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23 July 2019
U.S. Department of Justice to host Protecting Houses of Worship TrainingRead the Press Release
MISSOULA—The U.S. Attorney’s Office is hosting a training program on Wednesday, July 24, at Blessed Trinity Church to share best practices for security at houses of worship.
The Protecting Houses of Worship program will take place from 6 p.m. to 8:30 p.m. at the Blessed Trinity Parish, 1475 Eaton St., in Missoula.
The free program will provide faith-based leaders and community members an opportunity to discuss and learn how to prevent and respond to hate crimes against places of worship. Topics will include an overview of religious hate crimes, preventing and responding to active shooter situations, hate crimes statistics and symbols and securing places of worship.
Speakers include U.S. Attorney Kurt G. Alme and representatives from the Federal Emergency Management Agency, U.S. Department of Homeland Security and the Anti-Defamation League Pacific Northwest Regional Office.
The U.S. Department of Justice Community Relations Service and United States Attorney’s Office organized the program. Blessed Trinity Church is hosting the event.
All faith-based community leaders and members are welcome to attend. To obtain more information and/or RSVP for the event please e-mail [email protected].
Protecting Places of Worship forumXXX
U.S. Citizen Sentenced to Prison for Leading an International Counterfeit Currency Operation Headquartered in UgandaRead the Press Release
PITTSBURGH, Pa. - A U.S. citizen who resided in the Republic of Uganda, has been sentenced in federal court to six years and two months (74 months) in prison, to be followed by three years of supervised release, and was ordered to pay $230,890 in restitution on his conviction of conspiracy to manufacture/pass/transfer/sell counterfeit currency, conspiracy to launder money, and committing counterfeiting acts outside the United States, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Ryan Andrew Gustafson, aka Jack Farrel, aka WillyClock, 31.
At the time of his guilty plea, the court was advised that Ryan Gustafson was leading an international counterfeit U.S. currency operation headquartered in the Republic of Uganda, which flooded the United States and Uganda with more than $2 million in counterfeit Federal Reserve Notes. Although counterfeit Federal Reserve Notes were being manufactured and distributed in Uganda, by December 2013, these Ugandan-manufactured counterfeit bills were being passed in Pittsburgh-area retail stores and businesses, specifically, in Oakland, Carnegie and McCandless Township. The scheme quickly spread to cities around the country. The bills were being advertised, bought and sold on a Dark Net website created by Gustafson called Community-X that was dedicated to the selling and passing of these counterfeit bills.
According to additional information provided to the court, the participants were producing counterfeit $100, $50 and $20 bills, packaging the counterfeit currency disguised as "Give a Child Hope Today" pamphlets, and shipping the packages to individuals they met through online criminal forums. In total, approximately $1.8 million fake notes were passed and seized in Uganda. In the U.S., approximately $270,000 in counterfeit currency was passed and seized. The criminal conspirators were passing the counterfeit Federal Reserve Notes in exchange for legitimate currency in the United States, Uganda and other countries.
Upon his arrest in Uganda in December 2014, Gustafson was provided the option of returning to the United States to face prosecution or to stay in a Ugandan prison and face prosecution in Uganda. Gustafson choose to stay in a Ugandan prison. Due to the Gustafson being a U.S. citizen and failing to present his passport to demonstrate that he was legally permitted to be in Uganda, the Ugandan government ordered the Defendant deported. He arrived in Pittsburgh to face prosecution in this instant case in December 2015. This 74-month sentence is time to be served in the United States and does not allow the Defendant to seek further credit for any time served in Uganda.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Secret Service, Federal Bureau of Investigations, the U.S. Postal Inspection Service, and U.S. Customs and Border Protection for the investigation leading to the successful prosecution of Gustafson.
Two Spokane Men Sentenced for Their Roles in Unlawfully Distributing OpioidsRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced today that Dr. James Stein-Sheridan Shelby, age 50, of Spokane, Washington, and Timothy James Felch, age 36, also of Spokane, Washington, were sentenced after having pleaded guilty to conspiring to distribute opioid pain medications, hydrocodone and tramadol, without a legitimate medical purpose and outside the usual course of professional practice. Dr. Shelby also pleaded guilty to three separate counts of distributing hydrocodone without a legitimate medical purpose and outside the usual course of professional practice. Senior United States District Judge Lonny R. Suko sentenced Shelby to a 15-month term of home confinement, to be followed by a three-year term of probation. Shelby also surrendered his DEA Certificate of Registration and is no longer authorized to prescribe controlled substances. Senior United States District Judge Lonny R. Suko sentenced Felch to a 13-month term of imprisonment, to be followed by a three-year term of court supervision.
According to court documents and information disclosed during the court proceedings, the U.S. Drug Enforcement Administration (DEA), Tactical Diversion Squad, and U.S. Department of Health & Human Services (HHS), Office of the Inspector General (OIG), initiated a criminal investigation of Dr. Shelby, a dentist, after receiving information that he was distributing hydrocodone and tramadol, without a legitimate medical purpose and outside the usual course of professional practice to an individual identified as M.B. In April 2018, DEA and HHS OIG executed a warrant to search Shelby’s clinic, Indian Trail Dental Care. When interviewed by federal agents, Shelby immediately indicated he knew DEA agents were at his clinic because of his prescribing to M.B. Shelby stated he initially performed extensive dental work on M.B. and prescribed her hydrocodone when she complained of pain in the lower left side of her jaw with a lump. Shelby stated that he eventually became involved in an inappropriate relationship with M.B. and she became addicted to hydrocodone. Shelby also stated that it had been several years since M.B. had been a regular patient and he was ultimately responsible for the prescriptions. In furtherance of the conspiracy, Shelby used Felch and others by issuing numerous prescriptions in Felch’s name and in the names of others as a mechanism to provide M.B. with additional amounts of hydrocodone and tramadol.
United States Attorney Hyslop said, “The sentence imposed today holds Dr. Shelby and Mr. Felch accountable for illegally prescribing and distributing opioids. The United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting medical professionals who may prescribe pain medications to individuals for no legitimate medical purpose and outside the usual course of professional practice. I commend the DEA and HHS-OIG agents who investigated this case.”
This investigation was conducted by the United States Drug Enforcement Administration and the United States Department of Health & Human Services, Office of the Inspector General. This case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
Two More “Rip Crew” Members Sent to Federal PrisonRead the Press Release
McALLEN, Texas – Two men involved with a rip crew responsible for multiple home invasions and carjackings to steal narcotics in Hidalgo County have been ordered to prison, announced U.S. Attorney Ryan K. Patrick.
Miguel Marin Cerda, 31, pleaded guilty to possessing with the intent to distribute more than five kilograms of cocaine, while his nephew - Alfredo Avalos-Sanchez, 27 - pleaded guilty to conspiring to commit Hobbs Act robbery.
Today, U.S. District Judge Micaela Alvarez ordered Cerda to serve 130 months in prison, while Avalos-Sanchez received an 87-month-term of imprisonment. Cerda and Avalos-Sanchez are Mexican citizens who illegally resided in Mission. As such, they are expected to face deportation proceedings following their prison sentences.
In considering their violent crimes, Judge Alvarez stated the events forming the charges are incidents that have come to be expected in Mexico and other Central American countries which do not allow residents to feel safe. The court noted that even though some victims were often drug traffickers themselves, it does not excuse the defendants’ behavior. She furthered that drug trafficking is bad in itself, but is exacerbated when combined with carjackings and home invasions.
The defense argued their actions were mistakes, but the court concurred with prosecutors that these were intentional profit-driven actions. They continued to engage in conduct even after prior arrests for similar conduct and close calls with life and death events. Such instances included violent crimes involving totaled vehicles and multiple discharges of firearms which could have taken lives.
In imposing the prison terms, the court considered multiple offenses. As a result of the conspiracy, the organization terrorized local residents with multiple home invasions and carjackings as well as the distribution or attempted distribution of multiple kilograms of cocaine and hundreds of kilograms of marijuana.
Specifically, the court considered their involvement in a carjacking March 12, 2017, in McAllen in which co-conspirators took a car believed to contain a controlled substance. Another instance occurred in Pharr in April 2017 which involved the discharge of firearms in a residential neighborhood in efforts to steal approximately 14 kilograms of cocaine contained within two vehicles.
The men also were also part of a home invasion June 6, 2017, in McAllen. The organization actually entered the wrong residence and terrorized a family, including a pregnant female.
Cerda was further held partially accountable for an April 2017 home invasion in San Juan, in which other co-conspirators assaulted juveniles in efforts to steal multiple kilograms of cocaine.
Cerda and Avalos-Sanchez have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Others who have also pleaded guilty in the conspiracy and are pending sentencing include Roberto Lee Rodriguez aka el Tio or Pica, 39, and Sergio Alejandro Gallegos aka Tovy, both of Mission; and Mexican nationals Jose Garcia-De La Torre aka Coco, 22, Carlos Guadalupe Aquino-Pacheco aka Tomy, 20, Gustavo Angel DeLeon-Covarrubias aka Tripa, 19, Jose Arturo Reyes-Sanchez aka Gordo, 19; and Cesar Alejandro Tovar-Guillen aka Nucho or el Sobrino, 31.
They all also remain in custody.
The FBI Safe Streets Task Force and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol, Immigrations and Customs Enforcement’s Homeland Security Investigations, Hidalgo County Sheriff’s Office, Texas Department of Public Safety Regional Crime Lab and police departments in McAllen, Pharr, San Juan, Mission and Palmview. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade are prosecuting the case.
Three Romanian citizens sentenced to federal prison for their roles in a multi-million dollar computer hacking and fraud schemeRead the Press Release
ATLANTA - Teodor Laurentiu Costea, Robert Codrut Dumitrescu, and Cosmin Draghici have been sentenced to federal prison on wire fraud conspiracy, computer fraud and abuse, and aggravated identity theft charges. Their scheme originated from Romania and resulted in the illegal intrusion into computer servers in the United States. They also deployed phishing messages to thousands of victims and subsequently stole victims’ social security numbers and bank account information.
“These defendants sought to victimize citizens of the Northern District of Georgia and ultimately across the United States,” said U.S. Attorney Byung J. “BJay” Pak. “We are warning cyber-criminals no matter where they reside, that this office and our law-enforcement partners are committed to finding you, extraditing you to this district, and prosecuting you.”
“The FBI won’t let geographic boundaries stop us from pursuing and prosecuting those persons who cause tremendous financial pain to U.S. citizens,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “These three criminals felt like they were safe in Romania hiding behind their computers. Hopefully their sentences send a message to anyone who thinks they can prey on our citizens from afar and get away with it.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately October 2011 through February 2014, Robert Codrut Dumitrescu, Teodor Laurentiu Costea and Cosmin Draghici conducted a “vishing” and “smishing” scheme from Romania. “Vishing” is a type of phishing scheme that communicates a phishing message, or a message that purports to be from a legitimate source, in this case the victims’ banks, through a voice recording. “Smishing” is similar to “vishing,” but communicates a phishing message through text messages.
As part of the scheme, the defendants compromised computer servers located in the Northern District of Georgia, and elsewhere, and installed both interactive voice response and bulk emailing software. That software initiated thousands of telephone calls and text messages to victims in the Northern District of Georgia, and across the United States, tricking them into disclosing Personally Identifiable Information (PII) such as financial account numbers, PINs, and Social Security Numbers.
When a victim received a telephone call, they would be greeted by a recorded message falsely claiming to be a bank. The interactive voice response software would then prompt the victim to enter their PII.
When a victim received a text message, the message purported to be from a bank and directed the recipient to call a telephone number hosted by a compromised Voice Over Internet Protocol server. When the victim called the telephone number, they were prompted by the interactive voice response software to enter their PII. The stolen PII was stored on the compromised computer servers and accessed by Dumitrescu and Costea, who then sold or used the fraudulently obtained information with the assistance of Draghici.
At the time of their arrests in Romania, Dumitrescu possessed 3,278 financial account numbers, Costea possessed 36,050 financial account numbers, and Draghici possessed 3,465 financial account numbers – all fraudulently obtained through this scheme. Based upon these numbers alone, the loss amount exceeded $21,000,000.
- Robert Codrut Dumitrescu, 41, of Ploiesti, Romania, was sentenced to seven years, three months in prison to be followed by three years of supervised release;
- Teodor Laurentiu Costea, 43, of Ploiesti, Romania, was sentenced on June 11, 2019 to eight years and two months in prison to be followed by three years of supervised release.
- Cosmin Draghici, 30, also of Ploiesti, Romania, was sentenced on June 12, 2019 to four years, three months in prison to be followed by three years of supervised release.
Dumitrescu, Costea, and Draghici were convicted of these charges following their guilty pleas earlier this year. A restitution hearing has been scheduled for August 30, 2019. Costea, Dumitrescu, and Draghici were extradited from Romania to Atlanta in 2018 to face these charges.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, prosecuted the case, with valuable assistance from the Department of Justice’s Office of International Affairs.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Sturgis Man Sentenced for Armed RobberyRead the Press Release
United States Attorney Ron Parsons announced that a Sturgis, South Dakota, man has been sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court, for the November 2017 armed robbery of the Phillips 66 Speedy Mart in Spearfish.
Matthew Wainman, age 26, pleaded guilty to Interference with Commerce by Robbery and Conspiracy to Violate 18 U.S.C. § 924(c) on March 29, 2019. He was sentenced on July 22, 2019, to 57 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Two other co-defendants in this case were previously sentenced. David Jackson Jr., age 26, of Sturgis, pleaded guilty to Use and Brandishing of a Firearm During the Commission of a Crime of Violence. He was sentenced on November 30, 2018, to 7 years in federal prison. Adam Peters, age 22, of Belle Fourche, pleaded guilty to Interference with Commerce by Robbery and Use and Brandishing of a Firearm During the Commission of a Crime of Violence. He was sentenced on December 17, 2018, to 10 years in federal prison.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Spearfish Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Wainman was immediately turned over to the custody of the U.S. Marshals Service.
St. Louis County Doctor Indicted for Fraudulently Obtaining Opioid Narcotic Prescription DrugsRead the Press Release
St. Louis, MO –Angela K. Williams, M.D., 34, of Florissant, Missouri, was indicted by a federal grand jury on July 18, 2018 on two felony charges of fraudulently obtaining narcotic opioid prescription drugs.
According to the Indictment, Dr. Williams wanted to obtain prescription drugs that contained controlled substances for her own personal use, outside the bounds of professional medical practice and not for legitimate medical purposes. Accordingly, Dr. Williams used her own prescription pad to write and sign numerous prescriptions for controlled substances using other persons’ names, including prescriptions for the narcotic opioid pain relief drugs hydrocodone and oxycodone. Dr. Williams then went to the pharmacies and presented the prescriptions for the drugs, posing as a patient. Dr. Williams also fraudulently used another doctor’s prescription pad, name, and Drug Enforcement Administration number to write herself some additional controlled substance prescriptions.
If convicted, each charge carries a maximum penalty of 4 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
DEA St. Louis Division Special Agent in Charge William Callahan stated “The purpose of the DEA’s Diversion Control Program is to maintain the integrity of the supply chain of prescription drugs to the American public. The diversion of prescription drugs outside the bounds of professional medical practice puts the supply chain at risk and has the potential to jeopardize public safety. The DEA will continue to closely work with our law enforcement partners to prevent the illegal distribution of prescription drugs.”
This case is being investigated by the Drug Enforcement Administration, the Florissant Police Department, the Town and Country Police Department, and the St. John Police Department, with assistance from the Bureau of Narcotic and Dangerous Drugs of the Missouri Department of Health & Senior Services and the St. Louis County, Missouri Prosecuting Attorney’s Office.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Croix Man Pleads Guilty to Unlawful Possession of Firearm in a School ZoneRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Samuel Melendez age 43, of St. Croix plead guilty on July 23, 2019 in federal court to unlawful possession of a firearm in a school zone.
According to court documents, on October 8, 2018, Virgin Island Police Officers responded to the H & R Supermarket in Frederiksted after receiving a report concerning an individual brandishing a firearm. Melendez was located in the vicinity of the Frederiksted Vegetable Market in possession of a .380 operable firearm. Reportedly, officers discovered the weapon in Melendez’ waistband as they conducted a pat-down search. The firearm contained one chambered round of ammunition. Melendez did not have a license to possess the firearm. Upon further investigation, law enforcement officers learned that the location where Melendez was found in possession of the gun was within 1,000 feet of the St. Patrick’s Elementary School, a violation of federal law.
Melendez faces up to five years imprisonment for the offense, a fine of up to $250,000.00, and forfeiture of the firearm and ammunition. A sentencing date has been set for November 21, 2019.
The case was investigated by the Virgin Islands Police Department and Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
Skowhegan Man Sentenced to 15 Years for Receipt and Possession of Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Christopher Kruse, 51, of Skowhegan, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to 15 years in prison and 10 years of supervised release for possessing and receiving child pornography. He was also ordered to pay $50,000 in restitution, $10,200 in special assessments, and a $1,000 fine.
According to court records, in November 2017, Kruse used the internet to receive several videos depicting child pornography, with many of the images and videos depicting the sexual exploitation of prepubescent children by adult men. He added these videos to a collection of child pornography he had kept on his personal computer since 2015. The collection was discovered on November 28, 2017 when law enforcement agents executed a search warrant at Kruse’s home.
In imposing the sentence, Judge Walker noted that this case reflected “a grave concern to public safety that is greater than in the average case of possession of child pornography,” and that Kruse had “sought out and collected some of the most vile and disturbing images.”
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Penobscot County Sheriff’s Office and the Bangor and Skowhegan Police Departments. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sinaloa Cartel Associate Sentenced to 10 Year Prison Term for Drug TraffickingRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Jose Luis Muniz, age 38, of Pasco, Washington, was sentenced today after pleading guilty to conspiracy to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and five kilograms of cocaine. Senior United States District Judge Wm Fremming Nielsen sentenced Muniz to a 135-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison. Muniz was also ordered to pay a $7,500 fine.
According to information disclosed during court proceedings, Muniz was a member of the Bueno Drug Trafficking Organization (DTO), a part of the Sinaloa cartel. On behalf of the DTO, beginning in 2014 Muniz distributed large quantities of cocaine and kept track of the organization’s drug shipments and cash drug proceeds that were collected and returned to German Bueno, the DTO’s leader, in Sinaloa, Mexico. During the investigation, several ledgers were seized from Muniz’s residence and documented monthly narcotic shipments in excess of 100 pounds and the cash value for each shipment. In 2016, Bueno was murdered in Mexico. During sentencing, Senior Judge Nielsen commented about Muniz’s aggravated role in the DTO. Judge Nielsen further noted that Muniz had a stable source of legitimate employment but instead chose to align himself with a dangerous DTO responsible for importing, transporting, and distributing significant quantities of narcotics into the Eastern District of Washington.
United States Attorney Hyslop said, “The sentence imposed by the court removes a drug trafficker from our streets and sends a clear message to others who may choose to engage in such criminal activity. I commend the law enforcement officers with the U.S. Drug Enforcement Administration, U.S. Department of Homeland Security, Spokane Police Department, and Oregon State Patrol, who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. ”
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation was conducted by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was investigated by the Tri-Cities Resident Office of the U.S. Drug Enforcement Administration, the Spokane Resident Office of the U.S. Department of Homeland Security, the Spokane Police Department, and the Oregon State Patrol. This case was prosecuted by Stephanie Van Marter and Richard Barker, Assistant United States Attorneys for the Eastern District of Washington.
Shreveport investment advisor pleads guilty to bilking clients out of $3.5 millionRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Gregory Alan Smith, 55, a Shreveport investment advisor, pleaded guilty before Chief U.S. District Judge S. Maurice Hicks Jr. to conspiracy to commit wire fraud.
According to information presented in court, Smith used his influence and status as an investment advisor to persuade multiple victims to “invest” approximately $3.5 million with Smith and co-defendant Kirbyjon H. Caldwell. The victims’ investments were purportedly in historical Chinese bonds, which are bonds issued by the former Republic of China prior to losing power to the communist government in 1949. These bonds are not recognized by China’s current government and, accordingly, have no investment value.
Smith began approaching existing clients and acquaintances in the spring of 2013 about what he described as an opportunity to invest in Chinese historical bonds. His usual sales pitch to investors was that Caldwell, the senior pastor at Windsor Village United Methodist Church in Houston, Texas, was: (1) putting the bond deal together on behalf of investors, (2) had the bonds in his possession or was obtaining them and (3) was brokering a deal to sell the bonds. Smith also promised that by investing money with him and Caldwell, the victims would obtain a partial ownership of the bonds and would quickly receive exponential returns on their investments. The victims were not told of the true nature of the bonds nor were they informed that no previous investor had ever obtained the promised return on investment. The victims were encouraged to cash out any other investments they might have if they could not otherwise afford to participate.
After Smith made the fraudulent pitch, the victims were instructed to wire funds to various bank accounts under Caldwell’s control. The funds were then divided between Smith, Caldwell and others. Smith received $1.08 million of the total $3.5 million. He used it to pay down loans, purchase two luxury sport utility vehicles, place a down payment on a vacation property and maintain his lifestyle. After time passed and investors began to question why they had not received the promised returns, Smith and Caldwell offered excuses, defended the legitimacy of the deals and assured victim-investors that they would receive the promised returns.
Under the terms of his plea agreement, Smith faces five to seven years in prison. He also faces a $1 million fine, restitution, forfeiture and five years of supervised release. Smith’s sentencing is scheduled for December 11, 2019. Caldwell’s trial is scheduled for December 2, 2019.
The FBI conducted the investigation. Assistant U.S. Attorneys Seth D. Reeg and C. Mignonne Griffing are prosecuting the case.
U.S. Attorney Joseph noted that this case was included in the Justice Department’s largest-ever nationwide elder fraud sweep, which includes hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. A list of Elder Fraud cases by the Department of Justice is provided on this interactive map.
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice website at https://www.justice.gov/elderjustice. 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.
Sex Offender Pleads Guilty to Immigration and SORNA violationsRead the Press Release
CORPUS CHRISTI, Texas - A 57-year-old Guatemalan national has admitted to two federal felonies after sexual assault conviction, announced U.S. Attorney Ryan K. Patrick.
On or about July 19, 2002, Jose Paxtor-Chiroy was convicted of aggravated sexual assault of a five-year-old child in Harris County. Following his state prison sentence, federal authorities ordered he be deported from the United States and to not return. He was also ordered to register as a sex offender.
He had previously faced removal proceedings on two other occasions.
In the early morning hours of Feb. 27, 2018, authorities located Paxtor-Chiroy walking through a ranch near Sarita. He was attempting to avoid the Border Patrol (BP) checkpoint. At the time of his arrest, he admitted he unlawfully entered the United States by traveling across the Rio Grande River near Hidalgo County.
Under the Sex Offender Registration and Notification Act (SORNA), convicted sex offenders must provide registration updates annually or quarterly, depending on the reportable conviction. Today, Paxtor-Chiroy admitted in federal court that he failed to do so as required. He also pleaded guilty to illegal re-entry into the United States after deportation.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing Nov. 6, 2019. For the immigration offense, he faces up to 20 years in federal prison, while the failing to update his sex offender registration carries a potential 10-year-term of imprisonment. Both convictions also carry a potential $250,000 maximum fine. Not a U.S. citizen, he is again expected to face deportation proceedings.
Paxtor-Chiroy has been and will remain in custody pending that hearing.
Customs and Border Protection and the U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Sacramento Man Sentenced to 15 Years in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced David Patrick Seilheimer, 54, of Sacramento, today to 15 years in prison for receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between May 2015 and February 7, 2018, Seilheimer, used a file sharing program to find and download child pornography. Seilheimer had a prior conviction in Colorado for a crime relating to sexual abuse. Seilheimer was on Colorado state parole, and required to register as a sex offender when he was arrested in Sacramento.
This case was the product of an investigation by the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorneys Rosanne L. Rust and Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rosebud Woman Indicted on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Jacqueline Roberta Little Sack, age 41, was indicted on July 16, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 19, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in prison and/or a $5,000,000 fine, at least 4 years supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that between February 1, 2019, and July 16, 2019, Little Sack did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more methamphetamine.
The charge is merely an accusation and Little Sack is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Little Sack was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on July 22, 2019, by U.S. District Judge Roberto A. Lange.
Moses Left Hand Bull, age 27, was sentenced to 18 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Left Hand Bull was indicted by a federal grand jury on April 9, 2019. He pled guilty on May 28, 2019.
Left Hand Bull was convicted of Sexual Abuse of a Minor in August 2009. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. Between February 9, 2019, and March 5, 2019, Left Hand Bull failed to register and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Left Hand Bull was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Woman Sentenced for Theft of Federal and State FundsRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Theft of Government Property, Misuse of Funds by Representative Payee, and False Statement was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Connie Pates, age 38, was sentenced on July 22, 2019, to 5 years of probation, and was ordered to pay a $300 special assessment to the Federal Crime Victims Fund, $18,644.73 in restitution to the Social Security Administration, and $3,764 in restitution to the South Dakota Supplemental Nutrition Assistance Program (SNAP).
The conviction stems from Pates falsely claiming that a minor child was living with her in order to receive the child’s Title XVI Supplemental Security Income, as well as SNAP and Medicare benefits for herself and the child between May 2015 and July 2018 at Rapid City.
The investigation was conducted by the Social Security Administration Office of Inspector General. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Receipt of Child Pornography, Possession of Child Pornography, and Transportation of Obscene Matter.
Michael Richard Hanson, age 52, was charged on July 16, 2019. Hanson appeared before U.S. Magistrate Judge Daneta Wollmann on July 19, 2019, and pleaded not guilty to the charges. The maximum penalty upon conviction is 20 years in federal prison and/or a $250,000 fine, lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Hanson receiving and possessing computer images of child pornography, as well as obscene matter, at Rapid City between September 2010 and June 2019. The charges are merely an accusation and Hanson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Hanson was detained pending trial. A trial date has not been set.
Quad/Graphics and LSC Communications Abandon Merger After Antitrust Division’s Suit to BlockRead the Press Release
The Department of Justice announced today that Quad/Graphics Inc. and LSC Communications Inc. have abandoned their planned merger.
The Department filed suit on June 20, 2019, to block the merger, alleging the transaction would combine the only two significant providers of magazine, catalog, and book printing services, denying publishers and retailers throughout the country the benefits of competition that has spurred lower prices, improved quality, and greater printing output. The case was scheduled for trial in the U.S. District Court in Chicago on Nov. 14, 2019.
“This result is a victory for American consumers and publishers, and a testament to the Division’s resolve to enforce the antitrust laws,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Had this merger gone forward, it would have harmed competition that benefits publishers, retailers, and, ultimately, consumers through lower prices and greater availability of printed products from popular books to grade school textbooks.”
The magazine, catalog, and book printing services offered by Quad and LSC include the printing, finishing, and distribution of publications to newsstands, retail facilities, or the postal service for delivery to consumers’ homes. Quad and LSC are by far the most significant integrated printers in the United States and are relied upon by many of the largest publishers and retailers to ensure that high-quality products are printed and distributed on time.
Quad/Graphics Inc. is a Wisconsin corporation headquartered in Sussex, Wisconsin. It offers a variety of printing services, including magazine, catalog, and book printing services, to publishers across the country. In 2018, Quad’s revenues were approximately $4.2 billion.
LSC Communications Inc. is a Delaware corporation headquartered in Chicago, Illinois. In 2016, it was spun off from printing firm R.R. Donnelley. LSC offers a similar set of magazine, catalog, and book printing services as Quad. In 2018, LSC’s revenues were approximately $3.8 billion.
Philadelphia-Based Pharmacy Owners Agree to Pay $400,000 to Resolve False Claims Act LiabilityRead the Press Release
PHILADELPHIA, PA – United States Attorney William McSwain announced that the owners of E-Z Pharmacy II in Philadelphia have agreed to pay $400,000 to resolve liability under the False Claims Act.
Darshan Bapa Inc., doing business as E-Z Pharmacy II, and Natverbhai Patel will together pay $400,000 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed during the period November 9, 2013 to December 31, 2016. These medications include Apidra, SoloSTAR, Renvela, Lantus, Revatio, Xifaxan, and Enbrel.
“Medicare fraud is a priority for our Office,” said First Assistant U.S. Attorney Jennifer Arbittier Williams. “Taxpayer dollars should not be wasted on fraud and abuse, and our Office will continue to scrutinize and pursue pharmacies that engage in such conduct. We appreciate E-Z Pharmacy II's willingness to promptly negotiate a resolution in this matter.”
“I also want to thank the Office of Audit Services,” Williams said, referring to the Philadelphia component within the Department of Health and Human Services, Office of the Inspector General. “Its referral of this matter to law enforcement made this result possible.”
“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayers dollars are only spent on bona fide medical claims.”
The settled civil claims are allegations only. There has been no determination of civil liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Deborah W. Frey, Civil Chief Gregory B. David, and Auditor George Niedzwicki.
Philadelphia Brothers Charged with Violating Federal Drug and Gun LawsRead the Press Release
JOHNSTOWN, Pa. – Two residents of Philadelphia, Pa., were indicted on July 9, 2019, by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The six-count first superseding indictment named brothers John T. Terry, 44, and Gerald Terry, 50, as defendants.
According to the first superseding indictment presented to the court, between March 30, 2018, and April 4, 2018, John Terry and Gerald Terry conspired to distribute and to possess with the intent to distribute more than 500 grams of a mixture and substance containing a detectable amount of methamphetamine and cocaine. Also, on April 4, 2018, they were found in possession of a loaded Smith & Wesson M&P Shield .40 caliber semi-automatic pistol. On June 2, 1998, John Terry was convicted in United States District Court for the Eastern District of PA, of interference with interstate commerce by robbery, which is a crime punishable by imprisonment for a term exceeding one year. On March 13, 2012, Gerald Terry was convicted in the Court of Common Pleas of Philadelphia County, PA, of aggravated assault, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms. John Terry and Gerald Terry are also charged with possessing that same firearm in furtherance of a drug trafficking crime.
The law provides for a maximum sentence of life in prison and a fine of up to $31,000,000 or both for each of the defendants. Under the Federal Sentencing Guidelines, the actual sentence imposed on each of the defendants would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Arnold Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police SHIELD Unit and Somerset Turnpike Barracks conducted the investigation that led to the prosecution of John Terry and Gerald Terry.
Patient Recruiter Pleads Guilty in Multi-Million Dollar Tricare FraudRead the Press Release
Assistant U. S. Attorney Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – July 23, 2019
SAN DIEGO – Former U.S. Marine Bradley White pleaded guilty in federal court today to fraud charges, admitting that he participated in a scheme that bilked the military health care program known as TRICARE out of more than $65 million.
White, the sixth of eight defendants to plead guilty in the case so far, admitted as part of his guilty plea that he fraudulently recruited patients in return for a percentage of the amount TRICARE reimbursed for compounded medications that his sham patients ordered.
White was charged on June 20, 2019, and entered his guilty plea to conspiracy to commit health care fraud before U.S. Magistrate Judge Bernard G. Skomal. Sentencing is set for October 18, 2019 before U.S. District Judge Janis L. Sammartino.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient requires a particular dosage or application or is allergic to a dye or other ingredient.
According to the guilty plea, a team of individuals, including White, worked to recruit and pay Marines, primarily from the San Diego area, and their dependents – all TRICARE beneficiaries – to obtain compounded medications that would be paid for by TRICARE. This information was sent to Choice MD, the Tennessee medical clinic that employed Drs. Carl Lindblad and Suzy Vergot. Drs. Lindblad and Vergot then wrote prescriptions for the TRICARE beneficiaries, despite never examining the patients in person. Once signed by the doctors, these prescriptions were not given to the beneficiaries, but sent directly to particular pharmacies controlled by co-conspirators, which filled the prescriptions and billed TRICARE at exorbitant prices. TRICARE then reimbursed the pharmacy, and which in turn paid kickbacks – as a percentage of the TRICARE reimbursement -- to the pyramid scheme of recruiters.
Both Dr. Lindblad and Dr. Vergot as well as Candace Craven, a nurse practitioner at Choice MD, have pleaded guilty for their roles in the conspiracy to commit health care fraud. CFK, Inc., the corporate owner of one of the pharmacies, has also pleaded guilty as part of this investigation.
Josh Morgan, another former Marine from San Diego, also pleaded guilty in March 2018 for his role in recruiting TRICARE beneficiaries to fraudulently receive these prescriptions.
According to court documents, between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – Drs. Lindblad and Vergot authorized 4,442 total prescriptions. Over this time, their co-conspirators billed TRICARE $65,679,512 for these prescriptions. For his part, White admitted that he recruited patients who billed TRICARE over $7.6 million, for which he was paid over $195,000.
White was the eighth defendant charged in relation to this fraud scheme and the sixth to plead guilty. The two remaining defendants are Jimmy and Ashley Collins, owners of Choice MD. That case, 18CR0432-JLS, is still pending.
DEFENDANT Case Number 19-CR-2318-JLS
Bradley White Age: 31 Oakley, CA
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C § 1349
Maximum penalty: Ten years in prison and $250,000 fine or double loss amount
AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
Owner of La Crémaillère Arrested on Multiple Fraud ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of BARBARA MEYZEN, a/k/a “Bobbie Meyzen,” the owner and operator of La Crémaillère Restaurant in Banksville, New York, on multiple fraud charges. MEYZEN was arrested earlier today in Connecticut and will be presented this afternoon before United States Magistrate Judge Lisa Margaret Smith.
U.S. Attorney Geoffrey S. Berman said: “When Barbara Meyzen’s upscale clientele of bankers, celebrities, and other notable figures frequented her restaurant, they saw a stately French manor in a serene Westchester suburb. What they did not see was the alleged rampant financial fraud that was happening. As a result of her alleged fraud, Barbara Meyzen has potentially earned herself a reservation for one in federal prison.”
According to the allegations in the Complaint filed yesterday and unsealed today[1]:
MEYZEN has owned and operated the La Crémaillère Restaurant in Banksville, New York, since 1993. From August 2015 to July 2016, MEYZEN submitted applications for credit on behalf of La Crémaillère to at least nine lenders, factors, and financiers. In support of those applications, MEYZEN gave the potential lenders La Crémaillère’s bank statements that she had modified to change negative balances to positive balances; to remove references to checks returned for insufficient funds; and to reduce service fees. For example, MEYZEN modified one month’s statement to change a negative beginning balance of $32,865.57 to a positive beginning balance of $27,766.29; to change from negative to positive the negative ending balance for that month of $5,268.13; and to change service charges of $2,385.60 to $8.00. When one lender discovered that MEYZEN had altered the bank statements, MEYZEN created an email account in the name of one of the bank’s officers and sent the lender an email in which she, in the guise of the bank officer, told the lender that the statements were genuine.
MEYZEN also falsely represented to the same lender that the second mortgage on the restaurant’s property in Banksville had been discharged. She created a false satisfaction of mortgage on which she forged the signature of a representative of the restaurant’s second mortgagee, who is MEYZEN’s relative by marriage. MEYZEN filed the false satisfaction of mortgage with the Westchester County Clerk, paid the clerk’s filing fee, and sent a copy of the filed satisfaction of mortgage to the lender. MEYZEN later denied filing the false satisfaction of mortgage or paying the filing fee when she was interviewed by Special Agents of the FBI. She told the FBI that she believed a loan broker with whom she had worked in the past, and whom she identified by name, had filed the false satisfaction of mortgage.
Throughout the summer of 2017, MEYZEN charged more than $80,000 in food and restaurant supplies to one of the restaurant’s customers who had left her credit card number on file at the restaurant. When the customer discovered the charges, MEYZEN claimed the charges were a mistake and repeatedly promised to resolve the problem. MEYZEN gave the customer two checks in a total amount of $32,000 but the checks bounced. When she was interviewed by the FBI, MEYZEN denied knowing anything about unauthorized charges to the customer’s credit card or ever speaking with the customer about the unauthorized charges. MEYZEN also denied giving the customer checks.
Meyzen Family Realty Associates, LLC, which owns the real property from which the restaurant operates, filed for bankruptcy in the U.S. Bankruptcy Court in White Plains in September 2018. La Crémaillère Restaurant Corp., which operates the restaurant, filed for bankruptcy in April 2019. MEYZEN is a part owner of both entities. In May 2019, MEYZEN misled the office of the United States Trustee, which oversees bankruptcy cases, about insurance coverage on the restaurant property. MEYZEN caused her bankruptcy counsel to give the United States Trustee and an attorney for Meyzen Family Realty’s largest creditor documents indicating that the property was insured when, in fact, the insurance coverage had been canceled months earlier for nonpayment. MEYZEN knew that the coverage had been canceled because her insurance broker had communicated with her several times about the cancellation of the policies. In June 2019, MEYZEN falsely testified under oath in a deposition conducted by the United States Trustee that she was not aware that the insurance had been canceled when she caused her attorney to turn the documents over to the United States Trustee.
Two days after La Crémaillère filed for bankruptcy in April 2019, MEYZEN opened a bank account in her name and diverted more than $40,000 of the restaurant’s credit card receipts to that account. MEYZEN used a portion of that money to make payments to a food distributor and to an in-home nursing service. This account was closed on May 1, 2019. On May 7, 2019, MEYZEN opened an account in the name of Honey Bee Farm, LLC, at another bank and diverted La Crémaillère’s credit card receipts, as well as $20,000 in advances on La Crémaillère’s future credit card revenue, to that account. MEYZEN used a portion of that money to make a payment on Meyzen Family Realty’s mortgage and to pay food distributors, two wine wholesalers, a commercial trash service, a tableware and china company, and an employee of La Crémaillère.
* * *
MEYZEN, 57, of Redding, Connecticut, has been charged with one count of aggravated identity theft, which carries a maximum sentence of 20 years in prison and a mandatory minimum sentence of two years in prison; one count of wire fraud and one count of mail fraud, each of which carries a maximum sentence of 20 years in prison; one count of credit card fraud, which carries a maximum sentence of 15 years in prison; two counts of making false statements, each of which carries a maximum sentence of five years in prison; and one count of concealing a debtor’s property, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
The charges in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the FBI and the United States Trustee’s Office for Region 2.
The prosecution of this case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
North Carolina Felon Admits Role in Gun Trafficking SchemeRead the Press Release
CAMDEN, N.J. – A convicted felon from North Carolina today admitted his role in an illegal scheme to buy weapons in Georgia and transport them to New Jersey for resale, U.S. Attorney Craig Carpenito announced.
Anthony Doyle, 28, of Fayetteville, North Carolina, pleaded guilty before U.S. District Judge Joseph Rodriguez in Camden federal court to an information charging him with conspiring to illegally traffic firearms and with being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:On January 25, 2018, law enforcement officers conducted a traffic stop in Deptford, New Jersey, of a car that was registered to Doyle. At the time of the traffic stop, Doyle was riding as the front seat passenger in the car. A woman named Anastacia Thomas, 26, who is also from Fayetteville, was driving the car.
During the stop, law enforcement officers observed a Glock handgun in plain view on the front seat passenger floor. This gun was loaded with 14 hollow tip bullets. The officers also observed a firearm box in the backseat of the car, next to a backpack. A search of the car and backpack revealed four additional handguns and two additional firearm boxes.
Law enforcement officers subsequently learned that Thomas had purchased all four of the handguns in the backpack on January 22, 2018, from a pawnshop in Jonesboro, Georgia. In addition, Thomas had purchased several other firearms from that same pawnshop over the course of multiple visits. Doyle had accompanied Thomas to the pawnshop on at least two of those visits.
The investigation revealed that from November 30, 2017, to January 25, 2018, Doyle and Thomas conspired and worked together to engage in the business of dealing in firearms without a license. Doyle, who was a convicted felon and therefore could not legally purchase firearms, was responsible for selecting the firearms, transporting the firearms up to New Jersey, finding buyers for the firearms, and selling the firearms at a profit. To accomplish these tasks, Doyle used his social media accounts to advertise the firearms for sale, negotiate pricing for the firearms, and arrange the firearm sales. Doyle’s online discussions regarding illegal firearm trafficking are documented in great detail over the course of hundreds of pages of online messages that were analyzed by law enforcement officers.
Meanwhile, Thomas, who was not a felon at the time of the traffic stop, was responsible for purchasing firearms from federally licensed firearms dealers. Thomas also helped Doyle transport the firearms to New Jersey for resale and handled the profits from the resales.
The charge of conspiring to engage in gun trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. The charge of being a felon in possession of a firearm carries a maximum penalty of ten years in prison and a $250,000 fine. Doyle’s sentencing is scheduled for October 28, 2019.Thomas previously pleaded guilty to her role in the firearm-trafficking conspiracy and her sentencing is scheduled for October 7, 2019.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Doyle: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Thomas: Paul A. Sarmousakis Esq., Avalon, New JerseyNonprofit Owner Pleads Guilty in Public Corruption SchemeRead the Press Release
A local nonprofit owner has pleaded guilty to his role in a public corruption scandal, admitting he funneled bribes from real estate developer Ruel Hamilton to former Dallas City Council Member Carolyn Davis, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Jeremy Scroggins, 44, pleaded guilty to misprision of a felony, or concealing knowledge of the actual commission of a felony, before Chief U.S. District Judge Barbara M.G. Lynn on Tuesday.
“As I have said from the start of my tenure as U.S. Attorney, North Texas will not and cannot tolerate public corruption at any level,” said U.S. Attorney Nealy Cox. “Mr. Scroggins facilitated bribe payments, and must be held accountable. ”
“Public corruption is one of the FBI’s top criminal priorities. It is often a multilayered scheme that extends much further from our elected officials,” said Matthew J. DeSarno, Special Agent in Charge of the FBI Dallas Field Office. “We are committed to investigating all levels of these deceptive schemes, including individuals like Mr. Scroggins who facilitate bribes.”
In plea papers, Mr. Scroggins, the owner of nonprofit Hip Hop Government (HHG), admits that Mr. Hamilton repeatedly wrote checks payable to Mr. Scroggins or HH, but these payments were generally meant for Ms. Davis.
Mr. Scroggins – who knew the payments were intended to influence the councilwoman’s official actions on Mr. Hamilton’s housing projects – admits that he cashed Mr. Hamilton’s checks and transferred the funds to Ms. Davis in cash without alerting authorities.
The late Ms. Davis pleaded guilty to conspiracy to commit bribery in March and was set to be sentenced September 20. Mr. Hamilton was charged with bribery in February, and has entered a plea of not guilty. Like all defendants, Mr. Hamilton is presumed innocent until proven guilty in a court of law. His trial is slated for January 6, 2020.
“We were shocked to hear of Ms. Davis’ tragic passing, and our sympathies go out to her family, friends, and former constituents,” said U.S. Attorney Nealy Cox. “Ms. Davis took responsibility for her conduct and she never wavered in her desire to make things right. We are confident justice will be served in all our public corruption cases.”
The Federal Bureau of Investigation conducted the investigation with assistance from the Internal Revenue Service - Criminal Investigations. Assistant U.S. Attorneys Marcus Busch, Andrew Wirmani, and Chad Meacham are prosecuting the case.
Navajo Man Sentenced to Five Years of Supervised Release for Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Alton Jay Cowboy, 50, an enrolled member of the Navajo Nation who resides in Las Cruces, N.M., was sentenced today in federal court in Santa Fe, N.M., for his conviction for violating the Sex Offender Registration and Notification Act (SORNA). Cowboy was sentenced to six-days of time already served in custody followed by five years of supervised release with special conditions, which include that he reside in a halfway house for up to 90-days; register as a sex offender, and have no contact with minor children.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Cowboy was charged by indictment on Feb. 27, 2018, with violating SORNA by failing to update his sex offender registration from April 4, 2017 through Dec. 27, 2017, in Bernalillo County, N.M. On April 5, 2018, Cowboy pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Multiple Defendants Indicted on Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that four South Dakota men have been indicted by a federal grand jury for several Child Pornography charges.
Derek Robert Schroeder, age 28, of Sioux Falls, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 17, 2019, and pled not guilty to the Indictment charging him with Transportation of Child Pornography and Possession of Child Pornography.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and up $100 to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
The Indictment alleges that between August 30, 2017, and January 22, 2018, Schroeder knowingly transported child pornography via a computer. The Indictment also alleges that between February 4, 2018, and July 31, 2018, Schroeder knowingly accessed, with intent to view, and possessed on his phone materials which contained an image of child pornography, which had been shipped and transported in and affecting interstate and foreign commerce.
Eric Wallace Hedrick, age 45, of Sioux Falls, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 17, 2019, and pled not guilty to the Indictment charging him with Receipt of Child Pornography.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 28, 2018, and May 28, 2019, Hedrick knowingly received and attempted to receive child pornography that has been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
Joshua Robert Hein, age 47, of Yankton, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 17, 2019, and pled not guilty to the Indictment charging him with Transportation of Child Pornography.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between November 1, 2018, and February 21, 2019, Hein knowingly transported child pornography via a computer, and by use of the internet uploaded graphic images and video files depicting one or more minors engaged in sexually explicit conduct.
Richard Charles Tellinghuisen, age 29, of Huron, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 18, 2019, and pled not guilty to the Indictment charging him with Distribution and Receipt of Child Pornography and Possession of Child Pornography.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and up $100 to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
The Indictment alleges that between September 11, 2017, and September 12, 2018, Tellinghuisen knowingly received and distributed, and attempted to receive and distribute child pornography via a computer. The Indictment also alleges that between January 16, 2017, and February 21, 2018, Tellinghuisen knowingly possessed and attempted to possess material containing an image of child pornography, which had been shipped and transported in and affecting interstate and foreign commerce.
All Defendants were indicted on July 9, 2019.
The charges are merely accusations and all Defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper are prosecuting the cases.
Schroeder, Hedrick, and Tellinghuisen were released on bond pending trial. Hein was returned to State Custody pending trial.
Jury trials have been set for September 24, 2019.
Mexican Citizen in Federal Court for Illegal Re-Entry After Being Previously DeportedRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Jose Cristobal Cardenas-Cabrera, 31, of Mexico, was sentenced in federal court this afternoon on the charge of illegal re-entry into the United States after having been previously deported. Cardenas-Cabrera, who was arrested on state charges of possession of cocaine under the alias of Eduardo Pecheco, was identified under his true identity by United States Customs and Border Patrol agents. He was indicted on the federal charge of illegal re-entry after deportation in February of 2019 and he pled guilty in April of 2019.
United States District Court Judge Terry F. Moorer imposed a sentence of 13 months imprisonment, and ordered that upon his release from custody, Cardenas-Cabrera will be surrendered to a duly authorized immigration official for consideration of deportation. The judge further ordered (if Cardenas-Cabrera is not deported) that he will undergo drug and alcohol testing and treatment as conditions of a three-year term of supervised release. No fine was imposed, but the judge ordered that Cardenas-Cabrera pay a $100 special mandatory assessment.
The case was investigated by the United States Customs and Border Patrol, Immigration and Customs Enforcement, the Department of Homeland Security, and the Mobile Police Department. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
McNairy County Man Re-arrested and Indicted for Distribution of Hydrocodone while on Pre-Trial Release for Conspiracy to Distribute MethamphetamineRead the Press Release
Jackson, TN – Nickolas Atkins, 40, of Selmer, TN., was indicted for possession with the intent to distribute and distribution of hydrocodone pills after having been placed on pre-trial release. Atkins had previously been indicted along with nineteen co-defendants in two indictments for conspiracy to distribute methamphetamine, cocaine and marijuana in the Western District of Tennessee. U.S. Attorney D. Michael Dunavant announced the new indictment today.
On March 18, 2019, a federal grand jury returned indictments charging 4 defendants with conspiracy to distribute methamphetamine and one count of being a felon in possession of a firearm that had been shipped in interstate commerce. On April 15, 2019, in a case connected to the previous indictment, a federal grand jury returned indictments, charging 15 defendants with conspiracy to distribute methamphetamine, cocaine, and marijuana, which included Atkins.
Atkins received a bond on his March 18, 2019 indictment and was placed on pre-trial release. On July 15, 2019, a federal grand jury returned a second indictment against Atkins for the distribution of hydrocodone pills on multiple occasions. Atkins was detained and held without bond by United States Magistrate Judge Jon A. York, after a hearing.
This investigation was conducted in conjunction with prosecutors in Jackson as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
2
If convicted, the defendant faces a sentence of not more than 20 years imprisonment. Atkins also faces a sentence of not less than 10 years up to life for his prior conspiracy indictment on March 18, 2019.
The Federal Bureau of Investigation, Alcohol, Tobacco, Firearms and Explosives (ATF), 24th Judicial District Drug Task Force, Decatur County Sheriff’s Office, Lexington Police Department, Dyersburg Police Department, Jackson Police Department, Selmer Police Department, McNairy County Sheriff’s Office and the Hardeman County Sheriff’s Office investigated this case.
Assistant U.S. Attorney Jerry Kitchen and Hillary Parham are prosecuting this case on behalf of the government.
The charges and allegations in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Maryland man indicted for bank robberyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven L. Silverman, of Thurmont, Maryland, was indicted by a federal grand jury today for bank robbery, United States Attorney Bill Powell announced.
Silverman, age 49, is charged with one count of “Bank Robbery.” Silverman is accused of robbing the City National Bank of Berkeley Springs of $1,730 on June 4, 2019.
Silverman faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Morgan County Sheriff’s Office and the Berkeley Springs Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Files Lawsuit Against Spinal Implant Company, Its CEO, and Another Executive for Illegally Paying Millions of Dollars in Kickbacks to Surgeons in Exchange for Using Its ProductsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), announced today that the United States has filed a civil healthcare fraud lawsuit against LIFE SPINE INC. (“LIFE SPINE”), MICHAEL BUTLER, the founder, president, and chief executive officer of LIFE SPINE, and RICHARD GREIBER, the vice president of business development of LIFE SPINE. The Government’s complaint seeks damages and civil penalties under the False Claims Act for paying kickbacks in the form of millions of dollars of consulting fees, royalties, and intellectual property acquisition fees to surgeons to induce them to use LIFE SPINE’s spinal implants, devices, and equipment. The lawsuit alleges that the surgeons who received these payments accounted for approximately half of LIFE SPINE’s total domestic sales of spinal products from 2012 through 2018. As set forth in the complaint, these payments violated the Anti-Kickback Statute and, as a result of this unlawful conduct, LIFE SPINE, BUTLER, and GREIBER caused hospitals and surgeons to submit false claims for payment to Medicare and Medicaid.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Life Spine and its senior management flagrantly ignored the law by paying surgeons millions of dollars in fees and royalties to get them to use Life Spine products during spinal surgeries. Kickbacks to doctors can alter or compromise their judgment about the medical care and services to provide to patients, and can increase healthcare costs. This office will continue to hold companies and the people who run them accountable when they make improper payments to doctors.”
FBI Assistant Director William F. Sweeney Jr. said: "Cases like this are why patients sometimes distrust the care they receive because they don’t know if it’s what the doctor actually thinks, or if there is a company pushing a new drug or new device. People seeking medical treatment are dependent on the advice they get, they don’t have the expertise to question the doctors. The FBI does all it can to stop those companies who overlook the patient who is just hoping to get better, and only sees the dollar signs.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Paying kickbacks to physicians as a means to boost company profits, as alleged in this case, compromises medical judgement and drives up healthcare costs. Our agency, working closely with our law enforcement partners, will continue to investigate such illegal activities.”
The following allegations are based on the Complaint that was filed in Manhattan federal court and unsealed today:
LIFE SPINE is a Delaware corporation with its principal place of business in Huntley, Illinois. LIFE SPINE designs, develops, manufactures, and markets medical devices and equipment primarily used in spinal surgeries performed by orthopedic surgeons and neurosurgeons, including implants and instruments (“Life Spine Products”). BUTLER is the founder, president, and chief executive officer of LIFE SPINE and is its majority shareholder. BUTLER was closely involved in overseeing the operations of LIFE SPINE. From 2012 to 2015, GREIBER was involved in selecting and approving surgeons who served as paid “consultants” for LIFE SPINE.
LIFE SPINE paid surgeons to induce them to use Life Spine Products during their surgeries. LIFE SPINE aggressively recruited surgeons who had the potential to use a high volume of Life Spine Products to enter into agreements to serve as paid consultants and/or to transfer their patents/patent applications to LIFE SPINE in exchange for payments and promised support to bring the surgeons’ new products to market. LIFE SPINE tied these agreements and the associated payments – as well as the company’s continued commitment to devote resources to the surgeons’ product development projects – to the surgeons’ usage of Life Spine Products. LIFE SPINE and BUTLER expected surgeons to commit to using Life Spine Products at a certain level in exchange for the consulting fees, royalties, and intellectual property acquisition fees paid to them.
LIFE SPINE, with the knowledge, involvement, and participation of BUTLER and GREIBER, entered into agreements with dozens of surgeons. These agreements included medical education agreements under which the surgeons were paid to provide training and/or educational services; product development agreements under which the surgeons were paid to purportedly provide input on new products and then would receive royalties on future sales of the product; and intellectual property agreements under which the surgeons were paid large up-front acquisition fees for their patents/patent applications and then would receive royalties on sales of any products developed based on the patents. Life Spine paid surgeons millions of dollars in consulting fees, royalties, and intellectual property acquisitions pursuant to these agreements.
BUTLER informed LIFE SPINE staff that he expected surgeons who were paid for their consulting services to commit to using Life Spine Products. LIFE SPINE’s senior management, including BUTLER, closely tracked surgeons’ usage of Life Spine Products to ensure that the payments to surgeons were generating sufficient sales revenues for the company and that the surgeons were fulfilling their “commitment” to use Life Spine Products. LIFE SPINE went so far as to generate a report that compared surgeon consulting, royalty, and intellectual property payments to surgeon product usage levels, and then calculated an “ROI” (return on investment) for each surgeon based on those figures. If a surgeon’s usage was too low, LIFE SPINE managers, including BUTLER, pressured the surgeon to use more Life Spine Products during his or her surgeries.
The kickback scheme was successful. Surgeons who received payments from LIFE SPINE accounted for approximately half of LIFE SPINE’s total domestic sales of spinal products between 2012 and 2018. Most of these surgeons substantially increased their usage of Life Spine Products after entering into agreements with LIFE SPINE. These surgeons used Life Spine Products during procedures performed on Medicare and Medicaid patients, which resulted in the submission of kickback-tainted false claims to Medicare and Medicaid.
The Government intervened in a private whistleblower lawsuit before Judge Jed S. Rakoff that had previously been filed under seal pursuant to the False Claims Act.
Mr. Berman thanked the FBI and HHS-OIG for their assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jennifer Jude, Jeffrey K. Powell, and Lara K. Eshkenazi are in charge of the case.
Leavenworth Man Sentenced for Armed Bank RobberyRead the Press Release
KANSAS CITY, KAN. – A Leavenworth man was sentenced today to 154 months in federal prison for armed bank robbery, U.S. Attorney Stephen McAllister said.
Damon Hammeke, 26, Leavenworth, Kan., pleaded guilty to one count of armed bank robbery and one count of brandishing a firearm during a robbery. In his plea, he admitted that on Nov. 21, 2017, he robbed the Country Club Bank at 2310 South 4th Street in Leavenworth. He entered the bank wearing a white jacket and black mask and carrying a handgun. He left the bank with money.
Two days later, an officer in Tonganoxie attempted to stop him for a traffic offense. Hammeke fled, leading police on a high-speed chase through Tonganoxie, Basehor, Lansing, Leavenworth, Platte County, Mo., and Kansas City, Kan., before they were able to stop him.
McAllister commended the FBI, the Tonganoxie Police Department, the Kansas Highway Patrol, the Platte County, Mo., Sheriff’s Department, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Las Vegas Resident Sentenced to Prison for His Role in A Complex Telemarketing Scheme That Defrauded over 1,000 Timeshare OwnersRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced Monday to 20 months in federal prison for his role in a telemarketing scheme that defrauded more than 1,000 timeshare owners out of approximately $780,000, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Michael Kroger, 60, pleaded guilty on the eve of his jury trial to conspiracy to commit mail fraud and wire fraud. In addition to the prison term, United States District Judge Jennifer A. Dorsey, who noted during the sentencing that Kroger showed no remorse for his crimes’ financial and emotional impact on his victims, ordered Kroger, to pay restitution in the amount of approximately $212,396.
According to court documents, from around 2000 until about March 2010, there was an agreement between two or more persons to carry out a fraudulent timeshare ownership scheme. In about 2004, Kroger joined the conspiracy to fraudulently obtain money from victim timeshare owners. In furtherance of the scheme, Kroger and co-conspirator Michele Paonessa created fictitious companies and false contracts to lure in victims seeking to sell their timeshare ownerships. The fictitious contracts obligated victim timeshare owners to pay a monetary fee to process fictitious documents relating to the sales and to cover the closing costs. In reality, Kroger and Paonessa used the victims’ money for personal benefits and to further the scheme. Before victims would contact law enforcement or the Better Business Bureau, Kroger and Paonessa would abandon that business and create a new business which they continued to use to perpetrate the fraud. In all, approximately 29 fictitious companies were used in the scheme. Not a single timeshare ownership was actually sold during the course of the 10 year scheme. In total, approximately $782,090 was stolen from approximately 1,000 victims residing in Nevada, other states, and outside of the United States in places such as Canada.
Paonessa pleaded guilty and is scheduled to be sentenced on August 20, 2019. Paonessa faces the maximum penalty of 20 years of imprisonment and a fine of $250,000.
The case was investigated by the United States Secret Service, the Henderson Police Department, and the Southwestern Identity Theft and Fraud Taskforce (SWIFT). Assistant United States Attorneys Kimberly Frayn and Jared Grimmer prosecuted the case.
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Lamar/Red River County Residents Indicted on Federal Drug and Weapons ChargesRead the Press Release
PARIS, Texas - Eight Lamar County residents and a Red River County man have been indicted by a federal grand jury in Sherman for weapons and narcotics violations announced United States Attorney Joseph D. Brown today.
The charges are a result of the efforts of the ATF Eastern District of Texas Violent Crime Task Force, a cooperation between the Paris Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and multiple other regional law enforcement agencies. The following individuals were indicted on July 10, 2019 and arrested this week:
U.S. Attorney Joe Brown Speaking at Paris, Texas Press ReleaseEarnest Napoleon Edwards, a.k.a. Jay Edwards, 36, of Paris, Texas, was indicted in a three-count indictment for distribution of and possession with intent to distribute methamphetamine, and knowing and unlawful possession of a firearm and ammunition by a convicted felon.
Kenya Devonta Bell, 26, of Clarksville, Texas, was indicted for possession of a firearm by a person previously convicted of a misdemeanor crime of domestic violence.
Latray Wright, 26, of Paris, Texas, was indicted in a two-count indictment for two charges of possession of a firearm by a convicted felon occurring on March 16, 2019, and May 11, 2019.
Chadwick Cardell Pratt, 36, of Paris, Texas, was indicted in a three-count indictment for possession with intent to distribute a controlled substance, possession or carrying of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.
Parris Quintez Hughes, 24, of Paris, Texas, was indicted in a two-count indictment for possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.
Justin Dewayne Thomas, 30, of Paris, Texas, was indicted in a four-count indictment for conspiracy to distribute or possess with intent to distribute a controlled substance, and for three distinct periods of possession of multiple firearms while aware that he is a convicted felon.
Kayla Kyle, 29, of Paris, Texas, was indicted for conspiracy to distribute or possess with intent to distribute a controlled substance.
Jeffrey Whitehead, 33, of Paris, Texas, was indicted in a three-count indictment for possession with intent to distribute or dispense methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.
The ATF’s Eastern District Task Force was created earlier this year as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a program designed to reduce violent crime through collaboration of local, state, and federal law enforcement and prosecution. Task force partners include the ATF, the Paris Police Department, Plano Police Department, Sherman Police Department, Frisco Police Department, The Colony Police Department, the Cooke County Sheriff’s Office, and the Collin County Sheriff’s Office.
“These charges are the result of good teamwork between these agencies,” said United States Attorney Joseph Brown. “They will work together all over northeast Texas to share information and resources and target the offenders who really drive violent crime rates – those carrying guns while they deal drugs and engage in other criminal behavior. The Project Safe Neighborhoods model has been effective all over the country in reducing violent crime.”
As part of the program, federal officials announced this week that the Paris Police Department would receive $100,000 in grant proceeds to provide equipment, including vehicles, cameras, and other surveillance tools.
“We are pleased to be able to take these offenders off the street,” said Paris Police Chief Bob Hundley. “These are repeat offenders, who continue to carry weapons and break the law, and we want to do everything we can to stop the behavior now, before someone gets really hurt. The grant funds we are being awarded will help that effort. They will provide investigative tools that we could not afford otherwise.”
“Collaboration is vital to ensure those who should not have guns do not have guns,” stated ATF Special Agent in Charge Jeffrey C. Boshek III. “The Project Safe Neighborhoods initiative brings law enforcement, prosecutors and community organizations together to develop comprehensive solutions to address violent crime.”
In addition to bringing law enforcement agencies together and providing grant funds for local partners, the Project Safe Neighborhoods initiative also provides funding for statistical research to track crime rate data, identify areas for law enforcement focus, and provide other statistical support. The initiative also supports crime prevention and offender reentry programs and improved resources for offenders upon release from incarceration.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Justice Department to Host Webinars on up to $167 Million Available to Improve Crime Victims Services for Alaska Native Villages, American Indian TribesRead the Press Release
Anchorage, Alaska – The U.S. Attorney’s Office for the District of Alaska will host a Department of Justice webinar that will review application procedures and the benefits to Alaska Native villages and American Indian tribes of awards to be made under the Department’s Fiscal Year 2019 Tribal Victim Services Set-Aside Program.
Those benefits include funding to support the establishment of new—as well as coordination and expanding existing—victim service programs that address the needs of a wide variety of crime victims in tribal communities.
The webinar takes place tomorrow, July 24, 9:30-11:30 a.m. Alaska Daylight Time and will be facilitated by the Department’s Office for Victims of Crime and Office of Tribal Justice.
“Alaska Natives suffer disproportionate rates of domestic abuse, sexual assault and other violent crimes,” said U.S. Attorney Bryan Schroder. “We encourage all of our native communities to participate in these webinars to learn how they can take advantage of these funds to provide and improve services to crime victims.”
This year’s solicitation builds on last year’s Tribal Victim Services Set-Aside Program, which directly funded 153 tribal applicants totaling an estimated $87.3 million (and another $20 million awarded in FY 2018 to fund other tribal victim services programs). The FY 2019 Tribal Victim Services Set-Aside Program allows applicants to select objectives and activities that are relevant to their specific community’s victim service needs.
Alaska Native Villages and American Indian Tribes are encouraged to register and participate in any of the remaining online webinars:
Date: Wednesday, July 24, 2019
Time: 9:30 – 11:30 a.m. (ADT)
Register: https://ojp.webex.com/ojp/onstage/g.php?MTID=e4027f1520d68bee24d87bd78b0ba2c4d
Host: U.S. Attorney’s Office, Anchorage, AlaskaDate: Thursday, July 25, 2019
Time: 2:00 – 4:00 p.m. (ADT)
Register: https://ojp.webex.com/ojp/onstage/g.php?MTID=ee12e99e1026d078d2b8cd756f42722bc
Host: Yuut Elitnaurviat, Bethel, AlaskaDate: Monday, July 29, 2019
Time: 10:00 a.m. – 12:00 p.m. (EST)
Register: https://ojp.webex.com/ojp/onstage/g.php?MTID=e09a221db081025d0c73ead7745420c53
Host: United South and Eastern Tribes, Inc., Nashville, TennesseeAdditionally, the Department’s Bureau of Justice Assistance and Office of Community Oriented Policing Services will share information about ongoing law enforcement and public safety training and programs available to tribal communities during the webinars.
Justice Department Reviewing the Practices of Market-Leading Online PlatformsRead the Press Release
The Department of Justice announced today that the Department’s Antitrust Division is reviewing whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers.
The Department’s review will consider the widespread concerns that consumers, businesses, and entrepreneurs have expressed about search, social media, and some retail services online. The Department’s Antitrust Division is conferring with and seeking information from the public, including industry participants who have direct insight into competition in online platforms, as well as others.
“Without the discipline of meaningful market-based competition, digital platforms may act in ways that are not responsive to consumer demands,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The Department’s antitrust review will explore these important issues.”
The goal of the Department’s review is to assess the competitive conditions in the online marketplace in an objective and fair-minded manner and to ensure Americans have access to free markets in which companies compete on the merits to provide services that users want. If violations of law are identified, the Department will proceed appropriately to seek redress.
Justice Department Launches National Public Safety Partnership with Wichita Police DepartmentRead the Press Release
WICHITA, KS - Today, officials from the Department of Justice's Bureau of Justice Assistance, the United States Attorney's Office's, District of Kansas, the Wichita Police Department and other city, state and federal law enforcement agencies convened in Wichita to initiate the National Public Safety Partnership (PSP) program with the Wichita Police Department. This Justice Department program is a three-year engagement that seeks to leverage department assets in support of a local jurisdictions' commitment to drive down violent crime.
On June 3, 2019, Attorney General William Barr announced the selection of the Wichita Police Department as one of ten FY 2019 PSP sites where the Justice Department will work collaboratively to provide training and technical assistance in areas such as crime analytics, emerging technology and community engagement.
Since 2017, the Justice Department has directed nearly $14.9 million in customized training and technical assistance to help build crime fighting capacity in PSP sites, including $6.6 million to support the FY 2019 sites through FY 2022. PSP seeks to bring law enforcement stakeholders together to work collaboratively in reducing violent crime attributed to felonious firearm use, drug trafficking and human trafficking.
“Today our team is on-site in Wichita to collaborate with local law enforcement officials in their mission to improve public safety and drive down violent crime,” said Jon Adler, Director of the Bureau of Justice Assistance. "Through the Public Safety Partnership, we are committed to fulfilling the Attorney General's priority of supporting local law enforcement combat violent gangs, felonious firearms use and drug trafficking," added Adler.
“This program will be emphasizing new technology that will help analyze local crime trends, identify hotspots and rapidly process crime scene data,” U.S. Attorney McAllister said. “Just as important, we’re going to draw on new ideas and best practices from a national network of major cities that are members of the Public Safety Partnership.”
“The WPD is excited to embrace this opportunity to more effectively address violent crime,” WPD Chief Gordon Ramsay said. “This opportunity allows us to further partner with our federal law partners and improve our community.”
Since 2017, the Justice Department has worked with more than 30 local jurisdictions under the nationwide PSP program. Many participating cities have already seen dramatic reductions in violent crime. New Orleans ended 2018 with 146 murders, the lowest number of murders since the early 1970s. In Milwaukee, homicides declined in 2018 for a third straight year after hitting a deadly peak in 2015.
Agencies in attendance at this meeting will include the U.S. Attorney’s Office, District of Kansas; the Office of Justice Programs; the Federal Bureau of Investigation; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the U.S. Drug Enforcement Administration; the Wichita Police Department; the Sedgwick County District Attorney’s Office; Mayor Jeff Longwell’s Office; the Sedgwick County Sheriff’s Office, Wichita Municipal Court and the Kansas Bureau of Investigation,
For more information about PSP, visit https://www.nationalpublicsafetypartnership.org.
Jury Convicts Oklahoma City Man of Trafficking Children for SexRead the Press Release
OKLAHOMA CITY – A federal jury has convicted GERMAINE COULTER, SR., 46, of Oklahoma City, of child sex trafficking and conspiracy to commit child sex trafficking, announced Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma.
On November 13, 2018, a grand jury returned a three-count superseding indictment against Coulter, a/k/a "Slim." Count One charged him with a child-sex-trafficking conspiracy in which he offered high school girls for commercial sex. Counts Two and Three charged him with substantive offenses of trafficking girls identified as Jane Doe 1 and Jane Doe 3.
At a trial that began on July 15 before Chief U.S. District Judge Timothy D. DeGiusti, a federal jury heard testimony that in January and February 2018, Coulter recruited females under the age of 18 to perform commercial sex work. Coulter told one girl she needed to make $1,000 per day, all of which would go to him, and, if she was successful, he would buy her a car, get her an apartment, and get her business cards after she turned 18. He directed his victims to call him "Daddy." Working with co-conspirator ELIZABETH ANDRADE, 36, of Edmond, he sent photos of one underage girl to prospective customers. The jury heard that Andrade began taking one of the girls with her on commercial sex appointments, where the girl performed sex acts for money. Between January 27, 2018, and February 19, 2018, Coulter and Andrade trained and directed the girl how to interact and perform sex acts with customers and how to convince her mother to let her stay with them.
The jury convicted Coulter yesterday on Counts One and Two. It was unable to reach a unanimous verdict on Count Three.
Andrade, a/k/a "Beth," "Bobbi Monroe," "Tiffany," and "Porsche," already stands convicted of conspiracy to commit child sex trafficking. On July 19, 2018, she pleaded guilty to a one-count superseding information. Both Coulter and Andrade have been in the custody of the U.S. Marshals Service since June 2018.
At sentencing, Coulter faces up to life imprisonment on the conspiracy conviction. In addition to leading to potential life imprisonment, Count Two also triggers a mandatory minimum sentence of ten years. Coulter also faces supervised release after incarceration of at least five years and up to life, in addition to fines of up to $250,000 per count, mandatory restitution, and a $5,100 special assessment on each count. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the FBI Oklahoma City Division and the Oklahoma City Police Department, with assistance from the Oklahoma County District Attorney’s Office. Assistant U.S. Attorneys K. McKenzie Anderson and Jessica Perry are prosecuting the case.
Reference is made to court filings for further information.
Jury Convicts Flynn Intel Group Founder of Conspiring to Act as an Undisclosed Agent of TurkeyRead the Press Release
ALEXANDRIA, Va. – After three hours of deliberations a federal jury convicted a California man today on charges of conspiring to act as an agent of a foreign government, conspiring to make false statements and willful omissions in a FARA filing, and acting as an agent of a foreign government.
“Rafiekian was held accountable for his actions and found guilty by a jury of his peers,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “I want to thank the investigators and prosecutors for their thorough investigation, extensive briefing, and commitment to this case.”
“Today’s verdict should stand as a deterrent to any malign foreign influence that undermines the integrity of our political processes,” Assistant Attorney General John Demers said. “Through misrepresentations in his FARA filing, Mr. Rafiekian attempted to deceive the public and influence key leaders on behalf of Turkey. The Department of Justice treats these crimes with the gravity that they deserve.”
According to court records and evidence presented at trial, Bijan Rafiekian, 67, of San Juan Capistrano, California, along with his co-conspirator, Kamil Ekim Alptekin, 42, of Istanbul, a Turkish national with close ties to the highest levels of the Government of Turkey, were involved in a conspiracy to covertly influence United States politicians and public opinion against a Turkish national, Fethullah Gulen, who is an imam, writer, and political figure living in the United States. The Government of Turkey had filed two extradition requests for Gulen, and has been trying to convince the Department of Justice to extradite Gulen back to Turkey since 2015. The plot included using the Flynn Intel Group (FIG), a company founded by Rafiekian and Michael T. Flynn, which provided services based upon Flynn’s national security expertise.
According to court documents, the purpose of the conspiracy was to use FIG to delegitimize the Turkish citizen in the eyes of the American public and United States politicians, with the goal of obtaining his extradition, which was meeting resistance at the U.S. Department of Justice. At the same time, the conspirators sought to conceal that the Government of Turkey was directing the work. However, not only was Rafiekian told by Alptekin that Turkish cabinet-level officials had approved the budget for the project, but Alptekin also told Rafiekian that he provided the Turkish officials updates on the work. Rafiekian understood that Alptekin was relaying the Turkish officials’ directions on the work to Rafiekian, Flynn, and others at FIG.
According to court documents, the scheme included using a Dutch shell company, Inovo, owned by Alptekin to act as FIG’s “client.” FIG was paid $600,000 in three installments from an account in Turkey in Alptekin’s name. After Alptekin made the payments to FIG, FIG kicked back 20 percent of the payments to Alptekin’s company in the Netherlands, with two such kickbacks being made.
Rafiekian faces a maximum penalty of 15 years in prison when sentenced on October 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and John P. Selleck, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorneys James P. Gillis, John T. Gibbs, Aidan T. Grano, Trial Attorney Evan N. Turgeon of the Department of Justice’s Counterintelligence and Export Control Section, and Special Assistant U.S. Attorney Stephanie K. Sweeten are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-457.
Jury Convicts Flynn Intel Group Founder of Conspiring to Act as an Undisclosed Agent of TurkeyRead the Press Release
After three hours of deliberations a federal jury convicted a California man today on charges of conspiring to act as an agent of a foreign government, conspiring to make false statements and willful omissions in a FARA filing, and acting as an agent of a foreign government.
John C. Demers, Assistant Attorney General for National Security, G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and John P. Selleck, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
“Today’s verdict should stand as a deterrent to any malign foreign influence that undermines the integrity of our political processes,” Assistant Attorney General John Demers said. “Through misrepresentations in his FARA filing, Mr. Rafiekian attempted to deceive the public and influence key leaders on behalf of Turkey. The Department of Justice treats these crimes with the gravity that they deserve.”
“Rafiekian was held accountable for his actions and found guilty by a jury of his peers,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “I want to thank the investigators and prosecutors for their thorough investigation, extensive briefing, and commitment to this case.”
According to court records and evidence presented at trial, Bijan Rafiekian, 67, of San Juan Capistrano, California, along with his co-conspirator, Kamil Ekim Alptekin, 42, of Istanbul, a Turkish national with close ties to the highest levels of the Government of Turkey, were involved in a conspiracy to covertly influence United States politicians and public opinion against a Turkish national, Fethullah Gulen, who is living in the United States. The Government of Turkey had filed two extradition requests for Gulen, and has been trying to convince the Department of Justice to extradite Gulen back to Turkey since 2015. The conspiracy included using the Flynn Intel Group (FIG), a company founded by Rafiekian and Michael T. Flynn, which provided services based upon Flynn’s national security expertise.
According to court documents, the purpose of the conspiracy was to use FIG to delegitimize the Turkish citizen in the eyes of the American public and United States politicians, with the goal of obtaining his extradition, which was meeting resistance at the U.S. Department of Justice. At the same time, the conspirators sought to conceal that the Government of Turkey was directing the work. However, not only was Rafiekian told by Alptekin that Turkish cabinet-level officials had approved the budget for the project, but Alptekin also told Rafiekian that he provided the Turkish officials updates on the work. Rafiekian understood that Alptekin was relaying the Turkish officials’ directions on the work to Rafiekian, Flynn, and others at FIG.
According to court documents, the scheme included using a Dutch shell company, Inovo, owned by Alptekin to act as FIG’s “client.” FIG was paid $600,000 in three installments from an account in Turkey in Alptekin’s name. After Alptekin made the payments to FIG, FIG kicked back 20 percent of the payments to Alptekin’s company in the Netherlands, with two such kickbacks being made.
Rafiekian faces a maximum penalty of 15 years in prison when sentenced on October 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys James P. Gillis, John T. Gibbs, Aidan T. Grano, Trial Attorney Evan N. Turgeon of the Department of Justice’s Counterintelligence and Export Control Section, and Special Assistant United States Attorney Stephanie K. Sweeten are prosecuting the case.
Judge Hands Down 128 Month Sentence in Columbus Welcome Center Multi-Kilo Cocaine CaseRead the Press Release
COLUMBUS - A Phenix City, Alabama man found guilty of attempting to sell 10 kilos of cocaine to an undercover agent was sentenced to 128 months imprisonment and five years supervised release, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. A federal jury found Kenneth James, 51, guilty of Possession of Cocaine with Intent to Distribute on March 13, 2019, following a three-day trial before U.S. District Judge Clay D. Land. There is no parole in the federal system.
Mr. James was arrested at the Columbus Welcome Center parking lot on Williams Road in October 2017, during an undercover surveillance operation conducted by the Columbus Police Department. The defendant was carrying 11,995 grams of cocaine in brick form with the intent to sell 10 kilos of cocaine at $27,500 per kilo. A co-defendant, Marcus Marshall, 35, of Columbus, Georgia was also arrested during the sting, pleaded guilty to his crime, and was previously sentenced. Mr. James has a criminal past, and was convicted in December 1999 on the charge of Possession of Cocaine with Intent to Distribute in the Middle District of Alabama.
“The penalty is severe for career criminals who traffic large quantities of illegal drugs in the Middle District of Georgia,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “The Columbus Police Department stopped a tremendous amount of cocaine from being distributed in their city by two known, high-quantity drug traffickers. I want to personally thank them for their efforts in this case.”
This case was investigated by the Columbus Police Department and the DEA. Assistant U.S. Attorneys Mel Hyde and Chris Williams are prosecuting the case for the Government. Questions 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.
Jacksonville Man Indicted on Child Pornography and Enticement ChargesRead the Press Release
RALEIGH — Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that a Federal grand jury in Raleigh has returned a twelve-count indictment charging Morgan Jeffrey Shepard, age 32, of Jacksonville, North Carolina, with one count of producing child pornography, three counts of enticing a minor to engage in a sexual activity, seven counts of receipt of child pornography, and one count of possession of child pornography.
The indictment alleges that beginning in or around September 2016, and continuing through in or around November 2016, SHEPARD persuaded and enticed a minor victim to engage in sexually explicit conduct for the purpose of creating child pornography. During the same dates, SHEPARD is alleged to have enticed the same minor victim to engage in sexual activity that constituted sexual exploitation of a child under North Carolina state law. The indictment alleges that between April 23 and April 27, 2018, SHEPARD enticed two additional minor victims to engage in criminal sexual activity. It further alleges that beginning at a time unknown and ending on July 13, 2017, Shepard received at least seven images containing visual depictions of minors engaged in sexually explicit conduct. Lastly, the indictment alleges that on July 13, 2017, Shepard was found to be in possession of digital media containing images and videos involving minors engaged in sexually explicit conduct.
If convicted of these charges, SHEPARD would face a statutory minimum sentence of 15 years’ imprisonment and a maximum sentence of up to life imprisonment. He also would face up to a lifetime of supervised release following any term of imprisonment.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
The case is being investigated by the Department of Homeland Security, the Onslow County Sheriff’s Office, the Craven County Sheriff’s Office, and the Wilmington Police Department. Assistant United States Attorney Jake D. Pugh is prosecuting the case for the government.
Iowa Man Charged with Making Threats to Manhattan-Based Jewish OrganizationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a complaint charging GARRETT KELSEY with sending threats to a Manhattan-based Jewish organization (the “Victim Organization”) by email and phone. KELSEY was arrested in Cedar Rapids, Iowa, this morning and is expected to be presented before a Magistrate Judge in the Northern District of Iowa later today.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Garrett Kelsey repeatedly conveyed obscenity-laden and hate-filled threats to a Jewish organization by phone and email. The alleged conduct is not protected speech. As charged, the conduct – making interstate threats – is a federal crime punishable by years in prison.”
FBI Assistant Director William F. Sweeney Jr. said: “The FBI will always follow threats that cross the line of free speech and threaten the safety of individuals and groups, especially when those threats are based on a religion or race. The fact that Mr. Kelsey allegedly continued his threatening behavior even after being informed that his previous actions were not protected speech makes his actions more abhorrent.”
Police Commissioner James P. O’Neill said: “The investigative efforts of New York City law enforcement are relentless and far-reaching. Whenever individuals – wherever they are based – pose a threat, the NYPD and our partners will work tirelessly to keep people safe. I thank our colleagues at the FBI and the Southern District for their partnership.”
As alleged in the Complaint unsealed today in Manhattan federal court[1]:
In late May 2019, KELSEY made violent threats by phone and email to the Victim Organization. On May 23, KELSEY called the Victim Organization and spoke briefly with one of its employees. A short time later, KELSEY called that employee’s number back and left a voicemail for the Victim Organization stating, “My people have fucking slaughtered your fucking people before and we will do it again. And right now, you are giving us incentive to do that . . . . Filthy fucking Jews.”
Later that same day, KELSEY sent the Victim Organization an email demanding that the Victim Organization remove a video about Nordic Neo-Nazis that the Victim Organization had uploaded to the Internet. KELSEY wrote: “Everywhere Jews go in the world they cause trouble. You have 3 days to remove this video and offer an apology to the Asatru community or we will be taking action against your organization full of degenerates.” “Asatru” appears to have been a reference to a religious movement recently linked to anti-Semitic and other racist groups.
The next day, KELSEY participated in a voluntary interview with law enforcement, during which he admitted to sending the threatening email and voicemail to the Victim Organization.
Approximately one week after his voluntary law enforcement interview, KELSEY changed the cover photograph associated with his Facebook account. The new cover photograph depicted Jewish residents of a ghetto in Warsaw, Poland, lined up facing a wall with their hands up. Those residents were detained after an uprising during World War II and ultimately were transferred to Nazi concentration camps.
* * *
KELSEY, 31, of Cedar Rapids, Iowa, is charged with one count of interstate transmission of threats to injure a person, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Mr. Berman also thanked the U.S. Attorney’s Office for the Northern District of Iowa. Mr. Berman noted that the case is ongoing.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Stephanie Lake is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Indianapolis Woman Sentenced to 13 Months for Illegal Purchase of Handgun Used in Murder of Sheriff's DeputyRead the Press Release
INDIANAPOLIS -- United States Attorney Josh J. Minkler, announced today an Indianapolis woman was sentenced for her illegal purchase of the handgun used to murder Boone County Sheriff’s Deputy
Jacob Pickett in March 2018. Dawn Love Rochon, 30, was sentenced to 13 months in federal prison by
U.S. District Judge James R. Sweeney at the federal courthouse in Indianapolis.“When firearms are illegally purchased, possessed, or sold, it’s never for a good reason and the results are often tragic,” said Minkler. “Judge Sweeney sent a loud and clear message that gun violence will not be tolerated in the Southern District of Indiana and those who illegally acquire firearms will be held accountable.”
On February 28, 2017, Rochon purchased a Taurus PT709 9mm handgun from Indy Gun Bunker, a gun store in Indianapolis, Indiana. On the federal form that Rochon completed for the purchase, Rochon gave a false statement under penalty of perjury regarding her residential address. Such a false statement violates federal law, and therefore Rochon’s acquisition of the Taurus handgun was illegal.
On March 2, 2018, Anthony Baumgardt shot and killed Boone County Sheriff’s Deputy Jacob Pickett using the Taurus handgun that Rochon illegally purchased. Baumgardt has since pled guilty to
Pickett’s murder and was sentenced to life in prison.At the sentencing hearing, Assistant United States Attorney William L. McCoskey told the Court that
Rochon’s illegal purchase of the handgu was “the first link in a terrible and tragic chain of events leading to the murder of Jake Pickett.”This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, Indiana State Police, and the Boone County Sheriff’s Department.“I am extremely proud of the collaborative investigative efforts which resulted in the arrest, conviction and sentencing of those whose actions played a role in the murder of Deputy Jacob
Pickett,” said Indiana State Police Superintendent Douglas G. Carter.According to Assistant United States Attorney William L. McCoskey, who prosecuted this case for the government, Rochon must serve three years of supervised release after her sentence of imprisonment.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute individuals committing violent crimes involving firearms. See
United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.3Hudson County Man Charged with Assault on Postal WorkerRead the Press Release
NEWARK, N.J. – A North Bergen man was arrested today on charges that he attacked a postal worker, U.S. Attorney Craig Carpenito announced.
Eduardo Perez, 34, is charged by complaint with one count of assaulting a federal worker. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
On or about June 22, 2019, defendant Perez parked his white pickup truck in an employees-only space in the parking lot of the Woodcliff Station Post Office in North Bergen, New Jersey. When Perez returned to his vehicle after closing time, he found that a postal vehicle was blocking the entrance to the parking lot, per Woodcliff Station policy. Although the exit from the lot remained unobstructed, Perez became irate and aggressive toward postal employees in the lot, demanding that the postal vehicle be removed from the entrance so that he could exit that way. Perez eventually removed his truck from the lot through the exit, nearly striking a postal employee in the process, but returned to the lot only moments later and accosted a postal worker who was unloading parcels from his postal vehicle. Perez swung his fist repeatedly toward the victim, striking the victim’s face and causing him to fall backward into his postal vehicle and then to the ground, knocking him unconscious. Perez then fled the scene. The victim was subsequently hospitalized for severe injuries to his face and head.
The charge of assaulting a federal worker carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited postal inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge James Buthorn in Newark, with the investigation leading to the charges. He also thanked the North Bergen Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Houston Man Hammered for Firearms Offenses Related to CarjackingRead the Press Release
HOUSTON – A 23-year-old Houston man has been ordered to federal prison following his conviction of two counts of brandishing a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick.
David Steve Elias pleaded guilty July 16, 2018.
Today, U.S. District Judge David Hittner ordered him to serve 150 months for each offense to run consecutively for a total of 300 months, which will be immediately followed by three years of supervised release. The sentence was enhanced based on the violent nature of the crimes.
Co-defendant Lawrence Benjamin Gordon, 23 of Houston, pleaded guilty to one count of carjacking and one count of brandishing a firearm and received a total sentence of 180 months in federal prison Feb. 27, 2019.
On July 21, 2017, Elias and Gordon successfully carjacked a victim of his Toyota Rav4. The victim was not able to identify either of the suspects, but said that the Hispanic male, later identified as Elias pistol whipped him and told the other accomplice, Gordon, to “grab his [sic].”
On July 22, 2017, Elias and Gordon were both armed when they carjacked a another victim and her boyfriend, stealing a black Lincoln. During the altercation, both defendants pointed the pistols at the victim and ordered them out of the vehicle, at which time Elias struck the male victim in the head with his gun.
The defendants also stole the victim’s iphone. Based on its location, police were able to find Elias and Gordon, followed them for a short while and ultimately attempted to apprehend both men. Elias got out of the vehicle and shot several rounds at the police and attempted to run. Gordon was apprehended from the vehicle.
The victim was later able to identify both of the defendants from a photo lineup, indicating Elias was the one who pistol whipped him.
At the time of their arrest, Gordon admitted he and Elias were involved in the carjacking of Rav4 and the Lincoln. Elias attempted to flea on foot and shot at the police, one police officer was injured with shards of glass from his windshield.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department conducted the investigation. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
High School Teacher Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Narraganset School District high school math teacher pleaded guilty today in federal court in Boston to receipt and possession of child pornography.
Warren Anderson, 27, of Lowell and Harvard, pleaded guilty to one count each of receipt and possession of child pornography. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Oct. 16, 2019.
As part of an ongoing investigation into the online trade of child pornography through the use of Kik messenger, law enforcement interviewed Anderson in August 2018. Anderson admitted accessing sites on the dark web to obtain child pornography, and forensic analysis of his computers revealed that he had thousands of files of child pornography, and that he had used both Kik and a dark web-based messaging platform to discuss and trade child pornography.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 10 years in prison. Both charges also provide for a mandatory minimum sentence of five years and up to a lifetime of supervised release and a fine of up to $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations, made the announcement today. Assistance was provided by the Harvard and Templeton Police Departments. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Harlingen Man Sentenced for Child Pornography ChargeRead the Press Release
BROWNSVILLE, Texas – A 63-year-old U.S. citizen from South Texas has been ordered to federal prison following his conviction of possessing of child pornography, announced U.S. Attorney Ryan K. Patrick.
Charles Elmer Fankhauser pleaded guilty Aug. 28, 2018.
Today, U.S. District Judge Fernando Rodriguez ordered he serve 97 months. Following the term of imprisonment, Fankhauser must also serve 10 years of supervised release during which time he during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
At the hearing, the court read excerpts from several impact statements as demonstrating that this is not a victimless crime.
On or about Dec. 26, 2017, authorities initiated an investigation of child pornography sharing which led them to Fankhauser’s address in Harlingen. A search warrant later yielded a laptop computer on which forensic analysis showed approximately 33,914 images and 1,776 videos of child pornography.
Fankhauser was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorneys Jason Corley and Ana C. Cano prosecuted the case.
Guilty Verdicts: Wichita Pharmacist Unlawfully Distributed Rx DrugsRead the Press Release
WICHITA, KAN. – A federal jury found a Wichita-area pharmacist guilty today on charges of unlawfully dispensing opioid prescription drugs, U.S. Attorney Stephen McAllister said.
Ebube Otuonye, 46, Bel Aire, Kan., was convicted on the following counts:
Conspiracy to unlawfully distribute prescription drugs (count one).
Unlawfully distributing prescription drugs (count two).
Health care fraud (counts three and four).
The crimes occurred while Otuonye owned and operated Neighborhood Pharmacy at 2810 E. 21st in Wichita, where he filled prescriptions for patients of Dr. Steven R. Henson. In October 2018, Henson was convicted of unlawfully distributing prescription drugs outside the usual course of professional medical practice and without a legitimate medical purpose. In March 2019, Henson was sentenced to life in federal prison.
During trial, prosecutors presented evidence that Henson’s patients had difficulty filling Henson’s prescriptions at pharmacies other than Neighborhood Pharmacy. Otuonye’s pharmacy charged more than other pharmacies and he set up a system requiring Henson’s patients to fill three non-narcotic prescriptions when filling a narcotic prescription.
A sign in the pharmacy said: “You may use another pharmacy if all you want to fill is (a) narcotic prescription.”
Evidence at trial showed Henson’s patients took their prescriptions to Otuonye himself because another pharmacist at Neighborhood Pharmacy refused to fill them. Prosecutors argued that Otuonye failed to perform his professional responsibilities by continuing to fill prescriptions for Henson’s patients despite warning signs including: Large numbers of prescriptions for highly addictive drugs, customers paying cash, multiple patients coming in at once with Henson’s prescriptions and patients from the same family presenting identical prescriptions.
Otuonye filled prescriptions for more than 21,600 tablets of oxycodone, more than 48,600 tablets of methadone, more than 18,000 tablets of hydromorphone and more than7,800 tablets of alprazolam.
Prosecutors also presented evidence that Otuonye submitted claims to Medicare and Medicaid for filling Henson’s prescriptions.
Sentencing is set for Oct. 23. Counts one and two carry a penalty of up to 20 years in federal prison and a fine up to $1 million. Counts three and four carry a penalty of up to 10 years and a fine up to $250,000.
McAllister commended the Drug Enforcement Administration, the Overland Park Police Department, the Newton Police Department, the Sedgwick County Sheriff's Office, the Lee's Summit Police Department, the Johnson County Sheriff's Office, the U.S. Department of Health and Human Services, Assistant U.S. Attorney Mona Furst, Assistant U.S. Attorney Jason Hart, Assistant U.S. Attorney Ryan McCarty, and Special Assistant U.S. Attorney Katherine Andrusdak for their work on the case.
Grant County Man Sentenced to 78 Months for Possessing Methamphetamine & FirearmsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Dustin Caya, 35, Mount Hope, Wisconsin, was sentenced July 19 by U.S. District Judge William Conley to 78 months in federal prison for possessing more than 50 grams of methamphetamine with the intent to distribute, and possessing a firearm as a felon. Caya was convicted of these charges after he entered a plea to them on July 19.
Officers from the Grant County Sheriff’s Office found more than 350 grams of methamphetamine, along with scales, packaging material, and large sums of money in Caya’s home on June 1, 2018. There were also numerous loaded firearms throughout the house, despite the fact that Caya, a convicted felon, was prohibited from possessing firearms. Caya was also under State of Wisconsin extended supervision for the prior felony conviction at the time he committed these offenses.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Caya were the result of an investigation conducted by the Grant County Sheriff’s Office, Prairie du Chien Police Department, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Robert A. Anderson.
Four Chinese Nationals and Chinese Company Indicted for Conspiracy to Defraud the United States and Evade SanctionsRead the Press Release
A federal grand jury has charged four Chinese nationals and a Chinese company with violating the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA and defraud the United States; conspiracy to violate, evade and avoid restrictions imposed under the Weapons of Mass Destruction Proliferators Sanctions Regulations (WMDPSR); and conspiracy to launder monetary instruments.
The announcement was made by Assistant Attorney General for National Security John C. Demers, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and U.S. Attorney Craig Carpenito for the District of New Jersey.
The indictment returned yesterday by a federal grand jury in Newark, New Jersey charges Ma Xiaohong (Ma); her company, Dandong Hongxiang Industrial Development Co. Ltd. (DHID); and three of DHID’s top executives – general manager Zhou Jianshu (Zhou), deputy general manager Hong Jinhua (Hong) and financial manager Luo Chuanxu (Luo) – with violating IEEPA, conspiracy to violate IEEPA and to defraud the United States and conspiracy to launder monetary instruments.
“Through the use of more than 20 front companies, the defendants are alleged to have sought to obscure illicit financial dealings on behalf of sanctioned North Korean entities that were involved in the proliferation of weapons of mass destruction,” said Assistant Attorney General John Demers. “But through the tireless efforts of federal law enforcement, we were able to shine a light on their lawless conduct and take the first step in bringing them to justice.”
“Any Chinese company conspiring to do business with sanctioned WMD proliferators through the U.S. banking system should think twice,” said Assistant Attorney General Benczkowski. “This indictment shows the Department’s resolve to use every tool of criminal prosecution to detect illicit financial transactions and enforce U.S. sanctions.”
“Ma, her company, and her employees tried to defraud the United States by evading sanctions restrictions and doing business with proliferators of weapons of mass destruction,” said U.S. Attorney Carpenito. “We will continue to work closely with our partners in the National Security and Criminal Divisions in order to identify and prosecute defendants like these, in order to preserve a safer and more fair environment for all.”
According to the indictment, DHID was a Chinese company whose core business was trade with North Korea. DHID allegedly openly worked with North Korea-based Korea Kwangson Banking Corporation (KKBC) prior to Aug. 11, 2009, when the Office of Foreign Assets Control (OFAC) designated KKBC as a Specially Designated National (SDN) for providing U.S. dollar financial services for two other North Korean entities, Tanchon Commercial Bank (Tanchon) and Korea Hyoksin Trading Corporation (Hyoksin). President Bush identified Tanchon as a weapons of mass destruction proliferator in June 2005, and OFAC designated Hyoksin as an SDN under the WMDPSR in July 2009. Tanchon and Hyoksin were identified and designated because of their ties to Korea Mining Development Trading Company (KOMID), which OFAC has described as North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.
Beginning after the designation of KKBC as an SDN in August 2009, Ma allegedly conspired with Zhou, Hong and Luo to create or acquire numerous front companies to conduct U.S. dollar transactions designed to evade U.S. sanctions. The indictment alleges that from December 2009 to September 2015, the defendants established front companies in offshore jurisdictions such as the British Virgin Islands, the Seychelles, Hong Kong, Wales, England, and Anguilla, and opened Chinese bank accounts held in the names of the front companies at banks in China that maintained correspondent accounts in the United States. The defendants used these accounts to conduct U.S. dollar financial transactions through the U.S. banking system when completing sales to North Korea. These sales transactions were allegedly financed or guaranteed by KKBC. These front companies facilitated the financial transactions to hide KKBC’s presence from correspondent banks in the United States, including a bank processing center in Newark, New Jersey, according to the allegations in the indictment. As a result of the defendants’ alleged scheme, KKBC was able to cause financial transactions in U.S. dollars to transit through the U.S. correspondent banks without being detected by the banks and, thus, were not blocked under the WMDPSR program.
Ma, Zhou, Hong and Luo face a statutory maximum sentence of 20 years in prison and a $1 million fine on the charge of violating IEEPA, a maximum of five years in prison and a $250,000 fine on conspiracy to violate IEEPA and to defraud the United States, and a maximum of 20 years in prison and a $500,000 fine on the charge of conspiracy to launder monetary instruments. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is handling the case. The Criminal Division’s Office of International Affairs provided significant assistance in the investigation. Trial Attorney Jennifer Wallis of the Criminal Division’s Money Laundering and Asset Recovery Section; Trial Attorney Christian E. Ford of the National Security Division’s Counterintelligence and Export Control Section; and Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit, Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit (ARMLU), and Assistant U.S. Attorney Barbara Ward of ARMLU in the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.