Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
9 July 2019
Rio Grande, Texas Man Sentenced to Life Imprisonment for Conspiracy to Distribute MethamphetamineRead the Press Release
Jackson, TN – Rolando Lopez, 58, has been sentenced to life imprisonment on federal charges of conspiracy to distribute 50 grams or more of actual methamphetamine. U.S. Attorney D. Michael Dunavant announced the sentence today.
This is the latest sentencing in a case involving multiple defendants including Saul Vega Flores, Virginia Torres, Ronald Lynn Parham, Daniel Ranger, Kennett Garrett, Tammy Ranger, Marcus Jones, and Xavier Demetrius James on charges of conspiracy to distribute methamphetamine.
According to information presented in court, the Drug Enforcement Administration (DEA) began an investigation into Rolando Lopez and his drug trafficking organization in March of 2017. Agents discovered that Lopez and other co-conspirators were trafficking in methamphetamine, heroin, marijuana and other illegal substances from Mexico to Tennessee. Investigators used "wiretaps" along with other surveillance, confidential sources, traffic stops, and search warrants to investigate this organization.
In April 2017, agents received information from a confidential informant regarding a home in Davidson County, Tennessee, where Lopez and his brother were conducting drug related activity. A search warrant was executed at the residence where over $500,000 in cash, a money counter, and a vacuum sealer were recovered. In November 2017, investigators through wiretap interceptions learned that Lopez arranged for a shipment of 20 kilograms of methamphetamine ice to be picked up by a co-conspirator in Atlanta, Georgia to be driven back to Tennessee. Investigators eventually seized the 20 kilograms of methamphetamine from this co-conspirator. In December 2017, investigators through wiretap interceptions and information received from confidential informants learned that Lopez was arranging a shipment of methamphetamine from Mexico to Tennessee.
The shipment was being transported by other co-conspirators in a 2004 Lincoln Navigator to the residence of a co-conspirator in the Western District of Tennessee, where the shipment was to be converted to powder form for distribution. Lopez directed other co-conspirators transporting the liquid methamphetamine to Tennessee to meet at the Days Inn, in West Memphis, Arkansas. Once the defendants began to transport the liquid methamphetamine into the Western District of Tennessee, investigators arranged for the Tennessee Highway Patrol to stop the Lincoln Navigator on Highway 51, in Obion County, Tennessee. During the search of the vehicle, agents discovered a large quantity of methamphetamine located in a hidden compartment. A DEA forensic laboratory examination revealed that the defendant and other co-conspirators were transporting 44.85 kilograms of 98% pure ice.
Lopez used other co-conspirators’ property located in the Western District of Tennessee to convert the liquid methamphetamine into a powdery substance. Lopez was held responsible for distributing 2,660,000 kilograms (converted drug weight) of methamphetamine within Tennessee. Lopez was obtaining the methamphetamine from a source in Mexico, where it was smuggled into the Western District. The United States argued that this was the largest drug trafficking organization known to be handled within the Western District.
U.S. Attorney D. Michael Dunavant said: "Drug trafficking offenses are at the root of some of the gravest problems facing our country. The ‘fruit’ of the drug plague is everywhere; it fills our jails, our courts, our streets, and our nurseries. Accordingly, given that drug dealers themselves sentence many individuals to a lifetime of addiction and dependency, a life sentence for repeatedly dealing large quantities of drugs is a just and proper punishment in this case."
"The Drug Enforcement Administration and our law enforcement partners remain committed to targeting interstate methamphetamine traffickers contributing to the nation’s drug crisis," said Brett R. Pritts, Assistant Special Agent in Charge of DEA’s Nashville District Office. "I commend our law enforcement partners and the prosecutors for their extraordinary efforts in this case."
On July 9, 2019, U.S. District Court Chief Judge Thomas Anderson sentenced Lopez to life in federal prison followed by 5 years supervised release.
This case was investigated by the Nashville, Jackson, Atlanta DEA offices, Tennessee Bureau of Investigation, 23rd Judicial Drug Task Force, Metro Nashville Police Department, Perry County Sheriff’s Office, Tennessee Highway Patrol, Lawrenceburg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Jackson Police Department, Carroll County Sheriff’s Office, Madison County Sheriff’s Office, and Obion County Sheriff’s Office.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
###
Richland Center Man Sentenced to 90 Months for Methamphetamine CrimeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Joshua Clarke, 31, Richland Center, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 90 months in federal prison, followed by a three-year term of supervised release, for possessing methamphetamine with intent to distribute. Clarke pleaded guilty to this charge on April 26, 2019.
On November 11, 2018, an officer from the Richland Center Police Department stopped a car for a traffic violation. While talking with the passenger, who officers subsequently identified as Clarke, they observed behavior indicative of someone high on methamphetamine. Officers arrested Clarke on an outstanding warrant. During a subsequent search, officers found 35 grams of methamphetamine on Clarke. Testing by the Drug Enforcement Administration showed the methamphetamine was 100% pure.
During sentencing, Judge Conley highlighted Clarke’s extensive criminal history, as well as the methamphetamine’s purity level. Judge Conley noted that Clarke saw the tremendous effect of the drug as a methamphetamine user, but still decided to sell it to members of the community.
The charge against Clarke was the result of an investigation conducted by the Richland Center Police Department, Richland County Sheriff’s Department, Richland County District Attorney’s Office, Wisconsin Department of Justice Division of Criminal Investigation, and Drug Enforcement Administration. The prosecution of the case has been handled by Special Assistant U.S. Attorney Chadwick M. Elgersma.
Richardson, Texas Man Sentenced to 24 Months for Aggravated Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Raudy Acosta Fernandez, age 32, of Richardson, Texas, was sentenced to 2 years’ imprisonment and 1 year supervised release for Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The charge arose from an investigation by the Chickasaw Nation Lighthorse Police Department and the United States Secret Service.
The Superseding Indictment alleges that on or about March 21, 2018, in the Eastern District of Oklahoma, the defendant knowingly possessed, and used, without lawful authority, a means of identification of another person during and in relation to Conspiracy to Commit Wire Fraud. The conspiracy involved the use of credit card “skimming devices” placed on gas pumps by members of the conspiracy to steal credit card information, create credit cards with the information and then use those cards to receive cash at ATM’s.
“The use of skimming devices to steal credit card information is not a new trend, but the devices used today are more difficult to detect. There are precautions we should all take to protect our credit and bank card information from thieves using skimming devices. For example, before using a gas pump, make sure the panel is closed and doesn’t show signs of tampering. Many pumps now have a security seal. If the seal is broken, don’t use that pump,” United States Attorney Brian J. Kuester said. “Awareness that thieves are using this technology and exercising caution before using your credit card at the pump or at ATM’s are important to help us avoid being victims of this type of criminal scheme.”
“This investigation is a prime example of the Secret Service’s investigative mission; to protect the U.S. financial infrastructure by pursuing counterfeit and financial crimes investigations,” said Glenn Dennis, Special Agent in Charge of the Secret Service Oklahoma Field Office. “The Secret Service in alliance with State and Local law enforcement is dedicated to effectively identifying those victimizing our communities and bringing them to justice.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.Rhode Island Man Charged in Connection with Business Email Compromise Fraud Targeting Massachusetts LawyerRead the Press Release
BOSTON - A Rhode Island man was charged today in federal court in Boston in connection with a conspiracy to launder funds derived from Business Email Compromise (BEC) fraud schemes, including one that targeted a Dorchester real estate attorney.
Sayon Balogun a/k/a “Oshine,” 32, a dual citizen of the United States and Nigeria, was indicted on one count of money laundering conspiracy. Balogun was initially charged by criminal complaint on May 31, 2019, and arrested in Florida on June 10, 2019. He has been detained pending trial.
According to court documents, in January 2018, Balogun’s co-conspirators gained access to email accounts belonging to a Massachusetts attorney engaged in real estate closings. The co-conspirators then mimicked (spoofed) the real estate attorney’s email account and sent emails to a Massachusetts resident who was the purchaser in a legitimate real estate transaction. The spoofed emails directed the Massachusetts real-estate purchaser to wire transfer $531,981 (which the purchaser believed was for a legitimate real estate transaction) to a bank account held by a California woman. The California women then sent $60,000 to an account in the name of “David Tecum,” a fraudulent identity used by Oghenetchouwe Adegor Ederaine Jr., one of Balogun’s co-conspirators, who received fraud proceeds at Balogun’s direction. Ederaine has pleaded guilty to aggravated identity theft and money laundering conspiracy charges.
Balogun faces a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the funds laundered in the conspiracy. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. The Massachusetts U.S. Attorney’s Office would also like to acknowledge the assistance of the United States Attorney’s Office and the FBI for the Southern District of Florida. Assistant U.S. Attorneys David D’Addio and Amy Harman Burkart of Lelling’s Cybercrime Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Woman Charged with Methamphetamine OffensesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine, Aiding and Abetting Possession with Intent to Distribute Methamphetamine, and Possession with Intent to Distribute Methamphetamine.
Terri Paulhamus, age 38, was indicted on August 14, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on June 6, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than on or about October 26, 2016, and continuing to August 14, 2018, Paulhamus, knowingly and intentionally, conspired and agreed with persons to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine. The Indictment further alleges that on or about October 26, 2016, and October 14, 2017, Paulhamus aided and abetted possession with intent to distribute methamphetamine and possessed with intent to distribute methamphetamine, respectively.
The charges are merely accusations and Paulhamus is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Paulhamus was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Prison for Man who Illegally Entered U.S. After 4 DeportationsRead the Press Release
DAYTON – Edgar Ezequiel Ramos-Serrano, 33, was sentenced in U.S. District Court to 12 months in prison, followed by three years of supervised release, for being found in the United States subsequent to a felony conviction. Ramos-Serrano has been deported on four prior occasions, has been convicted of this same offense twice before, and will likely be deported once again following his prison sentence.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to court documents, ICE agents found Ramos-Serrano at the Montgomery County Jail on February 19 following his arrest on local traffic-related charges including driving without a license.
Ramos-Serrano, a citizen of Honduras, had been removed from the United States to Honduras in June 2005, July 2009, July 2010, and November 2013. Following the July 2009 removal, Ramos-Serrano returned illegally, was found in the Western District of Pennsylvania, was convicted there of Reentry of a Removed Alien, and was sentenced to “time served” (approximately 2 months). Ramos-Serrano returned illegally once again, and in November 2013, he was found in the Southern District of Ohio, convicted of the same offense, sentenced to time served (approximately five months), and deported. He returned illegally and was found and arrested in the Southern District of Ohio in February 2019.
Ramos-Serrano pleaded guilty in April 2019 to one count of illegal reentry. Following service of the one-year prison sentence, Ramos-Serrano will likely be deported to Honduras. Returning illegally during the three-year period of supervised release imposed will constitute a violation of the terms and conditions of his release and may lead to additional sanctions beyond another criminal prosecution.
“He was sentenced to time served for each of his two prior convictions, then deported, and each time he returned illegally” Glassman said. “This time he’s going to prison for more than just time served, a fair and just sentence which promotes respect for the law.”
U.S. Attorney Glassman commended the investigation by ICE, as well as First Assistant United States Attorney Vipal Patel, who is representing the United States in this case.
###
Platinum Partners’ Founder and CIO Mark Nordlicht and Co-CIO David Levy Convicted of Defrauding Bondholders in a Multi-Million Dollar SchemeRead the Press Release
Mark Nordlicht, the founder and Chief Investment Officer of Platinum Partners L.P. (Platinum), and David Levy, the co-Chief Investment Officer of Platinum, were convicted today by a federal jury in the Eastern District of New York of securities fraud, securities fraud conspiracy and wire fraud conspiracy for their roles in defrauding the bondholders of Black Elk Energy (Black Elk), an oil company that was one of Platinum’s largest assets, by rigging a consent solicitation vote. The verdict followed a two-month trial before United States District Judge Brian M. Cogan.
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 Philip Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the verdict.
“With today’s verdict, Nordlicht and Levy have been held accountable for deceiving bondholders to gain control of the remaining assets of a failing oil company to line their own pockets and those of close family and friends,” stated United States Attorney Donoghue. “This Office and our law enforcement partners remain unwavering in our commitment to unraveling complex fraud schemes and bringing perpetrators, like the defendants, to justice.” Mr. Donoghue thanked the Securities and Exchange Commission, New York Regional Office (SEC), for their significant cooperation and assistance during the investigation.
“The victims of this scheme paid the price for the crimes committed by Nordlicht and Levy,” stated FBI Assistant Director-in-Charge Sweeney. “Today, the tables have turned. The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist, and that investors can continue to place their faith in our financial markets.”
“In this case the defendants devised a scheme to defraud bondholders and cheat them out of millions of dollars. Today’s verdict should be a warning for all the fraudsters out there: No matter how slick you think you are, liars, frauds and cheats never win,” stated USPIS Inspector-in-Charge Bartlett.
Platinum was a New York City-based hedge fund founded in 2003. The evidence at trial established that between approximately November 2011 and December 2016, Nordlicht and Levy, together with their co-conspirators, orchestrated a fraudulent scheme to defraud third-party holders of Black Elk’s publicly traded bonds (the bondholders) by diverting to Platinum the proceeds from the sale of the vast majority of Black Elk’s most lucrative oil fields even though the bondholders had priority over Platinum’s equity interests. To execute this scheme, in early 2014, Nordlicht, Levy and others caused Platinum to secretly purchase Black Elk bonds on the open market and gain control of $98 million of the $150 million of outstanding bonds. The bonds were then transferred through a number of related entities to conceal their ownership and control by Platinum. Nordlicht, Levy and their co-conspirators then rigged a consent solicitation vote to amend the Black Elk indenture so that the proceeds from the sale of Black Elk’s best assets would be paid to the preferred equity – which was held by Platinum and Platinum insiders – ahead of the other bondholders. Notably, non-Platinum related bondholders overwhelmingly voted against changing the indenture; one bondholder explained that to do so would constitute “giv[ing] up my rights and not get[ting] anything back for it,” which he characterized as “kind of stupid.”
After the rigged vote was complete, Nordlicht, Levy and their co-conspirators took millions of dollars from the asset sale for themselves, family members and friends, including approximately $7 million to Nordlicht’s father, approximately $250,000 to Levy and approximately $2 million to the brother of a co-conspirator.
Nordlicht, Levy and Joseph SanFilippo were acquitted of counts related to a separately charged scheme involving investors in the Platinum funds.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alicyn Cooley, David Pitluck, Lauren Elbert and Patrick Hein are in charge of the prosecution.
The Defendants:
MARK NORDLICHT
Age: 51
New Rochelle, New YorkDAVID LEVY
Age: 34
New York, New YorkOmaha Man Sentenced for Jewelry Store RobberyRead the Press Release
United States Attorney Joe Kelly announced that Chief U.S. District Judge John M. Gerrard sentenced Anwar A. Hunt, 37, today to 13 ½ years in federal prison to be followed by 5 years of supervised release. Hunt previously entered pleas of guilty to interference with commerce by robbery and brandishing a firearm during that robbery.
On March 23, 2018, at approximately 1:14 p.m., two armed men with gloves and masks entered the Sartor Hamann Jewelry Store, located at 2900 Pine Lake Road, Lincoln, Nebraska, and demanded people in the store to not move and to be quiet. One of the men smashed a watch case and the robbers left the store with 25 Rolex watches. One of the watches was equipped with a GPS tracker. Officers were able to locate Hunt, Joshua Dortch, the watches and other evidence tying them to the robbery within a short time.
Dortch is pending trial.
The Lincoln Police Department and the FBI Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives, are responsible for the investigation of the robbery.
Ohio Man Sentenced to Prison for 30 Months for Hate CrimeRead the Press Release
WASHINGTON – Izmir Koch, 34, of Huber Heights, Ohio, was sentenced today to 30 months in prison for beating a man he believed to be Jewish outside of a Cincinnati restaurant.
Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division; Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio; and Todd A. Wickerham, Special Agent in Charge, FBI Cincinnati Division, announced the sentence.
Koch was convicted after a trial on Dec. 17, 2018, of one count of violating the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act and one count of making a false statement to the FBI.
On Feb. 4, 2017, the Defendant and his companions were heard yelling “I want to kill all of the Jews” and “I want to stab the Jews” outside a Cincinnati restaurant. The victim represented to Koch that he was Jewish, after which Koch began punching and kicking him. A number of other people joined in the assault. The victim was left with a broken facial bone and bruised ribs. The victim was not in fact Jewish, but was with friends and family members who were.
After the incident, Koch, accompanied by his attorney, spoke voluntarily with the FBI. Koch falsely told the FBI that he was not involved in the assault and that he made no derogatory comments about Jews.
“Individuals should be able to live without fear of attack or intimidation based on their religious beliefs,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Prosecuting hate crimes is a top priority for the Department of Justice and as this sentence today demonstrates, we will not back down from obtaining justice for victims of violence based on hate.”
“Hate-fueled violent crimes ripple through communities, making entire groups feel unsafe and unwelcome, spawning fear and anger,” U.S. Attorney Glassman said. “That is why investigating and prosecuting hate crimes is such a high priority. Every community – every person – is entitled to the equal protection of the laws.”
“The FBI aggressively investigates hate crime incidents and works closely with impacted communities,” stated FBI Cincinnati Special Agent in Charge Todd A. Wickerham. “Each day we strive to protect civil rights and hold accountable those who violate the rights of others.”
This case was investigated by the Cincinnati Division of the FBI. It was prosecuted by Assistant United States Attorney Megan Gaffney and Special Assistant U.S. Attorney Kelly Rossi of the Southern District of Ohio, and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
For more information about Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
# # #
Ohio Man Sentenced to Prison for 30 Months for Hate CrimeRead the Press Release
Izmir Koch, 34, of Huber Heights, Ohio, was sentenced today to 30 months in prison for beating a man he believed to be Jewish outside of a Cincinnati restaurant.
Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division; Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio; and Todd A. Wickerham, Special Agent in Charge, FBI Cincinnati Division, announced the sentence.
Koch was convicted after a trial on Dec. 17, 2018, of one count of violating the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act and one count of making a false statement to the FBI.
On Feb. 4, 2017, the Defendant and his companions were heard yelling “I want to kill all of the Jews” and “I want to stab the Jews” outside a Cincinnati restaurant. The victim represented to Koch that he was Jewish, after which Koch began punching and kicking him. A number of other people joined in the assault. The victim was left with a broken facial bone and bruised ribs. The victim was not in fact Jewish, but was with friends and family members who were.
After the incident, Koch, accompanied by his attorney, spoke voluntarily with the FBI. Koch falsely told the FBI that he was not involved in the assault and that he made no derogatory comments about Jews.
“Individuals should be able to live without fear of attack or intimidation based on their religious beliefs,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Prosecuting hate crimes is a top priority for the Department of Justice and as this sentence today demonstrates, we will not back down from obtaining justice for victims of violence based on hate.”
“Hate-fueled violent crimes ripple through communities, making entire groups feel unsafe and unwelcome, spawning fear and anger,” U.S. Attorney Glassman said. “That is why investigating and prosecuting hate crimes is such a high priority. Every community -- every person -- is entitled to the equal protection of the laws.”
"The FBI aggressively investigates hate crime incidents and works closely with impacted communities," stated FBI Cincinnati Special Agent in Charge Todd A. Wickerham. "Each day we strive to protect civil rights and hold accountable those who violate the rights of others."
This case was investigated by the Cincinnati Division of the FBI. It was prosecuted by Assistant United States Attorney Megan Gaffney of the Southern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
For more information about Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
North Branford Man Sentenced to 14 Years for Enticing Girls to Engage in Sexual Activity Through Online AppsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DANIEL FLEISCHAUER, 33, of North Branford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 168 months of imprisonment, followed by 10 years of supervised release, for enticing minors to engage in sexual activity online.
According to court documents and statements made in court, between approximately 2013 and 2017, Fleischauer communicated with minor females on internet applications, including Kik and Cypher. He met and befriended the minors online, developed friendships with them over time, and then exploited those friendships. At times, his communications with the minor females turned to sexual topics. During these communications, Fleischauer requested, and received, images and videos of minor females engaged in sexually explicit conduct. Fleischauer also sent sexually explicit images of himself to minor females. Fleischauer believed that one of the minors with whom he engaged in this conduct was under the age of 12.
Fleischauer has been detained since his arrest on December 13, 2017. On November 15, 2018, he pleaded guilty to one count of enticing a minor to engage in sexual activity.
This matter was investigated by the Connecticut Human Trafficking Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), with the assistance of the Naugatuck Police Department, North Branford Police Department and Kik Interactive. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
New York Anesthesiologist Indicted for Alleged Role in Telemedicine Health Care Fraud ConspiracyRead the Press Release
A New York anesthesiologist was arraigned today on an indictment charging her for her role in an alleged telemedicine conspiracy to submit fraudulent claims to Medicare, Medicare Part D plans and private insurance plans.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations made the announcement.
Anna Steiner, also known as “Hanna Wasielewska,” 63, of Valatie, New York, was charged in an indictment filed in the Eastern District of New York with one count of conspiracy to commit health care fraud. Steiner was previously arrested on a complaint in April 2019.
According to the indictment, starting in approximately January 2015, Steiner participated in a health care fraud scheme in which she and others ordered and prescribed durable medical equipment (DME) and prescription drugs in connection with purported telemedicine services. As alleged in the indictment, however, Steiner and other providers signed prescriptions and order forms for DME and drugs that were not medically necessary and that were induced by kickbacks, and provided for beneficiaries whom Steiner and others had not examined and evaluated. Steiner, together with others, allegedly submitted or caused the submission of more than $7 million in claims to Medicare for DME on behalf of more than 3,000 beneficiaries; Medicare paid more than $3 million on those claims.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and HHS-OIG. Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Nebraska Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Nebraska woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Marcitta Connors, age 24, was indicted on September 11, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on May 8, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that beginning no later than January 1, 2015, continuing to September 11, 2018, Connors knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine.
The charge is merely an accusation and Connors is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Connors was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Monongalia County woman indicted for firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Teresa Miller, of Morgantown, West Virginia, was indicted by a federal grand jury today for a firearms violation, United States Attorney Bill Powell announced.
Miller, age 45, is charged with one count of “Unlawful Possession of a Firearm.” Miller, having previously been convicted of a drug crime, is prohibited from having a firearm. Miller is accused of having a .380 caliber pistol and a .45 caliber pistol in July 2018 in Monongalia County.
Miller faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Morgantown Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mission Woman Sentenced for Misprision of a FelonRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Misprision of a Felon was sentenced on May 13, 2019, by U.S. District Judge Roberto A. Lange.
Sharlie Colombe, a/k/a Sharli Colombe, age 35, was sentenced to 3 years’ probation, ordered to pay restitution in the amount of $10,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Colombe was indicted by a federal grand jury on February 14, 2018, which was followed by a Superseding Information on February 19, 2019. She pled guilty to the Superseding Information on February 19, 2019.
The conviction stemmed from an incident that occurred between February 4, 2011, through June 6, 2017, where Co-Defendant Mark O’Leary passed at least 544 checks drawn on a bank account belonging to the victim. The checks were used for personal items for O’Leary and the purchases were not authorized by the owner of the bank account. Colombe knew of O’Leary’s activities, helping him to cash some of the checks and did not report it to law enforcement.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Mission Man Acquitted on Ammunition ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man was acquitted of Possession of Ammunition by a Felon as a result of a federal jury trial in Pierre, South Dakota, on June 5 and June 6, 2019.
Aaron Santistevan, age 43, was indicted by a federal grand jury on February 13, 2019, and a Superseding Indictment was filed on May 14, 2019.
The charge relates to the allegation that on December 28, 2018, Santistevan, having been previously convicted of a crime punishable by imprisonment for more than one year, possessed 40 rounds of copper-jacketed, hollow point .50 Action Express caliber handgun ammunition.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services and the U.S. Attorney's Office prosecuted the case.
Midland Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Midland, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 8, 2019, by U.S. District Judge Roberto A. Lange.
Angelica Dolloff, age 31, was sentenced to 60 months in federal prison, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Dolloff was indicted by a federal grand jury on June 12, 2018. She pled guilty on February 20, 2019.
The conviction stemmed from a methamphetamine trafficking conspiracy that occurred between June 1, 2013, and continued through June 12, 2018, wherein Dolloff knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute between 500 grams and 1.5 kilograms of methamphetamine. When arrested, Dolloff was unlawfully in possession of .40 caliber pistol ammunition.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Northern Plains Safe Trails
Drug Enforcement Task Force and the South Dakota Division of Criminal Investigation. Assistant U.S. Meghan N. Dilges prosecuted the case.
Dolloff was released on conditions pending placement at a Bureau of Prisons facility to begin serving her custody sentence.
Mexican Citizen Pleads Guilty to Firearms and Illegal Re-entry ChargesRead the Press Release
A Mexican citizen unlawfully living in Tulsa pleaded guilty Tuesday to being an alien unlawfully in the United States in possession of a firearm and ammunition and to reentry of a removed alien, announced U.S. Attorney Trent Shores.
Edgar Raul Sanchez-Miranda, 42, also known as Raul Sanchez-Sanchez, was convicted of being an alien unlawfully in the United States in possession of a Lorcin .380 caliber semi-automatic pistol and associated ammunition. Sanchez-Miranda returned to the United States unlawfully after being deported on May 7, 2016, at or near Laredo, Texas. The Tulsa Police Department- Special Investigations Division arrested Sanchez-Miranda on April 1, 2019, after an extensive investigation of methamphetamine trafficking that involved the use of court ordered tracking devices and a search warrant. He later pleaded guilty in Tulsa County District Court for possession of a controlled drug with intent to distribute and for maintaining a place for keeping/selling controlled drugs.
"Sanchez-Miranda wasn’t “just” an illegal alien living in our country, he was an illegal alien who had been previously deported and snuck back into the United States to deal drugs on our streets. He also armed himself with a semi-automatic gun to protect his house that he used for dealing drugs,” said U.S. Attorney Trent Shores. “Sanchez-Miranda is the poster boy for cooperation between the Tulsa County Sheriff’s Office and ICE. Specially trained Tulsa County detention officers at the David L. Moss Detention Center were able to promptly identify Sanchez-Miranda as an alien who had illegally re-entered the United States. That quick identification directly led to the Alien Unlawfully in the United States in Possession of a Firearm charge.”
Chief U.S. District Judge John E. Dowdell accepted the plea and set sentencing for Oct. 9, 2019.
The Tulsa Police Department, Tulsa County Sheriff’s Office, Department of Homeland Security’s Immigration and Customs Enforcement, and Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.
Member of New Haven Drug Trafficking Ring Sentenced to 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN JONES, also known as “EVX” and “Stevie D,” 35, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for his role in a heroin and cocaine trafficking ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into a New Haven-based drug trafficking organization that acquired and distributed heroin and cocaine. According to court documents and statements made in court, Jones packaged narcotics for street sale and, at times, delivered drugs to customers.
On April 19, 2018, a grand jury in New Haven returned an indictment charging Jones and 18 other individuals with narcotics trafficking offenses. Jones and several other members of the conspiracy were arrested on April 25, 2019. On January 29, 2019, Jones pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin and cocaine.
During the investigation, law enforcement officers seized more than 500 grams of heroin, more than 300 grams of fentanyl, more than one kilogram of cocaine, three firearms, over $90,000 in cash, vehicles, jewelry and precious metals.
The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments. The Connecticut Department of Correction, Milford Police Department and East Haven Police Department have assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Media Advisory JacksonvilleRead the Press Release
MEDIA ADVISORY
WHEN: Wednesday, July 10, 2019 at 2:00 PM
WHERE: Jacksonville Department of Public Safety
206 Marine Blvd.
Jacksonville, NC 28540
Re: Operation “Straight Outta of Niru” Press Conference
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the sentencing of multiple defendants in a multi-year crack cocaine drug trafficking organization operating in Jacksonville, North Carolina. The following agencies took part in the Operation: The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshal’s Service, Jacksonville Police Department and the Onslow County Sheriff’s Office.
In addition to United States Attorney Robert J. Higdon, Jr. we anticipate members of ATF, U.S. Marshal’s Service, Jacksonville Police Department, and the Onslow County Sheriff’s Office to be present at this event.
Man Sentenced for Attempt to Sell Firearm and Bulletproof VestRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to nine and a half years in prison for possessing and attempting to sell a 9mm pistol with an obliterated serial number and a bulletproof vest.
“Criminals typically remove serial numbers from guns to make them harder to trace, so they can be used in future crimes,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Coupled with the bulletproof vest, Jones attempted to introduce to the community the necessary materials intended to commit serious acts of violence. My sincere thanks to our local and federal law enforcement partners for their effort in making our streets safer with the successful prosecution of this felon.”
According to court documents, Dominic Jones, 29, agreed to sell a firearm and a bulletproof vest for $500 to a confidential informant working for the ATF. In August 2018, Jones arrived by vehicle to meet the informant in the 1900 block of Mechanicsville Turnpike of Richmond, to make the sale. Upon Jones’s arrival, Richmond Police officers located Jones sitting in the backseat of a vehicle, approached the vehicle, and asked Jones to step out. As Jones exited the vehicle, RPD officers immediately noticed in plain view a firearm at Jones’s feet.
RPD officers recovered the firearm and determined it to be a Taurus, model PT111, 9mm caliber, semi-automatic pistol, with an obliterated serial number. On the seat next to Jones, RPD officers recovered a black bag containing a bulletproof vest. A records check revealed Jones as a convicted felon and he was placed under arrest. A search of Jones revealed a syringe of suspected heroin. RPD officers later recovered multiple text messages from Jones’s cellphone to the confidential informant setting up the sale of the firearm.
This case is part of Project Safe Neighborhoods (PSN), which 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and William C. Smith, Interim Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-17.
Madison Felon Sentenced for Possessing FirearmRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Billy Shell, Jr., 21, Madison, Wisconsin, was sentenced today by U.S. District William M. Conley to 24 months in federal prison for being a felon in possession of a firearm. This prison term will be followed by three years of supervised release. Shell pleaded guilty to this offense on April 16, 2019.
On October 5, 2018, Madison police officers approached a car that was parked illegally. Shell was one of the people in the car. The owner of the car consented to a search, which revealed a 9 mm handgun under a seat in the area where Shell had been sitting. The investigation revealed that the handgun was stolen, and was equipped with a fully loaded extended magazine.
The charge against Shell was the result of an investigation conducted by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Julie Pfluger.
Logan County Man Pleads Guilty to Gun CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that David Lee Walls, 57, of Logan County, West Virginia, pled guilty to being a felon in possession of a firearm. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the U.S. 119 Task Force conducted the investigation.
Walls admitted that he had possessed ten different firearms despite his status as a convicted felon. Walls faces up to 10 years in prison when he is sentenced on October 11, 2019.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney L. Alexander Hamner is handling 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.
Follow us on Twitter: SDWVNews
###
Leader of Online Car Sales Scam Pleads GuiltyRead the Press Release
COLUMBUS, Ohio – The leader of an online car sales scam that cheated hundreds of victims around the country pleaded guilty in U.S. District Court today and agreed to pay restitution of $9,262,238.90.
Terry J. Boutwell, 36, of Columbus, pleaded guilty to one count of conspiracy to commit money laundering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the plea entered before Chief U.S. District Judge Edmund A. Sargus Jr.
Two co-conspirators, Tiffany A. Strobl, 39, of Columbus, Ohio, and Shalitha R. Schexnayder, 39, of Miami, Fla., have also entered guilty pleas and are awaiting sentencing.
Court documents outline the scheme which began in 2015 and continued until the three were indicted in October 2018. The defendants were part of a network that attracted online customers through fraudulent postings for vehicle sales. They communicated with victims through email and telephone posing as employees of eBay, and used third parties to open bank accounts in the names of shell corporations that appeared to be affiliated with eBay. They instructed victims to wire funds to various third-party bank accounts they set up. They claimed to be affiliated with eBay’s Buyer Protection Program, when in fact, no such relationship existed.
“The accounts he controlled received more than $9 million from more than 800 victims around the country,” Glassman said. “Our efforts now will focus on doing as much as we can to collect the restitution and help the victims as the investigation continues.”
“The sophistication and brazenness of the defendant’s on-line car sales scam created havoc on innocent victims and deserves to be punished to the fullest extent of the law,” said William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Boutwell was arrested in January when the indictment was announced. Judge Sargus ordered him to remain in custody. The crime is punishable by up to 20 years in prison, followed by up to three years of supervised release and a fine not to exceed $500,000. However, any sentence will be imposed by the court after consideration of U.S. Sentencing Guidelines and applicable federal statutes. The court will determine a date to sentence Boutwell and the others.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and the assistance of United States Secret Service in Toledo, Ohio and Miami, Fla.; the FBI’s Baltimore field office; United States Postal Inspection Service in Detroit; New York State Police; the Canton, Ohio, Butler Village, Ohio, Mayfield Heights, Ohio, Bloomfield Township, Mich., Marlboro Township, New Jersey and Janesville, Wis. police departments; and the Walworth County, Wis. and Clarke County, Ala. sheriff’s offices. Assistant United States Attorney Noah Litton is representing the United States in this case.
# # #
Latin King Gang Member Convicted at Trial of Conspiracy to Participate in Racketeering Activity, Including Two MurdersRead the Press Release
HAMMOND-Jeremiah Farmer, 38, of Hammond, Indiana, and a member of the Chicago-based Latin Kings street gang, was convicted by a federal jury of conspiracy to participate in racketeering activity and conspiracy to possess with intent to distribute and to distribute illegal drugs ( cocaine, marijuana, and alprazolam) , announced U.S. Attorney Kirsch.
Farmer was convicted after a ten-day jury trial before U.S. District Court Judge Philip P. Simon. The jury found that Farmer, as part of the racketeering conspiracy, on June 25, 1999, beat Marion Lowry, 74, and Harvey Siegers, 67, to death with a hammer at their Hammond business, Calumet Auto Rebuilders. The jury also found that Farmer conspired to distribute or possess with intent to distribute five kilograms or more of cocaine as part of the racketeering conspiracy. The jury also found that Farmer conspired to distribute or possess with intent to distribute 100 kilograms or more of marijuana as part of the drug conspiracy.
U.S. Attorney Kirsch said, “I am very pleased with the guilty verdict announced today and with the work of Assistant United States Attorneys David Nozick and Nicholas Padilla in presenting this case to the jury over the past several weeks. The victims’ families have waited a long time for this day. My office will continue to aggressively prosecute cases involving violent street gangs and senseless acts of gang violence and bring these criminal gang members to justice.”
Approximately 43 defendants have been charged with racketeering conspiracy as members of the Latin Kings street gang in a criminal conspiracy extending back to 1999. The racketeering conspiracy charge alleges that gang members and associates were participants in a racketeering conspiracy that involved murder, attempted murder, aggravated assault, sex trafficking, and narcotics distribution.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office and the U.S. Attorney’s Office, Northern District of Illinois, have also provided assistance. The Latin King racketeering case was prosecuted by Northern District of Indiana Assistant U.S. Attorneys David J. Nozick and Nicholas J. Padilla
Kansas Chiropractors Pay $350,000 to Settle False Claim AllegationsRead the Press Release
KANSAS CITY, KAN. - Two Kansas City area chiropractors have paid $350,000 to settle allegations that they submitted false claims to Medicare, U.S. Attorney Steven McAllister said today.
Brothers Ryan Schell and Tyler Schell, and their former clinic, Kansas City Health and Wellness Clinic, P.A., agreed to pay the United States to settle allegations that they violated the False Claims Act. The Schells’ clinic was located in Lenexa, Kansas.
In an action filed in federal court in Kansas, the United States alleged that the Schells claimed they provided treatments for peripheral neuropathy and charged Medicare for procedures that were not medically necessary, not actually provided, or not covered by the program. Peripheral neuropathy affects nerves in the hands and feet and includes symptoms such loss of sensation and/or a burning sensation.
The claimed procedures included nerve conduction tests, nerve block injections, ultrasound needle guidance and the purported use of vasopneumatic devices. The complaint filed by the United States alleged that claims for the nerve tests falsely stated that they were performed by doctors when they were not actually interpreted by any qualified health care professional; that the nerve block injections and needle guidance were not medically necessary; and that the Schells’ claims for the vasopneumatic devices were instead merely for the use of mechanical massage chairs.
Brian Holt, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations (HHS OIG/OI), Kansas City Region, stated, “Our office will continue to focus our efforts on those providers receiving improper payments for services not covered by Medicare in order to ensure the integrity of HHS programs.”
According to the agreement, the Schells and their clinic deny any wrongdoing.
The federal district court case is United States v. Schell et al. No. 18-CV-02706. HHS OIG/OI and the United States Attorney’s Office for the District of Kansas investigated. Assistant United States Attorney Jon Fleenor represented the government.
Justice Department Reaches ADA Settlement with Los Angeles Spa Owner Who Denied Blind Customer Access to Its FacilitiesRead the Press Release
LOS ANGELES – C.J. Spa Group, Inc., a company that operates Spa Palace in the Westlake neighborhood in the city of Los Angeles, has entered into a settlement agreement with the Department of Justice to ensure that individuals with disabilities can access the spa’s facilities.
The settlement agreement resolves a complaint under the Americans with Disabilities Act (ADA) that Spa Palace staff denied entry to a blind customer, telling him that “his kind” would not be able to follow instructions and that a massage therapist could not care for him. Spa Palace also maintained a policy requiring individuals with disabilities to be accompanied at all times by a personal attendant. \
In the settlement, Spa Palace has agreed to change its policies and implement training to ensure that individuals with disabilities will not be discriminated against. In addition, Spa Palace agreed to pay $5,000 in damages to the complainant and a civil penalty of $5,000 to the U.S. Treasury.
“Individuals with disabilities, including those who are blind, should not be excluded from activities or services on the basis of stereotypes or false assumptions,” said United States Attorney Nick Hanna. “My office will continue to enforce the law to ensure equal treatment for people with disabilities.”
Assistant United States Attorney Acrivi Coromelas of the Civil Division’s Civil Rights Section handled this matter.
For more information on the ADA or this settlement agreement, please call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Jury Finds Defendants Guilty in KCK Meth Lab FireRead the Press Release
KANSAS CITY, KAN. – A federal court jury today returned guilty verdicts against two defendants who were arrested after their meth lab caught fire, U.S. Attorney Stephen McAllister said.
The jury verdict was as follows:
Orlando Cortez-Nieto, 42, Kansas City, Kan.: Guilty on count one (conspiracy to manufacture methamphetamine), count two (manufacturing methamphetamine within 1,000 feet of Klamm Park playground), count three (possession with intention to distribute methamphetamine within 1,000 feet of Klamm Park playground) and count four (maintaining a residence in furtherance of drug trafficking.
Jesus Cervantes-Aguiler, 22, Kansas City, Kan.: Guilty on count one (conspiracy to manufacture methamphetamine), count two (manufacturing methamphetamine within 1,000 feet of Klamm Park playground, count three (possession with intention to distribute methamphetamine within 1,000 feet of Klamm Park playground and count four (maintaining a residence in furtherance of drug trafficking.
During trial, prosecutors presented evidence that on Dec. 1, 2017, firefighters responded to a house fire at 2739 Cleveland in Kansas City, Kan. They discovered a methamphetamine conversion lab inside the house. Prosecutors introduced evidence tying the defendants to the drug lab, including a blue spiral notebook in which cash transactions were recorded, as well as business surveillance video showing a defending buying items found in the meth lab.
Sentencing is set for Oct. 29. The counts on which the defendants were convicted carry the following penalties:
- Counts one, two and three (conspiracy, manufacturing and possession with intent to distribute): Not less than 10 years in federal prison and a fine up to $20 million.
- Count four: Maintaining a residence in furtherance of drug trafficking: Not less than a year and not more than 40 years and a fine up to $1 million.
McAllister commended the Drug Enforcement Administration, Assistant U.S. Attorney Kim Flannigan and Assistant U.S. Attorney Trent Krug for their work on the case.
Indian National Sentenced to One Year in Prison for Role in Conspiracy to Smuggle Foreign Nationals into United States via Commercial FlightsRead the Press Release
NEWARK, N.J. – An Indian national was sentenced today to 12 months and one day in prison for his role in an international conspiracy to smuggle foreign nationals into the United States via commercial airline flights, New Jersey U.S. Attorney Craig Carpenito announced.
Bhavin Patel, 39, of India, previously pleaded guilty before U.S. District Judge John M. Vazquez to a superseding information charging him with conspiracy to smuggle foreign nationals into the United States for private financial gain. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Agents for the Department of Homeland Security, Homeland Security Investigations (HSI) received information that a smuggling operation run by Patel was attempting to find methods to bring foreign nationals from India into the United States. The investigation revealed that the smuggling organization recruited Indian nationals and others to pay fees in exchange for passage to the United States.
Beginning in October 2013, an undercover law enforcement officer posing as a smuggler began meeting with Patel in Bangkok, Thailand. Patel told the undercover law enforcement officer that he wanted to smuggle Indian nationals into the United States. On three different occasions, Patel or his conspirator transported the Indian nationals to an airport in Thailand, at which point the undercover law enforcement officer would presumably use his contacts to smuggle them into the United States via commercial airline flights. Patel agreed to wire down payments for each individual to be smuggled into the United States and to pay a balance of tens of thousands of dollars for each individual once the foreign nationals arrived in the United States.
Over the ensuing months, Patel arranged for six Indian nationals to be brought to Thailand for smuggling into the United States via Newark Liberty International Airport. Patel was arrested on Dec. 7, 2018, upon his arrival at Newark.
In addition to the prison term, Judge Vazquez sentenced Patel to one year of supervised release.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Thomas S. Kearney of the U.S Attorney’s Office National Security Unit in Newark.
Honduran Man Sentenced to Prison for Illegally Reentering the United States After Three Prior DeportationsRead the Press Release
A man who illegally returned to the United States after being deported three times was sentenced today to almost three months in federal prison.
Joel Martinez-Reyes, age 34, a citizen of Honduras illegally present in the United States and residing in Iowa City, Iowa, received the prison term after a May 15, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Martinez-Reyes admitted he had previously been deported from the United States in October 2009, February 2010, and October 2013 and illegally reentered the United States without the permission of the United States government. Martinez-Reyes was found by immigration agents in April 2019 illegally working in Cedar Rapids.
In September 2009, Martinez-Reyes was convicted in the United States District Court for the Western District of Texas of illegal entry into the United States from Mexico by crossing by Rio Grande River.
Martinez-Reyes was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Martinez-Reyes was sentenced to 89 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Martinez-Reyes is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-40.
Follow us on Twitter @USAO_NDIA.
Hinds County Man Pleads Guilty under Project EJECT to Illegal Possession of FirearmRead the Press Release
Jackson, Miss. – Estvanico Mack, 35, of Jackson, pled guilty yesterday before U.S. District Judge Carlton W. Reeves to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana K. Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mack was previously convicted of felonious false pretense in Hinds County in 2010 as well as felonious vehicular burglary in 2008. On April 25, 2018, Mack was found in possession of a firearm while he was parked at a gas station on Northside Drive in Jackson.
Mack will be sentenced by Judge Reeves on October 10, 2019 at 9:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson Police Department. It is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Heart Butte man admits distributing meth to minorRead the Press Release
GREAT FALLS – Gary Allen Jimenez, a Heart Butte resident, admitted drug distribution charges today for providing a minor with methamphetamine on the Blackfeet Indian Reservation, U.S. Attorney Kurt Alme said.
Jimenez, 24, pleaded guilty to distribution of a controlled substance to a person under 21. Jimenez faces a minimum mandatory one year to 40 years in prison, a $2 million fine and at least six years to life of supervised release.
U.S. District Judge Brian M. Morris presided and set sentencing for Oct. 24. Jimenez is detained.
The prosecution said in court records that in early 2017, FBI agents began investigating allegations that persons on the Blackfeet Indian Reservation were providing meth and other drugs to minors. A juvenile girl was identified as being involved in such activity and communicated with potential meth dealers through Facebook. A search of the juvenile’s Facebook accounts identified Jimenez as being involved in illicit transactions with the juvenile, who at the time was between 12 and 14 years of age. The juvenile told law enforcement that he provided her with meth on multiple occasions and that they had smoked it together.
Assistant U.S. Attorney Jeff Starnes prosecuted the case, which was investigated by the FBI and Blackfeet Tribal law enforcement.
The case is part of Project Safe Neighborhoods (PSN), which 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.
XXX
Harrison County man indicted for firearms violationsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Given, Jr., of Lost Creek, West Virginia, was indicted by a federal grand jury today for firearms violations, United States Attorney Bill Powell announced.
Given, age 47, is charged with one count of “Possession of an Unlawful Firearm” and one count of “Possession of Machinegun.” Given is accused of knowingly having a .223 caliber rifle with a shortened barrel that wasn’t registered to him. He is also accused of having a machine gun. Both crimes are alleged to have occurred in February 2019 in Harrison County.
Given faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Harrison County Sheriff’s Office, Marion County Sheriff’s Office, the Clarksburg Police Department, and the Bridgeport Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Gaithersburg Man Sentenced to 20 Years in Federal Prison for Kidnapping ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Reynaldo Alexis Granados-Vasquez, a/k/a “Fuego,” age 23, of Gaithersburg, Maryland, today to 20 years in federal prison, followed by five years of supervised release, for a kidnapping conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Acting Chief Marcus Jones of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“With today’s sentence, three MS-13 members and associates will now be prevented from inflicting any further harm on our community for years to come,” said United States Attorney Robert K. Hur. “This case and our ongoing work with our law enforcement partners to bring other gang members to justice, demonstrates our unflagging commitment to eliminate MS-13 and its campaign of violence.”
According to Granada-Vasquez’s plea agreement, he conspired with Jose Israel Melendez-Rivera, a/k/a “Liar,” and Neris Moreno-Martinez to trick a victim, Jordy Mejia, to travel from New Jersey to Maryland, under the false promise that Mejia would meet a woman. As detailed in court documents, Granados-Vasquez, Melendez-Rivera, and Moreno-Martinez were all members and associates of MS-13.
MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. In Maryland and elsewhere MS-13 members are organized in “cliques,” smaller groups that operate in a specific city of region. MS-13 members are required to commit acts of violence, both to maintain membership and discipline within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the plea agreement, Moreno-Martinez traveled to Maryland on October 15, 2016. Later that day, Mejia also traveled to Maryland. Granados-Vasquez admitted that he traveled with Melendez-Rivera and Moreno-Martinez to a wooded area in Maryland. As a result of Mejia being tricked into coming from New Jersey to Maryland, Mejia was murdered in that same wooded area.
Melendez-Rivera, age 21, of Gaithersburg, Maryland, was sentenced on June 17, 2019 to 20 years in federal prison. Moreno-Martinez, age 22, of New Jersey, was sentenced to 30 years in federal prison on June 25, 2019.
United States Attorney Robert K. Hur commended HSI, the Montgomery County Police Department, and the Montgomery County State’s Attorney Office for their work in the investigation and thanked the Gaithersburg Police Department and the Guttenburg, New Jersey Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Thomas P. Windom and Timothy F. Hagan, Jr., who prosecuted this Organized Crime Drug Enforcement Task Force case.
# # #
GBK Gang Member Sentenced to 16+ Years in Prison for Conspiring to Distribute Crack Cocaine in Greenway ProjectsRead the Press Release
PITTSBURGH – A Pittsburgh-area gang member has been sentenced in federal court to 16 years and eight months (200 months) in prison on his conviction of conspiracy to distribute crack cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Brett Rodgers, 33, of Pittsburgh, PA.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the Greenway Boy Killas (GBK) street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Brett Rodgers conspired to distribute 28 grams or more of crack cocaine, primarily in and around the Greenway Projects.
"Brett Rodgers is one of 28 members and associates of the violent GBK street gang charged last June with drug trafficking. Gangs like GBK terrorize their communities and force law-abiding citizens to live in fear," said U.S. Attorney Brady. "The people of the West End are safer today than they were last year, while Rodgers will have the next decade-and-a-half to reflect on his illegal conduct."
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Rodgers.
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.
Four Men Indicted for Defrauding Banks in Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – Four men have been indicted for carrying out a scheme to use phony information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit (HELOCs), U.S. Attorney Craig Carpenito announced.
Jorge Flores, 48, of Oakdale, New York; Joseph A. Gonzalez, 45, of Henderson, Nevada; and Jose L. Piedrahita, 57, and Yorce Yotagri, 52, both of Freeport, New York; are each charged by indictment with one count of conspiracy to commit bank fraud. Flores and Gonzalez are also charged with two substantive counts of bank fraud. Yotagri was arraigned July 8, 2019, before U.S. District Judge John Michael Vazquez in Newark federal court. Flores and Piedrahita remain at large. Gonzalez will be arraigned at a date to be determined.
According to documents filed in the case and statements made in court:
From 2010 through 2018, Flores and Simon Curanaj, a real estate broker in the Bronx who has previously pleaded guilty and is awaiting sentencing, ran a mortgage fraud scheme in which they applied for more than $9 million in HELOCs from banks on residential properties in New Jersey and New York.
For instance, Gonzalez and Flores used a property in Jersey City, New Jersey, as part of the scheme. Gonzalez had been allowed to live at the property by the owner in exchange for management services, but neither he nor Flores owned the property. Gonzalez also recruited an individual with good credit to act as a straw buyer (Individual 1). Later, unbeknownst to the owner of the property, a “quitclaim” deed – a deed which contains no warranties of title – was prepared transferring the property to Individual 1. The signatures on the deed were forged.
Gonzalez and Flores then applied for two HELOCs from multiple banks using the Jersey City property as collateral in Individual 1’s name. They concealed the fact that the property offered as collateral was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also contained false information concerning Individual1’s income, which was stated to be higher than his actual income. At the time the applications were made, the value of the property was less than the amount of the HELOC loans for which Gonzalez and Flores applied.
The victim banks eventually issued loans to Individual 1 in excess of $500,000. After the victim banks funded the HELOCs and deposited money into Individual 1’s bank account, Individual 1 disbursed almost all of it to Gonzalez, Flores, and others. Gonzalez used $43,000 of the illicit proceeds to buy a luxury car. Individual 1 eventually defaulted on both HELOC loans.
In another example, Flores, Piedrahita, and Yotagri used a property in Freeport, New York, to carry out a similar scheme.
The conspiracy to commit bank fraud and substantive bank fraud counts carry a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross pecuniary gain to the defendants or twice the gross pecuniary loss to others, whichever is greater.
U.S. Attorney Carpenito credited special agents of the U.S. Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presume innocent unless and until proven guilty.
Four Charged in Stolen ID, Credit Card Fraud SchemeRead the Press Release
PROVIDENCE – Four men have been charged in federal court in Providence with allegedly participating in a conspiracy to use stolen identities and stolen credit card information to purchase tens of thousands of dollars worth of construction materials and tools at home improvement stores in several Rhode Island and Massachusetts communities.
It is alleged in court documents that the defendants participated in a conspiracy that ordered construction supplies and tools online, via telephone, or in person at or from home improvement stores. Stolen credit card information and stolen personal identifying information were used to pay for the items at pick-up.
It is alleged that in each instance, an individual would provide payment information by telephone to store cashiers. The cashiers were unaware that the personal identifying information and credit card information provided for payment were stolen. Once payment was approved, a member of the conspiracy would leave the store with the purchased items.
It is alleged that the defendants carried out this scheme on multiple occasions in at least six stores in Rhode Island and Massachusetts, visiting some stores on multiple occasions. Purchases ranged from approximately $1,000 to more than $4,000.
The matter first came to light during an investigation by Smithfield Police in September 2018, into a complaint by a Smithfield resident who reported the fraudulent use of their credit card information for the purchase of more than $2,100 worth of construction items and tools at a home improvement store in Smithfield. Working jointly with the United States Secret Service, it has been determined that members of the conspiracy have allegedly carried out this scheme from at least September 2018 through January 2019.
The investigation is continuing.
Charged by way of criminal complaint with conspiracy to commit access fraud, access device fraud, and aggravated identity theft are Jose R. Delarosa, 42, of Cranston, Jose G, Rivera, 42, address unknown, and Miguel Rodrigues, 48, of Providence. Charged by way of criminal complaint with conspiracy to commit access fraud is Jose Brens, 38, of Providence.
The charges are announced by United States Attorney Aaron L. Weisman, Smithfield Police Chief Richard P. St.Sauveur, Jr., and Special Agent in Charge of the U.S. Secret Service Stephen Marks.
The case is being prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and William J. Ferland.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
###
Fort Thompson Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on May 13, 2019, by U.S. District Judge Roberto A. Lange.
Brooke Kristen Shields, age 32, was sentenced to 87 months in federal prison, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Shields was indicted by a federal grand jury on November 14, 2018.
She pled guilty on February 19, 2019.The conviction stemmed from her involvement in a methamphetamine distribution conspiracy beginning at some point before January 1, 2017, and continuing until November 14, 2018. Shields conspired to knowingly and intentionally distribute and possess with the intent to distribute 500 grams or more of methamphetamine.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Shields was immediately turned over to the custody of the U.S. Marshals Service.
Former Tidewater Businessman Sentenced for Tax and Fraud CrimesRead the Press Release
NEWPORT NEWS, Va. – A North Carolina man was sentenced today to more than 12 years in prison for conspiracy to defraud the United States, tax fraud related to a fraudulent tax shelter, mail and wire fraud and money laundering.
According to court records and evidence presented at trial, Byron Hale Delavan, 63, of Asheville, engaged in a fraudulent tax and investment fraud scheme from approximately 2011 to 2017 that resulted to individual victims of over $1.1 million and a separate tax loss to the United States of over $400,000.”
“Delavan’s crimes were not a rash or foolhardy act of someone that could not appreciate the consequences of his actions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Delavan operated sophisticated and comprehensive fraud schemes, including a Ponzi-type investment scheme and tax fraud that resulted in losses of over $1.5 million.”
The evidence at trial revealed that Delavan offered a fraudulent tax program to various individuals in the Tidewater area and elsewhere whereby individuals paid Delavan between $10,000 and $12,500 in order to obtain fraudulent losses to offset income on their tax returns. In doing so, Delavan purported to deduct business bad debts from non-operational entities he controlled, passing through these losses to client returns as if the clients were actually involved in these entities. Furthermore, Delavan solicited business loans and investments from some of the same and additional clients that he falsely represented would be used for business purposes. Contrary to this, Delavan used such funds for personal use, including the repayment of prior clients and personal expenses, such as private school tuition. Finally, Delavan purported to sell gold to certain clients, but made false representations related to the value or existence of the gold or the purpose of the funds obtained.
“Delavan realized today that crime does not pay,” said Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI). “Delavan not only evaded paying his fair share of taxes to the IRS, but betrayed the public trust by bilking over a million dollars out of victims.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
The U.S. Postal Inspection Service provided assistance through the Newport News Financial Crimes Task Force. Also, the Virginia State Corporation Commission (SCC) staff cooperated with federal authorities regarding this matter.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-23.
Former State Department Employee Sentenced for Conspiring with Chinese AgentsRead the Press Release
WASHINGTON – Candace Marie Claiborne, a former employee of the U.S. Department of State, was sentenced today to 40 months in prison, three years of supervised release and a fine of $40,000, for conspiracy to defraud the United States, by lying to law enforcement and background investigators, and hiding her extensive contacts with, and gifts from, agents of the People’s Republic of China, in exchange for providing them with internal documents from the U.S. State Department.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu of the District of Columbia, Acting Assistant Director in Charge John P. Selleck of the FBI’s Washington Field Office and Deputy Assistant Secretary Ricardo Colón, Domestic Operations, U.S. Department of State’s Diplomatic Security Service (DSS).
“Chinese intelligence agents convinced Candace Marie Claiborne to trade her integrity and confidential information of the United States government for cash and other gifts for herself and her family,” said Assistant Attorney General Demers. “Claiborne withheld information and lied repeatedly about these foreign intelligence contacts. Violations of the public’s trust are an affront to our citizens and to all those who honor their oaths. With this sentencing, justice has been imposed for these dishonorable criminal acts.”
“Candace Claiborne received gifts from foreign officials and lied to investigators repeatedly about her role in defrauding the U.S. government,” said U.S. Attorney Liu. “Claiborne violated her oath as a State Department employee, and we will continue to hold accountable those abuse their positions of trust.”
“Claiborne was entrusted with privileged information as a U.S. government employee, and she abused that trust at the expense of our nation’s security,” said John P. Selleck, Acting Assistant Director in Charge of the FBI Washington Field Office. “The targeting of U.S. security clearance holders by Chinese intelligence services is a constant threat we face, and today’s sentencing shows that those who betray the trust of the American people will be held accountable for their actions. I would like to thank the men and women of the FBI Washington Field Office and our partners at the Department of Justice for their work in investigating and prosecuting this case.”
“This sentence makes a strong statement to those who would attempt to commit crimes that violate the public trust and damage our national security. The Diplomatic Security Service is dedicated to working with the FBI and the U.S. Attorney’s Office to ensure that those who commit these crimes are brought to justice,” said Deputy Assistant Secretary Colón.”
Claiborne, of Washington, D.C., pleaded guilty in April 2019 in the U.S. District Court for the District of Columbia, to a charge of conspiracy to defraud the United States. She was sentenced by the Honorable Randolph D. Moss.
According to the plea documents, Claiborne began working as an Office Management Specialist for the Department of State in 1999. She has served overseas at a number of posts, including embassies and consulates in Baghdad, Iraq, Khartoum, Sudan, and Beijing and Shanghai, China. As a condition of her employment, Claiborne maintained a TOP SECRET security clearance. Claiborne also was required to report any contacts with persons suspected of affiliation with a foreign intelligence agency.
Despite such a requirement, Claiborne failed to report repeated contacts with two intelligence agents of the People’s Republic of China (PRC), even though these agents provided tens of thousands of dollars in gifts and benefits to Claiborne and her family over five years. The gifts and benefits included cash wired to Claiborne’s USAA account, Chinese New Year’s gifts, international travel and vacations, tuition at a Chinese fashion school, a fully furnished apartment, and a monthly stipend. Some of these gifts and benefits were provided directly to Claiborne, while others were provided through a co-conspirator.
In exchange for these gifts and benefits, Claiborne provided copies of internal documents from the Department of State on topics ranging from economics to visits by dignitaries between the two countries.
Claiborne noted in her journal that she could “Generate 20k in 1 year” working with one of the PRC agents, who tasked her with providing internal U.S. Government analyses on a U.S.-Sino Strategic Economic Dialogue that had just concluded.
Claiborne, who confided to a co-conspirator that the PRC agents were “spies,” willfully misled State Department background investigators and FBI investigators about her contacts with those agents, the plea documents state. After the State Department and FBI investigators contacted her, Claiborne also instructed her co-conspirators to delete evidence connecting her to the PRC agents.
The case was investigated by the FBI’s Washington Field Office. The case was prosecuted by Assistant U.S. Attorneys Thomas A. Gillice, John L. Hill, and Deputy Chief Julie Edelstein and Trial Attorney Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section.
Former State Department Employee Sentenced for Conspiring with Chinese AgentsRead the Press Release
Candace Marie Claiborne, a former employee of the U.S. Department of State, was sentenced today to 40 months in prison, three years of supervised release and a fine of $40,000 for conspiracy to defraud the United States, by lying to law enforcement and background investigators, and hiding her extensive contacts with, and gifts from, agents of the People’s Republic of China, in exchange for providing them with internal documents from the U.S. State Department.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu of the District of Columbia, Acting Assistant Director John P. Selleck of the FBI’s Washington Field Office and Deputy Assistant Secretary Ricardo Colón, Domestic Operations, U.S. Department of State’s Diplomatic Security Service.
“Chinese intelligence agents convinced Candace Marie Claiborne to trade her integrity and confidential information of the United States government for cash and other gifts for herself and her family,” said Assistant Attorney General Demers. “Claiborne withheld information and lied repeatedly about these foreign intelligence contacts. Violations of the public’s trust are an affront to our citizens and to all those who honor their oaths. With this sentencing, justice has been imposed for these dishonorable criminal acts.”
“Candace Claiborne received gifts from foreign officials and lied to investigators repeatedly about her role in defrauding the U.S. government,” said U.S. Attorney Liu. “Claiborne violated her oath as a State Department employee and today’s sentence should send a message to those who abuse their positions of trust. We will continue to seek prosecution and hold those accountable for their illegal actions.”
“Claiborne was entrusted with privileged information as a U.S. government employee, and she abused that trust at the expense of our nation’s security,” said Acting Assistant Director Selleck. “The targeting of U.S. security clearance holders by Chinese intelligence services is a constant threat we face, and today’s sentencing shows that those who betray the trust of the American people will be held accountable for their actions. I would like to thank the men and women of the FBI Washington Field Office and our partners at the Department of Justice for their work in investigating and prosecuting this case.”
“This sentence makes a strong statement to those who would attempt to commit crimes that violate the public trust and damage our national security,” said Deputy Assistant Secretary Colón. “The Diplomatic Security Service is dedicated to working with the FBI and the U.S. Attorney’s Office to ensure that those who commit these crimes are brought to justice.”
Claiborne, of Washington, D.C., pleaded guilty in April 2019, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to defraud the United States. She was sentenced by the Honorable Randolph D. Moss.
According to the plea documents, Claiborne began working as an Office Management Specialist for the Department of State in 1999. She has served overseas at a number of posts, including embassies and consulates in Baghdad, Iraq, Khartoum, Sudan, and Beijing and Shanghai, China. As a condition of her employment, Claiborne maintained a TOP SECRET security clearance. Claiborne also was required to report any contacts with persons suspected of affiliation with a foreign intelligence agency.
Despite such a requirement, Claiborne failed to report repeated contacts with two intelligence agents of the People’s Republic of China (PRC), even though these agents provided tens of thousands of dollars in gifts and benefits to Claiborne and her family over five years. The gifts and benefits included cash wired to Claiborne’s USAA account, Chinese New Year’s gifts, international travel and vacations, tuition at a Chinese fashion school, a fully furnished apartment, and a monthly stipend. Some of these gifts and benefits were provided directly to Claiborne, while others were provided through a co-conspirator.
In exchange for these gifts and benefits, Claiborne provided copies of internal documents from the Department of State on topics ranging from economics to visits by dignitaries between the two countries.
Claiborne noted in her journal that she could “Generate 20k in 1 year” working with one of the PRC agents, who tasked her with providing internal U.S. Government analyses on a U.S.-Sino Strategic Economic Dialogue that had just concluded.
Claiborne, who confided to a co-conspirator that the PRC agents were “spies,” willfully misled State Department background investigators and FBI investigators about her contacts with those agents, the plea documents state. After the State Department and FBI investigators contacted her, Claiborne also instructed her co-conspirators to delete evidence connecting her to the PRC agents.
The case was investigated by the FBI’s Washington Field Office. The case was prosecuted by Assistant U.S. Attorneys Thomas A. Gillice John L. Hill for the District of Columbia, and Deputy Chief Julie A. Edelstein and Trial Attorney Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section.
Former Postal Employee Sentenced for Mail TheftRead the Press Release
Jackson, Miss. – Calvin Taylor, 51, of Yazoo City, was sentenced today by U.S. District Judge Carlton W. Reeves to 48 months of supervised probation for embezzling parcels of mail during the course of his employment with the U.S. Postal Service, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Cave with the U.S. Postal Service Office of Inspector General, Southern Area Field Office. Taylor was also ordered to pay a $2,000 fine.
On April 4, 2018, Postal Service Office of Inspector General special agents arrested Taylor after an investigation revealed him purposefully failing to deliver parcels of mail and stealing articles of clothing and shoes from the undelivered parcels.
On January 8, 2019, Taylor was charged in a federal indictment for theft of mail while a postal employee. He pled guilty before Judge Reeves on March 22, 2019.
This case was investigated by the U.S. Postal Service Office of Inspector General. It was prosecuted by Assistant United States Attorney Bert Carraway.
Former IT Administrator Sentenced to More than 2 Years in Prison for Hacking into His Ex-Employer’s Computers, Deleting Their FilesRead the Press Release
LOS ANGELES – An Arizona man has been sentenced to 27 months in federal prison for breaking federal computer intrusion laws governing the deletion of electronic files after he hacked into computer systems operated by his former employer, an Irvine-based company, and then deleted its website and marketing materials in retaliation for being stripped of some of his job duties.
Nikishna Polequaptewa, 37, of Avondale, Arizona, was sentenced on Monday afternoon by United States District Judge Cormac J. Carney, who also ordered him to pay $53,305 in restitution to his former employer.
Polequaptewa, who was a Garden Grove resident during the criminal conduct, was indicted by a federal grand jury in 2016. After a five-day trial in November 2018, a jury found him guilty of one felony count of unauthorized impairment of the integrity and availability of data, programs, systems, and information.
Beginning in April 2014, Polequaptewa worked at Blue Stone Strategy Group, which provided consulting services to Native American tribal governments throughout the United States. In addition to his consulting responsibilities, Polequaptewa led information technology and marketing at Blue Stone.
After he began falling behind on work, Polequaptewa was relieved of IT and marketing duties in November 2014. Polequaptewa then was assigned to a consulting project in Florida for the Seminole Tribe. While on that project and angry that he had been stripped of his other job duties, Polequaptewa retaliated against Blue Stone by deleted the website and marketing materials that the company had developed over eight years. Polequaptewa’s deletions cost Blue Stone more than $50,000 to restore its system to its state before Polequaptewa’s deletions.
After he resigned from the Florida project in November 2014, Polequaptewa continued to delete Blue Stone files, including client information, Blue Stone work product, and the company’s backup files held by a third-party. Polequaptewa’s final deletion was done by sending a “wipe” command to a Blue Stone desktop computer in Irvine. Polequaptewa’s deletions were first detected when an employee in Irvine saw files being deleted from a Google drive account by Polequaptewa while he was working on the Florida project.
This case was investigated by the Federal Bureau of Investigation. The Broward County Sheriff’s Office in Florida and the Irvine Police Department provided assistance.
This case is being prosecuted by Assistant United States Attorneys Vibhav Mittal and Bradley E. Marrett of the Santa Ana Branch Office.
Former Executive Director Convicted of Stealing Nearly One Million Dollars from Long Island CharityRead the Press Release
Wafa Abboud, the former Executive Director of Human First, a not-for-profit organization based in Nassau County, New York, that provides services to developmentally disabled individuals, was convicted today by a federal jury in Brooklyn of all counts of a superseding indictment charging her with embezzling funds, bank fraud and money laundering. The verdict followed a two-week trial before United States District Judge Edward R. Korman. When sentenced, Abboud faces up to 30 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“With today’s verdict, Abboud has been held accountable for abusing her position of trust as the Executive Director of a charity and funding her elaborate lifestyle with money intended to serve the needs of vulnerable individuals in the community,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, the New York State Office of the Attorney General and the New York State Office of the Inspector General for their work on the case.
From January 2011 until she was terminated on May 27, 2016, Abboud was Human First’s Executive Director and authorized the disbursement of all of the charity’s funds. Between May 2011 and February 2016, Abboud caused Human First to issue approximately $16,000 a month in purported consultant fees to MPB Management Services LLC (MPB), a company controlled by co-conspirator Marcelle Bailey. Every month, Abboud wrote two checks payable to MPB, each for $8,000, and deposited one of the checks into bank accounts in MPB’s name that Abboud controlled. In total, Abboud diverted $420,000 of Human First funds into the accounts and used the embezzled funds to pay for her personal expenses, including a trip to Disneyland in California, tickets to the Broadway show “Newsies,” visits to luxury spas and high-end beauty salons, cosmetic surgeries and international wire transfers. Abboud also withdrew nearly $120,000 in cash from the accounts.
Abboud also embezzled more than $440,000 from Human First with her co-conspirator Rami Taha, another consultant who Abboud hired to work at Human First. In furtherance of this scheme, the defendant approved inflated construction invoices that were submitted to Human First by Taha. Abboud issued Human First checks to companies controlled by Taha, who in turn diverted the embezzled funds back to Abboud. Abboud used the funds toward the down payment for her residence and to pay for extensive renovations to the residence. When Abboud’s mortgage lender asked her about the source of the funds, Abboud, to conceal the embezzlement, falsely represented to the lender that the funds were part of a settlement payment that she had received for damage to her prior residence. The evidence at trial also established that the defendant awarded herself an annual salary increase to $479,000, without obtaining the required approval from Human First’s Board of Directors, in order to obtain the mortgage loan.
Bailey pleaded guilty in December 2017 to embezzling funds and bank fraud, and Taha pleaded guilty in May 2019 to embezzling funds. A fourth defendant, Arkadiusz Swiechowicz, pleaded guilty to obstruction of justice in September 2018. They are awaiting sentencing.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni and F. Turner Buford are in charge of the prosecution.
The Defendant:
WAFA ABBOUD
Age: 51
Merrick, New YorkE.D.N.Y. Docket No. 16-CR-396 (ERK)
Former Clairton Resident Sentenced for Distributing Fentanyl and Illegally Possessing FirearmsRead the Press Release
PITTSBURGH, PA - A former resident of Clairton, Pennsylvania, has been sentenced in federal court to nine years’ imprisonment, followed by 10 years’ supervised release, on his conviction of conspiring to distribute narcotics and unlawful possession of firearms, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Elliot Page, 38.
According to information presented to the court, Page supplied fentanyl to his codefendants, Skyler Carter and Cecil Shields, and others, for further distribution in the Clairton area. Agents seized approximately one kilogram of fentanyl and three firearms during the execution of a federal search warrant at Page’s residence on July 6, 2017. Page had three prior felony drug offenses and was forbidden from possessing a firearm.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. 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.
Florida Attorney Sentenced to 60 Months in Prison for Multi-Million Dollar Pornography Film Copyright Fraud SchemeRead the Press Release
A Florida attorney was sentenced to 60 months in prison followed by two years of supervised release for his role in a multi-million dollar fraud scheme to obtain payments from extortion victims to settle sham copyright infringement lawsuits by lying to state and federal courts throughout the country, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Erica H. MacDonald of the District of Minnesota.
John L. Steele, 48, who pleaded guilty on March 6, 2017, was sentenced today before U.S. District Judge Joan N. Ericksen of the District of Minnesota who also ordered Steele to pay restitution in the amount of $1,541,527.37.
According to his guilty plea and documents filed in court, between 2011 and 2014, Steele and his co-defendant Paul R. Hansmeier, both practicing lawyers, executed a scheme to obtain millions of dollars by threatening copyright lawsuits against individuals who allegedly downloaded pornographic movies from file-sharing websites. Steele admitted in court during his plea that he and Hansmeier created a series of sham entities, which they surreptitiously controlled, to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies. Steele and Hansmeier then filed bogus copyright infringement lawsuits that concealed both their role in distributing the movies, and their personal stake in the outcome of the litigation. After filing the lawsuits, the defendants gained authority from the courts to subpoena internet service providers for identification information of the subscriber who controlled the IP address used to download the movie. With that information, the defendants used extortionate tactics such as letters and phone calls to threaten victims with enormous financial penalties and public embarrassment unless they agreed to pay a $3,000 settlement fee.
According to the indictment, the plea agreement and other court documents, in November 2011, in order to distance themselves from the specious lawsuits and any potential fallout, Steele and Hansmeier created and used Prenda Law, among other law firms, to pursue their fraudulent lawsuits. Steele acknowledged at his plea hearing that he and Hansmeier exerted de facto control over Prenda Law throughout the scheme, but recruited a now-deceased Illinois attorney to pretend to own and control the law firm.
In October 2012, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. To facilitate their phony “hacking” lawsuits, the defendants recruited individuals who had been caught downloading pornography from a file-sharing website, to act as ruse “defendants.” These ruse defendants agreed to be sued and permit Steele and Hansmeier to conduct early discovery against their supposed “co-conspirators” in exchange for Steele and Hansmeier waiving their settlement fees. During his plea hearing, Steele admitted that the allegations of “hacking” in these complaints were made up.
In total, Steele and Hansmeier obtained approximately $3 million from the fraudulent copyright lawsuits.
This case was the result of an investigation conducted by the FBI and IRS-Criminal Investigations.
Senior Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Benjamin F. Langner and David J. MacLaughlin of the District of Minnesota prosecuted the case.
Florida Attorney Sentenced to 60 Months in Prison for Multi-Million Dollar Pornography Film Copyright Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JOHN L. STEELE, 48, to 60 months in prison for his role in a multi-million dollar fraud scheme to obtain payments from extortion victims to settle sham copyright infringement lawsuits by lying to state and federal courts throughout the country. STEELE, who pleaded guilty on March 6, 2017, was sentenced earlier today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, between 2011 and 2014, STEELE and his co-defendant PAUL R. HANSMEIER, both practicing lawyers, executed a scheme to obtain millions of dollars by threatening copyright lawsuits against individuals who allegedly downloaded pornographic movies from file-sharing websites. STEELE admitted in court during his plea that he and HANSMEIER created a series of sham entities, which they surreptitiously controlled, to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies. STEELE and HANSMEIER then filed bogus copyright infringement lawsuits that concealed both their role in distributing the movies, and their personal stake in the outcome of the litigation. After filing the lawsuits, the defendants gained authority from the courts to subpoena internet service providers (“ISPs”) for identification information of the subscriber who controlled the IP address used to download the movie. With that information, the defendants used extortionate tactics such as letters and phone calls to threaten victims with enormous financial penalties and public embarrassment unless they agreed to pay a $3,000 settlement fee.
According to the indictment, the plea agreement, and other court documents, in November 2011, in order to distance themselves from the specious lawsuits and any potential fallout, STEELE and HANSMEIER created and used Prenda Law, among other law firms, to pursue their fraudulent lawsuits. STEELE acknowledged at his plea hearing that he and HANSMEIER exerted de facto control over Prenda Law throughout the scheme, but recruited a now-deceased Illinois attorney to pretend to own and control the law firm.
In October 2012, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. To facilitate their phony “hacking” lawsuits, the defendants recruited individuals who had been caught downloading pornography from a file-sharing website, to act as ruse “defendants.” These ruse defendants agreed to be sued and permit STEELE and HANSMEIER to conduct early discovery against their supposed “co-conspirators” in exchange for STEELE and HANSMEIER waiving their settlement fees. During his plea hearing, STEELE admitted that the allegations of “hacking” in these complaints were made up.
In total, STEELE and HANSMEIER obtained approximately $3 million from the fraudulent copyright lawsuits.
This case was the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys Benjamin F. Langner and David J. MacLaughlin of the District of Minnesota, and Senior Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section, prosecuted the case.
Defendant Information:
JOHN L. STEELE, 48
Unknown, Fla.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- 60 months in prison
- Two years of supervised release
- Restitution in the amount of $1,541,527.37
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Indictment Charges 16 in Violent Baltimore Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging 16 individuals in a violent drug distribution conspiracy operating in the Edmondson Village neighborhood in southwest Baltimore. The indictment was returned on June 20, 2019 and unsealed on July 3, 2019. Fourteen defendants have been arrested and of those, 12 have been ordered to be detained pending trial, including Justin Antoine, who had his detention hearing yesterday. The following defendants, all from Baltimore, are charged in the indictment:
Justin Antoine, a/k/a Justo, age 23; Rodney Bass, a/k/a Boo, age 57; Corey Bell, a/k/a Bell, age 38; Davon Boykin, age 33; Calvin Claxton, a/k/a Cal, age 39; Cortney Crawley, a/k/a C Murda, age 25; Eryica Davis, a/k/a Miss Cookie, age 45; Cedric Hite, a/k/a Hector, age 68; William Jackson, age 56; Raekwon Jones, a/k/a Kwon, age 20; Ronald Jones, age 51; Shelton Lewis, age 54; Adam Martin, a/k/a Fats, age 36; Rodney Matthews, a/k/a Rod, age 20; Neal Pinkney, age 52; and
Robert Williams, a/k/a Uncle Rob, age 62.The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Federal, state, and local law enforcement are working together to target members of violent drug gangs operating in Baltimore City,” said U.S. Attorney Robert K. Hur. “This indictment alleges that this drug trafficking organization brought danger to our community through the deadly combination of guns and drugs. Now they will face years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
The six-count superseding indictment alleges that from at least 2018 to June 20, 2019, the defendants were members and associates of the Adam Martin and Calvin Claxton drug trafficking organization, and conspired to distribute heroin, powder cocaine, and crack cocaine to drug users and redistributors in and around the Edmondson Village neighborhood of southwest Baltimore. According to the superseding indictment, members of the drug trafficking organization used residences in and around Baltimore to process, cut, package, and prepare the drugs for distribution. The defendants allegedly changed cell phones frequently to prevent the interception of their communications by law enforcement, and possessed firearms in furtherance of their drug trafficking activities.
According to the superseding indictment, the members of the conspiracy used violence to retaliate against those seeking to rob or cheat the drug trafficking organization. The superseding indictment details several of these acts, including a shooting murder on May 5, 2018, a gunfight on October 16, 2018 in which an unarmed bystander was struck in the crossfire, and the planned robbery of an unlicensed taxi driver.
As detailed in the superseding indictment, during the course of the investigation law enforcement seized at least ten firearms, ammunition, drugs, and more than $20,000 in drug proceeds.
If convicted, the defendants each face a maximum sentence of life in prison for the conspiracy. Justin Antoine, Eryica Davis, and Shelton Lewis also face a maximum of life in prison for possession of a firearm in relation to a drug trafficking crime. Antoine also faces a maximum of 40 years in prison for possession with intent to distribute heroin and cocaine; Lewis faces a maximum of life in prison for being a felon in possession of a firearm; and Robert Williams faces a maximum of three years in prison for selling and offering to sell drug paraphernalia. Law enforcement are still seeking Davon Boykin and Cedric Hite.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI, the ATF, and the Baltimore Police Department for their work in the investigation and thanked the Anne Arundel County Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Michael Goldsticker, who are prosecuting the case.
# # #
El Reno Man Sentenced to 48 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Homer Lee Basquez, age 38, of El Reno, Oklahoma, was sentenced to 48 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation Safe Trails Task Force.
The Indictment alleges that in November, 2018, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a firearm which had been shipped and transported in interstate and foreign commerce.
“The defendant, a convicted felon, possessed firearms unlawful for him to possess. Enforcing federal firearms laws is an effective way the Department of Justice can assist state, local, and tribal law enforcement agencies combat violent crime,” said United States Attorney Brian J. Kuester. “The FBI Safe Trails Task Force and member agencies are making a difference in the communities they serve in the Eastern District. This investigation and prosecution is a result of their work.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.Eagle Butte Woman Sentenced for Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 17, 2019, by U.S. District Judge Roberto A. Lange.
Marilyn Ducheneaux, age 22, was sentenced to 57 months in federal prison, 5 years of supervised release, a $500 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ducheneaux was indicted by a federal grand jury on October 16, 2018. She pled guilty on April 1, 2019.
The conviction stemmed from conduct that occurred beginning at a time unknown, but no later than on January 1, 2016, and continuing to October 16, 2018, in South Dakota, when Ducheneaux knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Ducheneaux was immediately turned over to the custody of the U.S. Marshals Service.