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22 July 2019
Mt. Pleasant Doctor Found Guilty in Federal Court of Opioid Trafficking After Columbia Pharmacy VisitRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Dr. Ronald A. Hargrave, age 60, of Mt. Pleasant, has been convicted of Illegal Distribution of Controlled Substances after a four-day jury trial in federal court in Charleston. Senior United States District Judge Margaret B. Seymour of Charleston presided over the trial and will sentence Hargrave at a later date.
Evidence presented at trial established that Hargrave accompanied a female patient to the Walgreen’s pharmacy on Devine Street in Columbia around 11:30 pm on Saturday, May 2, 2015, to fill a prescription for Xanax. Xanax is a controlled substance. The pharmacist on duty, noticing that the prescription, patient, doctor, and doctor’s office were all out-of-town, questioned the validity of the prescription. Additionally, the pharmacist testified the female patient and Hargrave acted overly familiar, and that she had never seen a doctor join a patient in her pharmacy to present a prescription. She refused to fill it and called SC DHEC the next day to report the activity.
In April 2017, Drug Enforcement Administration (DEA) Investigator Adam Roberson connected the 2015 events to another suspicious after-hours incident involving Hargrave and a female patient. On March 7, 2017, Hargrave had met a different female at the medical clinic in Moncks Corner where he worked. That night, Hargrave had sex with the female at the clinic; in exchange, she received $300 cash and a promise to receive four prescriptions for controlled substances, including Xanax and Oxycodone. Three days later, on March 10, the female presented herself as a patient at the clinic, and Hargrave issued her the painkillers. He was fired within hours.
The seven counts presented by the Government related to these two relationships as well as two other individuals with whom Hargrave established non-medical reasons for writing opioid prescriptions.
“We trust our doctors to first do no harm,” said U.S. Attorney Lydon. “In recent years, Charleston County has distributed a higher concentration of opioid pain pills than any other county in the nation, and in 2017, the county had more opioid overdose deaths than any other county in the state. As Dr. Hargrave’s guilty verdict shows, the U.S. Attorney’s Office will vigorously prosecute medical providers who ignore the law—and their ethical obligations—by illegally distributing the deadly drugs fueling this epidemic.”
The maximum penalty Hargrave faces for the Illegal Distribution of Controlled Substances is twenty years in federal prison and/or a fine of $1,000,000.
The case was investigated by Investigator Adam Roberson of the United States Drug Enforcement Administration. Assistant United States Attorneys Winston D. Holliday, Jr. and Matthew Austin prosecuted the case.
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Moreno Valley Man Who Led Crew that Robbed at Least 15 AutoZone Stores Pleads Guilty to Federal Conspiracy, Firearms ChargesRead the Press Release
RIVERSIDE, California – A Moreno Valley man pleaded guilty today to federal criminal charges for leading a crew that committed at least 15 armed robberies of AutoZone stores in the Inland Empire, making off with a total of more than $11,000 in cash.
Daeon Raishawn Cox, 21, pleaded guilty to one count of conspiracy to interfere with commerce by robbery, and one count of brandishing a firearm in furtherance of a crime of violence. United States District Judge Jesus G. Bernal has scheduled an October 7 sentencing hearing, where Cox, who remains in federal custody, will face a statutory maximum sentence of 27 years and a mandatory minimum of seven years in federal prison.
Cox admitted in his plea agreement that from September 5, 2018 until December 13, 2018, he and his co-conspirators robbed AutoZone stores at gunpoint. On December 5, 2018, Cox robbed an AutoZone store in Redlands hours after his co-conspirator scouted the store and looked for the location of its money safe, according to court documents.
Later that same day, the same co-conspirator dropped off Cox, who was armed with an AR-style assault rifle, at the AutoZone store in Redlands, the plea agreement states. Once inside the store and while the co-conspirator waited outside as the getaway driver, Cox pointed the rifle at the AutoZone employees and forced one of them to give him approximately $1,500 belonging to the store, the plea agreement states.
One of Cox’s co-defendants, Dashon Raymond White, 25, pleaded guilty on July 1 to conspiracy to one count of interfere with commerce by robbery and one count of brandishing a firearm in furtherance of a crime of violence. White faces a statutory maximum sentence of 27 years in federal prison at his September 23 sentencing hearing.
Cox, White and co-defendant Jada Shardae Allen, 19, were caught after an attempted robbery by Cox and White at an AutoZone on December 12, 2018 was interrupted by Fontana police, who had been conducting surveillance at an AutoZone store in that city, according to an affidavit filed with a criminal complaint in the case. The suspects led police on a high-speed freeway chase that ended when they crashed and tried to run away. All three suspects were eventually apprehended by officers.
Allen’s trial in this matter is scheduled for October 8.
This case was investigated by the Federal Bureau of Investigation, the Fontana Police Department, the San Bernardino County Sheriff’s Department, the Riverside Police Department, the Hemet Police Department, the Redlands Police Department, the Moreno Valley Police Department, the Riverside County District Attorney’s Office and the San Bernardino County District Attorney’s Office.
This case is being prosecuted by Assistant United States Attorney Jerry C. Yang of the Riverside Branch Office.
Michigan Defendant Pleads Guilty to Conspiracy to Steal from an Organization Receiving Federal FundsRead the Press Release
A Palm Beach County, Florida, resident pleaded guilty today in Flint, Michigan, to conspiring to steal from an organization receiving federal funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. In May 2018, John Capella also pleaded guilty to conspiring to impede the lawful functions of the Internal Revenue Service (IRS) in connection with this scheme.
According to court documents, from August 2012 through May 2018, John Capella and his co-defendants, using the company Blue Horseshoe Consulting Inc. (Blue Horseshoe), obtained police reports, stolen from the Detroit Police Department, which contained automobile crash victim information. Capella and his co-conspirators used the stolen information to solicit automobile accident victims for medical and chiropractic services. Capella and his co-conspirators also underreported to the IRS gross receipts they received from Blue Horseshoe operations and the total wages Blue Horseshoe paid to its employees.
United States District Court Judge Matthew F. Leitman scheduled sentencing for Capella for Jan. 15, 2020. Capella faces a maximum sentence of five years in prison and a $250,000 fine for each of the two conspiracy counts. Capella also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Memphis Man Sentenced to 20 Years in Federal Prison for Multiple Business RobberiesRead the Press Release
Memphis, TN – A local man was sentenced to 2o years in federal prison for Hobbs Act robberies and brandishing a firearm during and in relation to a crime of violence. U.S. Attorney D. Michael Dunavant announced the sentence today.
On November 15, 2018, a federal grand jury returned a ten-count indictment against Brandon Albonetti, 24, for the robberies and attempted robberies of five CVS stores and one Burger King during the summer of 2018.
According to information presented in court, the robberies occurred in Memphis, between June 21, 2018 and August 14, 2018. In several of these robberies, Albonetti entered the respective stores armed with a pistol, taking cash and other items from the registers and safes. In two robberies, Albonetti displayed a knife as he demanded cash. The defendant robbed the CVS located at 786 North Germantown Parkway twice and the CVS at 5055 Stage Road three times during this time period.
On August 14, 2018, Memphis Police officers quickly responded and apprehended Albonetti as he tried to flee the scene of the CVS on Stage Road, which he had just robbed. The defendant used his vehicle to strike two patrol cars as authorities positioned their vehicles to keep the suspect from escaping.
U.S. Attorney D. Michael Dunavant said: "Business owners have a fundamental right to be safe from armed robbers who terrorize our communities with their lawlessness. The senselessness of gun violence has a long-lasting effect on victims of armed robbery, and we are pleased to achieve justice for the victims in this case. This sentence sends a clear message that there will always be a reckoning, a real and significant consequence, for the commission of violent crimes."
On July 22, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Albonetti to 240 months in federal prison followed by 3 years supervised release. The defendant previously pled guilty on February 15, 2019.
The FBI Safe Streets Task Force; Memphis Police Department and the Shelby County District Attorney General’s Office investigated this case.
This case was prosecuted by the Western Division of the U.S. Attorney’s Office on behalf of the government.
Member of Violent “Trained to Go” Gang Sentenced to 30 Years in Federal Prison for Federal Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Timothy Floyd, a/k/a Tim Rod, age 28, of Baltimore, to 30 years in federal prison, followed by five years of supervised release, for conspiring to participate in a drug distribution conspiracy and a violent racketeering enterprise known as Trained To Go (TTG). The racketeering conspiracy included eight murders, as well as drug trafficking and witness intimidation. Floyd and his co-defendants were also convicted of a drug distribution conspiracy involving heroin, marijuana, and cocaine. The sentence was imposed on July 19, 2018.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Timothy Floyd will now spend 30 years in federal prison for the violence and misery he and his fellow gang members brought to West Baltimore, in the form of murders, shootings, armed robbery, witness intimidation, and drug dealing. Anyone who participates in the criminal enterprise can be held accountable for all crimes committed by fellow gang members,” said U.S. Attorney Robert K. Hur. “Hopefully criminals who are not deterred from terrorizing our neighborhoods by the threat of prison can be deterred by the reality of years spent in a federal prison far from home—where there is no parole. Ever.”
According to the evidence presented at their 24-day trial, Floyd and his co-defendants are all members of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. Floyd served as one of TTG’s primary distributors of heroin and marijuana, routinely selling “packs” of heroin and gram quantities of marijuana from multiple locations in Sandtown. Typically, a “pack” contained between 25 and 50 gel capsules of heroin. In addition, the evidence proved that between May 20, 2010 and January 9, 2017, Floyd, his co-defendants, and other members of TTG committed acts of violence, including murders, shootings, armed robbery, and witness intimidation. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
The leader of the gang, Montana Barronette, a/k/a Tana, and Tanner, age 23, and his brother, Terrell Sivells, a/k/a Rell, age 27, both of Baltimore, were each sentenced to life in prison on February 15 and April 26, 2019, respectively. Co-defendants Brandon Wilson, a/k/a Ali, age 24, and Taurus Tillman, a/k/a Tash, age 30, both of Baltimore, were each sentenced to 25 years in prison on March 1 and May 21, 2019, respectively. Two other co-defendants, John Harrison, a/k/a Binkie, age 28, and Linton Broughton, a/k/a Marty, age 25, both from Baltimore, were sentenced to life in prison and to 30 years in prison, respectively, on March 15, 2019. Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison.
Dennis Pulley, a/k/a Denmo, age 31, of Baltimore, is the final defendant convicted at the trial who is awaiting sentencing. He faces a maximum sentence of life in prison on the racketeering and drug conspiracies.
Another defendant, Roger Taylor, a/k/a Milk, age 28, of Baltimore, a fugitive since July 2017, was arrested on June 30, 2019, and is now awaiting trial. 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.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano, Daniel C. Gardner, and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Member of Violent TTG Gang Sentenced to 30 Years in Federal Prison for Federal Racketeering and Drug ConspiraciesRead the Press Release
U.S. District Judge Catherine C. Blake sentenced Timothy Floyd, aka Tim Rod, 28, of Baltimore, to serve 30 years in federal prison, followed by five years of supervised release, for conspiring to participate in a drug distribution conspiracy and a violent racketeering enterprise known as Trained To Go (TTG). The racketeering conspiracy included eight murders, as well as drug trafficking and witness intimidation. Floyd and his co-defendants were also convicted of a drug distribution conspiracy involving heroin, marijuana, and cocaine. The sentence was imposed on July 19.
The sentence was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert K. Hur for the District of Maryland; Special Agent in Charge Jennifer C. Boone of the FBI Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the U.S. Drug Enforcement Administration (DEA) Baltimore District Office; Anne Arundel County Police Chief Tim Altomare and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the evidence presented at their 24-day trial, Floyd and his co-defendants are all members of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. Floyd served as one of TTG’s primary distributors of heroin and marijuana, routinely selling “packs” of heroin and gram quantities of marijuana from multiple locations in Sandtown. Typically, a “pack” contained between 25 and 50 gel capsules of heroin. In addition, the evidence proved that between May 20, 2010 and Jan. 9, 2017, Floyd, his co-defendants, and other members of TTG committed acts of violence, including murders, shootings, armed robbery, and witness intimidation. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
The leader of the gang, Montana Barronette, aka Tana, and Tanner, 23, and his brother, Terrell Sivells, aka Rell, 27, both of Baltimore, were each sentenced to life in prison on Feb. 15 and April 26, 2019, respectively. Co-defendants Brandon Wilson, aka Ali, 24, and Taurus Tillman, aka Tash, 30, both of Baltimore, were each sentenced to serve 25 years in prison on March 1 and May 21, 2019, respectively. Two other co-defendants, John Harrison, aka Binkie, 28, and Linton Broughton, aka Marty, 25, both from Baltimore, were sentenced to serve life in prison and to 30 years in prison, respectively, on March 15, 2019. Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison.
Dennis Pulley, aka Denmo, 31, of Baltimore, is the final defendant convicted at the trial who is awaiting sentencing. He faces a maximum sentence of life in prison on the racketeering and drug conspiracies.
Another defendant, Roger Taylor, aka Milk, 28, of Baltimore, a fugitive since July 2017, was arrested on June 30, 2019, and is now awaiting trial. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The investigation was conducted by the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City. Assistant U.S. Attorneys Christopher J. Romano, Daniel C. Gardner, and Special Assistant U.S. Attorney John C. Hanley, formerly of the Justice Department’s Organized Crime and Gang Section of the Criminal Division prosecuted this Organized Crime Drug Enforcement Task Force case.
McKeesport Man Sentenced for Role in Fentanyl Trafficking SchemeRead the Press Release
PITTSBURGH – A resident of Allegheny County has been sentenced in federal court to two-and-a- half years’ (30 months’) imprisonment and six years of supervised release on his conviction of conspiracy for possession with intent to distribute a quantity of fentanyl, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Michael Henry, 37, of McKeesport, PA.
According to information presented to the court, the charges in this case resulted from a wiretap investigation conducted by the FBI and other law enforcement partners. During the investigation, it was learned that Henry, among other things, assisted with the procurement of fentanyl packages from China, as well as provided locations to which the fentanyl was delivered in the Western District of Pennsylvania.
Assistant United States Attorney Robert C. Schupansky prosecuted this case on behalf of the government.
This prosecution was part of a 12-month investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. The GPSSTF and the United States Attorney’s Office, Western District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United States Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department.
Maui Doctor Pleads Guilty to Health Care FraudRead the Press Release
HONOLULU – Mark Lipetz, 50, owner and operator of the South Maui Clinic in Kihei, Maui, pleaded guilty today in federal court to two counts of health care fraud and one count of acquiring a controlled substance through misrepresentation, fraud, forgery, deception, or subterfuge. Sentencing is scheduled for December 5, 2019 before U.S. District Judge Leslie E. Kobayashi.
According to court documents and information presented in court, between January 2017 and June 2018, Lipetz, a licensed physician, wrote multiple prescriptions for medications using the names and addresses of actual patients. However, Lipetz did not intend to give the medications to the patients whose names appeared on the prescriptions. Instead, Lipetz filled the prescriptions and used the controlled substances for purposes other than the legitimate medical treatment of his patients. Such purposes included giving medications to patients other than those whose names appeared on the prescriptions or creating a stockpile from which he could provide “trial samples” to patients without writing them a prescription. Additionally, between May 2014 and July 2018, Lipetz engaged in a scheme to fraudulently obtain money from Medicare, Medicaid, Hawaii Medical Services Association, and United Healthcare by submitting more than 200 false claims for reimbursement. Each of the claims indicated that Lipetz had an in-person, face-to-face office visit with a patient, when in fact the office visits never occurred.
“The U.S. Attorney’s Office will continue its quest to root out fraud in the healthcare industry by working with the Drug Enforcement Administration (DEA) and other law enforcement entities dedicated to protecting patients,” stated U.S. Attorney Kenji M. Price for the District of Hawaii. “Our healthcare system relies upon the candor of physicians and other professionals who care for the vulnerable in our communities. Lipetz’s fraudulent behavior unlawfully steered precious funds towards his pockets and away from healthcare providers who serve the most vulnerable in our communities. We will continue to aggressively pursue physicians and other medical practitioners who, unlike the overwhelming majority of their colleagues, choose to violate federal law.”
“The DEA will continue to investigate illicit activity in the medical community,” said DEA Assistant Special Agent in Charge John Callery. “Dr. Lipetz is only one of several ongoing investigations throughout the state of Hawaii to shield our communities from the dangers of the Opioid Crisis that is crippling portions of the mainland. DEA is thankful to the U.S. Attorney’s Office for its outstanding assistance and partnership in this matter.”
This case was investigated by the DEA and the State of Hawaii Narcotics Enforcement Division. It was prosecuted by Assistant U.S. Attorney Michael Albanese.
Madison Felon Sentenced to 37 Months for Gun CrimeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Christopher Tibbs, 29, Madison, Wisconsin, was sentenced on July 18 by U.S. District Judge James Peterson to 37 months in federal prison for being a felon in possession of a firearm. Tibbs pleaded guilty to this offense on April 19, 2019.
On December 8, 2018, Madison police officers responded to a 911 call reporting a man with a gun at Connections Night Club located at 3737 East Washington Avenue in Madison. Officers found Tibbs in the back seat of a vehicle at the scene. The car was ultimately searched and officers found a Taurus .380 caliber pistol and a magazine in the area where Tibbs was sitting.
In sentencing Tibbs at the top of his advisory guideline range, Judge Peterson noted the situation was an inch away from something going really wrong and said his number one job was to make the community safe.
The charge against Tibbs was the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
MS-13 Gang Member Pleads Guilty to Racketeering Charges for 2016 Murder and Attempted Murder on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Carlos Argueta, also known as “Violento,” “Desorden” and “Dylan,” the former leader of the Freeport Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering and firearms charges for his participation in the January 15, 2016 attempted murder of a suspected rival gang member outside the Brentwood public library, and the June 3, 2016 murder in Brentwood of Jose Pena, an MS-13 member who was suspected of violating the gang’s rules. The guilty plea was entered before United States Circuit Judge Joseph F. Bianco.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
“With today’s guilty plea, Argueta admitted that while free on bail for shooting a gang rival in broad daylight outside a public library less than six months earlier, he planned and carried out the vicious murder of a fellow gang member on behalf of the MS-13,” stated United States Attorney Donoghue. “This Office, together with the FBI’s Long Island Gang Task Force, will continue working tirelessly to eradicate MS-13 and hold its members accountable for their senseless violence.”
“The twisted code the members and leadership of the MS-13 adhere to doesn't make sense to anyone outside of the gang,” stated FBI Assistant Director-in-Charge Sweeney. “They brutally take the lives of people because they didn’t follow the rules. There is no world where those thought processes and behaviors are okay. Our FBI Long Island Gang Task Force is doing all it can to root out all the violence this gang has created and bring those responsible to justice.”
“This guilty plea ensures that another member of MS-13 will face up to life in prison for killing a member of his own gang and attempting to murder a suspected rival gang member—two cases that are a reminder of the heinous nature of this transnational gang,” stated SCPD Commissioner Hart. “We applaud the effort of prosecutors to ensure Argueta would be tried as an adult to face the stiffest penalties possible. I would like to thank the Eastern District of New York and our partners on the FBI Long Island Gang Task Force for their continued partnership and commitment in bringing gang members to justice.”
“The guilty plea of defendant and MS-13 member Carlos Argueta should serve as an example of how multi-jurisdictional law enforcement agencies collaborate to bring violent defendants like these to justice,” stated NCPD Commissioner Ryder. “The tireless work of the dedicated men and women of these agencies have made our communities and streets safer, and I would like to congratulate all for a job well done. As we continue our zero tolerance approach toward illegal gangs, this defendant’s blatant disregard for society and life will be met with incarceration.”
As set forth in prior court filings and the defendant’s statements during his guilty plea, Argueta and several other MS-13 members confronted three suspected rival gang members outside a public library in Brentwood on January 15, 2016. Argueta removed a .45 caliber semi-automatic handgun from his waistband and shot one of the men, identified as John Doe in the superseding indictment, in the torso. Argueta and the other MS-13 members then fled. The wounded victim received medical treatment and survived.
Argueta, Pena and a third MS-13 member were subsequently arrested by Suffolk County Police Officers in connection with the attempted murder of John Doe, and were released on bail. Argueta subsequently demanded to see the other two MS-13 members’ arrest paperwork in connection with the shooting. Argueta then informed other members of the Freeport clique that he suspected that Pena, a member of the Normandie clique of the MS-13, had cooperated with the SCPD. Additionally, members of the MS-13 suspected that Pena was homosexual, which is unacceptable under the rules of the MS-13.
After consulting with MS-13 leaders in El Salvador, Argueta and other MS-13 members agreed to kill Pena and Argueta assigned tasks to other MS-13 gang members, including procuring weapons and a vehicle to be used in the murder. On June 3, 2016, Argueta and other MS-13 members lured Pena into a car, and drove to a secluded wooded area in Brentwood. After walking into the woods, the group attacked Pena, taking turns stabbing and slashing him with knives, and killing him. More than four months thereafter, Pena’s body was found.
On September 20, 2016, Argueta, who was 16 years old at the time of the crimes, was arrested by the FBI’s Long Island Gang Task Force, and charged in juvenile informations filed under seal. The government subsequently filed a motion to transfer Argueta to adult status for prosecution, and an evidentiary hearing was held on the transfer motion. On September 7, 2017, Judge Bianco issued a Memorandum and Order granting the government’s motion, and ordered that Argueta be prosecuted as an adult. Argueta appealed, and on December 20, 2018, the Second Circuit Court of Appeals affirmed Judge Bianco’s decision.
When sentenced, Argueta faces a maximum of life in prison. Upon completion of his sentence, Argueta, an illegal alien from El Salvador, faces deportation from the United States.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted of federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Office, Rockville Centre Police Department, New York State Police, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Michael T. Keilty are in charge of the prosecution.
The Defendant:
Carlos Argueta (“Violento,” “Desorden” and “Dylan”)
Age: 20
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-510 (S-2) (JFB)
Local Man Sent to Prison for Aiming Laser Pointer at an AircraftRead the Press Release
HOUSTON – A 20-year-old Houston man has been ordered to federal prison after admitting to pointing a green laser light at an Airbus AS350 B2 helicopter while it was in the air, announced U.S. Attorney Ryan K. Patrick. Bryan Aldana pleaded guilty Monday, April 22, 2019.
Today, U.S. District Judge Lynn N. Hughes handed Aldana a 48-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted Aldana’s irresponsible behavior shows he did not give thought to the people flying the aircraft and to the people on the ground. “The world is about responsibilities to other people,” said Hughes.
On June 23, 2018, Texas Department of Public Safety (DPS) agents were flying a the helicopter on routine law enforcement patrol. At approximately 9:00 p.m., they were headed in the northwest direction along highway US-290 when agents observed a flash of green light coming from the left side of the aircraft. At the time, they were at approximately 1000 feet elevation and traveling at a speed of 70-80 knots.
The pilot reversed the aircraft back to the southeast direction and was illuminated again by the green laser, which was powerful enough to light up the entire cockpit. The light caused a glare in the pilot’s eyes and obstructed his vision, forcing him to turn his head and maneuver the Airbus away from it. The pilot also had to close and shield his eyes from the flashing green laser inside the cockpit.
The investigation led to the source of the light at a business near the intersection of Hollister and Pitner Roads in Houston. Aldema was soon identified with the help of the Houston Police Department (HPD) and the store’s security cameras.
Video recordings show Aldana aiming a green laser up in the sky several times and a green laser pointer at the helicopter while sitting in a chair next to a silver sedan. He was also seen placing the green laser device through the opening of the silver sedan window on to the backseat.
Officers seized the laser and submitted it to a National Aeronautics and Space Administration scientist to be examined. The scientist concluded the laser pointer is a Class IIIB laser system and produced a “laser beam” which could result in serious and possibly permanent retinal damage.
Previously released on bond, Aldana appeared before Judge Hughes June 28, 2019, at which time the court found he had violated the terms of his release and ordered Aldana into custody. He will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, HPD and DPS conducted the investigation. Assistant U.S. Attorney Joe Porto is prosecuting the case.
Lexington Man Sentenced to 262 Months for Armed Drug TraffickingRead the Press Release
The Defendant qualified as an Armed Career Criminal
LEXINGTON, Ky. — Gregory Thomopolous, 39, of Lexington, was sentenced today to 262 months in federal prison, by United States District Judge Joseph M. Hood, for possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon.
In May 2018, officers with the Lexington Police Department, arrested Thomopolous for an outstanding warrant. During a search of his vehicle officers located approximately 75 grams of methamphetamine, a quantity of fentanyl, and a .357 revolver. Thomopolous admitted to distributing methamphetamine and fentanyl. Thomopolous also admitted that he possessed the firearm for protection during drug deals. At the time of his arrest, Thomopolous was on parole for other charges. Thomopolous has seven prior felony convictions, including drug trafficking. Based on his criminal history, Thomopolous was found to be an Armed Career Criminal.
Under federal law, Thompolous must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for 5 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge of the ATF Louisville Field Division; and Lawrence Weathers, Chief of the Lexington Police Department, jointly made the announcement.
The ATF and the Lexington Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated 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.
Lead Defendant in MS-13 Racketeering Case Admits to Five Murders, Agrees to Serve Life in Prison with No Chance of ReleaseRead the Press Release
COLUMBUS, Ohio – Two men, including the lead defendant, have agreed to plead guilty in the MS-13 racketeering case to multiple murders and serve life in prison. Two others have agreed to plead guilty and potentially serve 35-40 years in prison.
Martin Neftali Aguilar-Rivera (a/k/a Momia), 34, of Columbus, pleaded guilty in U.S. District Court this morning before Chief U.S. District Judge Edmund A. Sargus, Jr. to conspiring to commit racketeering and murder in aid of racketeering. Aguilar-Rivera accepted responsibility for participating in five murders. As a part of his plea, all parties in his case have recommended a sentence of life in prison without the possibility of release.
Likewise, a plea agreement was filed this morning for Jose Bonilla-Mejia (a/k/a Espia), 30, of Santa Maria, Calif. Bonilla-Mejia is offering to accept responsibility for his role in the murders of Carlos Serrano-Ramos, Wilson Villeda and Salvador Martinez-Diaz and serve life in prison without the possibility of release. His plea agreement will be considered by Chief Judge Sargus at a future hearing.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Interim Columbus Police Chief Thomas Quinlan announced the pleas offered.
In February 2018, 23 individuals were charged in a second superseding indictment and alleged to be members and associates of MS-13 in Columbus.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
The second superseding indictment alleges that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
The murders often involved defendants using weapons like machetes, knives and hammers to attack and beat their victims to death. In two of the charged murders, the victims were stabbed and slashed with bladed weapons before being buried in a nearby park.
Plea agreements were also filed today for two other defendants in this case, Jose Manuel Romero-Parada (a/k/a Russo), 24, of Columbus, and Jose Salvador Gonzalez-Campos (a/k/a Danger), 28, of Columbus. Both Romero-Parada and Gonzalez-Campos have agreed to plead guilty to racketeering conspiracy and accept responsibility for taking part in multiple homicides and other gang-related crimes, including drug trafficking, extortion and money laundering. The parties have recommended a sentence of 35 to 40 years in prison for these defendants. Chief Judge Sargus will consider those plea agreements at future hearings.
At future hearings, Chief Judge Sargus will consider the recommended terms of imprisonment and determine the ultimate sentences to impose.
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
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Latham Man Pleads Guilty to Attempting to Send Obscene Material to a MinorRead the Press Release
ALBANY, NEW YORK – Brendan Chandler, age 35, of Latham, New York, admitted today to sending images of his erect penis to someone he believed to be a 14-year-old girl.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Chandler admitted that on April 17, 2018, he used the Kik phone messaging application to send photos of his penis to someone he thought was a 14-year-old girl, but who was actually a New York State Police Investigator acting in an undercover capacity. Chandler was arrested that same day in a parking lot in Latham, where, he admitted, he believed he was going to pick up the girl in his car so that they could have sex.
As part of his plea agreement, Chandler agreed to serve a 100-month prison sentence, to be followed by 3 years of supervised release. Senior United States District Judge Thomas J. McAvoy will impose sentence on November 14, 2019.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police Troop G Computer Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Kouts Woman Indicted for Willful Failure to Pay Federal Payroll TaxesRead the Press Release
HAMMOND- Kathy L. Lynch, age 61, of Kouts, Indiana, was indicted on nine counts of willful failure to pay federal payroll taxes, announced U.S. Attorney Kirsch.
The Indictment alleged that Lynch has owned and operated two health care clinics, Kouts Health Care, Inc. and its predecessor company Kouts Family Health Care, Inc. since January 1999. As alleged in the Indictment, between January 1999 and September 2015, Lynch withheld payroll taxes (i.e., federal income taxes and Medicare and Social Security contribution taxes) from her employees’ paychecks but failed to submit over $500,000 of the withheld taxes to the Internal Revenue Service. During this time, the Indictment alleges that Lynch used her company’s bank account to pay personal expenses such as mortgage and car payments, while failing to pay her federal payroll tax obligations.
U.S. Attorney Kirsch said, “This indictment should send a strong message to those attempting to cheat the tax system. We always will partner with the IRS to focus on egregious tax violations in this District.”
“The failure to pay over withheld taxes from their employees is a serious allegation. IRS Criminal Investigation will continue to track down those who collect these taxes and use the funds for personal gain,” said Special Agent in Charge Tara Sullivan of the Chicago Field Office."
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Internal Revenue Service Criminal Investigation Division. This case is being prosecuted by Assistant United States Attorney Abizer Zanzi.
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Keshena Man Indicted for Firearm Offense and Domestic Violence on the Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on July 16, 2019, a federal grand jury returned a one-count indictment against a man allegedly involved in a firearms offense on the Menominee Indian Reservation. In addition, the grand jury returned a one-count indictment against the same man allegedly involved in domestic violence against a woman on the Menominee Indian Reservation. Both indictments named Jeremy Nunway (age: 39) of Keshena.
The first indictment charged Nunway with Possession of a Firearm by a Prohibited Person in violation of 18 U.S.C. § 922(g). If convicted of this charge, Nunway faces a maximum of ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the first indictment, on or about October 9, 2018, the defendant possessed an SKS semiautomatic rifle at a location in the Menominee Indian Reservation at the time the defendant was prohibited from possession of firearms.
This firearms offense is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
The second indictment charges Nunway with Domestic Assault by Strangulation in violation of 18 U.S.C. § 113(a)(8). If convicted of this charge, Nunway faces a maximum of ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the second indictment, on or about April 17, 2019, the defendant strangled a woman with whom he had a dating relationship on the Menominee Indian Reservation.
The Menominee Tribal Police Department investigated both cases, Federal Bureau of Investigation assisted in the investigation of the Domestic Assault charge. Both cases will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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Judge Sentences Pittsburgh Man to 5 Years in Prison for Fentanyl ConspiracyRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to five years’ (60 months’) imprisonment and four years’ supervised release on his conviction of conspiracy to possess with intent to distribute 40 grams or more of fentanyl, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Adrian Jordan, 29.
According to information presented to the court, the charges in this case resulted from a wiretap investigation conducted by the FBI and other law enforcement partners. During the investigation, the defendant was intercepted over a wiretapped phone discussing drug transactions. Furthermore, in connection with the investigation, fentanyl was recovered from the defendant on both December 16, 2016 and February 24, 2017.
Assistant United States Attorney Robert C. Schupansky prosecuted this case on behalf of the government.
This prosecution was part of a 12-month investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. The GPSSTF and the United States Attorney’s Office, Western District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United States Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department.
Illinois Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Matthew Slaughter, 37, Rockford, Illinois, was sentenced on July 18 by U.S. District Judge James Peterson to 10 years in federal prison for possessing child pornography. This sentence will run consecutively to an eight-year sentence the defendant was already serving for repeated sexual assault of a minor, and will be followed by 25 years of supervised release. Slaughter pleaded guilty to this charge on April 19, 2019.
In 2002, Slaughter was convicted of repeated sexual assault of a child. He was on extended supervision for that offense when he committed his federal offense. In addition to possessing child pornography, he had contact with several minors, asking them to send him explicit pictures.
Judge Peterson called the defendant a “dangerous predator” and ordered the defendant’s federal sentence to run consecutively to his state sentence because the defendant exploited his victims’ vulnerabilities for his own sexual satisfaction.
The charge against Slaughter was the result of the result of an investigation conducted by the Federal Bureau of Investigation and the Noblesville (Indiana) Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Idabel Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joel Seth Hood, age 37, of Idabel, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about November 30, 2018, within 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 which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the McCurtain 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 Clay Compton represented the United States.
Hungary Subsidiary of Microsoft Corporation Agrees to Pay $8.7 Million in Criminal Penalties to Resolve Foreign Bribery CaseRead the Press Release
Microsoft Magyarország Számítástechnikai Szolgáltató és Kereskedelmi Kft. (Microsoft Hungary), a wholly owned subsidiary of Microsoft Corporation, has agreed to pay a criminal penalty of more than $8.7 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of a bid rigging and bribery scheme in connection with the sale of Microsoft software licenses to Hungarian government agencies.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Geoffrey S. Berman of the Southern District of New York and Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division made the announcement.
According to Microsoft Hungary’s admissions, beginning by at least 2013 and continuing until at least 2015, a senior executive and other employees of Microsoft Hungary participated in a scheme to inflate margins in the Microsoft sales channel in connection with the sale of Microsoft software licenses to Hungarian government agencies. In furtherance of that scheme, Microsoft Hungary executives and employees falsely represented to Microsoft that steep discounts were necessary to conclude deals with resellers who bid for the opportunity to sell Microsoft licenses to government customers. In actuality, the savings were not passed on to the government customers, but instead were used for corrupt purposes and were falsely recorded as “discounts” and stored in various tools and databases on Microsoft servers in the United States in violation of the Foreign Corrupt Practices Act.
Microsoft Hungary entered into a nonprosecution agreement and agreed to pay a criminal penalty of $8,751,795 to resolve the matter. The Department reached this resolution based on several factors. Although Microsoft Hungary did not voluntarily self-disclose the misconduct, Microsoft Hungary received credit for its and Microsoft Corporation’s substantial cooperation with the Department’s investigation and for taking extensive remedial measures. For example, Microsoft Hungary terminated four licensing partners and Microsoft Corporation has implemented an enhanced system of compliance and internal controls, company-wide, to address and mitigate corruption risks. Accordingly, the criminal penalty reflects a 25 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range for the company’s full cooperation and remediation.
In a related matter with the Securities and Exchange Commission (SEC), Microsoft Corporation agreed to pay to the SEC disgorgement and prejudgment interest totaling approximately $16,565,151 for conduct in Hungary.
The case is being investigated by the FBI’s New York Field Office. Trial Attorneys Derek J. Ettinger and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sarah Lai of the Southern District of New York are handling the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Hungary Subsidiary of Microsoft Corporation Agrees to Pay $8.7 Million Criminal Fine to Resolve Foreign Bribery CaseRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that Microsoft Magyarország Számítástechnikai Szolgáltató és Kereskedelmi Kft. (Microsoft Hungary), a wholly owned subsidiary of Microsoft Corporation, has agreed to pay a criminal fine of more than $8.7 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of a bid rigging and bribery scheme in connection with the sale of Microsoft software licenses to Hungarian government agencies and the false recording of the corrupt payments as legitimate customer discounts on Microsoft Corporation’s financial records.
U.S. Attorney Geoffrey S. Berman said: “U.S. multinational corporations must have robust policies and practices to prevent their foreign subsidiaries from participating in bribery that result in false and misleading entries in the books and records of the parent company. We will hold subsidiaries and, where appropriate, the parent corporations accountable wherever FCPA violations occur.”
FBI Assistant Director William F. Sweeney Jr. said: “Microsoft Hungary created a conduit for illegal activity, one that permeated the layers of oversight put in place to protect against violations of the Foreign Corrupt Practices Act. The $8.7 million penalty imposed today makes it abundantly clear that any alleged violation of the FCPA, whether on behalf of an individual or entity, will not be taken lightly.”
According to Microsoft Hungary’s admissions, Microsoft Hungary contracts with third party companies to sell licenses for Microsoft products to Hungarian government agencies. These intermediaries purchase the licenses from Microsoft Hungary, then resell the licenses to the end customers. Beginning at least 2013 and continuing until at least 2015, senior executives and other employees of Microsoft Hungary participated in a bribery and bid rigging scheme in connection with the sale of Microsoft software licenses to Hungarian government agencies. In furtherance of that scheme, certain Microsoft Hungary executives and employees falsely represented to Microsoft that steep discounts were necessary to conclude deals with resellers who bid for the opportunity to sell Microsoft licenses to government customers. As a result, those discounts were falsely recorded in Microsoft Corporation’s financial records as legitimate business expenses. In actuality, the savings were not passed on to the government customers, but were used by the resellers, in part, to pay bribes to Hungarian government officials. The tainted deals resulted in at least $14,586,325 in profits to Microsoft Corporation.
Microsoft Hungary entered into a nonprosecution agreement and agreed to pay a criminal fine of $8,751,795 to resolve the matter. This resolution was based on several factors. Although Microsoft Hungary did not voluntarily self-disclose the misconduct, Microsoft Hungary received credit for its and Microsoft Corporation’s substantial cooperation with the investigation and for taking extensive remedial measures. For example, Microsoft Hungary terminated four licensing partners, and Microsoft Corporation has implemented an enhanced system of compliance and internal controls, company-wide, to address and mitigate corruption risks. Accordingly, the criminal fine reflects a 25 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range for the company’s full cooperation and remediation.
In a related matter with the Securities and Exchange Commission (SEC), Microsoft Corporation agreed to pay to the SEC disgorgement and prejudgment interest totaling approximately $16,565,151 for conduct including Hungary.
Mr. Berman praised the outstanding investigative work of the FBI.
The case is being handled by the Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sarah Lai is in charge of the prosecution, with support from Trial Attorneys Derek J. Ettinger and Della Sentilles of the Criminal Division’s Fraud Section.
Former VA Psychiatrist Sentenced for Health Care and Tax FraudRead 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 Dr. Xingjia Cui, 56, of Pittsford, NY, who was convicted of health care and tax fraud, was sentenced to serve 12 months and 1 day in prison by U.S. District Judge Elizabeth A. Wolford. He was also ordered to pay restitution in the amount $597,823.
Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendant was employed full-time by the Canandaigua Veterans Administration Medical Center, and in addition, Dr. Cui also maintained a private psychiatric practice in Canandaigua, NY.
A joint investigation involving federal, state and local law enforcement agencies showed that Dr. Cui had billed health insurance companies for psychotherapy services that he did not provide to his patients. Specifically, from January 1, 2013, to October 5, 2015, Dr. Cui willfully defrauded health insurance benefit programs of approximately $79,275 by fraudulently billing for psychotherapy services he did not provide.
In addition, the investigation showed that Dr. Cui failed to report on his federal income tax returns hundreds of thousands of dollars of payments that he received directly from his patients. For tax years 2010 through 2014, Dr. Cui failed to report approximately $381,447 income that he earned, resulting in a tax loss to U.S. Treasury in the approximate amount of $132,704.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larson, Special Agent-in-Charge, New York Field Office; the New York State Department of Financial Services, under the direction of Superintendent Linda Lacewell; the New York State Medicaid Fraud Control Unit, under the direction of William Falk; and the Ontario County Sheriff's Office, under the direction of Sheriff Kevin M. Henderson.
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Former Law Enforcement Officers ConvictedRead the Press Release
HOUSTON – A federal jury in Houston has convicted two law enforcement officers and a confidential source on drug trafficking charges, announced U.S. Attorney Ryan K. Patrick.
The jury deliberated for approximately four hours before convicting Carmen Saldaňa Meyer, a 64-year-old resident of Mission; and former Edinburg Police Department officer Hector Beltran, 44, and former Border Patrol agent Daniel Polanco, 38, both of Edinburg.
The jury heard the investigation began in 2011 when authorities targeted a drug trafficking organization involved in stealing loads of cocaine from sources of supply. The organization had created fake bundles of drugs and used law enforcement officers to seize them in order to cover up the theft.
During the two-week trial, the government presented evidence that Beltran and Polanco abused their positions of trust as law enforcement officers to further the conspiracy. The jury heard they had seized fake bundles of cocaine and provided co-conspirators with police reports of the seizure.
Meyer was an FBI confidential source and would deliver the seizure paperwork to Gulf Cartel associates in Mexico as proof law enforcement had seized the cocaine as opposed to being stolen and sold.
The jury heard Beltran, Polanco and Meyer all received a payment from drug proceeds.
All three defendants testified at trial and denied participating in the scheme.
The did not believe their claims and convicted all three of conspiracy to possess with intent to distribute more than five kilograms of cocaine. Polanco and Meyer were also found guilty of one and two counts, respectively of possession with intent to distribute cocaine. Polanco was further convicted of making a false statement to federal agents, while Meyer was also found guilty of kidnapping.
All face a minimum of 10 years and up to life in prison as well as a possible $10 million fine. U.S. District Judge Keith P. Ellison has sentencing for Oct. 8, 2019.
Beltran and Polanco were permitted to remain on bond pending that hearing. Meyer has been and will remain in custody.
Nine others, including a former Houston Police Department officer and a former officer with the Harris County Constable’s Office have previously pleaded guilty and are pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations and Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Blue Shame. Assistant U.S. Attorney Casey N. MacDonald and Anibal J. Alaniz are prosecuting the case.
Former IPS Teacher's Union President Pleads Guilty to EmbezzlementRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Rhondalyn Cornett, 54, of Indianapolis has entered a plea of guilty to embezzling over $100,000 from the teachers’ union.
According to the plea agreement, Cornett was the president of the Indianapolis Education Association, the union that represents the teachers of Indianapolis Public Schools, from November 2013 until her resignation in November 2018. Cornett used her position and authority to write checks from the union’s bank account as well as use the union’s debit card for personal expenses and to withdraw cash. In total, Cornett stole over $100,000.
“The U.S. Attorney’s Office is committed to prosecuting individuals, like Cornett, who abuse their positions of public trust,” said Minkler. “Teachers depend on the union dues they’ve paid from their paychecks in order for the union to represent their best interests.”
This case was jointly investigated by the Federal Bureau of Investigation, the Marion County Prosecutor’s Office, and the Indianapolis Metropolitan Police Department.
“Today’s guilty plea demonstrates the FBI’s commitment to identify, arrest and prosecute anyone who participates in defrauding programs that benefit our public institutions,” said Special Agent in Charge Grant Mendenhall. “This guilty plea comes as a result of the dedicated and tireless efforts of agents, analysts and prosecutors committed to holding accountable those who deliberately compromise the integrity of their public position for personal gain.”
“Teachers carry the great responsibility of shaping our future — cultivating the next generation of our city’s workforce and the leaders who will carry Indianapolis forward. It is unacceptable that anyone would seek to take advantage of the selfless individuals who have dedicated their careers to educating. The women and men of the IMPD remain committed to working alongside our state and federal partners to hold these bad actors accountable,” said IMPD Chief Bryan Roach.
According to Assistant United States Attorney Bradley P. Shepard who is prosecuting this case, Cornett faces up to 20 years in prison, a fine of up to $250,000 and up to three years supervised release following imprisonment.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3
Federal jury convicts three Monroe residents of illegal drug traffickingRead the Press Release
MONROE, La. – A federal jury handed down guilty verdicts against three Monroe residents late Friday afternoon for trafficking illegal narcotics, U.S. Attorney David C. Joseph announced.
Thomas J.M. Goodin, 37, Meko R. Walker, 37, and Brittany S. Gix, 30, all of Monroe, were convicted after a four-day jury trial presided over by U.S. District Judge Terry Doughty.
All three defendants were found guilty of conspiracy to possess with intent to distribute more than 50 grams of methamphetamine. In addition, Goodin was found guilty of possession with intent to distribute more than 50 grams of methamphetamine and possession with intent to distribute more than 10 grams of phencyclidine (PCP), and Walker and Gix were found guilty of attempted possession with intent to distribute more than 50 grams of methamphetamine.
Testimony presented during the trial showed that Goodin traveled to California on October 4, 2017, and shipped approximately a pound of pure methamphetamine inside of a gift-wrapped present to Gix. Agents intercepted the package and conducted a controlled delivery of the package to Gix’s home. After Gix received the package, Walker arrived at the home to pick up the package, and left with the methamphetamine. At that point, the Metro Narcotics Unit of Ouachita Parish arrested Walker and Gix.
In a second incident, a Louisiana State Trooper pulled over Goodin’s vehicle on November 30, 2017, in West Monroe on Interstate 20 traveling eastbound bearing California license plates. After a K-9 alerted on the vehicle, the trooper searched it and found additional gift-wrapped presents containing two drink bottles filled with liquid determined to be 92.8 grams of pure PCP and a candle containing a plastic bag determined to be 343.1 grams of pure methamphetamine.
“Illegal drugs are wreaking havoc on our communities and prosecuting those responsible for selling this poison is a priority of our office,” Joseph stated. “These defendants will be spending substantial time in federal prison as a result of their crimes. I want to thank the federal, state, and local law enforcement for their hard work and exemplary teamwork in tracking these defendants and investigating this case. I also want to thank the prosecutors and staff for their work conducting this trial professionally and effectively.”
Goodin faces 25 years to life in prison, and Walker and Gix face 10 years to life in prison. The defendants also face five years of supervised release and a $10 million fine. The court set sentencing for November 6, 2019.
The DEA, Metro Narcotics Unit of Ouachita Parish, Ouachita Sheriff’s Office and Monroe Police Department investigated the case. Assistant U.S. Attorney Mike O’Mara of the U.S. Attorney’s Office, Western District of Louisiana, and Special Assistant U.S. Attorney Michelle Anderson Thompson of Louisiana Attorney General Jeff Landry’s Office, Criminal Division, prosecuted the case.
Federal & Local Law Enforcement to Announce Pleas in MS-13 Racketeering CaseRead the Press Release
COLUMBUS, Ohio – Two men, including the lead defendant, have agreed to plead guilty in the MS-13 racketeering case to multiple murders and serve life in prison. Two others have agreed to plead guilty and potentially serve 35-40 years in prison.
The briefing will be held:
TODAY: MONDAY, JULY 22, 2019
WHEN: IMMEDIATELY FOLLOWING 10:30AM PLEA HEARING BEFORE CHIEF U.S. DISTRICT JUDGE EDMUND A. SARGUS, JR.
WHERE: Joseph P. Kinneary U.S. Courthouse
Front steps
85 Marconi Blvd.
Columbus, Ohio 43215
WHO: U.S. Attorney Benjamin C. Glassman
Columbus Interim Chief of Police Thomas Quinlan
Kristin Beggs, Supervisory Special Agent, FBI
Briefing will occur outside the front entrance of the federal courthouse. The plea hearing is open to the media. No cameras are permitted within the courthouse.
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Engineering Graduate Pleads Guilty to Lying to Federal AgentsRead the Press Release
Aaron Fein concealed use of an AR-15 semiautomatic assault rifle
GRAND RAPIDS, MICHIGAN - Aaron William Fein, 24 years old, of Grand Rapids, admitted in open federal court that he deliberately lied to the FBI Joint Terrorism Task Force in April, 2019. Lying to federal agents is a felony carrying a penalty of up to five years’ imprisonment and a $250,000 fine.
"This outcome holds Fein accountable for his deceit while assuring that he will have an opportunity for mental health treatment and not again be able to lawfully possess a firearm," advised U.S. Attorney Andrew Birge. "And it is thanks to the vigilance and tireless efforts of the FBI Joint Terrorism Task Force and its multiple federal and local law enforcement partners that Fein was arrested and could be charged before posing further danger."
Task Force Agents first became aware of Fein in August, 2018, when he attempted to cross into Canada without proper documentation. When he returned, U.S. Customs and Border Protection agents found documents and materials in his car relating to bomb making and jihadism. Fein admitted having bomb-making materials at his home, and told agents he was interested in mass shootings. During the following months, Task Force Agents kept close tabs on Fein, including encouraging him to seek counseling.
On several occasions this year, Fein obtained and attempted to obtain firearms and ammunition, but agents interceded. Agents eventually filed a petition for mental health treatment, and the Kent County Probate Court ordered Fein not to possess any firearms. In April, 2019, agents learned Fein had rented an AR-15 style semiautomatic assault rifle and trained with it at a firearms range in eastern Michigan. When they apprehended him soon after, he falsely stated he had not touched any guns. Video recordings from the range clearly showed him shooting the rifle. After additional investigation, agents learned Fein had bought metalworking tools. They arrested him at his residence, and found unassembled parts for multiple AR-15 rifles, as well as radio transmitters and electrical components for an improvised explosive device. Fein has a college degree in engineering.
Fein will be held in custody until his sentencing in Kalamazoo, before the Hon. Paul L. Maloney, United States District Judge. FBI was assisted in this investigation by Homeland Security Investigations.
END
Dominican National Sentenced to Prison for Misusing Social Security Number and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for false representation of a Social Security number and theft of public money.
Noemi Mejia, 51, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison, two years of supervised release, and ordered to pay $164,987 in restitution. Mejia will be subject to deportation upon completion of her sentence. In April 2019, Mejia pleaded guilty to false representation of a Social Security number and theft of public money. Mejia was charged in May 2018 and released on conditions.
In August 2001, Mejia applied to participate in the Department of Housing and Urban Development’s Section 8 Program, which is administered by the Boston Housing Authority, using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico. By falsely claiming that she was a U.S. citizen, Mejia was deemed eligible to receive Section 8 benefits. Mejia also applied for MassHealth benefits using the identity of a Puerto Rican citizen, which rendered her eligible for more expansive healthcare coverage. Mejia also used the stolen identity to obtain a Massachusetts driver’s license and to work.
While receiving benefits under the stolen identity, Mejia applied for and received additional Section 8 housing vouchers and food stamps using her true name. She received these benefits on behalf of her daughter, who is a United States citizen. The amount of the benefits received under these programs is determined, in part, by household income. Because Mejia did not report the income she earned using the stolen identity, she fraudulently received Section 8 benefits and food stamps in her true name.
In total, Mejia stole more than $164,000 in federally-funded housing assistance benefits, MassHealth benefits, and Food Stamps.
United States Attorney Andrew E. Lelling; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Dominican Man Admits Role in Conspiracy to Distribute over 100 Grams of HeroinRead the Press Release
NEWARK, N.J. – A Dominican man admitted today that he participated in a conspiracy to transport more than 100 grams of heroin from New York to New Jersey, U.S. Attorney Craig Carpenito announced.
Bienvenido Perez Lazala, 31, of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than 100 grams of heroin.
According to documents filed in this case and statements made in court:
In January 2018, a Mexican narcotics trafficker provided another individual with Lazala’s name and identified Lazala as someone who could assist in establishing narcotics sales in New Jersey. Lazala was contacted and agreed to obtain heroin to sell in New Jersey.
On or about February 5, 2018, following a series of intercepted calls, Lazala obtained 955.9 grams of heroin in Haverstraw, New York for purposes of transporting it back to New Jersey. Lazala then sold the heroin to another individual, who unbeknownst to Lazala was a law enforcement officer.
The conspiracy charge to which Lazala pleaded guilty carries a mandatory minimum penalty of 5 years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for November 4, 2019.
Lazala has been in custody since his arrest in New York on February 5, 2018.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: David Holman Esq., Newark, New Jersey
Disbarred Lawyer Pleads Guilty to Wire Fraud and Aggravated Identity Theft for Scheme to Steal from Friend and FamilyRead the Press Release
A disbarred Seattle attorney pleaded guilty today to aggravated identity theft and wire fraud for his scheme to steal the identities of a romantic partner and his relatives and using that personal information for fraud, announced U.S. Attorney Brian T. Moran. JOHN WILLIAM ALDERSON, 47, had a previous conviction in 2003 for wire fraud and Social Security fraud which resulted in a 41-month prison sentence and his disbarment. In 2014, ALDERSON met and began a romantic relationship with the victim and stole the victim’s identity to open multiple credit card accounts and incurred more than $260,000 in debt. All the while ALDERSON lied about his age, claimed to be independently wealthy, and concealed his prior criminal conviction and disbarment. Prosecutors have agreed to recommend no more than 54 months in prison when ALDERSON is sentenced by U.S. District Judge Richard A. Jones on November 1, 2019.
According to the plea agreement, ALDERSON moved into his victim’s home in 2015 and gained access to the victim’s personally identifying information. Using that information ALDERSON opened the credit card accounts and pretended to be the victim to dispute charges on the credit cards. One of the charges incurred on the cards was for ALDERSON to have plastic surgery at a Bellevue clinic. Those charges traveled interstate, constituting wire fraud. ALDERSON induced the victim to write him checks that were to be deposited in a joint investment account but instead were used by ALDERSON for his own expenses. ALDERSON forged letters and emails from various attorneys representing that ALDERSON was to receive a large financial settlement. Those representations were false. ALDERSON also used the identity of relatives living in Enumclaw to open an additional credit card account resulting in more than $38,000 in fraud. ALDERSON admits to a total fraud loss of more than $262,712.
The case was investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Michael Dion.
Delaware Business-Exec Sentenced for Amtrak Bribery SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Donald Scott Crothers, 45, of Milford, Delaware was sentenced to 18 months’ incarceration and three years’ supervised release by United States District Judge R. Barclay Surrick for his role in a federal program bribery scheme involving millions of dollars in contracts with the National Railroad Passenger Corporation (“Amtrak”). Crothers’ co-defendant, John Gonzales, will be sentenced at a later date.
Crothers and Gonzales were both executives for a small, Delaware-based manufacturing firm; Crothers served as the firm’s Vice President for Marketing and Contract Administration. The pair bribed Timothy Miller, a Lead Contract Administrator working in procurement for Amtrak, with cash payments totaling approximately $20,000 and trips to Rehoboth Beach, Delaware. In turn, Miller awarded more than $7.6 million in Amtrak contracts to the defendants’ firm – contracts which were federally funded through US Department of Transportation/Federal Railroad Administration grants. Miller pleaded guilty on April 11, 2018.
“This defendant flouted the law to gain millions of public dollars for his firm under false pretenses,” said First Assistant United States Attorney Jennifer Arbittier Williams. “The contracting process for federally-funded transportation projects must be unbiased and competitive in order to ensure fairness for all competing businesses and taxpayers. This Office is committed to maintaining the integrity of the federal contracting system and will prosecute those who violate this important area of federal law.”
“Pursuing corrupt companies and individuals who abuse government procurement practices for personal gain demonstrates the Department of Transportation Office of Inspector General’s (DOT OIG) commitment to maintain the integrity of funds used for federal transportation goods and services,” said DOT OIG Regional Special Agent-In-Charge Douglas Shoemaker. “DOT OIG along with our law enforcement and prosecutorial partners will continue to strongly pursue such cases involving wrongdoing for corporate crimes and greed.”
“Donald Crothers tried to gin up more business for his firm — not by working harder or smarter, but through blatant bribery,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “He corrupted the government’s contracting process, yielding millions in ill-gotten gains, and is finally being held to account for his actions.”
“Today’s sentencing highlights our commitment to ensuring Amtrak’s contracting process remains free from criminal activity,” said Kevin Winters, Amtrak’s Inspector General. “We appreciate the seamless collaboration with the U.S. Attorney's Office as well as the sustained professionalism exhibited by our investigative staff and partner agencies in getting to this result.”
The case was investigated by the Amtrak Office of Inspector General, the Federal Bureau of Investigation, U. S. Department of Transportation Office of Inspector General, and the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Eric Gibson.
D.C. Government Contractor Sentenced to 6 Months for Making Illegal Conduit Campaign Contributions to D.C. Council CandidatesRead the Press Release
WASHINGTON – Keith Forney, 60, formerly of Clinton, Md., was sentenced on Friday to 6 months in prison for making 11 illegal campaign contributions to three different campaigns for D. C. Council. Forney was also sentenced to an additional 36 months, suspended, for fraud, perjury, and corrupt election practices.
The announcement was made by U.S. Attorney Jessie K. Liu, Charles A. Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Forney is the owner of Forney Enterprises, Inc. (FEI), a general contracting company located in the District of Columbia. In April 2019, he was convicted of the campaign finance violations, three counts of fraud, two counts of perjury, and one count of corrupt election practices following a trial in the Superior Court of the District of Columbia. The fraud and perjury convictions stemmed from Forney falsely claiming to live at a D.C. address in order to obtain preference points for FEI in bidding for D.C. government contracts.
The Honorable Michael O’Keefe sentenced Forney on July 19, 2019 to 6 months of incarceration for the conduit campaign contribution counts and imposed a 36 month suspended sentence in total for the fraud, perjury, and corrupt election practices counts. Forney was also placed on three years of probation and ordered to perform 1,000 hours of community service and pay a $11,500 penalty.
According to the government’s evidence, FEI was a general contractor located in the District of Columbia. The District government had a preference program for local businesses when bidding for D.C. government contracts. The Department of Small and Local Business Development (DSLBD) certified that local businesses were eligible for preferences in certain categories. One of the categories was resident-owned business (ROB). The ROB category was worth five preference points, meaning that a bid was evaluated as if it was 5% less than the actual bid amount. On average, FEI bid for 15-30 D.C. government contracts per year using the ROB preference points. All of the contracts were worth over $1 million.
The evidence at trial established that in 2005, 2008, 2010, 2012, 2014, and 2016, Forney submitted applications to DSLBD falsely listing an address in the District of Columbia as his residence in order to obtain the ROB preference points. On the 2014 and 2016 applications, Forney certified under penalty of perjury that the applications were correct. Forney never lived at the address he provided. He had purchased the property in 2005 when it was being leased to a tenant. Forney continued to rent the property out while using the address for the ROB designation. Forney also obtained a D.C. driver’s license and a D.C. voter registration with the address of the rental property. He then submitted these documents to DSLBD to make it appear that he lived there.
Forney’s conviction for corrupt election practices was based on his July 2007 application for D.C. voter registration. The evidence at trial established that he falsely certified on the application that he was not registered to vote in any other jurisdiction when in fact he was registered to vote in Maryland. Forney continued to vote in Maryland after registering to vote in D.C. and did not cancel his Maryland registration until 2015. Forney also obtained Maryland and D.C. driver’s licenses on the same day.
The evidence at trial on the campaign finance charges established that Forney made the maximum allowable donations as an individual and on behalf of FEI to three candidates running for the D.C. council. Forney then directed associates to make personal contributions to these same candidates. Forney used FEI funds to reimburse the associates for the contributions.
In announcing the sentence, U.S. Attorney Liu, Acting Special Agent in Charge Dayoub, and District of Columbia Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General. They also expressed appreciation for the assistance provided by Assistant U.S. Attorney Daniel Lenerz; Financial Analyst Bryan J. Snitselaar; Paralegal Specialists C. Rosalind Pressley, Joshua Fein, and Amanda Rohde; former Paralegal Specialists Toni Anne Donato and Kristy Penny; and former Criminal Investigator Juan Juarez. They also cited the efforts of Assistant U.S. Attorneys Anthony Saler and Andrea Duvall who prosecuted the case.
Commercial Fisherman Sentenced in Federal Court for Assault with Intent to MurderRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that July 9, 2019, Christopher Shane Dreiling was sentenced in federal court on two counts of assault with intent to murder within the special maritime jurisdiction of the United States. Dreiling received a thirty year prison sentence, consisting of fifteen years on each count of assault to run consecutive to each other.
At trial, a jury found that at dusk on August 20, 2017, Dreiling attacked the captain and another crew member of the Billy B. a commercial fishing vessel. After stabbing both victims multiple times with a fillet knife, Dreiling forced the victims off the boat and into the Gulf of Mexico approximately 46 miles south of Gulf Shores/Orange Beach. A distress call was received by Coast Guard Sector Mobile, which immediately dispatched the CGC Kingfisher, a helicopter from CG AIRSTA New Orleans, and a small boat from CG Station Pensacola. Sector Mobile also notified the Coast Guard Investigative Service. Because of quick and heroic action by the United States Coast Guard, both victims were eventually rescued from the water and evacuated to a hospital in Pensacola.United States Attorney Richard W. Moore said, “We are blessed to live on the Gulf Coast where life on the water is a part of our proud heritage. When we go out on our rivers, Mobile Bay or the High Seas we deserve to do so free of fear of marauders who would rob us of the enjoyment of being on the water. Fortunately, we have a skilled and vigilant Coast Guard on duty and ready to respond like they did in this case. We will not tolerate criminal acts anywhere within our jurisdiction whether it is against our commercial fishermen or our recreational boaters.”
"Men and women from multiple Coast Guard units immediately responded to this attack, demonstrating how committed we are to protecting the lives of mariners regardless of the hazard," said Rear Adm. Paul Thomas, Eighth District commander.
This case was investigated by the United States Coast Guard Investigative Service, RAO Mobile, AL.
Columbus Man Pleads Guilty to Threatening Oklahoma Sheriff, Local FBI AgentRead the Press Release
COLUMBUS, Ohio – Joseph Michael Bragg, 40, of Columbus pleaded guilty to charges connected with at least a dozen threats he sent to a sheriff in Oklahoma during a two-month period in 2018, and threatening a Columbus FBI agent who came to Bragg’s residence to interview him.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the pleas entered today before U.S. District Judge Michael Watson.
According to court documents, Bragg transmitted through agency websites between June and July 2018 at least a dozen communications which contained threats to violently injure Rogers County, Oklahoma Sheriff Scott Walton and numerous other individuals in the state. On July 20, 2018, at the request of the FBI office in Oklahoma, an FBI agent in Columbus went to Bragg’s residence. Bragg came to the door, shouted profanities at the agent and told the agent “you have no authority here” before going back inside. Bragg came back to the door threatening to shoot and decapitate the agent. The agent drew his weapon in defense. Authorities came back with a search warrant and later arrested Bragg, who has been in custody since.
Bragg pleaded guilty to one count of transmitting a threat in interstate commerce and one count of influencing a federal official by threat. The plea agreement includes an agreed sentence of at least 12 months imprisonment, which would include time served, and three years of supervised release to include mental health treatment. Judge Watson will review the plea agreement and determine a date for sentencing.
U.S. Attorney Glassman commended the investigation of this case by the agencies participating in the FBI Joint Terrorism Task Force, and Assistant United States Attorney Jessica W. Knight, who is representing the United States.
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Coconut Creek Man Sentenced to Seven Years and Miramar Man Sentenced to More Than Four Years for Counterfeiting SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Wesley Anderson (26, Coconut Creek) to seven years in federal prison, and Christopher Stewart (20, Miramar) to four years and nine months in federal prison for their roles in a counterfeiting check scheme. The court also ordered Anderson and Stewart to pay restitution to financial institutions in the total amount of almost $80,000.
Anderson had pleaded guilty on May 13, 2019, and Stewart had pleaded guilty on April 15, 2019. On May 6, 2019, a third conspirator, Allen Griffin (23, Coral Springs), was sentenced to four years and nine months’ imprisonment in connection with this scheme.
According to court documents, during the summer of 2018, Anderson, Stewart, and Griffin created counterfeit checks and obtained access to individual bank accounts into which they deposited the counterfeit checks. The conspirators then withdrew the funds from the accounts before the fraud was detected. Anderson, Stewart, and Griffin deposited counterfeit checks totaling more than $370,000 in Orlando-area banks.
On August 3, 2018, Anderson and Griffin were arrested at a hotel in Orlando. They had blank check stock paper, a printer, and a laptop that they had used to create counterfeit checks, computerized images of signatures used on the counterfeit checks, and ATM cards that had been used in the scheme. All three individuals were also captured on bank surveillance video depositing counterfeit checks and making withdrawals from accounts where the counterfeit checks had recently been deposited.
This case was investigated by the United States Secret Service, with assistance from the Orange County Sherriff’s Office. It was prosecuted by Assistant United States Attorney Dana E. Hill.
Citizen of the Dominican Republic Pleads Guilty to Immigration ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FREDDY ANTONIO MARTE-JEREZ, 58, a citizen of the Dominican Republic last residing in Danbury, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of reentry of a removed alien.
According to court documents and statements made in court, in 1998, Marte Jerez’s wife filed an I-130 Petition for an Alien Relative with the Immigration and Naturalization Service (“INS”) providing documentation that she was a U.S. citizen and that she and Marte Jerez were legally married. After the petition was approved, Marte Jerez filed an I-485 Application for Permanent Residence or to Adjust Status. This application was denied based on Marte Jerez’s failure to disclose a prior narcotics conviction in the State of Rhode Island. In November 2000, Marte Jerez appeared before an Immigration Judge in Hartford and was released on bond while awaiting a hearing date.
In October 2007, Marte Jerez was convicted in Danbury Superior Court for sale of illegal drugs. On March 3, 2010, following completion of his state sentence, Marte Jerez was deported to the Dominican Republic.
Marte Jerez illegally reentered the U.S. and was arrested while using the name “Antonio Nunez” in Danbury. In December 2015, Marte Jerez was convicted in Danbury Superior Court of burglary in the third degree. He was sentenced to three years of incarceration, execution suspended, and three years of probation. Based on his use of a false identity, his arrest and conviction did not become known to U.S. Immigration and Customs Enforcement (ICE).
On March 19, 2018, Marte Jerez, using a different identity, was arrested in Danbury for motor vehicle offenses. His true identity was subsequently discovered through a fingerprint comparison and ICE took him into custody following his release from a state court appearance on June 27, 2018. He has been detained since his arrest.
When he is sentenced, Marte Jerez faces a maximum term of imprisonment of 10 years for illegal reentry. A sentencing date is not scheduled.
This investigation is being conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chula Vista Man Sentenced to 10 Years for Being Source of Fentanyl that Resulted in Non-Fatal Overdoses in AlpineRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – July 22, 2019
SAN DIEGO – A Chula Vista man was sentenced today in federal court to 10 years in prison for distributing fentanyl that led to the non-fatal overdoses of five people in Alpine, some of whom were revived by first responders with Naloxone.
In sentencing Joel Rodriguez of Chula Vista, U.S. District Judge Anthony J. Battaglia said the crimes were “very very serious” and drugs, like fentanyl, are “highly addictive and destructive to the population.”
According to court records, Rodriguez admitted that he obtained fentanyl from Mexico and then delivered it to another person for distribution in San Diego. Rodriguez knew that the substance was fentanyl and reminded his distributors that the substance was dangerous. Eventually, Rodriguez’s fentanyl led to the accidental overdoses of five individuals in Alpine on or about December 7, 2017. The individuals, who believed that they were using cocaine, ended up in the hospital. Some were treated at the scene with Naloxone – a drug that reverses the depression of the central nervous system and respiratory system caused by opioids. During the search of Rodriguez’s residence, agents found several baggies of cocaine and fentanyl, cutting agents, digital scales, and pay-owe sheets documenting drug deliveries and payments.
Rodriguez also admitted that he drove a vehicle containing cocaine on May 17, 2017 from San Diego County to Riverside County to deliver the bulk cocaine to another person for further distribution, months prior to his distribution of fentanyl.
“Buyer beware! These people thought they were using cocaine, not deadly fentanyl,” said U.S. Attorney Robert Brewer. “This is a strong sentence for a dealer who came close to pushing his unwitting customers to the point of no return. Dealers are on notice: We have an unyielding commitment to identify fentanyl dealers in our community in order to save lives. And users: Don’t play Russian Roulette with your life.”
Brewer thanked prosecutor Sherri Walker Hobson, the San Diego Sheriff’s deputies and detectives and agents from Homeland Security Investigations and the Drug Enforcement Administration for their work on this investigation which led to Joel Rodriguez’s arrest within days of the non-fatal overdoses. Brewer also thanked the first responders who revived the overdose victims.
“Our thoughts go out to the friends and families of the victims of Mr. Joel Rodriguez’s selfish crimes and greed,” said Juan Munoz, Acting Special Agent in Charge of Homeland Security Investigations in San Diego. “It is impossible to quantify the extent of the harm done by Rodriguez, but holding him accountable will continue to prove that our agents are dedicated to identifying and putting a stop to those engaged in the illegal smuggling of contraband, such as fentanyl.”
“Mr. Rodriguez made the decision to risk the lives of others to make a quick buck,” said DEA Special Agent in Charge Karen Flowers. “Five people almost lost their lives from the drugs provided by Mr. Rodriguez and countless others were impacted by his decision to traffic cocaine. Now Mr. Rodriguez will pay for his poor decisions by losing his freedom for 10 years during the prime of his life. His sentence should serve as yet another reminder: If you deal drugs, there will be consequences that will cost you your freedom.”
DEFENDANT Criminal Case No. 18CR0164
Joel Rodriguez 30 Chula Vista, California
SUMMARY OF CHARGES
Count 1: Possession of Cocaine with Intent to Distribute, in violation of 21 U.S.C. §841
Maximum penalties: Ten-year mandatory minimum to life in prison; $1 million fine
Count 2: Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. §841 and 846
Maximum penalties: Twenty years in prison; $250,000 fine
AGENCIES
San Diego County Sheriff’s Department
Homeland Security Investigations
U.S. Drug Enforcement Administration
San Diego District Attorney’s Office
Chinese National Sentenced for Role in Money Laundering ConspiracyRead the Press Release
LEXINGTON, Ky. – On Friday, July 19, 2019, a Chinese national residing in Chino Hills, California, was sentenced by U.S. District Judge Danny C. Reeves for his involvement in a money laundering conspiracy operating in Fayette County and elsewhere. Fengqiang Zhang, 41, was sentenced to 48 months in federal prison and 36 months of supervised release for his role in laundering money that was proceeds of drug trafficking. Zhang also faces deportation to China as a result of his conviction.
Zhang previously admitted that, from October 2018 until December 2018, in Fayette County, he conspired with Nancy Garcia Zapata and others to launder drug proceeds. Garcia also pleaded guilty to the same money laundering conspiracy charge and was sentenced to 71 months and 36 months of supervised release.
The investigation, jointly conducted by the Drug Enforcement Administration and the Lexington Police Department, began in 2016. The early investigation focused on the drug trafficking activities of Garcia’s husband, Fernando Lara Salas, and resulted in the execution of a search warrant in July 2017 at the residence he shared with Garcia. Officers located and seized 6 kilograms of cocaine, more than 50 grams of methamphetamine, approximately $110,000 in U.S. currency, and a loaded firearm. Following a jury trial, Fernando Lara Salas was convicted of drug trafficking, firearms and immigration offenses and was sentenced to a term of 353 months.
By October 2018, only 3 months after Lara Salas was sentenced, investigators were focused on Nancy Garcia and the same Lexington residence. DEA agents seized nearly $400,000 in drug proceeds from Zhang and later observed Zhang meeting with Garcia at the residence. Zhang was stopped by police, who located approximately $150,000 in a duffle bag in his rental vehicle, which was proceeds Zhang received from Garcia. A search warrant was executed at the residence and approximately $272,000 in drug proceeds were seized. Both Zhang and Garcia admitted that all of the money seized from them by law enforcement during the investigation was proceeds of drug trafficking.
“We will continue to emphasize the importance of anti-money laundering efforts, especially related to drug trafficking investigations,” said United States Attorney Robert M. Duncan, Jr. “By disrupting the ability of a criminal organization to launder and move proceeds of illegal drug trafficking activities, law enforcement personnel are able to weaken that organization. In disrupting the flow of money, law enforcement also disrupts the flow of drugs. We commend the work of our law enforcement partners with DEA and the Lexington Police Department on this successful investigation and prosecution.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville, and Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police, jointly made the announcement. The United States was represented by Assistant United States Attorney Todd Bradbury.
Charleston Man Sentenced for Gun CrimeRead the Press Release
CHARLESTON, W.Va. -- A Charleston man was sentenced today to a total of 44 months in prison for possession of a firearm by a prohibited person and violating his federal supervised release conditions, announced United States Attorney Mike Stuart. Antoine Brown was sentenced to 36 months in prison on the gun charge and received another 8 months in prison for violating the conditions of his federal supervised release. The Court ordered these two sentences to be served consecutively. The investigation was conducted by the Charleston Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
On December 16, 2018, Brown was driving a vehicle south on US 119 and was pulled over because an officer smelled burnt marijuana emanating from his vehicle at the intersection of US 119 and Oakwood Road. Brown moved a 9mm Taurus pistol from the center console of the vehicle and put it under a child’s car seat located in the back seat of the car. The firearm was loaded and operable. Brown’s child was seated in the backseat. Officers searched the vehicle and located the subject firearm. Brown is prohibiting from possessing firearms because he has previously been convicted of Involuntary Manslaughter and Distribution of Heroin.
United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Ryan A. Saunders handled the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Broken Bow Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Rance DeWayne Childs, age 36, of Broken Bow, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about May 5, 2019, within the Eastern District of Oklahoma, the Defendant, having been convicted of crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Seminole Nation Lighthorse Police and the Bureau of Indian Affairs.
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.
Special Assistant United States Attorney Courtney Jordan represented the United States.
Brockton Man Sentenced to Prison for Violation of Computer Fraud and Abuse ActRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston in connection with the August 2018 computer intrusion of a Massachusetts company.
Colby Anderson, 26, was sentenced by U.S. District Court Judge William G. Young to four months in prison, four months of home confinement, and two years of supervised release. The Court deferred ruling on restitution, pending further briefing. In May 2019, Anderson pleaded guilty to a violation of the Computer Fraud and Abuse Act. Anderson was charged in October 2018 and released on conditions.
In July 2018, Anderson was terminated from his position as a Network Operations Center Technician at Blueport Wireless, a high speed internet access provider. Following his termination, Anderson used his former colleagues’ account login information to delete approximately 120 customer configuration profiles, causing widespread internet service issues at customer facilities.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrimes Unit prosecuted the case.
Boulder Drug Dealer Sentenced to 8 Years in Federal Prison for Distributing Illegal Drugs and Carrying Firearm for Drug TraffickingRead the Press Release
DENVER – Joseph Meyer Platt, age 24, of Boulder, Colorado, was sentenced late last week by U.S. District Court Judge William J. Martinez to serve 96 months (8 years) in federal prison for possession of a controlled substance with intent to distribute and carrying a firearm during and in relation to a drug trafficking crime, announced U.S. Attorney Jason Dunn and ATF Denver Division Special Agent in Charge David Booth. Platt appeared at the hearing in custody and was remanded at its conclusion.
According to the stipulated facts contained in the plea agreement, on June 6, 2017 members of the Boulder County Narcotics Task Force conducted a search of Platt’s residence. It was determined that the defendant used the mail to distribute narcotics from his residence and then to receive payment. During the search, law enforcement recovered 567 grams of cocaine, 1161 grams of MDMA (Ecstasy), other narcotics, $9,721 in U.S. currency, a .22 caliber semi-automatic pistol, two 9 mm caliber semi-automatic pistols, a 12 gauge shotgun and 2,729 rounds of various types of ammunition.
“The defendant is a significant drug dealer,” said U.S. Attorney Jason Dunn. “Removing him and his drug house from Boulder is great win for the local community.”
“ATF and our law enforcement partners’ commitment to protecting our communities will never waver,” said ATF Denver Special Agent in Charge David Booth. “We will continue to combat drug trafficking and violent crime wherever found and with all resources at our disposal.”
This case was investigated by the ATF with substantial assistance from the Boulder County Narcotics Task Force. The defendant was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Boone County Man Pleads Guilty to Distributing Methamphetamine and HeroinRead the Press Release
CHARLESTON, W.Va. – A man from Nellis, West Virginia, pled guilty to federal drug trafficking offenses, announced United States Attorney Mike Stuart. Russell Lee Gillenwater, 39, pled guilty to two counts of distributing methamphetamine and one count of distributing heroin and methamphetamine before United States District Judge Joseph R. Goodwin. Stuart commended the investigation conducted by the Boone County Sheriff’s Office, the West Virginia State Police, the U.S. 119 Drug and Violent Crime Task Force, and the Drug Enforcement Administration.
“Meth and heroin are being trafficked in every county in my District,” said United States Attorney Mike Stuart. “And in every county, we are working with our law enforcement partners to investigate and prosecute individuals like Gillenwater who are distributing these dangerous drugs.”
Based on information presented in public court records and hearings, Gillenwater distributed methamphetamine on three separate occasions and heroin on one occasion to undercover police informants at different locations in Boone County.
Gillenwater faces up to 60 years in federal prison when he is sentenced on October 17, 2019. Assistant United States Attorney Drew O. Inman is handling the prosecution.
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Bloods Gang Member Sentenced to 30 Years in Federal Prison After Advanced Ballistic Technology Ties Shell Casings at Murder Scenes to Defendant’s FirearmsRead the Press Release
DENVER – David Scott, age 28, of Denver, was sentenced late last week by Chief U.S. District Court Judge Philip A. Brimmer to serve 360 months (30 years) in federal prison for using firearms during crimes of violence, specifically two murders, announced U.S. Attorney Jason Dunn and ATF Denver Special Agent in Charge David Booth. Scott appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Scott was identified as the individual who was responsible for multiple shootings, including 2 murders, in part because of ATF and Denver’s NIBIN ballistic technology, where spent bullet casing found at the scene are processed and matched to a specific gun. Law enforcement continue to investigate Scott to determine if he was involved in other gang related murders.
According to stipulated facts contained in Scott’s plea agreement, Scott is a member of the Park Hill Crenshaw Mafia Gangster (“CMG”) Bloods gang, which is a criminal organization whose members and associates engage in acts of violence, including murder, attempted murder, robbery, extortion, and narcotics distribution. Park Hill CMG Bloods gang members and associates use intimidation, violence, and threats of violence in order to preserve, expand, and protect their claimed territory, as well as to enhance the reputation of an individual member or associate, as well as the organization, within the community.
The Park Hill CMG Bloods have an ongoing feud with several Denver street gangs, including various sets of the Crips gang. As part of this feud, on November 23, 2014, the defendant, with other Park Hill CMG Bloods gang members, traveled to the Beach Nightclub where a large number of Crip gang members were anticipated to attend a concert. The defendant and fellow Park Hill CMG Bloods gang members went to the nightclub to initiate a conflict with Crip gang members. The defendant and other Park Hill CMG Bloods gang members possessed firearms in anticipation of this conflict. As Crip gang members left the nightclub, the defendant shot another gang member at close range, killing him. Once Scott fired his weapon, both Crip and Park Hill CMG Bloods gang members began firing at each other. Three additional people were shot in this firefight and law enforcement recovered thirty expended ammunition casings from the parking lot.
Bullet shells collected at the scene were processed through the ATF’s NIBIN (National Database of Digital Images Of Spent Bullets and Cartridge Cases) which matched up with Scott’s firearm. NIBIN is a national database of digital images of spent bullets and cartridge cases that were found at crime scenes or test-fired from confiscated weapons. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) manages the system and provides the equipment to crime labs around the country, including the Crime Gun Intelligence Center located within the Denver Crime Lab. A firearms examiner uses ballistic imaging to convert the spent rounds into two- or three-dimensional digital images that are uploaded into NIBIN.
On the evening of November 24, 2014 through the early morning hours of November 25, 2014, the defendant drove to various locations in the Denver metro area with a Crip gang member. They engaged in at least two street robberies that night. At one point, the men traveled to a motel where the defendant met with various Crip members. When the defendant left the motel, he drove the other man to a location to be dropped off. When the man exited the vehicle, the defendant followed him. Scott retrieved a firearm from his waistband and shot the man, killing him. Law enforcement recovered two expended firearm casings from the area around the dead man’s body. These shell casings came from the same firearm used by the defendant to kill the other man the day before.
“The defendant deserves every day he will serve in prison because of his callous disregard for human life combined with his life as a member of a violent criminal street gang,” said U.S. Attorney Jason Dunn. “Thanks to the ATF, our local law enforcement partners as well as prosecutors in the U.S. Attorney’s Office, the many victims of David Scott have found justice.”
“ATF and our law enforcement partners will use every resource available to protect our communities from violence,” said ATF Denver Special Agent in Charge David Booth. “These partnerships combined with NIBIN are an extremely effective tool to protect the public and fight violent crime.”
This case was investigated by the ATF with substantial assistance from the Denver Police Department and RAVEN (the Regional Anti-Violence Enforcement Network). The defendant was prosecuted by Assistant U.S. Attorney Celeste Rangel with assistance from Assistant U.S. Attorneys Jeremy Sibert, Rebecca Weber, and Emily Treaster.
Armed Methamphetamine Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that George Joseph Randall Collier, 40, of Theodore, Alabama, was sentenced in federal court on two charges, possession with intent to distribute methamphetamine and using, carrying, or possessing a firearm in furtherance of or in relation to a drug trafficking felony. Collier pled guilty to the charges in 2018.
United States District Court Judge Callie V. S. Granade imposed a sentence of 83 months imprisonment, consisting of 23 months on the drug count and 60 months consecutive on the gun count. Collier will serve a period of 6 years on supervised release following the completion of his custody sentence. He will undergo drug and alcohol abuse treatment and urine surveillance while he is under supervision. The judge did not impose a fine but ordered that Collier pay $200 in special mandatory assessments.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Ames Man Charged with Child Pornography OffensesRead the Press Release
DES MOINES, Iowa – Jona Shitaleni Paulus, age 33, of Ames, was charged by a grand jury on July 18, 2019, with one count of receipt of child pornography and one count of possession of child pornography. The Indictment alleges Paulus knowingly received and possessed child pornography on his cell phone in April of 2019.
The public is reminded that an Indictment is merely an accusation, and the defendant is presumed innocent unless and until he is proven guilty.
This case was investigated by the Department of Homeland Security with assistance from the Iowa State University Police Department. This matter is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Department of Justice’s Project Safe Child Initiative.
Akron man indicted for his role in a conspiracy in which he was to receive more than 80 pounds of methamphetamine, as well as firearms and marijuana chargesRead the Press Release
An Akron man was indicted in federal court for his role in a conspiracy in which he was to receive a shipment of more than 80 pounds of methamphetamine, as well as firearms and marijuana charges.
Patrick Anthony Foster, 48, was indicted on one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute marijuana, one count of being a felon in possession of firearms and one count of possession of firearms in furtherance of drug trafficking.
The six-count indictment was unsealed today upon Foster’s arrest.
Foster was stopped for a suspected traffic violation on June 14 in Akron and was found to have 11 ounces of methamphetamine, 23 pounds of marijuana, cash and a loaded 9 mm pistol, according to court documents.
A subsequent search of his home at 27 East Emerling Avenue in Akron resulted in the discovery of approximately 40 pounds of marijuana and a Norinco SKS 7.62 mm rifle and ammunition, according to court documents.
Foster is prohibited from having firearms because of a previous drug conviction, according to court documents.
"This defendant is alleged to have been waiting on a shipment of more than 80 pounds of methamphetamine, while also in possession of firearms and over 60 pounds of marijuana," U.S. Attorney Justin Herdman said. "Unfortunately, we see time and time again that drug dealers use firearms in the course of their trafficking activities. Law enforcement from across the country did an outstanding job working together to take this defendant and these dangerous drugs off the street."
This case was investigated by the Drug Enforcement Administration, Summit County Sheriff’s Office, Summit County Drug Unit, Akron Police Department, Ohio State Highway Patrol, Springfield Police Department, New Franklin Police Department, Stow Police Department, University of Akron Police Department, Copley Police Department, Summit County Prosecutor’s Office, Barberton Police Department, Reminderville Police Department, the Canadian County Sheriff’s Office in Oklahoma and the DEA’s Oklahoma City office. It is being prosecuted by by Assistant U.S. Attorney Christopher Joyce.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ 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 indictment 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.
Ada Woman Pleads Guilty to False Statement in Acquisition of A FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Reagan Sydney Clark, age 22, of Ada, Oklahoma, entered a guilty plea to False Statement In Acquisition Of A Firearm, in violation of Title 18, United States Code, Sections 922(a)(6) and 924(a)(1)(A), punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about November 30, 2018, in the Eastern District of Oklahoma, the defendant, in connection with the acquisition of a firearm, to wit: One (1) Walther, Model CCP, 9x19mm caliber semi-automatic pistol, serial number WK066579, from GUNRUNNERS, a licensed dealer of firearms within the meaning of Chapter 44, Title 18, United States Code, knowingly made a false and fictitious written statement to GUNRUNNERS, which statement was intended and likely to deceive GUNRUNNERS, as to a fact material to the lawfulness of such sale of the said firearm to the defendant under Chapter 44 of Title 18, in that the defendant represented she was the actual transferee/buyer of the firearm.
The charges arose from an investigation by the Ada Police Department 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.
67-Year-Old Las Vegas Doctor Sentenced to Prison for Unlawfully Prescribing OpioidsRead the Press Release
LAS VEGAS, Nev. – A pain management doctor who practiced in Las Vegas was sentenced to 41 months in federal prison today to be followed by 3 years of supervised release for unlawfully prescribing addictive opioids Fentanyl, Hydrocodone, and Oxycodone outside the usual course of professional practice and not for a legitimate medical purpose.
United States Attorney Nicholas A. Trutanich for the District of Nevada, Assistant Special Agent in Charge Daniel Neill of the Drug Enforcement Administration, and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division made the announcement.
Dr. Steven A. Holper, M.D., 67, was sentenced by United States District Judge Jennifer A. Dorsey. Dr. Holper pleaded guilty in December 2018, to one count of distribution of a controlled substance.
“Doctors who betray their duty and the public’s trust for their own personal gain will be identified and prosecuted in Nevada,” said United States Attorney Trutanich. “This prosecution is part of our ongoing efforts to protect Nevadans from medical professionals who fuel the opioid epidemic. The U.S. Attorney’s Office and our partners share one goal: to curtail the opioid crisis.”
“A lot lives were impacted by Dr. Holper’s reckless behavior,” said Assistant Special Agent in Charge Neill. “This case highlights the impact that federal and state and local agencies have combatting the opioid epidemic in Las Vegas.”
“The accessibility of oxycodone, fentanyl and other deadly drugs are a threat to our communities,” said Special Agent in Charge Rouse. “Each and every day, the FBI and our partners in Nevada are working hard targeting distributors, who are consciously contributing to the appalling opioid crisis that is inflicting havoc in neighborhoods all over the state of Nevada.”
As part of his guilty plea, Dr. Holper admitted that from July 2015 to March 2016, he unlawfully prescribed Fentanyl, Oxycodone, and Hydrocodone to his patients outside the proper standard of care, and without a legitimate medical purpose. At least one patient that Dr. Holper admitted he distributed these drugs to passed away with a toxic level of fentanyl in the patient’s system.
Fentanyl, Hydrocodone, and Oxycodone are all classed as Schedule II controlled substances by the DEA, indicating that they have a high potential for abuse which may lead to severe psychological or physical dependence.
The case was investigated by the DEA, FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Henderson Police Department. Assistant United States Attorney Nadia Ahmed and Assistant Chief Kilby MacFadden from the Department of Justice Fraud Section prosecuted the case.
If you have a tip or information about illegal sales or distribution of prescription opioids by doctors and pharmacies, call the DEA at 1-877-RX-Abuse (792-2873) or contact the FBI at tips.fbi.gov.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. In 2017, the Department of Justice funded a dedicated opioid prosecutor to the United States Attorney’s Office for the District of Nevada.
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31 Individuals Charged in Cigarette Smuggling OperationRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina announced today that on June 19, 2019, a federal grand jury sitting in the Eastern District of North Carolina returned a sealed, eight-count indictment charging 31 individuals and one business entity with a scheme to defraud the federal government, the State of North Carolina, the State of New York and the Commonwealth of Virginia, of millions of dollars in tax revenues from the sale of cigarettes.
This investigation, entitled Operation Southern Lights, is an effort to end large scale tax fraud and to hold these defendants accountable for the millions in lost tax revenue as the result of their illegal scheme. The individuals charged are:
- Justin Brent Freeman, 36
- Malek Hamoud Alsaidi, 40
- Ibrahim Ahmed Alsaidi, 43
- Sadek Dahan Shahbain, 38
- Ayed Yahya Ali Alsham, 37
- Alshami Yahya Ali Alshami, 35
- Mohamed Hafed Abdou, 39
- Mohamed E Ould El Bechir, 43
- Akram Ali Amer, 32
- Mohamed Yeslem Ould Izid Bih, 40
- Mohammed Saaid Darweesh, 30
- El Hassen Hamadi, 42
- Musheer Mohammed Hezam Al Naqeb, 21
- Ali Mohammed Mashli Al Qadhi, 41
- Mohamed Mounir, 39
- Aied Awad Shibli, 50
- Shibli Abu Issa Shibli, 51
- Manar Mohammed Talal-Mustafa, 40
- Mohammed Nael Mahmou Khalayfa, 28
- Saleh Mohammed Abdeljawad, 39
- Kaid Mohamed Addailam, 32
- Amr Mousa Alhalemi, 22
- Ahmed Khalayfa, 21
- Rawhi Abdel Jabbar Khams Awad, 62
- Ali Aied Shibli, 26
- Amchad Rawhi Khamis Awad, 31
- Wachdi Rawchi Khamis Awad, 33
- Abdallahi Mohamed Elhafedh, 43
- Ahmed Elhoussein, 54
- Dedde Cheikh, 39
- Arafat A. I. Abuhammoud, 34
In Count One, the grand jury alleges that the 31 individuals and the one business entity listed in the indictment, had been engaged in a conspiracy, beginning in 2018 and continuing until at least the time the indictment was returned, to ship, transport, receive, possess, sell, distribute and purchase cigarettes, in quantities exceeding 10,000 cigarettes (as required by the relevant statute), which bore no evidence of the payment of applicable State or local cigarette taxes in the state and locality where they were found. The object of the conspiracy was to profit from the purchase of cigarettes with cash in North Carolina, drive those cigarettes to the northeast, and sell them without paying the applicable sales tax. This is all alleged to be in violation of Title 18, United States Code, Section 2342 (a) (which prohibits the trafficking in contraband cigarettes and smokeless tobacco) and Title 18, United States Code, Section 371, the general conspiracy statute.
It is alleged in the indictment that members of the conspiracy would repeatedly purchase large quantities of cigarettes from Justin Brent Freeman, age 37, of Hope Mills, North Carolina, through a business he operated named Freeco, Inc. in Fayetteville, North Carolina, as well as from other cigarette wholesalers in Fayetteville, Raleigh and Goldsboro, and then transport those qualities of cigarettes to storage locations for future shipment to New York City. After purchasing the cigarettes from Freeman and Freeco, Inc., or from one of the other retailers, members of the conspiracy would then prepare for transporting the cigarettes to the Northeast by using a full size van or rental truck and cross into the Commonwealth of Virginia and travel to either Richmond or Alexandria. In Virginia, the cigarettes would be transferred to another member of the conspiracy who would continue the transportation to Syracuse, New York. There, additional members of the conspiracy would transfer the cigarettes to an as yet unknown individual for transportation and distribution in the New York City area.
Counts Two through Seven allege six specific instances where the individual named in those counts (and who were part of the conspiracy charged in Count One) knowingly shipped, transported, received and possessed contraband cigarettes (in amounts greater than 10,000) which bore no evidence of the payment of applicable state cigarette taxes in the Commonwealth of Virginia. Each of these instances is alleged to be in violation of Title 18, United States Code, Section 2342(a), as well.
Last, Count Eight alleges that all 32 defendants – the 31 individuals and Freeco, Inc. – were engaged in a conspiracy to launder money in violation of Title 18, United States Code, Section 1956(h). In this count, the grand jury alleges that members of the conspiracy (a) conducted and attempted to conduct financial transaction affecting interstate commerce which involved the proceeds of specified unlawful activity, that is, cigarette trafficking, with the intent to further the goals of that crime, and that they knew that the property involved in the crime was in fact the proceeds of some form of unlawful activity; and (b) that, again, while they conducted or attempted to conduct the specified unlawful activity – again, cigarette trafficking – that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership and control of the proceeds of the unlawful activity. So, in sum, the money laundering conspiracy count alleges that the members of the conspiracy were trying to either further the goals of the crime or to conceal the crime by using the proceeds of the crime in some way, or do both those things.
If convicted of Count One, the general conspiracy to traffic in contraband cigarettes, each defendant faces up to five years in federal prison and fines of up to $250,000 or both; if convicted of Counts Two through Seven, each defendant named therein faces up to five years in federal prison and fines of up to $250,000, or twice the gain obtained, whichever is greater, or both; and, if the defendants are convicted of money laundering as alleged in Count Eight, they each face up to 20 years imprisonment, a $500,000 fine or twice the value of the property involved in the transaction, whichever is greater, or both.
In addition, the grand jury included a forfeiture notice in the indictment. That section of the indictment provides notice to each defendant that the items of property listed in that notice, and any other property which is the proceeds of or involved in the crime, is forfeitable to the United States. The forfeiture notice conservatively calculates the gross proceeds of the crimes alleged in the indictment at $12,322.943 and designates that amount as forfeitable to the United States as well.
The charges and allegations contained in the Indictment are merely accusations. An Indictment is a formal written accusation originating with the United States Attorney and issued by a grand jury against a party charged with a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by Homeland Security Investigations, Cumberland County Sheriff’s Office, United States Marshals Service, Robseson County Sheriff’s Office, and the Johnston County Sheriff’s Office.