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16 July 2019
East Haven Man Admits Role in Scheme to Defraud Illinois CompanyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN T. FINKLE III, 57, of, East Haven, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of conspiracy to commit mail and wire fraud related to a scheme to defraud an Illinois-based company.
According to court documents and statements made in court, Finkle was employed by an Illinois-based supplier of electronic components (“Company A”). Between approximately February 2015 and December 2018, Finkle conspired with Kenneth Pedroli to defraud Company A through a scheme involving purchases of electronic components that Pedroli made from Company A for a business he operated in Islandia, New York. As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of Company A’s published prices. After Pedroli’s orders were submitted to Company A at the discounted prices, the products were shipped from Company A to Pedroli. Finkle instructed Pedroli to pay only a portion of the invoiced price and to make the payments directly to Finkle, which Pedroli did. Finkle deposited the payments into his personal checking account and provided a portion of the funds to another Company A employee who manipulated the accounting records of Company A to make it appear that Pedroli had paid Company A for the products he received.
The government contends that Company A was defrauded of more than $3 million through this scheme.
Judge Hall scheduled sentencing for October 8, 2019, at which time Finkle faces a maximum term of imprisonment of 20 years.
Finkle is released on a $500,000 bond pending sentencing.
Pedroli, of Stony Brook, New York, pleaded guilty to the same offense on April 29, 2019, and awaits sentencing.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Doctor and Three Others in Bergen County Charged in $10 Million Health Care Fraud SchemeRead the Press Release
Allegedly Paid and Received Kickbacks in Connection with Medically Unnecessary Prescriptions for Pain Creams
NEWARK, N.J. – A doctor and three people associated with a pharmacy were charged today with their respective roles in defrauding the federal workers’ compensation program in a $10 million scheme involving illegal kickbacks and medically unnecessary prescriptions for pain creams, U.S. Attorney Craig Carpenito announced.
Mark Filippone M.D., 71, of Wallington, New Jersey; Joseph Miller, 33, a/k/a “Joseph Vangelas,” of Fort Lee, New Jersey; Marlene Vangelas, 58, of River Vale, New Jersey; and Zachary Ohebshalom, 33, of Edgewater, New Jersey, were each charged by complaint with one count of conspiring to commit health care fraud and one count of violating the federal anti-kickback statute. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning in November 2015, the defendants conspired to obtain more than $10 million in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who traveled from as far away as Florida and Georgia to see him.
Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The complaint alleges that Filippone steered these prescriptions to a pharmacy in Fairlawn, New Jersey, which was owned and operated by Miller and Vangelas, who, along with Ohebshalom, directed their pharmacists to mine reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. The trio then printed prescription labels for Filippone to use with his patients. Dr. Filippone used the pre-printed labels and sent the prescriptions back to Miller, Vangelas, and Ohebshalom. In order to induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they wished to obtain, Miller and Vangelas purchased Filippone’s medical office for above fair market value, and then permitted Dr. Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, Vangelas, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to feed prescriptions to the pharmacy, so long as Miller and Vangelas permitted him to remain rent-free in the property.
The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison; the count of violating the federal anti-kickback statute is punishable by a maximum penalty of five years in prison. Both counts are also punishable by a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigations, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney David M. Eskew, Chief of the Health Care & Government Fraud Unit in the Criminal Division, Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
District Administrator for Muncie Sanitary District and Muncie contractor indictedRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Debra Nicole Grigsby (“Nikki Grigsby”), the District Administrator for the Muncie Sanitary District, and Tony Franklin, the owner of Franklin Building, and Design, LLC, have been indicted on charges of conspiracy to commit wire fraud, wire fraud, making false statements, and falsification of documents in a federal investigation.
Grigsby, 44, Muncie, Indiana, and Franklin, 60, Yorktown, Indiana, were arrested this morning without incident and will have their initial appearance this afternoon at the federal courthouse in Indianapolis.
The arrests are part of a multi-year and on-going investigation by the Federal Bureau of Investigation and the Internal Revenue Service, into the payment of kickbacks in exchange for public works projects and other corruption-related matters in Muncie that have resulted in the following federal cases:
United States v. Craig Nichols, 17-CR-0021-TWP-DML
United States v. Tracy Barton, 18-CR-284-JMS-DLP
United States v. Jeff Burke, 18-CR-285-SEB-DLP
United States v. Rodney Barber, 19-CR-190-JMS-DML
“Public servants need to serve the public instead of serving themselves,” said Minkler. “When someone betrays the public’s trust by stealing tax dollars for personal enrichment, my office will identify, investigate and, if the evidence supports a charge, prosecute the individual who violates that sacred trust.”
Grigsby has served as Muncie Sanitary District’s District Administrator since 2013, and was responsible for approving the selection of contractors to perform work on Muncie Sanitary District infrastructure projects. The indictment alleges that Grigsby abused her position of public trust and agreed to steer contracts for work arising out of infrastructure projects for the Muncie Sanitary District to Franklin, the owner of Franklin Building and Design, LLC, in exchange for kickbacks.
“The indictment and arrest of these two individuals is one more step in an ongoing investigation to identify any and all public officials or private citizens who have committed federal crimes and victimized the tax paying citizens of Muncie, Indiana,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “Investigating public officials who exploit their official position for personal gain and erode the public’s confidence in government is one of the FBI’s top criminal priorities and is the sole purpose of the Indiana Public Corruption Task Force.”
According to Assistant U.S. Attorney Tiffany J. Preston who is prosecuting this case for the government, Grigsby and Franklin face up to 20 years’ imprisonment if convicted of all charges.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3
Disbarred Attorney Sentenced to Two Years in Prison for Stealing $2 Million from Would-Be Real Estate InvestorsRead the Press Release
Earlier today, in federal court in Central Islip, Alice Belmonte, a disbarred attorney formerly with offices in Long Island and Manhattan, was sentenced by United States District Judge Denis R. Hurley to 24 months’ imprisonment for engaging in a wire fraud scheme and stealing $2 million from victims who believed they were giving her money to invest in real estate. Belmonte was also ordered to pay $2 million in restitution to those victims. In September 2017, Belmonte pleaded guilty to wire fraud.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Alice Belmonte, falsely holding herself out as an experienced practicing attorney, prevailed upon investors to trust her with their money and then stole it from them,” stated United States Attorney Donoghue. “With today’s sentence, she has been held responsible for her crime. Together with our law enforcement partners, this Office will continue to hold accountable those who violate the trust of others to enrich themselves.”
Shortly after being disbarred for misconduct in February 2013, Belmonte held herself out as an attorney who could assist clients in acquiring real estate investments. Belmonte communicated with her victim investors with emails sent from her “[email protected]” address. Relying on Belmonte’s purported expertise, the investors deposited $2 million into an escrow account she opened. The funds were supposed to be held in escrow until a suitable portfolio of real estate properties could be purchased. Between March and June 2013, Belmonte contacted the escrow agent, using falsified email addresses in the names of her victims, and sent fraudulent instructions purporting to authorize the transfer of the $2 million to a second bank account she controlled in the name, “Alice Phillips Belmonte Attorney Escrow Account.” Belmonte then diverted the funds to yet additional accounts she controlled by forging fraudulent disbursement instructions, ostensibly from one of the victims. The victims’ money was never invested in real estate for them, nor did they receive their money back.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Artie McConnell is in charge of the prosecution.
The Defendant:
ALICE BELMONTE (also known as “Alice Marie Phillips” and “Alice Marie Ward”)
Age: 53
Wading River, New YorkE.D.N.Y. Docket No. 16-CR-260 (DRH)
Department of Justice 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
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director John Brown of the FBI’s Counterintelligence Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office 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.
“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,” said Assistant Attorney General Demers. “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.”
“Carbon fiber has many aerospace and defense applications, and is strictly controlled to ensure that it doesn’t fall into the wrong hands,” said U.S. Attorney Geoffrey Berman. “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.”
“This case shows the FBI aggressively pursues those who break the law and violate sanctions against Iran,” said Assistant Director Brown. “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.”
“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,” said Assistant Director in Charge Sweeney. “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.
* * *
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. Demers and 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 Office of International Affairs, the U.S. Marshals Service, Homeland Security Investigations, and Immigration and Customs Enforcement for their assistance. Mr. Demers and 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.
Delhi farmer pleads guilty to lying to various business and government entities to steal nearly $17 millionRead the Press Release
MONROE, La. – A Delhi, Louisiana, farmer pleaded guilty Monday to lying to more than seven financial institutions, insurance providers and government entities in an effort to obtain nearly $17 million illegally, U.S. Attorney David C. Joseph announced. Thomas Dickerson, 45, pleaded guilty before U.S. District Judge Terry Doughty for making false statements to the Commodity Credit Corporation.
According to the guilty plea, Dickerson was a Franklin Parish Louisiana farmer who, during the 2015 crop year, used at least 13 farming entities he was either a part of or was the sole owner of to certify farming acreage in Catahoula, Franklin, Tensas, Richland, Madison and Morehouse parishes in Louisiana, as well as Ashley, Chicot and Drew Counties in Arkansas. He applied for crop production and grain storage loans from AG Resource Management, farm operating loans from various FDIC insured banking entities, credit from seed and chemical dealers such as Greenpoint AG LLC and Jimmy Sanders Seed, advances on contracts with Kennedy Rice Dryers, insurance policies and claims from Producers Agriculture Insurance Company and CGB Insurance Company, and several marketing assistance loans from the Commodity Credit Corporation. Dickerson lied on many of these applications in order to obtain loans and other compensation by overstating or understating the amount of crops produced or claiming crops as collateral when he’d already sold the crops or didn’t possess them. He stole $16,985,409.71 during the course of the scheme.
“This case should serve as a warning to those who engage in crooked financial schemes,” Joseph stated. “The Department of Justice is committed to protecting taxpayer money set aside to help our farmers and prosecuting those who cheat financial institutions and insurance companies for personal gain. The defendant’s conduct in this case not only caused significant financial loss to victims throughout northeast Louisiana, but also undermined the integrity of our agricultural finance system. This type of behavior will not be tolerated in the Western District of Louisiana.”
Dickerson faces up to 10 years in prison, three years of supervised release, restitution and a $10,000 fine. Sentencing is scheduled for November 6, 2019.
The U.S. Department of Agriculture, Office of Inspector General, investigated the case. United States Attorney David C. Joseph and Assistant U.S. Attorney Tiffany E. Fields are prosecuting the case.
Delaware Man Indicted in Project Safe Neighborhoods CaseRead the Press Release
PITTSBURGH, PA - A resident of Middletown, Delaware, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Tyrone Pratt aka Tyrone Booker, 37, as the sole defendant.
According to the indictment, on May 8, 2019, Pratt was found in possession of a firearm and ammunition after having already been convicted of at least one crime punishable by a term of imprisonment exceeding one year.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Allegheny County Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Day Trader Pleads Guilty to Computer Hacking and Securities Fraud Scheme Targeting Online Brokerage AccountsRead the Press Release
Earlier today, in federal court in Brooklyn, Joseph P. Willner, a self-described day trader, pleaded guilty to conspiring to commit securities fraud and illegally profiting from a series of coordinated trades involving more than 50 hacked online brokerage accounts. The plea took place before United States District Judge Margo K. Brodie. When sentenced, Willner faces up to five years in prison, as well as forfeiture and a fine of up to twice the gross loss caused by the conspiracy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, announced the guilty plea. Mr. Donoghue expressed his grateful appreciation to the United States Securities and Exchange Commission and the United States Commodity Futures Trading Commission for their significant assistance in the investigation.
“Willner and his co-conspirators used computer hacking to take the pump out of pump and dump, eliminating the need to trick investors into buying artificially inflated stock by simply hacking into brokerage firm accounts and having them buy the stock unbeknownst to the brokerage firms,” stated United States Attorney Donoghue. “While the approach was novel, the end result was all the same, with the defendant being held accountable for his criminal acts. No matter what cyber techniques fraudsters use, this Office and our law enforcement partners will bring them to justice.”
As alleged in the indictment and other court filings, between September 2014 and May 2017, Willner used his brokerage accounts to place “short sale” offers for publicly traded companies’ stock at artificially high market prices. Simultaneously, Willner’s co-conspirators hacked into victims’ online brokerage accounts and placed buy orders for the stock at the artificially high prices, matching Willner’s short sale offers. Willner and his co-conspirators then re-purchased the stock from the victims’ accounts at market or below-market prices. This sequence of fraudulent trades usually took place within minutes, and Willner immediately profited based on the difference between his artificially high short sale price and the lower price at which he re-purchased the stock.
As a result of Willner’s and his co-conspirators’ actions, the affected brokerage firms lost more than $2 million.
The government’s case is being prosecuted by the U.S. Attorney’s Office Business and Securities Fraud and National Security and Cybercrime Sections, and the Securities and Financial Fraud Unit of the Department of Justice Fraud Section. Assistant United States Attorneys Mark E. Bini and Craig R. Heeren and Department of Justice Trial Attorney Cory E. Jacobs are in charge of the prosecution.
The Defendant:
JOSEPH P. WILLNER
Age: 44
Ambler, PennsylvaniaE.D.N.Y. Docket No. 17-CR-620 (MKB)
Dallas County Man Sentenced to 37 Months for Possession of a Firearm After Conviction of a FelonyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Anthony Crusoe, a 42 year old resident of Mobile, Alabama was sentenced to 37 months of incarceration for possession of a Taurus 9mm pistol.
On March 28, 2019, Crusoe entered a guilty plea pursuant to a plea agreement and admitted in open court that on April 9, 2018, Mary Safford went to Rountree Outdoors in Selma, Alabama and filled out ATF Form 4473 so she could buy a 9mm pistol. On ATF Form 4473, Safford said that she was the transferee/buyer of the firearm knowing that was not true. In truth and in fact she was buying the firearm for Anthony Crusoe who she knew was a convicted felon. This untruthful statement was material to the lawfulness of the sale of the firearm. Safford was a straw purchaser of the firearm. On August 22, 2018, law enforcement officers attempted to execute an arrest warrant issued for Anthony Crusoe. They traveled to his home in Selma, Alabama. Some officers went to the front door and other officers went to the area behind the house. The front door officers knocked on the front door. No one answered. A few minutes later, the behind the house officers, observed Crusoe attempting to get into a vehicle that was parked behind his house while holding a blue duffel bag. Officers attempted to arrest Crusoe and he fled but was apprehended a short time later hiding in some bushes with the blue duffel bag. Crusoe was arrested and the Taurus pistol was found inside the blue duffle bag. At the time, Crusoe was a felon, due to his previous conviction for Unlawful Possession of Marijuana 1st Degree on February 13, 2003. Crusoe told law enforcement officers that he gave Safford $260 to buy the firearm for him after he picked it out and told her which firearm to buy. Safford told law enforcement officers that she purchased the firearm and within a week of the purchase, Crusoe was in possession of it.
Officers of the Selma, AL Police Department along with special agents of the ATF 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.
Dallas County Man Sentenced to 11 Months After Revocation of His Supervised ReleaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Rodney Blythe, a 49 year old resident of Selma, Alabama was sentenced to 11 months of incarceration after his supervised release term was revoked.
On July 11, 2019, Blythe admitted in open court that was convicted in the Municipal Court of Steele, Alabama of operating a vehicle under the influence of alcohol. United States District Court Judge Terry Moorer then revoked Blythe’s supervised release and admonished him telling Blythe that he placed innocent unsuspecting members of the community in danger by his conduct. Judge Moorer then sentenced Blythe to 11 months incarceration followed by 48 months of supervised release. The terms of his supervised release include alcohol counseling and complete alcohol abstinence.
Blyther was supervised by Jason Estes, Probation Officer, United States Probation Office, Southern District of Alabama. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.Convicted Felon Sentenced for Firearm OffenseRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for being a felon in possession of a firearm and ammunition.
David Amadin, 27, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 63 months in prison and three years of supervised release. In April 2019, Amadin pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
On July 9, 2018, after attempting to flee from law enforcement officers, Amadin was found in possession of a Springfield Amory Model 45 ACP XD5 .45 caliber semi-automatic pistol that contained five rounds of ammunition. Amadin had previously been convicted of a crime punishable by more than one year in prison and was therefore prohibited from possessing a firearm and ammunition. The gun had previously been reported stolen.
United States Attorney Andrew E. Lelling and Boston Police Commissioner William Gross made the announcement today. The case was prosecuted by Lelling’s Organized Crime and Gang Unit.
Conspiring to Distribute 15 Pounds of Ice Methamphetamine Lands Cedar Rapids Man in Federal Prison for 14 YearsRead the Press Release
A man who obtained more than 15 pounds of ice methamphetamine for redistribution in the Cedar Rapids, Iowa, area was sentenced July 11, 2019, to 14 years in federal prison.
Jonathan James Toomer, age 44, from Cedar Rapids, Iowa, received the prison term after a November 2, 2018, guilty plea to conspiring to distribute methamphetamine near a school and playground and possessing a firearm as an unlawful drug user.
Evidence at a prior hearing showed that, beginning in 2016, Toomer sold methamphetamine in the Cedar Rapids area. In the fall of 2017, Toomer acquired a California source for methamphetamine. Over the next approximately nine months, Toomer and his co-conspirators took multiple trips to California to obtain pounds of ice methamphetamine for resale in Cedar Rapids. In January 2018, officers executed a warrant at defendant’s house and camper in Hiawatha, Iowa. Inside defendant’s camper, the officers found approximately 80 grams of ice methamphetamine, drug ledgers, and a loaded handgun. Officers also seized over $44,000 in cash proceeds of Toomer’s prior methamphetamine sales inside a safe in the house.
Toomer also involved his minor child in the drug scheme, including taking him on trips to California to obtain methamphetamine. After Toomer was arrested on the federal drug charge, he spoke to his son from jail, directing him to pick up a package of methamphetamine that had been delivered to his trailer, and to contact his drug source in California and “stop all calls.”
Toomer was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Toomer was sentenced to 168 months’ imprisonment. He was ordered to forfeit a handgun and $78,947 in drug proceeds. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Toomer is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Special Assistant United States Attorney Drew Inman and Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00050-LTS-MAR.
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Colorado Man Sentenced for False Statement During Purchase of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Pueblo, Colorado, man convicted of False Statement During Purchase of Firearm was sentenced on July 15, 2019, by U.S. District Judge Karen E. Schreier.
David Aaron Freyn, age 40, was sentenced to 2 years of probation, 40 hours of community service, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Freyn was indicted by a federal grand jury on May 8, 2018. He pled guilty on April 22, 2019.
The conviction stemmed from an incident on November 6, 2016, when Freyn purchased a firearm at a gun shop in Sioux Falls, South Dakota. Freyn filled out a Department of Justice, Bureau of Alcohol, Tobacco, Firearms, and Explosives Form 4473, Firearms Transaction Record; however, Freyn knowingly made a false and fictitious written statement on that form when he claimed that he was the actual buyer of the firearm, when, in fact, he was not. Freyn knew he was purchasing the firearm for another person and knowingly made the false statement. The other person was a felon that was prohibited from purchasing or possessing firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearm, and Explosives. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Charleston Man Sentenced to Prison for Firearm OffenseRead the Press Release
HUNTINGTON, W.Va. – Marcus Smith, 46, from Charleston, West Virginia, was sentenced to 37 months in prison, announced United States Attorney Mike Stuart. Smith previously pled guilty today to being a felon in possession of a firearm.
On August 29, 2017, a Hurricane Police Officer conducted a traffic stop in Hurricane. Smith was a passenger in the vehicle. Officers located a loaded firearm under his seat. Smith was prohibited from possessing the firearm under federal law because of multiple prior felony convictions.
The case was investigated by the Hurricane Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Brackenridge Man Charged with Armed Robbery of Brackenridge Credit UnionRead the Press Release
PITTSBURGH, PA - A criminal complaint has been filed in federal court charging a resident of Brackenridge, PA., with the July 10, 2019 armed robbery of the Allegheny-Ludlum Brackenridge Federal Credit Union, United States Attorney Scott W. Brady announced today.
The one-count Criminal Complaint named Thomas George as the sole defendant. George made his initial appearance in federal court today before Chief Magistrate Judge Cynthia Reed Eddy. George has been detained without bail pending a preliminary hearing.
According to the Affidavit in Support of the Criminal Complaint, on July 10, 2019 at around 2 p.m. George entered the Allegheny-Ludlum Brackenridge Federal Credit Union, located at 1131 Brackenridge Avenue in Brackenridge, PA, armed with a handgun and took approximately $101,000 in $5 and $10 denominations from the vault located in the teller area. The Affidavit also says that an eyewitness tip regarding a potential getaway vehicle led to the identification of George as the person responsible for the armed robbery.
The law provides for a maximum total sentence of 25 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the charges in this case.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that the defendant is guilty of an offense.
Boston Man Sentenced for Selling Fentanyl Near PlaygroundRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for selling fentanyl near a playground.
Joshua Miranda, 28, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years in prison and six years of supervised release. In April 2019, Miranda pleaded guilty to two counts of distribution of fentanyl within 1,000 feet of a playground. At the time of these violations, Miranda was already on supervised release in federal court on a prior firearms offense.
On June 8, 2017, and again on June 19, 2017, Miranda distributed fentanyl within 1,000 feet of Robert Ryan Playground in Dorchester.
United States Attorney Andrew E. Lelling and Boston Police Commissioner William Gross made the announcement today. The case was prosecuted by Lelling’s Organized Crime and Gang Unit.
Berkeley County woman admits to role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Courtney Guess, of Martinsburg, West Virginia, has admitted to her role in a cocaine, heroin, and fentanyl distribution operation, United States Attorney Bill Powell announced.
Guess, age 24, pled guilty to one count of “Distribution of Heroin.” Guess admitted to selling heroin in Berkeley County in May 2018.
Guess is facing up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the cases on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Berkeley County woman admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Mary Virginia Cook, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Cook, age 26, pled guilty to one count of “Aiding and Abetting a False Statement During Purchase of Firearms.” Cook admitted to making false statements when purchasing a .40 caliber pistol and a 9mm pistol in Berkeley County in February 2018.
Cook is facing up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Benson Man Sentenced to 30 Years Imprisonment After Soliciting Child Pornography from Minors on the InternetRead 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 Andrew Jonathan Bowles, 28, of Benson to 360 months’ imprisonment, followed by 15 years of supervised release. Bowles pled guilty to one count of manufacturing child pornography on January 24, 2019.
In July 2017, the Washington DC Metropolitan Police Department conducted an undercover investigation that identified an online profile out of North Carolina that was posting on internet forums about a desire to have sex with children. Metro PD referred the investigation to the FBI in North Carolina, who reached out to the target profile using an undercover investigator. In November of 2017, the target profile repeatedly expressed interest in engaging in sexual activity with the undercover persona’s supposed 10-year-old daughter. The target also distributed child pornographic files to the FBI’s undercover persona.
Through undercover conversation and legal process, the FBI was able to identify the target profile as belonging to the defendant Andrew BOWLES. Law enforcement executed a search warrant at BOWLES’ Benson residence on December 6, 2018. They seized multiple electronic devices, which were found to contain over 2,600 images and 1,200 videos of child pornography. BOWLES agreed to be interviewed and admitted to downloading and sharing child pornography.
Further forensic examination of BOWLES cellphone revealed that he had communicated online with children under 16 years old in an attempt to convince the children to send him sexual photographs. On two occasions, BOWLES was successful, convincing minors to produce and send to him photographs depicting their genitals. FBI agents were able to identify the victims and confirm their interactions with BOWLES.
Mr. Higdon commented: “I want to commend the FBI and the Metropolitan Police Department in Washington, D.C. for their quick action and effective work targeting the defendant’s dangerous and predatory conduct. Their work saved many young people unspeakable anguish. We are also mindful of the harm to the actual victims who were identified in this investigation. The Court’s sentence recognized that harm and, we hope, will be a part of the healing process for these vulnerable victims.”
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
The investigation of this case was conducted by the Raleigh Police Department, the Washington DC Metropolitan Police Department, and the Federal Bureau of Investigation. Assistant United States Attorneys Melissa Belle Kessler and Jake D. Pugh represented the government.
Arizona Man – Permanent Resident of the U.S. – Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Joe Kelly announced that Senior United States District Judge Laurie Smith Camp sentenced Francisco Guevara-Zamudio on Monday to a 120-month term of imprisonment to be served in the U.S. Bureau of Prisons. Guevara-Zamudio, of Arizona, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine.
During the first few months of 2018, Guevara-Zamudio conspired with others to distribute methamphetamine throughout the Omaha/Council Bluffs metropolitan area. Guevara-Zamudio participated in several pound and multi-pound methamphetamine transactions in May of 2018 and rented a storage unit in Omaha for the use of a drug trafficking organization. Guevara-Zamudio was arrested on June 5, 2018, at a residence in Honey Creek, Iowa. The residence was rented through Airbnb by a co-conspirator and used by Guevara-Zamudio and two co-defendants. Investigators seized more than 10 lbs. of methamphetamine, several firearms including an AR-15-style assault rifle, magazines, ammunition, and several prescription medications. Guevara-Zamudio’s Permanent Resident card was also found in the home. Guevara-Zamudio is the eighth defendant to be sentenced in the case. Guevara-Zamudio will be removed from the United States to Mexico by immigration authorities upon completion of the term of imprisonment.
The case was primarily investigated by the Drug Enforcement Administration – Omaha Field Division, the Omaha Police Department, and the Southwest Iowa Narcotics Task Force.
Area Man Sentenced to 110 Months in Federal Prison for Bank RobberyRead the Press Release
EUGENE, Ore.—Dannie Kay Alston, 67, was sentenced today to 110 months in federal prison and three years’ supervised release for robbing four Oregon and Southwest Washington banks in a four-week period beginning in August 2017. Alston has no known permanent residence.
On February 21, 2019, Alston pleaded guilty in federal court to the following bank robberies:
- August 7, 2017; Chase Bank in Vancouver, Washington; collecting $2,300
- August 15, 2017; Wells Fargo Bank in Medford, Oregon; collecting $4,690
- August 24, 2017; Wells Fargo Bank in Salem, Oregon; collecting $1,317
- September 9, 2017; First Interstate Bank in Roseburg, Oregon; collecting $3,441
In each of his robberies, Alston attempted to disguise his identity by wearing sunglasses and some type of ball or ski cap. He communicated with the targeted bank tellers primarily through handwritten notes or signs. At his last robbery, in Roseburg, witnesses were able to provide a description of Alston’s getaway vehicle, leading to his quick arrest by the Oregon State Police. Police recovered the note used in the Roseburg robbery, a starter’s pistol with loaded caps, a Taser, sunglasses, wig and $3,441 cash from Alston’s person and vehicle.
Alston is a career offender with a criminal history spanning five decades and four states. He has previous burglary convictions in California and Texas, robbery convictions in California, Florida and Oregon, as well as assault, theft and narcotics convictions.
During sentencing, U.S. District Court Judge Michael J. McShane ordered Alston to pay $11,748 in restitution.
This case was investigated by the FBI, Clark County Washington Sheriff’s Office, Medford Police Department, Oregon State Police and Roseburg Police Department. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Alien Smuggler Learns Fate for Trying to Run over Federal AgentRead the Press Release
McALLEN, Texas - A 38-year-old Mexican national who was trying to escape from law enforcement and nearly struck a Border Patrol (BP) agent in the process has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick.
Miguel Mendez-Fajardo pleaded guilty March 28, 2019.
Today, U.S, District Judge Randy Crane ordered him to prison for a total of 44 months. Not a U.S. citizen, Mendez-Fajardo is expected to face deportation proceedings following the sentence. At the hearing, additional evidence was also provided that detailed how Mendez had been harboring aliens in his stash house for several months. In handing down the sentence, the court noted the dangerousness of his conduct, to the point where his vehicle almost careened into a ditch - just hanging over the edge the embankment.
The investigation revealed Mendez-Fajardo was harboring illegal aliens at his residence in Mission. Law enforcement observed him leave the stash house and attempted to pull him over. Instead of complying, Mendez tried to run over a BP agent, forcing the agent to jump out of the way to avoid being struck.
Mendez continued to flee from law enforcement at high rate of speed through a neighborhood before crashing into a ditch.
Authorities ultimately discovered six illegal aliens at his stash house.
Mendez-Fajardo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP conducted the investigation with assistance from the Hidalgo County Precinct 4 Constables office. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.
Akron, Ohio Man Indicted on Bank Robbery ChargesRead the Press Release
PITTSBURGH, PA – A resident of Akron, Ohio has been indicted by a federal grand jury in Pittsburgh on three charges related to bank robbery, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on July 10 and unsealed today, names Vernon Marquis McGhee-Luster, 33, as the sole defendant.
According to the Indictment, on October 18, 2018, McGhee-Luster robbed the PNC Bank at 3830 Pine Ave., Erie, PA 15504. On October 24, 2018, McGhee-Luster robbed the Citizens Bank at 4761 Route 8, Allison Park, PA 15101 and attempted to rob the PNC Bank at 2802 Wilmington Road, New Castle, PA 16105.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Erie Police Department, the Hampton Township Police Department, the Neshannock Township Police Department, and the Akron Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Agencias De Órden Público Federal Responden A Los Actos Violentos Durante Las Protestas En El Viejo San JuanRead the Press Release
SAN JUAN, Puerto Rico - La Fiscalía Federal, el Buró de Investigaciones Federales (FBI), la Oficina de Alcohol, Tabaco, Armas de Fuego y Explosivos (ATF), la Oficina de Investigaciones de Seguridad Interna del Servicio de Inmigración y Control de Aduanas (ICE HSI) y la Administración de Control de Drogas (DEA) están trabajando junto con nuestros compañeros locales para investigar los actos violentos que ocurrieron anoche en el Viejo San Juan.
“Hacemos hincapié en que las manifestaciones pacíficas son un ejercicio de los derechos fundamentales de los ciudadanos, pero los actos violentos y la destrucción de propiedad no forman parte de una manifestación pacífica y no serán tolerados. Estamos desalentados por la violencia que algunos grupos han manifestado, investigaremos y enjuiciaremos a cualquier persona que haya violado la ley federal, con todo el peso de la ley”, dijo Rosa Emilia Rodríguez-Vélez, Fiscal Federal para el Distrito de Puerto Rico. “Seguimos vigilando la situación y actuaremos de inmediato, como lo hemos hecho en otras situaciones en que las manifestaciones pacíficas se han tornado violentas”.
“El FBI reconoce el derecho de la primera enmienda del público a protestar de manera pacífica. No obstante, el FBI investigará activamente cualquier acto de violencia que esté bajo nuestra jurisdicción y constituirá un delito federal en coordinación con nuestros compañeros encargados de hacer cumplir la ley y la oficina de Fiscalía Federal”, dijo Douglas A. Leff, Agente Especial a Cargo del FBI.
“La Oficina de Alcohol, Tabaco, Armas de Fuego y Explosivos se encuentra con todos nuestros compañeros locales, estatales y federales en Puerto Rico, e investigará agresivamente todas las violaciones de la ley que estén dentro de nuestra jurisdicción”, dijo Ari C. Shapira, Agente Especial a Cargo de ATF.
“El derecho a manifestarse como ejercicio de la libertad de expresión es un derecho inalienable que tiene que ser respetado siempre y cuando este ejercicio no viole los derechos de los demás,” dijo Ivan J. Arvelo, Agente Especial a Cargo de HSI San Juan. “HSI, junto a las demás agencias del orden público en Puerto Rico, estaremos vigilantes y no toleraremos violaciones a estatutos federales.”
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ATF, DEA and U.S. Border Patrol operation leads to arrest of 15 people involved in methamphetamine & heroin drug trafficking in Eastern WashingtonRead the Press Release
SPOKANE, Wash. – Early this morning, the Bureau Alcohol Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA) and the U.S. Border Patrol (USBP) led a large-scale enforcement action targeting a methamphetamine and heroin drug trafficking organization with ties to a Washington State based street gang identified as the Eastside Familia Norteno (ESF). Over 300 law enforcement officials, including federal agents and state and local officers executed 19 federal search warrants located in Grant, Yakima and Adams Counties.
On July 10, 2019, a federal grand jury in the Eastern District of Washington returned an indictment charging 16 individuals for conspiracy to distribute methamphetamine and heroin. The lead defendants in this case are Luis Manuel Farias-Carendas, 40, of Moses Lake, and Joshua Isaac Stine, 34, of Ephrata, who are accused of being the leaders of the drug trafficking conspiracy. Both were taken into custody today. Twelve others named in the indictment are also in custody pending an initial appearance in federal court in Spokane, Washington. They are:
Patrick Elliot Pearson, 47, of Moses Lake
Cristian Misael Gomez, 23, of Grant County
Luis Manuel Ramirez, 25, of Moses Lake
Zacarias Martinez-Garza, 23 of Moses Lake
Mariano Ruiz-Balderas, 19, of Moses Lake
Jesse Leon Manion Jr., 55, of Moses Lake
Heather Elaine Keating, 41, of Moses Lake
Leonel Caballero, 62, of Warden
Forrest Walker Herzog, 34, of Moses Lake
Amy Jo Dygert, 33, of Moses Lake
Michael Edward McLaughlin, 59, of Ephrata
Jesus Valenica-Morfin , 31, of Yakima
One additional person, Tomas Gomez, 49, of Los Angeles, Calif., was also arrested during the operation and charged by federal complaint.
The 15 individuals were arrested in the following cities: 11 in Moses Lake, one in Ephrata, two in Yakima, and one in Warden. At this time, agents and officers have seized pound quantities of methamphetamine, cocaine and heroin, over 50 firearms and U.S. currency.
This investigation is a continuation of law enforcement efforts in December 2017, which focused on violent drug traffickers who were operating in Grant County. The earlier investigation resulted in 24 individuals who have pled guilty in federal court and eight pounds of methamphetamine, 10 vehicles, $25,000 and more than 80 firearms were seized.
The following agencies provided significant assistance for today’s enforcement action: ATF, DEA, USBP, United States Marshals Service, Homeland Security Investigations, Bureau of Indian Affairs, Grant County Sheriff’s Office, Moses Lake Police Department, Interagency Narcotics Enforcement Team, Washington State Patrol, Idaho State Police, Adams County Sheriff’s Office, Law Enforcement Against Drugs, Yakima Police Department, Columbia River Drug Task Force, North Central Washington Narcotics Task Force, Warden Police Department, Ephrata Police Department and Quincy Police Department.
The case is being prosecuted by Caitlin Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
An Indictment Contains Mere Allegations That an Individual Has Committed a Crime. Every Individual Is Presumed Innocent Until and Unless Proven Guilty Beyond a Reasonable Doubt in a Court of Law.
PIO Contacts:
U.S. Attorney’s Office Spokane – George Jacobs, Assistant United States Attorney, (509) 353-2767
DEA Seattle – Jodie Underwood (206) 553-1162 / (206)571-1996
ATF Seattle – Jason Chudy (206) 573-7493
USBP Spokane – Bill Kingsford (509) 468-3808
30 Year Prison Term for Production of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Dale Gordon Black, age 63, of Kennewick, Washington, was sentenced after having pleaded guilty on December 18, 2018, to three counts of Production of Child Pornography. Senior United States District Judge Edward F. Shea sentenced Black to a 30-year term of imprisonment, to be followed by a lifetime of court supervision after he is released from federal prison. The court ordered Black to forfeit $185,900 in cash and his Subaru Legacy, and to pay $305,000 in fines, $5,000 of which was imposed under the Justice for Victims of Trafficking Act.
According to information disclosed during court proceedings, on July 18, 2017, undercover Federal Bureau of Investigation agents downloaded a child pornography video from an Internet Protocol address that resolved to Black's residence using a peer-to-peer file sharing program.
Investigators obtained a search warrant and seized many electronic devices from Black’s residence. A forensic examination of Black’s electronic devices revealed child pornography images that he had produced. The images were of three children Black knew either as neighbors or through his work in a local youth mentoring program. Black produced the images at his house and on overnight trips he took alone with the children.
Joseph H. Harrington said, “Prosecuting those who would produce pornographic images of vulnerable minors is a priority of the United States Attorney’s Office for the Eastern District of Washington. The sentence imposed in this case serves as a stern warning to offenders that you will be held accountable for your actions. I commend the dedicated work of the federal, state and local law enforcement officers who investigated this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation with assistance from the Southeast Internet Crimes Against Children Task Force, Richland Police Department and Kennewick Police Department. This case was prosecuted by Alison L. Gregoire, an Assistant United States Attorney for the Eastern District of Washington.
22 Los Angeles-Based Members of MS-13 Transnational Gang Named in Federal Racketeering Case that Alleges String of Grisly MurdersRead the Press Release
LOS ANGELES – An investigation by federal and local authorities has resulted in a federal racketeering case that charges 22 people linked to the MS-13 transnational gang, most of whom allegedly participated in a series of murders, including several slayings in which victims were hacked to death with machetes in the Angeles National Forest.
A 12-count indictment unsealed Monday afternoon alleges that members and associates of the gang murdered seven people over the last two years. The indictment charges gang leaders who allegedly authorized and coordinated the murders. Also charged are gang members who allegedly murdered and attempted to murder rival gang members, those who were perceived to be cooperating with law enforcement, and, in one instance, a homeless man who was temporarily living in a park controlled by the gang.
The indictment focuses on a particularly violent subset of the gang known as the Fulton clique, which operates in the San Fernando Valley and has recently seen an influx of young immigrants from Central America. Under the influence of these young gangsters, younger associates who wanted to become members of MS-13 were “required to kill an MS-13 rival or someone perceived to be adverse to MS-13 to be initiated into MS-13,” according to the indictment.
In one murder detailed in the indictment, several MS-13 members allegedly targeted a rival gang member who was believed to have defaced MS-13 graffiti. On March 6, 2017, according to the indictment, the rival gang member was abducted, choked, and driven to a remote location in the Angeles National Forest, where six people attacked him with a machete. The victim was dismembered, and his body parts were thrown into a canyon after one of the defendants allegedly cut the heart out of the victim’s body.
The federal RICO case – which was unsealed Monday during arraignments for three defendants who were taken into custody over the past several days in the Los Angeles area – is the product of an investigation by the Los Angeles Metropolitan Task Force on Violent Gangs, which is made up of special agents with the Federal Bureau of Investigation, officers with the Los Angeles Police Department, and deputies with the Los Angeles County Sheriff’s Department. A fourth defendant was arrested over the weekend in Oklahoma.
Over the past year, the other 18 defendants named in the indictment were taken into custody, some on state charges and some on federal charges previously filed. The superseding indictment announced today, which was returned by a federal grand jury on July 9, adds 15 defendants to an indictment filed in March.
“We have now taken off the streets nearly two dozen people associated with the most violent arm of MS-13 in Los Angeles, where the gang is believed to have killed 24 people over the past two years,” said United States Attorney Nick Hanna. “This investigation has been an unqualified success. The collaborative law enforcement effort solved several murder cases and dealt a severe blow to members of the gang who engaged in acts of brutality not seen in the region for over 20 years. The prosecution of these defendants would not have been possible without the backing of local law enforcement, including District Attorney Jackie Lacey, who has supported our efforts every step of the way and has dedicated substantial resources to ensure that all of these defendants get the justice they deserve.”
“Taking violent offenders off the street should send a message to MS-13 members and their associates that medieval-style violence and senseless murder will not be tolerated in Los Angeles,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Working with our local partners, we expect to impact MS-13’s influence in gang-occupied communities.”
“The greatest tragedy in these cases is that these young victims likely left their homelands hopeful that in the United States they would find safety and prosperity,” Los Angeles County District Attorney Jackie Lacey said. “Instead, these victims had the misfortune of crossing paths with violent gang members who preyed on the vulnerabilities of their immigrant experience. My office will vigorously prosecute these defendants and continue to work with other agencies to enhance public safety in the communities where MS-13 and other brutal gangs operate.”
“Today’s charges are the product of diligent work and a steadfast resolve that we will not let violent criminals continue to victimize our residents,” said Los Angeles Police Chief Michel Moore. “It can only be accomplished through the shared vision of our state, local, and federal law enforcement partners.”
“The Los Angeles County Sheriff’s Department is always willing to work with our local, state and federal law enforcement counterparts to ensure public safety,” said Sheriff Alex Villanueva.
The 78-page indictment charges all but one of the 22 defendants with conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. The RICO charge alleges nearly 200 “overt acts,” beginning with the transportation of $1.22 million in narcotics proceeds that were seized in Nebraska in 2010. As part of the RICO conspiracy, members of the gang allegedly committed murders in 2014 and 2015, the second of which is part of a previous racketeering case against the leadership of MS-13 in Los Angeles.
The majority of the conduct outlined in the indictment – including seven murders – started in 2017 and continued into this year. While the indictment focuses on murders committed to increase the gang’s membership, expand the gang’s power and intimidate outsiders, the RICO charge also alleges drug-trafficking activities, including the sale of narcotics to the Fulton clique in Maryland.
In addition to the conspiracy charge, the indictment contains four counts of first-degree murder related to machete, knife and baseball bat killings in the Angeles National Forest, which is within the special maritime and territorial jurisdiction of the United States. Those four murders – along with a fifth that occurred in the Malibu hills and a sixth in that was committed in the Fulton clique’s stronghold of Whitsett Fields Park in North Hollywood – are also charged as violent crimes committed in aid of racketeering (VICAR), and those six counts allege that the victims were killed “for the purpose of gaining entry to and maintaining and increasing position in MS-13 Los Angeles.”
The indictment also contains allegations that the six VICAR murders were committed “in an especially heinous, cruel, or depraved manner in that [they] involved torture or serious physical abuse to the victim.” The 16 defendants charged in relation to those six murders are eligible for the federal death penalty, although the government has not indicated whether it will seek such a sentence for any of the defendants if they are convicted.
In addition to the RICO case announced today, there are two under-seal cases pending against juvenile defendants in United States District Court.
In 2017, as the result of another investigation by the Los Angeles Metropolitan Task Force on Violent Gangs, a federal grand jury issued a RICO indictment that targeted MS-13’s leadership across the Los Angeles region. That indictment, which alleged three murders attributed to the Fulton clique, charged 34 defendants, 14 of whom have pleaded guilty. Nineteen of the defendants are currently scheduled for trial on September 24. One defendant in that case – Sergio Alexander Galindo, also known as “Killer” – remains a fugitive.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The federal RICO case is being prosecuted by Assistant United States Attorney Joanna Curtis of the Violent and Organized Crime Section and Deputy District Attorneys Eric W. Siddall and Carmelia Mejia, Los Angeles County Deputy District Attorneys who have been designated as Special Assistant United States Attorneys.
Indictment17 Members and Associates of Queens-Based Makk Balla Brims Set of the Bloods Gang Indicted for Racketeering, Including Predicate Acts of Robbery and Firearms OffensesRead the Press Release
A superseding indictment was unsealed today in federal court in Brooklyn charging 17 members and associates of the Makk Balla Brims set of the Bloods street gang with crimes related to their participation in a robbery crew that used guns and violence to steal property over a nine-month period in 2017 in Queens and on Long Island. The 16 newly charged defendants were arrested today, and all but three will be arraigned this afternoon before United States Magistrate Judge Steven M. Gold. The remaining defendants, who are incarcerated in state and federal facilities, will be arraigned on a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the indictment.
“As alleged, members and their associates of the Makk Balla Brims set of the Bloods committed numerous, violent armed robberies, victimizing families in their homes and employees and patrons of local businesses, including a barber shop,” stated United States Attorney Donoghue. “We are working tirelessly with our law enforcement partners to ensure that our community is protected from the threat posed by violent street gangs such as this one.” Mr. Donoghue expressed his grateful appreciation to the Port Washington Police Department, Nassau County Police Department and New York State Department of Corrections for their assistance during the investigation.
“Members of this gang allegedly attacked innocent people in their own homes, believing they could act without consequences,” stated FBI Assistant Director-in-Charge Sweeney. “Our goal when we open an investigation into violent gangs is to take out the leadership. This case is a perfect example of how we don’t stop simply by making a few arrests, we will continue to investigate and track down all those involved in their criminal activity and stop them from literally terrorizing a community in their lust for violence.”
“Targeting and dismantling criminal groups, and preventing violence that is often associated with their illegal activities, continues to be among the highest priorities for the NYPD and our law enforcement partners,” stated NYPD Commissioner O’Neill. “I commend and thank the attorneys from the U.S. Attorney’s Office, Eastern District of New York for bringing this case forward, and the NYPD investigators for their hard work to keep our communities safe and further reduce crime and disorder.”
The Makk Balla Brims set of the Bloods is comprised primarily of members residing in and around the South Jamaica Houses and the American Towers in Queens. As alleged in the indictment and other court filings, between May 2017 and December 2017, the defendants participated in 11 robberies or attempted robberies, brandishing or using guns during most of the crimes. The defendants targeted individuals they believed would be in possession of large amounts of cash, electronics, jewelry or narcotics. Upon receiving a tip about a promising victim, the Makk Balla Brims would assemble a crew to carry out the robbery, and the participants adopted various roles for the crime, including lookout, getaway driver and gunman. Several of the charged robberies are described below:
The Barber Shop Robbery
On September 23, 2017, Michael Miles, Shamel Simpkins, Reshawn Smith, Kimberly Thompson and other co-conspirators robbed the Jevo Barber Shop in Jamaica, Queens. Simpkins chose the crew members, Miles was armed with a TEC-9 semiautomatic pistol and Thompson drove the getaway car. Miles and Smith entered the shop and removed gold chains, cell phones and cash from the victims, as well as cash proceeds from the business.
Home Invasion and Torture
On September 29, 2017, Andre Barnaby, Brandon Darby and Pierre Raymond broke into a home in Elmont, Long Island that they believed to be a marijuana stash house, while Simpkins and Shawn Silvera remained in the getaway car. Darby and Raymond wore masks and brandished guns. They tied up one victim with an extension cord and demanded marijuana and cash. When the victim stated that he did not have marijuana, Raymond and Darby heated up a knife and repeatedly burned the victim’s legs.
Home Invasion and Shooting
On October 11, 2017, James Roberson, Simpkins, Thompson and other co-conspirators robbed a house in North Valley Stream, Long Island, where they believed a jewelry store owner kept jewelry and cash. Roberson and several co-conspirators forced their way into the house brandishing guns, and restrained the victim’s family members using zip ties. Roberson shot the victim in the stomach before fleeing with jewelry and electronics. The victim received medical treatment and survived.
Targeting Homes with Outdoor Indian Flags
In at least two robberies, the defendants looked for homes where Indian flags were flying because they believed the residents kept gold and cash inside. Avery Mitchell posed as a deliveryman wearing a United Parcel Service (UPS) jacket to enter a house, where he and other co-conspirators restrained two young girls at gunpoint. Mitchell and the crew fled with electronics and jewelry. On November 19, 2017, Davis, Nahjuan Perry, Mitchell and other co-conspirators robbed a second house where Indian flags were flying outside. Mitchell again donned a UPS jacket as a ruse to gain entry, and shot one resident before fleeing empty-handed.
Eleven defendants -- Andre Barnaby, Brandon Darby, Antonio Davis, Michael Miles, Avery Mitchell, Nahjuan Perry, James Roberson, Shawn Silvera, Shamel Simpkins, Rashawn Smith, and Kimberly Thompson -- are charged with racketeering, including predicate acts of Hobbs Act robberies, robbery under New York State law and related firearms offenses. Five additional defendants -- Matthew Elias, Tyquan Henderson, Pierre Raymond, Latiff Thompson, and Lawrence Woods -- are newly charged with Hobbs Act robbery and related firearms offenses. Constantin Cheese was previously charged with Hobbs Act robbery and related firearms offenses in an underlying indictment.
If convicted, each defendant faces a mandatory minimum sentence of at least seven years’ imprisonment and a maximum of life imprisonment.
The charges in the indictments are allegations and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan E. Algor and Jennifer M. Sasso are in charge of the prosecution.
The Defendants:
ANDRE BARNABY (also known as “Goonie Dre”)
Age: 27
Queens, New YorkCONSTANTIN CHEESE (also known as “Cheese”)
Age: 31
Queens, New YorkBRANDON DARBY (also known as “Barrack”)
Age: 28
Queens, New YorkANTONIO DAVIS (also known as “Big Blood”)
Age: 38
Queens, New YorkMATTHEW ELIAS (also known as “Heddis”)
Age: 36
Queens, New YorkTYQUAN HENDERSON (also known as “Gun Play”)
Age: 22
Queens, New YorkMICHAEL MILES (also known as “Michael Davis” and “Menace”)
Age: 35
Queens, New YorkAVERY MITCHELL (also known as “Slay”)
Age: 24
Queens, New YorkNAHJUAN PERRY (also known as “Nas”)
Age: 24
Queens, New YorkPIERRE RAYMOND (also known as “Leeky”)
Age: 21
Queens, New YorkJAMES ROBERSON (also known as “Littles”)
Age: 24
Queens, New YorkSHAMEL SIMPKINS (also known as “Sha Bang”)
Age: 32
Queens, New YorkSHAWN SILVERA (also known as “Dum Out”)
Age: 26
Queens, New YorkRASHAWN SMITH (also known as “Shawn”)
Age: 22
Queens, New YorkKIMBERLY THOMPSON (also known as “Kimmy”)
Age: 23
Queens, New YorkLATIFF THOMPSON (also known as “La Banga”)
Age: 30
Queens, New YorkLAWRENCE WOODS (also known as “Lazo”)
Age: 33
Queens, New York
15 July 2019
Wheeling man sentenced for distributing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Randy Lee Donahue, Jr., of Wheeling, West Virginia, was sentenced today to 57 months incarceration for distributing methamphetamine, United States Attorney Bill Powell announced.
Donahue, age 38, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine within 1,000 Feet of a Protected Location” in May 2019. Donahue admitted to distributing methamphetamine from an apartment located at 97 16th Street in Wheeling, within 1,000 feet of Wheeling Central Catholic High School in November 2018.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
United States Attorney announces the departure of First Assistant U.S. Attorney Cynthia RidgewayRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announces impending leadership team changes within the Executive Committee staff at the U.S. Attorney’s Office.
First Assistant United States Attorney Cynthia J. Ridgeway has accepted a position as a Corporate Strategy Director with Indianapolis-based Anthem, Inc. and has resigned from the U.S. Attorney’s Office. FAUSA Ridgeway’s final day in the office will be July 29, 2019.
Cynthia has spent 15 years in federal public service representing the United States of America. Cynthia was hired in 2004 by now Congresswoman Susan Brooks and then-First Assistant U.S. Attorney Timothy Morrison. For several years, Cynthia prosecuted drug and violent crime matters under the supervision of John Dowd. From there, Cynthia was promoted to serve as Chief of the National Security Unit. Cynthia also litigated high profile complex white collar matters as a member of the General Crimes Section before being elevated to the position of First Assistant by United States Attorney Josh Minkler.
Prior to her role with the Justice Department, Cynthia was Special Counsel at the Marion County Prosecutor’s Office where she oversaw high profile litigation, public relations, and served on the leadership team. Cynthia was hired to serve the office directly following law school by Marion County Judge Sheila Carlisle. Additionally, Cynthia served the office as Chief of the Sex Crimes and Child Abuse Unit under the leadership of Marion County Judge Lisa Borges.
The United States Attorney extends his heartfelt gratitude to Cynthia for her years of dedicated service.
U.S. Attorney for the Virgin Islands to Spearhead Disaster Fraud TrainingRead the Press Release
On Thursday, July 18, U.S. Attorney for the Virgin Islands Gretchen C.F. Shappert will kick off a two-day training session for HUD Community Development and Block Grant – Disaster Recovery grantees, sub-grantees and contractors, and law enforcement agencies.
The training is being hosted in conjunction with the U.S Department of Housing and Urban Development, Office of Inspector General (HUD OIG). It will include presentations from staff from the Inspectors General of U.S. Department of Homeland Security and HUD. Representatives from HUD and the National Center for Disaster Fraud will also provide remarks.
The devastation impacted by Hurricanes Maria and Irma in the U.S. Virgin Islands resulted in disaster aid from the federal government of more than $1.8 billion to date.
This training will highlight HUD’s disaster assistance program requirements, and risks, as well as, familiarize Virgin Islands’ grant personnel and members of the law enforcement community on issues related to disaster fraud investigations.
"The investigation and prosecution of government programs fraud and procurement fraud are priorities of this U.S. Attorney’s Office," Shappert said. "Taxpayers have every right to expect that fraudsters and scam artists will suffer the consequences of their criminal actions. We are grateful that HUD OIG has agreed to provide this valuable training in the USVI. This is a tremendous opportunity for prosecutors and law enforcement officers to study effective investigative techniques and to learn from one another."
"In developing these training forums, it is our objective to leverage the knowledge and expertise from many resources," said Lisa R. Gore, Special Agent in Charge for Disasters, HUD OIG. "It is our intent that these sessions offer jurisdictional specific awareness to staff on the ground and create the best learning opportunity available."
During the forum, attendees will hear speakers discuss:
- The National Center for Disaster Fraud longstanding expertise in disaster aid deception
- HUD’s CDBG-Disaster Recovery Program Life-cycle
- Develop an understanding of audit "control weaknesses" and key indicators of fraud risks
- The most common audit findings of disaster grantees
- Common fraud schemes in HUD disaster programs
- Issues related to the prosecution of disaster fraud investigations; and,
- Investigative case studies from HUD OIG, and DHS OIG
At the conclusion of the training, all attendees must attest to their awareness that grantees, sub-grantees, and contractors must adhere to the controls, standards, processes, corrective actions, and procedures as described in Title 24 of the Code of Federal Regulations, Part 570 governing U.S. Housing and Urban Development regulations concerning Community Development Block Grants.
If you suspect fraud in HUD’s Disaster Recovery programs, please email the HUD OIG at HOTLINE@hudoig,gov or contact the National Center for Disaster Fraud at the number listed below.
Two Men Charged with Local Robbery SpreeRead the Press Release
Trey Hasegawa, 21, and Matthew Middleton, 26, were charged today with conspiring to interfere with commerce by robbery. The conspiracy charge carries a maximum term of 20 years imprisonment and a maximum fine of $250,000. Both Hasegawa and Middleton have been remanded to federal custody pending further proceedings.
Kenji M. Price, U.S. Attorney for the District of Hawaii, announced that the complaint alleges that over the span of two days Hasegawa and Middleton targeted three convenience stores, one on Waialae Avenue, one on S. King Street, and one on Nuuanu Avenue. On July 8 and 9, cashiers at three 7-Eleven stores handed money to a male brandishing what appears to be a handgun. At this time, the total amount of currency taken is undetermined.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, and the Honolulu Police Department. It is being prosecuted by Assistant U.S Attorney Margaret Nammar.
Two Floridians Plead Guilty in Robbery of I-81 Travel Plaza in Wythe CountyRead the Press Release
Abingdon, VIRGINIA – A Florida man and woman, who traveled in a stolen vehicle and committed a robbery at the I-81 Travel Plaza in Wythe County, pleaded guilty last week in U.S. District Court in Abingdon to a series of related federal charges, United States Attorney Thomas T. Cullen announced.
Michael Anthony Wilson, 25 and Perla Isel Pineda-Osorio, 24, both of Sarasota, Fla., pleaded guilty last week, while a third defendant, Christyen Elijah Sumpter, is scheduled to plead guilty on July 25, 2019.
On Thursday, July 11, 2019, in U.S. District Court, both defendants pleaded guilty to one count of robbery by threatening physical violence, one count of transporting a vehicle in interstate commerce knowing the same vehicle to have been stolen, and one count of conspiracy to commit robbery, possess a motor vehicle that had crossed a state boundary after being stolen, and transporting in interstate commerce a vehicle that had been stolen.
“We are taking a zero-tolerance approach with individuals who commit acts of violence with firearms,” U.S. Attorney Cullen stated today. “Robbery can, under many circumstances, result in federal prosecution, and we are committed to working with our federal, state, and local partners to identify violent offenders and send them to federal prison.”
According to court documents, on May 28, 2018, an individual in South Carolina picked up Pineda-Osorio, Sumpter, and Wilson, who posed as hitchhikers. The three defendants pulled guns on the driver and demanded that he take them to various ATMs to withdraw money from his account. After taking the driver’s money, they abandoned him on the side of the rode and stole his vehicle. Pineda-Osorio, Sumpter, and Wilson then proceeded to Charlotte, North Carolina, where they robbed a convenience store. The three committed a similar armed robbery at a store in Jonesville, North Carolina. Later that same night, all three committed another robbery at the I-81 Travel Plaza in Wythe County, Virginia. Soon after the robbery, law enforcement spotted the stolen vehicle in which they were traveling and a high-speed chase ensued. The vehicle eventually crashed and the defendants were taken into custody. The guns used in the robberies were recovered and, while looking like real firearms, were determined to be BB guns. At sentencing, the defendants each face a maximum of thirty-five years in prison.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Wythe County (VA) Sheriff’s Office, with assistance by Charlotte Mecklenburg (NC) Police Department, Jonesville (NC) Police Department, Montgomery County (VA) Sheriff’s Office, New River Valley (VA) Regional Jail, Orangeburg (SC) Department of Public Safety, Pulaski County (VA) Sheriff’s Office, Sarasota (FL) Police Department, South Carolina State Police, and Virginia State Police.
Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Trafficker Admits Smuggling Large Quantities of Deadly Fentanyl, Methamphetamine, and Cocaine, Including More Than 450,000 Fentanyl PillsRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – July 15, 2019
SAN DIEGO – April Spring Kelly admitted in federal court today that she smuggled more than 450,000 fentanyl pills from Mexico into the United States during a nine-month conspiracy from February to October of 2018.
According to admissions in her plea agreement, Kelly smuggled the fentanyl pills through ports of entry in San Diego and Nogales, Arizona, for distribution to mid-level distributors in San Diego and Phoenix.
Kelly, a U.S. citizen living in Tijuana, also admitted to smuggling large quantities of fentanyl, methamphetamine and cocaine in her vehicle as she attempted to cross the international border at the San Ysidro Port of Entry on November 30, 2018. According to court documents, she admitted attempting to smuggle 36.24 pounds of methamphetamine, 37.83 pounds of cocaine, and 11.99 pounds of powdered fentanyl in her vehicle. She was arrested that day by U.S. Customs and Border Protection officials.
Sentencing is scheduled for October 11, 2019 at 9 a.m. before U.S. District Judge Janis Sammartino.
“San Diego is the gateway for fentanyl to the rest of the country, and we are working aggressively to close that gate, one smuggler and one distributor at a time,” said U.S. Attorney Robert Brewer. “With so many lives at stake, we are pursuing more of these cases than ever.”
Brewer praised federal agents from Homeland Security Investigations, the Drug Enforcement Administration and U.S. Customs and Border Protection, who are on the front lines of this fentanyl surge.
“Today’s guilty plea is an example of the significant results that can be achieved when law enforcement agencies form a great partnership and work diligently to bring a case to prosecution,” said Juan Munoz, Acting Special Agent in Charge for Homeland Security Investigations (HSI) in San Diego. “HSI will continue to investigate individuals who bring dangerous drugs such as fentanyl into the U.S. and endanger the families in our communities. We urge everyone to take the time to learn about these deadly drugs and take the steps necessary to protect their families and loved ones.”
“Deadly drugs like fentanyl are devastating families throughout San Diego,” said DEA Special Agent in Charge Karen Flowers. “April Kelly’s guilty plea today is a victory for all San Diegans. Kelly is only 38 years old and she will pay for her actions of pure greed by spending a very long time – potentially life - in prison. This should serve as a warning to anyone who traffics drugs: DEA will investigate and arrest you and the U.S. Attorney’s Office will prosecute you to the fullest extent of the law.”
DEFENDANT Case Number 18cr5463JLS
April Spring Kelly Age: 38 San Diego, California
SUMMARY OF CHARGES Case Number
Counts 1, 2 and 3 – Importation of Methamphetamine, Cocaine, and Fentanyl, in violation of 21 U.S.C. 841 and 846.
Maximum Penalty: Life in prison (10-year minimum mandatory); $10 million fine
Count 4 – Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. 841 and 846
Maximum Penalty: Life in prison (10-year minimum mandatory); $10,000,000 fine; supervised release; $100 special assessment).
INVESTIGATING AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Customs and Border Protection
The Department of Justice and Department of Homeland Security Issue Third Country Asylum RuleRead the Press Release
Tomorrow, a joint Interim Final Rule (IFR) issued by the Departments of Justice and Homeland Security will publish in the Federal Register.
This IFR uses the authority delegated by Congress in section 208(b)(2)(C) of the Immigration and Nationality Act to enhance the integrity of the asylum process by placing further restrictions or limitations on eligibility for aliens who seek asylum in the United States. Specifically, the Departments of Justice and Homeland Security are revising 8 C.F.R. § 208.13(c) and 8 C.F.R. § 1208.13(c) to add a new bar to eligibility for asylum for an alien who enters or attempts to enter the United States across the southern border, but who did not apply for protection from persecution or torture where it was available in at least one third country outside the alien’s country of citizenship, nationality, or last lawful habitual residence through which he or she transited en route to the United States.
Attorney General William P. Barr issued the following statement:
“This Rule is a lawful exercise of authority provided by Congress to restrict eligibility for asylum. The United States is a generous country but is being completely overwhelmed by the burdens associated with apprehending and processing hundreds of thousands of aliens along the southern border. This Rule will decrease forum shopping by economic migrants and those who seek to exploit our asylum system to obtain entry to the United States—while ensuring that no one is removed from the United States who is more likely than not to be tortured or persecuted on account of a protected ground.”
The bar is subject to three limited exceptions, including:
(1) an alien who demonstrates that he or she applied for protection from persecution or torture in at least one of the countries through which the alien transited en route to the United States, and the alien received a final judgment denying the alien protection in such country;
(2) an alien who demonstrates that he or she satisfies the definition of “victim of a severe form of trafficking in persons” provided in 8 C.F.R. § 214.11; or,
(3) an alien who has transited en route to the United States through only a country or countries that were not parties to the 1951 Convention relating to the Status of Refugees, the 1967 Protocol, or the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment.
Asylum is a discretionary benefit offered by the United States Government to those fleeing persecution on account of race, religion, nationality, membership in a particular social group, or political opinion.
Department of Homeland Security Acting Secretary Kevin K. McAleenan issued the following statement:
"While the recent supplemental funding was absolutely vital to helping confront the crisis, the truth is that it will not be enough without targeted changes to the legal framework of our immigration system. Until Congress can act, this interim rule will help reduce a major 'pull' factor driving irregular migration to the United States and enable DHS and DOJ to more quickly and efficiently process cases originating from the southern border, leading to fewer individuals transiting through Mexico on a dangerous journey. Ultimately, today's action will reduce the overwhelming burdens on our domestic system caused by asylum-seekers failing to seek urgent protection in the first available country, economic migrants lacking a legitimate fear of persecution, and the transnational criminal organizations, traffickers, and smugglers exploiting our system for profits.”
The United States has experienced a dramatic increase in the number of aliens encountered along or near the southern land border with Mexico. This increase corresponds with a sharp increase in the number, and percentage, of aliens claiming fear of persecution or torture when apprehended or encountered by DHS. The number of cases referred to DOJ for proceedings before an immigration judge has also risen exponentially, more than tripling between 2013 and 2018. These numbers are projected to continue to increase throughout the remainder of Fiscal Year 2019 and beyond.
Only a small minority of these individuals, however, are ultimately granted asylum. The large number of meritless asylum claims places an extraordinary strain on the nation’s immigration system, undermines many of the humanitarian purposes of asylum, has exacerbated the humanitarian crisis of human smuggling, and adversely impacts the United States’ ongoing diplomatic negotiations with foreign countries. This rule mitigates the strain on the country’s immigration system by more efficiently identifying aliens who are misusing the asylum system to enter and remain in the United States rather than legitimately seeking urgent protection from persecution or torture.
The IFR is immediately effective upon publication and can be found here.
Texas Man Pleads Guilty to Heroin TraffickingRead the Press Release
Gulfport, Miss. – Michael Anthony Herrera, 42, of Austin, Texas, pled guilty today before Senior U.S. District U.S. District Judge Louis Guirola, Jr., to possession with intent to distribute one kilogram or more of heroin, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On September 28, 2018, Herrera made a delivery of heroin and methamphetamine to an individual in a local restaurant parking lot in Gulfport. Moments after the delivery, agents with Homeland Security Investigations and deputies with the Harrison County Sheriff’s Office arrested Herrera. Agents and deputies located heroin and methamphetamine in Herrera’s truck and more heroin in a nearby hotel room that Herrera had been occupying. In total, agents found two kilograms of heroin and one kilogram of meth.
Herrera will be sentenced by Judge Guirola on October 16, 2019, and faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by Homeland Security Investigations and the Harrison County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk and Narcotics Section Chief Annette Williams.
Tallahassee Man Sentenced on Drug Conspiracy ChargesRead the Press Release
TALLAHASSEE, FLORIDA – Barney Crutchfield, of Tallahassee, was sentenced Thursday, July 11, to 120 months in federal prison after pleading guilty to drug conspiracy and firearms charges stemming from conspiracy to distribute narcotics throughout Northwest Florida. Crutchfield, 58, pleaded guilty in April 2018 to conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine, as well as possession of firearms and ammunition by a convicted felon. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Law enforcement began a wiretap investigation into the drug activities of Crutchfield and several co-defendants in 2017. Through the wiretap and other investigative means, federal agents and officers discovered that Crutchfield was distributing large quantities of cocaine and methamphetamine in Northwest Florida. Crutchfield and his co-defendants were obtaining cocaine from sources in Jacksonville and Miami, as well as methamphetamine from sources in Southern Georgia. Crutchfield was using his residence to store and sell the narcotics. A search of Crutchfield’s residence in Tallahassee resulted in the recovery of over 50 grams of methamphetamine, approximately 6 ounces of cocaine, approximately $29,134 in United States currency, and more than a thousand rounds of ammunition. At Crutchfield’s business, agents located approximately $254,460 in United States currency in a safe, along with an Intratec 9 mm pistol. Agents also searched a co-defendant’s residence, where they located another 30 firearms that Crutchfield had moved during the wiretap.
"This sentence sends a serious criminal to prison for years, and it would not have been possible without the outstanding cooperation and work by law enforcement and prosecutors at the federal, state, and local levels," U.S. Attorney Keefe said. "Cocaine and methamphetamine remain a scourge in many communities in Northwest Florida, and this case sends a message to criminals that we will find you and put you out of business."
Five co-defendants have previously been sentenced, and three others are still pending sentencing. One co-defendant has been charged by the State of Florida, and one other co-defendant was charged in a separate federal indictment and is pending trial.
This case resulted from a joint prosecution with the State Attorney’s Office for the Second Judicial Circuit, and an investigation by the Drug Enforcement Administration, the Florida Department of Law Enforcement, the Internal Revenue Service-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Florida Highway Patrol, the Leon County Sheriff’s Office, the Wakulla County Sheriff’s Office, the Madison County Sheriff’s Office, and the Tallahassee Police Department. Assistant United States Attorney Gary Milligan prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
South Bend, Indiana Man Sentenced to 5 Years in PrisonRead the Press Release
SOUTH BEND – Michael Clark, age 20, of South Bend, Indiana, was sentenced before United States District Court Judge Robert L. Miller, Jr. upon his plea of guilty to possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Mr. Clark was sentenced to 60 months in prison followed by 1 year of supervised release.
According to documents in this case, in January 2019, a search warrant was executed at a South Bend residence where Mr. Clark and others were located. During the search, 4 firearms were located, several being loaded. An amount of Cocaine base (crack) was found during the search. During an interview, Mr. Clark admitted that he owned a 9mm handgun that was found in the bedroom of the house he occupied. He also admitted that he purchased an AK-47 variant rifle, with others, for protection of the drugs, profits and people at the house where his drug dealing was taking place.
The case was investigated by the ATF with the assistance of the South Bend Police Department. The case was handled by Assistant United States Attorney Joel Gabrielse.
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Sioux Falls Man Sentenced for Wire Fraud and Mail FraudRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of 10 counts of Wire Fraud and 8 counts of Mail Fraud was sentenced on July 15, 2019, by U.S. District Judge Karen E. Schreier.
Tobias Ritesman, age 42, was sentenced to 108 months in federal prison, followed by 3 years of supervised release, restitution in the amount of $680,000, and a special assessment to the Federal Crime Victims Fund in the amount of $1,800.
Ritesman and co-defendant, Timothy Burns, were indicted by a federal grand jury on January 9, 2018. Ritesman filed a Petition to Plead Guilty on April 15, 2019. The conviction stemmed from incidents beginning on or about May 3, 2016, and August 1, 2017.
“This is an appropriate federal prison sentence for what was an ambitious and surprisingly audacious fraudulent scheme,” said U.S. Attorney Parsons. “A lot of South Dakotans lost a lot of money as the result of the web of lies spun by this defendant.”
Ritesman started a company called Ritesman Enterprises, Inc. (REI) in approximately 2012. Ritesman had three companies that operated under REI’s umbrella: Tinkers and Thinkers, Tiger Consulting, and Global Aquaponics, Inc. Global Aquaponics was active in pursuing investments for a proposed aquaponics facility to be built in Brookings, South Dakota. The purpose of this facility was to raise fish and produce. In approximately June of 2016, Ritesman then formed SD Food Security, LLC (SDFS), which was also involved in the aquaponics project.
Burns owned and operated multiple businesses in the Brookings area: Oakwood Equity, Concrete Contractors (CCI), and Multiply. Burns held these companies under a parent company called Syntech.
The fundraising plan for the aquaponics facility in Brookings was that Global Aquaponics would contribute $5.6 million to the project and own 51% of the facility. SDFS would contribute $5.4 million to the project (raised primarily by selling investment shares) and own 49% of the facility.
The Private Placement Memorandum (PPM) offering an investment opportunity in the aquaponics facility was dated June 20, 2016, and the offering expired on June 19, 2017. It stated that the proposed facility was modeled after an aquaponics facility in Maryland. The PPM said that Global Aquaponics board members included some individuals with aquaponics experience, including an individual involved with the Maryland facility. In addition to describing the project, it identified the specific 40-acre parcel of land near Brookings that would be purchased for the project. The PPM detailed how it would use the proceeds, including spending nearly $1.2 million for purchasing the property.
Between approximately May 3, 2016, and August 1, 2017, Ritesman and Burns received a total of $1,030,000 in investments in the project from 34 investors. Bank records showed that the money from investors was deposited into four different accounts. Ritesman and Burns were each stealing investor money and using it for their own purposes.
Co-defendant Timothy Burns’ sentencing is set for Monday, July 22, 2019.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Ritesman was immediately turned over to the custody of the U.S. Marshals Service.
Shallotte Gang Member Sentenced 25 Years for Drug DistributionRead 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 COVIA DZELL SMITH, 46, of Shallotte, North Carolina, to 300 months imprisonment, followed by 6 years of supervised release.
SMITH was named in a three-count Indictment filed on May 8, 2018, charging him with Distribution a Quantity of Marijuana and two counts of Distribution of a Quantity of Cocaine. On January 18, 2019, SMITH was convicted by a federal jury of all three counts.
In 2017, agents began investigating SMITH based on information that he was a drug supplier and a gang leader in Brunswick County, North Carolina.
A cooperating witness stated that SMITH held a high rank in the 9 Trey Billy set of the Bloods street gang. The cooperating witness stated that he knew SMITH had distributed heroin and cocaine base.
Another cooperating witness testified at trial that he had regularly purchased cocaine from SMITH in 2017. The witness stated that SMITH always carried a firearm with him, and he confirmed that SMITH was a member of the Bloods gang.
A third cooperating witness stated that in July 2015, he witnessed SMITH kill a man after an altercation at a club in South Carolina. The witness said he saw SMITH fire a handgun into the victim’s chest four times at close range, killing him. On another occasion, the witness said he saw SMITH cut a victim multiple times in the face.
On June 1, 2017, an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was introduced to SMITH, and expressed interest in purchasing a motorcycle from SMITH. SMITH told the undercover agent that the motorcycle was in need of repairs but could be fixed in exchange for marijuana. SMITH then offered the undercover agent “a blunt” and provided the undercover agent with a small amount of marijuana.
On June 7, 2017, the undercover agent and a cooperating witness (CW) traveled to SMITH’s residence and informed SMITH that the CW was interested in purchasing SMITH’s motorcycle. The undercover agent and SMITH discussed the undercover agent purchasing 3.5 grams of cocaine from SMITH. SMITH told the undercover agent he would contact his supplier.
Later that day, the undercover agent met SMITH at a car wash. The undercover agent gave SMITH $200, and SMITH gave the undercover agent 3.28 grams of cocaine.
On June 20, 2017, under the direction of law-enforcement, the CW purchased 7.12 grams of cocaine from SMITH in exchange for $500 at SMITH’s residence.
At trial, a cooperating witness testified that after SMITH was arrested on these charges and was being held at the Brunswick County Detention Center, SMITH admitted that he had sold cocaine to an undercover officer. The cooperating witness also testified that while SMITH was in the Brunswick County Detention Center, he told another Bloods member that the investigating agent would be “dog food,” which is a common Bloods term meaning that SMITH intended to harm or kill the agent.
Because of his extensive criminal record, including convictions for prior drug trafficking crimes, SMITH was determined to be a Career Offender, and so an enhanced advisory sentencing guideline range applied.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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 in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Brunswick County Sheriff’s Office. Assistant United States Attorney Scott A. Lemmon represented the government.
Schenectady Man Sentenced to 41 Months for Distributing Heroin Laced with FentanylRead the Press Release
ALBANY, NEW YORK - Hezekiah Morton, age 49, of Schenectady, New York, was sentenced today to 41 months in prison for distributing heroin and fentanyl in the city of Schenectady in May 2018.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Schenectady County Sheriff Dominic Dagostino.
As part of his guilty plea, Morton admitted that between May 7 and May 17, 2018, he distributed approximately 46 grams of heroin, which contained fentanyl.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, to begin after Morton’s release from prison.
This case was investigated by the DEA and the Schenectady County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Salters Man Sentenced to 6 Years in Federal Prison on Federal Gun and Drug ChargesRead the Press Release
Florence, South Carolina --- United States Attorney Sherri A. Lydon announced today that Travis Chatman, II, 25, of Salters, was sentenced to 6 years in federal prison after pleading guilty to possession of controlled substances with the intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.
Evidence presented to the court showed that on August 30, 2018, a task force officer with ATF (Bureau of Alcohol, Tobacco, Firearms and Explosives) and officers from the Myrtle Beach SWAT Team and Myrtle Beach Street Crimes Unit executed a search warrant at a hotel room in Myrtle Beach. Both Chatman and his girlfriend were present in the room during the execution of the search warrant. During the search, officers located two firearms. One was stolen and the other had an obliterated serial number. Officers also located heroin, cocaine, crack cocaine, meth, alprazolam tablets, razor blades, plastic baggies, two scales, $2,650.00 in cash, bond paperwork in Chatman’s name, and multiple cell phones.
United States District Judge Mary G. Lewis sentenced Chatman to 72 months and one day in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by ATF and the Myrtle Beach Police Department Street Crimes Unit and SWAT Team. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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Sacramento Man Sentenced to 30 Years in Prison for Producing Child Pornography Using Children in the PhilippinesRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Mark Corum, 62, of Sacramento, today to 30 years in prison for distribution and production of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Corum engaged in Skype conversations with various Skype users in the Philippines in which he instructed the other parties to perform sexual acts on children while he watched on live webcam. Corum sent the persons in the Philippines payments of between $25 and $35 via money transmittal services in exchange for them performing the sexual acts he requested on children and transmitting the images to him via webcam. Transcripts of the Skype chats filed with the court reflect that, at Corum’s direction, children between the ages of infancy and 10 years old were sexually abused. The Skype chats also contain statements by Corum alluding to prior trips to the Philippines and sex acts with children there. He indicated that if he visited the Philippines again, he wanted to have sex with one of the children he had directed to be abused, a six-year-old girl. In addition, on June 23, 2016, Corum used the internet to transmit images of prepubescent children engaged in sexually explicit conduct to another person.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Katherine T. Lydon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Registered Sex Offender Pleads Guilty to Entice of A Minor OnlineRead 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 Carlos Francisco Lopez, 30, of Los Angeles, CA, pleaded guilty before U.S. District Judge Richard J. Arcara to enticement of a minor to engage in sexual activity and attempting to transport a minor across state lines to engage in sexual activity. The charges carry a mandatory minimum penalty of 10 years and a maximum of life in prison.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on January 16, 2018, the City of Tonawanda Police Department received a request to conduct a welfare check on a 15 year old girl (victim) who was reported to have run away from home and gotten on a bus. Police officers located the bus in Tonawanda, stopped it, and located the victim who was a passenger. The victim told officers she was running away from home and intended to travel to California to visit family, claiming that her uncle purchased the bus ticket for her.
Subsequent interviews revealed that the victim met an unknown individual, with the username “playfulchaos,” on the internet application Kik in a group for runaway youth. In addition to discussing the victim running away, the two also discussed having sex. According to the victim, the two continued to communicate on the internet application Text Free, making plans for the victim to travel to California.
On January 18, 2018, an undercover law enforcement (UC) officer posed as the victim to continue to communicate with Lopez. The UC wrote, "hey u there... this bus ride sucks." The UC stated she was due into California around 10:00 pm on January 19, 2018 and asked what to do upon arrival. The defendant replied, "call me or text me. Wait at the station, and ill send an uber." Lopez was arrested after the UC sent a message that the bus had arrived and the defendant ordered an Uber.
In 2011 and 2012, Lopez was convicted of sexual offenses against minor children in the State of California. He is a registered sex offender. The defendant was released from prison in 2016 and is an active parolee.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Cheektowaga Police Department, under the direction of Chief David Zack; and the City of Tonawanda Police Department, under the direction of Chief William Strassburg.
Sentencing is scheduled for November 7, 2019, at 1:00 p.m. before Judge Arcara.
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Pharmacists charged in fraud, diversion investigationsRead the Press Release
SAVANNAH, GA: Two Georgia pharmacists have been charged after separate federal investigations involving fraud and diversion of drugs to non-patients.
Ray Ashley Dixon, 41, of Baxley, Ga., is charged with Conspiracy with Objects of Healthcare Fraud and Unlawful Distribution of Controlled Substances, and Janice Colter, 62, of Darien, Ga., is charged with False Statements Related to Healthcare, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Both defendants are charged via criminal informations. If convicted, each face up to five years in federal prison, and there is no parole in the federal system.
According to court documents, Dixon owned and operated Fulghum Discount Drugs in Baxley, Ga. An investigation by the Drug Enforcement Agency (DEA) and Department of Health and Human Services (HHS) uncovered that, beginning as early as January 2015 and continuing until at least October 2018, Dixon created fake prescriptions purportedly prescribing drugs to Medicare and Medicaid beneficiaries and billed those programs for the drugs. In addition, Dixon distributed controlled substances to individuals without a prescription from a physician.
Also charged is Colter, who was pharmacist-in-charge of a pharmacy in Darien, Ga. From 2015 through 2017, Colter filled a large number of prescriptions for controlled substances from high-volume prescribers. In response to a review of her dispensing history, which included a focus on select high-prescribing physicians, Colter drafted documents that contained false and fraudulent statements, which the Drug Enforcement Administration would review as part of any regulatory compliance audit.
“We will continue to work with our law enforcement partners to identify and hold accountable medical professionals who disregard their duties to the people of this district and to taxpayer-funded health programs,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “These coordinated multi-agency investigations show the results we can deliver in response to this continued opioid epidemic.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Healthcare professionals, such pharmacists who commit fraudulent crimes, sometimes prey on patients who are addicted to prescription opioids. Some of these licensed practitioners dispense addictive substances under the guise of a ‘professional practice,’ when in actuality, they act like a common drug dealer. This successful investigation was a direct result of the collaboration between all law enforcement agencies involved and the U.S. Attorney’s Office.”
“Together with our federal, state and local partners, we are dedicated to fighting the war against the opioid epidemic,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will hold all unscrupulous and self-serving health care providers accountable.”
“The citizens of our community expect our law enforcement agencies to take an active role in helping to fight the drug epidemic, particularly the abuse of prescription opioids,” said Mark Melton, Sheriff of Appling County. “Our office will work with all partner agencies in defeating the illegal narcotics trade.”
Criminal informations contain only charges; defendants are presumed innocent unless and until proven guilty.
The cases were investigated under the Health Care Fraud and Opioid Abuse Task Force by the DEA’s Tactical Diversion Squad, DEA Diversion, the Department of Health and Human Services Office of the Inspector General, and the Appling County Sherriff’s Office. The cases are being prosecuted by Assistant United States Attorneys J. Thomas Clarkson and Jonathan A. Porter.
Palm Harbor Woman Sentenced to Five Years in Federal Prison for Receiving Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Vivienne Yvette Sellers (78, Palm Harbor) to five years in federal prison for receiving child pornography. The court also ordered Sellers to forfeit the electronic devices that she used in the commission of the offense.
Sellers had pleaded guilty on April 8, 2019.
According to court documents, Sellers used an internet-based mobile application to receive child pornography and discuss the sexual abuse of children. Between May 30 and June 17, 2017, Sellers used the app to communicate with another user whom she believed to be a nine-year-old boy, and she received images and videos of minors engaged in sexually explicit conduct.
Sellers admitted to law enforcement agents that she had used her cellphone to access the app and communicate with a child about sex. Sellers stated that she sent sexually explicit pictures of herself to the child and received sexually explicit photos from the child. Sellers further admitted that she wanted the child to come over to her house with his friend because it was her fantasy to have sex with two boys at the same time.
This case was investigated by the Federal Bureau of Investigation. It was being prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owner of Lawn Care Company Sentenced to a Year in Prison for False Statement About Payments from Mexican WorkersRead the Press Release
OKLAHOMA CITY – FELIPE GUTIERREZ, 48, was sentenced today to twelve months in prison for making a false statement to the United States Department of Labor ("DOL") about his employment of Mexican workers, announced United States Attorney Timothy J. Downing.
According to an Information filed February 12, 2019, Mr. Gutierrez, who owns and operates Felipe’s Lawn Care—a local lawn care company in Oklahoma City—falsely represented to the DOL that he had not sought or received any payment from his employees in connection with obtaining certification for their employment from the DOL. Mr. Gutierrez pleaded guilty at a March 18 hearing, at which he admitted he submitted an H-2B Application for Temporary Employment Certification to the DOL in order to obtain permission to hire workers from Mexico. The application required Mr. Gutierrez to certify that he had not sought or received any payment of any kind from these prospective workers. He stated on the form that he had not, when in fact he had demanded and received payment from them.
At a sentencing hearing this morning, U.S. District Judge Robin J. Cauthron heard testimony describing some of the methods that Mr. Gutierrez used to ensure he received these illegal payments, including his participation in an assault upon one employee that caused serious bodily injury. Judge Cauthron sentenced Mr. Gutierrez to twelve months in prison, to be followed by three years of supervised release. The court also ordered him to pay $74,800 in restitution to the Mexican workers from whom he procured these illegal fees.
This case was the result of an investigation by the FBI Oklahoma City Division and was prosecuted by Assistant U.S. Attorney Julia E. Barry.
Reference is made to court records for further information.
Owensboro Man Pleads Guilty to Health Care Fraud ConspiracyRead the Press Release
LEXINGTON, Ky. – Today, an Owensboro man admitted in federal court that he participated in a conspiracy to defraud health insurance programs of more than $1.3 million.
Dinesh Goyal, 60, pleaded guilty to one count of conspiracy to commit an offense against the United States, before United States District Judge Joseph Hood. Goyal owned a toxicology laboratory in Owensboro, Kentucky called Tristate Medical Laboratory (“Tristate”). His co-conspirators, Mason Routt and Sam Ford, owned or were affiliated with a Nicholasville, Kentucky toxicology lab known as C.A.L. Laboratory Services (“CAL”). Among other things, CAL provided urine drug testing services for physician clients. Beginning in late 2015, health care organizations who administer the Kentucky Medicaid program placed payment restrictions on CAL’s claims seeking reimbursement for urine drug tests, due to concerns about the legitimacy of those claims. In October 2016, Goyal, Routt, and Ford agreed that urine drug tests referred to and performed by CAL would be billed to the health insurance programs using Tristate’s billing information, falsely representing that the tests were performed by Tristate. In this way, CAL evaded the payment restrictions placed upon it by the insurers, and received reimbursements to which it was not entitled. In exchange for the use of his lab’s billing information, Goyal agreed to receive 40% of these fraudulent reimbursements. In the plea agreement filed today, Goyal admitted that these fraudulent claims caused Humana Caresource, Aetna Coventry Cares, and Anthem Blue Cross & Blue Shield Medicaid to suffer a combined loss of $1,378,449.
Goyal was charged by way of information in the Eastern District of Kentucky, waiving his right to indictment by a federal grand jury. Sam Ford, one of his co-conspirators, pled guilty to the same offense in March 2019 and is scheduled to be sentenced on August 12, 2019. Mason Routt, the owner of CAL and the other co-conspirator, passed away unexpectedly in August 2017.
In addition to his guilty plea, Goyal entered into a separate settlement agreement resolving his civil liability under the federal False Claims Act for the same misconduct. Pursuant to the False Claims Act settlement agreement, Goyal is obligated to sell personal and commercial property and remit 75% of the net sale proceeds to the United States, in addition to certain cash payment obligations. Goyal also agreed to be excluded from the Medicare and Kentucky Medicaid programs for a period of 10 years, meaning that he cannot own or work for any company that submits claims to those federal health insurance program.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; and Derrick L. Jackson, Special Agent in Charge, Department of Health and Human Services, Office of Inspector General (HHS-OIG), Atlanta Field Office, jointly announced the guilty plea.
The investigation was conducted by the FBI and HHS-OIG. The U.S. Attorney’s Office for the Eastern District of Kentucky was represented by Assistant U.S. Attorney Paul McCaffrey in the criminal case, and by Assistant U.S. Attorney Christine Corndorf in the parallel civil case.
Goyal is scheduled to be sentenced on October 15, 2019, in federal court in Lexington. He faces up to 5 years in prison and a maximum fine of $250,000, or twice the amount of loss caused by his crime, whichever is greater. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
New York Man Pleads Guilty to Heroin and Crack Trafficking and Conspiring to Violate Firearms LawsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Deondray Warren, a/k/a “Main,” a/k/a “Maine,” 33, of Rochester, New York, pleaded guilty today in U.S. District Court to conspiring to distribute heroin and cocaine base, commonly known as “crack,” distributing heroin and crack, and conspiring to violate federal firearms laws.
According to court records, between November 2016 and September 2017, Warren conspired with others from Rochester and Central Maine to distribute heroin and crack. The drugs were acquired in Rochester and Warren and others distributed the drugs in Central Maine. On May 1, 2017, Warren sold crack and heroin to an individual working with law enforcement. In addition, between February and May, 2017, the defendant conspired with co-defendant Rashaad McKinney and others to conduct straw purchases of 12 firearms from two Central Maine firearms dealers.
The defendant faces up to 20 years in prison, between three years and life on supervised release, and a $1,000,000 fine on the two drug charges and up to five years imprisonment, three years of supervised release, and a $250,000 fine on the firearms charge.
On February 26, 2109, McKinney pled guilty to the two conspiracy charges and awaits sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration; and the Maine Drug Enforcement Agency and is being prosecuted as part of the Department of Justice’s program to combat the opioid epidemic.
Navajo Man from Sanostee, N.m., Pleads Guilty to Federalinvoluntary Manslaughter and Child Abuse ChargesRead the Press Release
ALBUQUERQUE – Tavis Washburn, 27, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., pleaded guilty in federal court in Albuquerque on July 12, 2019, to charges of involuntary manslaughter and child abuse in Indian Country.
In his plea agreement, Washburn admitted committing these crimes in San Juan County on Feb. 15, 2018. Washburn was driving drunk and speeding on a highway when he crashed his car into a truck turning onto the road. The impact of the crash killed the passenger in the front passenger seat of Washburn’s vehicle. Washburn’s reckless conduct also endangered Washburn’s 2-year-old son, who was a passenger in the vehicle. The crash occurred within the Navajo Indian Reservation.
Washburn currently is in out of custody pending sentencing. Under the terms of the plea agreement, Washburn faces 71 to 120 months of imprisonment when he is sentenced. A sentencing date has not been scheduled.
The case was investigated by Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Allison C. Jaros is prosecuting the case.