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Monday 3 June 2019
Four men sentenced for roles in methamphetamine conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA –Four men have been sentenced today to a combined 116 months incarceration for their roles in a methamphetamine conspiracy, United States Attorney Bill Powell announced.
Corey Bircher, of Elk Garden, West Virginia, was sentenced today to 37 months incarceration. Bircher, age 26, pled guilty to one count of “Possessing a Firearm in Furtherance of a Drug Trafficking Crime” in February 2019. Bircher admitted to having a .357 revolver during a methamphetamine distribution crime in February 2018 in Mineral County.
Steve William Gray, of Luray, Virginia, was sentenced to 18 months incarceration. Gray, age 39, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” He admitted to conspiring with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties.
Tyler Allen Whitacre, of Elk Garden, West Virginia, was sentenced to 15 months incarceration. Whitacre, age 25, pled guilty to one count of “Distribution of Methamphetamine” in March 2019. Whitacre admitted to selling methamphetamine in January 2018 in Mineral County.
Joseph Nathaniel Hagan, of Petersburg, West Virginia, was sentenced to 46 months incarceration. Hagan, age 36, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in March 2019. Hagan admitted to distributing methamphetamine in January 2018 in Hampshire County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Former Physician Assistant Sentenced to 48 Months for Kickback SchemeRead the Press Release
Concord - United States Attorney Scott W. Murray announced that Christopher Clough, 45, of Dover, New Hampshire was sentenced to 48 months for participating in a scheme in which he received kickbacks in exchange for prescribing a powerful fentanyl spray to patients in violation of federal law.
Court filings and statements made in court established that Clough worked as a physician assistant in New Hampshire. After being approached by a representative of a drug manufacturer in June of 2013, he became a frequent prescriber of a fentanyl spray that had been approved by the Food and Drug Administration to treat breakthrough cancer pain. From approximately June of 2013 through the fall of 2014, Clough wrote more than 750 prescriptions for the fentanyl spray in New Hampshire, including more than 215 prescriptions for Medicare patients and several more for Tricare patients. The Medicare program paid over $2.1 million for these prescriptions, and Tricare paid nearly $600,000.
During the time he was writing these prescriptions, the manufacturer of the drug paid Clough to serve as a speaker at more than 40 programs at a rate of approximately $1,000 per event. In many instances, the programs were merely sham events where Clough was paid to have dinner with employees or representatives of the pharmaceutical company. During most dinner programs, Clough did not give any kind of presentation about the drug. Clough and others often forged signatures of attendees on sign-in sheets in an effort to make the dinners appear to be legitimate. Evidence at trial demonstrated that Clough received over $49,000 in payments from the drug manufacturer.
Clough often prescribed the drug for patients who did not have breakthrough cancer pain. He often started patients on high doses of the addictive fentanyl spray and rebuffed patients and their family members who stated that they no longer wanted the drug.
Clough was convicted of one count of conspiracy and seven counts of receipt of kickbacks in relation to a federal healthcare program.
A jury found Clough guilty on December 18, 2018 following a six-day trial.
“Mr. Clough’s actions were a disturbing betrayal of his patients’ trust,” said U.S. Attorney Murray. “Rather than making his prescribing decisions based upon the needs of his patients, his decisions were tainted by the kickbacks he was paid by a pharmaceutical company. This substantial sentence should serve as a warning to all health care providers in New Hampshire that there will be severe consequences if they choose to engage in criminal conduct.”
"Mr. Clough is no better than a street level drug dealer,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “He exploited his patients, betrayed their trust, and accepted kickbacks for his own personal enrichment. Today's sentence marks an important step in holding doctors responsible for their role in fueling the opioid epidemic and be assured, the FBI will continue to identify and bring to justice doctors like him whose practices promote fraud with a total disregard for patient safety."
“Medical professionals taking thinly-veiled bribes to overprescribe opioids threaten the lives of patients for personal gain,” said Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “OIG, along with our law enforcement partners, will ensure that criminals like Clough pay the price for their actions.”
“Fentanyl is causing tremendous damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “Those who illegally distribute fentanyl will be held accountable through our court system. Today, Mr. Clough has been held accountable for his actions. The investigation and prosecution of illegal distribution of fentanyl is a top priority of the DEA.”
This matter was jointly investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the Drug Enforcement Administration’s Diversion Control Division. The case is being prosecuted by Assistant U.S. Attorneys Charles L. Rombeau and Seth R. Aframe.
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Former Narcotics Agent and Co-Conspirator Sentenced in Drug Proceeds Money Laundering CaseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Chief United States District Court Judge Christopher C. Conner sentenced Timothy B. Riley and John T. Oiler for their roles in a money laundering conspiracy involving $800,000 in drug proceeds following their separate guilty pleas.
According to United States Attorney David J. Freed, both Riley and Oiler pleaded guilty to a conspiracy to launder proceeds of a nation-wide drug trafficking organization. Riley, age 48 of Philadelphia, was sentenced to 36 months’ imprisonment followed by one year of supervised release, and to forfeit up to $800,000. Riley retired from his position as a Narcotics Agent with the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations shortly after his criminal conduct in this case began. Oiler, age 49 of Georgia, was sentenced to serve 30 months’ imprisonment followed by one year of supervised release and to forfeit up to $800,000. The third co-conspirator, Michael Sean Riley, pleaded guilty and is awaiting sentencing.
Michael Riley arranged with John T. Oiler to rent a storage unit in Baltimore and travel to Pennsylvania to take possession of more than $800,000 of cash drug proceeds Michael Riley skimmed from a larger load of cash. Oiler took the vast majority of those proceeds and stored them in the rented unit in Baltimore. Michael Riley then contacted his cousin, Timothy Riley, then a Narcotics Agent of the PA Attorney General’s Office Bureau of Narcotics Investigations Mobile Street Crimes Unit, and turned over the rest of the cash proceeds to him and other agents from the Mobile Street Crimes Unit. Michael Riley paid Timothy Riley three cash payments totaling $48,000 which Timothy Riley subsequently laundered. Oiler and Michael Riley each netted about $400,000 of the proceeds and each conducted numerous financial transactions with the cash drug proceeds.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation, with the full assistance of the Pennsylvania Office of Attorney General. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
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Former Delaware Physician Sentenced to 30 Months Imprisonment for Making A False Statement to A Financial InstitutionRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that on Friday, May 31, 2019, District Judge Richard G. Andrews sentenced Zahid Aslam, age 46, of Newark, Delaware, to a 30-month prison sentence for making a false statement to a financial institution. The Court also ordered Aslam to serve three years of supervised release following his sentence.
Aslam, a former physician with practices in Delaware, Maryland, and Pennsylvania, previously pleaded guilty in November 2018 to using third-party nominee borrowers to obtain loans on his behalf at two different financial institutions. These loans, which Aslam could not have otherwise qualified for on his own, fueled the growth of his medical practices. At the time of his guilty plea, Aslam and two of his health care entities entered into a separate $3,070,000 civil settlement to resolve health care fraud allegations. One of those entities also pleaded guilty to criminal health care fraud and paid a $100,000 fine.
As a result of his criminal conviction and the civil settlement, Aslam surrendered his medical licenses and has been barred from billing federal healthcare programs. As a non-citizen, Aslam is also subject to removal by immigration authorities.
U.S. Attorney Weiss stated the following, “The Court’s sentence is the culmination of the multi-year investigation and prosecution of former physician Zahid Aslam and his health care entities relating to bank fraud and health care fraud. My Office and our law enforcement partners previously announced a $3,070,000 settlement, as well as a separate corporate guilty plea, to resolve the health care fraud portion of the investigation in November 2018. Today’s sentencing concludes the bank fraud aspect of the investigation. Lying to banks regarding the actual person who is receiving loan proceeds is a serious offense. Here, Aslam acknowledged that he caused over $1,000,000 in losses relating to his fraudulent conduct. The 30-month sentence appropriately punishes Aslam for his offense and sends a strong message that committing bank fraud will result in a lengthy term of imprisonment. My Office remains steadfast in prosecuting criminal conduct that impacts the integrity of our financial system.”
"The FBI in Wilmington will vigorously investigate all forms of financial crimes and this sentence indicates those intent on corrupting our economy will be identified and brought to justice," said Jennifer L. Moore, Acting Special Agent in Charge of the FBI Baltimore Office. "Our job is to protect victims who don't see these crimes occurring, but who always end up paying the price."
“We are diligent in unraveling the fraudulent actions of those, such as Zahid Aslam, who scheme to defraud financial institutions,” said IRS-Criminal Investigation Special Agent in Charge Guy Ficco. “This sentence is a reminder that we will vigorously investigate and bring to justice those who engage in these illegal activities.”
“The exclusion of Dr. Aslam from all Federal healthcare programs demonstrates our commitment to hold bad actors accountable," said Maureen Dixon, Special Agent in Charge of the Philadelphia Regional Office for the Department of Health & Human Services Office of Inspector General. "We will continue to investigate and disrupt attempts to undermine healthcare programs.”
This case was prosecuted by Assistant U.S. Attorney Robert F. Kravetz and was investigated by FBI Baltimore Division’s Wilmington Office, the Department of Health and Human Services Office of Inspector General, and the Internal Revenue Service –Criminal Investigations Division. Those agencies also received investigative assistance from the State of Delaware Medicaid Fraud Control Unit, the State of Maryland Medicaid Fraud Control Unit, Federal Housing Finance Agency – Office of Inspector General, and the Special Inspector General of the Troubled Asset Relief Program.
Federal Indictment Charges Individuals with Long-Running Scheme to Help Applicants Fraudulently Obtain Massage Therapist LicensesRead the Press Release
DENVER – Two individuals who falsified education credentials and helped applicants cheat on tests to be massage license therapists were indicted by a federal grand jury and arrested, announced U.S. Attorney Jason Dunn and FBI Denver Special Agent in Charge Dean Phillips. Yongbo Shen, a/k/a Kevin Shen, age 48, originally of China and currently from Massachusetts, appeared in U.S. District Court in Colorado, and is due back on June 6, 2019, for arraignment. Marla Daniels, age 50, of Oklahoma City was arrested in Oklahoma City and appeared in federal court there where she was released on bond. She is scheduled to make her initial appearance in U.S. District Court in Colorado on June 17, 2019.
Both defendants have been charged with 36 counts of wire fraud and aiding and abetting along with 1 count of conspiracy to commit wire fraud. If convicted of wire fraud, each defendant could face up to 20 years in federal prison, and pay up to a $250,000 fine per count.
According to the indictment, between February 16, 2015 and March 3, 2018, defendants Shen and Daniels fraudulently obtained the Colorado state mandated certified test questions and answers. With the help of others, Shen then caused such materials to be translated from English to Chinese. Such packet essentially functioned as an unauthorized question and answer key -- a cheat sheet -- for the examination.
According to the indictment, as part of the scheme, Shen distributed the cheat sheet to multiple applicants in exchange for a fee. Applicants were seeking to pass the standardized test in an effort to obtain massage therapy licensure in Colorado, and at times other states. Cheat sheets allowed unqualified applicants to pass the test and provided applicants with an unfair competitive advantage over other persons taking the test.
As part of the scheme, Daniels and Shen also created and issued multiple bogus diplomas, which falsely certified that applicants graduated from the Majestic Massage Therapy school. Shen worked with Daniels to help create and falsify course transcripts that claimed the applicants completed required course work in massage therapy. Together, the false transcripts and bogus diplomas misrepresented that the applicants had successfully completed the requisite 500 hours of instruction and training from a massage therapy licensure program.
Shen submitted applications for massage therapy licenses to the State of Colorado Department of Regulatory Affairs on behalf of the applicants. In the course of submitting such applications, Shen falsely certified to the State that the information contained within the applications was true and correct, when in fact, Shen knew the applications contained false information regarding the applicants’ educational qualifications and satisfactory completion of examination requirements.
This case was investigated by the FBI Denver Division with substantial assistance from the FBI Kansas City Division, the FBI Oklahoma City Division, the Arvada Police Department, the Colorado State Patrol, the Wheat Ridge Police Department, Lakewood Police Department, Aurora Police Department and the Denver Police Department. The defendants are being prosecuted by Assistant U.S. Attorney Tim Neff.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Fayetteville Man Sentenced to 17 Years for Firearm and Drug ChargesRead the Press Release
RALEIGH - United States Attorney Robert J. Higdon, Jr. announces United States District Court Judge James C. Dever III sentenced RYAN DETRELL ROBINSON, 27, of Fayetteville, North Carolina, to 204 months imprisonment.
On January 10, 2018, ROBINSON was seen on video firing an assault weapon into the air during a dispute with another man outside of the Coliseum Inn, in Fayetteville, North Carolina. After the man attempted to run away, ROBINSON took chase in his vehicle and shot the man, resulting in serious injuries.
Almost two weeks later, on January 23, 2018, law enforcement attempted to pull over a car being driven by ROBINSON, who was inside the car with two other people. ROBINSON led the police on a high-speed chase, driving against traffic before wrecking the car. He then got out of the car and ran from the police before being caught. A firearm and cocaine were found in the car.
ROBINSON was charged twice for being a felon in possession of a firearm. He was also charged with possession with the intent to distribute cocaine, and possession of a firearm in furtherance of a drug trafficking crime. ROBINSON was originally facing a sentence of 57-71 months; however, the Court, on a motion of this Office, upwardly departed based on the use of a dangerous weapon and the physical injuries sustained as a result.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, and Firearms, Cumberland County Sheriff’s Office, and the Fayetteville Police Department. Assistant United States Attorney Donald R. Pender handled the prosecution of this case for the government.
East L.A. Gang Member Who Firebombed African-American Residences Sentenced to 13 Years in Federal PrisonRead the Press Release
A member of the Big Hazard street gang was sentenced today to 156 months in federal prison for orchestrating and executing the nighttime firebombing of African-American families at the Ramona Gardens Housing Development in Boyle Heights in 2014 in order to force the residents out of their homes.
Jose Saucedo, 25, aka “Lil’ Moe,” of Boyle Heights area of Los Angeles, was sentenced by United States District Judge Christina A. Snyder, who described the incident as ‘a terribly violent crime,’ because the attack targeted particularly vulnerable victims and because the defendant had a leadership role.
Saucedo pleaded guilty in May 2018 to four felonies: conspiracy to violate civil rights, violent crime in aid of racketeering, interference with the Fair Housing Act, and attempted arson of federal property.
“The defendant violently attacked families sleeping peacefully in their homes, because of their race,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will vigorously prosecute these acts of hate.”
“Racially motivated crimes are among the most disturbing offenses inflicted on a community,” said U.S. Attorney Nick Hanna. “Today’s sentence shows that criminals who are fueled by racial hatred – such as this defendant, who participated in a firebombing attack on innocent families while they slept – will face severe consequences.”
"Violating the civil rights of others by engaging in racial violence is antithetical to our values as Americans," said Paul Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The lengthy sentence handed down today for defendant Saucedo should send a strong message that targeting innocent people because of their skin color will not be tolerated and that offenders will spend a significant time behind bars."
On the evening of May 11, 2014, which was Mother’s Day, Saucedo and seven other members of the Big Hazard street gang agreed to firebomb several apartments in the Ramona Gardens complex because the residents were African Americans. Each defendant was given a specific role in the attacks and was provided with items to be used, including masks to conceal their identities and a hammer to break windows.
The defendant gang members smashed the windows of four apartments to allow for cleaner entry and maximum damage of the firebombs, and then threw lit Molotov cocktails into the residences. Three of the four targeted apartments were occupied by African-American families, including women and children, who were sleeping at the time of the unprovoked attack. One of the victims was a Hispanic resident of Ramona Gardens whom the group mistakenly targeted.
Saucedo played a primary role in the attacks, collecting glass bottles to be used as Molotov cocktails, supervising one of the two groups of co-conspirators, and throwing a firebomb into one of the targeted units. After the firebombing, Saucedo continued to intimidate Ramona Gardens residents because of their race, threatening one mixed-race family by referencing the firebombing as an example of what would happen to them if they did not move out of the housing complex.
All of the seven defendants who were charged in this case in 2016 have pleaded guilty to federal hate crime and related offenses. All of those defendants also admitted that they participated in the firebombings because of the victims’ race and color and with the intent to force the victims to move away from the federally funded housing complex.
The investigation into the firebombing was conducted by agents and detectives with the FBI; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section; Justice Department Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section; and Assistant United States Attorney MiRi Song of the General Crimes Section.
For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Dubois Felon Sentenced to Prison for Illegally Possessing Numerous FirearmsRead the Press Release
JOHNSTOWN, Pa. – A resident of DuBois, Pa. has been sentenced in federal court to three years and 10 months (46 months) in prison and three years’ supervised release on his conviction of unlawful possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Vincent L. Ruchlewicz, 58.
According to information presented to the court, on Mar. 1, 2018, Ruchlewicz was found in possession of numerous firearms. On Feb. 28, 2011, he had been convicted in the United States District Court for the Western District of Pennsylvania, of unlawful possession of a firearm by a convicted felon, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the United States Probation Office for the Western District of Pennsylvania and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation that led to the successful prosecution of Ruchlewicz.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
District Man Pleads Guilty to Second Degree Murder for Hit and Run Fatality in Downtown WashingtonRead the Press Release
WASHINGTON – Morris Harley, 37, of Washington, D.C., pled guilty to second degree murder on Friday stemming from a road rage incident where he struck and killed a pedestrian following a verbal altercation, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Harley pled guilty on May 31, 2019, in the Superior Court of the District of Columbia. The plea calls for a sentence of 15 years in prison. He will be sentenced by the Honorable Juliet McKenna on August 9, 2019.
According to a proffer of facts submitted at the plea hearing, the fatal hit and run took place at approximately 1:45 a.m. on Tuesday, February 5, 2019, at the intersection of 4th and T Streets NW. The victim, Daniel Olaya, was walking on the sidewalk of T Street with two others, when Harley, who was driving a Toyota RAV4, drove past and exchanged words with the group. Nearby surveillance video captured footage of a verbal altercation between Harley and Mr. Olaya after Harley stopped and got out of the idling vehicle on T Street. Harley can be heard threatening Mr. Olaya after Mr. Olaya took a cell phone photograph of the RAV4’s license plate on the video. As Mr. Olaya attempted to walk away, the video shows Harley get into the idling RAV4, and speeding toward Mr. Olaya, and striking him. The video also shows Harley speed away out of the camera’s view after turning onto 4th Street. MPD detectives later identified the striking vehicle from the photo of the license plate taken by Mr. Olaya. The vehicle was later located parked nearby at the residence of Harley’s girlfriend, bearing different license plates.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of the officers and detectives who investigated the case from both the Major Crash Investigations Unit and the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Investigative Analyst Zachary McMenamin; Forensic Examiner John Marsh; Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Marcy Rinker.
Finally, they commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
Delaware County Man Indicted on Multiple Child Exploitation ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that John C. Dellarocco, Jr., 24, of Holmes, Pennsylvania was indicted today on four counts of use of an interstate commerce facility to entice and attempt to entice a minor to engage in sexual conduct, seven counts of manufacture and attempted manufacture of child pornography, and one count of possession of child pornography.
These charges arise from an investigation into the defendant’s communications with at least eleven minor female children on an Internet-based application in which the defendant persuaded the girls to engage in sexual activity and sexually explicit conduct by photographing themselves engaging in that conduct and transmitting the images to the defendant via the Internet.
“Child exploitation is a pervasive problem – made more so by the accessibility of the Internet and digital media – that demands an aggressive response,” said U.S. Attorney McSwain. “The allegations in this case are particularly disturbing because of the number of children the defendant was able to target and communicate with on the Internet. We stand ready with our federal and local partners to identify and prosecute those who would prey upon minor children.”
“Child predators who produce child pornography are among the worst offenders. The FBI and our law enforcement partners work tirelessly to protect children from predators like Dellarocco. Today's Indictment sends the message that the FBI remains committed to pursuing justice for these young victims,” said FBI Special Agent-in-Charge Michael Harpster.
If convicted, the defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Delaware County District Attorney's Internet Crimes Against Children Taskforce, and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendant in College Admissions Case to Plead GuiltyRead the Press Release
BOSTON – A former head coach of women’s soccer at the University of Southern California will plead guilty in connection with the college admissions case.
Ali Khosroshahin, 49, of Fountain Valley, Calif., will plead guilty to conspiracy to commit racketeering. Khosroshahin is cooperating with the government’s investigation. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the Guidelines, one year of supervised release, a fine, restitution and forfeiture.
A plea hearing has not yet been scheduled by the Court.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man who was in a vehicle that led police officers in a pursuit was sentenced in federal court today for illegally possessing a firearm.
Justin Craig Ewing, 30, was sentenced by U.S. District judge Stephen R. Bough to four years and eight months in federal prison without parole.
On Feb. 5, 2019, Ewing pleaded guilty to being a felon in possession of a firearm. Ewing admitted that he was in possession of a loaded Browning .40-caliber handgun.
On Dec. 22, 2017, police officers attempted to stop a 2006 Chevy Impala driven by Jeremy Wade Gerlach, 36, of Harrisburg, Mo., in which Ewing was the passenger. Gerlach had absconded from supervision by the Missouri Board of Probation and Parole and had an active arrest warrant for his parole violation. When Gerlach stopped in the parking lot at the Days Inn Motel, 900 I-70 Drive Southwest, Columbia, Mo., officers pulled in behind the parked vehicle.
As officers approached the vehicle on foot, Gerlach and Ewing fled north in the vehicle through a grassy area next to the motel. As another patrol vehicle arrived from the east side of the motel, the Impala swerved left to go around them and crashed into an electric pole. An officer ran up to the vehicle and pointed his gun at the occupants. When the officer realized Gerlach was trying to put the vehicle in reverse, he ran back to his patrol vehicle and used it to pinch in the rear of the Impala to prevent escape and further jeopardy to officers.
When officers approached the vehicle, the driver’s side windows were up and the doors were locked. An officer used his baton to break the driver’s window, and officers pulled Gerlach out of the Impala through the broken driver’s side window. Other officers removed Ewing from the car and handcuffed him.
When officers removed Gerlach and Ewing from the vehicle, they saw the Browning handgun (which had been reported as stolen) lying on the floorboard where Ewing had been sitting. Ewing was wearing a shoulder handgun holster. Officers also found a loaded Rock Island Armory .45-caliber handgun wedged between the driver’s seat and center console.
In a search of the vehicle officers also found a glass water pipe and a travel bag that contained a digital scale with methamphetamine residue on it, three glass methamphetamine pipes, and a broken Alprazolam pill. Inside Ewing’s wallet, officers found pieces of paper that appeared to be drug ledgers.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ewing has four prior felony convictions for forgery and prior felony convictions for burglary, resisting arrest, possession of a controlled substance, distribution of a controlled substance, and unlawful use of a weapon.
Gerlach also pleaded guilty to being a felon in possession of a firearm. Gerlach was sentenced on April 9, 2019, to four years and nine months in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Cleveland one of 10 sites selected for National Public Safety Partnership initiative to combat violent crimeRead the Press Release
As the Department of Justice continues its efforts to fulfill President Donald J. Trump’s commitment to reducing violent crime in America, Attorney General William P. Barr today announced that Cleveland was selected to join the National Public Safety Partnership (PSP) initiative. PSP provides a framework for enhancing federal support of state, local and tribal law enforcement officials and prosecutors as they aggressively investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking and gang violence.
“The Public Safety Partnership is a successful program that directs federal law enforcement resources to the cities where they can have the greatest impact," Attorney General Barr said. "These resources help police departments to diagnose where crime is highest—and why—and to find, arrest and prosecute criminals. Several participating cities have already seen dramatic reductions in violent crime over the past two years. As we expand this program to 10 more cities across America, we are determined to replicate that success.”
The Justice Department created PSP and the Task Force on Crime Reduction and Public Safety in response to President Trump’s February 9, 2017, Executive Order charging the agency with leading a national effort to combat violent crime. In June 2017, the Department of Justice announced the formation of the National Public Safety Partnership initiative.
To be considered for selection, a site must have sustained levels of violence that far exceed the national average and demonstrate a commitment to reducing crime. Cities must also display compliance with federal immigration requirements.
The 10 sites announced today are as follows:
- Anniston, Alabama
- Oxford, Alabama
- Anchorage, Alaska
- Davenport, Iowa
- Wichita, Kansas
- Baton Rouge, Louisiana
- Baltimore, Maryland
- Cleveland, Ohio
- Amarillo, Texas
- Harris County, Texas
“This designation will provide the additional training and technical support to law enforcement in Cleveland as we work collaboratively to combat violent crime,” U.S. Attorney Justin Herdman said. “These resources will improve our collective ability to analyze crime trends and direct resources as needed, including enhancements to our current ongoing efforts focused on firearms, carjackings, armed robberies and other crimes of violence.”
More than 30 cities have participated in PSP. The primary participating Justice Department components include the Office of Justice Programs, Office on Violence Against Women, Office of Community Oriented Policing Services, Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, U.S. Drug Enforcement Administration and U.S. Marshals Service.
More information about PSP can be found at: https://bja.ojp.gov/program/national-public-safety-partnership/overview.
Cedar Rapids Felon Sentenced to More than 12 Years in Federal Prison after Possessing Stolen Firearms during Fiery High Speed Car Chase on Election Day in 2016Read the Press Release
A Cedar Rapids man who tried to run over a deputized federal officer three times and struck a canine officer was sentenced May 30, 2019, to more than 12 years in federal prison.
Kelsey Leroy Beckett, age 24, from Cedar Rapids, Iowa, received the prison term after a January 7, 2019 guilty plea to one count of possessing a firearm as a felon, one count of escape, and one count of assault with a dangerous and deadly weapon.
In November 2016, Beckett led law enforcement officers on a high-speed car chase through highly populated parts of Cedar Rapids and Hiawatha, Iowa. Beckett drove through the lawns of residences and the parking lot of a daycare center, and struck a skid loader and a parked car. The car Beckett was driving—not his own car—caught on fire in the process. During the fiery chase, Beckett totaled a United States Marshal’s Service (USMS) vehicle and tried three times to run over a USMS task force officer. The officer had his service firearm drawn and his badge displayed. Another officer was so afraid for the officer’s life that he was yelling at the officer to shoot Beckett.
After unsuccessfully attempting to run over the federal officer, Beckett then tried to flee on foot. A K-9 officer’s dog temporarily stopped Beckett, but Beckett struck the dog multiple times. The dog bit Beckett in self-defense. It was the first time the dog had to bite a suspect to preserve the dog’s own life.
Beckett had previously served 30 months in federal prison after possessing a firearm with an obliterated serial number in 2013. At the time he fled, Beckett was a fugitive from a residential reentry center, and he had two loaded, stolen firearms in his car. One of the firearms, a Glock .40 caliber pistol, was in plain view on the driver’s side floorboard of the car. It had an extended, 22-round Glock magazine that was full, including one round in the chamber.
Court documents show that Beckett has a long history of assaultive behavior. From as far back as 2009, Beckett beat up a female college student for no apparent reason—attacking her from behind and kicking her while she lay on the ground screaming for help. Just weeks later, Beckett struck a shelter staff member in the head several times with his elbow and put her in a head lock. In 2012, Beckett was convicted of assault causing bodily injury after he fought with loss prevention officers in the course of stealing items from a department store. Beckett also has a history of unlawfully possessing firearms. In 2013, Beckett was convicted in federal court for possessing a firearm with an obliterated serial number. After Beckett was released from federal prison in 2015, he had his supervised release revoked twice, including for the November 2016 incident.
Beckett was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Beckett was sentenced to 151 months’ imprisonment. He was ordered to make over $8,000 in restitution to the USMS, because he totaled a USMS vehicle in the chase. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Beckett’s 151‑month sentence follows a 24‑month sentence he began serving in 2016 for violating his supervised release in his 2013 federal firearms case. Earlier this month, a local woman, Saudia Raquel Watkins, who provided Beckett a car ride and smoked marijuana with him while he was on the lam, was sentenced to 3 months’ imprisonment after pleading guilty to one count of misprision of a felony.
Beckett is being held in the United States Marshal’s custody until he can be transported back to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-94.
Follow us on Twitter @USAO_NDIA.
California Woman Sentenced for Delivering Methamphetamine on Behalf of Drug Trafficking OrganizationRead the Press Release
United States Attorney Joseph P. Kelly announced that on June 3, 2019, Senior United States District Judge Laurie Smith Camp sentenced Jessica Medina, of California, to a 70 month term of imprisonment, to be served in the U.S. Bureau of Prisons. Medina pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine. During the first few months of 2018, Medina conspired with others to distribute methamphetamine throughout the Omaha/Council Bluffs metropolitan area. Medina functioned as a courier for the organization and delivered methamphetamine to customers on behalf of Jasive Zamora-Carrillo, of Council Bluffs, Iowa. On February 25, 2019, Zamora-Carrillo was sentenced to 168 months imprisonment. Six additional defendants in the case have already been sentenced. Medina’s term of imprisonment will be followed by a three year term of supervised release.
The case was primarily investigated by the Drug Enforcement Administration – Omaha Field Division, the Omaha Police Department, and the Southwest Iowa Narcotics Task Force.
California Man Pleads Guilty to Iowa Meth and Gun ChargesRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed a gun pled guilty June 3, 2019, in federal court in Sioux City.
Robinson Nguyen, 38, from Selma, California, was convicted of one count of conspiring to distribute methamphetamine; one count of possessing with intent to distribute methamphetamine; and one count of illegally possessing a firearm. Nguyen was previously convicted of at least four felony offenses in California, ranging from thefts to possession of a controlled substance to possession of ammunition by a prohibited person.
At the plea hearing, Nguyen admitted that from about September 2017 through July 2018, he was involved in a conspiracy that distributed over a pound of methamphetamine. Evidence at the hearing showed that Nguyen arranged for co-conspirator Jocelyn Mendoza to travel by bus from Fresno, California to Sioux City, Iowa with approximately ¼ pound of methamphetamine hidden inside a neck rest. Nguyen and others in the conspiracy intended to distribute this methamphetamine. Law enforcement later seized a 9mm pistol from a search of the house where Nguyen resided. Nguyen admitted he possessed the gun for protection from robbery.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Nguyen remains in custody of the United States Marshal pending sentencing. Nguyen faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and four years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4089. Follow us on Twitter @USAO_NDIA.
Business Owner Pleads Guilty to Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – An Olathe, Kan., man who conspired with others to control construction businesses that received hundreds of millions of dollars in federal government contracts, pleaded guilty in federal court today to defrauding the government with respect to contracts set aside for service-disabled veterans and certified minorities.
Matthew C. McPherson, 43, waived his right to indictment by a grand jury and pleaded guilty before U.S. District Judge Roseann Ketchmark to an information that charges him with one count of conspiracy to commit wire fraud and major program fraud.
By pleading guilty today, McPherson admitted that he participated in a conspiracy from September 2009 to March 2018 to obtain contracts set aside by the federal government for award to small businesses owned and controlled by veterans, service-disabled veterans, and certified minorities. McPherson, who is neither a certified minority nor a veteran, was the owner of an established construction company in Topeka, Kan. (identified in court documents as Business C) that was not entitled to compete for those federal contracts.
McPherson and his co-conspirators controlled and operated Zieson Construction Company. The business was formed on July 9, 2009, with Stephon Ziegler – an African-American service-disabled veteran – as the nominal owner. Zieson’s primary business was obtaining federal construction contracts set aside for award to small businesses owned and controlled by service-disabled veterans or certified minorities. However, Ziegler did not control the day-to-day operations or the long-term decision making of Zieson. McPherson and his co-conspirators actually controlled and operated Zieson, and received most of the profits from Zieson through the respective business entities.
Between 2009 and 2018, Zieson was awarded approximately 199 federal contracts set aside for award to small businesses, minority-owned small businesses, and veteran-owned small businesses for which the government paid Zieson approximately $335 million. McPherson and his co-conspirators, through their business entities, received approximately $4,183,920 each from Zieson by using false and fraudulent invoices.
Ziegler pleaded guilty on May 21, 2019, to making a false statement to the U.S. Department of Veteran Affairs.
In 2014, when Zieson was growing too large to compete for small business contracts, McPherson and his co-conspirators used the minority status of another Zieson employee to set up Simcon Corp as a small business in the state of Missouri. Simcon’s business, like Zieson’s, was to obtain federal construction contracts set aside for award to qualified small businesses. In reality, McPherson and his co-conspirators managed and controlled Simcon. Simcon was awarded a $4,423,638 contract in July 2016 from the U.S. Air Force and a $6,911,404 contract in September 2016 from the U.S. Army.
Zieson and Simcon used the same employees and shared office space and equipment. Zieson and Simcon were located in a building owned by an LLC that was controlled by McPherson and his co-conspirators. Zieson purported to subcontract work to Simcon (which Simcon did not actually perform) to establish alleged past performance and profitability. This allowed Simcon to claim experience and financial strength to successfully compete for federal set-aside contracts.
McPherson and his co-conspirators each received approximately $319,866 from Simcon using false and fraudulent invoices.
McPherson also caused Business C to submit false and fraudulent invoices to Zieson in order to hide and receive profits from the scheme.
As a result of McPherson’s participation in the conspiracy, Business C obtained approximately $5,516,786 in fraud proceeds. Under the terms of today’s plea agreement, McPherson must forfeit those fraud proceeds to the government.
Under federal statutes, McPherson is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Stacey Perkins Rock and Paul S. Becker. It was investigated by the Department of Veterans Affairs, Office of Inspector General; the Department of Defense Criminal Investigative Service; the U.S. General Services Administration, Office of Inspector General; the U.S. Small Business Administration, Office of Inspector General; the Army Criminal Investigation Command, Major Procurement Fraud Unit; the Department of Agriculture, Office of Inspector General; IRS-Criminal Investigation; the U.S. Secret Service; the Air Force Office of Special Investigations, Procurement Fraud; the Naval Criminal Investigative Service; the Defense Contract Audit Agency - Operations Investigative Support (OIS); the U.S. Department of Labor, Office of Inspector General; and the Department of Labor, Employee Benefits Security Administration (EBSA).
Bridgeport Man Sentenced to More Than 3 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TIMOTHY STATON, 24, of Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegal gun possession.
According to court documents and statements made in court, on September 13, 2018, Staton fled from Bridgeport Police officers outside of his Bridgeport residence. During the pursuit, Staton removed a loaded Glock 43 9mm handgun from his waistband and threw it to the ground. Officers apprehended Staton and retrieved the firearm.
In 2010, Staton was convicted in state court of a felony robbery offense. In 2014, he was convicted in state court of narcotics, firearm and racketeering offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Staton has been detained since his arrest. On February 25, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
This prosecution 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 neighborhoods safer for everyone.
Boyle Heights Gang Member Who Firebombed African American Residences Sentenced to 13 Years in Federal PrisonRead the Press Release
LOS ANGELES – A member of the Big Hazard street gang was sentenced today to 156 months in federal prison for orchestrating and executing the nighttime firebombing of African-American families at the Ramona Gardens Housing Development in Boyle Heights in 2014 in order to force the residents out of their homes.
Jose Saucedo, 25, a.k.a. “Lil’ Moe,” of the Boyle Heights neighborhood of the City of Los Angeles, was sentenced by United States District Judge Christina A. Snyder, who described the incident as “a terribly violent crime” because the attack targeted particularly vulnerable victims and because the defendant had a leadership role.
Saucedo pleaded guilty in May 2018 to four felonies: conspiracy to violate civil rights, violent crime in aid of racketeering, interference with the Fair Housing Act, and attempted arson of federal property.
“Racially motivated crimes are among the most disturbing offenses inflicted on a community,” said United States Attorney Nick Hanna. “Today’s sentence shows that criminals who are fueled by racial hatred – such as this defendant, who participated in a firebombing attack on innocent families while they slept – will face severe consequences.”
“The defendant violently attacked families sleeping peacefully in their homes, because of their race,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will vigorously prosecute these acts of hate.”
“Violating the civil rights of others by engaging in racial violence is antithetical to our values as Americans,” said Paul Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The lengthy sentence handed down today for Jose Saucedo should send a strong message that targeting innocent people because of their skin color will not be tolerated and that offenders will spend a significant time behind bars.”
On the evening of May 11, 2014, which was Mother’s Day, Saucedo and seven other members of the Big Hazard street gang agreed to firebomb several apartments in the Ramona Gardens complex because the residents were African Americans who lived there. Each defendant was given a specific role in the attacks and was provided with items to be used, including masks to conceal their identities and a hammer to break windows.
Once the gang members located their targets, they smashed the windows of four apartments to allow for cleaner entry of the firebombs to maximize damage and threw lit Molotov cocktails into the residences. Three of the four targeted apartments were occupied by African-American families, including women and children, who were sleeping at the time of the unprovoked attack. One of the victims was a Hispanic resident of Ramona Gardens whom the group mistakenly targeted.
Saucedo played a primary role in the attacks, collecting glass bottles to be used as Molotov cocktails, supervising one of the two groups of co-conspirators, and throwing a firebomb into one of the targeted units. After the firebombing, Saucedo continued to intimidate Ramona Gardens residents because of their race, threatening one mixed-race family by referencing the firebombing as an example of what would happen to them if they did not move out of the housing complex.
All seven of the defendants who were charged in this case in 2016 have pleaded guilty to federal hate crime and related offenses. All of those defendants also admitted that they participated in the firebombings because of the victims’ race and color and with the intent to force the victims to move away from the federally funded housing complex. Saucedo, who was given four years credit for time served on a related offense, is the first defendant in this case to be sentenced. The other defendants will be sentenced at later dates.
The investigation into the firebombing was conducted by agents and detectives with the Federal Bureau of Investigation; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section; Justice Department Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section; and Assistant United States Attorney MiRi Song of the General Crimes Section.
Bookkeeper Charged in Nine Count Indictment for Wire FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that LATANYA A. BRITTON, age 41, resident of LaPlace, Louisiana, was indicted on Thursday, May 30, 2019, by a federal grand jury for nine (9) counts of Wire Fraud. BRITTON was arrested by members of the United States Secret Service. She appeared in U.S. Magistrate Court on Monday, June 3, 2019, and was released on a $50,000 bond.
According to the indictment, on January 22, 2018, BRITTON was hired as a bookkeeper in the client accounting services department at Accounting Firm A. Accounting Firm A was located in New Orleans, Louisiana and provided client accounting services to local businesses and individuals. Client B, a restaurant located in the New Orleans French Quarter, was a small business client of Accounting Firm A. BRITTON became the bookkeeper for Client B and was entrusted with the daily accounting and bill paying for Client B’s account. Accounting Firm A utilized a cloud-based accounting software called Restaurant 365 to manage the account for Client B. Restaurant 365 allowed BRITTON authorized access to Client B’s bank account. BRITTON’s position allowed her to issue checks to Client B’s vendors that contained an electronic signature of the managing shareholder of Client B.
On August 16, 2018, BRITTON established an entity named Lagniappe Accounting Services, L.L.C. (“Lagniappe”). Navy Federal Credit Union (“NFCU”) was a domestic financial banking institution headquartered in Vienna, Virginia. All check images received by NFCU either from a NFCU branch, ATM, e-deposit, or other channel, were transmitted to computer servers located in Vienna, Virginia. On August 24, 2018, BRITTON opened bank account No. ******2479 with NFCU under the name Lagniappe.
BRITTON devised and implemented a scheme to defraud Client B by embezzling approximately $32,000 from Client B’s bank account. BRITTON accessed Restaurant 365 software to delete approximately 31 check entries payable to Lagniappe that she fraudulently issued from Client B’s account. BRITTON opened an account with NFCU in the name Lagniappe in order to deposit funds she embezzled from Client B. BRITTON used her NFCU Lagniappe account debit card to pay for personal expenses at retailers such as Bed Bath & Beyond, Dillard’s, JCPenney’s, Old Navy, DSW, and at various nail spas. It was further part of the scheme and artifice to defraud, and in an effort to conceal her conduct, that on or about December 30, 2018, BRITTON made false statements in an email to Client B’s managing shareholder after he contacted BRITTON regarding a suspicious check written to Lagniappe. BRITTON was terminated from Accounting Firm A on January 3, 2019.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, BRITTON faces a maximum penalty of twenty (20) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine per count.
U.S. Attorney Peter G. Strasser praised the work of the United States Secret Service. The prosecution of the case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Berkeley County man sentenced for filing false tax returnRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jay D. Dehaven, of Hedgesville, West Virginia, was sentenced today to five years probation for filing a false tax return, United States Attorney Bill Powell announced.
Dehaven, age 39, pled guilty to one count of “Filing False Income Tax Return” in January 2019. Dehaven admitted to understating his income by more than $136,000, resulting in an unpaid tax of more than $50,000. The crime took place in October 2016 in Berkeley County.Dehaven was ordered to pay a $10,000 fine and $99,640 in restitution.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Internal Revenue Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Baltimore man sentenced for drug distribution and having shank in prisonRead the Press Release
MARTINSBURG, WEST VIRGINIA – Samuel Hogans, of Baltimore, Maryland, was sentenced today to 151 months incarceration for drug distribution and having a weapon, or shank, in prison, United States Attorney Bill Powell announced.
Hogans, also known as Richard Hogans, also known as “Lex,” age 38, was sentenced to 60 months incarceration for having a weapon in prison. He was found guilty by a jury of one count of “Possessing Contraband in Prison” in December 2018. Hogans, an inmate at the Eastern Regional Jail in Berkeley County where he was being held on another federal charge, had a shank in August 2018.
Hogans was also sentenced to 151 months, to be served concurrently with the 60-month sentence, for drug distribution. Hogans pled guilty to one count of “Aiding and Abetting Distribution of Heroin” in December 2018. Hogans admitted to distributing heroin in October 2017 in Berkeley County.
Assistant U.S. Attorney Jeffrey Finucane prosecuted the case on behalf of the government. The United States Marshal Service and the West Virginia Division of Corrections investigated.
Chief U.S. District Judge Gina M. Groh presided.
Saturday 1 June 2019
Former Enid Tax Preparer Pleads Guilty to Assisting in Filing a False Tax ReturnRead the Press Release
OKLAHOMA CITY – TIMOTHY ALONZO EVANS, of Gulfport, Mississippi, has pleaded guilty to a one-count information charging him with assisting in the preparation and presentation to the Internal Revenue Service of a false tax return, announced First Assistant U.S. Attorney Robert J. Troester.
According to federal charges filed on April 9, 2019, Evans assisted a taxpayer in submitting a Form 1040 Individual Tax Return that materially misstated the taxpayer’s alleged business losses for the 2014 tax year.
Evans pleaded guilty on May 29, 2019. At the May 29 hearing, Evans admitted he operated a tax preparation business in Enid, Oklahoma, called House of Tax Smart and filed returns in 2014 and 2015 for the 2013 and 2014 tax years. According to plea documents, Evans has agreed to pay restitution to the IRS of $82,227, plus statutory interest.
Sentencing, which will take place in approximately 90 days, will take into account the full scope of Evans’s tax fraud. He faces a sentence of up to three years in prison and a fine of up to $100,000.
These charges are the result of an investigation by the Internal Revenue Service–Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney William E. Farrior.
Reference is made to court filings for further information.
Friday 31 May 2019
Wilmington Man Sentenced for Receipt of Child Pornography After Conviction in Federal CourtRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge James C. Dever III sentenced RICARDO JEROME BENNETT, SR., 48, of Wilmington, North Carolina to 216 months’ imprisonment, followed by 10 years of supervised released. He was also ordered to pay restitution in the amount of $10,000.00.
On November 28, 2018, in federal court, BENNETT was found guilty of two counts of receipt of child pornography and one count of possession of child pornography containing minors under the age of 12 following a three day trial.
In August 2014, the Federal Bureau of Investigation utilized undercover software to identify an IP address downloading child pornography and offering such files for download by others. A search warrant was issued for the home address associated with the IP address. During that search, law enforcement confiscated multiple electronic devices belonging to BENNETT. In addition, BENNETT made a full confession to law enforcement to downloading and possessing child pornography. A forensic examination of those devices revealed more than 1000 files of child pornography, downloaded in the same manner that BENNETT described in his interview. These files included both still images and videos depicting minors, including minors under the age of 12, engaged in sexually explicit activity.
Mr. Higdon commented: “We are very pleased with the decision of the court to hold the defendant accountable for his abuse of children through the collection of child pornography. Every time he downloaded one of the more than 1,000 images he victimized the vulnerable child depicted in those images. His is a crime impacting the most precious and vulnerable among us: our children.”
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
The Federal Bureau of Investigations conducted the criminal investigation of this case. Assistant United States Attorney Melissa Belle Kessler handled the prosecution of this case for the United States.
Violent fleeing felon with firearm sentenced to prisonRead the Press Release
SAVANNAH, GA: A Savannah man will spend nearly four years in federal prison on a firearms possession charge that started with his attempt to outrun police.
Elisha Gadson, 26, of Savannah, pled guilty in U.S. District Court to Possession of a Firearm by a Convicted Felon and was sentenced to 46 months in federal prison, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. There is no parole in the federal system.
According to statements made in court and in court filings, Port Wentworth Police Department officers attempted to stop Gadson for a minor traffic violation when he made an illegal U-turn and sped away, endangering others by racing up to 100 mph in a 35 mph zone. Once Gadson was apprehended, Port Wentworth officers recovered a Glock 19 9mm with a fully loaded magazine under the driver’s seat of Gadson’s vehicle and another loaded 9mm magazine in the trunk. Because of prior felony convictions, including a conviction involving violence, Gadson is prohibited from possessing a firearm or ammunition.
“The joyride for this defendant is over, and his next stop will be federal prison,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We commend the Port Wentworth Police Department for their diligence and for successfully removing yet another firearm from the hands of a convicted felon.”
“This case involves an illegally possessed firearm in the hands of a criminal,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “It demonstrate the cooperation that exists between the Port Wentworth Police Department and ATF.”
This case was investigated by the Port Wentworth Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted for the United States by Assistant U.S. Attorney Joshua Bearden.
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United States Attorney Scott W. Murray Honors Law Enforcement Personnel for Excellence in the Pursuit of JusticeRead the Press Release
CONCORD – United States Attorney Scott W. Murray recognized 26 officials from federal, state, and local law enforcement agencies for Excellence in the Pursuit of Justice at an awards ceremony today.
“I am pleased to recognize these law enforcement professionals who have demonstrated a commitment to maintaining public safety through the pursuit of justice,” said U.S. Attorney Murray. “Each day, our law enforcement colleagues do tremendous work to protect our community from violent crime, drug trafficking, sexual predators, and many other dangers. These brave law enforcement officers are our first line of defense against crime and they deserve our recognition and respect. I salute all of our award recipients and am grateful for their contributions.”
The event, held at the U.S. District Court in Concord, highlighted investigative teams who worked together on several important investigations, and also honored several individuals for their contributions on multiple cases or special projects. Those honored worked on a variety of matters, including cases involving drug trafficking, violent crime, fraud, and the sexual exploitation of children.
Each honoree was recognized for his or her commitment to Excellence in the Pursuit of Justice and was presented with a commemorative plaque and certificate.
Recognized individuals were:
Special Agent Philip Bleezarde, DHS/ICE
Special Agent Thomas M. Dalton, FBI
Supervisory Special Agent Michael Gibeley, FBI
Special Agent Steven Kimball, FBI
Special Agent Brian P. LeBlanc, FBI
Supervisory Special Agent Philip Christiana, FBI
Norman "Chip" Houle, Criminal Investigator, New Hampshire Attorney General’s Office
U.S. Postal Inspector Bruce Sweet, Postal Inspection Service
Intelligence Analyst Laura Houle Tongbua, DEA
Special Agent David Furtado, FDA-OCI
Detective Matthew Barter, Manchester Police Department
Special Agent Jonathan Posthumus, DHS/HSI
Special Agent Erol Catalan, DHS/HSI
Special Agent Joseph "Lance" Lopez, DHS/HSI
Louisiana State Trooper Georgiana Kibodeaux
Detective Joseph L. Chaput, Concord Police Department
Detective Sergeant Eric Albright, Vermont State Police
Corporal Michael Sorensen, Vermont State Police
Special Agent Shawn Serra, DHS/HSI
Special Agent Ronald M. Morin, DHS/HSI
Det. Scott Tompkins, Derry Police Department
Trooper Sean Sweeney, New Hampshire State Police
Protective Security Advisor Jason Climer, DHS/CISA
Special Agent Casey MacDonald, DEA
Detective Patrick Broderick, Hudson Police Department
Intelligence Analyst Michelle Blais, DEA
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United States Attorney Minkler launches USAO distinguished speaker panel seriesRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler is pleased to announce the creation of the USAO Distinguished Speaker Panel Series, an internal U.S. Department of Justice initiative intended to promote and curate continued leadership development and relationships on behalf of current and former USAO-SDIN staff.
The first panel event will take place on June 4, 2019, at the United States Attorney’s Office located at 10 West Market Street Indianapolis, Indiana at noon on the 20th floor, and will feature Joseph Hogsett, former United States Attorney and current Mayor of the City of Indianapolis. The series is a continuation of the United States Attorney’s dogged determination to continue promoting the mind and spirit of Justice Department servants.
“I am proud to launch this Series by welcoming a visionary leader whose reach and abilities far exceed his time with the Justice Department,” said Minkler. “Our current and former members of staff will be delighted to welcome him back to our hallowed halls and are encouraged by his continued support and friendship.”
The USAO Distinguished Speaker Panel Series will afford opportunities for Justice Department employees, both current and former, to engage in lively discussions with civic-minded leaders representative of government, private industry, and the not-for-profit community. All USAO-SDIN Alumni are welcome and encouraged to attend.
Honorable Mayor Joe Hogsett
Former United States Attorney
U.S. Citizen Extradited from Brazil to Face Wire Fraud ChargesRead the Press Release
BOSTON – A U.S. citizen appeared today in federal court in Boston after being extradited from Brazil in connection with a $2 million wire fraud scheme.
Christopher Morris, 48, formerly of Lowell and Chelsea, was extradited from Brazil and arrived in Boston yesterday. Morris was detained following an initial appearance today before U.S. Magistrate Judge M. Page Kelley. In November 2014, Morris was indicted on four counts of wire fraud and 12 counts of unlawful monetary transactions. Since 2013, Morris had been living in Uruguay and Brazil.
The indictment alleges that Morris, an accounting professional, participated in a wire fraud scheme targeting his employer, PBS Distribution (PBSd), a media distribution business with operations in Allston and elsewhere. Morris’ position gave him access to U.S. mail addressed to PBSd’s accounting department, including checks payable to PBSd. According to the indictment, beginning as early as January 2008 and continuing through September 2012, Morris took more than $2 million in checks under the guise of depositing them into PBSd’s bank accounts, but he instead endorsed them to himself and deposited them into a personal bank account. Morris allegedly used his access to PBSd’s accounting system to conceal the theft by, among other steps, fraudulently causing credits to be issued to the accounts of customers whose checks he stole, and by causing PBSd’s general ledger to be altered to show that the same customers had made payments. It is further alleged that Morris spent the proceeds of the scheme on a lavish lifestyle that included year-long apartment rentals in New York City’s Greenwich Village and Tribeca neighborhoods; the down payment, purchase and upkeep of a waterfront condominium in Chelsea; and luxury clothing, dining and travel, including a $16,000 two-week South American cruise.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 on each count. The government expects to move to dismiss the charges of unlawful monetary transactions under the Rule of Specialty, a doctrine of international law that permits prosecution upon extradition only as to charges authorized by the extraditing nation. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; U.S. Marshal John Gibbons for the District of Massachusetts; and Boston Police Commissioner William Gross made the announcement today. The U.S. Department of Justice’s Office of International Affairs provided assistance in securing Morris’ extradition to the United States. The U.S. Attorney’s Office acknowledges Brazilian authorities for their cooperation in this matter. Assistant U.S. Attorney Seth B. Kosto, of Lelling’s Cybercrime Unit, is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Nicaragua Men Sentenced for Illegal Reentry After DeportationRead the Press Release
United States Attorney Ron Parsons announced that two men from Nicaragua charged with Illegal Reentry After Deportation pled guilty and were sentenced on May 28, 2019, by U.S. District Judge Karen E. Schreier.
Elvin Evelio Davila-Marin, age 30, was sentenced to time served (193 days), and $100 to the Federal Crime Victims Fund.
Wilson Uriel Davila-Marin, age 27, was sentenced to time served (193 days), and $100 to the Federal Crime Victims Fund.
The convictions stem from an incident that took place on or about October 10, 2018, when both brothers came into contact with law enforcement in the District of South Dakota. They had both been previously deported from the United States on June 22, 2018, at Alexandria, Louisiana. They both entered the United States illegally and had not obtained the consent of the Secretary of the U.S. Department of Homeland Security or the Attorney General of the United States to apply for lawful admission into the United States.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Jeffrey C. Clapper.
Elvin Davila-Marin and Wilson Davila-Marin were remanded to the custody of the U.S. Marshals Service.
Two Felons Get Max Sentence for Illegal Possession of Firearms During Home Invasion Style Armed RobberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that two Anchorage men have each been sentenced to serve 10 years in federal prison for illegally possessing firearms during a 2017 home invasion style armed robbery.
Manee Mulifai, 24, of Anchorage, was sentenced on Wednesday by Chief U.S. District Judge Timothy Burgess to serve 10 years in federal prison, after having pleaded guilty to being a felon in possession of a firearm. His co-defendant, Matthew Adrian Colding, aka “Money,” 24, of Anchorage, was previously sentenced to serve 10 years in federal prison after pleading guilty to the same charge.
According to court documents, on April 21, 2017, the Alaska State Troopers received reports of shots fired at a Wasilla residence. The three occupants of the house (B.W., J.H., and F.A.) reported that an unknown female came to the door asking for help with a broken down car. Shortly thereafter, Colding kicked in the door armed with a handgun. Once inside, Colding asked for his “shit” and his money. Colding then started to pistol whip B.W. and told J.H. to sit down or he would be killed. F.A. ran out of the house but was chased down by both Colding and Mulifai.
The robbery then led to a shootout between the two defendants, and the victims inside the residence. Colding was shot several times and collapsed in the front yard. Mulifai returned fire through the front window of the house before he fled the scene. Prior to law enforcement arriving, Colding crawled to a nearby planter where he attempted to hide his firearm. The investigation revealed that Colding fired four rounds, Mulifai fired 10 rounds, and B.W. fired 10 rounds. During the robbery, a safe and two firearms were stolen from the home. Mulifai was found with the two stolen firearms five days later during a visit to his state probation officer.
The investigation further revealed that Mulifai and Colding are associated with the “Fight Squad” street gang. Mulifai has a previous felony conviction for Burglary in the Second Degree, and Colding has a previous felony conviction for Conspiracy to Commit Robbery in the First Degree. Because of their felony convictions, Mulifai and Colding were both prohibited from possessing firearms.
The Alaska State Troopers (AST), the Federal Bureau of Investigation (FBI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney William A. Taylor.
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.
Two Chicago Women Held Accountable for Falsely Billing 24-7 for Seven Years in $1.7 Million Workers’ Compensation FraudRead the Press Release
Two Chicago, Illinois, women pleaded guilty for their roles in a scheme to defraud the U.S. Department of Labor Office of Workers’ Compensation Programs (OWCP) of $1.7 million by falsely billing for services on a 24-hour, seven-day-a-week basis for over seven years.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. of the Northern District of Illinois, Special Agent in Charge Andre M. Martin of the U.S. Postal Service Office of Inspector General (Postal-OIG), Acting Special Agent in Charge Irene Lindow of the U.S. Department of Labor Office of Inspector General (DOL-OIG) and Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office made the announcement.
Ella Garner, 62, pleaded guilty yesterday to one count of conspiracy to commit health care fraud before U.S. District Judge Elaine Bucklu of the Northern District of Illinois. On May 24, 2019, Chante Carrothers, 40, pleaded guilty to one count of conspiracy to commit health care fraud for her role in the conspiracy. Sentencing for Carrothers has been scheduled for August 16 and for Garner on September 6, both before Judge Bucklu.
As part of their guilty pleas, Carrothers and Garner each admitted that from June 2010 through April 2018, they conspired to defraud OWCP by falsely billing for 24-7 services purportedly provided by Garner to a single person in the home. Garner was not, in fact, providing constant care, the defendants admitted. OWCP paid Carrothers approximately $1.7 million for the bills she submitted for a single patient, purportedly under Garner’s care. Carrothers paid Garner approximately $4,500 per month for her role in the conspiracy, the defendants admitted.
This case was investigated by Postal OIG, DOL-OIG and the FBI. Trial Attorneys Leslie S. Garthwaite and Patrick Mott of the Criminal Division’s Fraud Section are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Two Bergen County Men Admit Roles in Fraud SchemeRead the Press Release
NEWARK, N.J. – Two Bergen County, New Jersey, men have admitted their respective roles in a scheme to defraud financial institutions and others, U.S. Attorney Craig Carpenito announced today.
Steve Young Kang, a/k/a “Steven Young Kang” and “Young Tae Kang,” 64, of Ridgefield, New Jersey, and Young Jin Son, a/k/a “Joshua Son,” 49, of Norwood, New Jersey, pleaded guilty on May 30, 2019, before U.S. District Judge William J. Martini in Newark federal court to separate informations charging each defendant with one count of bank fraud and one count of wire fraud.
According to documents filed in these cases and statements made in court:
Kang, Son and others fraudulently induced mortgage lenders to participate in “short sale” transactions. In a typical short sale transactions, a financial institution agrees to allow a house owner in financial distress to sell his or her home for less than they owe on their mortgages. Such transactions are called short sales because the market value of the house is less than the amount owed by the house owner and the lender agrees to accept a payment “short” of the amount owed by the house owner.
Kang, a real estate broker and agent, admitted to a scheme in which, from June 2013 to January 2017, he sold his own properties and recruited others to sell properties in short sales to a co-schemer, Mehdi Kassai, who was able to obtain the properties for substantially less than the properties were actually worth through false documents, straw buyers, cosmetic damage to properties, and restricting the ability of others to bid on and buy those properties. Kassai then sold many of those properties to third-parties at a substantial profit. Kang defrauded financial institutions and others of $2.7 million in this manner.
Son, a real estate broker and agent, admitted recruiting others to sell properties in short sales to Kassai, who obtained the properties for substantially less than they were actually worth through false documents, straw buyers, cosmetic damage to properties, and restricting the ability of others to bid and buy those properties. Kassai sold many of those properties to third-parties at a substantial profit. Son defrauded financial institutions and others of $1.9 million in this manner.
The bank fraud and wire fraud charges each carry a maximum potential statutory penalties of 30 years in prison and a $1 million fine. Kang and Son have both agreed to forfeit the proceeds of the scheme. Sentencing for both defendants is scheduled for Oct. 1, 2019. Kassai previously pleaded guilty to his role in the scheme and is awaiting sentencing.
U.S. Attorney Carpenito credited the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge, Robert Manchak; and special agents of the U.S. Department of Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the guilty pleas.
The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare & Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey, and Special Assistant U.S. Attorneys Charlie Divine and Kevin Di Gregory of the Federal Housing Finance Agency, Office of Inspector General.
South Korean Nationals Indicted on Charges They Poached Wild Succulent Plants for Illegal Exportation to AsiaRead the Press Release
LOS ANGELES – Three South Korean nationals were charged today in a federal grand jury indictment with attempting to illegally export to Asia more than $600,000 in live Dudleya succulent plants that they had pulled out of the ground at remote state parks in Northern California.
The two-count indictment charges each of the following defendants with conspiracy to knowingly export plants from the United States that had been taken in violation of California law, and attempting to export plants taken in violation of state law:
- Byungsu Kim, 44, who operates a nursery in Vista and is a fugitive;
- Youngin Back, 45, who also is a fugitive; and
- Bong Jun Kim, 44, who is in federal custody.
According to the indictment, the defendants arrived at Los Angeles International Airport from their native South Korea in October 2018 to harvest wild Dudleya plants from coastal habitats in Northern California and ship them back to South Korea. Native Dudleya plants from coastal habitats in Northern California are particularly valuable in Asia due to their unique physical features, including the color and shape of their leaves. Because growing the plants in nurseries takes years, smugglers are known to harvest wild, living Dudleya plants from the ground in Northern California and export the live plants to Asia, where they are sold on the black market.
Upon his October 2018 arrival in Los Angeles via a one-way ticket from South Korea, Byungsu Kim displayed records stating that his nursery had shipped 5,731 Dudleya plants (501 pounds) to South Korea on or about September 12, 2018, and that the purported “place of origin” of the plants was San Diego County. Since 2009, Byungsu Kim had traveled to the United States from South Korea more than 50 times, and in 2013 had 80 plants seized by U.S. Customs and Border Protection.
After their October 2018 arrival in Los Angeles, the trio allegedly drove to various state parks where Dudleya plants grow, including DeMartin State Beach in Klamath, California, Del Norte Coast Redwoods State Park, and Russian Gulch State Park in Mendocino County. Law enforcement surveilling the defendants observed them pull the plants out of the ground and then transport the harvested Dudleya plants to a nursery that Byungsu Kim operated in Vista, located in San Diego County, court documents state. Prior to the plants’ shipment, Byungsu Kim scheduled an inspection with a county agriculture official at the Vista nursery and falsely told her the government-issued certificate necessary for the plants’ exportation should list 1,397 Dudleya plants (259 pounds) for export to South Korea and that the “place of origin” of the plants was San Diego County, the indictment alleges.
The defendants then transported the plants to a commercial exporter in Compton, to whom Byungsu Kim intended to present the fraudulently obtained certificate so the Dudleya plants could be shipped to South Korea, the indictment alleges. The defendants were arrested in Compton last year and currently face state criminal charges in Del Norte County Superior Court. Law enforcement seized approximately 3,715 Dudleya plants (664 pounds) in 34 boxes at the Compton location and the value of the seized plants in Korea would be approximately $602,950, court papers state. Two of the defendants, Byungsu Kim and Youngin Back, have since fled the United States.
If convicted on all counts, the defendants face a statutory maximum sentence of 10 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the California Department of Fish and Wildlife; the United States Fish and Wildlife Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Customs and Border Protection;
County of San Diego, Agriculture, Weights and Measures; U.S. Department of Agriculture, and California State Parks.
This case is being prosecuted by Assistant United States Attorneys Matthew W. O’Brien and Dennis Mitchell of the Environmental and Community Safety Crimes Section.
South Glens Falls Man Pleads Guilty to Cocaine Trafficking ConspiracyRead the Press Release
ALBANY, NEW YORK – Carlo Varnado, age 41, of South Glens Falls, New York, pled guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, New York Field Division, United States Drug Enforcement Administration (DEA).
As part of his guilty plea, Varnado admitted that between January 2013 and October 9, 2017, he distributed cocaine from his apartment in South Glens Falls and in areas around Glens Falls. Some of this cocaine was resold in and around Lake Placid, New York. On October 9, 2017, DEA Special Agents seized approximately 8.8 ounces of cocaine bound for Lake Placid after Varnado distributed it to another person. DEA Special Agents then executed a search warrant at Varnado’s apartment and recovered approximately 20 grams of cocaine, inositol (a common cutting agent for cocaine), approximately $1,000 in U.S. currency, a scale, a vacuum sealer, and plastic baggies. As part of his plea, Varnado admitted trafficking approximately 4 kilograms of cocaine during the conspiracy.
As a result of his conviction, Varnado faces at least 5 years and up to 40 years in prison and a fine of up to $5,000,000, when he is sentenced on September 24, 2019. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Drug Enforcement Administration (DEA) and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
South Florida Resident Sentenced to More than Eighteen Years in Prison for Impersonating a Member of the Saudi Royal Family in Order to Swindle Millions from InvestorsRead the Press Release
The Impersonation Scheme Involved Wire Fraud, Fake Diplomatic License Plates, Expensive Jewelry, Artwork, Luxury Automobiles, Yachts, Private Jets, and International Trips
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Frederick R. Stolper, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service (DSS), Miami Field Office, announced that Anthony Gignac, a/k/a “Khaled Al-Saud,” a/k/a “Khalid Al-Saud,” a/k/a “Khalid Bin Al-Saud,” a/k/a “Khalid Bin Sultan Al-Saud,” a/k/a “Sultan Bin Khalid Al Saud,” 48, of Miami, was sentenced today by U.S District Judge Cecilia M. Altonaga to a total of 224 months in prison for fraudulently assuming the identity of a member of the Saudi Royal family in order to build relationships worldwide, including in South Florida, receive gifts, and conduct a large-scale scheme to defraud would-be investors.
“Over the course of the last three decades, Anthony Gignac has portrayed himself as a Saudi Prince in order to manipulate, victimize, and scam countless investors from around the world. As the leader of a sophisticated, multi-person, international fraud scheme, Gignac used his fake persona – Prince Khalid Bin Al-Saud – to sell false hope. He sold his victims on hope for their families, careers, and future. As a result, dozens of unsuspecting investors were stripped of their investments, losing more than $8 million,” stated U.S. Attorney Fajardo Orshan. “Today, in a federal court of law, justice spoke for the victims, and Anthony Gignac will now face years in prison. The U.S. Attorney’s Office commends the dedicated efforts of our partners with the Diplomatic Security Service for their commitment to this extensive investigation, their international reach, and their protection of our global community.”
“The Diplomatic Security Service is firmly committed to investigating allegations of crime related to international fraud schemes,” said DSS Special Agent in Charge Stopler. “Our tremendous success in finally closing this case could never have been possible if not for the global reach of DSS and the close cooperation of the U.S. Attorney’s Office.”
Gignac previously pled guilty to impersonating a foreign diplomat or foreign government official, in violation of Title 18, United States Code, Section 915, aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1)(a), wire fraud, in violation of Title 18, United States Code, Section 1343, and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 17-CR-20891).
Beginning as early as May of 2015, Gignac claimed to be a Saudi Arabian Prince by the name Khalid Bin Al-Saud. To support his fraudulent persona, Gignac purchased fake diplomatic license plates, a fake Diplomatic Security Service badge for his bodyguards, traditional Saudi garb, luxury goods consistent with the lavish lifestyle of a Saudi Royal, and business cards referring to himself as “Prince,” “His Royal Highness,” and/or “Sultan.” He ran an Instagram account depicting himself as a prince, with pictures posted of Saudi Royal family members, including the king, with captions such as “my dad.” Gignac referred to himself as a prince when meeting with investors, in emails, and over the phone. He travelled with security, and demanded that certain royal protocol (i.e., gift giving) be followed when individuals met him to engage in business deals.
Gignac used his assumed persona to con investors by claiming that he had access to lucrative business deals by virtue of his royal status. To aid in that scheme, Gignac and a co-conspirator formed a fraudulent investment company called Marden Williams International LLC (“MWI”). Using MWI, Gignac falsely claimed access to exclusive business ventures throughout the world, including a pharmaceutical company in Ireland, a casino in Malta, luxury hotels, and a jet-fuel trading platform in the Middle East. In addition, Gignac offered investors the chance to purchase his alleged stake in Saudi Arabia’s state-owned oil company – Saudi Aramco. Gignac supported his fraudulent scheme by forging documents from high-ranking Saudi officials purporting to verify his status as a royal, his access to great wealth, and his stake in Saudi Aramco.
Investors from all over the world were scammed into investing with Gignac and MWI. In all, investors from the United States, Canada, the United Kingdom, Switzerland and Hong Kong sent Gignac close to $8 million. Those funds were not put into business opportunities, legitimate investments, or any interest-yielding source. Instead, Gignac used the money to finance his lavish lifestyle, including Ferraris, Rolls-Royces, yachts, expensive jewelry, designer clothing, travel on private jets, and a two-bedroom property on Fisher Island. Investors were also tricked into giving Gignac extravagant gifts like paintings, jewelry, and memorabilia.
In addition, on November 19, 2017, Gignac flew into John F. Kennedy International Airport in New York, from London, using a passport in the name of another individual.
According to the court record, Gignac has executed similar schemes in the past. Between 1988 and the present, the Defendant has been arrested or convicted eleven different times for prince-related schemes.
A restitution hearing has been scheduled for August 30, 2019, at 2:00 p.m., before Judge Altonaga in Miami.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DSS in this matter. The case was prosecuted by Assistant U.S. Attorney Frederic Shadley. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture aspects of this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov.
Sioux City Man Sentenced for Methamphetamine OffensesRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on May 29, 2019, Jose Valentin Carrillo, age 35, of Sioux City, was sentenced by United States District Court Chief Judge John A. Jarvey for Conspiracy and Possession with Intent to Distribute Methamphetamine. Valentin Carrillo was sentenced to prison terms of 190 months each for Counts 1 and 2; the sentence is to run concurrently. The prison term will be followed by a term of supervised release of five years on each count, also to run concurrently.
According to court documents, Valentin Carrillo organized and arranged the transportation of approximately eight kilograms of methamphetamine from Kansas City, Missouri to Nebraska City, Nebraska. On August 13, 2017, the vehicle transporting the methamphetamine was stopped by law enforcement in Fremont County, Iowa.
This case was investigated by Fremont County Sheriff’s Department, Iowa State Patrol, Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Seminole Drug Dealer Sentenced to 31+ Years in Federal PrisonRead the Press Release
A long-time Seminole, Texas drug dealer was sentenced today to 31 years and 10 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a three-day trial in early January, a federal jury in Lubbock unanimously convicted Robert Bazan, 45, of two methamphetamine offenses and four firearm offenses, including possession of firearms in furtherance of a drug trafficking crime.
“The Defendant was a violent man who endangered both law enforcement officers and everyday citizens across the South Plains,” said U.S. Attorney Nealy Cox. “The community will be relieved to hear he will no longer be a danger to this region.”
“Six previous felony convictions did not deter Mr. Bazan from engaging in the illegal drug and gun trade. High-speed flight to avoid apprehension and witness tampering show he is a threat to the public at large and any individual that might witness or hinder his criminal activity,” stated ATF Special Agent in Charge of the Dallas Field Division Jeffrey C. Boshek II. “When ATF says we investigate the worst of the worst, we are talking about Mr. Bazan.”
According to evidence presented at trial, in April 2018, Mr. Bazan – a six-time convicted felon – unlawfully sold an AR-style pistol and methamphetamine to a confidential informant.
Less than four months later, in July 2018, Mr. Bazan led deputies with Gaines County, Texas, and Lea County, New Mexico, on a high speed pursuit following a traffic stop near the Texas/ New Mexico border. During the pursuit, which reached speeds of over 95 miles per hour, Bazan attempted to discard two handguns and approximately 413 grams of methamphetamine.
Local law enforcement officers pursued the defendant at high speeds until Bazan began shooting at them. Later that day, officers recovered two handguns and methamphetamine from the side of the roadway. At trial, an officer testified that during his decade-plus career, he had never recovered such a large amount of methamphetamine from a defendant.
Mr. Bazan worked unsuccessfully to block prosecution. Upon indictment, he attempted to intimidate a cooperating witness. At trial, the jury heard a recorded jail telephone call in which Bazan ordered the publication of the name of the witness in order to influence her testimony.
Agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives and the United States Drug Enforcement Administration conducted the investigation with the assistance of the Lubbock Police Department and the Gaines, Lea, and Lubbock County Sheriff’s Offices. U.S. District Court Judge Sam R. Cummings presided over the trial. Assistant U.S. Attorneys Ann Howey, Stephen Rancourt and Jeff Haag prosecuted the case.
Schenectady Man Sentenced to 150 Months for Role in Gun Store BurglaryRead the Press Release
SYRACUSE, NEW YORK – Christian Roman, age 25, of Schenectady, New York, was sentenced to serve 150 months in prison for stealing, possessing, concealing, and storing firearms stolen from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County.
The announcement was made by United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Norman A. Mordue also sentenced Roman to a three year term of supervised release and ordered that he pay restitution of $48,775.00
Roman pled guilty on November 21, 2018. As part of his plea, Roman admitted that, on October 22, 2017, he and Jose Fontanez broke a window to gain entry into Target Sports and then removed dozens of firearms, as well as ammunition and other property from the store, making multiple trips to and from the store with the assistance of Dalmary Morales. Roman further admitted that, after inventorying the stolen firearms, the two men hid them in a storage unit in Schenectady, New York and, while on the run from law enforcement, enlisted accomplices in Amsterdam, New York and Rochester, New York to help retrieve and transport them to various locations in New York. In exchange for their assistance, Roman and Fontanez provided some of the stolen firearms to their accomplices.
Omar DeJesus, age 32, and Onic Martinez, age 34, both of Amsterdam, pled guilty in 2018 for their roles in stealing, transporting, and possessing the firearms. Both men were sentenced to 120 months in prison.
Dalmary Morales, age 24, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports. She was sentenced to 57 months in prison.
Juan Saez, age 35, of Rochester, pled guilty in 2018 for his role in stealing, transporting, and possessing the firearms. He is scheduled to be sentenced on August 2, 2019.
Jose Fontanez, age 36, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports, and other, related charges. He is scheduled to be sentenced on August 16, 2019.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York State Police, and the Glenville, (New York) Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Rowan County Meth Dealers Sentenced to Federal PrisonRead the Press Release
GREENSBORO, N.C. - Two North Carolina residents were sentenced on May 28, 2019, for distributing drugs in Rowan County, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
Alfredo Arias BELLO, aka Alfredo Arias Vello, age 53, of Yadkinville, North Carolina, and Rodolfo VARGAS-BENITEZ, aka Luciano Vargas Benitez, age 37, of Mocksville, North Carolina, were sentenced in federal court in Greensboro by the Honorable Catherine C. Eagles. BELLO was sentenced to a 60-month term of imprisonment and VARGAS-BENITEZ was sentenced to 72 months. Both defendants pleaded guilty to distributing 50 grams or more of methamphetamine in Rowan County. In addition to these prison terms, both BELLO and VARGAS-BENITEZ were ordered to report to immigration authorities immediately upon discharge from the Bureau of Prisons and to serve a term of supervised release after completing their sentences.
According to documents filed in court, in approximately late 2017, a confidential informant (“CI”) approached law enforcement officers and told them he could purchase ounce quantities of methamphetamine from an individual later identified as BELLO. As a result, the CI contacted BELLO on January 16, 2018, and arranged for the purchase of two ounces of methamphetamine. An undercover officer (hereinafter “UC”) accompanied the CI during the transaction. Soon after arriving at the meeting location, the CI and UC observed a white SUV occupied by two males approach their vehicle. The UC exchanged $1300 for 43 grams of methamphetamine. The same procedure was utilized to make three additional purchase of methamphetamine from an individual subsequently identified as BELLO. Those purchases took place on February 1, 2018 (56 grams), April 18, 2018 (56 grams), and June 27, 2018 (116 grams). Each of those transactions took place in Rowan County, with the exception of the purchase on April 18, 2018, which took place in Yadkinville, North Carolina.
When the CI spoke with BELLO on the phone to work out details of the meeting on June 27, 2018, BELLO said “his supplier would be in a second vehicle.” Once BELLO arrived at the prearranged meeting location he placed a call to the CI and said his supplier was on the way. BELLO went on to explain that once his supplier arrived he would obtain the methamphetamine from the supplier before meeting with the informant. Shortly thereafter BELLO was observed meeting with a second Hispanic male, who was subsequently identified as VARGAS-BENITEZ. Only minutes later the UC completed the purchase of approximately four ounces of methamphetamine from BELLO.
Law enforcement officers conducting surveillance moved in and apprehended both BELLO and VARGAS-BENITEZ. The vehicles that Bello and VARGAS-BENITEZ drove to the meeting were searched. The center console of BELLO’s vehicle contained the money utilized to purchase the methamphetamine. The search of VARGAS-BENITEZ’s vehicle led to discovery of a purse that contained an additional quantity of methamphetamine. A small amount of methamphetamine was located in the front pocket of VARGAS-BENITEZ’s clothing.
This case was investigated by the Rowan County Sheriff’s Department, Salisbury Police Department, North Carolina State Bureau of Investigation, Mocksville Police Department, and Yadkinville Police Department. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Rome City Man Sentenced to 150 Months in PrisonRead the Press Release
FORT WAYNE – Glen Jacobs, 43 years old, of Rome City, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to distributing a controlled substance and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Jacobs was sentenced to 150 months in prison followed by 4 years of supervised release.
According to documents in this case, on May 3, 2018, Jacobs distributed 5 or more grams of methamphetamine. Jacobs also possessed a firearm in furtherance of his drug trafficking offense of maintaining a drug involved premises between May 3, 2018 and June 27, 2018.
This case was investigated by the Drug Enforcement Administration with the assistance of the Bureau of Alcohol Tobacco Firearms and Explosives, the Rome City Police Department, Noble County Sheriff’s Department, Auburn Police Department, Auburn Police Department Narcotics Enforcement Team, Allen County Sheriff’s Department and the Indiana State Police. This case was prosecuted by Assistant U.S. Attorney Anthony W. Geller.
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Registered Sex Offender Sentenced to 14 Years in Prison for Enticing Minors via Social Media PlatformsRead the Press Release
A registered sex offender with two prior child pornography related convictions was sentenced today in U.S. District Court in Tacoma to fourteen years in prison and twenty years of supervised release for enticement of a minor, announced U.S. Attorney Brian T. Moran. PETER JAMES HUFFERD, 47, was on federal supervision living in sex-offender housing in Seattle when law enforcement discovered he was secretly using a cell phone to communicate with minor females via social media. HUFFERD convinced two of the minor females to send him sexually explicit images. At the sentencing hearing, U.S. District Judge Ronald B. Leighton said HUFFERD showed a pattern of criminal conduct that poses “a danger to society.”
According to records filed in the case, HUFFERD had just completed a ten-year prison term in April 2017 when he began federal supervision. HUFFERD was allowed one monitored cellular phone. Beginning no later than October 2017, HUFFERD used an unmonitored cell phone to communicate with minors on SnapChat, Instagram and Tumblr. HUFFERD began relationships with multiple minor females, convincing at least two of them to send him sexually explicit images.
HUFFERD was convicted in 2003 in Clallam County Superior Court of three counts of possession of child pornography and was sentenced to 85 days in custody. At the time law enforcement determined HUFFERD was posing online as a 15-year-old girl to try to get minors to send him sexually explicit images. In 2008, HUFFERD was sentenced to ten years in prison after a father discovered his 12-year-old daughter was chatting online with HUFFERD. HUFFERD was using the same identity of a 15-year-old girl and engaging in sexually explicit talk with the 12-year-old. HUFFERD was encouraging the child to cut herself. A search of HUFFERD’s computer revealed more than 300 sexually explicit images of children.
In the current case, in March 2018, U.S. Probation discovered the unmonitored cell phone in a search of HUFFERD’s sex offender residence. A court-authorized search warrant revealed HUFFERD’s illegal communications via social media.
The case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Brian Werner.
Queens Storeowner Indicted for Setting Fire to Rival Supermarket in BrooklynRead the Press Release
Earlier today, a federal grand jury in Brooklyn returned an indictment charging Mamunar Khan with the February 3, 2019 arson of the Premium Supermarket in East New York. Khan was previously arrested on a complaint on May 6, 2019, and will be arraigned at a later date. If convicted, Khan faces a mandatory minimum sentence of five years’ imprisonment, and a maximum of 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives, James P. O’Neill, Commissioner, New York City Police Department (NYPD), and Daniel A. Nigro, Commissioner, New York City Fire Department (FDNY), announced the charge.
“As alleged in the indictment, Khan set fire to a supermarket while it was open for business, demonstrating total disregard for the safety of employees, customers and the firefighters who responded to the blaze,” stated U.S. Attorney Donoghue. “Attempting to burn down your competition is an extremely serious and violent crime and we and our law enforcement partners will ensure that such crimes are punished.”
“The alleged violent acts of the defendant against a fellow business owner could have resulted in substantial loss of property and cost the lives of innocent people to include first responders,” stated ATF Special Agent-in-Charge DeVito. “The ATF/NYPD/FDNY Strategic Explosive and Arson Response Task Force will continually work to prevent violent acts like this from occurring and to swiftly bring the perpetrators of such acts when they do occur, to justice. I would like to thank the United States Attorney’s Office for their work in prosecuting the case.”
“Mamunar Khan put personal profit before public safety and put people’s lives at risk,” said NYPD Commissioner O’Neill. “The NYPD and its law enforcement partners will never tolerate the kind of recklessness and brazen criminality that was committed in this case.”
“The use of fire as a weapon to injure and intimidate is a callous crime, one that senselessly puts the lives of New Yorkers and FDNY members in danger,” stated FDNY Commissioner Nigro. “Thanks to our Fire Marshals, NYPD Detectives, ATF agents, and the US Custom and Border Patrol agents who brought to justice an alleged arsonist who sought to avoid responsibility for this crime.”
Khan is the co-owner of Deshi Bazaar, located in Ozone Park, Queens. On February 3, 2019, video footage recovered from the Premium Supermarket, located at 1196 Liberty Avenue in Brooklyn, showed Khan pushing a cart filled with unknown flammable material down an aisle in the store. Khan, wearing blue latex gloves, used a lighter to ignite the material, and then exited the store. As the fire spread through the store, a second video camera recorded Khan driving away in a Mercedes-Benz SUV. The fire caused substantial damage to Premium Supermarket and the structure of the building.
A witness told law enforcement agents that Khan had previously complained that the low prices at Premium Supermarket hurt business at his own nearby market. Khan was then interviewed by law enforcement agents. The following day, he left the country and traveled to Bangladesh. Khan was arrested three months later upon returning to the United States.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Andrew D. Grubin is in charge of the prosecution.
The Defendant:
MAMUNAR KHAN (also known as “Mumunar Khan”)
Age: 59
Ozone Park, QueensE.D.N.Y. Docket No. 19-CR-247 (LDH)
Post Falls Men Sentenced for Ties to Firearm used to Kill Coeur d’Alene Police Sergeant Greg MooreRead the Press Release
COEUR D’ALENE – Nicholace Cane Thomas, 23, and Donald Eugene Shuck, 33, both of Post Falls, were sentenced for theft of a firearm that was later used by Johnathan Renfro to murder Coeur d’Alene Police Sergeant Greg Moore, U.S. Attorney Bart M. Davis announced today. U.S. District Judge Edward J. Lodge sentenced Thomas to 24 months in prison followed by three years of supervised release for possession of a stolen firearm. Judge Lodge sentenced Shuck to 200 hours of community service and 5 years of probation for accessory after the fact.
According to court records, during the early morning of April 24, 2015, Shuck and Thomas burglarized cars in the Post Falls area. Thomas stole a firearm from a vehicle and showed it to Shuck, who then drove them from the area. Thomas later traded the firearm to a third party for methamphetamine. Twelve days after the theft, on May 5, 2015, Coeur d’Alene Police Sergeant Greg Moore was shot and killed with the stolen firearm by Johnathan Renfro. During the subsequent murder investigation, officers tracked the firearm used by Renfro to Thomas and Shuck.
The State of Idaho charged and convicted Renfro for murdering Sergeant Moore. Renfo was sentenced to death in 2017.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation, Idaho State Police, Kootenai County Sheriff’s Office, Coeur d’Alene Police Department, Post Falls Police Department, and Idaho Probation and Parole.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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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Pine Ridge Man Found Guilty in Violent Shooting SpreeRead the Press Release
United States Attorney Ron Parsons announced that Lester Waters, Jr., age 38, was found guilty of 2 counts of Assault with a Dangerous Weapon, 2 counts of Assault Resulting in Serious Bodily Injury, and 2 counts of Discharging, Brandishing, or Possessing a Firearm During and in Relation to a Crime of Violence following a federal trial in Rapid City, South Dakota.
Each assault charge carries a maximum sentence of 10 years in federal prison, and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The two firearms charges each carry a mandatory minimum sentence of 10 years in federal prison.
Evidence at trial established Waters fired a pistol four times while at a party at a Pine Ridge residence on January 25, 2018. Three of the bullets struck one of the victims, ultimately paralyzing him. Another bullet struck a second victim in the face, causing extensive injuries.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorneys Heather Sazama and Eric Kelderman prosecuted and tried the case.
A sentencing date was set for September 17, 2019. Waters was remanded to the custody of the U.S. Marshals Service pending sentencing.
Picayune Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – Nygele McKinney, 34, of Picayune, Mississippi, pled guilty today before U.S. District Judge Sul Ozerden to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans.
On December 29, 2018, McKinney, working with co-defendant Leonardo Serra, of Texas, accepted the delivery of a load of methamphetamine in Picayune. Serra drove the methamphetamine secreted in a vehicle to a residence in Picayune. HSI Agents executed a search warrant while McKinney was in the process of removing the methamphetamine from the hidden compartment. The methamphetamine was over 5 kilograms and 90% pure.
McKinney will be sentenced on September 4, 2019, by Judge Ozerden. He faces a maximum penalty of life in prison and a $10,000,000 fine.
Leonardo Serra pled guilty on April 16, 2019, to possession with intent to distribute methamphetamine. He will be sentenced on July 17, 2019, and faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Pharmaceutical Company Admits to Price Fixing in Violation of Antitrust Law, Resolves Related False Claims Act ViolationsRead the Press Release
Heritage Pharmaceuticals Inc., a generic pharmaceutical company headquartered in Eatontown, New Jersey, was charged for conspiring with its competitors to fix prices, rig bids, and allocate customers, the Department of Justice announced today.
According to a one-count felony charge filed yesterday in the United States District Court for the Eastern District of Pennsylvania in Philadelphia, from about April 2014 until at least December 2015, Heritage participated in a criminal antitrust conspiracy with other companies and individuals engaged in the production and sale of generic pharmaceuticals, a purpose of which was to fix prices, rig bids, and allocate customers for glyburide, a medicine used to treat diabetes. This charge is the third in the Department of Justice’s Antitrust Division’s ongoing investigation; Heritage’s former CEO and its former president were previously charged.
The Antitrust Division also announced a deferred prosecution agreement resolving the charge, under which Heritage admits that it conspired to fix prices, rig bids, and allocate customers for glyburide. Under the agreement’s terms, Heritage will pay a $225,000 criminal penalty and cooperate fully with the ongoing criminal investigation. The United States will defer prosecuting Heritage for a period of three years to allow the company to comply with the agreement’s terms. The agreement will not be final until accepted by the court.
“American consumers have the right to generic drugs sold at prices set by competition, not collusion,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “It is particularly galling that, when healthcare prices in the United States are already high, certain generic pharmaceutical companies and executives engaged in collusive conduct at the expense of individuals who depend on critical medications. Heritage and its co-conspirators cheated and exploited vulnerable American patients to pad their bottom line.” Delrahim continued, “this resolution — requiring an admission of guilt, a criminal penalty, and cooperation in the ongoing investigation — sends a clear message to generic pharmaceutical companies and their executives that this conduct will not be tolerated. The Division and its law enforcement partners, including the FBI and the U.S. Postal Service Office of Inspector General, will continue to hold companies and individuals accountable for collusion that undermines the integrity of the market for drugs.”
The Antitrust Division entered into the deferred prosecution agreement with Heritage based on the individual facts and circumstances of this case. Among those facts and circumstances, the agreement specifically identifies the company’s substantial and ongoing cooperation with the investigation to date, including its disclosure of information regarding criminal antitrust violations involving drugs other than those identified in the criminal charge and the agreement. According to the agreement, this cooperation has allowed the United States to advance its investigation into criminal antitrust conspiracies among other manufacturers of generic pharmaceuticals. Other facts and circumstances identified in the agreement include: Heritage has agreed to resolve all civil claims relating to federal health care programs arising from its conduct; and a conviction (including a guilty plea) would likely result in the Office of the Inspector General of the Department of Health and Human Services imposing mandatory exclusion of Heritage from all federal health care programs under 42 U.S.C. § 1320a-7 for a period of at least five years, which would result in substantial consequences, including to American consumers. The agreement can ensure that integrity has been restored to Heritage’s operations and preserve its financial viability while preserving the United States’ ability to prosecute it should material breaches occur.
“Price fixing, bid rigging and market allocation promote an environment antithetical to free and open competition in the marketplace. When this occurs, the consumer is not guaranteed the best products at the lowest prices,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “The U.S. Postal Service spends hundreds of millions of dollars every year on health care associated costs, including expenses related to prescription drugs. Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
“The availability of generic medications should be a boon to the public, giving them access to proven drugs at lower prices,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “When generic pharmaceutical firms engage in price fixing and bid rigging in order to pad their profits, they not only disrupt the free market but do so on the backs of the folks who depend on these drugs. The FBI will continue to investigate and hold accountable companies engaged in such illegal and anticompetitive acts.”
In a separate civil resolution, Heritage has agreed to pay $7.1 million to resolve allegations under the False Claims Act related to the price-fixing conspiracy. The government alleged that between 2012 and 2015, Heritage paid and received remuneration through arrangements on price, supply, and allocation of customers with other pharmaceutical manufacturers for certain generic drugs in violation of the Anti-Kickback Statute, and that its sale of such drugs resulted in claims submitted to or purchases by federal healthcare programs. The drugs allegedly implicated in this scheme address a wide variety of health conditions, and include hydralazine, used to treat high blood pressure, theophylline, used to treat asthma and other respiratory problems, and glyburide.
“Price fixing of generic drugs harms federal health care programs and the beneficiaries those programs serve,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will use every tool at its disposal to hold generic drug manufacturers accountable for wrongdoing.”
“My Office is proud to announce both the civil healthcare fraud settlement with the Civil Division and the deferred prosecution agreement with the Antitrust Division,” said U.S. Attorney McSwain. “Price fixing and market allocation in generic drugs will not be tolerated, especially when such actions artificially inflate prices and negatively impact federal healthcare programs like Medicare and Medicaid. This resolution with Heritage is an important milestone, and my Office will continue to investigate and pursue illegal conduct regarding generic drugs.”
“Plotting to raise prices on generic medications is illegal and may result in patients’ inability to afford vital medicines,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. “Along with our law enforcement partners at the DOJ, FBI, and Postal-OIG, we will continue to investigate allegations of companies engaging in actions that put the public and the Medicare program at risk.”
The Anti-Kickback Statute prohibits companies from receiving or paying remuneration in return for arranging the sale or purchase of items such as drugs for which payment may be made by a federal health care program. These provisions are designed to ensure that the supply and price of health care items are not compromised by improper financial incentives. This settlement reflects the important role of the False Claims Act to ensure that the United States is fully compensated when it is the victim of kickbacks paid to further anticompetitive conduct.
The criminal charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the FBI’s Philadelphia Division, the FBI headquarters’ International Corruption Unit, the United States Postal Service Office of Inspector General, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Philadelphia Division at 215-418-4000.
The civil settlement was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Pennsylvania with support from the Department of Health and Human Services Office of the Inspector General, Defense Health Agency Program Integrity, and the Office of Inspector General for the Department of Veterans Affairs. Except for those facts admitted to in the deferred prosecution agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
Orlando Man Sentenced for Filing Fraudulent Immigration Documents That Resulted in More Than 300 Temporary Workers Fraudulently Entering the United StatesRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Marvin Mushia Smith (41, Orlando) to 10 months’ imprisonment for visa fraud. Smith had pleaded guilty on August 14, 2018.
According to court documents, in April 2017, members of Orlando’s Homeland Security +Investigation’s (HSI) Document and Benefit Fraud Task Force (DBFTF) identified numerous requests for abnormal numbers of alleged “required” foreign temporary nonagricultural workers, called “H-2B” visas. The task force linked all of these requests to Smith, a naturalized U.S. citizen, originally from Jamaica. Further investigation revealed that from at least as early as December 16, 2014, through March 15, 2018, Smith filed fraudulent labor certification packages and fraudulent immigration petitions with the Department of Labor (DOL) and/or U.S. Citizenship and Immigration Services (USCIS), which resulted in the admission of more than 300 nonimmigrants (H-2Bs), all from Jamaica.
The H-2B non-agricultural temporary worker program allows U.S. employers to bring foreign nationals to the United States to fill temporary non-agricultural jobs. To qualify for H-2B nonimmigrant classification, an application/petitioner (Smith, in this case) must establish that, amongst other things, there are not enough U.S. workers who are able, willing, qualified, and available to do the temporary work, and that employing H-2B workers will not adversely affect the wages and working conditions of similarly employed U.S. workers. There is a statutory numerical limit, or “cap,” on the total number of foreign nationals who may be issued an H-2B visa or otherwise granted H-2B status during a fiscal year. Currently, Congress has set the H-2B cap at 66,000 per fiscal year, with 33,000 for workers who begin employment in the first half of the fiscal year (October 1 - March 31) and 33,000 for workers who begin employment in the second half of the fiscal year (April 1 - September 30).
In his fraudulent submissions to DOL and USCIS, Smith claimed to have labor contracts with various hotels, construction companies, and/or landscaping businesses for temporary work in the United States. In reality, many of his H-2B petition packages used fake temporary employment contracts as supporting evidence to exhibit the need for the foreign workers in the United States. USCIS approved all 11 of Smith’s H-2B petitions, in large part, because of the fraudulent contracts supplied by Smith. Each of the approved petitions allowed Smith to bring in a different amount of alien workers. On average, each petition allowed him to bring in about 30 workers. Furthermore, law enforcement interviewed several of the H-2B workers admitted under Smith’s fraudulent H-2B packages and they said they had worked at different job sites and performed different duties than those indicated on the petitions.
“Foreign worker visa fraud can have serious national security, public safety, and economic consequences,” said HSI Orlando Assistant Special Agent in Charge David J. Pezzutti. “This case represents the importance of the HSI Document and Benefit Fraud Task Force’s continuing commitment toward protecting the integrity of the immigration system and preserving jobs for U.S. citizens and others lawfully authorized to work.”
“The Diplomatic Security Service is firmly committed to making sure that those who commit visa fraud face consequences for their criminal actions,” said Frederick Stolper, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service (DSS), Miami Field Office. “The strong relationship we have with the U.S. Attorney’s Office in the Middle District of Florida and other law enforcement agencies around the world is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”
This case was the culmination of the combined investigative efforts of HSI, DSS, DOL-Office of the Inspector General, Customs and Border Protection, and USCIS-Fraud Detection and National Security as a result of HSI’s Document and Benefit Fraud Task Force. HSI created the DBFTF to combat visa fraud and other similar crimes by building upon existing partnerships with other federal and state law enforcement investigators with document and benefit fraud expertise. It was prosecuted by Special Assistant U.S. Attorneys Brandon M. Bayliss and Christina R. Downes, both on assignment from the Office of the Principal Legal Advisor, ICE.
Oklahoma City Hospitals Agree to Pay $2.8 Million to Settle Allegations of Submitting False Claims to MedicaidRead the Press Release
OKLAHOMA CITY – OKLAHOMA HEART HOSPITAL, LLC, AND OKLAHOMA HEART HOSPITAL SOUTH, LLC, have agreed to pay $2,800,000 to settle civil claims stemming from allegations that they submitted false claims to Medicaid, announced First Assistant U.S. Attorney Robert J. Troester.
Oklahoma Heart Hospital, LLC, and Oklahoma Heart Hospital South, LLC (collectively "OHH") are limited liability companies organized in the State of Oklahoma. They own and operate the Oklahoma Heart Hospital and Oklahoma Heart Hospital South, which are located in Oklahoma City.
The United States and the State of Oklahoma allege that from January 1, 2010, through December 31, 2016, OHH caused false claims to be submitted to Medicaid for certain nonemergency prescheduled cardiovascular stent procedures under Diagnosis Related Group Codes 247 and 249. The claims were false because OHH billed the procedures as inpatient services to increase its revenue when the procedures should have been billed and reimbursed as outpatient services.
This $2.8 million settlement resolves part of the allegations filed in a lawsuit by a whistleblower who formerly worked for OHH. The lawsuit was filed in federal district court in Oklahoma City under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the government to intervene in the lawsuit. In this case, the government intervened in the allegations resolved by this settlement, which will provide funds to both the federal government and to the State of Oklahoma. The other allegations raised in the lawsuit will be dismissed as part of the settlement.
In reaching this settlement, OHH did not admit liability, and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and Offices of Investigations and Audit Services; FBI Oklahoma City; and the Oklahoma Attorney General’s Medicaid Fraud Control Unit. The case was prosecuted by Assistant United States Attorneys Scott Maule and Ronald R. Gallegos and by Assistant Oklahoma Attorney General Niki S. Batt.
O.C. Man Faces Federal Mail Fraud Charges for Allegedly Using over 200 Stolen Identities to Collect Unemployment InsuranceRead the Press Release
SANTA ANA, California – A Yorba Linda man who allegedly used more than 200 stolen identities to fraudulently collect nearly $600,000 in unemployment insurance benefits from the California Employment Development Department (EDD) was charged today with two counts of mail fraud.
Jeffrey Silhanek, 39, was named in a criminal information filed in United States District Court.
According to the information, Silhanek obtained stolen identities and used those names to open post office boxes. Silhanek then allegedly used the stolen identities and addresses to file unemployment insurance benefit claims, without the knowledge or permission of the identity theft victims. Silhanek represented that the claimants had been laid off and were entitled to unemployment insurance benefits. To ensure that he received the benefits, Silhanek instructed the EDD to send benefit checks and debit cards to the post office boxes he controlled.
As a result of the claims that Silhanek filed, the EDD suffered losses of at least $586,000.
The EDD is the administrator of the federally funded unemployment insurance benefit program for residents of the State of California.
Silhanek is scheduled to be arraigned in this case on July 8.
An information contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
This case is being investigated by the United States Department of Labor, Office of Inspector General.
This matter is being prosecuted by Assistant United States Attorney Daniel H. Ahn of the Santa Ana Branch Office.
Non-Citizen Convicted After Posing as Native-Born American for 10 YearsRead the Press Release
LAREDO, Texas – A 35-year-old Mexican National has admitted he made false statements in an application for U.S. Passport, announced U.S. Attorney Ryan K. Patrick.
Rigoberto Rivera had successfully applied for a U.S. passport in 2008, identifying him as a native-born United States citizen from Texas. It expired in 2018, after which he submitted a DS-82 U.S. Passport Renewal Application for Eligible Individuals by mail.
He used a birth certificate to support his claim of citizenship which stated a date of birth of April 5, 1984, in Laredo. However, law enforcement located a Mexican birth certificate that pre-dated this U.S. birth certificate, stating he was born in Nuevo Laredo, Tamaulipas, Mexico, on March 23, 1984.
Records further revealed that in May 2000, Rivera had applied for a visa as a Mexican citizen at the U.S. Consulate in Nuevo Laredo, Mexico. He was issued a border crossing card through this application and was fingerprinted and photographed. A subsequent comparison between the fingerprints taken in 2000 and the fingerprints taken in 2018 revealed a positive match to Rivera.
Rivera was arrested April 2, 2019. He subsequently admitted he was born in Mexico and that he had previously applied for a visa as a Mexican national. He claimed he used his Mexican birth certificate in the past to attend school in Mexico at a lower cost, but that he had used his U.S. birth certificate to pose as a native-born United States citizen since 2008.
Sentencing will be set at a later date before U.S. District Judge Diana Saldana. At that time, Rivera faces up to 10 years in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
He has been and will remain in custody pending his sentencing hearing.
Customs and Border Protection and Department of State - Diplomatic Security Service conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.