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23 July 2019
Four Chinese Nationals and Chinese Company Indicted for Conspiracy to Defraud the United States and Evade SanctionsRead the Press Release
NEWARK, N.J. – 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 to defraud the United States; conspiracy to violate, evade and avoid restrictions of the Weapons of Mass Destruction Proliferators Regulations (WMDPR); and conspiracy to launder monetary instruments, U.S. Attorney Craig Carpenito for the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Assistant Attorney General John C. Demers of the Justice Department’s National Security Division announced.
The indictment returned yesterday by a federal grand jury in Newark 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.
“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.”
“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.”According to the indictment in this case, DHID is primarily owned by Ma and is located near the North Korean border. 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 so 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, DHID used these front companies, established in offshore jurisdictions such as the British Virgin Islands, the Seychelles, Hong Kong, Wales, England, and Anguilla, and opened Chinese bank 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 maximum of 20 years’ imprisonment and a $1 million fine on the charge of violating IEEPA, a maximum of 5 years’ imprisonment and a $250,000 fine on conspiracy to violate IEEPA and to defraud the United States, and a maximum of 20 years’ imprisonment and a $500,000 fine on the charge of conspiracy to launder monetary instruments.
U.S. Attorney Carpenito, Assistant Attorney General Benczkowski, and Assistant Attorney General Demers credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark and Special Agent in Charge Sean Kaul in Phoenix, Arizona, for the investigation leading to the indictment.
The government is represented by 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; Trial Attorney Jennifer Wallis of the Criminal Division’s Money Laundering and Asset Recovery Section; and Trial Attorney Christian E. Ford of the National Security Division’s Counterintelligence and Export Control Section.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
Former Synovus Employee Sentenced to Prison for Defrauding Bank and Tax EvasionRead the Press Release
MACON – A former commercial banker for Synovus was sentenced to 24 months in federal prison this morning after he admitted to defrauding the bank and evading taxes on his illegal earnings, said Charles E. Peeler, the United States Attorney for the Middle District of Georgia. John D. Evans, 48, of Columbus, Georgia was sentenced by United States District Court Judge Clay D. Land to 24 months imprisonment, three years supervised release plus $166,480.94 in restitution to Synovus and $221,357 in restitution to the Internal Revenue Service. Mr. Evans admitted guilt to four counts of Bank Fraud and four counts of Tax Evasion on November 28, 2018. There is no parole in the federal system.
Mr. Evans admitted in his signed plea agreement that the fraud occurred between July 2, 2013 and May 24, 2017 while he worked as a commercial banker for Synovus. Mr. Evans managed some of the largest clients for Synovus and diverted $1,046,602 in Synovus client funds into a personal account he opened at another bank. Financial records revealed that Evans used these funds to pay for a wide assortment of his personal expenses, including payments on vehicles, credit card bills, vacations, jewelry, and cash withdrawals. In addition, Mr. Evans failed to pay income taxes on the stolen money, amounting to $221,357.
“This defendant will pay a high price for breaching the trust of his clients and his employer. Fraud and tax evasion are serious crimes that carry serious punishment. Our office stands with corporate and citizen victims by prosecuting these crimes and holding fraudsters accountable for their conduct,” said Charlie Peeler, U.S. Attorney. “I want to thank the FBI and the IRS for their outstanding work on this matter. I also want to thank Synovus for partnering with law enforcement to ensure this defendant is brought to justice.”
“We are grateful to the FBI and the U.S. Attorney’s Office for the Middle District of Georgia for bringing this matter to a conclusion, and we are pleased that no customer incurred a loss as result of Mr. Evans’ actions,” said Lee Underwood, Communications Director for Synovus.
“Because of the cooperation between the FBI and our law enforcement partners, and the cooperation of Synovus, Evans is being held accountable for his greed-driven actions,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Anyone who tries to take advantage of a trusted position by illegally profiting from it should see this sentencing as a warning that the FBI is determined to pursue justice for the companies who are victimized.”
This case was investigated by the Internal Revenue Service, the Federal Bureau of Investigation, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. Assistant United States Attorney Melvin Hyde prosecuted the case for the United States.
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.
Former South Carolina Resident Sentenced to Federal Prison for Charity Fraud Scheme Targeting Marine Corps FamiliesRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon announced today that John Shannon Simpson, age 44, of Lee County, Florida, was sentenced in federal court after pleading guilty to Wire Fraud. United States District Judge David C. Norton of Charleston sentenced Simpson to four years in federal prison and three years of supervised release to follow. This sentence will run consecutively with a nine-year state sentence that Simpson is serving in Florida. Simpson was also ordered to pay restitution of $141,709.44 to the victims of his fraud.
Evidence presented to the court established that in May 2014, Simpson founded a charitable organization entitled “Marines and Mickey” and served as the President. The purpose of the charity was to provide funds to selected United States Marines Corps (USMC) service members and their families to defray their costs of visiting the Walt Disney Resorts. The charity was also supposed to provide funds to the families of newly graduated Marines to defray the families’ costs of attending USMC boot camp graduations, including some held at Parris Island, South Carolina, and San Diego, California.
The charity claimed in its promotions and requests for money that 100% of the donations went directly to Marines and their families through the charity’s programs. The charity actively solicited donations on and near the USMC base in Parris Island, South Carolina, and elsewhere. The remainder of monies raised by the charity were a combination of private and corporate donations to the charity, including by USMC recruits and recent boot camp graduates.
While acting as the charity’s President and in support of fundraising for the charity, Simpson falsely represented himself as a retired career Marine with as much as 20 years of service, a retired Master Sergeant, a former Drill Instructor, and a Recon Marine.
In fact, Simpson spent less than five years in the Marine Corps. He entered active duty on June 28, 1993. He was absent without leave (AWOL) from June 10, 1996, to June 19, 1997. The highest rank he achieved prior to going AWOL was Lance Corporal/E-3, and his operational specialty was Basic Disbursing Clerk. Simpson was found guilty at a Special Court Martial for violation of Article 86 (Absence without leave) of the Uniform Code of Military Justice, was reduced in rank to Private/E-1, and was given a Bad-Conduct Discharge, which was effective on May 5, 1998.
By misleading donors and volunteers about his military background, Simpson was able to add credibility to his solicitations for money.
The charity was in operation from May 2014 through 2016, and it received approximately $481,000 in donations during that time-period. However, despite Simpson’s claims that 100% of the donations would go to Marines and their families through the charity’s programs, only about $90,000—or about 19% of the donations—were used for charitable purposes. Simpson diverted the remainder of the monies in the charitable accounts, approximately $391,000, for his personal use and enrichment.
The primary victim of Simpson’s scheme was the mother of a United States Marine killed in the active shooter attack at a military center in Chattanooga, Tennessee, in July 2015. Simpson fraudulently induced the Gold Star mother and others to give Simpson’s charity about $131,000, all in honor of the Gold Star mother’s son, including $75,000 of the Gold Star mother’s own money and $25,000 that the Community Foundation of Greater Chattanooga donated at the direction of the Gold Star mother.
The charity also held a fundraising benefit in New York to raise money for a Disney World trip for a Marine family whose minor daughter was terminally ill. The charity advertised all proceeds from the event would go to the minor daughter and her family for a Disney World trip, and to help pay for the family’s needs. Because the minor daughter died prior to the fundraiser, the trip intended for the minor daughter and her family, including her father who is an active duty U.S. Marine Corps Drill Sergeant, was donated to another family at the request of the minor daughter’s family. However, the charity, after paying all of the expenses of the fundraiser and sending the other Marine family to Disney World, still had about $3,200 of donations left over. Simpson kept that money for himself instead of giving it to the minor daughter’s family.
Additionally, during 2015 and 2016, Simpson made unauthorized withdrawals from the bank accounts of at least seven active-duty Marines who had recently graduated from boot camp. Simpson convinced them to allow him to make recurring withdrawals from their accounts in nominal amounts to support the charity. Instead, he used their debit card numbers to make unauthorized withdrawals from their accounts in a combined total amount of more than $5,000.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and Naval Criminal Investigative Service (NCIS). Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.
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Former Bedford VA Nursing Assistant Charged with Making False StatementsRead the Press Release
BOSTON – A former nursing assistant at the Veterans Affairs (VA) Medical Center in Bedford was charged today in federal court in Boston for making false statements to federal agents in connection with an investigation of a patient’s death.
Patricia A. Waible, 52, of Nashua, N.H., was charged in an Information and agreed to plead guilty to two counts of making false statements. Waible will appear in federal court in Boston at a later date.
As alleged in court documents, on July 3, 2016, Waible, a nursing assistant, worked the overnight shift from midnight to 8:00 a.m. at the Bedford VA’s nursing home unit. During the shift, Waible’s responsibilities included conducting hourly bed checks to check on patients’ breathing. Early that morning, a patient who suffered from several serious medical ailments was found unresponsive and not breathing. The patient was transferred by ambulance to an emergency room, where he was later pronounced dead. During the ensuing investigation, on two separate occasions, Waible falsely stated to federal agents that she had conducted the hourly checks on the patient during her shift.
The charge of making false statements provides for a sentence of no greater than five years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Sean Smith, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, made the announcement today. Assistant U.S. Attorneys Amanda P.M. Strachan, Chief of Lelling’s Health Care Fraud Unit, and William B. Brady, also of Lelling’s Health Care Fraud Unit, are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Protective Service Commander and North Carolina Man Indicted for Conspiracy and Scheme to Defraud the Social Security AdministrationRead the Press Release
SACRAMENTO, Calif. — A 16-count superseding indictment by a federal grand jury was unsealed today against Darron Dimitri Ross, 33, of Charlotte, North Carolina, and Joshua Bilal George, 36, of San Diego, including charges of conspiracy to defraud and commit crimes against the United States, theft of government property, aggravated identity theft, wire fraud, and money laundering, U.S. Attorney McGregor W. Scott announced.
This recent indictment supersedes a December 20, 2018, indictment that charged Ross and alleged co-conspirator Eric Lemoyne Willis, 43, of West Sacramento. On June 17, 2019, Willis pleaded guilty to charges in the original indictment, including conspiracy to defraud the United States, theft of government property, and aggravated identity theft.
According to court documents, Willis, Ross, and George conspired to steal public money from the Social Security Administration (SSA). Willis worked as an SSA Operation Supervisor in Sacramento and Lodi from at least 2015 until his departure in January 2018. In this timeframe, Willis used his authority as an SSA employee to access the confidential Social Security records of numerous Social Security beneficiaries. These records contained personally identifiable information (PII) including names, addresses, social security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Willis sought out PII for beneficiaries who used direct deposit for payment of large benefits. Willis then transferred this PII to his co-conspirators, including Ross who resided in North Carolina, and George who worked as a Federal Protective Service Officer in San Diego.
According to court documents, Ross’s and George’s role in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. The conspirators opened at least 44 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. During these calls, Ross and George convinced some of the SSA representatives that they were the identity-theft victims, and they caused the representatives to change the direct deposit account numbers to the fraudulent account numbers. The SSA then deposited the benefit payments into the fraudulent accounts until the fraud was detected. The conspirators were then free to withdraw the funds at ATMs and spend the money using debit cards.
SSA has identified at least 160 beneficiaries who were victims these crimes, and the total fraud loss suffered by SSA has exceeded $480,000.
This case was the product of an investigation by the Social Security Administration – Office of the Inspector General, the Federal Bureau of Investigation, and the Department of Homeland Security – Office of the Inspector General. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Federal agents arrested George this morning in San Diego, and he made his initial appearance in the Southern District of California. Willis is released on bond pending his sentencing, and Ross is released on bond pending trial.
If convicted of wire fraud, Ross and George face a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of aggravated identity theft, they each face a mandatory sentence of two years in prison consecutive to any other sentence imposed. The maximum sentence for theft of government property is 10 years in prison and a $250,000 fine. The maximum sentence for conspiracy is five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Prisoner Who Tried to Hire a Hitman to Kill Two People Sentenced to 20 More Years in PrisonRead the Press Release
A man who was serving a fifteen-year federal prison sentence when he tried to hire a “hitman” to murder two people in Northeast Iowa was sentenced today to 20 years in federal prison.
Jason Harriman, age 45, formerly of Traer and Independence, Iowa, received the prison term after a January 29, 2019, jury verdict finding him guilty of two counts of murder-for-hire.
The evidence at trial showed that in 2011, Harriman was sentenced to serve fifteen years in federal prison for unlawfully possessing a gun and ammunition. While in federal prison in Arkansas, Harriman made multiple phone calls and sent multiple emails to an individual he thought was a hired killer, but was actually an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. After meeting with the “hitman” in person in the prison, Harriman signed a contract calling for the murders of two people who were living in Northeast Iowa. Harriman agreed to pay the “hitman” $21,000 and had already given the “hitman” a 1969 Dodge Charger as a down payment. During a later phone conversation with the undercover agent, Harriman asked the agent to photograph and record the murders, so that Harriman could watch the recordings after he got out of prison.
Harriman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Harriman was sentenced to 240 months’ imprisonment, which was ordered to run consecutively to his prior federal sentence. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Harriman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Anthony Morfitt and Kyndra Lundquist and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bureau of Prisons Special Investigative Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR_2033.
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Federal Jury Convicts Member of Memphis’ Peda Roll Mafia Street GangRead the Press Release
Memphis, TN – After an hour and a half of deliberations, a federal jury convicted John Shields, 33, a/k/a/ "John John," a/k/a/ "John Juan," with conspiracy to distribute more than a kilogram of heroin; conspiracy to distribute more than 500 grams of a mixture and substance of methamphetamine; possession with intent to distribute more than one kilogram of heroin; and conspiracy to commit money laundering. U.S. Attorney D. Michael Dunavant announced the guilty verdict today.
In June 2017, twenty-two members and associates of the Grape Street Crips/The Peda Roll Mafia were charged by a federal grand jury with multiple drug and money laundering offenses.
According to information presented in court during a week-long jury trial, Shields is a member of the Peda Roll Mafia, which is a subset of the Grape Street Crips. The evidence at trial showed that Shields received multiple kilograms of heroin and multiple pounds of methamphetamine from his California-based suppliers, which were then distributed in the Western District of Tennessee. Shields laundered proceeds of his drug sales through national banks such as Bank of America and Wells Fargo.
U.S. Attorney D. Michael Dunavant said, "Criminal enterprises and street gangs that distribute harmful and addictive drugs into our communities for profit can no longer operate with impunity. Thanks to the outstanding work of our law enforcement partners, we are targeting gangs to dismantle their drug trafficking organizations and financial structures. The quick and decisive verdict by the jury also shows that law-abiding citizens will not tolerate this dangerous criminality."
The investigation was the result of a cooperative, multi-agency investigative effort, which included the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Postal Inspection Service (USPIS), Drug Enforcement Agency (DEA), U.S. Marshals
Service, Memphis Police Department’s Organized Crime Unit, and the Shelby County Sheriff’s Department.
Sentencing is set for October 18, 2019, before U.S. District Court Judge Thomas L. Parker. Shields faces a mandatory minimum sentence of 10 years in federal prison.
Assistant U.S. Attorneys Kevin Whitmore and Mark Erskine are prosecuting this case on behalf of the government.
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Federal Home Loan Bank Execs Plead Guilty Mid-TrialRead the Press Release
Several days into their trial, two former Federal Home Loan Bank executives pleaded guilty to conspiring to lie to the government-sponsored financial institution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Terence Carlyle Smith, former FHLB - Dallas President, and Nancy B. Parker, former Chief Information Officer, both pleaded guilty to conspiracy to make false statements to a Federal Home Loan Bank.
Mr. Smith, 62, entered his plea before U.S. District Judge Jane J. Boyle on Friday morning, midway through the prosecution’s case; Ms. Parker, 66, made her plea on Tuesday morning, before trial recommenced. The jury was dismissed on what would have been the sixth day of trial.
“These defendants attempted to trick a Federal Home Loan Bank into footing the bill for their exorbitant personal travel,” said U.S. Attorney Nealy Cox. “We believe they were right to plead guilty, even at this late date, and are confident justice will be served at sentencing.”
“The actions of these defendants placed at risk the public’s trust in the Federal Home Loan Bank of Dallas. The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to investigating allegations of fraud committed against the Government Sponsored Enterprises, including the 11 Federal Home Loan Banks,” said Catherine Huber, Special Agent in Charge of the FHFA-OIG’s Central Region Office. “We are proud to have partnered with the U.S. Attorney’s Office for the Northern District of Texas in this case.”
In plea papers, the pair admitted that from 2009 to 2013, they submitted dozens of bogus expense reports to FHLB, claiming they’d attended professional conferences they never visited -- prompting FHLB to foot the bill for what was actually personal travel to Florida, California, and Nevada. They also admitted to repeatedly falsely reporting their number of unused vacation hours.
Their pleas come on the heels of a pre-trial plea by former FHLB-Dallas Chief Financial Officer Michael Sims, who pleaded guilty to misprision of a felony, or concealing knowledge of the actual commission of a felony, on June 27.
According to the Indictment filed in 2017, the scheme cost FHLB more than $1.2 million -- $780,000 in travel expenses, including airfare, limousine rides, concerts, vineyard tours, luxury hotel rooms, and lavish meals for Mr. Smith, Ms. Parker, Mr. Sims and several colleagues, and $450,000 in unused vacation time reimbursements.
Mr. Smith and Ms. Parker each face up to five years in federal prison, and will both be required to pay restitution. In addition, as part of their plea agreements, both agreed to repay FHLB - Dallas for attorneys’ fees incurred by the bank and its insurance carrier; Mr. Smith will pay $4.2 million and Ms. Parker will pay just over $227,900.
Mr. Sims, meanwhile, faces three years in federal prison, and will also be required to pay restitution.
The Federal Housing Finance Agency Office of Inspector General led the investigation. Assistant U.S. Attorneys Errin Martin, Lindsey Beran, Tiffany Eggers, and Douglas Brasher prosecuted the case.
Elyria man who stabbed woman during carjacking sentenced to 10 years in federal prisonRead the Press Release
An Elyria man who stabbed a woman during a carjacking was sentenced to 10 years in federal prison.
Johnny G. Mack III, 39, previously pleaded guilty to carjacking.
Mack forced a woman out of her 2016 Nissan Altima while she was at a gas station on December 12, 2018. He pulled a knife and threatened to stab the driver as he pushed her into her car. Mack stabbed the victim, causing small puncture wounds to her legs, stomach and hands, according to court documents.
He was arrested two days after the incident.
This case was investigated by the FBI and Elyria Police Department. It was prosecuted by Assistant U.S. Attorneys Scott Zarzycki and John Hanley.
This case was part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
District Man Pleads Guilty to Unlawful Distribution of Cocaine BaseRead the Press Release
Devierre Cheppell, 28, of Washington, D.C., pled guilty today to the unlawful distribution of cocaine base, announced U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Steven A. Sund, Chief of the United States Capitol Police.
Cheppell, who is designated a career offender due to his prior drug-related convictions, pled guilty before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia to one count of unlawful distribution of cocaine base. Cheppell faces 75 months in prison followed by five years of supervised release and a fine up to $1,000,000 if a plea agreement is reached with the Government and accepted by the Court. As part of his plea, Cheppell accepted responsibility for possessing with intent to distribute 31.3 grams of cocaine base. Cheppell’s conviction will represent his third cocaine-related conviction. Judge Walton scheduled Cheppell’s sentencing for October 17, 2019.
According to the Government’s evidence, on October 1, 2018, members of the Metropolitan Police Department (MPD) First District Crime Suppression Team observed what appeared to be a hand-to-hand transaction between Cheppell and another individual. Cheppell handed the object to the man who then walked into a nearby alley near 35 E Street, N.W. Officers located the man in the alley and observed him in the process of smoking crack cocaine. Meanwhile, after the hand-to-hand transaction, Cheppell was observed riding his bicycle northbound into the 500 block of New Jersey Avenue, N.W. When asked to stop, Cheppell abandoned his bicycle and fled, running alongside the area of the Washington Court Hotel located at 525 New Jersey Avenue, N.W. He was apprehended and admitted to possessing cocaine inside of his undergarments. A search revealed the cocaine and 148 plastic zips containing a white rock-like substance, later determined to be 23.96 grams of cocaine base.
Cheppell was released on his personal recognizance under the supervision of pretrial services at presentment in D.C. Superior Court. Less than one month later, he was arrested again. On November 13, 2018, Cheppell was observed by United States Capitol Police officers driving a blue Infiniti sports utility vehicle in the area of G Street N.W. A traffic stop by the officers resulted in the recovery of 101 baggies containing a total of 7.34 grams of cocaine base, and $1,117.00 in U.S. currency from Cheppell.
In announcing the plea, U.S. Attorney Liu commended the assistance provided by our joint law enforcement partners. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Nurudeen Elias and Mervin A. Bourne, Jr. of the Violent Crime and Narcotics Trafficking Section.
Delaware man indicted on drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Durrion Joshua Morrison, of Wilmington, Delaware, was indicted by a federal grand jury today on cocaine charges, United States Attorney Bill Powell announced.
Johnson, also known as “Nephew,” age 30, is charged with two counts of “Distribution of Cocaine Base” and one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Base.” Johnson is accused of selling cocaine base, also known as “crack,” and possessing more than 28 grams of cocaine base in July 2016 in Berkeley County.
Johnson faces up to 20 years incarceration and a fine of up to $1,000,000 for each distribution count. He faces not less than five years and up to 40 years incarceration and a fine of up to $5,000,000 for the aiding and abetting count. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
DeBordieu Bookkeeper Sentenced to 18 Months in Federal PrisonRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Shirley Watson, age 43, of Georgetown, was sentenced in federal court for her role in a multi-year scheme to embezzle funds from her employer, two family-owned real estate businesses. United States District Court Judge David C. Norton of Charleston sentenced Watson, who has no prior criminal record, to 18 months in federal prison.
In January 2019, Watson pleaded guilty to a three-count Information, admitting to two counts of Bank Fraud and one count of Tax Evasion. She admitted that beginning in 2011 and continuing up through 2016, she used her position as a bookkeeper to divert hundreds of thousands of dollars in company funds to herself. She exploited her access to company accounts, writing checks to herself and forging her employer’s signature. She also admitted that she neither reported the income to the Internal Revenue Service nor paid any related taxes.
Upon her release from prison, Watson must pay restitution in the amount of $345,337.43 to the victims and $82,825 to the IRS. Watson will also serve a three-year term of court-ordered supervision.
The case was investigated by special agents with the Internal Revenue Service and the Federal Bureau of Investigation. Assistant United States Attorney Matt Austin of the Charleston office prosecuted the case.
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Correctional Dietary Officer and Two Others Plead Guilty to Federal Charges Related to Maryland Correctional Institute JessupRead the Press Release
Baltimore, Maryland – Patricia McDaniel, Correctional Dietary Officer, age 26, of Baltimore; Tyirisha Johnson, age 23, of Baltimore, each pleaded guilty today to a federal racketeering charge related to the Maryland Correctional Institute Jessup (MCIJ), and India Parker, age 33, of Parkville, Maryland, pleaded guilty to a drug distribution conspiracy, for participating in a scheme to smuggle contraband, including narcotics, unauthorized flash drives, tobacco, and cell phones into the prison.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
“Federal, state, and local officials will continue to work together to root out corrupt employees and others who undermine the administration of justice at our prisons,” said U.S. Attorney Robert K. Hur.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
According to their plea agreements, McDaniel, Johnson and Parker conspired with inmates and others to smuggle contraband into MCIJ, including narcotics, cell phones, unauthorized flash drives, and tobacco. McDaniel admitted that she abused her position of trust as a sworn officer of DPSCS by soliciting and receiving bribes in exchange for bringing contraband into MCIJ. Johnson and Parker admitted that as outside facilitators they managed the proceeds of illegal contraband sales for specific inmates, obtained contraband including, but not limited to, Suboxone strips, Percocet, MDMA, K2, and tobacco from additional co-conspirators, and provided the contraband and bribe payments to MCIJ employees and contractors to smuggle into the prison. Payments for contraband were sent by inmates through PayPal, Green Dot, and Western Union to Johnson and Parker. Inmates and facilitators, such as Johnson and Parker, paid COs, employees, and contractors for smuggled contraband in cash, money orders, Green Dot cards, and using PayPal and other electronic forms of payment.
As detailed in her plea agreement, in order to smuggle contraband into the facility, McDaniel often entered on weekends and secreted the packages on her person in order to avoid detection. Once inside the facility, McDaniel would deliver the packages to an inmate with whom she had a personal relationship, or to other MCIJ inmates. McDaniel was compensated in cash and by PayPal MyCash.
McDaniel, Johnson, and Parker were all overheard by law enforcement on a series of recorded calls arranging for contraband to be smuggled into MCIJ and arranging payment for the contraband and for bribes.
McDaniel, Johnson, and Parker each face a maximum sentence of 20 years in prison. U.S. District Judge Paula Xinis has scheduled sentencing for Johnson on September 20, 2019, and for Parker and McDaniel on October 2, 2019.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 80 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Robert K. Hur commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
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Convicted Sex Offender Sentenced to 23 Years on Drug ChargesRead the Press Release
CHARLOTTE, N.C. B U.S. District Judge Max O. Cogburn, Jr. sentenced late yesterday Keith Antonio Barnett, 47, of Gastonia, N.C., to 23 years in prison and six years of supervised release on drug conspiracy and related drug charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; John Eisert, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte; Chief Robert C. Helton of the Gastonia Police Department; and Chief Joseph D. Ramey of the Gaston County Police Department.
According to filed court documents, the sentencing hearing, and evidence presented at Barnett’s trial, beginning from at least 2016, Barnett was part of a drug conspiracy operating in Gaston County, and was responsible for trafficking more than 280 grams of crack cocaine. The evidence at trial also established that, in October 2017, while executing a search warrant at a Gaston County residence that was being used as a drug house, law enforcement arrested Barnett, and recovered more than 120 grams of crack cocaine, over 40 grams of cocaine, more than six grams of heroin, and approximately $3,000 in cash.
A federal jury convicted Barnett in November 2018 of conspiracy to distribute and possession with intent to distribute crack cocaine; distribution and possession with intent to distribute crack cocaine; and possession with intent to distribute cocaine, crack cocaine, and heroin.
Barnett received an enhanced sentence because the Court found the defendant made credible threats of violence against witnesses, committed obstruction by testifying falsely at trial, and maintained a premises for distribution of controlled substance.
Barnett has a prior criminal history that includes two convictions for Possession of Crack Cocaine in 1991; Indecent Liberties with a Child in 1997; Criminal Domestic Violence of a High and Aggravated Nature in 2006; Failure to Register as a Sex Offender in 2010; and Failure to Register as a Sex Offender in 2013.
Barnett is currently in federal custody. All federal sentences are served without the possibility of parole.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), which is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray credited the FBI and HSI in Charlotte for their investigation of this case, and thanked the Gastonia Police Department and Gaston County Police Department for their invaluable assistance.
Assistant U.S. Attorneys Steven R. Kaufman and Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Convicted Felon Sentenced to 130 Months in Federal Prison for Distributing Fentanyl while Possessing a FirearmRead the Press Release
Memphis, TN - Zacharia Mitchell, 31, has been sentenced to 130 months in federal prison for conspiracy to possess with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking, and for a being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on January 11, 2018, while conducting a drug transaction for an ounce of heroin in the parking lot of a Memphis area Kroger, Mitchell and two other individuals were arrested. Officers with the Memphis Police Department Organized Crime Unit were on the scene and witnessed the drug transaction. The defendant Mitchell handed a white powdery substance out of his window in exchange for cash.
When the defendants were arrested, Mitchell ran and was apprehended in the parking lot of the Kroger by law enforcement. Another individual ran into the Kroger store, throwing his gun under a fruit stand as he fled. All three individuals were eventually apprehended. Mitchell was found to possess a 9 mm handgun at the time of the drug transaction. The gun was found in the driver's side floorboard, where he had been sitting prior to his arrest. As a result of Mitchell’s prior felony convictions for Facilitation of Aggravated Robbery and Possession of a Controlled Substance with Intent to Deliver, as well as prior misdemeanor convictions for Domestic Violence, he was prohibited from possessing a firearm under federal law.
A laboratory test confirmed that the recovered drugs were an ounce of fentanyl rather than the heroin that was originally requested. One dosage unit of heroin is approximately one tenth of a
gram. Fentanyl is a synthetic opioid that is 30 to 50 times stronger than heroin. One ounce of fentanyl is enough to kill or cause serious bodily injury to hundreds of people.
On Monday, July 22, 2019, Senior U.S. District Court Judge Jon P. McCalla sentenced Mitchell to 130 months in federal prison followed by 3 years of supervised release.
U.S. Attorney D. Michael Dunavant said, "This offender presented a triple threat of serious bodily injury and death: a prior convicted felon in possession of a loaded firearm while distributing the most deadly and addictive substance on the streets. This sentence protects the community by incapacitating a repeat dangerous offender, and achieves justice by providing proper punishment according to law."
This case was investigated by the Memphis Police Department Organized Crime Unit and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
This case was part of the West Tennessee Heroin Initiative, a collaboration of local and federal law enforcement that prosecutes opioid cases in West Tennessee.
Special Assistant United States Attorney Joseph Griffith prosecuted this case on behalf of the government.
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Convicted Felon Sent Back to Prison for Possessing Stolen Mail and A Stolen FirearmRead the Press Release
Immanuel Bradley received consecutive sentences because of his long criminal record
GRAND RAPIDS, MICHIGAN — Immanuel Bradley, 33, of Kalamazoo, Michigan was sentenced to a total of 78 months’ imprisonment for possession of stolen mail and being a felon in possession of a firearm, U.S. Attorney Andrew Birge announced today. The Hon. Paul Maloney, U.S. District Court Judge, sentenced Bradley above the guideline range due to his long history of recidivism, and ran the sentences for his two offenses consecutively in the interest of public safety.
In October, 2018, Kalamazoo police were dispatched to the location of a reported stolen car. They found Bradley with a backpack full of stolen mail, including checkbooks and other financial instruments. Police obtained a search warrant for Bradley’s residence, and found a garbage bag full of similar items, including stolen checks, driver’s licenses, passports, social security cards and credit cards. They also recovered a loaded .223 caliber magazine for an AR-15 style semiautomatic assault rifle.
In February 2019, Kalamazoo police responded to a shoplifting complaint at a D&W grocery store in the city. When they apprehended Bradley, he hid a loaded Smith & Wesson, .40 caliber semiautomatic pistol in a display basket by the checkout aisles. He fought with officers when they attempted to handcuff him, and escaped from the store with police in hot pursuit. Bradley forced his way into the occupied home of a nearby woman, who fled and alerted police. After a standoff with the Kalamazoo Department of Public Safety’s SWAT team, he was arrested without further incident. Police retrieved the pistol from the store and determined it had been stolen from a Portage residence in January 2019.
At sentencing, Bradley denied the pistol was stolen, claiming he bought it from the registered owner. After the owner and her fiancé refuted his claim in sworn testimony, Judge Maloney denied Bradley credit for acceptance of responsibility. The Judge noted Bradley’s long history of serious criminal convictions, including other breaking and entering and home invasion offenses. He also noted Bradley had repeatedly violated parole in the past, and committed his most recent crimes only a few months after getting off state supervision for his last conviction.
This case was investigated by the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Kalamazoo Department of Public Safety.
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Captain Pleads Guilty to Obstructing Coast Guard InvestigationRead the Press Release
GREENVILLE – United States Attorney Robert J. Higdon, Jr. announced that in federal court, before United States District Judge James C. Dever III, WILLIAM JUEL, 51, of Little River, South Carolina entered a guilty plea to obstructing a Coast Guard investigation at sea in violation of Title 18, United States Code, Sections 2232 and 2.
According to information in the public record, JUEL was the Captain of the commercial fishing vessel Island Runner. On November 30, 2017, while on routine partrol, the United States Coast Guard Cutter Cormorant approached the Island Runner in federal waters to conduct a boarding. As the Cormorant approached the Island Runner, Coast Guard servicemembers observed and videotaped JUEL and his mate throwing fish overboard. Further investigation revealed that JUEL illegally harvested the fish and was discarding the fish in order to prevent the Coast Guard from seizing the catch. The illegally harvested fish, which had also been gutted, included primarly Snowy Grouper as well as small amounts of Yellow Edge Grouper, Wreckfish and Amberjack. Five months before the boarding, on June 22, 2017, NOAA Fisheries imposed a commercial closure on the harvest of Snowy Grouper because the quota had been reached for the year. JUEL was aware of the closure at the time of the offense.
“This prosecution make clear that efforts to obstruct investigations and to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations – will be enforced vigorously,” said U.S. Attorney Robert J. Higdon, Jr.
“The crew of Coast Guard Cutter Cormorant partnered closely with the Coast Guard Investigative Service (CGIS) and the National Oceanic and Atmospheric Administration’s Office of Law Enforcement (NOAA LE) on this case.” said Captain John Reed, Commander of U.S. Coast Guard Sector Charleston. “This case highlights the Coast Guard’s continued commitment to, and the value of, at-sea enforcement of fisheries regulations, in order to preserve our vital marine resources. Our cutters work to ensure a level playing field for all, as the majority of fishermen abide by the regulations and expect that their competitors will as well.”
A sentencing hearing has been scheduled for the Court’s October 21, 2019, term of court. JUEL faces a maximum sentence of five years in prison, a $250,000 fine, and three years supervised release.
Investigation of this case was conducted by Coast Guard Investigative Service and the National Oceanic and Atmospheric Adminstration – Office of Law Enforcement. Assistant United States Attorney Banumathi Rangarajan is representing the government.
Brooklyn Man Who Submitted over 1,800 Fraudulent Immigration Applications Indicted on Twelve Counts of Making False Statements in Immigration DocumentsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on July 18, 2019, a federal grand jury returned a 12-count indictment against Arleigh Louison, 53, of Brooklyn, New York, charging him with running an immigration fraud scheme that included the filing of false statements with United States Citizenship and Immigration Services, including over 1,800 fraudulent applications for over 1,000 petitioners within the last four years. Diplomatic Security Service (DSS) agents arrested Louison today in Brooklyn, New York, and executed a federal search warrant at his office. Louison will appear later today in the United States District Court for the Eastern District of New York. Louison’s arraignment in the District of Vermont has not yet been scheduled.
The indictment charges that the false statements were made in connection with Form I-360 petitions for status adjustments under the Violence Against Women Act (VAWA). In short, the indictment charges that Louison presented or caused the presentment of adjustment of status petitions containing false statements to the United States Citizenship and Immigration Services Service Center in St. Albans, Vermont claiming that the petitioners were victims of abuse. The indictment also charges that these petitioners, who paid Louison for his services, did not discuss abuse with Louison, were not abused as described in the petitions, and did not authorize the statements made in the petitions Louison submitted to USCIS. The indictment also charges that Louison fabricated fee waiver petitions on behalf of these individuals without their knowledge.
Under VAWA, a person may be eligible to become a lawful permanent resident if they are the victim of battery or extreme cruelty committed by a U.S. citizen spouse or former spouse, a U.S. citizen parent, a U.S. citizen son or daughter, a lawful permanent resident (LPR) spouse or former spouse, or an LPR parent. An initial VAWA petition utilizing Form I-360 is often filed in conjunction with separate forms for work authorization (I-765 Employment Authorization Document “EAD card”) and permission to travel outside the United States (I-131 Application for a Travel Document). It is alleged that Louison submitted false information in the VAWA petitions so that the petitioners could secure EAD cards.
The charges against Louison are merely accusations and he is presumed innocent unless and until he is proven guilty.
United States Attorney Christina E. Nolan commended the investigative efforts of agents of the State Department’s Diplomatic Security Service. She stated: “The U.S. Attorney’s Office and its law enforcement partners prioritize prosecution of large-scale, complex fraud in all its forms. Profit-motivated immigration fraud is a serious offense, and we will treat it accordingly. We thank our strong partners at DSS for consistently working so diligently with our prosecutors to hold white collar criminals accountable.”
Assistant U.S. Attorney Nikolas Kerest represents the United States. An attorney for Louison has not yet noticed an appearance in the District of Vermont.
Brecksville man charged with fraud conspiracy for stealing products from another company, relabeling them and selling the product to health care providersRead the Press Release
A Brecksville man was charged with conspiracy to commit wire fraud after he and another man conspired to steal products from another company, relabel them and sell the product under false pretenses to various health care providers.
Ryan H. Tennebar, 38, was the Director of Operations at Healthcare Essentials Inc. (HEI), an Ohio company that primarily distributed negative pressure therapy systems, also known as wound care vacuums, which promote wound healing by delivering negative pressure to patients’ wounds.
Kinetic Concepts, Inc. (KCI) was a corporation whose parent company was based in Texas. KCI developed, manufactured, and distributed proprietary wound care vacuums. KCI maintained exclusive rights for sale and distribution of its wound care vacuums to its customers, which typically included nursing homes, hospitals and rehabilitation centers.
According to the criminal information filed in U.S. District Court:
Tennebar conspired with a person identified as co-conspirator number one, who worked for KCI at a facility in El Paso. Tennebar communicated with the conspirator between 2013 and 2016 to request KCI wound vacuums, which were illegally taken from KCI facilities, nursing homes, hospitals and rehabilitation centers. The conspirator continued to fraudulently acquire KCI wound care vacuums even after he was terminated as a KCI employee in 2014.
Tennebar and the conspirator fraudulently relabeled the KCI products with HEI labels. The original KCI serial numbers were often obliterated.
Tennebar then falsely represented to HEI’s prospective customers that HEI was an authorized distributor of KCI wound care vacuums.
Tennebar sent the conspirator approximately $619,000 between 2013 and 2016 for stolen wound care vacuums. The actions of Tennebar, the conspirator and others resulted in a loss to KCI of approximately $4.2 million, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and Matthew B. Kall following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Biddeford Man Sentenced to Eight Years for Possession with Intent to Distribute MethamphetamineRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Joshua Kaufman, 33, of Biddeford, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to eight years in prison and five years of supervised release for possession with intent to distribute methamphetamine. He pleaded guilty on January 23, 2019.
Court records reveal that on February 21, 2018, law enforcement seized approximately 170 grams of methamphetamine and 56 grams of cocaine from a package shipped from Texas to the defendant. Later that same day, law enforcement agents searched a vehicle under the control of the defendant and seized more methamphetamine. The seized drugs were intended for distribution in Southern Maine.
This case was investigated by the U.S. Postal Inspection Service and Southern Maine Gang Task Force, which is comprised of investigators from the FBI; the Portland, South Portland and Lewiston Police Departments; the York County Sheriff’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Drug Enforcement Administration.
Berkeley County woman indicted on firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Cassandra Elaine Riggs, of Hedgesville, West Virginia, was indicted by a federal grand jury today on firearms charges, United States Attorney Bill Powell announced.
Riggs, age 30, is charged with one count of “Unlawful Possession of a Firearm” and one count of “Unlawful Possession of Ammunition.” Riggs, who is prohibited from having a firearm or ammunition because of previous felony convictions, is accused of having a .223 caliber semi-automatic rifle and 20 rounds of .223 caliber ammunition in October 2018 in Berkeley County.
Riggs faces up to 10 years incarceration and a fine of up to $250,000 for each count. 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.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Probation Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Akron man indicted for having a loaded handgun, methamphetamine, carfentanil and crack cocaineRead the Press Release
An Akron man was indicted in federal court of firearms and drug charges for having a loaded handgun, methamphetamine, carfentanil and crack cocaine.
Justin Horton, 25, was indicted on one count of possession of a firearm in furtherance of drug trafficking, one count of felon in possession of a firearm and ammunition and three counts of possession with intent to distribute controlled substances.
Horton possessed methamphetamine, carfentanil and crack cocaine on March 7, according to the indictment.
He also possessed a Smith & Wesson 9 mm handgun and ammunition on March 7. He was prohibited from having a firearm because of previous convictions for discharging a firearm into a habitation or school, as well as burglary, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the ATF and Ohio State Highway Patrol. The case is being prosecuted by Assistant United States Attorney Peter E. Daly.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
22 July 2019
Wilburton Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Danny Joe Patrick, age 51, of Wilburton, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about April 5, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Latimer County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Wetzel County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Robert Lee Lemasters, of Wheeling, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Lemasters, age 55, pled guilty to one count of “Unlawful Possession of a Firearm.” Lemasters, who is prohibited from having a firearm because of a prior conviction, admitted to having a 9mm caliber pistol and 16 rounds of ammunition in Wetzel County in October 2018.
Lemasters is facing up to 10 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.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, West Virginia State Police, and the Paden City Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
United States and Tennessee File Suit Against Comprehensive Pain Specialists and Principal Physician OwnersRead the Press Release
NASHVILLE, Tenn. – July 22, 2019 - The United States and Tennessee today filed a consolidated complaint in intervention alleging violations of the False Claims Act and the Tennessee Medicaid False Claims Act by Anesthesia Services Associates, PLLC, d/b/a Comprehensive Pain Specialists (CPS), announced U.S. Attorney Don Cochran for the Middle District of Tennessee and Tennessee Attorney General Herbert Slatery III. The complaint also names as defendants Dr. Peter B. Kroll, of Goodlettsville, Tennessee; Dr. Steven R. Dickerson, of Nashville; and Dr. Gilberto A. Carrero, of Nashville, three of the principal owners of CPS, as well as John Davis, of Franklin, Tennessee, the former CEO, who was convicted by a jury in April of this year of violating the Anti-Kickback Statute; and Russell S. Smith, a chiropractor from Cleveland, Tennessee. The complaint also states claims for violation of the Federal Priority Statute and common law claims, including unjust enrichment and fraud.
As set forth in detail in the complaint, beginning in 2011 under the direction of John Davis, CPS instituted policies to maximize profits through medically unnecessary and excessive testing, including a standing order to automatically conduct quantitative drug testing, specimen validity testing, genetic blood testing and psychological testing on virtually all patients, without regard to individual patient risks or need. In July 2012, CPS began operating its own testing facility in Franklin, Tennessee. To ensure more revenue was generated, CPS required providers to send all urine specimens and blood work to its lab for testing. The reimbursement rate for lab testing is nearly five times the rate of on-site testing.
In addition, John Davis was aware that CPS had submitted false claims and received over $130,000 for non-reimbursable acupuncture, including for services rendered by the physician owner defendants. Yet, Davis made the decision not to refund the overpayment to Medicare.
The physician owners, Drs. Dickerson, Kroll, and Carrero, knew about each of these unlawful practices, as they personally engaged in the submission of false claims relating to this conduct.
John Davis also engaged in a practice of upcoding, altering the claims submitted by providers to maximize the amount of reimbursement from the government.
The complaint also alleges separately that Dr. Peter Kroll was responsible for submitting claims to the United States falsely indicating that he was the Rendering Provider. In one particularly egregious example of this fraudulent conduct, Dr. Kroll caused over 2,500 claims to be submitted to Medicare, for which CPS was paid almost $350,000 for procedures and testing on patients during a period of time when Dr. Kroll was out of the country on vacation. As a result of this conduct, Medicare has revoked Dr. Kroll’s billing privileges.
Despite the governments’ investigation, CPS continued to submit false claims until 2018, when it began the process of dissolution. The governments allege that the scheme defrauded Medicare and TennCare of at least $25 million, and the United States and Tennessee are seeking to recover treble damages, plus penalties for the thousands of false claims submitted, pursuant to the False Claims Act and the Tennessee Medicaid False Claims Act.
The governments began investigating the wrongdoing alleged in today’s complaint in response to lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act and the Tennessee Medicaid False Claims Act, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery.
The matter was investigated by the Department of Health and Human Services, Office of Inspector General, and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Kara F. Sweet represents the United States, and Assistant Attorney General Philip Bangle represents Tennessee.
The claims alleged by the United States and Tennessee are allegations only, and there has been no determination of liability. The lawsuit is captioned United States and the State of Tennessee ex. Rel. Suzanne Alt, et al. v. Anesthesia Services Associates, PLLC, et al., Case No. 3:16-cv-00549 (M.D. Tenn.).
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Union Township Man Charged with Running $400 Million Unlicensed Check Cashing OperationRead the Press Release
NEWARK, N.J. – A Union Township, New Jersey, resident with businesses in Newark will appear in court today on charges that he operated a massive unlicensed check cashing operation that cashed over $400 million in checks, U.S. Attorney Craig Carpenito announced.
Fernando Q. Martins, 40, of Union, is charged by complaint with one count of operating an unlicensed money transmitting business. He was arrested on Friday, July 19, 2019, and had an initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Martins is expected to appear before Judge Hammer at 12:30 p.m. today for a bail hearing.
According to documents filed in this case and statements made in court:
Since at least 2015, Martins, despite holding no license, operated a scheme in which he cashed checks, mostly from customers in the construction and building trades, for a fee. In total, Martins and those working for him cashed over $400 million in checks. In addition to cashing checks for his customers, Martins also facilitated the scheme by allowing customers to write checks to businesses he controlled. In exchange for their fees, Martins’ customers could avoid the cash being reported on Currency Transaction Reports. This facilitated the customers’ ability to pay off-the-books employees and laborers in cash and avoid payroll and income taxes.
The charge of operating an unlicensed money transmitting business carries a maximum potential penalty of 5 years in prison and a fine of the greater of (1) twice the gross financial gain derived from the offense, (2) twice the loss caused by the offense, or (3) $250,000.
U.S. Attorney Carpenito credited agents of the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark with the investigation leading to the charge against Martins.
The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.
Defense counsel: Chester Keller, Esq.
U.S. Attorney’s Office Partner with Cumberland County Council on Older Adults to Promote Elder Justice InitiativeRead the Press Release
RALEIGH – The U.S. Attorney’s Office for the Eastern District of North Carolina is promoting the Department of Justice’s (DOJ) Elder Justice Initiative (EJI) throughout the Cumberland County area. On July 22, 2019, the Eastern District partnered with the Cumberland County Council on Older Adults to conduct outreach to approximately 600 seniors in the area to raise awareness about DOJ’s Elder Justice Initiative and provide facts about elder abuse. Elder abuse includes physical abuse, psychological abuse, sexual abuse, neglect and abandonment, and financial abuse.
Below are some facts shared with the community about the impact of elder abuse, neglect and exploitation:
- Elder abuse triples the risk of premature death and causes unnecessary illness, injury, and suffering.
- Victims of elder abused are four times more likely to be admitted to a nursing home and three times more likely to be admitted to a hospital.
- Financial exploitation causes large economic losses for businesses, families, elders, and government programs, and increases reliance on federal and state health care programs, such as Medicare and Medicaid.
- Older adults with cognitive incapacity suffer significantly greater economic losses than those without such incapacity.
- As a result of providing care for an older adult, some caregivers experience declines in their own physical and mental health.
The mission of the Elder Justice Initiative is to support and coordinate DOJ’s enforcement and programmatic efforts to prevent and combat elder abuse, neglect, financial exploitation and scams that target our nation’s seniors by promoting justice for older adults; helping older victims and their families; enhancing state and local efforts through training and resources; and supporting research to improve elder abuse policy and practice.
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. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1- 855-4VICTIM (1-855-4842846), or contact the Elder Justice Coordinator at the U.S. Attorney’s Office for the Eastern District of North Carolina at (919) 856-4530.
Two Plead Guilty in West End Drug CaseRead the Press Release
PITTSBURGH – Two residents of Pittsburgh, PA, have pleaded guilty in federal court to charges arising from a wiretap investigation into drug trafficking in Pittsburgh’s West End neighborhood, United States Attorney Scott W. Brady announced today.
Jaamiyl Dean, 42, pleaded guilty to one count of conspiracy to possess firearms in furtherance of drug trafficking before Senior United States District Judge Reggie B. Walton. Tyree Davis, 35, pleaded guilty to one count of conspiracy to distribute a quantity of crack cocaine before Senior Untied States District Judge Arthur J. Schwab.
In connection with the guilty pleas, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. Jaamiyl Dean was intercepted over the wiretap discussing drug transactions. When agents executed a search warrant at Dean’s home and vehicle on June 20, 2018, they recovered, among other things, two firearms, several rounds of ammunition, drug packaging materials, and over $64,000 in cash. Dean has previously been convicted of a felony offense, and was prohibited from possessing the firearms. The wiretap investigation also revealed that from in and around November 2017 through in and around June 2018, Tyree Davis and his co-conspirators distributed crack cocaine in and around the area of the Greenway Projects.
Judge Walton scheduled sentencing for Jaamiyl Dean for Nov. 8, 2019, at 9 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Judge Schwab scheduled sentencing for Tyree Davis for Nov. 25, 2019 at 10:30 a.m. The law provides for a total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, both defendants will remain detained.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne Saadi are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to these prosecutions.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Two Men Sentenced to Lengthy Federal Prison Terms for Child Exploitation OffensesRead the Press Release
In unrelated cases, a federal judge in Midland sentenced Christopher David Mayhall, 42 of Dublin, TX, and James Vernon Foster, 57 of Abilene, TX, to 20 years and 15 years in federal prison, respectively, for child exploitation offenses, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
On July 18, 2019, U.S. District Judge David Counts sentenced Foster to 15 years in federal prison followed by ten years of supervised release. Judge Counts also ordered that Foster pay a $5,000 assessment under the Justice for Victims of Trafficking Act.
In February of 2019, an FBI agent acting in an undercover capacity began chatting online with Foster. The undercover agent indicated that he had access to two minor children, and Foster expressed a sexual interest in the children. Throughout the next few weeks, the conversations between the Agent and Foster became increasingly sexual in nature, and eventually a meet-up was scheduled. On March 21, 2019, Foster arrived in Midland for the purported meeting, expecting to have sexual relations with the children and was arrested by federal agents. Foster pleaded guilty to the charge of attempted enticement of a minor on May 14, 2019.
On July 11, 2019, Judge Counts sentenced Mayhall to 20 years in federal prison followed by ten years of supervised release.
In November of 2018, an FBI agent acting in the same undercover capacity began chatting online with Mayhall. Mayhall also expressed a sexual interest in the children. Throughout the next few weeks, the conversations between the agent and Mayhall became increasingly sexual in nature, and eventually Mayhall asked the agent to take nude photographs of the children and send them to him. Additionally, Mayhall sent the agent a video of a young child being sexually abused. In January 2019, Mayhall was charged with one count of attempted production of child pornography and one count of distribution of child pornography. He pleaded guilty to the attempted production charge on May 15, 2019.
FBI agents in Midland conducted this investigation. Assistant U.S. Attorney Shane A. Chriesman prosecuted these cases on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Twin Sisters Plead Guilty to Conspiracy to Commit Healthcare Fraud, Third Defendant Admits to Making False StatementsRead the Press Release
Abingdon, VIRGINIA – Two identical twin sisters, and one of their sons, pleaded guilty today in U.S. District Court in Abingdon to charges of conspiring to commit healthcare fraud and making a false statement in relation to the Social Security Act, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Michele Annette Honaker, 45, and Marilyn Yvette Blankenship, 45, both of Richlands, Va., pleaded guilty today to one count of conspiring to commit healthcare fraud. Chandler Dalton Blankenship, 26, of Atlanta, Ga., pleaded guilty today to one misdemeanor count of making a false statement in relation to the Social Security Act.
“Medicaid fraud, including billing for home healthcare services that were not actually provided, is a serious federal crime and one that can result in a prison sentence,” U.S. Attorney Cullen stated today. “We will continue to work closely with our partners at the Virginia Attorney General’s Office to investigate and prosecute individuals and organizations who illegally put profit over patient care and, in so doing, undermine these vital government programs.”
“Rooting out provider fraud helps keep the Medicaid program strong for those Virginians who truly need assistance,” said Attorney General Herring. “Our strong partnerships with state agencies, like the Virginia Department of Medical Assistance Services, and federal partners, like U.S. Attorney Cullen and his team, ensure that our Medicaid dollars are used effectively.”
According to court documents filed during today’s plea hearing, at various times between April 1, 2008 and September 28, 2018, Michele Honaker and Marilyn Blankenship worked as service facilitators under the Virginia Medicaid program. As part of their duties, services facilitators are responsible for conducting home visits and re-assessments, and providing training, for Medicaid recipients. During this same time period, Chandler Blankenship worked for Michele Honaker, his aunt, and Marilyn Blankenship, his mother, and later became a services facilitator himself.
On multiple occasions, Michele Honaker and Marilyn Blankenship billed Virginia Medicaid for routine visits and re-assessment visits on the same date of service for the same recipients, when only one or the other visit actually occurred. Honaker and Marilyn Blankenship also billed for recipient training that never occurred.
In addition, on multiple occasions, all three defendants billed for face-to-face home visits and/or reassessment visits with Medicaid recipients on or after the recipient had died. All three defendants billed for face-to-face home visits that never occurred because the recipients have been moved to a nursing home or were otherwise discharged from services.
The investigation of the case was conducted by Medicaid Fraud Control Unit of the Virginia Attorney General’s Office in conjunction with the Virginia Department of Medical Assistance Services. Special Assistant United States Attorney and Virginia Assistant Attorney General Janine M. Myatt and Assistant United States Attorney Lena Busscher are prosecuting the case for the United States.
Three Flint Men Charged in Conspiracy to Rob Sanilac County Marijuana Grow OperationRead the Press Release
An indictment was unsealed today charging three Flint men with conspiring to rob a Sanilac County marijuana grow operation, announced U.S. Attorney Matthew Schneider. Joining Schneider in the announcement was Federal Bureau of Investigation Special Agent in Charge Timothy R. Slater. Named in the federal indictment are:
PAUL M. DRINKWINE a.k.a. Pauli D,
JUSTIN D. COOPER, a.k.a. Just, and
JOHN C. WILLIAMS, a.k.a. Jizzle Will,
The indictment alleges that on November 19, 2017, the defendants and others travelled from Flint to a residence in Sanilac County in order steal marijuana and marijuana proceeds. The indictment also alleges that the men covered their faces, put on gloves, and brandished firearms as they approached the home. The men forcibly entered the home and shot the homeowner in the leg. The homeowner survived.
Another resident of the home shot and killed two of the intruders.
The indictment further alleges that the men conspired to distribute the marijuana after the robbery, and that they used their firearms during and in relation to the attempted robbery and conspiracy to distribute the marijuana.
“Drugs are a magnet for violence, and all too often that violence is perpetrated with a gun. Our office will continue to work with our federal, state, and local law enforcement partners to target violent criminals who use guns to achieve their selfish ends,” said Schneider.
“This robbery created an extraordinarily dangerous situation, putting the lives of the residents and the lives of the robbers at risk,” said SAC Slater. “Because of the hard work of the FBI and its law enforcement partners, these men will face the consequences of their reckless actions.”
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This investigation was conducted by the FBI’s Genesee County Safe Streets Task Force along with the Michigan State Police Crime Laboratory and Sanilac County Sheriff’s Department. The case is being prosecuted by the Flint Branch of the United States Attorney’s Office.
Anyone with information regarding others involved in this incident may contact the FBI Flint Field Office at 810-239-5775.
Stratford Woman Pleads Guilty to Distribution of SuboxoneRead the Press Release
CONCORD - Roxanne Adjutant, 49, of Stratford, pleaded guilty in federal court to distribution of Suboxone, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 19, 2018, Adjutant sold Suboxone to an individual who was cooperating with law enforcement officers. The sale occurred within 1,000 feet of an elementary school.
Suboxone, a form of the drug buprenorphine, is an opioid and a Schedule III controlled substance. It is frequently prescribed in the treatment of substance use disorders.
Adjutant is scheduled to be sentenced on November 12, 2019.
“Drug trafficking endangers the health and safety of our communities,” said U.S. Attorney Murray. “In order to deter this hazardous activity, we will continue to work with our law enforcement partners to identify and prosecute those who engage in illegal drug sales.”
This matter was investigated by the DEA, with assistance from the Colebrook Police Department, the New Hampshire State Police, U.S. Customs and Border Protection, the Office of Inspector General of the U.S. Department of Health and Human Services, the Coos County Sheriff’s Office, the New Hampshire Liquor Commission’s Division of Enforcement & Licensing, and the New Hampshire Attorney General’s Office. The case is being prosecuted by Assistant United States Attorneys Charles Rombeau and John S. Davis.
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Stoneham Man Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Stoneham man was charged in federal court in Boston today in connection with drug trafficking activities involving fentanyl.
Alexis Baez, 52, was charged in an Information with three counts of distribution of, and possession with intent to distribute, fentanyl; two counts of distribution of, and possession with intent to distribute, more than 40 grams of fentanyl; and one count of possession with intent to distribute more than 400 grams of fentanyl. Baez was previously charged by criminal complaint and arrested on April 26, 2019. He has been in custody since his arrest.
According to court records, between February and April 2019, Baez engaged in six separate drug sales of fentanyl powder to an undercover law enforcement agent.
The charge of possession with intent to distribute over 400 grams of fentanyl carries a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release, and a fine of up to $10 million. The charges of possession with intent to distribute over 40 grams of fentanyl carry a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Woburn, Stoneham, Milton, and Boston Police Departments. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Statement of U.S. Attorney Geoffrey S. Berman on the Death of Robert MorgenthauRead the Press Release
U.S. Attorney Geoffrey S. Berman said: “Robert Morgenthau, the legendary U.S. Attorney and Manhattan District Attorney, passed away yesterday just 10 days shy of his 100th birthday. Mr. Morgenthau’s contributions to law enforcement and to the Southern District of New York were extraordinary. Among his many achievements during his tenure as U.S Attorney, Mr. Morgenthau created the Securities Fraud Unit and helped establish the framework for sophisticated, international investigations that still guides our career prosecutors. Whether he was charging landmark public corruption or organized crime cases, Mr. Morgenthau worked tirelessly to instill public confidence in the integrity of the Office.
Mr. Morgenthau remained active and engaged until he passed. Indeed, less than a year ago he was kind enough to join the Office in the repatriation of a Renoir painting stolen by the Nazis during WWII. At that ceremony, which took place at the Robert Morgenthau wing of the Museum of Jewish Heritage, Mr. Morgenthau spoke movingly about the importance of bringing some measure of justice, even a half century later, to the victims of the Holocaust and their heirs.
Every day as I enter my office I pass a portrait of Mr. Morgenthau and I am inspired by his lifelong dedication to public service and the law.”
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St. Louis City Man Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
St. Louis MO --- Aaron Mitchell, 30, of St. Louis City, pled guilty today to one count of preparing false tax returns and one count of filing false claims for tax refunds. Mitchell appeared before United States District Judge Audrey F. Fleissig. Sentencing is scheduled for October 29, 2019.
According to court documents, Mitchell admitted that from 2013 through 2015, he prepared approximately 160 federal income tax returns for individuals and electronically filed the returns. He was not registered with the Internal Revenue Service (IRS) as a return preparer and submitted the returns only in the names of the individuals. Most of the tax returns prepared and filed by Mitchell were false and constituted fraudulent claims for refund.
Mitchell submitted false W-2 information which reflected false employer names as well as false wage and income tax withholding amounts. He often added in bogus claims for education credits---so-called American Opportunity Credits--- by falsely claiming that individuals had upwards of $4,000.00 in expenses attending Forest Park Community College or Meramec Community College. The false tax returns prepared and filed by the Mitchell for the years 2012, 2013 and 2015 caused a tax loss of $99,576.00, which was the amount of refunds paid out by the IRS.
“An integral part of the IRS’s mission involves detecting and catching fraudulent tax refund claims,” said Karl Stiften, Special Agent in Charge. “IRS Criminal Investigation special agents will continue to be on the front lines to fight tax fraud.”
Mitchell faces up to three years’ imprisonment and a fine of $250,000 for preparation of false tax returns and up to five years’ imprisonment and a fine of $250,000 for filing false claims for tax refunds. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
The case was investigated by the IRS Criminal Investigation office in St. Louis. Criminal Chief James Crowe, Jr. is handling the case for the U.S. Attorney’s Office.
Scranton Man Charged with Making False Statements in On-Going Public Corruption InvestigationRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Edward Weidow, Sr., age 65, of Scranton, Pennsylvania, was charged today in a criminal information with making false statements to federal investigators in a public corruption investigation involving former Mayor of Scranton, William Courtright. Weidow is scheduled to appear in federal court in Scranton on July 23, 2019, at 2:30 p.m., before United States District Court Judge Malachy E. Mannion for his arraignment.
According to United States Attorney David J. Freed, the criminal information alleges that Weidow took cash from vendors and then transferred the cash to former Mayor of Scranton William Courtright. The information further alleges that on January 9, 2019, Weidow was interviewed by the FBI and denied giving cash to Courtright, when in fact on numerous occasions, he had done so.
On July 2, 2019, Courtright entered a guilty plea to an information charging him with various public corruption offenses. The day before the guilty plea, Courtright resigned as Mayor of the City of Scranton.
Courtright’s corrupt activities came to light during a multi-year undercover investigation headed by the FBI. The undercover investigation revealed that the former mayor accepted cash payments from vendors doing business with the city in a pay-to-play scheme.
The case was investigated by the FBI and was assisted by the Pennsylvania State Police and the Internal Revenue Service Criminal Investigations. Assistant United States Attorneys Michael Consiglio, Michelle Olshefski and William Houser are prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Rochester Man Who Took 14 Year Old to New York City Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert Gonzalez, 42, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to production of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of 30 years.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that on December 3, 2018, the Rochester Police Department received a 911 call from a mother regarding her missing daughter, a 14-year-old victim, who had not been seen since December 1, 2018. The mother, who attempted to call the victim’s cell phone several times without success, told police that the victim left the house that day around 1:00 p.m. without her permission. The mother also told officers that she recently discovered that the victim was in an inappropriate sexual relationship with defendant. The mother stated that she caught the defendant kissing the victim in front of her house, and that the victim confessed to the mother that she had been dating Gonzalez and that they had sex numerous times. In addition to further confirming the sexual nature of their relationship, a review of the victim’s social media indicated that she may have travelled to New York City. The defendant’s friend further advised officers that the defendant told him that he took the victim to New York City but would not state exactly where in New York City.
An emergency trace was put on the defendant's cell phone which showed that he was in fact in New York City. An Amber Alert was issued and the FBI and NYPD assisted with the investigation and ultimately apprehended Robert Gonzalez. The defendant was apprehended on December 6, 2018, at the Red Carpet Inn in Brooklyn, NY.
At the time of his arrest, officers seized Gonzalez’s cell phone. A search of the recovered numerous videos, taken between November 12, 2018, and November 19, 2018, of the defendant engaging in sexual activity with the victim.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, the Federal Bureau of Investigation, under the direction Special Agent-in-Charge Gary Loeffert, and the New York Police Department, under the direction of Chief Terence Monahan.
Sentencing is scheduled for October 3, 2019, at 2:00 p.m. before Judge Wolford.
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Rochester Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Vandegrift, of Rochester, NY, pleaded guilty before U.S. District Elizabeth A. Wolford to attempted receipt of child pornography. The charge carries a minimum penalty of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that the defendant was arrested by the Oswego County Sheriff’s Office after engaging a minor in sexually explicit conversations via Facebook. Following an extensive investigation, Sheriff’s Office investigators discovered three additional minor victims of Vandegrift. The victims were located and identified by members of the FBI, Corning Office. The victims included a 12 year old female, two 13 year old females, and a 17 year old female. In each of the conversations, the defendant sent the victims sexually explicit images and videos of himself, and attempted to induce the victims to send him nude photographs in return.
The plea is the result of an investigation by the Oswego County Sheriff’s Office, under the direction of Sheriff Don Hilton; the Chemung County Sheriff’s Office, under the direction of Acting Sheriff William A. Schrom; and the Federal Bureau of Investigation, Corning Office, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for October 28, 2019, before Judge Wolford.
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Rochester Felon Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Tyrone Jiggetts, 47, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie M. Kocher, who is handling the case, stated that on May 6, 2019, the defendant possessed a 12 gauge double-barrel shotgun at a gas station at 799 West Main Street in Rochester. In 1991, Jiggetts was convicted of Robbery in the Third Degree, and in 2004, he was convicted of Attempted Grand Larceny in the Third Degree. As a result, the defendant is legally prohibited from possessing a firearm.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
Sentencing is scheduled for September 13, 2019, at 2:00 p.m. before Judge Geraci.
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Rigby Woman Sentenced to 15 Years in Prison for Possessing Sexually Explicit Images of MinorsRead the Press Release
POCATELLO – Elizabeth Dawn Evans, 28, of Rigby, Idaho, was sentenced last Friday in U.S. District Court to 15 years in prison for possessing sexually explicit images of minors, U.S. Attorney Bart M. Davis announced. U.S. District Judge B. Lynn Winmill ordered that Evans be placed on supervised release for ten years following her prison sentence. Evans pleaded guilty on March 6, 2019.
According to court records, on February 26, 2018, state investigators responded to allegations of child abuse at a residence in Jefferson County, Idaho, where Evans resided. A subsequent investigation discovered that Evans’ boyfriend had produced child pornography using a minor child. Investigators obtained a search warrant for Evans’ electronic devices and discovered images of the sexual abuse taken on her phone. In court, Evans admitted that she took and possessed the images.
At sentencing, Judge Winmill also ordered Evans to forfeit the cell phone used in the commission of the offense. As a result of her conviction, Evans will be required to register as a sex offender.
The case was investigated by Homeland Security Investigations in Idaho Falls and the Jefferson County Sherriff’s Office.
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 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.”
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Providence Man Admits to Trafficking Fentanyl and Heroin, Being a Felon in Possession of a FirearmRead the Press Release
PROVIDENCE - A Providence man detained in federal custody since his arrest in December 2018 on drug and firearm charges pleaded guilty in U.S. District Court today to trafficking heroin and fentanyl, and to being a felon in possession of a firearm.
Antonio Rivera, 26, pleaded guilty to distribution of heroin, distribution of fentanyl, and felon in possession of a firearm, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady, and Providence Police Chief Colonel Hugh T. Clements, Jr.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Rivera admitted that on April 27, 2018, he sold an individual nearly 60 grams of heroin for $2,500, and on October 23, 2018, he sold an ATF undercover agent nearly 8.5 grams of fentanyl and a semi-automatic rifle with a high capacity magazine for $1,330.
Rivera is scheduled to be sentenced on October 15, 2019.
Distribution of fentanyl and distribution of heroin are punishable by statutory penalties of up to 20 years imprisonment followed by up to lifetime supervised release. Felon in possession of a firearm is punishable by up to 10 years imprisonment followed by 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF, the ATF Task Force, and the Providence Police
Department, with the assistance of the Pawtucket Police Department and the Rhode Island State Police High Intensity Drug Trafficking Area Task Force.
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Previously Convicted Sex Offender Facing Federal Indictment for Sexual Exploitation and Enticement of a MinorRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Jeffrey R. Cummings, Jr., a/k/a Olivia Harris, age 34, of Baltimore, Maryland, for federal charges related to the alleged sexual exploitation and enticement of a minor during a period of time when Cummings was required to register as a sex offender. The indictment was returned on July 18, 2019, and unsealed at Cummings’ initial appearance in U.S. District Court on July 19, 2019. At that hearing, U.S. Magistrate Judge A. David Copperthite ordered that Cummings be detained pending a detention hearing on July 23, 2019, at 2:00 p.m.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the seven-count indictment, Cummings was convicted of a sex offense in Anne Arundel County, Maryland in 2008, and was required to register as a sex offender in Maryland. The indictment alleges that beginning on May 13, 2017, Cummings operated multiple social media accounts using a variety of aliases, including Olivia Harris, to communicate with minor boys, many of whom lived in the Spokane, Washington area. During his communications with the minor boys, Cummings allegedly falsely represented that Olivia Harris was a teenage girl. Using his accounts, the indictment alleges that Cummings coerced and enticed minor boys to send Cummings pictures and videos of themselves engaged in sexually explicit conduct. According to the indictment, Cummings also sent the boys money and gifts in exchange for them sending him their previously worn socks by mail.
Further, the indictment alleges that on December 16 and 29, 2018, as well as January 20, 2019, Cummings, posing as Olivia Harris, communicated with Boy 1, who was approximately 15 years old and resided in Stevens County, Washington. During each of those conversations Cummings, posing as Olivia Harris, allegedly requested Boy 1 to send “her” a sexually explicit photograph or video, which Boy 1 provided. On December 16, 2018, Olivia Harris also sent Boy 1 a picture of a teenage girl purported to be a picture of “herself,” as well as nude images of a pubescent female’s genital area, claiming to be pictures of herself.
If convicted, Cummings faces a mandatory minimum of 25 years in prison and a maximum of 50 years in prison for each of three counts of sexual exploitation of a minor to produce child pornography; a mandatory minimum of 10 years and up to life in prison for each of three counts of enticement of a minor to engage in unlawful sexual activity; and a mandatory minimum of 10 years in prison, consecutive to any other sentence imposed, for committing these crimes while being required to register as a sex offender.
Anyone who may have information about possible victims or details related to the investigation of Jeffrey R. Cummings, Jr is asked to contact the U.S. Postal Inspection Service at 202-636-2220.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the U.S. Postal Inspection Service and FBI for their work in the investigation, and thanked the Baltimore Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the federal case.
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Pensacola Executive Indicted for Conspiring with Foreign Nationals to Ship Technology to IranRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, announced today that a federal grand jury has indicted a Pensacola business owner for conspiring to sell and export power generating equipment to a recipient in Iran, and concealing the scheme, as well as having payments routed to him via another foreign country. The five- count indictment alleges that Pensacola resident James P. Meharg, 59, CEO and president of Turbine Resources International, LLC, conspired with citizens of the United Kingdom and Iran to export a large turbine and parts from the United States to an Iranian recipient, in violation of the Iranian Transactions and Sanctions Regulations as well as federal criminal law.
According to the indictment, Meharg, a citizen of the United States, conspired from October 1, 2017, to June 12, 2019, to violate the embargo by attempting to export a Solar Mars 90 S turbine core engine and parts from the United States, for delivery to an end user in Iran. On April 25, 2018, the indictment alleges, Meharg sent an invoice for $500,000 to a conspirator in the United Kingdom and received two partial payments of $124,950 each, on May 7 and May 24, 2018, at least one of which was routed through a company in Dubai.
“The security of the United States depends on protecting our nation from threats, whether those threats originate with foreign nationals or with American citizens who put their own profits ahead of the national interest,” U.S. Attorney Keefe said. “For decades, American presidents have declared the government of Iran to be a threat to our national security and thereby imposed sanctions, and this office is deeply committed to protecting the integrity of the United States in all ways.”
Assistant United States Attorney David L. Goldberg, who is a National Security Cyber Specialist, is prosecuting the case following a joint investigation by the United States Department of Commerce’s Bureau of Industry and Security along with the Federal Bureau of Investigation.
Meharg is charged with conspiring to export the turbine and its parts to Iran, submitting false and misleading export information, and defrauding the federal government by deceitfully obstructing the enforcement of laws against the export of goods to Iran. He is also charged with substantive offenses involving exporting items to Iran, filing false Electronic Export Information paperwork, and transporting funds from the United Arab Emirates with the intent to conduct the illegal activity. The defendant faces up to 20 years’ imprisonment each for the charges related to violating the International Emergency Economic Powers Act and money laundering, and he faces up to 5 years’ imprisonment each for the conspiracy and filing false paperwork charges. A trial date has been set for September 3, 2019, at 9:00 a.m. at the United States Courthouse in Pensacola.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Paulding County man indicted for producing child pornographyRead the Press Release
ATLANTA, Ga. – Thomas Cwik has been arraigned on federal charges of producing, distributing, receiving, and possessing child pornography.
“Cwik allegedly produced, distributed, and collected images portraying the sexual exploitation and abuse of young children,” said U.S. Attorney Byung J. “BJay” Pak. “It is imperative that we continue target and prosecute sexual predators who victimize children.”
“Child pornography production is, plainly speaking, the filming of child rape. In this case Mr. Cwik allegedly victimized numerous children,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “I want to commend our law enforcement partners, including the Paulding County Sheriff’s Office for a quick multi-agency effort which resulted in Cwik’s arrest. Homeland Security Investigations is committed to investigating and seeking prosecution of these cases as one the agency’s highest priorities.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Federal agents determined that Thomas Cwik allegedly traded child pornography online with another individual in January 2019. Agents executed a search warrant at Cwik’s home in April 2019 and found multiple digital devices containing hundreds of images and videos of child pornography. They also discovered that Cwik allegedly engaged in sex acts with a minor child in Cobb County, Georgia and captured his sexual abuse of that child on two videos taken on each instance of abuse.
Thomas Cwik, 31, of Powder Springs, Georgia, was arraigned before U.S. Magistrate Judge Linda T. Walker. Cwik was indicted by a federal grand jury on July 9, 2019. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
Anyone with information, or who may have been a victim in this case, please contact the Paulding Sheriff’s Juvenile Investigations Division at 770-445-6105 or U.S. Immigration and Customs Enforcement’s Homeland Security Investigations at 404-346-2831.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Jill E. Steinberg, Deputy Chief of the Criminal Division, is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Paris Man Pleads Guilty to Conspiring to Commit Crop Insurance FraudRead the Press Release
LEXINGTON, Ky. - A Paris, Kentucky man admitted in federal court today that he conspired to commit crop insurance fraud.
Keith A. Foley, 49, pleaded guilty today to conspiring to violate the laws of the United States before U.S. District Court Senior Judge Joseph M. Hood.
Foley, an agricultural producer of tobacco in Bourbon and Jessamine Counties, admitted that from approximately 2011 through 2016, he agreed with others to commit crop insurance fraud. In these years, Foley took out Multi-Peril Crop Insurance to cover his tobacco crops, an insurance program funded by the federal government through the Federal Crop Insurance Corporation but administered through private insurance providers. Foley admitted that he hid his crop production from the insurance companies, in order to claim that his crop suffered enough damage to trigger federal crop insurance indemnity payments.
Foley also had private insurance policies (called crop-hail policies) covering his tobacco crop. In crop years 2012, 2014, and 2015, Foley admitted to entering into an agreement with his crop adjusters and insurance agent at the time, in order to defraud his insurance companies. To accomplish this, Foley’s coconspirators submitted fabricated documents, to support tobacco crop damage, to Foley’s insurance companies. In exchange, Foley paid his coconspirators a portion of the resulting indemnity payout.
According to the plea agreement, Foley’s conduct caused a loss of approximately $480,000 to the federal government and private insurance companies.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Bethanne M. Dinkins, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; James Robert Brown, Jr, Special Agent in Charge, Federal Bureau of Investigation; Christopher Altemus, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Willie Skeens, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the guilty plea.
The investigation was conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The United States was represented by Assistant U.S. Attorneys Erin M. Roth and Kathryn A. Anderson.
Foley is scheduled to be sentenced on October 21, 2019. He faces up to 5 years in prison and a maximum fine of $250,000 or twice the amount of loss. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
North Carolina Tax Return Preparer Pleads Guilty to Conspiracy to Defraud the IRSRead the Press Release
A Raleigh, North Carolina, resident pleaded guilty today to conspiracy to defraud the United States announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina.
According to court documents and statements made in court, Garvey Imhotep conspired with others to file false tax returns for the tax years 2011 through 2014 for clients of Tax Kings, Two Brothers Tax Service, and Taxes Done Right. Imhotep and his co-conspirators filed returns claiming false education expenses and other fraudulent items in order to increase clients’ tax refunds. Imhotep used tax preparer identification numbers, associated with other individuals, in order to conceal his involvement and avoid detection by the Internal Revenue Service (IRS).
Sentencing is scheduled for October 2019. Imhotep faces a statutory maximum sentence of five years in prison. He also faces substantial monetary penalties, supervised release and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant United States Attorney Ethan Ontjes and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Niagara Falls Man Pleads Guilty to Drug Charge After Officers Find 5 Kilograms of Cocaine in His CarRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Jose Garcia-Santiago, 61, of Niagara Falls, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Michael Adler, who is handling the case, stated that in September 2017, the U.S. Postal Service intercepted packages arriving from Puerto Rico and addressed to various residences in Niagara Falls, NY. Postal inspectors seized approximately five kilograms of cocaine that were intended for Santiago and his co-conspirators. One of the packages was addressed directly to the defendant’s home address. Another was addressed to the home of Katherine Dejesus-Gonzalez.
Thereafter, beginning on May 8, 2018, investigators intercepted numerous conversations involving the defendant discussing cocaine trafficking and the associated proceeds. Many of those conversations were with co-conspirator Edgar Joel Jimenez-Rodriguez.
On May 26, 2018, the New York State Police stopped the vehicle the defendant was driving. Co-conspirator Katherine Dejesus-Gonzalez was a passenger. Troopers seized five kilograms of cocaine from the vehicle.
Edgar Joel Jimenez-Rodriguez has been convicted and is awaiting sentencing. Charges remain pending against Katherine Dejesus-Gonzalez. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark.
Sentencing is scheduled for October 17, 2019, at 2:00 p.m. before Judge Geraci.
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New Jersey Man Imprisoned for Trafficking in Canadian MarijuanaRead the Press Release
The United States Attorney for the District of Vermont announced that Jesus Escobar, 34, of Hawthorne, NJ, was sentenced today in United States District Court in Burlington to ten months of imprisonment following his guilty plea that he conspired to distribute marijuana. U.S. District Judge Christina Reiss also ordered that he serve a two-year term of supervised release following completion of his prison term. The court directed Escobar to surrender to the Bureau of Prisons on September 3 to begin serving his sentence.
On April 5, Escobar pled guilty to an information charging that beginning in no later than 2016 and continuing through June 2017, Escobar conspired with others to distribute marijuana that had been smuggled into the United States from Canada. Escobar communicated with his Canadian suppliers using encrypted Blackberry devices. Members of the organization smuggled the marijuana into Vermont on foot. Runners then picked up the drugs and distributed them to customers of the conspiracy, including Escobar. Other customers were in Vermont, Massachusetts, New York and New Jersey. In March 2017, an individual who was cooperating with the DEA Task Force participated in a controlled delivery to Escobar in New Jersey. During this exchange, Escobar received a replacement Blackberry from his Canadian suppliers and in exchange Escobar gave the cooperating individual more than $59,000 in cash to pay for previously-delivered marijuana. In his plea agreement, Escobar admitted that he distributed between 20 and 40 kilograms of marijuana.
Escobar is represented by Frank Twarog. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Nashua Man Pleads Guilty to Possession of a Stolen FirearmRead the Press Release
CONCORD, - Illya Scott, 30, of Nashua, pleaded guilty in federal court to possession of a stolen firearm, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 6, 2018, Scott was arrested in Nashua, New Hampshire. During a search incident to arrest, Nashua police officers found a Berretta, BU PICO, .380 handgun tucked into the defendant's waistband. Scott admitted to stealing the firearm.
Scott is scheduled to be sentenced on November 5, 2019.
“In order to maintain public safety, it is essential to keep guns out of the hands of criminals,” said U.S. Attorney Murray. “We will continue to work with our law enforcement partners to identify and prosecute those who commit gun-related crimes.”
This matter was investigated by the Nashua Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Anna Z. Krasinski.
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Myrtle Beach Drug Boss Sentenced to over 9 Years in Federal Prison on Oxycodone Conspiracy ChargeRead the Press Release
Florence, South Carolina --- United States Attorney Sherri A. Lydon announced today that Leroy Anthony Griffin, 31, of Myrtle Beach, was sentenced to over 9 years in federal prison after pleading guilty to conspiracy to possess with intent to distribute and distribute oxycodone.
Evidence presented to the court showed that this case involved a drug trafficking organization (DTO) in which Griffin, and others at his direction or on his behalf, presented counterfeit and forged prescriptions for oxycodone tablets to various pharmacies in South Carolina and elsewhere. During the investigation, the Drug Enforcement Administration (DEA) and South Carolina Department of Health and Environmental Control (DHEC) seized multiple counterfeit and forged oxycodone prescriptions which were linked to the DTO. DEA and DHEC also interviewed numerous persons who were involved in the DTO and who identified Griffin as the boss, man in charge, and source of supply for oxycodone, at whose direction they filled counterfeit and forged oxycodone prescriptions.
On January 31, 2018, agents and officers executed a federal search warrant at a house in Conway. During execution of the search warrant, agents and officers found Griffin in the house hiding in a closet under a pile of clothes. Agents and officers seized from the house two laptops as well as multiple cell phones containing text messages related to drug distribution, pictures of counterfeit prescriptions, and incoming calls from various pharmacies. Agents linked the phone numbers of the phones seized to phone numbers printed on the counterfeit prescriptions.
United States District Judge Donald C. Coggins, Jr., of Spartanburg, sentenced Griffin to 110 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
“Drug trafficking organizations like the one run by Leroy Griffin are flooding our streets with highly addictive prescription opioids like oxycodone,” said U.S. Attorney Lydon. “Dismantling these criminal enterprises and prosecuting those who operate them are critical steps toward loosening the grip of the opioid epidemic on our communities. We are grateful to DEA, DHEC, SLED, and the Fifteenth Circuit Drug Enforcement Unit for their continued efforts to stop the unlawful diversion and distribution of legitimate prescription drugs.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “The amount of prison time Mr. Griffin received correctly reflects his leadership role as the source of supply for dangerous opioid prescriptions like oxycodone. This sentencing removes yet another dangerous criminal from our streets and sends a clear message to others who may choose to indulge in drug trafficking. DEA, its law enforcement partners and the United States Attorney’s Office will relentlessly pursue and ultimately prosecute criminals like Mr. Griffin.”
The case was investigated by the DEA Tactical Diversion Squad and DHEC, assisted by the South Carolina Law Enforcement Division (SLED) and the Fifteenth Circuit Drug Enforcement Unit.
Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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