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16 July 2019
Mobile County Mail Carrier Receives 60 Months for Co-Conspirators Use of a Firearm in Furtherance of Marijuana DistributionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Unterria Rogers, a 33 year old resident of Mobile, Alabama, was sentenced to 60 months in prison as a result of his conviction for use of a firearm in furtherance of a drug trafficking crime.
On March 29, 2019, Rogers entered a guilty plea pursuant to a plea agreement and admitted in open court that in 2018, he was a United States mail Carrier. During that year, the United States mail delivery databases showed a high volume of parcels suspected of containing narcotics destined to Mobile, Alabama city carrier route 009, a route assigned to Rogers. Further analysis by United States Postal Service Office of Inspector General (USPS-OIG) special agents of the U. S. Postal Service databases identified numerous suspected drug parcels scanned delivered by Rogers away from the intended delivery addresses on his route. An internal investigation by the USPS-OIG disclosed Rogers was utilizing his position as a city mail carrier to provide addresses from his assigned route to a drug source in California, so he could control, divert, and distribute drug parcels utilizing the U. S. Mail. These drug parcels contained illegal quantities of marijuana which he diverted and distributed to outside non-USPS employees in exchange for cash payments as he delivered mail along his assigned route. Further, surveillance video disclosed Rogers rifling U.S. Mail that came into is possession to be delivered to addresses along his route to locate the quantities of marijuana. Rogers is also captured on video leaving his mail truck to deliver the found quantities of marijuana to co-conspirators who met him at predetermined locations along his mail route. Rogers was captured returning to his postal truck sitting in the driver’s seat counting amounts of cash he received from the co-conspirators in exchange for the quantities of marijuana.
Rogers was interviewed. In total, Rogers admitted to opening approximately 25-30 U.S. mail parcels inside his postal truck. Further, Rogers admitted to receiving cash in exchange for marijuana parcels being sent to his route and providing them to the three people. Rogers admitted to receiving on more than one occasion $250.00 per package. In addition, Rogers provided verbal consent to a search of his residence and identified the key for entry into his residence.
Rogers stated that he acted as a middle man and provided addresses and account information to a local drug dealer who then provided the information to his California contact. During a consent search of Rogers’s residence, $3,269 in U.S. currency, a DVR for house surveillance, and a set of digital scale were seized by agents. The money was seized from the pocket of Rogers’s postal uniform. A review of Rogers’s DVR in-house video showed Rogers seated in front of a coffee table that had a handgun, a small quantity of marijuana and a set of digital scales in arms distance from him. Firearms are tools of the drug trade used by illegal drug dealers to protect themselves and their product. The firearm was brought to Rogers’s home for protection of them and their illegal drug activities by a co-conspirator, Lakeddrick Green.The total amount of marijuana attributed to Rogers in the conspiracy was approximately 133 pounds.
Inspectors of the United States Postal Inspection Service along with special agents of the United States Postal Service/Office of the Inspector General investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney Gina S. Vann.
Michigan Man Sentenced to 39 Months for Bank Fraud and Aggravated Identity TheftRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced that Deandray Buckley, 27, of Belleville, Michigan, was sentenced on Monday to 39 months in federal prison for bank fraud and aggravated identity theft.
According to court documents and statements made in court, Buckley was part of an interstate scheme with others to steal people’s personal identifying information, including social security numbers and bank account information. Buckley obtained this identification information from his accomplices and online and then used it to obtain fake driver’s licenses with other people’s identifying information and his or an accomplice’s photograph. Buckley and an accomplice used the fake driver’s licenses to impersonate bank customers and withdraw or attempt to withdraw money from those bank customers’ accounts. When entering a bank branch, Buckley or an accomplice wore slings on their arms or bandaged their fingers together in case bank tellers asked why the signature on the withdrawal slip did not match the account owners’ signature on file at the bank.
Between October 2017 and February 2018, Buckley or an accomplice entered over 17 bank branches in New Hampshire, Kansas, Connecticut, Massachusetts, Ohio, and Rhode Island and stole or attempted to steal over $90,000 from other people’s bank accounts. On February 27, 2018, Buckley was arrested by the Salem Police Department after attempting to withdraw $6,000 from another person’s bank account at a Citizen’s Bank branch in Salem. Branch employees recognized Buckley from previous internal fraud alerts, denied the transaction, and called the police. In addition to identifying information from the known fraud victims, Buckley and an accomplice’s cell phones contained bank account information or social security numbers of at least 52 other individuals.
Buckley previously pleaded guilty on March 15, 2019.
“Identity theft crimes can have a devastating impact on victims, including financial losses and disruption of their lives,” said U.S. Attorney Murray. “The law enforcement community will work to protect citizens from these crimes and to hold identity thieves accountable for their actions. Those who commit these crimes should understand that their conduct will result in federal prison time.”
“The United States Secret Service is committed to investigating financial crimes including the unauthorized use of personally identifiable information for financial gain,” said Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service, Manchester Resident Office. “The success of this investigation is a result of the cooperation between federal and local law enforcement partners across numerous states.”
“Today’s sentencing is the result of a coordinated effort with our state and federal partners,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “These types of financial losses can create hardships and long lasting impacts for the victims. The U.S. Postal Inspection Service will continue to conduct investigations of individuals who compromise the personal information of our customers and jeopardize the integrity the U.S. Mail.”
This matter was investigated by the United States Postal Inspection Service, the United States Secret Service, and the Overland Park Kansas Police Department. The case is being prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter from the District of New Hampshire and Assistant U.S. Attorney Chris Oakley from the District of Kansas.
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Miami Drug Trafficker Sentenced to More Than Ten Years for Cocaine ConspiracyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that James Bernard Braddy, 43, of Miami, Florida, was sentenced in federal court. Braddy pled guilty to possession with intent to distribute and conspiracy to possess with intent to distribute 62 kilograms of cocaine. Court documents reflect that Braddy was stopped by Saraland police officers on Interstate 65 for a traffic violation. During the stop, a police dog gave a positive indication for the odor of a controlled substance emanating from Braddy’s vehicle. A search of the vehicle resulted in the discovery of the cocaine, along with a bag containing $40,000 in cash. Braddy was found guilty of the two charges after a bench trial on February 11, 2019.
United States District Court Judge Callie V. S. Granade imposed a sentence of 121 months imprisonment on the two charges, but ordered that the sentences would run concurrently. She also ordered that Braddy serve a five-year term of supervised release when he is released from custody. No fine was imposed in his case, but Braddy was also ordered to pay $200 in special assessments.
The case was investigated by the Saraland Police Department and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Mexican National and Leader of Georgia-Based Drug Trafficking Organization Sentenced to 17 Years in Prison for Distributing Large Amounts of Methamphetamine in Central FloridaRead the Press Release
Orlando, Florida – U.S. District Judge Roy. B. Dalton, Jr. has sentenced Juan Alberto Flores-Jimenez (34, Tamaulipas, Mexico), a/k/a Juan Cantu, a/k/a Stoner, to 17 years in federal prison for conspiring to possess with the intent to distribute 50 grams or more of methamphetamine. Flores-Jimenez had pleaded guilty on February 7, 2019.
According to court documents, Flores-Jimenez, an alien residing illegally within the United States, was the leader of a drug-trafficking organization (DTO) distributing kilogram amounts of methamphetamine from Georgia to other DTOs located in central Florida. Between April 2017 and September 13, 2018, Flores-Jimenez was responsible for distributing at least 4.5 kilograms of methamphetamine in the Middle District of Florida.
Flores-Jimenez, a native and citizen of Mexico, was ordered removed/deported from the United States in 2014 and again in 2015. On September 13, 2018, law enforcement officers arrested Flores-Jimenez and charged him with illegal reentry into the United States after being previously removed. On January 2, 2019, Flores-Jimenez pleaded guilty to that charge. He was sentenced to 60 months’ imprisonment in the immigration case—that sentence is to run concurrently with the 17-year drug sentence.
This case was investigated by the FBI, the DEA, the Volusia Bureau of Investigation, the Volusia County Sheriff’s Office, and the Daytona Beach Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
Medical Billing Company Owner Sentenced to Prison for Health Care FraudRead the Press Release
COLUMBUS, Ohio – The owner of a medical and dental billing company was sentenced in U.S. District Court today for her role in committing more than $2 million in health care fraud.
Cindy Dahdah, 61, of Beavercreek, was sentenced to 60 months in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Ohio Attorney General Dave Yost announced the sentence imposed today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents and testimony, Dahdah and her late husband, Dr. Salim Dahdah, conspired to commit health care fraud from 2007 until 2015.
The defendants provided medically unnecessary medical tests and procedures – including nuclear stress tests and invasive cardiac procedures – exposing patients to the risk of serious physical harm.
Cindy Dahdah pleaded guilty in October 2018 to conspiracy to commit and committing health care fraud and making false statements related to health care matters.
Salim Dahdah was a licensed cardiologist and owner of Ohio Institute of Cardiac Care (OICC) in Springfield, Ohio. The practice was originally incorporated in 1986 and eventually used the name Advanced Cardiology Associates, Inc. Cindy Dahdah incorporated ACCU-BIL Management, Inc., a privately held medical and dental billing company established in 2001 in Beavercreek. The couple also owned a primary care practice located in the same building as the cardiology practice.
OICC focused on treating patients who suffered from cardiac related illnesses, including coronary artery disease. Most of the practice’s patients were elderly and of lower socio-economic class.
As part of their conspiracy, the couple created aggressive medical protocols for cardiac related tests and procedures that they required OICC and ACCU-BIL staff to follow regardless of the medical necessity of the procedures.
The Dahdahs would name a patient’s last seen physician as a referring physician for invasive and unnecessary procedures, even though the last physician never ordered the procedures. In order to ensure their protocols were strictly followed, Cindy Dahdah would often reprimand, humiliate or threaten to terminate employees who refused to schedule the medical tests.
Cindy Dahdah also threatened to terminate primary care patients who refused to be treated by a cardiologist at OICC.
In order to increase revenue, Salim Dahdah intentionally misinterpreted cardiac tests, including heart catheterizations, to justify risky procedures like the insertion of heart defibrillators when they were medically unnecessary.
For example, Salim Dahdah told a patient in his/her thirties that (s)he needed a heart surgery or (s)he would die. The patient underwent the surgery in 2013 in order for Dahdah to implant an AICD (an implantable defibrillator). Later, the patient sought the services of another cardiologist and determined the AICD had been unnecessary, and had to undergo a second risky heart surgery to have it removed.
As a result of the health care fraud scheme, the defendants caused more than 2,000 fraudulent claims to be submitted to Medicare, Ohio Medicaid and Anthem Blue Cross and Blue Shield totaling approximately $2 million.
“The Dahdahs subjected patients to unnecessary nuclear stress tests and invasive cardiac procedures in order to make a quick buck off Medicare and Medicaid,” said U.S. Attorney Glassman. “What an unconscionable business model. The defendant’s prison term is well deserved.”
“The human cost of this couple’s crimes far outweighs the financial cost,” Ohio Attorney General Dave Yost said. “These patients believed their life-altering treatments were medically necessary, but it was all a ploy aimed at squeezing more money out of the state. Nothing – not even this sentence – can erase the anguish inflicted upon this couple’s victims.”
The couple was indicted by a federal grand jury in July 2017. Salim Dahdah also pleaded guilty in October 2018 to the same crimes as Cindy Dahdah. He died prior to being sentenced.
U.S. Attorney Glassman commended the cooperative investigation by HHS-OIG, the FBI and Ohio Attorney General Dave Yost’s Medicaid Fraud Control Unit, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are representing the United States in this case.
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Mascoutah Man Sentenced to 35 Years for Online Extortion, Production of Child PornographyRead the Press Release
A prolific sextortionist has been brought to justice in the Southern District of Illinois. Joshua P. Breckel, 21, of Mascoutah, Illinois, was sentenced today to 420 months in federal prison after spending years exploiting and blackmailing young girls over the internet. The sentencing comes three months after Breckel pleaded guilty to a 10-count felony information as part of a negotiated plea deal with the U.S. Attorney’s Office. United States District Judge Staci M. Yandle accepted the terms of the deal, including the stipulated 35-year sentence she handed down today.
Beginning in early 2016 and continuing until his arrest on July 8, 2018, Breckel repeatedly used computers, mobile phones, interactive computer services, and the internet to obtain sexually explicit images and videos from dozens of minor females located throughout the United States and internationally. Breckel found his victims on social media and messaging applications, including Facebook, Instagram, LiveMe, Kik, and Snapchat. He was able to persuade them to send him nude images by feigning a romantic interest in them, offering them money, or threatening them.
To ensure he was getting true images of the girls, Breckel often asked them to include their faces in the pictures or to hold up three fingers. Most of the girls who sent Breckel naked pictures and videos did so using Snapchat, a multi-media messaging application known for making message content inaccessible to recipients shortly after it is received. But Breckel used a screen recording device to capture and save the compromising images before they disappeared. He would then threaten to send their salacious photos to their family, friends, and online contacts unless the victims sent him additional photos and videos per his instructions.
Some victims complied with Breckel’s demands, while others did not. Those who complied were often subjected to escalating extortion demands and more threats, until they eventually stopped communicating with him. Breckel traded some of the explicit images and videos he obtained with other internet users using Kik, a mobile messaging application.
Law enforcement first became aware of Breckel in April 2018, when a 15 year old girl in New Jersey identified as C.S. reported to her mother that she had been threatened online by someone on Whisper with the screen name "User_Pure" and Snapchat account "thatonekidukno1." Local authorities were able to track the user back to Breckel’s home in Mascoutah, Illinois.
As part of his plea deal with the United States, Breckel admitted sending threatening communications to C.S. in an attempt to obtain sexually explicit photos and videos of her. Breckel also pleaded guilty to producing and distributing child pornography and sending extortionate threats over the internet. Among his many victims were three 15 year old girls from California, Pennsylvania, and Illinois, a 12 year old girl from Illinois, and a 10 year old girl from Ohio. Breckel admitted that he threatened to kill the Ohio girl if she didn’t send him naked pictures of herself.
In imposing sentence, Judge Yandle found that the 35 year sentence was appropriate for the important purpose of sending a general deterrence message to other would-be offenders. Judge Yandle noted that as a society "we are living in a different world. A world where it is common for young people to engage in online relationships, share intimate digital photos and not be bothered by cyber intimidation and bullying."
Judge Yandle further noted that the long sentence would ensure the protection of the public. The mother of one victim gave an impact statement at sentencing and discussed the damage that the crime had done to her daughter. She stated that her daughter had become very depressed, withdrawn from her friends, and lost interest in hobbies and school activities. Judge Yandle noted how destructive the defendant’s actions had been to his victims and their families She stated that Breckel "would not be back on the street until he had received treatment." Breckel’s term of imprisonment will be followed by a lifetime period of supervised release.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For more information about internet safety education, please visit https://www.justice.gov/psc and click on the tab "resources."
The investigation was conducted by the FBI, the Mascoutah Police Department, and the Middlesex, New Jersey Police Department. The case was prosecuted by Assistant United States Attorneys Christopher Hoell and Nathan D. Stump.
Maryland U.S. Attorney Announces Justice Department Launch of National Public Safety Partnership with Baltimore Police DepartmentRead the Press Release
Baltimore, Maryland – Today, United States Attorney for the District of Maryland Robert K. Hur, officials from the Department of Justice's Bureau of Justice Assistance, the Baltimore Police Department, the Office of the State’s Attorney’s for Baltimore City, and other federal law enforcement officials convened in Baltimore to initiate the National Public Safety Partnership (PSP) program with the Baltimore Police Department. This Justice Department program is a three-year engagement that seeks to leverage department assets in support of a local jurisdictions' commitment to drive down violent crime.
On June 3, 2019, Attorney General William Barr announced the selection of the Baltimore Police Department as one of ten FY 2019 PSP sites where the Justice Department will work collaboratively to provide training and technical assistance in areas such as crime analytics, emerging technology and community engagement.
Since 2017, the Justice Department has directed nearly $14.9 million in customized training and technical assistance to help build crime fighting capacity in PSP sites, including $6.6 million to support the FY 2019 sites through FY 2022. PSP seeks to bring law enforcement stakeholders together to work collaboratively in reducing violent crime attributed to felonious firearm use, drug trafficking and human trafficking.
“Reducing violent crime in Baltimore is job one. It’s what we in law enforcement think about morning, noon, and night,” said U.S. Attorney Robert K. Hur. “We will continue to do everything we can to prosecute the violent criminals who wreak havoc in and terrorize Baltimore’s neighborhoods.”
“Today our team is on-site in Baltimore to collaborate with local law enforcement officials in their mission to improve public safety and drive down violent crime,” said Jon Adler, Director of the Bureau of Justice Assistance. "Through the Public Safety Partnership, we are committed to fulfilling the Attorney General's priority of supporting local law enforcement combat violent gangs, felonious firearms use and drug trafficking," added Adler.
“Reducing violent crime in Baltimore will require the hard work and dedication of people on the local, state and federal levels. This partnership is exactly the kind of collaboration that is needed to help make Baltimore a safer city,” added Superintendent Harrison.
Since 2017, the Justice Department has worked with more than 30 local jurisdictions under the nationwide PSP program. Many participating cities have already seen dramatic reductions in violent crime. New Orleans ended 2018 with 146 murders, the lowest number of murders since the early 1970s. In Milwaukee, homicides declined in 2018 for a third straight year after hitting a deadly peak in 2015.
Agencies in attendance at this meeting will include the U.S. Attorney’s Office, District of Maryland; the Office of Justice Programs; the Federal Bureau of Investigation; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the U.S. Drug Enforcement Administration; the Department of Homeland Security; the Baltimore Police Department; the Baltimore City State’s Attorney’s Office; and Mayor Bernard “Jack” Young‘s Office.
For more information about PSP, visit https://www.nationalpublicsafetypartnership.org.
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Manhattan U.S. Attorney Announces Extradition of Iranian National and Unsealing of Charges Against Two Other Men for Exporting Carbon Fiber from the United States to IranRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, John Brown, Assistant Director of the FBI’s Counterintelligence Division, and William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the extradition of BEHZAD POURGHANNAD and the unsealing today of a three-count indictment charging POURGHANNAD, ALI REZA SHOKRI, and FARZIN FARIDMANESH with exporting carbon fiber from the United States to Iran. POURGHANNAD, an Iranian national, was arrested on those charges on May 3, 2017, in Germany and was extradited to the U.S. POURGHANNAD arrived in the Southern District of New York yesterday, and was presented today in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy. SHOKRI and FARIDMANESH remain at large.
U.S. Attorney Geoffrey Berman stated: “Carbon fiber has many aerospace and defense applications, and is strictly controlled to ensure that it doesn’t fall into the wrong hands. Pourghannad and his co-defendants allegedly went to great lengths to circumvent these controls and the United States’ export laws. Together with our law enforcement partners, we will continue to protect our nation’s assets and protect our national security.”
Assistant Attorney General John Demers said: “Pourghannad is alleged to have sought to procure for Iran large amounts of carbon fiber — a commodity that can be used in the enrichment of uranium. U.S. sanctions exist to prevent behavior, like this, which endangers our country, and the Department is committed to vigorously enforcing them. Pourghannad and others who would attempt to thwart these laws need to know that their actions, which benefit Iran’s destabilizing efforts and make Americans less safe, will not go unpunished.”
Assistant Director John Brown of the FBI’s Counterintelligence Division said: “This case shows the FBI aggressively pursues those who allegedly break the law and violate sanctions against Iran. Iran remains determined to acquire U.S. technology with military applications, and the FBI is just as determined to stop such illegal activity. The charges against these three Iranian nationals, and the extradition of Mr. Pourghannad, demonstrate we take Iran's actions extremely seriously and will work with our partners to defeat them.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Iran’s continued pursuit of technology and materials to advance its nuclear program remains a threat to the US and the rest of the world. The FBI New York and SDNY will continue to pursue these illicit proliferation activities, and bring the full investigative and law enforcement capabilities of the U.S. to bear on those who would help Iran advance its dangerous agenda. If you aid Iran in its efforts, you will be held accountable.”
According to the allegations contained in the Indictment, unsealed in White Plains federal court[1]:
Between 2008 and July 2013, POURGHANNAD, SHOKRI, and FARIDMANESH lived and worked in Iran. During that period, they worked together to obtain carbon fiber from the U.S. and surreptitiously export it to Iran via third countries. In particular, SHOKRI worked to procure many tons of carbon fiber from the U.S.; POURGHANNAD agreed to serve as the financial guarantor for large carbon fiber transactions; and FARIDMANESH agreed to serve as the trans-shipper. Carbon fiber has a wide variety of uses, including in missiles, aerospace engineering, and gas centrifuges that enrich uranium.
In late 2007 and early 2008, SHOKRI and a Turkey-based co-conspirator (“CC-2”) successfully arranged for the illegal export and trans-shipment of carbon fiber from the U.S. to an Iranian company associated with SHOKRI (“Iranian Company-1”). Specifically, CC-2 contacted a U.S. supplier of carbon fiber, who in turn enlisted a third individual (“Individual-1”) for assistance with the transaction. Through Individual-1, CC-2 purchased carbon fiber from the U.S. supplier and arranged for the shipment of the carbon fiber from the U.S., through Europe and Dubai, United Arab Emirates, to Iranian Company-1, operated by SHOKRI, in Iran.
In May 2009, POURGHANNAD and SHOKRI attempted to arrange another illegal purchase and trans-shipment of carbon fiber from the U.S. to Iran. Specifically, Individual-1 returned a signed contract to POURGHANNAD for SHOKRI’s purchase of a large quantity of carbon fiber. Individual-1 then purchased the carbon fiber from a U.S. supplier and arranged for the carbon fiber to be exported from the U.S. to a third country (“Country-1”), en route to Iran. Country-1 authorities, however, interdicted the carbon fiber shipment before it could be trans-shipped to Iran.
In 2013, POURGHANNAD, SHOKRI, and FARIDMANESH again attempted to illegally procure and export carbon fiber from the U.S. to Iran. In the 2013 transaction, SHOKRI and POURGHANNAD negotiated with Individual-1 for the purchase and trans-shipment to Iran of more than 5 tons of carbon fiber. FARIDMANESH and POURGHANNAD further agreed with Individual-1 that the carbon fiber would be trans-shipped from the U.S. to Iran through Tbilisi, Georgia, with FARIDMANESH to serve as the trans-shipper. FARIDMANESH specifically instructed Individual-1 to change the shipping labels on the carbon fiber to reference “acrylic” or “polyester,” rather than “carbon fiber.” POURGHANNAD provided Individual-1 with the bank guarantee that was to serve as surety for a portion of the carbon fiber. In June 2013, Individual-1 informed POURGHANNAD, SHOKRI, and FARIDMANESH that the carbon fiber would soon be shipped from Manhattan and that Individual-1 would replace the carbon fiber labels with shipping labels referencing “acrylic” to evade U.S. export controls.
No one involved in these transactions obtained permission from the U.S. Department of Treasury, Office of Foreign Assets Control, to export the carbon fiber from the U.S.
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POURGHANNAD, 65, SHOKRI, 61, and FARIDMANESH, 48, all of whom are Iranian citizens, are each charged with one count of conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”), which carries a maximum sentence of 20 years in prison, and two counts of violation and attempted violation of IEEPA, each of which also carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI, and thanked the New York Field Office of the U.S. Department of Commerce, the U.S. Department of Justice’s National Security Division and Office of International Affairs, the U.S. Marshals Service, Homeland Security Investigations, and Immigration and Customs Enforcement for their assistance. Mr. Berman also thanked German law enforcement for their assistance in the arrest and apprehension of POURGHANNAD.
This case is being handled by the Office’s Terrorism and International Narcotics Unit, with assistance from the Counterintelligence and Export Control Section of the National Security Division. Assistant United States Attorney Gillian Grossman is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Madison County Woman Agrees to Pay Damages for Submitting False Claims to AmeriCorps ProgramRead the Press Release
LEXINGTON, Ky. – A Madison County woman has agreed to resolve civil allegations that she violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims, agreeing to pay the federal government, after admitting that she falsified timesheets that caused her to wrongfully receive federal funds from the AmeriCorps Program.
The Madison County woman was a member of AmeriCorps, a national service initiative administered by the Corporation for National and Community Service (CNCS). AmeriCorps is a federally funded network of national service programs that address critical community needs like increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more. Frequently, federal AmeriCorps grants are provided to state service commissions, tribes, and local, regional, and national organizations to execute these service initiatives. Members of AmeriCorps commit to service for a period of three months to a year in exchange for a living allowance, educational benefits, and other perks.
The PartnerCorps Science, Technology, Engineering and Mathematics (“PartnerCorps STEM”) AmeriCorps program, operated by Berea College, is a recipient of AmeriCorps grants. PartnerCorps STEM increases student competency in STEM fields through the mentorship and tutoring of high school students in Madison County, Kentucky. The AmeriCorps members who provide these services receive a monthly living allowance for the service performed.
During the 2017-2018 school year, the AmeriCorps member in question committed to service with PartnerCorps STEM. In exchange for her tutoring and mentoring activities at Madison Southern High School (“MSHS”), the member received a monthly living allowance. From January to March 2018, however, the member did not report to her service site or perform any AmeriCorps service; nevertheless, she submitted six timesheets falsely representing that she had performed her duties at MSHS during the relevant time period. Relying on the false timesheets, PartnerCorps STEM provided the member with a CNCS-funded living allowance in January 2018 and February 2018. Further, when PartnerCorps STEM realized that the AmeriCorps member had stopped reporting to serve and withheld her living allowance for March 2018, the AmeriCorps member escalated her fraud scheme by inquiring as to the status of her missed payment, knowing that her timesheets were false and that she had performed no service during that time frame.
“When false claims are submitted to national service programs, it depletes their limited resources and undermines their valuable work, which is designed to benefit and improve our communities,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “In this case, each false timesheet resulted in more than simply the loss of money; it caused a loss of valuable high school tutoring, increased college opportunities within a community, and the promotion of critical academic fields that support and benefit our entire community. We recognize these cases have both monetary and non-monetary impacts and we remain committed to serving as stewards for the integrity of these important programs.”
“AmeriCorps’ purpose is to engage young adults in serving their communities, not stealing from them,” said Inspector General Deborah J. Jeffrey. “We applaud our DOJ partners for recognizing that timesheet fraud is serious and that it has an even greater impact when it involves national service. The loss in these cases is measured not only by the theft of taxpayer funds, but in the loss of critical assistance to our at-risk communities. We will continue to vigorously pursue timesheet fraud against CNCS programs and its beneficiaries.”
The Corporation for National and Community Service, Office of Inspector General, performed the investigation, and Assistant United States Attorney Mary Melton handled the matter for the United States.
Luzerne County Man Sentenced to 14 Years in Prison for Armed Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Derek Spaide, age 27, of Hanover Township, Pennsylvania, was sentenced on July 15, 2019, by United States District Court Judge Malachy E. Mannion to 14 years’ imprisonment for the armed robbery of a bank in Luzerne County.
According to United States Attorney David J. Freed, Spaide previously pleaded guilty to the charges of armed bank robbery and brandishing a firearm in furtherance of a crime of violence in connection with the robbery of the Luzerne National Bank in Plains Township, Luzerne County, which occurred on May 16, 2018. On that date, Spaide placed a t-shirt over his face, entered the bank, pointed a rifle at bank employees, and demanded money. Approximately $8,204 was taken in the robbery. Spaide then entered a vehicle driven by his co-defendant, Gerald Pambianco, age 29, of Plains Township, and a high-speed chase with the police ensued. Police were able to disable the getaway vehicle on Route 309 in Plains Township. Spaide then fled from the disabled vehicle and attempted to enter the vehicle of a bystander stopped in traffic. Spaide was then apprehended by the police.
Gerald Pambianco is awaiting sentencing.
This matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Plains Township Police Department, and the Hanover Township Police Department. Assistant U.S. Attorney Robert J. O’Hara prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Local Businessman Pleads Guilty to Bribery Scheme Involving Former St. Louis County Executive Steve StengerRead the Press Release
St. Louis, MO –John Rallo, 53, formerly of St. Louis County, pleaded guilty to three counts of Honest Services Mail Fraud/Bribery. Rallo appeared in federal court this afternoon before U.S. District Judge E. Richard Webber who accepted his plea and set sentencing for October 15, 2019.
According to court documents, beginning in October 2014 and continuing through December 31, 2018, former St. Louis County Executive Steve Stenger schemed to defraud and deprive the citizens of St. Louis County of their right to his honest and faithful services, and the honest and faithful services of former CEO of the St. Louis Economic Development Partnership, Sheila Sweeney, through a pay to play bribery scheme. The purpose of the scheme was for Stenger to secretly use his official position to enrich himself through soliciting and accepting campaign contributions from businessman John Rallo and other individuals in exchange for favorable official action in the awarding of contracts and grants through St. Louis County and the St. Louis Economic Development Partnership.
Stenger, in exchange for campaign donations and several fundraising events hosted by John Rallo, took official action to insure that Rallo and his company, Cardinal Insurance, obtained insurance contracts through St. Louis County during 2015 and 2016. Further, Stenger took official action to insure that John Rallo and his company, Cardinal Creative Consulting, obtained a sham 2016 consulting contract through the St. Louis County Port Authority. Additionally, Stenger took official action to insure that John Rallo and his company, Wellston Holdings, LLC, obtained land contracts for two industrial properties in Wellston, Missouri which were held by the Land Clearance for Redevelopment Authority of St. Louis County during 2016 and 2017. Rallo, Stenger, and Sweeney took steps to hide, conceal and cover up the illegal bribery scheme, including making false public statements.
Rallo faces a maximum penalty of 20 years in prison and a $250,000 fine for each count. Restitution is also mandatory.
In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation and the Postal Inspection Service are investigating this case with the assistance of the Internal Revenue Service Criminal Investigations. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Lloyd Kidd Convicted in Manhattan Federal Court of Sex Trafficking and Child Pornography Production OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that a federal jury yesterday found LLOYD KIDD, a/k/a “Chris Kidd,” a/k/a “Gerard Agard,” a/k/a “Red,” guilty of sex trafficking of a minor and enticement of a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, following a six-day jury trial before U.S. District Judge Victor Marrero.
Manhattan U.S. Attorney Geoffrey Berman said: “Lloyd Kidd has rightly been convicted of the shameless and exploitive victimization of an underage girl. Kidd preyed on a particularly vulnerable victim, recruiting a minor residing at a foster care facility. He now awaits sentencing for his appalling crimes.”
According to the allegations contained in the Indictment and evidence presented during the trial in Manhattan federal court:
From at least in or about spring 2015 through at least February 2017, KIDD engaged in sex trafficking of a minor and enticement of a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The defendant recruited, enticed, harbored, transported, provided, obtained, and maintained a minor victim (“Victim-1”) for the purpose of commercial sex.
The defendant recruited Victim-1 when she was living in a foster care facility in New York, New York. The defendant used Backpage.com to post advertisements of Victim-1 for commercial sex, and then directed Victim-1 to meet customers to engage in commercial sex out of his apartment in Brooklyn, New York.
In addition, the defendant produced sexually explicit images and a video recording of Victim-1 performing sexually explicit activities, which constituted child pornography. The defendant used at least one of the sexually explicit images of Victim-1 to advertise her for commercial sex.
This prosecution is part of an ongoing investigation that, including KIDD, has charged 19 defendants, set forth in eight indictments, for the sex trafficking of at least 13 minor girls and young adults in New York State’s social services system.
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KIDD, 28, of Brooklyn, New York, was convicted of one count of sex trafficking of a minor, which carries a mandatory minimum sentence of 10 years in prison and a statutory maximum sentence of life in prison, and one count of enticement of a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, which carries a mandatory minimum sentence of 15 years and a statutory maximum sentence of 30 years. The mandatory minimum sentences and maximum potential sentences are prescribed by Congress and are provided for informational purposes only, as any sentencing of the defendant will be determined by the judge.
KIDD will be sentenced by Judge Marrero on November 1, 2019.
Any individuals who believe that they have information that may be relevant to this investigation should contact the Federal Bureau of Investigation (“FBI”) at 1-212-384-1000 or https://tips.fbi.gov/.
Mr. Berman thanked the FBI and the New York City Police Department for their outstanding work in this matter and, in particular, the New York Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Mollie Bracewell, Elinor Tarlow, Jacob Gutwillig, and Sagar Ravi are in charge of the prosecution.
Lempster Man Sentenced to 150 Months for Methamphetamine TraffickingRead the Press Release
CONCORD - Jesse R. Lohman, 37, of Lempster, was sentenced on Monday to 150 months in federal prison for possession of methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on August 31, 2018, police encountered Lohman in the driver’s seat of a parked car at the Route 3A Park and Ride parking lot in Bow, New Hampshire. Lohman was alone in the car. After determining that there was a warrant for Lohman’s arrest, officers detained him and impounded the car. During a subsequent search of the car, officers discovered six bags inside a glass case that contained approximately 76.1 grams of 99 percent pure methamphetamine.
Lohman was a known member of the Brothers of White Warriors (“BOWW”), a prison gang.
Lohman previously pleaded guilty on March 29, 2019. After serving his prison sentence, he will be on supervised release for ten years.
“The heavy prison term imposed in this case should send a message to those inclined to trade in methamphetamine in New Hampshire,” said U.S. Attorney Murray. “This is a dangerous substance, made more dangerous when appearing in this highly pure form. In order to deter the distribution of this drug, we will continue to aggressively seek the imposition of lengthy sentences against dealers.”
"The methamphetamine Mr. Lohman was prepared to poison our communities with was concealed in a glasses case - an item that may have seemed completely innocuous to even his would-be victims. But there was nothing harmless about the highly addictive and potentially lethal drug that was hidden inside," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "Today's sentence prevents one more violent, career criminal from staking his claim to the bleak landscape of addiction here in New Hampshire, and the FBI will continue to work with our law enforcement partners to disrupt the drug trafficking activities of others like him."
This matter was investigated by the Federal Bureau of Investigation and the Bow Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Lackawanna Man Going to Prison for Selling CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051Buffalo, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Grant Easley, 33, of Lackawanna, NY, who was convicted of possessing with intent to distribute and distributing crack cocaine, was sentenced to serve 40 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that the Hamburg and Lackawanna Police Departments, and the Drug Enforcement Administration began investigating the narcotics trafficking activities of the defendant in July 2018. During the course of the investigation, officers conducted a total of five controlled purchases of cocaine and/or crack cocaine from Easley between July 13 and August 21, 2018.
The sentencing is the result of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel; the Hamburg Police Department, under the direction of Chief Gregory Wickett; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Knoxville Man Sentenced to 324 Months in Prison for Production and Possession of Child PornographyRead the Press Release
KNOXVILLE, Tennessee - Dustin Schaud Fox, 29, of Knoxville, Tennessee, was sentenced by the Honorable Pamela L. Reeves, Chief U.S. District, to serve 324 months in federal prison for coercing a minor to engage in sexually explicit conduct for the purpose of producing child pornography and for possessing child pornography. Following his imprisonment, Fox will be supervised by the U.S. Probation Office for 20 years and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
The investigation arose after the mother of a 14 year-old girl in Texas informed a local law enforcement agency that an adult male, later identified as Fox, had established an online relationship with her daughter and had directed the minor to record videos of herself engaged in sexually explicit conduct and send them to him through social media.
“This prosecution represents part of our ongoing efforts to work with law enforcement agencies to protect children from persons who would manipulate them online for child pornography,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. U.S. Attorney Overbey encouraged parents to be vigilant concerning the online activities of their children, stating, “These child predators secretly operate from the shadows of the internet, seek out vulnerable minors, pretend to befriend them, and then prey upon the minors’ vulnerability, unbeknownst to the parents.”
The case was investigated locally by the Knoxville Police Department’s Internet Crimes Against Children unit. Assistant U.S. Attorney Matthew T. Morris represented the United States at trial.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
Kansas Sex Offender Sentenced to 30 Years in Prison for Distributing Child PornographyRead the Press Release
BOSTON – A previously convicted sex offender was sentenced today in federal court in Boston to 30 years in prison for distributing child pornography.
Christopher Saemisch, 61, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 30 years in prison and a lifetime of supervised release. In March 2019, a federal jury convicted Saemisch of distributing child pornography to a currently incarcerated federal inmate.
In 1997, Saemisch was convicted in federal court for conspiring to sexually exploit children, aiding and abetting the sexual exploitation of children, conspiring to distribute and receive child pornography, and distributing and receiving child pornography. He was also convicted by a Kansas court in 1999 for aggravated indecent liberties with a child under 14.
In April 2016, agents received information from a federal inmate that Saemisch, who at the time was living in Kansas City, Kansas, admitted to looking at and storing child pornography and wanting to travel to Europe to have sex with children. Saemisch boasted to the inmate about his access to children and his new job babysitting four children.
During the inmate’s communications with Saemisch, they used special coded language to discuss the collection and distribution of child pornography. The inmate confirmed that he and Saemisch used the code word “antiques,” when referring to child pornography and the code word “puppies,” to refer to children.
On May 3, 2016, agents, pretending to be the inmate, began communicating with Saemisch. During the monitored conversations on various messaging apps and web platforms, Saemisch directed the undercover agents to set-up accounts to receive and exchange child pornography. He also sent them child pornography that he had stored on various file storage sites. Saemisch was arrested on May 6, 2016, while attending an event at a nudist campsite.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and J. Ray Ormond, Northeast Regional Director of the Federal Bureau of Prisons, made the announcement. Assistance was also provided by the United States Attorney’s Office in the District of Kansas, as well as the Johnson County and Leavenworth County Sheriffs’ Departments in Kansas. Assistant U.S. Attorneys Jordi de Llano, James Herbert and Anne Paruti of Lelling’s Criminal Division prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Kansas City, Missouri, Woman Sentenced to Prison for Wire Fraud and Using Stolen Identities to File False Tax ReturnsRead the Press Release
A Kansas City, Missouri, woman was sentenced to prison today for wire fraud and aggravated identity theft related to the filing of false tax returns announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister for the District of Kansas.
U.S. District Court Judge Carlos Murguia of the District of Kansas sentenced Antoinette Winston, also known as Tweety, to 34 months in prison and ordered her to pay $165,392.48 in restitution to the Internal Revenue Service (IRS). On Aug. 21, 2018, Winston pleaded guilty to one count of wire fraud and one count of aggravated identity theft.
According to documents filed with the court, from 2012 to May 2015, Winston stole and used personal identifying information, including names and social security numbers of other individuals in order to file fraudulent income tax returns requesting refunds from the IRS. Winston also used this information to obtain pre-paid debit cards in the names of these individuals, and directed the IRS to pay the fraudulent refunds to these pre-paid debit cards. After the IRS deposited the refunds on the pre-paid debit cards, Winston used the cards to withdraw cash at banks and retail stores. The intended tax loss to the IRS from Winston’s scheme was more than $250,000.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Scott Rask and Assistant Chief Matthew J. Kluge of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kansas City Woman Sentenced for Wire Fraud and Using Stolen Identities to File False Tax ReturnsRead the Press Release
WASHINGTON – A Kansas City, Missouri, woman was sentenced to prison today for wire fraud and aggravated identity theft related to the filing of false tax returns announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister for the District of Kansas.
U.S. District Court Judge Carlos Murguia of the District of Kansas sentenced Antoinette Winston, also known as Tweety, to 34 months in prison and ordered her to pay $165,392.48 in restitution to the Internal Revenue Service (IRS). On Aug. 21, 2018, Winston pleaded guilty to one count of wire fraud and one count of aggravated identity theft.
According to documents filed with the court, from 2012 to May 2015, Winston stole and used personal identifying information, including names and social security numbers of other individuals in order to file fraudulent income tax returns requesting refunds from the IRS. Winston also used this information to obtain pre-paid debit cards in the names of these individuals, and directed the IRS to pay the fraudulent refunds to these pre-paid debit cards. After the IRS deposited the refunds on the pre-paid debit cards, Winston used the cards to withdraw cash at banks and retail stores. The intended tax loss to the IRS from Winston’s scheme was more than $250,000.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Scott Rask and Assistant Chief Matthew J. Kluge of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Announces Results in Fight Against the Opioid Crisis at One Year Mark of Operation S.O.S.Read the Press Release
One year ago, the Justice Department announced the formation of Operation Synthetic Opioid Surge (S.O.S.), a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers.
Over the past year, 10 districts with some of the highest drug overdose death rates in the country, each targeted a county where they focused on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity. These districts worked with DEA Special Operations Division to track and coordinate these street-level cases and also received additional assistance from the Organized Crime and Drug Enforcement Task Forces (OCDETF).
“Our attorneys and law enforcement agents have spent the past year working tirelessly to disrupt the networks engaged in the trafficking of synthetic opioids. Today we are proud to share their successes in 10 of the districts most affected by this scourge,” Deputy Attorney General Jeffrey A. Rosen said. “The Department of Justice’s efforts have resulted in countless successes from California to Maine. We have successfully sought enhanced sentences in cases that resulted in deadly overdoses, and we have boosted cooperation among the partners involved. There remains much work to be done, but Operation S.O.S. marks a crucial turning point in the fight against synthetic opioids.”
The 10 participating districts and some of their successes are listed below:
- The Eastern District of California has reported a total of 27 Operation S.O.S. investigations in which the narcotics seized have included kilogram-quantities of fentanyl, heroin, cocaine, methamphetamine, oxycodone, and hydrocodone.
- The Eastern District of Kentucky has reported 15 investigations with six to eight new investigations being added monthly and has charged nine sentence-enhanced “death resulting” cases.
- The District of Maine has an additional 30 cases as a result of Operation S.O.S.
- The District of New Hampshire has had 41 cases through Operation S.O.S. that have resulted in indictments with fentanyl being distributed in 39 of those cases amongst other drugs.
- The Northern District of Ohio has indicted 71 defendants under Operation S.O.S., and has seen a 12 percent decrease in overdose deaths from the previous year.
- The Southern District of Ohio has 58 Operation S.O.S. investigations of the 58 investigations, 52 involve fentanyl distribution.
- The Western District of Pennsylvania noticed the decline in overdose deaths in the county they originally had targeted. This decline was attributed to a large number of people moving out of the targeted county to attempt to circumvent the U.S. Attorney’s Office’s efforts. The U.S. Attorney’s Office has refocused their resources to target the county where fatal overdoses have increased the most.
- The Eastern District of Tennessee has reported seven Operation S.O.S. cases involving 39 defendants, with a number of those including “death resulting” cases.
- The Northern District of West Virginia has 22 Operation S.O.S. cases with one “death resulting” prosecution. One of these investigations resulted in eight separate cases involving 35 defendants.
- The Southern District of West Virginia has 62 cases pending as a result of Operation S.O.S. with 13 convictions. Just recently, a 1.2 kilogram mixture of fentanyl and heroin was seized from a defendant in one of those cases.
Jury Convicts Four Drug Smugglers Attempting to Smuggle 182 Kilograms of Cocaine into United States TerritoryRead the Press Release
On June 28, 2019, a jury in the Southern District of Alabama convicted four men, Angel Castro Garcia, Pedro Dino Cedado Nunez, Manely Enriquez, and Mike Castro Martinez, all Dominican Republic nationals, for attempting to smuggle 182 kilograms of cocaine from the Dominican Republic to Puerto Rico. All four defendants will be sentenced on October 7, 2019 by United States District Judge Jeffrey U. Beaverstock.
The case arose when, on December 24, 2018, a United States Border Patrol aircraft spotted a suspected drug smuggling vessel operating in international waters northeast of the Dominican Republic. The vessel was travelling on a known drug smuggling route to Puerto Rico. The aircraft notified the United States Coast Guard (USCG) and the USCG Cutter “Richard Dixon” proceeded toward the drug smuggling vessel. The USCG Cutter then launched an Over the Horizon (OTH) Zodiac type vessel from the Cutter with a four man crew.
The OTH vessel interdicted the 25-foot Yola type drug smuggling vessel operating in international waters northeast of the Dominican Republic. The drug smugglers attempted to jettison most of the cocaine when they spotted the USCG OTH vessel. The four man Coast Guard crew recovered approximately 182 kilograms of cocaine in the water and on board the drug smuggling vessel. The cocaine had a retail value of nearly $30 million dollars in the United States.
The trial occurred before United States District Court Judge Jeffrey U. Beaverstock on June 27 and June 28, 2019. The case was prosecuted by George F. May, Deputy Criminal Chief and Luis F. Peral, Lead Organized Crime Drug Enforcement Task Force (OCDETF) Attorney. Appellate Chief Scott Gray also provided invaluable assistance on the case.
Jefferson County man indicted on heroin, fentanyl, and cocaine chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Enrico Fionn Hernandez, of Harpers Ferry, West Virginia, appeared today in federal court on drug charges after being indicted by a federal grand jury sitting in Martinsburg on May 21, 2019 , United States Attorney Bill Powell announced.
Hernandez, also known as “Rico,” age 46, was indicted on one count of “Distribution of Cocaine,” one count of “Distribution of Fentanyl,” one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location,” one count of “Distribution of Heroin Within 1,000 Feet of a Protected Location,” one count of “Aiding and Abetting Distribution of Cocaine Base,” one count of “Aiding and Abetting Distribution of Heroin and Fentanyl,” one count of “Distribution of Cocaine Base,” two counts of “Possession with Intent to Distribute Cocaine Base,” one count of “Possession with Intent to Distribute Heroin and Fentanyl,” and two counts of “Possession with Intent to Distribute Cocaine Hydrochloride.”
Hernandez is accused of selling heroin, fentanyl, and cocaine in June 2017 in Berkeley and Jefferson Counties. The government is seeking the forfeiture of $647 seized from Hernandez during a traffic stop and $4,900 seized from Hernandez’s residence.
Hernandez faces at least one and up to 40 years incarceration and a fine of up to $2,000,000 for each of the distribution near a protected location charges, and up to 20 years incarceration and a fine of up to $1,000,000 for each of the other counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
U.S. Magistrate Judge Robert W. Trumble presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Jacksonville Couple Sentenced to Prison for Possessing Firearms and A Destructive DeviceRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Robert Randall Deen (60, Jacksonville) and Shannon Jeanette Heller (42, Jacksonville) to three years and four months in federal prison, for possessing firearms while an unlawful user of a controlled substance (Deen), and possessing firearms as a convicted felon (Heller). Heller had pleaded guilty on January 24, 2019. Deen had pleaded guilty on March 12, 2019.
According to court documents, in late November 2018, Deen and Heller were residing in an apartment on Gate Parkway in Jacksonville. A confidential informant told an ATF agent that Deen had firearms to sell, including AR-type rifles. At the time, Deen had been referred to a felony drug court diversion program in Duval County following his arrest in October 2018 for possessing cocaine and a handgun.
On December 3 and 6, 2018, Heller, who was Deen’s long-time girlfriend, sold a total of three rifles and two pistols to the confidential informant, at Deen’s direction. At the time of the incident, Deen was a habitual drug user and Heller was a convicted felon. Therefore, both were prohibited from possessing firearms or ammunition under federal law.
On December 7, 2018, ATF executed a search warrant at the couple’s apartment and recovered two rifles, a pistol, a shotgun, and a flare launcher with bore adapters that converted it into a destructive device. Both Heller and Deen were arrested the same day. Heller admitted that she had traded two other firearms to drug dealers in order to settle drug debts.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jackson County Man Sentenced to 14 Years in Federal Prison for Methamphetamine OffenseRead the Press Release
James E. Sizemore, a/k/a "Jimmy," of Murphysboro, has been sentenced to 168 months in federal prison on a methamphetamine violation, U.S. Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Sizemore pleaded guilty back in January to a one-count indictment charging conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing hearings established that Sizemore was involved with numerous others in the distribution of methamphetamine in Jackson County. On November 14, 2017, Sizemore sold methamphetamine to a confidential source working for law enforcement. At sentencing, the judge found that Sizemore was responsible for the distribution of more than 1.4 kilograms of ice (methamphetamine with a purity level of at least 80%). The offense occurred between June 2016 and November 2017.
Sizemore’s sentence includes three years of supervised release.
The investigation was conducted by the Jackson County Sheriff’s Office and the Carbondale Police Department. The Jackson County States Attorney’s Office also assisted in the investigation.
International Fugitive/Cuban National Extradited from Italy to Face Drug and Gun ChargesRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of a 2017
indictment charging Nelson Pablo Yester-Garrido (62, Cuba) with conspiracy to distribute large amounts of high-grade marijuana and possessing a firearm in furtherance of that conspiracy. If convicted on all counts, Yester-Garrido faces a maximum penalty of life in federal prison.According to court documents, from the late 1980s through early 1997, Yester-Garrido was part of a group involved in importing kilogram amounts of cocaine and other narcotics into the United States, including by negotiating the purchase of a Russian diesel submarine for Colombian drug suppliers. According to law enforcement, around 1997, Yester-Garrido fled to South Africa to escape prosecution related to charges filed in the Southern District of Florida (which have since been dismissed).
In January 2015, the DEA began investigating Yester-Garrido and several other Florida-based individuals who were distributing large amounts of high-grade marijuana to individuals and groups in central Florida. In January 2017, an indictment was returned in the Middle District of Florida charging three of Yester-Garrido’s co-conspirators (Juan Almeida, Andrew Cassara, and Wade Jones, Jr.) with conspiracy to distribute marijuana. In 2018, Almeida, Cassara, and Jones were sentenced to varying terms of imprisonment.
In October 2017, a grand jury in the Middle District of Florida returned an indictment charging Yester-Garrido with conspiracy to possess with the intent to distribute marijuana and possessing a firearm in furtherance of a drug trafficking crime. Later that month, based upon a provisional arrest warrant requested by the U.S. government, Italian authorities apprehended Yester-Garrido at the Fiumicino Airport in Rome, Italy. In July 2019, the Italian judicial authorities and the Ministry of Justice, granted the request for the extradition of Yester Garrido to the Middle District of Florida.
“This is a great example of law enforcement and prosecutors from different countries working together to safeguard communities and have a global impact on crime,” said Marcus R. Anderson, Assistant Special Agent in Charge of DEA Miami Division, Orlando District Office.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Drug Enforcement Administration and the Federal Bureau of Investigation. The Office of International Affairs of the Criminal Division of the Department of Justice provided significant support with the defendant’s extradition. The U.S. Marshals Service also provided critical assistance by extraditing Yester-Garrido from Italy to the Middle District of Florida. This case will be prosecuted by Assistant United States Attorney Sean P. Shecter.
Indictment: Guns and Drugs Were in Defendant’s GarageRead the Press Release
WICHITA, KAN. – A Wichita man was indicted today on a federal firearm charge, U.S. Attorney Stephen McAllister said.
Andrew Patrick Rizzo, 26, Wichita, Kan., is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking. The crime is alleged to have occurred July 11, 2019, in Wichita.
According to court records, investigators served a search warrant at Rizzo’s home in the 4800 block of east Gilbert. They found methamphetamine, heroin, marijuana, a digital scale and pipes for smoking narcotics. They also found a 9 mm Smith & Wesson handgun that had been reported stolen and a bulletproof vest.
If convicted, Rizzo could face a penalty of not less than five years in federal prison. The Sedgwick County Sheriff’s Office investigated. Special Assistant U.S. Attorney Katherine Andrusak is prosecuting.
OTHER INDICTMENTS
Fernando Campos-Zubia, who is not a citizen of the United States, is charged with one count of unlawfully re-entering the United States after being deported. If convicted he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
Bruce L. Hay, 50, Osawatomie, Kan., is charged with four counts of theft of public money. The indictment alleges Hay made false claims in order to receive disability payments from the Department of Veterans Affairs Compensation and Pension Benefits. The crimes are alleged to have occurred in 2016 and 2017 in Miami, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The Veterans Administration – Office of Inspector General investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
Deonte L. Jordan, 20, Wichita, Kan., is charged with one count of unlawful possession of a firearm by a convicted felon. The crime is alleged to have occurred July 4, 2019, in Sedgwick County, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Ryan McCarty is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Alien Sentenced for Concealing the Smuggling of Aliens within the United StatesRead the Press Release
Gulfport, Miss. – Alfonso Tellez-Lopez, 40, an illegal alien from Mexico, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr., to time served, which was 170 days imprisonment, as well as one year of supervised release, for misprision of a felony, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector. Alfonso Tellez-Lopez will also be subject to immigration removal proceedings. If he unlawfully returns to the United States after being removed, he could face additional prosecution and imprisonment.
Misprison of a felony means that a person has known that a felony was being committed and did not report it to officials at the earliest opportunity, and took some affirmative action to conceal the crime. Alfonso Tellez-Lopez was charged in connection with the unlawful transportation of aliens within the United States by his brother, Javier Tellez-Lopez. Alfonso Tellez-Lopez pled guilty before Judge Guirola on May 28, 2019.
On May 2, 2019, Alfonso Tellez-Lopez’s brother, Javier Tellez-Lopez, pled guilty to conspiracy to unlawfully transport aliens within the United States, and is scheduled to be sentenced on August 7, 2019, by Judge Guirola. Javier Tellez-Lopez, who also is an illegal alien from Mexico, faces a potential maximum sentence of 10 years imprisonment, not more than 3 years of supervised release, a maximum $250,000 fine, $5,100 in assessments, and will be subject to immigration removal proceedings.
On January 28, 2019, an interdiction agent of the South Mississippi Metro Enforcement Team conducted a lawful traffic stop on a vehicle on interstate I-10 eastbound in Jackson County. The agent observed eight occupants of the vehicle driven by Javier Tellez-Lopez. Alfonso Tellez-Lopez was riding in the front passenger seat and had served as a co-driver. Border Patrol Agents arrived on the scene and interviewed the occupants of the vehicle as to their citizenships, determining that none had proper documents and all were illegally present in the United States. Of the 8 total vehicle occupants (2 drivers and 6 passengers), all were illegal aliens from Mexico. All occupants were arrested and transported to the Border Patrol Station in Gulfport. A Homeland Security Investigations Special Agent joined Border Patrol Agents and determined the 6 passengers were being smuggled within the United States.
Further investigation determined that 5 of the 6 passengers had unlawfully returned after being formally removed from the United States. Each of these 5 passengers were separately prosecuted by the U.S. Attorney’s Office, pled guilty, and were convicted of the felony offense of illegal return by an alien after removal.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Homeland Security Investigations, the United States Border Patrol, the South Mississippi Metro Enforcement Team, the Jackson County Sheriff’s Department and the City of Gautier Police Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Illegal Alien Pleads Guilty to Unlawful Reentry After RemovalRead the Press Release
Gulfport, Miss. – Jose Manuel Cristobal-Joaquin, 33, an illegal alien from Mexico, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr. to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, and Scott Sutterfield, Acting Field Office Director of Immigration and Customs Enforcement, Enforcement and Removal Operations in New Orleans.
Cristobal-Joaquin was found guilty of the felony offense and is scheduled to be sentenced by Judge Guirola on October 16, 2019, at 10:00 a.m. He faces a maximum penalty of 2 years in prison and a $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
On or about May 29, 2019, the Jackson County Sheriff’s Office notified Immigration & Customs Enforcement (ICE) that Cristobal-Joaquin had been arrested by the South Mississippi Metro Enforcement Team for public drunk and a misdemeanor controlled substance possession. Cristobal-Joaquin confessed to being an illegal alien from Mexico in an interview with ICE/Enforcement Removal Operations (ERO). Cristobal-Joaquin was arrested by ERO and transported to the Gulfport ICE Office.
Further investigation revealed that Cristobal-Joaquin had been physically removed from the United States pursuant to a lawful removal order on or about November 2, 2018, and did not have permission to reenter the United States.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement Removal Operations, and the Harrison County Sheriff’s Office. Assistant United States Attorney Stan Harris is the prosecutor for this case.
ITT Cannon to Pay $11 Million to Settle False Claims Allegations for Untested Electrical ConnectorsRead the Press Release
ITT Cannon has agreed to pay the United States $11 million to settle False Claims Act allegations that it supplied electrical connectors to the military that had not been properly tested, the Justice Department announced today. ITT sold the untested connectors both directly to the Government and through distributors and other government contractors which incorporated them into technology and equipment sold to the Government.
“Failure to comply with testing requirements undermines the integrity of essential government equipment and technology, and thereby reduces its durability and reliability,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “This settlement demonstrates that we will hold contractors accountable when they fail to deliver what they were paid to deliver.”
“Defense contractors agree to follow strict manufacturing and testing protocols to ensure that our government receives only the best equipment,” said Nicola T. Hanna, U.S. Attorney for the Central District of California. “This multimillion dollar settlement is designed to ensure that ITT does not engage in this type of misconduct in the future, and this case should serve as a warning to any government contractor who is not completely upfront about its testing results.”
The settlement resolves allegations that from September 2008 to March 21, 2017, ITT did not conduct the required periodic testing on six models of electrical connectors. In December 2010, the Government learned that ITT had not done this testing and ITT promised the Government that it would conduct remedial testing and report the result to the Government. Shortly thereafter, in February 2011, ITT experienced several failures in its remedial testing. ITT did not immediately disclose these failures but represented to the Government that it was merely behind in the remedial testing.
In March 2017, the Defense Logistics Agency (DLA) issued an order stopping the shipment of the six connectors. In June 2017, ITT issued six Government Industry Data Exchange Program notices (GIDEP) disclosing to industry its failure to conduct required testing, its test failures, and changes in the processes, materials, construction, sourcing and design of the connectors. DLA then removed the six ITT connectors from the Qualified Products List (QPL). The QPL lists products that have met the qualification requirements set forth in the applicable Military Specifications (Mil Specs), which are uniform engineering and technical requirements for certain products used by the Department of Defense. DLA’s removal of ITT from the QPL precluded ITT from selling parts to the military covered by the Mil Specs. Recently, ITT has requalified one of the connectors for sale to the Government.
The settlement resolves allegations filed in a lawsuit by Ralph Tatgenhorst, the former regional quality manager at ITT’s Santa Ana facility, in federal court in Los Angeles, California, under the whistleblower (or “qui tam”) provisions of the False Claims Act. These provisions permit private individuals to sue on behalf of the Government for false claims and to share in any recovery. Mr. Tatgenhorst will receive $2,090,000 as his share of the settlement amount.
The settlement with ITT was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch; the United States Attorney’s Office for the Central District of California; the Defense Logistics Agency; the Defense Criminal Investigative Service; the Naval Criminal Investigative Service; the National Reconnaissance Office; the Office of the Inspector General for the National Aeronautics and Space Administration; the Air Force Office of Special Investigations; the Defense Contracts Audit Agency; and the United States Coast Guard Office of Inspector General. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
The lawsuit is captioned U.S. ex rel. Tatgenhorst v. ITT Corporation, PEI/Genesis, Inc., No. 14-7424 JAK (C.D.Cal.).
ITT Cannon to Pay $11 Million to Settle False Claims Act Allegations that It Sold Untested Electrical Connectors to the MilitaryRead the Press Release
LOS ANGELES – ITT Cannon has agreed to pay the United States $11 million to settle False Claims Act allegations that it supplied electrical connectors to the military that had not been properly tested, the Justice Department announced today. ITT sold the untested connectors both directly to the Government and through distributors and other government contractors which incorporated them into technology and equipment sold to the Government.
“Defense contractors agree to follow strict manufacturing and testing protocols to ensure that our government receives only the best equipment,” said Nick Hanna, U.S. Attorney for the Central District of California. “This multimillion dollar settlement is designed to ensure that ITT does not engage in this type of misconduct in the future, and this case should serve as a warning to any government contractor who is not completely upfront about its testing results.”
“Failure to comply with testing requirements undermines the integrity of essential government equipment and technology, and thereby reduces its durability and reliability,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “This settlement demonstrates that we will hold contractors accountable when they fail to deliver what they were paid to deliver.”
The settlement resolves allegations that from September 2008 to March 21, 2017, ITT did not conduct the required periodic testing on six models of electrical connectors. In December 2010, the Government learned that ITT had not done this testing and ITT promised the Government that it would conduct remedial testing and report the result to the Government. Shortly thereafter, in February 2011, ITT experienced several failures in its remedial testing. ITT did not immediately disclose these failures but represented to the Government that it was merely behind in the remedial testing.
In March 2017, the Defense Logistics Agency (DLA) issued an order stopping the shipment of the six connectors. In June 2017, ITT issued six Government Industry Data Exchange Program notices (GIDEP) disclosing to industry its failure to conduct required testing, its test failures, and changes in the processes, materials, construction, sourcing and design of the connectors. DLA then removed the six ITT connectors from the Qualified Products List (QPL). The QPL lists products that have met the qualification requirements set forth in the applicable Military Specifications (Mil Specs), which are uniform engineering and technical requirements for certain products used by the Department of Defense. DLA’s removal of ITT from the QPL precluded ITT from selling parts to the military covered by the Mil Specs. Recently, ITT has requalified one of the connectors for sale to the Government.
The settlement resolves allegations filed in a lawsuit by Ralph Tatgenhorst, the former regional quality manager at ITT’s Santa Ana facility, in federal court in Los Angeles, California, under the whistleblower (or “qui tam”) provisions of the False Claims Act. These provisions permit private individuals to sue on behalf of the Government for false claims and to share in any recovery. Mr. Tatgenhorst will receive $2,090,000 as his share of the settlement amount.
The settlement with ITT was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch; the United States Attorney’s Office for the Central District of California; the Defense Logistics Agency; the Defense Criminal Investigative Service; the Naval Criminal Investigative Service; the National Reconnaissance Office; the Office of the Inspector General for the National Aeronautics and Space Administration; the Air Force Office of Special Investigations; the Defense Contracts Audit Agency; and the United States Coast Guard Office of Inspector General. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
This matter was litigated by Assistant United States Attorney Kent A. Kawakami of the Civil Division’s Civil Fraud Section and Department of Justice Senior Trial Counsel Alicia Bentley.
The lawsuit is captioned U.S. ex rel. Tatgenhorst v. ITT Corporation, PEI/Genesis, Inc., No. 14-7424 JAK (C.D.Cal.).
Hope Mills Man Sentenced to More Than 13 Years on Gun and Drug ChargesRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever, III, sentenced Xavier Dominique Garris, 26, of Hope Mills to 162 months’ imprisonment, followed by 3 years of supervised release. On April 8, 2019, GARRIS pled guilty to one count each of felon in possession of a firearm and possession with intent to distribute marijuana.
On May 20, 2017, Fayetteville Police Department officers stopped GARRIS for speeding on Ireland Road in Fayetteville. GARRIS, stepped out of the vehicle, briefly spoke with police, and then ran to a nearby wooded area. Officers pursued and caught GARRIS. They searched him and found a digital scale, roughly three ounces of marijuana, and a loaded .40 caliber handgun. The handgun had been reported stolen. GARRIS’s state criminal record includes six prior felony drug convictions and three prior firearm-related felony convictions.
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.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. 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 violence crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative please click https://www.justice.gov/usao-ednc/tbnc.
The investigation of this case was conducted by the Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Jake D. Pugh represented the government.
Honduran Man Charged with Smuggling Female Child into the U.S.Read the Press Release
McALLEN, Texas - A 22-year-old illegal alien from Honduras has been indicted on charges of human smuggling and making a false family claim, announced U.S. Attorney Ryan K. Patrick.
Luis Fernando Ortiz-Matamoros was originally charged by criminal complaint June 28, 2019. Today, a federal grand jury returned the two-count indictment. He is expected to appear for his arraignment before a U.S. magistrate judge in the near future.
On June 27, 2019, Ortiz-Matamoros allegedly crossed the Rio Grande River near Hidalgo with a young female child, also of Honduras. Martinez claimed to be traveling with his daughter and presented a fraudulent birth certificate for the juvenile, according to the charges.
The criminal complaint indicates he obtained the fraudulent document to show him as the father of the child. However, he was not the father of the child, according to the charges, and was only traveling with the child in order to successfully gain entry into the United States.
If convicted, he faces up to five years in federal prison.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Hillsborough County Resident Pleads Guilty to Shooting at Police Following Armed Robbery of South Beach HotelRead the Press Release
A Hillsborough County resident pled guilty to all counts of a Superseding Indictment charging him with armed robbery of the Ocean Five Hotel on South Beach, discharging a firearm at a Miami Beach Police Department officer while fleeing after the robbery, and unlawfully possessing a firearm and ammunition as a previously convicted felon.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Richard M. Clements, Chief, City of Miami Beach Police Department, made the announcement.
According to the court record, including the stipulated factual proffer, on March 8, 2019, Terence Wendell Daniely II, 34, robbed the valet attendant at the Ocean Five Hotel on South Beach using a 9mm caliber pistol. Daniely’s possession of this pistol was illegal, as he had previously been convicted of numerous felony offenses, narcotics distribution, carrying a firearm in connection with narcotics distribution, and unlawful possession of a firearm by a convicted felon. Following the armed robbery of the Ocean Five Hotel, a Miami Beach Police Department officer spotted Daniely fleeing in a white Dodge Challenger. As this officer approached, Daniely discharged his pistol from within his moving vehicle in the direction of the officer, shattering the windshield of Daniely’s vehicle. Daniely then instigated a high-sped car chase, recklessly driving and leading officers across the MacArthur Causeway and into the City of Miami. Daniely crashed his car near Overtown and fled foot. A perimeter was established and, several hours later, the Defendant was ultimately located hiding in a shed in the backyard of a private residence.
Sentencing is scheduled for October 22, 2019, at 10:30 a.m., before U.S. District Judge Donald M. Middlebrooks. Daniely faces up to life imprisonment and a mandatory minimum sentence of 10 years imprisonment at sentencing.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, ATF, and Miami Beach Police Department in this matter. The case is being prosecuted by Assistant U.S. Attorney Michael B. Homer.
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 or on http://pacer.flsd.uscourts.gov.
Georgia Man Pleads Guilty to Social Security and Wire FraudRead the Press Release
BOSTON – A Georgia man pleaded guilty today in federal court in Springfield in connection with his submission of a fraudulent application for employment at a Western Massachusetts hospital.
Fabrizio I. Pluchino, a/k/a “Fabrizio Pulchino,” 56, pleaded guilty to one count of using a falsely obtained Social Security number and one count of wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 8, 2019. Pluchino was arrested and charged federally in November 2018 and has been in custody since.
Pluchino was assigned a Social Security number in 1988 and subsequently falsely obtained two additional Social Security numbers in 1991 and 2000, respectively. Around November 2013, Pluchino used one of his falsely obtained Social Security numbers on pre-employment documents when he applied to be a cardiac surgical technologist at a Western Massachusetts hospital. He also falsely represented his work history and provided two false employment references. As a result, the hospital hired Pluchino for the position and paid Pluchino more than $190,000 in wages during his employment.
The charge of use of a falsely obtained Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a $250,000 fine. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
Former Microsoft Software Engineer Charged with Mail Fraud for Scheme to Steal Digital Value Such as Gift CardsRead the Press Release
A former Microsoft software engineer was arrested today and charged in a criminal complaint charging him with mail fraud for a scheme to steal $10 million in digital currency from Microsoft, announced U.S. Attorney Brian T. Moran. VOLODYMYR KVASHUK, 25, a Ukrainian citizen residing in Renton, Washington, worked first as a contractor at Microsoft and then as an employee from August 2016 until he was fired in June 2018. KVASHUK was involved in the testing of Microsoft’s online retail sales platform, and used that testing access to steal “currency stored value” such as gift cards. The complaint alleges KVASHUK resold the value on the internet, using the proceeds to purchase a $160,000 Tesla vehicle and a $1.6 million dollar lakefront home. KVASHUK made his initial appearance in U.S. District Court in Seattle today and is detained pending a further hearing on Friday July 19, 2019.
According to the criminal complaint, KVASHUK was to use a test Microsoft store account to access the company’s online sales platform and simulate the experience of customers making purchases. The system was set up to ensure no physical products ever shipped. The testing program was not supposed to involve purchases of ‘currency stored value’ (CSV) such as gift cards. KVASHUK used test accounts to purchase CSV, and then resold some or all of it on Internet reseller websites. Initially, he started stealing smaller amounts of about $10,000 in value using his own account access. As the thefts escalated into millions of dollars of value, KVASHUK used test email accounts associated with other employees. KVASHUK, a knowledgeable software developer, attempted to mask digital evidence that would trace the fraud and the internet sales back to him. He used a bitcoin “mixing” service in an attempt to hide the source of the funds ultimately passing into his bank account. In all, over the seven months of KVASHUK’s illegal activity, approximately $2.8 million was transferred to his bank accounts.
Microsoft investigators confronted KVASHUK about the thefts in May 2018 and he was fired by the company in June 2018.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Mail fraud is punishable by up to twenty years in prison and a $250,000 fine.
The case is being investigated by the U.S. Secret Service and the Internal Revenue Service Criminal Investigation’s Western Area Cyber Crime Unit.
The case is being prosecuted by Assistant United States Attorney Michael Dion.
Former Host of Cable Hunting Show Pleads Guilty to Poaching DeerRead the Press Release
PEORIA, Ill. – Christopher Brackett, 41, of East Peoria, Ill., former host of “Fear No Evil,” a hunting show that aired on the Outdoor Channel, pleaded guilty today in federal court to unlawful transportation of wildlife, in violation of the Lacey Act. Brackett admitted that in December 2013, during filming of an episode of his cable show, he killed two bucks within minutes of each other, when the state of Indiana permitted hunters to kill only one buck per season. Brackett further admitted that he transported the second, 11-point buck he had nicknamed the “Unicorn Buck,” for its unique antler formation, to his home in East Peoria.
Brackett featured the “Unicorn Buck” kill on his television show in 2014. Brackett further admitted that he instructed his cameraman and producer to hide footage of the kill of the first, smaller eight-point buck. Brackett also admitted that in 2017, prior to charges being filed against him, he instructed an employee to destroy an eight-point rack.
At sentencing, scheduled on Nov. 5, 2019, before U.S. District Judge Michael M. Mihm, the government and Brackett have agreed to a sentence of 30 months of probation with the condition that during the 30-month period, Brackett is banned from hunting worldwide. Brackett has also agreed to pay $3,500 in restitution to the State of Indiana and to pay a $26,500 fine.
The government is represented by Assistant U.S. Attorney Katherine Legge in the prosecution, with the assistance of Assistant U.S. Attorney Georgiann Cerese from the Environmental Crimes Section at the Department of Justice. The charges were investigated by the U.S. Fish and Wildlife Service with the assistance of both the Illinois and Indiana Departments of Natural Resources.
Former Director of "BSI" Heads to PrisonRead the Press Release
St. Louis, MO – Leaman George Crews, III, 44, of St. James, Missouri, was sentenced to 36 months in prison for wire fraud in connection with his scheme to defraud the company he worked for – Brewer Science Incorporated (BSI), Rolla, Missouri. Crews appeared today before U.S. District Judge Henry Autrey.
According to court documents, between May 2, 2008 and August 11, 2017, Crews was employed as the Director of Information Systems for BSI. He was given a BSI credit card to order software equipment on behalf of the company. Instead of purchasing software and computer equipment for the company, Crews used the credit card to fund over one thousand wire transfers to various PayPal and bank accounts. Crews ultimately used the BSI funds for personal expenditures unrelated to the legitimate BSI business, including cash withdrawals and personal credit card purchases. The total amount of loss is approximately $1,851,520.
The Rolla division of the FBI investigated this case. Lindsay McClure-Hartman is handling the case for the U.S. Attorney’s office.
Former Buncombe County Commissioner Indicted on Federal ChargesRead the Press Release
ASHEVILLE, N.C. – Today, a federal grand jury in Asheville returned a criminal bill of indictment against former Buncombe County Commissioner Ellen Madans Frost, 64, of Asheville, N.C., charging her with conspiracy to commit federal program fraud, federal program fraud, and mail fraud, for her involvement in a scheme to use more than $575,000 in Buncombe County funds to sponsor equestrian activities in North Carolina and Florida, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); and Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney Murray in making today’s announcement.
Frost was elected as Commissioner for Buncombe County (the County) in November 2012, and continued to serve until December 2018. According to allegations contained in the 11-count indictment, beginning in early 2014 through November 2017, Frost conspired with former County Manager, Wanda Skillington Greene, to execute a scheme to defraud the County of more than $575,000, by misapplying funds allocated to the County’s Economic Development Program to support various equestrian enterprises in North Carolina and Florida. The indictment alleges that, as a horse owner and an avid supporter of equestrian activities including competitions and shows, Frost had a personal interest in supporting equestrian venues such as the Tryon International Equestrian Center (the Tryon Center) located in Polk County, and its affiliate, the Palm Beach International Equestrian Center located in Wellington, Florida.
As alleged in the indictment, in or about 2014, Frost began to speak with Greene about Frost’s desire to support the Tryon Center and related equestrian activities on behalf of the County. As a result, Frost and Greene developed a scheme to enter into sponsorship and advertising contracts with the Tryon Center, the Palm Beach International Equestrian Center, and affiliated equestrian enterprises, and to pay for those contracts using monies from the County’s Economic Development Incentive Fund. The equestrian enterprises were unaware of the criminal nature of the scheme, including the lack of authorization for Frost and Greene to enter into these negotiations and agreements without the knowledge and approval of the Board of Commissioners, as required by State law.
The indictment alleges that Greene and Frost took steps to cover the fraudulent scheme and to hide the County’s involvement in these unauthorized sponsorship and advertising contracts, by using the funds to promote the Asheville Regional Airport (the Airport), even though the Airport is an independent entity not governed or funded by the County. To perpetuate the cover-up, Greene and Frost ensured that the contracting parties understood that all sponsored events, signage, and advertisements would bear the name and logo of the Asheville Regional Airport, and that no signage or advertisements would be in the name of Buncombe County, even though the County was the paying sponsor. Frost and Greene never informed other County Commissioners about the existence of these contracts, or that County funds were used to pay for the contracts on behalf of the Airport.
The indictment alleges that, in addition to promotional material and advertising for the Airport, the County’s sponsorship contracts guaranteed access to amenities at the two equestrian venues exclusive to high-level sponsors. Specifically, the Tryon Center contract included access to a “Members Only” VIP area known as the Legends Club, “one (1) premium location VIP pavilion table,” a “full spread buffet, and a premium selection of liquor, beer, and wine,” and premium VIP parking. Entrance to the Legends Club and use of the VIP table was limited to persons whose names were on the admission list. The indictment alleges that the individual who ordinarily served as the contact person and approved the use of the County-funded table at the Legends Club was Frost, and anyone who wanted to obtain permission to use the table and be added on the admission list had to contact her. The indictment further alleges that during the 2015 and 2016 seasons at the Tryon Center, Frost repeatedly used the VIP table, and invited her friends and other guests to attend the events. Furthermore, Frost did not disclose to the other Commissioners the existence of the VIP table, nor her use of it.
According to allegations in the indictment, on at least two occasions prior to the signing of the sponsorship and advertising contracts, Frost and Greene sought to advance their fraudulent scheme to use County money to promote equestrian activities at the Tryon Center, by inviting to dinner individuals affiliated with the equestrian enterprises and the Asheville business community. The two dinners, totaling $5,877.94, took place at Asheville-area hotels, and were paid for by Greene using her personal credit card, for which she was later reimbursed by the County. Neither Frost nor Greene informed the other members of the Board of Commissioners about these dinners.
In addition to the dinners, the indictment alleges that Greene and Frost took at least two County-funded trips related to this scheme. One trip was to Wellington, Florida, to attend the “Winter Equestrian Festival” at the Palm Beach International Equestrian Center, during a time Frost and Greene would have access to the VIP table. The second trip was to Saratoga Springs, New York, which Frost and Greene took supposedly to visit the equine quarantine facility in Newburgh, New York, and to explore the possibility of establishing such a facility near the Asheville airport. As the indictment alleges, Greene and Frost never visited the facility in Newburgh during the trip. Instead, the pair attended horse races, and visited a large private farm where a horse once owned by Frost was stabled. The total cost of the two trips was $8,841.56. On both occasions, Greene paid for all travel expenses for herself and Frost, and later received full reimbursement by the County.
The indictment alleges that other members of the Board of Commissioners eventually learned about approximately $26,000 of payments after an article was published in an Asheville newspaper. Even then, Greene took steps to cover the extent of fraud, forging documents to reduce the apparent amounts that the County paid for the sponsorships and advertising, and falsely maintaining that the expenditures were the entirety of the County’s payments to the equestrian enterprises.
The indictment further alleges that Frost did not tell, at any time, any of the other Commissioners that she had already known of payments being made to the aforementioned equestrian enterprises, or that she knew County funds were used to pay for sponsorships and advertising on behalf of the Airport. Frost also did not tell any of the other Commissioners that she was aware of the existence of contracts between the County and the equestrian enterprises, or inform them of the full amounts of those contracts. Furthermore, as alleged in the indictment, as recently as November 2017, Frost continued to conceal the extent of her knowledge and participation in the scheme, and went as far as to be quoted in a local paper as saying that she was “surprised as everyone at the amount” of the contracts, stating that this was “absolutely not” a good expense.
A federal summons for Frost has been issued. All charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The federal program fraud conspiracy charge carries a maximum penalty of five years in prison. The maximum prison term for each federal program fraud charge is 10 years, and the mail fraud charges each carry a maximum prison term of 20 years.
Wanda Greene previously pleaded guilty to public corruption and to other charges for unrelated schemes involving the misuse of County funds and is awaiting sentencing.
In making today’s announcement U.S. Attorney Murray commended the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into corruption within the Buncombe County Government is ongoing.
Fifteen Defendants Charged in Federal Court with Heroin Trafficking and Possession of Firearms in MilwaukeeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that federal, state, and local law enforcement officers engaged in a significant operation in Milwaukee today that targeted a violent drug-trafficking conspiracy led by Jimmy D. Bates. The operation coincided with the unsealing of a nine-count indictment that charged Bates and 14 other defendants with conspiracy to distribute heroin and cocaine. Certain defendants were also charged with possession of firearms in furtherance of the conspiracy; unlawful possession of firearms by a felon; and conspiracy to commit robberies of others who possessed drugs.
The defendants charged in the indictment are:
Name
Age
Residence
Jimmy D. BATES
43
Milwaukee
Calvin NASH
45
Milwaukee
Tavaris CAIN
41
Milwaukee
Marville PAYNE
41
Milwaukee
Wayne POTTS, Jr.
35
Milwaukee
Montel D. IVORY
27
Milwaukee
Dujuan HARRISON
37
Milwaukee
Jebar CANNON
39
Milwaukee
Jason ASHLEY
40
Milwaukee
Anthony MEEKS
32
Mississippi
Paul PARKER
35
Milwaukee
Devon WOOTEN
34
Milwaukee
Dontelle CARR
47
Milwaukee
Shinae CASTINE
32
Milwaukee
Marlon D. PICKENS
41
Milwaukee
As part of today’s operation, law enforcement officers executed arrest warrants and search warrants at multiple locations in Milwaukee. The operation and charges are the culmination of a multi-year investigation that has resulted in the seizure of significant amounts of heroin and cocaine, and at least 15 firearms.
In court today, prosecutors described the conspiracy as being connected to multiple shooting incidents in the Milwaukee area. The indictment specifies numerous firearms possessed as part of the conspiracy, including handguns, assault rifles, and a Striker 12-guage shotgun, known as a “Street Sweeper,” which is no longer sold in the United States because federal law defines it as a destructive device.
If convicted of the conspiracy to distribute heroin and cocaine, the defendants face at least a minimum term of 10 years in prison, and up to life. Convictions on the firearms and robbery-conspiracy counts would expose the defendants to additional terms of incarceration.
The investigation was led by law enforcement officers from the Drug Enforcement Administration (DEA), North Central High Intensity Drug Trafficking Area (HIDTA), Milwaukee Police Department (MPD), and Homeland Security Investigations (HSI). Multiple additional law enforcement agencies participated in today’s operation, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Federal Bureau of Investigation (FBI); Wisconsin Department of Justice’s Division of Criminal Investigation (DCI); Waukesha County Sheriff’s Office; Milwaukee County Sheriff’s Office; West Allis Police Department; Wauwatosa Police Department; and Greenfield Police Department.
“Today’s operation sends a loud message: All levels of law enforcement are committed and cooperating to bring justice to drug traffickers and violent criminals in Milwaukee,” said U.S. Attorney Krueger. “We know that most violent crime is committed by a small number of individuals. As part of Project Safe Neighborhoods, we are focusing enforcement resources where they are needed most. At the same time, we know that law enforcement is only part of the solution. Project Safe Neighborhoods also fosters partnerships with community organizations and positive prisoner reentry efforts to help prevent violent crime. It will take all parts of our community working together to ensure safe neighborhoods.”
“The strength of the Drug Enforcement Administration is, in many ways, derived from close relationships forged with our numerous local and federal law enforcement partners. This significant investigation resulted from the cooperative leadership of Chief Morales and U.S. Attorney Krueger—and of course the dedication of the men and women of the Milwaukee Police Department, other Milwaukee-area police departments, and the U.S. Attorney’s Office. The DEA is committed to these partnerships—these force multipliers—to effectively combat criminal organizations responsible for drug threats and violence in Milwaukee and throughout the United States,” said Associate Special Agent in Charge Robert J. Bell.
“Having a good relationship with your system partners is crucial to a successful mission,” said Milwaukee Police Chief Alfonso Morales. “Our relationship with the United States Attorney’s Office has led to some great arrests and, more importantly, some great convictions.”
At a press conference held to announce today’s charges, law enforcement leaders noted progress in reducing violent crime in Milwaukee. As of July 14, 2019, there had been 196 non-fatal shootings in Milwaukee this year. That is a 35% decrease compared to the same time in 2017, and a 40% decrease compared to a spike in violent crime that occurred in 2015. Thus, compared to this point in 2015, 133 fewer people were victims of a non-fatal shooting in Milwaukee.
These enforcement actions and partnerships are 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. The U.S. Department of Justice reinvigorated PSN in 2017, 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. Learn more about Project Safe Neighborhoods.
This case is being prosecuted by Assistant United States Attorney Laura S. Kwaterski and Assistant United States Attorney Philip T. Kovoor.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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Felon with Multiple Convictions Charged with Illegally Possessing Heroin, Fentanyl and GunsRead the Press Release
PITTSBURGH, PA - A former resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearm laws, United States Attorney Scott W. Brady announced today.
The four-count superseding indictment named Douglas Tyrone Williams, 39, of East Pittsburgh, PA, as the sole defendant.
According to the Superseding Indictment, on or about July 20, 2016, Williams possessed with intent to distribute 100 grams or more of heroin, a Schedule I controlled substance. The Indictment further alleges that Williams conspired with others to distribute and to possess with intent to distribute 100 grams or more of heroin and fentanyl.
According to the Indictment, Williams also possessed a 9 mm caliber semi-automatic Ruger pistol; a 9 mm caliber semi-automatic Beretta pistol with an obliterated serial number; a 45 caliber semi-automatic Para-Ordnance pistol; a 22 caliber American Tactical Imports assault-style rifle; and a 22 caliber CBC assault-style rifle in furtherance of those drug offenses, after having been convicted of crimes punishable by more than one year in prison. Those cases include one conviction for Aggravated Assault, one conviction for Illegally Carrying a Firearm without a License, and one conviction for Murder.
The law provides for a minimum of 10 years and a maximum of life imprisonment, a fine of up to $10,500,000, and the forfeiture of the firearms, ammunition, money and jewelry. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt and Special Assistant United States Attorney Chad R. Parks are prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal jury quickly convicts serial illegal deporteeRead the Press Release
AUGUSTA, GA: A Honduran national who has repeatedly entered the United States illegally has been convicted in federal court after his fifth return.
A jury on July 15 found Celso de Jesus Urbina-Aleman, 43, of Honduras, guilty of Re-entry After Removal/Deportation in U.S. District Court in Augusta, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The conviction carries a possible sentence of up to two years in federal prison, followed by deportation.
“Urbina-Aleman’s case demonstrates the challenge our federal immigration partners face in enforcing our nation’s laws,” said U.S. Attorney Christine. “For a decade and a half the defendant has broken our laws over and over again, been caught and deported. This jury verdict has changed the script and will permit justice to be served at the time of sentencing.”
Urbina-Aleman was arrested Dec. 2, 2018 after a traffic stop in Taliaferro County, Ga., and was charged with driving without a valid license. A check on his immigration status determined he was illegally present in the United States and previously had been deported four times.
According to court records and proceedings, Urbina-Aleman was initially removed from Texas in 2006, was deported in 2010 after being caught in Pennsylvania, then was caught again near the border in Texas in 2011 and deported. Less than three months later, he was caught again in Texas, convicted in federal court of Illegal Entry and again deported.
“The woman and men of ICE perform the vital role of arresting and removing immigration law violators, particularly those who demonstrate a constant and wanton disregard of our laws,” said ICE Atlanta Field Office Director Sean Gallagher. “ICE officers, in concert with our law enforcement partners, will continue to perform their duties as intended by Congress with veracity, courage and professionalism.”
The case was investigated by Immigration and Customs Enforcement (ICE) and prosecuted for the United States by Assistant U.S. Attorney Alejandro V. Pascual IV.
Federal Law Enforcement Responds to Violent Acts in Old San Juan During ProtestsRead the Press Release
SAN JUAN, Puerto Rico – The U.S. Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Drug Enforcement Administration are working together with our local partners to investigate the violent acts that transpired last night in Old San Juan.
“We emphasize that peaceful demonstrations are an exercise of the fundamental rights of citizens, but violent acts and destruction of property have no part of a peaceful demonstration, and will not to be tolerated. We are disheartened by the violence that some groups have taken and we will investigate and prosecute anyone who has violated federal law, to the fullest extent of the law,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico. “We remain vigilant in monitoring the situation and will act immediately, as we have done in other situations when peaceful demonstrations have turned violent.”
“The FBI recognizes the public’s first amendment right to protest in a peaceful manner. Nonetheless, the FBI will actively investigate any acts of violence that fall under our jurisdiction and constitute federal crimes in coordination with our law enforcement partners and the US Attorney’s office,” said Douglas A. Leff, Special Agent in Charge of the FBI.
“The Bureau of Alcohol Tobacco Firearms and Explosives stands with all of our local, state, and federal government partners in Puerto Rico, and will aggressively pursue all violations of law that fall within our jurisdiction,” said Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“The right to manifest itself as an exercise of freedom of expression is an inalienable right that has to be respected as long as this exercise does not violate the rights of others,” said Ivan J. Arvelo, Special Agent in Charge of HSI San Juan. “HSI, along with the other law enforcement agencies in Puerto Rico, will be vigilant and will not tolerate violations of federal statutes.”
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Federal Jury Convicts Orangeburg Man of Two Counts of Drug DistributionRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today after a three-day trial, a federal jury sitting in Columbia found Joe Roger Moultrie, age 67, of Orangeburg County, guilty of two counts of possession with the intent to distribute cocaine and crack cocaine. United States District Judge Margaret B. Seymour of Columbia presided over the trial and will sentence Moultrie after receiving and reviewing a presentence report prepared by the United States Probation Office.
Evidence presented during the trial showed that on August 20, 2015, an Orangeburg County Narcotics agent followed Moultrie to a local laundromat because he suspected that he was dealing narcotics. After watching Moultrie for a short time, he observed what he described as a drug deal. The narcotics agent then turned on his blue lights and attempted to stop Moultrie, who fled in his car while the officer followed him. After traveling a distance, Moultrie stopped his car and immediately got out of the car with his hands in the air and stated, “I ain’t got nothing!” The narcotics officer observed both front seat windows were down and detained Moultrie while another officer searched the roadway in the path of the pursuit. He found cocaine and crack cocaine in the roadway a short distance from the laundromat. Later DNA testing determined that Moultrie’s DNA was on the cocaine. Moultrie was arrested.
On August 28, 2017, an Orangeburg County Narcotics agent received a telephone call that Moultrie was selling drugs in an area in Orangeburg called “The Hill” while driving a red SUV. Narcotics agents went to this area and saw Moultrie parked in the roadway while another person was leaning into the car through the passenger window. The agents went around the block, and when they returned to the area where they saw Moultrie, he had fled. The officers followed Moultrie’s vehicle and observed him committing multiple traffic offenses. Initially, Moultrie refused to stop but after a short chase, he stopped his red SUV. As the officers approached, they observed Moultrie was very nervous and asked if he was having a medical problem. He said no. The agents then deployed a K-9 who alerted to the armrest in Moultrie’s car. During the search of the car, the officers found a prescription pill bottle wrapped in camouflage tape containing 16 baggies of crack cocaine and cocaine in the armrest. Again, Moultrie’s DNA was found on the pill bottle, crack cocaine, and cocaine.
The maximum penalty for possession with the intent to distribute cocaine and crack cocaine is imprisonment for 30 years and/or a fine of $2,000,000.
The case was investigated by agents of the Drug Enforcement Administration, South Carolina Law Enforcement Division, the Orangeburg County Sheriff's Office, and the Orangeburg Department of Public Safety. Assistant United States Attorneys William K. Witherspoon and Elliott B. Daniels of the Columbia office prosecuted the case.
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Federal Jury Convicts Birmingham Doctor and Nurse for $7.8 Million Health Care Fraud, Unlawful Drug Distribution and Money LaunderingRead the Press Release
BIRMINGHAM – A federal jury today convicted Dr. PATRICK EMEKA IFEDIBA, 60, of Shelby County and Patrick Ifediba’s sister, NGOZI JUSTINA OZULIGBO, 49, of Trussville of numerous crimes stemming from their involvement with Care Complete Medical Clinic, located in Birmingham, Alabama, announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr., and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
Following a four-week trial before Judge David R. Proctor, the jury convicted Ifediba of thirty-five counts involving unlawful drug distribution, health care fraud, and money laundering. Specifically, Ifediba was convicted of: (i) one count of conspiracy to illegally distribute controlled substances by means of prescriptions; (ii) fourteen counts of illegal prescribing; (iii) one count of maintaining drug-involved premises; (iv) one count of conspiracy to commit health care fraud; (v) ten counts of health care fraud; (vi) one count of conspiracy to commit money laundering; (vii) three counts of concealment money laundering; and (viii) four counts of engaging in monetary transactions involving criminally derived property greater than $10,000.
For her part in the offenses, Ozuligbo, a licensed practical nurse, was convicted of twelve counts involving health care fraud and money laundering. Specifically, Ozuligbo was convicted of: (i) one count of conspiracy to commit health care fraud; (ii) nine counts of health care fraud; (vi) one count of conspiracy to commit money laundering; and (vii) one count of concealment money laundering. No sentencing date has been set.
“This jury verdict should put all health care providers on notice that sacrificing care for greed will land you in federal court,” Town said. “And we have bed space in federal prison for all that do.”
“In defrauding the Medicare system, Ifediba violated a sacred oath taken by physicians but above all he violated the law,” Sharp said. “He submitted fraudulent claims to both Medicare and other health care insurers as part of the scheme. The FBI and our partners will continue to hold medical professionals accountable for abusing positions of trust in the community and for harming the financial integrity of our health care system. The FBI remains dedicated to combating health care fraud and to doing our part in reducing the impact that opioids have on our nation.”
“Today, a jury of community members resoundingly confirmed what DEA had known all along,” Morris said. “Dr. Ifediba had long forgotten to care for his patients. Instead, he chose to fill his bank accounts with cash. Sadly, Dr. Ifediba is yet another example of putting profit over his professional responsibility to help those in need. For over three years, DEA and our law enforcement colleagues investigated and ultimately prosecuted Dr. Ifediba for violations of many federal laws including drug distribution and money laundering. Collectively, we are committed to protecting our communities from the scourge of opioid abuse and those who profit from it. We will tirelessly protect the innocent and vigorously investigate those who prey on the addictions of others.”
Evidence at the trial proved that Ifediba was a doctor of internal medicine who owned Care Complete Medical Clinic (“CCMC”) and operated it with his wife, Dr. Uchenna Ifediba. The evidence showed that the doctors operated CCMC as a pill mill. They routinely prescribed dangerous and addictive opioids for the primary purpose of making money from repeated return office visits. Ifediba not only overprescribed opioids, he also prescribed dangerous cocktails of drugs, including one called “the holy trinity,” that produces a heroin-like high, but creates a significant risk of an overdose. Although Ifediba was not a pain management specialist and CCMC did not hold itself out as a pain management clinic, approximately 85% of its patients received opioid prescriptions.
In addition to operating a pill mill, the evidence showed that Ifediba and others, including Ozuligbo, cheated and stole millions of dollars from Medicare and private health insurers in connection with an allergy fraud scheme. Although neither had any training in allergy medicine, the pair would order patients with health insurance to take allergy tests and submit to allergy treatments they didn’t need. Ifediba even forced some patients to take unwanted allergy tests by withholding their opioid prescriptions if they refused. Ifediba then ordered expensive allergy therapy treatments for all these patients even when the patients tested negative.
The purpose of the allergy scheme was to increase CCMC’s revenue. CCMC billed health insurers more than $7.8M over the course of the scheme. Representatives of Medicare and several private insurance companies testified at trial. The evidence showed that Ifediba billed one of the private insurers nearly $3M for allergy services over a two-and-a-half year period. Ifediba was their number one biller in the state of Alabama, accounting for sixty-one percent of all allergy-related billing. The insurance company’s next highest biller was an allergy and asthma center employing eight doctors and nine nurse practitioners.
The evidence at trial showed that Ifediba opened numerous bank accounts and used shell corporations in order to hide the money he made from his crimes. Ifediba moved the illicit funds between bank accounts and used the names of family members, including Ozuligbo, to make it appear as though the bank accounts and companies belonged to someone else. A substantial portion of these illicit funds were used to buy a condominium, annuities, and other investments held in the names of others, but which were for Ifediba’s personal use and benefit.
The charges of conspiracy to commit health care fraud and health care fraud both carry maximum penalties of 10 years in prison and a $250,000 fine.
Conspiracy to distribute controlled substances and distribution of controlled substances both carry a maximum penalty of 20 years in prison and a $1 million fine. Maintaining drug-involved premises carries a maximum penalty of 20 years in prison and a $500,000 fine.
Money laundering conspiracy and laundering of monetary instruments both carry a maximum penalty of 20 years in prison and a $250,000 fine. Engaging in monetary transactions in criminally derived property worth more than $10,000 carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount of the criminally derived property involved.
The FBI and DEA investigated the case as part of an Organized Crime Drug Enforcement Task Force operation, which Assistant U.S. Attorneys Mohammad Khatib and Jim Weil are prosecuting.
Federal Inmate Convicted of Conspiring with Nurse to Smuggle Prescription Drugs into Marion PrisonRead the Press Release
A federal inmate is potentially facing more time behind bars after he was caught trying to smuggle prescription narcotics into prison. Steven W. Snook, 42, pleaded guilty earlier today to conspiring with a licensed practical nurse and others to bring Suboxone (buprenorphine and naloxone) into the U.S. Penitentiary at Marion, Illinois, through the mail, to sell to other inmates. Snook also pleaded guilty to a charge of unlawfully attempting to obtain prison contraband. The charged offenses occurred between October 2016 and May 2017, while Snook was imprisoned at USP Marion for a prior drug trafficking offense.
As part of his guilty plea, Snook admitted entering into the illicit enterprise with his co-defendant, 36-year-old Jenny Martin of Tilton, Illinois – an acquaintance who was also a licensed practical nurse. During in-person visits at the prison, Snook and Martin discussed introducing Suboxone into USP Marion as a way to make money. Martin acquired the Suboxone strips illegally for $20 each and mailed them under the alias "Rachel Hall" to other inmates recruited by Snook. Snook instructed Martin how to conceal the Suboxone strips under the glued bottom flaps of the envelopes.
Evidence photograph of intercepted envelope.
In April 2017, prison officials discovered the plot and intercepted two pieces of mail with Suboxone strips hidden inside. A subsequent investigation revealed multiple wire transfers that Martin had received from Snook and others as payment for the Suboxone she provided.
Martin previously pleaded guilty for her role in the conspiracy and is due to be sentenced on Aug. 27, 2019. Snook’s sentencing is set for Oct. 16, 2019, at 10:00 a.m. at the United States District Court in Benton, Illinois. He faces up to 5 years imprisonment on each count, which by law must be served consecutively to the 262-month sentence he is still serving. Each count also carries a potential fine of up to $250,000.
The investigation leading to the charges in this case was conducted by the FBI and the Federal Bureau of Prisons. The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Federal Grand Jury Indicts Norwich Man for Firearm and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a three-count indictment charging DANIEL FRANCOIS, also known as “Bear,” 29, of Norwich, with firearm possession and drug trafficking offenses.
The indictment was returned on June 19, 2019, and Francois was arraigned today before U.S. Magistrate Judge Robert M. Spector in New Haven.
The indictment alleges that, on May 20, 2019, Francois distributed crack cocaine, and that he possessed two Davis model P-380 .380 caliber pistols in connection with his drug trafficking activity.
The indictment further alleges that Francois has been previously convicted of felony robbery and drug offenses.
The indictment charges Francois with one count of possession with intent to distribute, and distribution of cocaine base (“crack”), which carries a maximum term of imprisonment of 20 years; one count of possession of a firearm by a previously convicted felon, which carries a maximum term of imprisonment of 10 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive prison term of at least five years.
Francois has been detained since his arrest on May 20, 2019.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Ledyard and Norwich Police Departments, with the assistance of Connecticut State Parole. The case is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.
This prosecution has been brought through 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.
Federal Court Bars Florida Tax Return Preparer and Her Businesses from Preparing Tax ReturnsRead the Press Release
A federal court in Miami, Florida, permanently barred Georgina Gonzalez and GeorginagonzalezLLC, Ideal Tax Pros LLC, and Trinity Tax Service LLC, from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department announced today. The court also ordered that Gonzalez and Trinity Tax Service LLC disgorge $48,214.30, representing the ill-gotten gains that they received for the preparation of tax returns making false claims.
The government’s complaint alleged that the defendants prepared tax returns that included fraudulent claims for the Earned Income Tax Credit (EITC) based on fabricated income or business expenses. The complaint further alleged that defendants prepared returns for some customers that reported bogus “Household Help” work income, and returns claiming phony business loss deductions so as to falsely maximize their customers’ claim to the EITC. The complaint also alleged that defendants falsely claimed education credits on the tax returns of customers who did not attend college and had no qualifying education expenses.
The court’s disgorgement determination is based on ill-gotten gains stemming from tax returns filed in 2018 that falsely claimed either “Household Help” income, self-employed business income or expenses, or the EITC.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2019 and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Father and Son Sentenced to Prison in Multimillion-Dollar Investment Fraud SchemeRead the Press Release
A father and son who ran a complex investment fraud scheme by which they stole more than $10 million over the course of seven years were sentenced today to 60 months and 27 months in prison, respectively.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama and Special Agent in Charge Johnnie Sharp Jr. of the FBI Birmingham Field Office made the announcement.
Donald Watkins Sr., 70, of Atlanta, Georgia, and Donald Watkins Jr., 47, of Birmingham, Alabama, were sentenced by U.S. District Judge Karon O. Bowdre of the Northern District of Alabama. Judge Bowdre also ordered Donald Watkins Sr. to serve five years of supervised release and to pay restitution in the amount of $14,000,100.00 and ordered Donald Watkins Jr. to serve three years of supervised release and to pay restitution jointly with his father in the amount of $13,850,000.
The father and son co-defendants were convicted on March 8, 2019, following a jury trial that lasted over two weeks. Donald Watkins Sr. was convicted of seven counts of wire fraud, two counts of bank fraud and one count of conspiracy. Donald Watkins Jr. was convicted of one count of wire fraud and one count of conspiracy.
According to evidence presented at trial, between approximately 2007 and 2013, Donald Watkins Sr. sold “economic participations” and promissory notes connected with Masada Resource Group, a company that he ran as manager and CEO. Investors paid more than $10 million dollars after Donald Watkins Sr. and Donald Watkins Jr. falsely represented that the money would be used to grow Masada, which Donald Watkins Sr. described as a “pre-revenue” company that supposedly had technology that could convert garbage into ethanol. Instead of investing the money into Masada, however, Donald Watkins Sr. and Donald Watkins Jr. diverted funds to pay personal bills and the debts of their other business ventures, the evidence showed. Victim money was used to pay for Donald Watkins Sr.’s alimony, hundreds of thousands of dollars in back taxes, personal loan payments, a private jet and clothing purchased by Donald Watkins Jr. and his wife. Emails introduced at trial also showed that Donald Watkins Sr. and Donald Watkins Jr. planned to obtain millions of dollars for these purposes from one victim on multiple occasions, when they knew that this victim and other victims trusted them to put their money to use in growing Masada.
Donald Watkins Sr. also was convicted of defrauding Alamerica Bank, an entity in which Donald Watkins Sr. held a controlling interest through his ownership of Alamerica Bank Corp stock, the evidence showed. In order to pay hundreds of thousands of dollars in litigation expenses associated with another one of Donald Watkins Sr.’s business ventures, Donald Watkins Sr. executed a plan to use a straw borrower to take out money from Alamerica Bank and use those funds to pay the defendant’s litigation expenses. This straw borrower—Donald Watkins Sr.’s long-time mentor and a prominent figure in the Birmingham community—took over $900,000 in loans from Alamerica Bank and then immediately permitted Donald Watkins Sr. to use those funds for his personal benefit, the evidence showed.
The investigation was conducted by the FBI’s Birmingham Field Office. Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Lloyd C. Peeples III, Special Assistant U.S. Attorney Beau Brown (on detail from the Alabama Securities Commission) and Special Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama prosecuted the case.
Father and Son Sentenced to Prison in Multimillion-Dollar Investment Fraud SchemeRead the Press Release
WASHINGTON – A father and son who ran a complex investment fraud scheme by which they stole more than $10 million over the course of seven years were sentenced today to 60 months and 27 months in prison, respectively.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama and Special Agent in Charge Johnnie Sharp Jr. of the FBI Birmingham Field Office made the announcement.
Donald Watkins Sr., 70, of Atlanta, Georgia, and Donald Watkins Jr., 47, of Birmingham, Alabama, were sentenced by U.S. District Judge Karon O. Bowdre of the Northern District of Alabama. Judge Bowdre also ordered Donald Watkins Sr. to serve five years of supervised release and to pay restitution in the amount of $14,000,100.00 and ordered Donald Watkins Jr. to serve three years of supervised release and to pay restitution jointly with his father in the amount of $13,850,000.
The father and son co-defendants were convicted on March 8, 2019, following a jury trial that lasted over two weeks. Donald Watkins Sr. was convicted of seven counts of wire fraud, two counts of bank fraud and one count of conspiracy. Donald Watkins Jr. was convicted of one count of wire fraud and one count of conspiracy.
“These defendants sought to enrich themselves through wire and bank fraud,” Town said. “The sentences give notice to the public that the Department of Justice stands ready with the resources to investigate and prosecute similar offenders.”
“Today’s sentence should send a message to those who would engage in financial fraud,” Sharp said. “We are pleased that the Watkins are being held accountable for their crimes and that they were ordered to pay restitution to the victims. The FBI will continue to work with our law enforcement partners to investigate and prosecute those who commit complex financial crimes.”
According to evidence presented at trial, between approximately 2007 and 2013, Donald Watkins Sr. sold “economic participations” and promissory notes connected with Masada Resource Group, a company that he ran as manager and CEO. Investors paid more than $10 million dollars after Donald Watkins Sr. and Donald Watkins Jr. falsely represented that the money would be used to grow Masada, which Donald Watkins Sr. described as a “pre-revenue” company that supposedly had technology that could convert garbage into ethanol. Instead of investing the money into Masada, however, Donald Watkins Sr. and Donald Watkins Jr. diverted funds to pay personal bills and the debts of their other business ventures, the evidence showed. Victim money was used to pay for Donald Watkins Sr.’s alimony, hundreds of thousands of dollars in back taxes, personal loan payments, a private jet and clothing purchased by Donald Watkins Jr. and his wife. Emails introduced at trial also showed that Donald Watkins Sr. and Donald Watkins Jr. planned to obtain millions of dollars for these purposes from one victim on multiple occasions, when they knew that this victim and other victims trusted them to put their money to use in growing Masada.
Donald Watkins Sr. also was convicted of defrauding Alamerica Bank, an entity in which Donald Watkins Sr. held a controlling interest through his ownership of Alamerica Bank Corp stock, the evidence showed. In order to pay hundreds of thousands of dollars in litigation expenses associated with another one of Donald Watkins Sr.’s business ventures, Donald Watkins Sr. executed a plan to use a straw borrower to take out money from Alamerica Bank and use those funds to pay the defendant’s litigation expenses. This straw borrower—Donald Watkins Sr.’s long-time mentor and a prominent figure in the Birmingham community—took over $900,000 in loans from Alamerica Bank and then immediately permitted Donald Watkins Sr. to use those funds for his personal benefit, the evidence showed.
The investigation was conducted by the FBI’s Birmingham Field Office. Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Lloyd C. Peeples III, Special Assistant U.S. Attorney Beau Brown (on detail from the Alabama Securities Commission) and Special Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama prosecuted the case.
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Elm City Man Sentenced to 13 Years for Drug ConspiracyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced RODNEY DURRELL THOMAS, also known as “LIL BRUH,” 21, of Elm City, North Carolina to 156 months imprisonment, followed by 5 years of supervised release.
The prosecution of THOMAS was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF), entitled Tri County Hook Up, announced by the United States Attorney’s Office earlier this summer, which resulted in the arrest of several defendants for outstanding federal and state charges in a coordinated warrant enforcement operation. The investigation focused on heroin and cocaine trafficking in Nash, Edgecombe and Wilson counties.
THOMAS was named in an eleven-count Indictment filed on June 13, 2018 charging him with a drug conspiracy running from at least August 1, 2017 until mid-June of 2018. Specifically, THOMAS was charged with conspiracy to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin, a quantity of marijuana, twenty-eight (28) grams or more of cocaine base (crack) and a quantity of cocaine; as well as possession with the intent to distribute and distribution of twenty-eight (28) grams or more of cocaine base (crack) and a quantity of cocaine. On February 15, 2019, THOMAS pled guilty to those charges.
According to the investigation, THOMAS was a part of a drug trafficking organization that distributed cocaine, cocaine base (crack), heroin, and marijuana throughout the Nash, Edgecombe and Wilson counties. As part of the investigation, law enforcement recorded telephone calls where THOMAS discussed the drug conspiracy with his co-defendants and made arrangements for further drug transactions. THOMAS sold 10 bricks of heroin each, which is approximately 1000 individual bags, on two occasions from his home in Elm City, NC. THOMAS frequently possessed firearms in connection with the drug conspiracy and received a firearm sentencing enhancement. Additionally, THOMAS fled from law enforcement in a reckless manner and received a sentencing enhancement for reckless endangerment.
On December 13, 2018, the Court sentenced Michael Speight, 26, of Elm City, North Carolina to 60 months imprisonment, followed by 3 years of supervised release; MARCUS ANTWAN WILEY, also known as “MARK,” 29, of Elm City, North Carolina was sentenced to 57 months imprisonment, followed by 3 years of supervised release; and TRAVIS KWYMAINE RUFFIN, 29, of Wilson, North Carolina was sentenced to 54 months imprisonment, followed by 3 years supervised release for their roles in the drug conspiracy. At the time of the instant offense, WILEY was on supervised release resulting from a 2009 federal conviction of conspiracy to commit armed bank robbery, armed bank robbery, and the use and carrying of a firearm during and in relation to a crime of violence. After WILEY admitted to the criminal activity, his term of supervised release was revoked and he was sentenced to an additional 37 months’ imprisonment to be served at the conclusion of his sentence for the drug conspiracy. On January 28, 2019, MARQUICE QUASHAWN MCCOY, 30, of Rocky Mount, North Carolina was sentenced to 70 months imprisonment, followed by 3 years supervised release for his involvement in the drug conspiracy. On March 4, 2019, DE’ANDRE ANTHONY LUCAS, 29, of Rocky Mount, North Carolina was sentenced to 15 months imprisonment, followed by 3 years supervised release for his involvement in the drug conspiracy. On April 17, 2019, SHAQUANDRA MCALLISTER, 28, of Wilson, North Carolina was sentenced to 42 months imprisonment, followed by 5 years supervised release for her involvement in the drug conspiracy.
This case is part of the United States Attorney’s Office’s 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. For moe information about this intiative please click here: https://www.justice.gov/usao-ednc/tbnc.
Investigation of this enforcement operation was conducted by the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), the United States Marshal Service (USMS), United States Probation Office, Nash County Sheriff’s Office, Wilson Police Department, Rocky Mount Police Department, Edgecombe County Sheriff’s Office, Tarboro Police Department, Spring Hope Police Department, Nashville Police Department, North Carolina State Bureau of Investigation, and the North Carolina Department of Public Safety. Assistant United States Attorney Dena King represented the government.
Elizabeth City Man Sentenced for Convenience Store RobberyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever III sentenced RASHEEN JEROME ARNOLD, 24, of Elizabeth City, North Carolina to 114 months imprisonment, followed by 3 years of supervised release.
ARNOLD was named in an Indictment filed on July 25, 2018 charging him with Possession of a Firearm by a Felon. On January 22, 2019, ARNOLD pled guilty to those charges.
On April 25, 2018 ARNOLD approached victims outside of Friendly Check Cashing in Edenton. ARNOLD demanded money and when they said they didn’t have any, he pulled a firearm from his pocket and said he would kill them if they did not give him money. One victim went into Friendly Check Cashing and returned with $12. ARNOLD said that wasn’t enough and demanded more. This time when the victim went into the check cashing business the victim called 911 and reported that he was being robbed. Officers with the Edenton Police Department responded to the area and ARNOLD ran when he saw the officers. The officer detained ARNOLD after a brief foot chase and a firearm was recovered from ARNOLD’S pants pocket. ARNOLD is a previously convicted felon.
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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. 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. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
The investigation of this case was conducted by the Edenton Police Department as well as the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Charity Wilson.