennsylvania and New Jersey.
According to the plea memorandum filed for today’s court appearance, Faruq and Ali consistently used false filing status, false Schedule A deductions and expenses, false Schedule C business income and losses, and fictitious credits to decrease clients’ tax liabilities, all of which resulted in increased refunds for many of their clients. Faruq diverted portions of his clients’ returns to his own bank account as part of the conspiracy, totaling more than $300,000, and Ali diverted over $170,000 to his own bank accounts.
Faruq and Ali both also pled guilty to filing a false income tax return for themselves and their respective spouses for tax year 2014. In filing the false returns, Faruq and Ali omitted gross receipts from their tax preparation business on the 2014 tax returns and failed to report diverted funds from taxpayer-clients as income on their personal returns.
“Our tax system depends on the honesty of all citizens to truthfully file their tax returns, many of whom rely on professionals to represent their interests and to do the work honestly,” said U.S. Attorney McSwain. “Tax preparers like Faruq and Ali undermine the tax system when they prepare and file false tax returns for their clients. My Office will aggressively investigate and prosecute tax preparers like the defendants who profit by turning their tax preparation services into fraud factories.”
“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients,” stated John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “Tax practitioners and return preparers have a duty to their clients to prepare tax returns that comply with the law and are complete and accurate. IRS Criminal Investigation will investigate and hold accountable abusive tax preparers who attempt to defraud our nation’s tax system.”
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Richard P. Barrett.
New Bern Man Sentenced to 35 Years in Federal Prison for Multi-Year Heroin and Marijuana ConspiracyRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that in federal court, before Chief United States District Judge Terrence W. Boyle, CALVIN MARK WILSON, also known as “Bali,” 35, of New Bern, North Carolina was sentenced to 35 years (420 months) in federal prison for conspiring to distribute and possess with the intent to distribute one thousand (1,000) grams or more of heroin and a quantity of marijuana.
The investigation was part of OCDETF Operation 190, which was named in memory of New Bern Police Department Officer Alexander Thalmann. Officer Thalmann was shot and killed in the line of duty on March 31, 2014 by associates of the defendant’s in this case. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
WILSON’s sentencing was the culmination of a multi-year investigation into a heroin trafficking ring operating in and around New Bern, North Carolina, and led primarily by two men: Damien Lamonte Brown and Calvin Mark Wilson. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and members of the New Bern Police Department learned that Brown, WILSON, and others had been involved in ordering heroin from New York City and arranging it to be brought down in multi-kilogram amounts over a period of several years. Brown and WILSON then supplied various mid- and lower-level dealers in and around New Bern with the heroin for sale.
As part of the investigation, law enforcement conducted over twenty controlled purchases of heroin from organization members between November 2016 and July 2017, along with traffic stops and other encounters in which they confirmed that members possessed drugs and guns. Based on that investigation, ATF then obtained authorization for a federal wiretap of cellular phones associated with WILSON and two co-defendants. As a result, agents intercepted calls and texts over a three-month period in 2017 showing that WILSON was directing the supply and distribution of kilogram-levels of heroin from New York to New Bern, NC. Based on intercepted calls, agents were able to stop and arrest WILSON and two co-defendants traveling back from New York with 3lbs of marijuana and 7 bars of heroin cutting agent. Subsequent investigation revealed that hundreds of grams of heroin had traveled separately down from New York to New Bern that day.
ATF made arrests of many of the defendants on October 24, 2017, along with searches of five residences associated with the organization. Through the life of the investigation, law enforcement has seized over a kilogram of heroin and twenty firearms.
The defendants include:
- CALVIN MARK WILSON, aka “Bali,” 35, of New Bern, NC. WILSON was convicted of conspiracy to distribute and possess with the intent to distribute one thousand grams or more of heroin and a quantity of marijuana and possession with intent to distribute a quantity of marijuana. WILSON was sentenced to 420 months’ imprisonment.
- DAMIEN LAMONTE BROWN, aka “Dame,” 36, of New Bern, NC. BROWN was convicted in August 2018 by a federal jury of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin, possession with intent to distribute one hundred (100) grams or more of heroin, and possession of a firearm by felon. BROWN was sentenced to 360 months’ imprisonment.
- DERRICK LAMONT DAVIS, aka “Gucci,” 35, of Kinston, NC. DAVIS was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin. DAVIS was sentenced to 48 months’ imprisonment.
- DWAYNE LEE STALLINGS, aka “Smiley,” 35, of Cove City, NC. STALLINGS was convicted of possession of a firearm by a felon and was sentenced to 108 months’ imprisonment.
- WALTER NAJEE GREEN, III, 21, of New Bern, NC. GREEN was convicted of distribution of a quantity of heroin and was sentenced to 72 months’ imprisonment.
- NASSAR TURE MACK, 37, of New Bern, NC. MACK was convicted of possession of a firearm by felon and was sentenced to 24 months’ imprisonment.
- MARIO CORRELLUS BARGNEARE, aka “Rio,” 39, of New Bern, NC. BARGNEARE was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and discharging a firearm in furtherance of a drug trafficking crime. BARGNEARE was sentenced to 204 months’ imprisonment.
- DEREK JACQUAN WIGGINS, aka “DJ,” 38, of New Bern, NC. WIGGINS was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin, several counts of distributing heroin, and possession of a firearm by a felon. He was sentenced to 120 months’ imprisonment.
- ROY JAMES NOLON, aka “Henny,” 21, of New Bern, NC. NOLON was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced to 96 months’ imprisonment.
- MICHAEL QUALEEK VELASQUEZ, aka “Moo,” 23, of New Bern, NC. VELASQUEZ was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of heroin. He was sentenced to 96 months’ imprisonment.
- LAMAR HOSEA WIGGINS, aka “LB,” 39, of New Bern, NC. WIGGINS was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession of a firearm by a felon. He was sentenced to 96 months’ imprisonment.
- LASHAWNNA JAQUETTE MCCOTTER, aka “Flossy,” 47, of New Bern, NC. McCOTTER was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of marijuana. She was sentenced to 30 months’ imprisonment.
- LATREKA DENISE HARDESTY, aka “T,” 27, of New Bern, NC. HARDESTY was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She was sentenced to time served.
- ADRIENNE MICHELLE HALL, 35, of New Bern, NC. HALL was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She was sentenced to time served.
- CAROLINE LOUISE HUGHES, 28, of Alliance, NC. HUGHES was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She was sentenced to 5 years probation.
There remains one defendant who is scheduled to be sentenced in July 2019:
- WILLIE FRANK JAMES AHERN, aka “White, White Bread, Dribs,” 39, of Bayboro, NC. AHERN was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and several instances of distributing quantities of heroin. AHERN faces up to life imprisonment.
The investigation also led to 8 individuals being charged by the state for drug offenses. Those charges remain pending.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New Bern Police Department, Jacksonville Police Department, Craven County Sheriff’s Office, Pamlico County Sheriff’s Office, the North Carolina State Bureau of Investigation, Onslow County Sheriff’s Office, Sampson County Sheriff’s Office, Trent Woods Police Department, Carteret County Sheriff’s Office, Morehead City Police Department, Beaufort County Sheriff’s Office, and with the assistance of the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA). Assistant United States Attorney Laura S. Howard prosecuted this case on behalf of the government.
NDTX Roundup -- 6/13/19Read the Press Release
SENTENCING – Sherryol Elton Clack, Jr.
On June 7, Sherryol Clack, Jr. was sentenced to three months in federal prison for shining a laser pointer at an aircraft, causing temporary blindness to its pilot. The aircraft, a Texas Department of Public Safety helicopter assisting in the apprehension of a murder suspect, was forced to abort its mission.
PLEA – Joe Larry Straw
On June 11, Joe Larry Straw pleaded guilty to conspiracy to commit health care fraud. In plea papers, Mr. Straw admits he accepted more than $68,000 in kickbacks in return for facilitating the referral of TRICARE patients to Trilogy Pharmacy. More than a dozen co-defendants have been indicted in the scheme, which violated the federal anti-kickback statute, and caused an actual loss to TRICARE of more than $100 million. The Defense Criminal Investigative Service and FBI investigated.
PLEA – Randal Anthony Melton
On June 11, Randal Melton pleaded guilty to felon in possession of a firearm. In his plea papers, Mr. Melton admits to unlawful possession of a 9 mm Smith and Wesson despite a prior felony conviction. ATF and the Dallas Police Department investigated the case.
SENTENCING – Damon Williams
On June 13, Damon Williams was sentenced to 7 years, 11 months in federal prison for his involvement in a methamphetamine conspiracy. In February, Mr. Williams pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, admitting he delivered meth to a co-conspirator who then sold the drugs to an undercover officer.
Miami County Man Sentenced for Collecting Child PornographyRead the Press Release
KANSAS CITY, KAN. - A Miami County man who pleaded guilty to possessing child pornography was sentenced today to 70 months in federal prison, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay $5,000 to the Justice for Victims of Trafficking Act Fund and $3,000 to each of 15 victims who requested restitution.
Joel Haines, 61, Paola, Kan., pleaded guilty to one count of possessing child pornography. At sentencing, the prosecutor said investigators found 1,433 digital child pornography images on Haines’ computer. The images included children under the age of two being sexually abused as well as images of girls ages 6 to 12.
McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Mexican citizen living in Benton sentenced for re-entering U.S. after multiple deportations and illegally possessing firearmRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that illegal alien and felon Shandy Salgado-Almendaris, 39, a Mexican citizen living in Benton, Louisiana, was sentenced on Wednesday. Chief U.S. District Judge S. Maurice Hicks Jr. sentenced Salgado-Almendaris to 21 months in prison for illegally re-entering the United States after being removed and for being a felon in possession of a firearm.
Bossier Parish Narcotics Task Force agents conducted an investigation on August 9, 2018, at a Benton residence and encountered Salgado-Almendaris. Agents searched the home and found a Rohm GmbH (RG Industries), Model: RG-14, .22-caliber revolver in the master bedroom area. The firearm was seized and Salgado-Almendaris was arrested. Salgado-Almendaris had been previously removed from the United States three times at locations in Texas and Louisiana. The defendant is a convicted felon who has a previous criminal history involving possession of cocaine. He pleaded guilty to the current federal charges on February 20, 2019, and faces removal from the United States after serving his prison term.
United States Immigrations and Customs Enforcement, the ATF, and the Bossier Parish Narcotics Task Force investigated the case. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
Mexican National Indicted for Being an Alien Unlawfully in the United States in Possession of A FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Ismael Huazo-Jardinez, 33, a Mexican citizen residing in Yuba City, CA, charging him with two counts of possessing a firearm while being an alien unlawfully in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, Huazo-Jardinez is suspected of having been the driver in a fatal car accident that killed three people, the parents and one child of a family of four, when the vehicle crashed into their mobile home as they slept, on May 4, 2019, in Sutter County. Huazo-Jardinez was arrested at the scene of the accident. Authorities impounded the vehicle, a Chevrolet Avalanche registered to Huazo-Jardinez, and later recovered a handgun from the vehicle’s center console. A database query revealed that the handgun had been reported stolen in Boise, Idaho.
According to court documents, a Beretta handgun was found during a search of Huazo-Jardinez’s residence. Huazo-Jardinez is alleged to be a citizen and national of Mexico who has twice been removed from the United States and has not been granted permission to return. As an alien unlawfully in the United States, Huazo-Jardinez is prohibited by federal statute from possessing a firearm.
This case is the product of an investigation by the California Highway Patrol, Sutter County Sheriff’s Department, and U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO). Assistant United States Attorneys James Conolly and Shea Kenny are prosecuting the case. The Sutter County District Attorney’s Office is prosecuting Huazo-Jardinez in the state case related to the May 4, 2019 fatal car accident.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department of Justice's renewed focus on targeting violent criminals, directing all U.S. attorney's Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
If convicted, Huazo-Jardinez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Indicted for Being an Alien Unlawfully in the United States in Possession of A FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Ismael Huazo-Jardinez, 33, a Mexican citizen residing in Yuba City, CA, charging him with two counts of possessing a firearm while being an alien unlawfully in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, Huazo-Jardinez is suspected of having been the driver in a fatal car accident that killed three people, the parents and one child of a family of four, when the vehicle crashed into their mobile home as they slept, on May 4, 2019, in Sutter County. Huazo-Jardinez was arrested at the scene of the accident. Authorities impounded the vehicle, a Chevrolet Avalanche registered to Huazo-Jardinez, and later recovered a handgun from the vehicle’s center console. A database query revealed that the handgun had been reported stolen in Boise, Idaho.
According to court documents, a Beretta handgun was found during a search of Huazo-Jardinez’s residence. Huazo-Jardinez is alleged to be a citizen and national of Mexico who has twice been removed from the United States and has not been granted permission to return. As an alien unlawfully in the United States, Huazo-Jardinez is prohibited by federal statute from possessing a firearm.
This case is the product of an investigation by the California Highway Patrol, Sutter County Sheriff’s Department, and U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO). Assistant United States Attorneys James Conolly and Shea Kenny are prosecuting the case. The Sutter County District Attorney’s Office is prosecuting Huazo-Jardinez in the state case related to the May 4, 2019 fatal car accident.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department of Justice's renewed focus on targeting violent criminals, directing all U.S. attorney's Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
If convicted, Huazo-Jardinez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Members of African Criminal Enterprise Charged with Large-Scale Trafficking of Rhinoceros Horns and Elephant Ivory and Heroin DistributionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, David Bernhardt, the United States Secretary of the Interior, and Christopher T. Tersigni, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that MOAZU KROMAH, a/k/a “Ayoub,” a/k/a “Ayuba,” a/k/a “Kampala Man,” AMARA CHERIF, a/k/a “Bamba Issiaka,” MANSUR MOHAMED SURUR, a/k/a “Mansour,” and ABDI HUSSEIN AHMED, a/k/a “Abu Khadi,” were charged in an indictment for participating in a conspiracy to traffic in rhinoceros horns and elephant ivory, both protected wildlife species, valued at more than $7 million that involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In addition, KROMAH, CHERIF, and SURUR were charged with conspiracy to commit money laundering, and SURUR and AHMED were charged with participating in a conspiracy to distribute and possess with intent to distribute more than 10 kilograms of heroin. KROMAH, a citizen of Liberia, was arrested in Uganda on June 12, 2019, and expelled to the United States. He was arraigned before U.S. Magistrate Judge Katharine H. Parker earlier today and detained. CHERIF, a citizen of Guinea, was arrested in Senegal on June 7, 2019, and remains in custody in Senegal pending a process through which his extradition, deportation or other lawful removal to the United States is being considered by Senegalese authorities. SURUR and AHMED, both citizens of Kenya, remain fugitives. The case has been assigned to U.S. District Judge Gregory H. Woods.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants are members of an international conspiracy to traffic in not only heroin but also rhino horns and elephant ivory. The alleged enterprise, responsible for the illegal slaughter of dozens of rhinos and more than 100 elephants, was as destructive to protected species as it was lucrative. The excellent work of the Fish and Wildlife Service and the DEA has put the brakes on an operation that allegedly peddled dead protected species and potentially deadly narcotics.”
Secretary of the Interior David Bernhardt said: “Wildlife trafficking will not be tolerated. It is often intertwined with other major types of criminal activity including conspiracy, smuggling, money laundering and narcotics – all of which are included in the indictment today. The U.S. Department of the Interior remains committed to combating the illegal wildlife trade through the END Wildlife Trafficking Act and the President’s Executive Order on Transnational Organized Crime. I would like to thank the U.S. Fish and Wildlife Service Office of Law Enforcement, U.S. Attorney’s Office, U.S. Department of Justice, and others who help bring wildlife traffickers, and other criminals, to justice. Together, we can protect some of the world’s most iconic species while ensuring the safety and livelihood of the American people.”
DEA Special Agent in Charge Christopher T. Tersigni said: “DEA’s global investigations with our foreign counterparts often involve transnational criminal networks involved in a wide array of unlawful acts – from drug trafficking to conspiring to commit acts of terror to international money laundering to human trafficking – that undermine the rule of law everywhere. These suspected criminal masterminds not only conspired to traffic huge amounts of heroin to New York, but also directed a multimillion-dollar poaching scheme to traffic in rhinoceros horns and elephant ivory – both endangered wildlife species. DEA investigations throughout the world consistently illustrate the lengths and heinous acts these global criminal individuals and networks will commit to further their illicit enterprises.”
According to allegations in the Indictment unsealed today in Manhattan federal court[1]:
KROMAH, CHERIF, SURUR, and AHMED were members of a transnational criminal enterprise (the “Enterprise”) based in Uganda and surrounding countries that was engaged in the large-scale trafficking and smuggling of rhinoceros horns and elephant ivory, both protected wildlife species. Trade involving endangered or threatened species violates several U.S. laws, as well as international treaties implemented by certain U.S. laws.
From at least in or about December 2012 through at least in or about May 2019, KROMAH, CHERIF, SURUR, and AHMED conspired to transport, distribute, sell, and smuggle at least approximately 190 kilograms of rhinoceros horns and at least approximately 10 tons of elephant ivory from or involving various countries in East Africa, including Uganda, the Democratic Republic of the Congo, Guinea, Kenya, Mozambique, Senegal, and Tanzania, to buyers located in the United States and countries in Southeast Asia. Such weights of rhinoceros horn and elephant ivory are estimated to have involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In total, the estimated average retail value of the rhinoceros horn involved in the conspiracy was at least approximately $3.4 million, and the estimated average retail value of the elephant ivory involved in the conspiracy was at least approximately $4 million.
Typically, the defendants exported and agreed to export the rhinoceros horns and elephant ivory for delivery to foreign buyers, including those represented to be in Manhattan, in packaging that concealed the rhinoceros horns and elephant ivory in, among other things, pieces of art such as African masks and statues. The defendants received and deposited payments from foreign customers that were sent in the form of international wire transfers, some which were sent through U.S. financial institutions, and paid in cash.
On a number of occasions, KROMAH, SURUR, and AHMED met with a confidential source (“CS-1”), both together and separately, concerning potential purchases of elephant ivory and rhinoceros horn. During these meetings and at other times via phone calls and an electronic messaging application, CS-1 discussed with KROMAH, SURUR, and AHMED, in substance and in part, the terms of the sale, including the price, weight, or size of the rhinoceros horns, payment, destination, and delivery options. CS-1 also discussed with CHERIF via phone calls and electronic messages, in substance and in part, the terms of the sales, as well as how to send payment for the rhinoceros horns from a United States bank account located in Manhattan. On or about March 16, 2018, law enforcement agents intercepted a package containing a black rhinoceros horn sold by the defendants to CS-1 that was intended for a buyer represented to be in Manhattan. From in or about March 2018 through in or about May 2018, the defendants offered to sell CS-1 additional rhinoceros horns of varying weights, including horns weighing up to seven kilograms. On or about July 17, 2018, law enforcement agents intercepted a package containing two white rhinoceros horns sold by the defendants to CS-1 that was intended for a buyer represented to be in Manhattan.
Separately, from at least in or about August 2018 through at least in or about May 2019, SURUR and AHMED conspired to distribute and possess with intent to distribute more than approximately 10 kilograms of heroin to a buyer represented to be located in New York.
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KROMAH, 49, CHERIF, 54, SURUR, 59, and AHMED, 56, are each charged with one count of conspiracy to commit wildlife trafficking and two counts of wildlife trafficking, each of which carries a maximum sentence of five years in prison. KROMAH, CHERIF, and SURUR are also each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years. Finally, SURUR and AHMED are each charged with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, which carries a maximum sentence of life imprisonment, and a mandatory minimum sentence of 10 years’ imprisonment. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the United States Fish and Wildlife Service and the DEA, and he thanked law enforcement authorities and conservation partners in Uganda for their assistance in the investigation. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs for their assistance and noted that the investigation is continuing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Jarrod L. Schaeffer are in charge of the prosecution.
The charges contained in the Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and its description set forth below constitute only allegations, and every fact described should be treated as an allegation.
Margaret E. Hunter Admits Conspiring with her Husband, Rep. Duncan D. Hunter, to Steal more than $200,000 in Campaign FundsRead the Press Release
Kelly Thornton (619) 546-9726
CLICK HERE for Plea AgreementNEWS RELEASE SUMMARY – June 13, 2019
SAN DIEGO – Margaret E. Hunter admitted in federal court today that she and her husband, U.S. Rep. Duncan D. Hunter, knowingly and willfully used campaign funds as their personal bank account for years, spending lavishly on things they could not otherwise afford, such as expensive trips to Italy, Las Vegas, Laguna Beach, Disneyland and elsewhere, plus golf outings, a bachelor party, private school for their children, dinners in Del Mar and Coronado, and even plane tickets for their family pet, Eggburt the rabbit.
Margaret Hunter’s plea agreement indicates that she has agreed to provide “substantial assistance to the United States in the investigation and prosecution of others” and to “tell everything (she) knows about every person involved” in the crime.
U.S. District Judge Thomas J. Whelan set Ms. Hunter’s sentencing for September 16, 2019 at 9 a.m. The Hunters both remain free on bond. A motions hearing relating to defendant Duncan Hunter is scheduled for July 1, 2019, and his trial is scheduled to begin on September 10, 2019.
As detailed in her plea agreement, beginning no later than 2010 and continuing up to and including at least 2016, Margaret and Duncan Hunter agreed to knowingly use campaign funds for their own personal benefit and enjoyment, and for that of friends and family. Throughout this period, the Hunters both recognized that many of their personal outings with family or friends (including trips to Del Mar, dinners or drinks with friends, family and “couples” vacations, golf outings, and a bachelor’s party) should not have been paid for with campaign funds. Nevertheless, Ms. Hunter admitted that the Hunters continued to improperly use campaign funds on these and many other occasions.
Among the improper expenses, Margaret Hunter acknowledged that the Hunters improperly spent $2,448.27 in campaign funds in August 2011 on a personal “couples” Las Vegas vacation in Las Vegas, Nevada, and concealed the personal expenditures by falsely reporting to the campaign treasurer that the expenses were all “campaign related.” Similarly, later that same month, knowing that their family bank account had a negative balance, the Hunters improperly used $113.73 in campaign funds to pay their half of the bill during another couples’ “date night” out with good friends at Jake’s Del Mar; improperly used $156.22 in campaign funds during a “couples” day at the Del Mar Racetrack; and improperly used $511.03 in campaign funds at the Hotel del Coronado to celebrate their child’s birthday. They once again falsely told the campaign treasurer that all the charges were “campaign related.”
Ms. Hunter acknowledged in her plea agreement that these types of improper expenses went on for years and included: (1) the Hunters’ improper use of $371.51 in campaign funds on September 2, 2012 at the Loew’s Resort in Coronado for a family lunch in connection with their child’s Irish Dance competition; (2) the Hunters’ improper use of $100.69 in campaign funds on November 16, 2013 at Casa De Pico in La Mesa to take their family and close friends out to dinner before attending a sporting event featuring one of the Hunters’ children; (3) the Hunters’ improper use of $1,489 in campaign funds on June 28, 2014 to treat their good friends to dinner at the Studio restaurant in the Montage Laguna Beach resort, and for room service, drinks, and meals the next day for the Hunters by themselves; (4) the Hunters’ improper use of campaign funds on September 26, 2015 for a family trip to Disneyland, in which Ms. Hunter used Duncan D. Hunter’s campaign card to spend $229.44 in campaign funds at Disneyland’s Star Trader shop for gifts for the Hunters’ children, including two Minnie Mouse ear headbands, a Star Wars droid knit beanie, and a raglan-sleeve black-and-gray Star Wars girls T-shirt; and (5) the Hunters’ improper use of $669.07 in campaign funds on March 27, 2016 at the Hotel del Coronado for a family Easter Sunday brunch in the Crown Room that the Hunters recognized was well outside their budget.
In her plea, Ms. Hunter also admitted improperly using campaign funds on a number of family vacations, including: (1) a July 2014 vacation to Washington, D.C. and a resort in Pennsylvania (which included personal items and activities such as purchasing cigarettes, $399 for ziplining for Hunter and two of his children, and $250 in airline travel charges for the family’s pet rabbit, Eggburt); (2) a February 2015 family trip to Minnesota, during which they improperly paid for personal family expenses including $250 in airline travel charges for Eggburt, and $132 in Uber rides to take the Hunter family to the Mall of America; (3) a June/July 2015 family vacation involving Hunter’s cousin’s wedding in Boise, Idaho, and a stopover in Las Vegas on the way there in which the Hunters, among other things, spent $205.62 in campaign funds for personal items at the North Face store, which included a new pair of sunglasses for Duncan Hunter and a T-shirt; and (4) a November 2015 family vacation to Italy, in which the Hunters improperly used more than $10,000 in campaign funds, and attempted to justify the impermissible use of these funds by setting up a one-day tour of a U.S. Navy facility in Italy.
Margaret Hunter also admitted communicating with Hunter and with the campaign treasurer about the fact that it was only appropriate to pay expenses with campaign funds when an outing or event was for a bona fide campaign or political purpose. Nevertheless, Ms. Hunter admitted that she and her husband both knowingly violated these restrictions and other rules the treasurer implemented to track legitimate expenses (such as instructing the Hunters not to purchase gas using campaign funds, instructing the Hunters that withdrawing cash from ATMs and using “petty cash” required records of how money was spent, and requiring receipts which listed the names of donors and volunteers with whom the Hunters claimed to be spending campaign funds).
Ms. Hunter also acknowledged that she and Duncan Hunter both were aware that the other spent, and could spend, campaign funds on personal activities and purchases without having to inform one another about the nature of specific “campaign” expenses. According to Ms. Hunter, this understanding allowed the Hunters to spend campaign funds on certain personal matters they wished to conceal from the other. For example, she hid from Duncan Hunter certain purchases she made with campaign funds for items like children’s school lunches.
On the other hand, when they improperly spent funds when they were together, they both recognized that campaign funds were being spent on personal activities. For example, after returning home from their personal Boise and Las Vegas vacation, Duncan Hunter and Ms. Hunter discussed how the campaign card had been declined as the family had “racked up a $600 minibar…and more charges at Caesars…” as well as a $200 family breakfast, the “kids room service” and pool drinks, and gift shop vacation expenses.
Even after Duncan Hunter’s chief of staff questioned several expenses the Hunters had made using campaign funds, Ms. Hunter admitted that the Hunters falsely insisted to campaign staff and on public reports that the personal expenses were in fact appropriate campaign-related charges. Moreover, Ms. Hunter acknowledged that she and Duncan Hunter continued using campaign funds to secretly make thousands of dollars in improper personal purchases (including family vacations, household goods and groceries, restaurants and bar tabs, a bachelor party, gas, fast food, retail shopping, cash withdrawals, a garage door, and personal Uber rides, among others) which they continued to disguise as campaign-related expenses.
DEFENDANTS Case Number 18cr3677-W
Margaret E. Hunter Age: 44 Alpine, CA
SUMMARY OF CHARGE
Conspiracy to Defraud the United States – Title 18, U.S.C., Sec. 371
AGENCY
Federal Bureau of Investigation
Louisiana Man Sentenced for Conspiring to Violate the Federal Housing Rights of Woman with DisabilitiesRead the Press Release
Jody Lambert, 24, was sentenced today in the Eastern District of Louisiana to 120 months imprisonment for conspiring with members of his family to prevent D.P., a woman with cognitive disabilities, from exercising her right to rent and occupy a dwelling without injury, intimidation, and interference because of her cognitive disabilities.
“Lambert and his co-defendants conspired to deprive a vulnerable victim of a safe and secure place to live, forcing her to live outside in a padlocked cage, because of her disability,” said Assistant Attorney General Eric Dreiband. “This disgraceful conduct is a hate crime, and the Department of Justice will continue to make combatting hate crimes a high priority. Today’s sentencing reflects our commitment to seeking justice for victims.”
“Ensuring the Civil Rights of all citizens, especially the most vulnerable is paramount to our country,” said Peter G. Strasser U.S. Attorney for the Eastern District of Louisiana. “The sentencing of Mr. Lambert sends a clear message that anyone who denies a citizen her rights will be held accountable.”
"Today's sentencing of Jody Lambert, for his inhumane treatment of a family member, serves as a stark reminder that justice does prevail,” said Eric Rommal, FBI New Orleans Special Agent in Charge. “As the primary federal agency charged with enforcing federal civil rights statutes, the FBI New Orleans Field Office will continue to aggressively investigate all credible civil rights allegations in Louisiana."
On Oct. 18, 2018, Lambert pleaded guilty to one count of civil rights conspiracy. At the plea hearing, Lambert admitted that for several months prior to June 30, 2016, in Amite, Louisiana, he conspired with other members of his family to force D.P. to live in a locked cage in their backyard because of her cognitive disabilities and because they did not want her living in the family’s mobile home. Lambert admitted that he and his family members locked D.P. in the cage at night with a metal chain and padlock, and that he and other family members had placed branches and a tarp over the cage to hide it from view. Lambert further admitted that while locked inside the cage, D.P. was required to use a five-gallon bucket as a toilet. Lambert also admitted that, prior to forcing D.P. to live in the cage, he and his family had forced D.P. to live in their backyard in a locked tent and in a locked shed. Lambert admitted that throughout the time D.P. lived with the family in Amite, Louisiana, Lambert and his conspirators subjected D.P. to routine physical violence and threats of physical violence in order to intimidate D.P. into these living conditions.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office, and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
Louisiana Man Sentenced for Conspiring to Violate the Federal Housing Rights of Woman with DisabilitiesRead the Press Release
WASHINGTON – Jody Lambert, 24, was sentenced today in the Eastern District of Louisiana to 120 months imprisonment for conspiring with members of his family to prevent D.P., a woman with cognitive disabilities, from exercising her right to rent and occupy a dwelling without injury, intimidation, and interference because of her cognitive disabilities.
“Lambert and his co-defendants conspired to deprive a vulnerable victim of a safe and secure place to live, forcing her to live outside in a padlocked cage, because of her disability,” said Assistant Attorney General Eric Dreiband. “This disgraceful conduct is a hate crime, and the Department of Justice will continue to make combatting hate crimes a high priority. Today’s sentencing reflects our commitment to seeking justice for victims.”
“Ensuring the Civil Rights of all citizens, especially the most vulnerable is paramount to our country,” said Peter G. Strasser U.S. Attorney for the Eastern District of Louisiana. “The sentencing of Mr. Lambert sends a clear message that anyone who denies a citizen her rights will be held accountable.”
"Today's sentencing of Jody Lambert, for his inhumane treatment of a family member, serves as a stark reminder that justice does prevail,” said Eric Rommal, FBI New Orleans Special Agent in Charge. “As the primary federal agency charged with enforcing federal civil rights statutes, the FBI New Orleans Field Office will continue to aggressively investigate all credible civil rights allegations in Louisiana."
On Oct. 18, 2018, Lambert pleaded guilty to one count of civil rights conspiracy. At the plea hearing, Lambert admitted that for several months prior to June 30, 2016, in Amite, Louisiana, he conspired with other members of his family to force D.P. to live in a locked cage in their backyard because of her cognitive disabilities and because they did not want her living in the family’s mobile home. Lambert admitted that he and his family members locked D.P. in the cage at night with a metal chain and padlock, and that he and other family members had placed branches and a tarp over the cage to hide it from view. Lambert further admitted that while locked inside the cage, D.P. was required to use a five-gallon bucket as a toilet. Lambert also admitted that, prior to forcing D.P. to live in the cage, he and his family had forced D.P. to live in their backyard in a locked tent and in a locked shed. Lambert admitted that throughout the time D.P. lived with the family in Amite, Louisiana, Lambert and his conspirators subjected D.P. to routine physical violence and threats of physical violence in order to intimidate D.P. into these living conditions.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office, and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
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Local Man Sentenced to 15 Years in Prison for Trying to Join ISISRead the Press Release
DAYTON – A Dayton man was sentenced today in U.S. District Court to 180 months in prison and 25 years of supervised release for attempting, and conspiring, to join the Islamic State of Iraq and al-Sham (ISIS). U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Assistant Attorney General for National Security John C. Demers and Special Agent in Charge Todd A. Wickerham of the FBI’s Cincinnati Division made the announcement.
“Alebbini was prepared to kill soldiers and citizens of the United States, the Kingdom of Jordan, and coalition partners fighting against ISIS. Indeed, Alebbini was prepared to kill any person who did not accept ISIS as the Islamic Caliphate,” said U.S. Attorney Glassman. “Prison is the right place for him.”
“Alebbini was determined to travel overseas for the purpose of joining ISIS and engaging in violence in support of the foreign terrorist organization,” said Assistant Attorney General Demers. “Notwithstanding pleas from others close to him, Alebbini declared that he is a terrorist and decided to move forward with his plan to join ISIS. Thanks to the great work of the agents, analysts, and prosecutors who are assigned to this case, Alebbini’s plans were thwarted and he is being held accountable for his crimes.”
Laith Waleed Alebbini, 28, was convicted following a bench trial in November and December 2018 before U.S. District Judge Walter H. Rice.
Alebbini attempted, and conspired, to provide material support and resources to ISIS in the form of personnel, namely himself.
Alebbini, a citizen of Jordan and a U.S. legal permanent resident, was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint.
Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court. The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding pass in hand for a flight to Amnan, Jordan, with a connection in Istanbul, Turkey. The evidence also showed that Alebbini intended to forego the flight to Jordan and instead make his way from Turkey into Syria to join ISIS.
According to court documents and testimony, on April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “The Islamic State is fighting a survival war . . . I, cousin, want to go to be an inghimasi soldier.”
As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation.
On April 26, 2017, about one hour before Alebbini arrived at the Cincinnati/Kentucky International Airport, several relatives pleaded with Alebbini not to join ISIS. Alebbini responded in three separate back-to-back text messages: “Do you think I am a criminal” “I am a terrorist” “I am mujahid.”
U.S. Attorney Glassman and Assistant Attorney General Demers commended the investigation of this case by the Joint Terrorism Task Force, which includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.
First Assistant Vipal J. Patel and Assistant U.S. Attorney Dominick S. Gerace of the Southern District of Ohio and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted this case.
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Lebanon, Oregon Business Owner Charged with Tax Evasion and Theft of Government FundsRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland returned a six-count indictment today charging Lebanon, Oregon business owner Robert A. Lund, 62, with evading $1.7 million in income taxes, failing to file individual income tax returns, obstructing or impeding the IRS and theft of government funds as part of a multi-year scheme to defraud the U.S.
According to the indictment, in June 2002, after an IRS audit and a lengthy period of litigation, the U.S. Court of Appeals for the Ninth Circuit affirmed a U.S. Tax Court finding that Lund owed more than $444,000 in underreported tax liabilities. After the ruling, the IRS Collection Division continued its efforts to collect the taxes Lund owed. In response, Lund sent the IRS frivolous correspondence, threatened to the sue the IRS Revenue Officers, attempted to quash various summonses and subpoenas, filed false bankruptcy petitions, transferred real property to nominees and used nominees to open financial accounts and conceal his income.
From December 2000 to November 2013, Lund incorporated or controlled over 160 nominee business entities and used them to conceal his assets and income from the IRS. He operated four businesses—a computer consulting company, a bookstore, a nutrition store and a scuba diving company—from a building in downtown Albany, Oregon. Additionally, he operated a trailer park in Sweet Home, Oregon from which he rented trailer units to individuals receiving government rental assistance.
Lund will be arraigned on July 10, 2019 in Portland.
This case was investigated by IRS Criminal Investigation and the Oregon Department of Human Services and is being prosecuted by Seth D. Uram and Clemon D. Ashley, Assistant U.S. Attorneys for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Latin King Gang Member Sentenced to Life in PrisonRead the Press Release
HAMMOND-Robert Nieto, also known as “Cowboy,” 45, of Gary, Indiana, and a member of the Chicago-based Latin Kings, was sentenced by U.S. District Judge Phillip Simon following his conviction at trial last May of conspiracy to participate in racketeering activity and conspiracy to distribute and possess with intent to distribute cocaine and marijuana, announced U.S. Attorney Kirsch.
Nieto was sentenced to Life in prison followed by 5 years of supervised release.
U.S. Attorney Kirsch said, “Long sentences, such as the sentence imposed in this case, should send a strong message of deterrence to those engaged in these activities. My office has amplified its efforts to reduce violent crime, and we will use all our resources to prosecute those who commit these senseless acts of violence. I am dedicated to working together with law enforcement partners to reduce violent crime.”
According to evidence presented at trial, as part of the racketeering conspiracy, on December 2, 2013, Rolando Correa, 22, of Gary, Indiana, was killed in Gary. Mr. Correa was coming to the aid of his next door neighbors, who were victims of a home invasion robbery. Robert Nieto assisted in setting up the home invasion and listened to a police scanner to assist in the escape of the robbers. The jury found Nieto responsible for Correa’s death in addition to finding that Nieto conspired to distribute or possess with intent to distribute at least five kilograms of cocaine as part of the racketeering conspiracy. The jury also found that Nieto conspired to distribute or possess with intent to distribute at least five kilograms of cocaine and at least 100 kilograms of marijuana as part of the drug conspiracy.
According to evidence presented at trial and case documents, Nieto was also a local leader of the Latin Kings who has been involved in the gang since at least approximately 2007, distributed cocaine and marijuana, possessed firearms, and ordered fellow gang members to shoot at rivals. He has a prior felony conviction for aggravated battery.
Approximately 43 defendants have been charged with racketeering conspiracy as members of the Latin Kings in a criminal conspiracy extending back to 2003. The racketeering conspiracy charge alleges that gang members and associates were participants in a racketeering conspiracy that involved murder, attempted murder, aggravated assault, sex trafficking, and narcotics distribution.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office and the U.S. Attorney’s Office, Northern District of Illinois, has also provided assistance. The Latin King racketeering conspiracy case is being prosecuted by Northern District of Indiana Assistant U.S. Attorneys David J. Nozick, Nicholas J. Padilla, Dean R. Lanter, and Joseph A. Cooley, formerly of the Criminal Division’s Organized Crime and Gang Section.
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LaPorte, Indiana Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND – Mario Ward II, age 23, of LaPorte, Indiana, was sentenced before United States District Court Judge Robert L. Miller, Jr. upon his plea of guilty to 2 counts of being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Ward was sentenced to 60 months in prison followed by 2 years of supervised release.
According to documents in this case, in July 2018, Ward possessed a firearm after being convicted of a felony offense. Ward was in a car that led police on a high speed chase while he had a stolen 9 millimeter firearm. The car crashed in a residential neighborhood, after which a second stolen 9 millimeter firearm was found in the car as well as over 50 grams of marijuana. While criminal charges from that incident were pending, Ward was released under court supervision. While on release, investigators went to arrest Ward at his home for a pre-trial release violation. During that arrest, investigators found a firearm that Ward admitting to handling as well as over 50 grams of marijuana and over $1,000.00 cash.
This case was investigated by ATF with assistance from the Michigan City Police Department, LaPorte County Drug Task Force and US Marshals Fugitive Apprehension Street Team. The case was handled by Assistant U.S. Attorney Molly E Donnelly.
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Justice Department Settles Suit Against Indiana Bank to Resolve Lending Discrimination ClaimsRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Southern District of Indiana today filed a complaint and settlement agreement, resolving allegations that First Merchants Bank engaged in lending discrimination by “redlining” predominantly African-American neighborhoods within Indianapolis, Indiana. “Redlining” is a term describing an illegal practice in which lenders intentionally avoid providing services to individuals living in predominantly minority neighborhoods because of the race of the residents in those neighborhoods.
The Department alleges in a complaint filed in the U.S. District Court for the Southern District of Indiana that First Merchants violated the Fair Housing Act and Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race in their mortgage lending services. The complaint alleges that, from 2011 to at least 2017, First Merchants engaged in unlawful redlining in Indianapolis by intentionally avoiding predominantly African-American neighborhoods because of the race of the people living in those neighborhoods. The Department also alleges in the complaint that First Merchants adopted a residential mortgage lending policy that had the effect of denying residents of predominantly African-American neighborhoods equal access to credit in violation of federal law.
“Federal law prohibits lenders from discriminating against mortgage applicants and other potential customers based on race,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend First Merchants for cooperatively resolving this case by taking steps to ensure that its residential lending products and services are made available to everyone in Indianapolis, regardless of race.”
“Discriminatory race-based lending practices have no place in our District,” said Josh Minkler, U.S. Attorney for the Southern District of Indiana. “This case involving First Merchants Bank shows our commitment to ensure this reality.”
First Merchants Bank is headquartered in Muncie, Indiana, with branches throughout the Midwest. First Merchants is one of the largest full-service banks in Central Indiana with more than $9 billion in assets and 110 branches in Indiana alone. Under the settlement agreement, which is subject to court approval, First Merchants will expand its marketing efforts, lending, and banking services to specifically include predominantly African-American neighborhoods in Indianapolis. To remedy the harm to those living in the redlined areas, the Bank will invest $1.12 million in a loan subsidy fund to increase credit opportunities to residents of predominantly African-American neighborhoods, and will devote $500,000 toward advertising, community outreach, and credit repair and education. The Bank will also open a branch and loan production office to serve the banking and credit needs of residents in predominantly African-American neighborhoods in Indianapolis. The Bank will employ a director of community lending and development who will oversee these efforts and work in close consultation with the Bank’s leadership.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing.
Justice Department Celebrates Strong Support for Religious Freedom at One Year Mark of the Place to Worship InitiativeRead the Press Release
The Department of Justice today announced the one-year anniversary of its Place to Worship Initiative, which focuses on protecting the rights of religious individuals and communities to build, expand, buy, or rent houses of worship and other religious facilities as guaranteed by the Religious Land Use and Institutionalized Persons Act (RLUIPA).
“The Department of Justice has prioritized protecting religious freedom, and the successes we have achieved under the Place to Worship Initiative in just one year demonstrate the strength of that commitment,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to enforce vigorously the laws that defend the fundamental freedom of religion, and we are pleased that this initiative has allowed the Department to continue this important work on behalf of many different and diverse religious groups.”
Since launching the initiative last June, the Civil Rights Division has doubled the number of RLUIPA investigations to 15, compared to the average of seven investigations per year from 2010 – 2016. A majority of investigations result in a resolution, or settlement, without a lawsuit. Since the initiative began, the Justice Department has resolved 10 RLUIPA investigations.
Moreover, since the start of the initiative, the Department filed a lawsuit against the Borough of Woodcliff Lake, New Jersey, alleging that the borough violated RLUIPA when its zoning board denied zoning approval to allow the Valley Chabad, an Orthodox Jewish congregation, to build a new place of worship on its land. The Department also filed suit against and reached an agreement with the City of Farmersville, Texas, to resolve allegations that the city violated RLUIPA when it denied an application by the Islamic Association of Collin County to build a cemetery.
Since the initiative began, the Department has also actively participated in RLUIPA lawsuits filed by private parties around the country. The Department has filed four Statements of Interest supporting RLUIPA plaintiffs in federal district courts, including: Hope Lutheran Church v. City of St. Ignace, Christian Fellowship Centers of New York, Inc. v. Village of Canton, Ramapough Mountain Indians, Inc. v. Township of Mahwah, and Jagannath Organization for Global Awareness v. Howard County. These cases have involved such diverse issues as the ability of churches in New York and Michigan to locate in business districts, the right of Ramapough Mountain Indians to use land for religious assembly in New Jersey, and the right of a Hindu congregation to build a temple in Maryland. The Department also filed an amicus brief and presented oral argument in the United States Court of Appeals for the Fourth Circuit supporting an Evangelical church’s RLUIPA claim against Baltimore County, Maryland. The Fourth Circuit ultimately agreed with the Department’s position that the small congregation, many of whose members are African immigrants, could proceed with its claim that the county improperly denied approval to build a small church on a 1.2-acre lot.
Finally, as part of the Place to Worship Initiative, the Department has launched a new website and complaint portal, provided informational materials for religious leaders and municipal officials, and held 15 community outreach and training events to raise awareness about RLUIPA across the country.
The Department of Justice announced the creation of the Religious Liberty Task Force in July 2018. The Task Force helps the Department fully implement the religious liberty guidance by ensuring that all Justice Department components are upholding that guidance in the cases they bring and defend, the arguments they make in court, the policies and regulations they adopt, and how we conduct our operations.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. More information about RLUIPA is available on the Place to Worship Initiative homepage, https://www.justice.gov/crt/place-worship-initiative.
Justice Department Announces Transnational Elder Fraud Strike ForceRead the Press Release
WASHINGTON – Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing, and tech-support fraud schemes.
The Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, and Southern District of Texas), FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office.
“Fraud against the elderly is on the rise,” said Attorney General Barr. “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”
“Schemes that target elderly and vulnerable victims are unconscionable,” stated Richard P. Donoghue, United States Attorney for the Eastern District of New York. “The Transnational Elder Fraud Strike Force will use every resource available to ensure that, no matter where they are, perpetrators of elder fraud will be stopped and prosecuted.”
“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”
“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”
Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement, and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.
The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect, and financial exploitation.
The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least three million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Justice Department Announces New Transnational Elder Fraud Strike ForceRead the Press Release
Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Department of Justice’s Consumer Protection Branch, the U.S. Attorneys’ Offices for six federal districts, the FBI, the U.S. Postal Inspection Service, and other organizations. The Strike Force will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing, and tech-support fraud schemes.
The Transnational Elder Fraud Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office.
“Fraud against the elderly is on the rise,” said Attorney General Barr. “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”
“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”
“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”
Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement, and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.
The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect, and financial exploitation.
The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least 3 million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Justice Department Announces New Transnational Elder Fraud Strike ForceRead the Press Release
WASHINGTON – Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Department of Justice’s Consumer Protection Branch, the U.S. Attorneys’ Offices for six federal districts, the FBI, the U.S. Postal Inspection Service, and other organizations. The Strike Force will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing, and tech-support fraud schemes.
The Transnational Elder Fraud Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office.
“Fraud against the elderly is on the rise,” said Attorney General Barr. “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”
“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”
“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”
“Florida is home to millions of our nation’s seniors, who are often targeted for fraud through unscrupulous means,” said U.S. Attorney Maria Chapa Lopez, Middle District of Florida. “The Transnational Elder Fraud Strike Force will enhance our ability to coordinate resources beyond our borders, and pursue and prosecute those who seek to prey upon one of our most vulnerable populations.
Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement, and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.
The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect, and financial exploitation.
The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least 3 million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Jacksonville Woman Pleads Guilty to Submitting A False Claim to FEMA for Disaster Assistance Benefits Involving Hurricane IrmaRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Kimberly Dues (37, Jacksonville) has pleaded guilty to disaster assistance fraud involving fraudulently obtained FEMA benefits. She faces up to 30 years in federal prison and payment of restitution to the United States in the amount of $32,038. A sentencing date has not yet been set.
According to court documents, in November 2017, the U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG) received information that Dues had provided false information to the Federal Emergency Management Agency (FEMA) in order to receive disaster assistance benefits. Upon investigation, DHS-OIG determined that, in September 2017, Dues submitted an application to FEMA for disaster assistance benefits, concerning Hurricane Irma, through the Individuals and Households Program. A review of the application revealed that Dues had falsely claimed that her primary residence in Jacksonville, Florida, was damaged due to the hurricane. Based on the purported storm damage, Dues claimed that she had to relocate and was in need of disaster assistance benefits. Because of the false statements made in her application, Dues fraudulently obtained $32,038 from FEMA.
This case was investigated by the Department of Homeland Security - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Kevin C. Frein. This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] (link sends e-mail). You may also visit www.justice.gov/usao-mdfl.
Illegal alien sentenced to two years in prison for re-entering the U.S. after six prior deportationsRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Andres Garcia-Mora, 28, a Mexico citizen, was sentenced Wednesday to two years in prison by Chief U.S. District Judge S. Maurice Hicks Jr. for illegally re-entering the United States after being previously deported six times.
Louisiana State Police arrested Andres Garcia-Mora on August 23, 2018, in Bossier Parish for possession of a controlled substance, driving while intoxicated, no driver’s license and an open container. Louisiana State Police notified Homeland Security Investigations agents about the arrest, who then discovered that Garcia-Mora was in the United States illegally after being removed from the United States six times between 2009 and 2016. During that time, Garcia-Mora used at least eight aliases in his attempts to enter the United States. The last removal took place on December 30, 2016, near Del Rio, Texas. Garcia-Mora’s criminal history includes three convictions for federal immigration offenses and three state misdemeanor convictions in Texas and Louisiana for simple battery, a liquor violation and driving while intoxicated. He pleaded guilty to the current federal charge on May 30, 2019, and faces removal from the United States after serving his prison term.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
Illegal Alien Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Andres Barrientos-Flores, 33, an illegal alien from El Salvador, pled guilty yesterday before U.S. District Judge Sul Ozerden to unlawful return of an alien after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Barrientos-Flores is scheduled to be sentenced on Thursday, September 5, 2019, at 9:00 a.m., by Judge Ozerden. He faces a potential two years in federal prison followed by one year of supervised release, a $250,000 fine, and Department of Homeland Security removal proceedings.
On March 26, 2019, on Interstate-10, in Jackson County, an agent of the South Mississippi Metro Enforcement Team observed a 2019 white GMC Yukon traveling in the far-left passing lane below the posted speed limit and impeding the flow of traffic. The agent initiated a traffic stop on the SUV, which was bearing Maryland license plates. Later, a U.S. Border Patrol Agent arrived on the scene to assist and made contact with the driver and identified Barrientos-Flores as a passenger in the SUV. Both men were later transported to the U.S. Border Patrol station in Gulfport for further processing and investigation.
Barrientos-Flores was positively identified by a computer scan of his fingerprints into a Homeland Security Database that automatically accessed his official immigration records. He was determined to have unlawfully returned to the United States after having been previously removed on August 24, 2018. He was prohibited from entering, attempting to enter, being in the United States, or applying for admission, for a period of 10 years.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, the United States Border Patrol, Homeland Security Investigations, the South Mississippi Metro Enforcement Team, and the Jackson County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Highland, Indiana Man Sentenced to 30 Years in PrisonRead the Press Release
HAMMOND –Alan Piwowar, 34, of Highland, Indiana was sentenced today by U.S. District Court Judge Joseph S. Van Bokkelen after pleading guilty to production and possession of child pornography, announced U.S. Attorney Kirsch.
Piwowar was sentenced to serve a total of 360 months in prison, 15 years of supervised release and ordered to pay $50,000 in restitution.
According to his plea agreement, in October 2008, Piwowar knowingly caused a 2-year-old child in his custody, care, or supervisory control to engage in sexually explicit conduct and took photographs. Piwowar admitted that he touched the child with the intent to sexually arouse or gratify himself. In April 2018, Piwowar also possessed depictions of other minors under the age of 18 being caused to engage in sexually explicit acts with adults. After learning he was under investigation for child pornography offenses, Piwowar sought to destroy evidence of his crimes.
This case was investigated by the Federal Bureau of Investigation. The case was handled by Assistant U.S. Attorney Jill R. Koster.
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Grand Jury Charges Ponca City Pair in Steroid ConspiracyRead the Press Release
OKLAHOMA CITY – A federal grand jury has returned an indictment charging PATRICK LEE AMADORE TRAVIS, 25, and MIRANDA NICHOLE RHYNARD, 26, both of Ponca City, with illegal distribution of steroids, announced United States Attorney Timothy J. Downing.
According to the indictment, Travis and Rhynard conspired to distribute anabolic steroids, which are Schedule III controlled substances, from March 2018 until November 1, 2018. The charges also include unlawful importation of pharmaceuticals with a counterfeit Viagra trademark, manufacturing anabolic steroids, trafficking in counterfeit goods, and possession of anabolic steroids with intent to distribute. In addition, Travis is charged with possessing a Kel-Tec PMR-30 pistol in furtherance of anabolic steroid trafficking.
An affidavit in support of a search warrant issued on June 11, 2019, alleges that Travis and Rhynard own an internet-based company called Swolescriptz Research Lab and Swole-RX. According to the affidavit, investigators found three pill presses, bags of powder from China, and a firearm in a cargo trailer when they visited the defendants’ Ponca City property on November 1, 2018. The affidavit states laboratory tests have confirmed the presence of anabolic steroids.
The affidavit further reports the defendants continued operating their business after the November 2018 visit from investigators. During this time, they allegedly offered for sale substances they claimed would cause "increase in muscle mass," although they included a disclaimer that "[a]ll products listed on this website are for research purposes only and are not for human consumption."
Travis and Rhynard were arrested in Ponca City on the morning of June 11 and appeared for arraignment in Oklahoma City that afternoon. Rhynard was released subject to conditions pending trial. Travis has been temporarily detained in advance of a detention hearing scheduled for June 14.
If convicted of conspiracy, manufacturing anabolic steroids, or possession of anabolic steroids with intent to distribute, both defendants could be imprisoned for ten years on each count and be subject to a fine of $500,000 per count. These charges also call for a term of supervised release of not less than two years and up to life. Trafficking in counterfeit goods could carry a prison term of twenty years and a $5,000,000 fine. Unlawful importation could result in a prison term of twenty years and a fine of $250,000. Finally, a conviction on the gun count against Travis would trigger a five-year mandatory minimum sentence, consecutive to any other imprisonment imposed.
This case is the result of an investigation by the Drug Enforcement Administration and the 8th District Attorney’s Drug and Major Crime Unit, with assistance from the Ponca City Police Department and U.S. Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Matthew P. Anderson.
The public is reminded that these charges are merely allegations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Georgia Optician Pleads Guilty to Identity TheftRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that JOHN ANTHONY MARSH, age 55, of Atlanta, Georgia pled guilty yesterday to a one-count bill of information charging him with identity theft in violation of Title 18, United States Code, Section 1028(a)(7).
According to court documents, in 2016, MARSH opened a business in New Orleans called Magazine Medical Group & Associates, LLC (“Magazine Medical”) that provided ophthalmological services. MARSH opened Magazine Medical at the same location as another medical clinic that had provided ophthalmological services, Business 1. Between June 2016 and September 2016, MARSH used Business 1’s name when submitting claims for medical services to Medicare and other health care benefit programs to make it appear that those purported medical services were performed at Business 1.
Additionally, according to court documents, during that same time period, MARSH used the National Provider Identifier of Physician 1, who previously worked for Business 1, to submit claims to Medicare and other health care benefit programs making it appear as though Physician 1 performed medical services at Magazine Medical. Physician 1 neither worked for MARSH or Magazine Medical nor treated any patients for ophthalmological services at that clinic.
As reimbursement for the fraudulent claims that MARSH was responsible for submitting through Magazine Medical, Medicare and other health care benefit programs issued checks to Business 1 and Physician 1. MARSH received and deposited these checks into his bank account. In total, between June 2016 and September 2016, MARSH fraudulently caused billings to Medicare and other health care benefit programs totaling approximately $77,198 for medical services that were not provided by Physician 1, and received approximately $20,669.67 for these fraudulent claims.
MARSH faces a possible maximum sentence of 15 years imprisonment and a $250,000 fine.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Department of Health and Human Services for their work investigating the case.
The case is being prosecuted by Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Duane A. Evans.
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Georgia Inmate Pleads Guilty to Conspiracy to Commit Wire Fraud for His Role in Grand Jury ScamRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that NICHOLAS ROTUNDA ALLEN, age 39, an inmate in Jimmy Autry State Prison in Pelham, Georgia, pleaded guilty yesterday before United States District Judge Martin L.C. Feldman to conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 371, for his role in perpetrating a grand jury fraud scam and victimizing a resident of the Eastern District of Louisiana.
According to court documents, ALLEN was sentenced to a period of incarceration as part of a felony conviction on February 22, 2016 in the State of Georgia. He began serving his sentence at Jimmy Autry State Prison, a Georgia Department of Correction facility located in Pelham, Georgia, on about March 30, 2016. Jimmy Autry State Prison housed approximately 1,700 adult male inmates and had approximately 119 correctional officers employed by the Georgia Department of Corrections overseeing them. In about 2016, several inmates and correctional officers at Jimmy Autry State Prison were the subject of a series of federal prosecutions related to a scheme by which inmates bribed correctional officers to smuggle contraband, namely cellular phones, into the prison.
On November 6, 2017, and November 7, 2017, ALLEN used a contraband cellular telephone to contact Victim A, a resident of Metairie, Louisiana, from inside the state prison. Although he was not permitted to have a phone inside the jail, ALLEN obtained the phone from a non-incarcerated co-conspirator. The cellular telephone ALLEN used was associated with two Georgia-based phone numbers, but he attempted to avoid detection and make it appear as though he was located within the New Orleans area by utilizing a “spoofing” application that made it appear to Victim A that someone with a local phone number, (504) XXX-5237, was contacting him.
ALLEN pretended to be a Deputy United States Marshal and informed Victim A that he had unlawfully failed to report for jury duty service for the United States District Court for the Eastern District of Louisiana. ALLEN further told Victim A that because he had failed to appear for jury duty, a warrant had been issued out of the Eastern District of Louisiana for Victim A’s arrest. ALLEN said that Victim A had the choice of either being arrested on the warrant or paying a $5,500 fine to have the arrest warrant dismissed. Victim A paid the fine by buying a series of pre-paid cash cards and giving the account numbers to ALLEN. Thereafter, Victim A paid ALLEN by buying a total of eleven (11) pre-paid cash cards and giving the cards’ account numbers to ALLEN.
ALLEN faces a maximum term of imprisonment of five years, a fine of up to $250,000, three years supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Feldman has been scheduled for August 28, 2019.
U.S. Attorney Strasser praised the work of the United States Marshal Service and the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg, Supervisor of the Public Corruption Unit, is in charge of the prosecution.
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Four sentenced in stolen Great Falls fireworks investigationRead the Press Release
GREAT FALLS—Four men convicted in the 2017 theft of explosives intended for a Fourth of July fireworks display in Great Falls were sentenced this week to terms ranging from probation to prison, U.S. Attorney Kurt Alme said.
The defendants each pleaded guilty earlier this year to crimes associated with the theft of $18,000 worth of commercial fireworks from a trailer in Great Falls. The explosives were intended to be used at the City of Great Falls’ Fourth of July display. On July 3, 2017, a man called the Great Falls Police Department to report that someone had stolen the fireworks. The man had locked the trailer but when he arrived at the trailer during evening of July 3, he noticed someone had cut the lock.
U.S. District Judge Brian M. Morris presided at the sentencings.
On June 12, Judge Morris sentenced Kris Harding, 48, of Sun Prairie, to three years of probation and to 200 hours of community service. Harding pleaded guilty to being a prohibited person in possession of explosives. Harding was prohibited from possessing explosives because of a prior felony conviction.
Judge Morris also sentenced Rand Emineth, 27, of Great Falls, to 18 months in prison, three years of supervised release and 200 hours of community service. Emineth pleaded guilty to possession of stolen explosives.
On June 13, Judge Morris sentenced Shevyn Eugene Marshall, 35, of Great Falls, to six months in prison, three years of supervised release and 400 hours of community service. Marshall pleaded guilty to possession of stolen explosives.
Judge Morris also sentenced William James Outten, 27, of Great Falls, to 16 months in prison, three years of supervised release and 200 hours of supervised release. Outten pleaded guilty to possession of stolen explosives.
On July 4, 2017, law enforcement began receiving information about the fireworks theft and that Harding may have been involved, the prosecution said. A witness told investigators that he helped Harding and Outten, who was Harding’s roommate, unload about a dozen totes of fireworks from Harding’s pickup truck into their living room in Sun Prairie.
Law enforcement found fireworks in Harding’s pickup and a label on the explosives identified that they were from a Helena company that had supplied the fireworks for the Fourth of July show.
On July 5, 2017, agents received additional information that Emineth was in possession of stolen fireworks. The agents learned that Emineth had arrived at a home in Great Falls on the evening of July 2, 2017 and unloaded plastic tubes that contained fireworks and detonator devices. Officers went to the home and found Emineth, who told them Outten had been trying to rid of fireworks and had called him to inform him that police had searched the Sun Prairie home.
In addition, a man went to the Great Falls Police Department on July 11, 207 and wanted to turn in stolen fireworks. The man said Emineth had come to his home mid-day on July 2, 2017 and wanted to store bags in his shed. The man told officers that Emineth placed five bags in the shed and left. The man then learned about the stolen fireworks, went to the shed and found the fireworks along with yellow plastic control boxes. The man took the bags, which contained fireworks with the same label as the Helena company’s, to the police station.
And on July 12, 2017, another man contacted the police and said that co-defendant Marshall had provided him with some of the stolen fireworks and that he wanted to return them to the police department. The man dropped off the fireworks and agents found that they too, contained the Helena company’s label. The man told police that Marshall asked him if he wanted to buy fireworks. The man asked if the explosives were the stolen fireworks mentioned on the news, and Marshall said that they were. Marshall told the man he had paid $100 for the fireworks and showed him the explosives. Marshall admitted to officers that Emineth had approached him about the stolen fireworks and had placed them in the car he was driving but that they did not exchange money.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Fort Washakie Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Mark A. Klaassen announced that Chief U.S. District Judge Scott W. Skavdahl sentenced a Fort Washakie, Wyoming man on June 12, 2019 on four counts of Abusive Sexual Contact.
Kyle James Ferris, age 35, was sentenced to serve a forty-month prison term, followed by 10 years of supervised release, and ordered to pay a special assessment of $400. He is further required to register as a sex offender. Ferris pled guilty to the four counts of Abusive Sexual Contact on March 20, 2019. The convictions stem from multiple incidents between August 2012 and November 2013, in which Ferris engaged in sexual contact with a thirteen-year-old victim.
The Bureau of Indian Affairs and the Federal Bureau of Investigation investigated this case. After sentencing, the court immediately remanded Ferris to the custody of the U.S. Marshals Service.
Former Village of Posen President Guilty of EmbezzlementRead the Press Release
CHICAGO — The former president of the village of Posen pleaded guilty in federal court today to charges he embezzled money from the south suburb and spent it at casinos.
DONALD W. SCHUPEK, 79, of Posen, pleaded guilty to one count of embezzlement. The conviction carries a maximum penalty of ten years in prison and a fine of up to $250,000, plus mandatory restitution. U.S. District Judge Robert W. Gettleman set sentencing for Sept. 12, 2019, at 10:30 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Terry Kinney.
According to his plea agreement, Schupek, while serving as Posen president, directed the village bookkeeper to issue checks on the village’s checking account made payable to Schupek. From June 2014 to August 2016, Schupek directed the issuance of nine checks, totaling $27,000, the plea agreement states. At the time, Schupek did not inform the village treasurer nor the village board that he had issued these checks to himself.
Schupek admitted in the plea agreement that he converted the funds to his own use, including gambling expenses at two casinos in Joliet.
Former Rocky Mountain Bank official charged with fraud, money laundering and blackmailRead the Press Release
BILLINGS—Stephen Phillip Casher, a former Rocky Mountain Bank official, pleaded not guilty to multiple crimes in an alleged scheme to defraud the bank, U.S. Attorney Kurt Alme said today.
An indictment charges Casher, 45, of Billings, with two counts of bank fraud, one count of money laundering and one count of blackmail. The indictment is merely an accusation, and Casher is presumed innocent until proven guilty.
U.S. Magistrate Judge Timothy J. Cavan presided and continued Casher’s release pending further proceedings.
If convicted of the most serious crime, Casher faces a maximum 30 years in prison, a $1 million fine and five years of supervised release.
The indictment alleges Casher, who was Rocky Mountain Bank’s market president, defrauded the bank in September 2014 by approving a bank loan to Larry “L.J.” Price, for which Price was a guarantor, without disclosing the existence to the bank of other outside loans that Casher had arranged and was aware of. The indictment further alleges that Casher in February 2016 approved a bank loan to an entity controlled by Price without disclosing to the bank additional outside loans he and others had made to Price and without disclosing information concerning Price’s true net worth and cash liquidity.
The indictment also alleges Casher engaged in a monetary transaction that involved property derived from the bank fraud and that he demanded and received interest in real estate from an individual under a threat of informing about a violation of the law.
Pacer case reference. 19-65.
The progress of this may monitored through the U.S. District Court calendar and the PACER system. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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