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5 July 2019
Homestead Man Pleads Guilty to Possessing Multiple DrugsRead the Press Release
PITTSBURGH -A former resident of Homestead, Pennsylvania, pleaded guilty in federal court to a violation of federal narcotics laws, United States Attorney Scott W. Brady announced today.
Arrmon Davon Hagans, 38, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on March 23, 2018, police executed a search warrant at Hagans’ residence in Homestead, Pennsylvania. There they located quantities of fentanyl and the fentanyl analogue para-fluoroisobutyryl fentanyl, as well as a separate mixture that contained heroin, fentanyl and cocaine. Law enforcement officers also located over $3,700 in cash and a box of ammunition.
Judge Fischer scheduled sentencing for Thursday, November 21, 2019 at 9 a.m. Because the defendant has been previously convicted of another felony drug offense, the law provides for a total sentence of up to 30 years in prison, a fine of not more than $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
The defendant remains in jail pending the sentencing hearing.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the conviction in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, Stowe Township Police Department, McKees Rocks Police Department, and Pennsylvania Attorney General’s Office.
Fort Thompson Man Sentenced for Possession of a Stolen FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Possession of a Stolen Firearm was sentenced on July 1, 2019, by U.S. District Judge Roberto A. Lange.
Jacob Hawk Wing, age 25, was sentenced to 26 months in federal prison, followed by 3 years of supervised release, restitution in the amount of $190, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hawk Wing was indicted by a federal grand jury on September 11, 2018. He pled guilty on April 3, 2019.
The conviction stemmed from an incident on July 29, 2018, when law enforcement had heard gun shots and located Hawk Wing and Craig Ross. Hawk Wing fled the scene, but was later apprehended and ultimately admitted to stealing a rifle that law enforcement had found while searching for Hawk Wing. Based on his role in the offense, Ross plead guilty to being a felon in possession of a firearm and was sentenced on February 19, 2019, to 26 months in federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Hawk Wing was immediately turned over to the custody of the U.S. Marshals Service.
Eric "Buterico" Lloyd Captured in PhiladelphiaRead the Press Release
WILMINGTON, Del. – Eric Lloyd was captured just before midnight on July 3, 2019 by the United States Marshals Service (“USMS”) Fugitive Taskforce and the Federal Bureau of Investigation (“FBI”), in Philadelphia, Pennsylvania. Lloyd was convicted of racketeering, money laundering, and related charges after a trial in New Castle County Superior Court in June of 2019. Lloyd was released on bail during the trial. He became a fugitive after he fled while the jury was deliberating and a warrant was issued for his arrest after the jury found him guilty.
Lloyd’s apprehension was the result of a collaborative effort between the USMS and FBI. The USMS was also assisted by the United States Attorney’s Office and the Delaware Department of Justice. The USMS Fugitive Taskforce is staffed by a number of local agencies, including the Wilmington Police Department. Lloyd is expected to appear in Federal Court on Friday, July 5, 2019, for an initial appearance related to a violation of his federal supervised release. Afterwards, he will likely be turned over to state custody to be sentenced for his latest convictions.
Michael McGowan, U.S. Marshal for the District of Delaware, stated, “This arrest is another great example of the collaborative efforts of our federal, state and local law enforcement partners. Investigators worked tirelessly to ensure jurisdictional lines did not impede the capture of this dangerous fugitive.”
U.S. Attorney Weiss stated, “The USMS and the FBI should be commended for the capture of Mr. Lloyd. The Marshals work relentlessly to apprehend priority fugitives for every law enforcement agency in Delaware, and this is the latest example of their dedication to bringing brazen criminals like Mr. Lloyd to justice.”
Columbus Men Charged with Internet Cafe Robberies Including One That Resulted in Deaths of OwnersRead the Press Release
COLUMBUS, Ohio – A federal criminal complaint unsealed today charges Dezhan Townsend, 20, with using a firearm during a crime of violence resulting in death in connection with the robbery of a Columbus internet café in which a husband and wife were murdered. A second man, Desjuan Harris, 24, is charged with robbery and brandishing a firearm during a crime of violence in connection with two other internet café robberies.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, acting Columbus Police Chief Thomas Quinlan, and Franklin County Prosecuting Attorney Ron O’Brien announced the charges unsealed today after the defendants appeared in federal court.
According to the complaint, two suspects wearing hoodies entered Players Paradise at 3439 E. Broad Street in Columbus at 4:06 a.m. on January 20, 2019. The two positioned themselves near the office door. One suspect sat at a game as if he was playing it. When a female employee attempted to enter the office, the suspects attacked. The suspects were armed with handguns and immediately confronted an armed security guard. A suspect shot both the male security guard and the female employee, Joseph and Karen Arrington.
Townsend and Harris are charged with robbing Players Paradise on December 10, 2018 and another internet café, Planet Jackpot, at 1245 Alum Creek Drive on January 7, 2019.
Columbus SWAT officers arrested Townsend and Harris on Wednesday, July 3. The charges were unsealed today after the defendants appeared before U.S. Magistrate Judge Chelsey M. Vascura, who ordered them held without bond.
“We will present the evidence gathered so far to a federal grand jury for a possible indictment against the defendants,” Glassman said. “If convicted, each man faces a possible life sentence for their crimes. The investigation is continuing.”
The criminal complaint charges Townsend with three counts of interfering with interstate commerce by robbery (Hobbs Act), three counts of brandishing a firearm during a crime of violence, and one count of use of a firearm during the commission of a crime of violence. Harris is charged with two counts of violating the Hobbs Act and one count of brandishing a firearm during a crime of violence.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Columbus Police, as well as Assistant United States Attorneys David M. DeVillers and Kevin Kelley, and Special Assistant U.S. Attorney James Lowe with the Franklin County Prosecuting Attorney’s Office, who are representing the United States.
A complaint merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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California Man Sentenced for Illegally Possessing Firearms Stolen from the Rooster Sporting Good StoreRead the Press Release
United States Attorney Ron Parsons announced that an Elk Grove, California, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Travis Jones, age 32, was sentenced on June 28, 2019, to 36 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Jones, a previously convicted felon who is prohibited from possessing firearms, trading methamphetamine for two Kahr semi-automatic pistols, which had been stolen from The Rooster in Rapid City, South Dakota, in August 2018.
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.
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.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Department of Criminal Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service.
Brothers from Youngstown indicted for their roles in conspiracy to obtain cocaine from Puerto Rico and sell the drugs in the Youngstown areaRead the Press Release
Two people from Youngstown were indicted in federal court for their alleged roles in a conspiracy to obtain large amounts of cocaine from Puerto Rico and sell the drugs in the Youngstown area.
Amaury Calderon Santiago, 27, and Felix Calderon Santiago, 29, were each indicted on one count of conspiracy to distribute cocaine.
Amaury Calderon Santiago is also charged with two counts of distribution of cocaine while Felix Santiago is charged with one count of attempted possession with the intent to distribute cocaine.
According to the four-count indictment, Felix Santiago received cocaine from Puerto Rico, which he then provided to Amaury Santiago, who in turn sold the cocaine in the Youngstown area. This took place between May and June 2019, according to the indictment.
The Santiagos used a home on Bennington Avenue in Youngstown to receive and store the cocaine, according to the indictment.
Felix Santiago received and opened a package on June 11 that originally contained more than 500 grams of cocaine. On the same day, Amaury Santiago possessed $5,840 in cash and two loaded firearms, according to the indictment.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by Drug Enforcement Administration and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Yasmine Makridis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
3 July 2019
West Hollywood Doctor Taken into Custody in Health Care Fraud Case Involving Human Growth Hormone for Patients with HIVRead the Press Release
LOS ANGELES – A doctor who operates a medical clinic in West Hollywood where he specializes in treating HIV patients has been taken into custody pursuant to federal charges that allege he engaged in a long-running scheme to defraud health insurance companies in connection with the brand-name human growth hormone Serostim.
James T. Lee, 71, of West Hollywood, was taken into custody on Tuesday afternoon after being escorted from Austria by federal law enforcement agents.
After a federal grand jury returned a 10-count indictment on June 6, Lee was arrested in Vienna at the request of the United States. Lee subsequently waived extradition and agreed to return to the United States.
The indictment against Lee charges him with one count of conspiracy to commit health care fraud, six counts of health care fraud, one count of making false statements relating to health care matters, and two counts of witness tampering.
The indictment was unsealed this morning and Lee’s arraignment on the charges is scheduled for this afternoon in United States District Court in downtown Los Angeles.
Lee allegedly engaged in a scheme to divert Serostim – an injectable human growth hormone that is FDA-approved for HIV-positive patients – from legitimate HIV patients to other people who purchased the drug for its purported anti-aging properties. The Food and Drug Administration has approved Serostim for use only by HIV patients with wasting or cachexia who are also receiving antiretroviral therapy.
According to the indictment, from at least May 2011 until February 2019, Lee wrote prescriptions for Serostim to HIV patients, who obtained the drugs and used their Medicare Part D benefits to pay for the drugs. Lee then then illegally purchased the Sersotim back from patients, so that he could re-sell the Serostim. Lee allegedly re-sold the Serostim for a significant profit to other patients who were not HIV-positive, and who used the human growth hormone to build muscle and for other cosmetic purposes.
The indictment alleges a second part of the scheme in which Lee allegedly submitted claims to health insurance companies for Serostim injections, claims that were fraudulent because Lee did not actually provide the Serostim injections to the patients at his office. According to the indictment, many of the patients did not receive the full amount of Serostim that Lee billed to the insurance companies, or they received Serostim that Lee had purchased from other patients.
Lee allegedly twice engaged in witness tampering during meetings with a patient that were recorded without Lee’s knowledge. During those meetings, Lee encouraged the patient to provide false information to federal agents who were investigating the case. Lee coached the patient to lie about the Serostim scheme, including by falsely stating that kickback payments from Lee were merely overpayments from the insurance companies, according to the indictment.
During the course of the conspiracy, Lee and his co-conspirators submitted at least $14.2 million in claims to the insurance companies for Serostim injections, which resulted in payments of approximately $5.9 million, according to the indictment. The scheme allegedly defrauded Health Net, which is a private health benefit plan, and the Government Employees Hospital Association, which is a health benefit plan that provides health insurance coverage to certain former United States government employees.
Medicare paid at least $1.4 million based on Serostim prescriptions that were issued by Lee and filled by patients who sold at least some of the drugs to Lee.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
Each of the health care fraud counts charged in the indictment carries a statutory maximum sentence of 10 years in prison. The false statement counts carries a statutory maximum sentence of five years in prison. The witness tampering counts each carry a statutory maximum sentence of 20 years in prison. The indictment also contains criminal forfeiture allegations that seek the forfeiture of the ill-gotten gains derived from the criminal offenses.
This case is being investigated by the Federal Bureau of Investigation; the Food and Drug Administration, Office of Criminal Investigations; and the Office of Personnel Management, Office of Inspector General.
The case is being prosecuted by Assistant United States Attorney Alexander F. Porter of the Major Frauds Section.
Warm Springs Man Sentenced to 25 Years in Federal Prison for the Repeated Sexual Abuse of a ChildRead the Press Release
PORTLAND, Ore.—Robert Glenn Warner, 36, a member of the Confederated Tribes of the Warm Springs Indian Reservation, was sentenced today to 300 months in federal prison and 10 years’ supervised release for the repeated sexual abuse and rape of an 11-year-old child.
“This young victim demonstrated tremendous courage in reporting Warner’s repeated abuse and fully participating in the judicial process. Her brave actions put in motion our ability to stop this heinous crime and prosecute the defendant. The U.S. Attorney’s Office remains fiercely committed to holding child predators accountable and safeguarding the rights and dignity of victims,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Warner used his position of power to perpetrate multiple, violent sexual assaults on a victim who was vulnerable and accessible. We are thankful to the victim, who has shown great strength, and to our partners at the Warm Springs Tribal Police who help end the abuse of this child,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
According to court documents, in July 2016, the victim, a minor member of the Warm Springs Tribe, told a friend’s mother that they had been repeatedly sexually abused and raped by Warner, a person known to the victim. Most recently, Warner raped the victim in a trailer parked in a wood cutting lot on the outskirts of the Warm Springs Reservation. The victim reported the abuse to the Warm Springs Tribal Police Department and Warner was arrested the same day.
On July 16, 2018, Warner pleaded guilty to one count of abusive sexual contact with a minor before U.S. District Court Judge Michael H. Simon.
This case was investigated by the Warm Springs Tribal Police Department and the FBI. It was prosecuted by Natalie Wight, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
On March 3, 1994, the FBI initiated “Operation Safe Trails” with the Navajo Department of Law Enforcement in Flagstaff, Arizona. The operation, which would later evolve into the Safe Trails Task Force (STTF) Program, unites FBI and other federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTFs allow participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs, and gaming violations.
U.S. Attorney’s Office Concludes Investigation into Fatal Shooting of Armed Man Near Northeast Washington Recreation CenterRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the actions of an off-duty Metropolitan Police Department (MPD) Officer, who fatally shot Mr. D’Quan Young, who was armed with a firearm that he fired at the officer, on May 9, 2018, in Northeast Washington. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officer.
According to the evidence, on May 9, 2018, at approximately 6:45 p.m., an MPD officer drove his personal vehicle to the 2300 block of 15th Street, Northeast, near the Brentwood Recreation Center, to attend a personal gathering at a residence in the area. The officer was off duty and dressed in civilian clothing, but he possessed his MPD issued service weapon in a holster located underneath a jacket. Because the officer was off duty, he was not wearing his body-worn camera. The evidence indicates that, while the officer walked up and down the block looking for the home of his host and looking at a cell phone, Young walked from the other side of the street, confronted the officer, and asked the officer who he was calling. The confrontation escalated into a verbal altercation and Young pulled out a firearm and pointed it at the officer. The officer removed his service weapon from his holster and pointed it back at Young while commanding him to drop his weapon. Young fired at the officer, who responded by shooting Young two times in the torso and three times in the leg. Young ran into the street and fell while the officer fired additional shots. Young dropped his firearm on the ground. A Special Police Officer at the Brentwood Recreation Center called 911. Young was pronounced dead at the scene of the shooting. The investigation uncovered no evidence that the officer and Young had ever met each other before this encounter.
The U.S. Attorney’s Office and MPD conducted a comprehensive review of the incident, including interviews of civilian and law enforcement witnesses; video footage and audio transmissions; autopsy, toxicology, and Department of Forensic Sciences’ reports; and physical evidence collected on the scene, to include an operable firearm and a loaded magazine from the street near where Young fell to the ground after being shot, along with a cartridge casing near where Young was standing before he was shot.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the off-duty officer acted under color of law or used excessive force under the circumstances, and therefore that civil rights charges cannot be filed. Federal prosecutors have also found insufficient evidence to prove beyond a reasonable doubt that the off-duty officer did not act in self-defense, and therefore that District of Columbia homicide charges cannot be filed.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must be able to prove that the involved officer acted under color of law—meaning that he exercised power possessed by virtue of his authority as an officer under the law—and willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
Two Mexican Nationals Involved in Drug Ring Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAFAEL LOPEZ-MACIAS, 46, and his brother, JAIME LOPEZ, 37, both citizens of Mexico involved in trafficking narcotics, were sentenced today in Bridgeport federal court. U.S. District Judge Victor A. Bolden sentenced Lopez-Macias to 120 months of imprisonment and Lopez to 60 months of imprisonment.
According to court documents and statements made in court, Lopez-Macias, Lopez and others conspired to traffic large quantities of narcotics, including cocaine and methamphetamine.
In June 1998, Lopez-Macias was convicted in California state court of a cocaine trafficking offense. In February 2001, he was deported to Mexico. Lopez-Macias illegally reentered the U.S. and, in March 2009, was arrested in Connecticut for a forgery offense. In November 2009, he was again deported to Mexico.
Lopez-Macias again illegally reentered the U.S. and, between March and June 2018, he was intercepted on a court-authorized wiretap discussing the distribution of cocaine and methamphetamine.
On June 11, 2018, in New Rochelle, New York, Lopez-Macias and a co-conspirator sold a kilogram of cocaine and a sample of methamphetamine for $31,500 to an individual working with law enforcement.
On June 26, 2018, Lopez-Macias traveled from Norwalk to New Rochelle, picked up a kilogram of methamphetamine from his co-conspirator, and began driving back to Norwalk with the narcotics. While en route to Norwalk, Lopez-Macias was stopped by law enforcement and arrested for an immigration violation. Officers searched the vehicle and seized the kilogram of methamphetamine.
As to Lopez, he was intercepted on a court-authorized wiretap discussing the distribution of cocaine and, in May 2018, he was involved in the purchase of a kilogram of cocaine for approximately $28,000 from a source of supply in New Rochelle, New York.
Lopez-Macias has been detained since his arrest on June 26, 2018. On March 27, 2019, he pleaded guilty to one count of possession with intent to distribute, and distribution of, 500 grams or more of methamphetamine, and one count of reentry of removed alien.
Lopez has been detained since his arrest on October 11, 2018. On April 1, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.
Both defendants face immigration proceedings when they complete their prison terms.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Connecticut State Police, and the New Rochelle, Norwalk and Stamford Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Lauren C. Clark.
Two D.C. Felons Convicted After Trial of Committing Two Armed Robberies in Prince George’s CountyRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Ronnell Francis Lewis, a/k/a Punkin, age 45, and William David Hill, a/k/a Old Man and Tank, age 62, both of Washington, D.C., for conspiring to commit a commercial robbery; for using, carrying, brandishing, and discharging a weapon during and in relation to a crime of violence; for being felons in possession of firearms; and for interstate transportation of stolen vehicles, in connection with two armed robberies committed by the defendants in November 2016. Lewis was also convicted of witness tampering.
The convictions were announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the evidence presented at the seven-day trial, Lewis, Hill and a co-conspirator robbed an auto repair business in Clinton, Maryland, on November 22, 2016. Specifically, the evidence proved that the robbers entered the business brandishing firearms and ordered two employees to get on the ground. The defendants took money from the victims’ pockets and then ordered them into the front office. One victim was then bound with zip ties and gagged with duct tape. The second victim fought, was shot by the robbers, and ultimately paralyzed. The robbers then fled in a vehicle they had stolen earlier that day.
As detailed at trial, on November 26, 2016, the defendants robbed a barbershop in Seat Pleasant, Maryland. According to the trial testimony, the two defendants entered the business, ordered everyone to the ground and then robbed them. During the robbery, the defendants threatened the victims with violence. According to the evidence, the robbers put the cash in a dark single strap duffle bag and fled in a stolen minivan. Police saw the minivan at a traffic light and attempted to stop the vehicle but the driver refused to stop, fleeing into Washington, DC. Three individuals exited the vehicle and attempted to run away. The driver and Lewis were captured. The third person, later identified as Hill, escaped but was apprehended later.
Police searched Lewis after his arrest and recovered his cell phone. From the floor of the minivan, Metropolitan Police officers recovered two loaded 9 millimeter handguns, one with an obliterated serial number.
Further, the evidence proved that after the robberies, and while he was detained, Lewis called several people from jail and asked them to visit the victims of the barbershop robbery to persuade them not to cooperate in the investigation, including not testifying before the federal grand jury.
Lewis and Hill each face a maximum sentence of life in prison. U.S. District Judge George J. Hazel has scheduled sentencing for October 21, 2019 at 10 a.m. and 12:00 p.m. They remain detained pending sentencing.
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 for its work in the investigation and thanked the Prince Georges County Police Department, the Seat Pleasant Police Department, and the Metropolitan Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Dwight J. Draughon, who are prosecuting the case.
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Two Baltimore County Men Indicted in Federal Court for Allegedly Distributing Fentanyl, Heroin, and Cocaine in MarylandRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Deandre Laquan Jones, a/k/a “Cuz,” age 26, of Towson, Maryland, and Tyrell Daront Curry, a/k/a “Mike,” age 28, of Baltimore, on the federal charges of conspiracy to distribute and possess with intent to distribute controlled substances, distribution of controlled substances, possession with intent to distribute drugs near a school, maintaining a drug-involved premises, as well as related firearms charges. The indictment was returned on June 25, 2019, and was unsealed at their initial appearances.
The indictment 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 (ICE) Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
U.S. Attorney Robert K. Hur stated, “Guns and drugs take far too many lives in our communities. All too often, guns and drugs go hand in hand—and both are killers. We will continue to work with our law enforcement partners to identify and disrupt drug trafficking organizations, especially those who use guns and sell drugs near our schools. Federal, state, and local law enforcement are united in our commitment to get guns, drugs, and violent criminals off our streets and to reduce violent crime in our neighborhoods.”
According to the indictment, from December 2018 to February 2019, Jones and Curry distributed fentanyl, heroin, and cocaine. On February 22, 2019, Jones allegedly possessed fentanyl, heroin, and cocaine which he intended to distribute within 1,000 feet of a public elementary school. The indictment alleges that during the time of the conspiracy Jones used an apartment in Parkville, Maryland, to manufacture and distribute fentanyl, heroin, crack cocaine, and powder cocaine. Finally, as alleged in the indictment, Jones illegally possessed firearms and ammunition in furtherance of drug trafficking.
If convicted, Jones faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison for the conspiracy and for possession with intent to distribute fentanyl, heroin, and cocaine; a mandatory minimum of five years and up to 80 years in prison for possession with intent to distribute drugs within 1,000 feet of a school; a maximum of 20 years in prison for maintaining a drug-involved premises and for distribution of drugs; a maximum of 10 years in prison for being a felon in possession of firearms and ammunition; and a mandatory minimum of five years and a maximum sentence of life in prison for possession of firearms in furtherance of drug trafficking.
If convicted, Curry faces a mandatory minimum sentence of five years and a maximum sentence of 40 years in prison for the conspiracy, and a maximum of 20 years in prison for both possession with intent to distribute heroin, and for distribution of cocaine, heroin, and fentanyl.
At their initial appearance in U.S. District Court in Baltimore yesterday, U.S. Magistrate Judge Stephanie A. Gallagher ordered that Jones and Curry be detained pending a detention hearing scheduled for July 5, 2019 at 2:00 p.m, and July 8, 2019 at 2:30 p.m., respectively.
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.
United States Attorney Robert K. Hur commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christopher J. Romano, who are prosecuting the case.
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Tahlequah Woman Pleads Guilty to Unlawful Use of Communication FacilityRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jasmine Lea Meikle, age 38, of Tahlequah, Oklahoma, entered a guilty plea to Unlawful Use Of A Communication Facility in violation of Title 21, United States Code, Section 843(b), punishable by not more than 4 years imprisonment, a fine up to $250,000.00, or both.
The Information alleges that on or about September 24, 2018, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally use any communication facility, a cellular telephone, in facilitating the commission of any act or acts constituting a felony under Title 21, United States Code, Section 841(a)(1), that is Possession with Intent to Distribute Methamphetamine.
The charges arose from an investigation by the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
Tahlequah Woman Pleads Guilty to ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Heather Leann Chuculate, age 24, of Tahlequah, Oklahoma, entered a guilty plea to Conspiracy, in violation of Title 18, United States Code, Section 371, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Information alleges that from in or about September 2017, until in or about July 2018, in the Eastern District of Oklahoma and elsewhere, the defendant did knowingly and intentionally conspire, confederate and agree with others both known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 841(a)(1), namely, Possession with Intent to Distribute and Distribution of Methamphetamine.
The charges arose from an investigation by the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
St. Louis Man Pleads Guilty to Robbing Florissant Subway at GunpointRead the Press Release
St. Louis - Alonzo Lamar Payne, 37, of St. Louis, entered guilty pleas today to one count of Interference With Interstate Commerce by Means of Robbery and one count of Brandishing a Firearm in Furtherance of a Crime of Violence before United States District Judge Rodney W. Sippel.
According to court documents, on December 21, 2018, Payne entered a Subway restaurant in Grandview Plaza in the City of Florissant with his face partially concealed. After asking employees to direct him to the restroom, Payne instead entered an “Employees Only” area and demanded cash while brandishing a handgun.
Following the robbery, Payne fled from the Subway with an undetermined amount of money. Employees called 911. Florissant Police responded. Investigation into the crime quickly identified the robber as Payne who was the boyfriend of a former Subway employee.
On December 27, 2018, Florissant Police observed Payne leaving his girlfriend’s residence. He got into a car and began to drive away. Florissant officers stopped the vehicle and ordered Payne to show his hands. After refusing multiple orders, Payne was removed from the vehicle and discovered to be sitting on a handgun. Payne, who is on parole to the State of Missouri for a prior Robbery conviction, is prohibited from possessing a firearm. Payne subsequently confessed to robbing the Subway on December 21, 2018. Payne also admitted that he returned to the same Subway two days later and burglarized it.
Payne is scheduled to be sentenced on October 4th, 2019. He faces up to 20 years on the robbery charge and a mandatory minimum sentence of at least seven years on the firearm charge, which must be imposed consecutively to the robbery sentence.
United States Attorney Jeffrey B. Jensen praised the work of the Florissant Police Department, stating, “Alonzo Payne victimized two teenage-employees. The Florissant Police Department worked tirelessly to swiftly arrest Payne and prevent him from victimizing others in our community.” Florissant Police Chief Tim Fagan echoed Jensen’s sentiments, saying “We are proud of our Department’s work and appreciate the assistance of our Federal partners in addressing any dangerous, repeat offender who preys on the citizens of Florissant.”
This case was investigated by the Florissant Police Department.
South Texas Man Charged with Child Exploitation via Social Media AppsRead the Press Release
McALLEN, Texas — A 22-year-old Alton man has been indicted for coercion and enticement of a minor, announced U.S. Attorney Ryan K. Patrick.
Dan Eliud Moncada-Gonzalez was originally charged by criminal complaint June 11, 2019, as he arrived at a local spot to meet whom he thought was a 13-year-old female. Today, a federal grand jury returned the indictment charging him with one count of coercion and enticement of a minor. He is expected to appear for his arraignment before U.S. Magistrate Judge Ormsby July 11, 2019.
The complaint alleges that beginning June 11, 2019, Moncada enticed an individual he believed to be a 13-year-old female on a social media app. Moncada allegedly sent multiple unsolicited sexually explicit images of himself, and others, and requested to meet in person at an agreed upon location. The charges allege that in those conversations, he described sexual acts he desired to perform.
Moncada was taken into custody as he arrived at a local park, allegedly expecting to engage in sexual activity with a minor.
If convicted, Moncada faces a minimum of 10 years in federal prison.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation as part of the Rio Grande Valley Child Exploitation Investigations Task Force.
Assistant U.S. Attorneys Michael Mitchell and Claire Nguyen are prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.South Florida Resident Sentenced to 30 Years for $100 Million International Fraud Scheme that Led to the Collapse of One of Puerto Rico’s Largest BanksRead the Press Release
A Key Biscayne, Florida, resident and the former CEO and Chairman of a now-bankrupt multinational pharmaceutical company was sentenced to 30 years in prison followed by five years of supervised release yesterday for his role his role in a $100 million scheme to defraud Westernbank of Puerto Rico (Westernbank). The losses triggered a series of events leading to Westernbank’s insolvency and ultimate collapse.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Special Agent in Charge Michael J. DePalma of IRS Criminal Investigation (IRS-CI) for Miami and Puerto Rico, Special Agent in Charge Iván J. Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office made the announcement.
Jack Kachkar, 56, was sentenced by U.S. District Judge Donald L. Graham of the Southern District of Florida, who also presided over the trial in this case. Judge Graham also ordered the defendant to pay $103,490,005 in restitution to the FDIC, as receiver for Westernbank. Kachkar was convicted on Feb. 4, 2019, after a three-week trial, of eight counts of wire fraud affecting a financial institution.
According to evidence presented at trial, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., a publicly traded multinational pharmaceutical manufacturing company. Beginning in early 2005, Kachkar caused Westernbank to enter into a series of loan agreements in exchange for a security interest in the assets of Inyx and its subsidiaries. Under the loan agreements, Westernbank agreed to advance money based on Inyx’s customer invoices from “actual and bona fide” sales to Inyx customers, the evidence showed.
The trial evidence showed that Kachkar orchestrated a scheme to defraud Westernbank by causing numerous Inyx employees to make tens of millions of dollars worth of fake customer invoices purportedly payable by customers in the United Kingdom, Sweden and elsewhere. Kachkar caused these invoices to be presented to Westernbank as valid invoices. Kachkar made false and fraudulent representations to Westernbank executives about purported and imminent repayments from lenders in the United Kingdom, Norway, Libya and elsewhere in order to lull Westernbank into continuing to lend money to Inyx, the evidence showed. In fact, these lenders had not agreed to repay Westernbank’s loan. Kachkar made false and fraudulent representations to Westernbank executives that he had additional collateral, including purported mines in Mexico and Canada worth hundreds of millions of dollars, to induce Westernbank to lend additional funds, the evidence showed. In fact, this additional collateral was worth barely a fraction of that represented by Kachkar.
During the course of the scheme, Kachkar caused Westernbank to lend approximately $142 million, primarily based on false and fraudulent customer invoices. The evidence showed that the defendant diverted tens of millions of dollars for his own personal benefit, including for the purchase of, among other things, a private jet, luxury homes in Key Biscayne and Brickell, Miami, luxury cars, luxury hotel stays, and extravagant jewelry and clothing expenditures.
In or around June 2007, Westernbank declared the loan in default and ultimately suffered losses exceeding $100 million on the Inyx loans. According to trial evidence, these losses later triggered a series of events leading to Westernbank’s insolvency and ultimate collapse. At the time of its collapse, Westernbank had approximately 1,500 employees and was one of the largest banks in Puerto Rico.
This case was investigated by the FDIC-OIG, IRS-CI, HSI and FBI. The Department of Justice’s Office of International Affairs provided significant support in the investigation. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger of the Southern District of Florida and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section. The Department acknowledges and appreciates the substantial assistance of the Royal Canadian Mounted Police and the U.K. Metropolitan Police.
South Florida Resident Sentenced to 30 Years for $100 Million International Fraud Scheme That Led to the Collapse of One of Puerto Rico’s Largest BanksRead the Press Release
A Key Biscayne, Florida, resident and the former CEO and Chairman of a now-bankrupt multinational pharmaceutical company was sentenced to 30 years in prison followed by five years of supervised release yesterday for his role his role in a $100 million scheme to defraud Westernbank of Puerto Rico (Westernbank). The losses triggered a series of events leading to Westernbank’s insolvency and ultimate collapse.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Special Agent in Charge Michael J. DePalma of IRS Criminal Investigation (IRS-CI) for Miami and Puerto Rico, Special Agent in Charge Iván J. Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office made the announcement.
Jack Kachkar, 56, was sentenced by U.S. District Judge Donald L. Graham of the Southern District of Florida, who also presided over the trial in this case. Judge Graham also ordered the defendant to pay $103,490,005 in restitution to the FDIC, as receiver for Westernbank. Kachkar was convicted on Feb. 4, 2019, after a three-week trial, of eight counts of wire fraud affecting a financial institution.
According to evidence presented at trial, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., a publicly traded multinational pharmaceutical manufacturing company. Beginning in early 2005, Kachkar caused Westernbank to enter into a series of loan agreements in exchange for a security interest in the assets of Inyx and its subsidiaries. Under the loan agreements, Westernbank agreed to advance money based on Inyx’s customer invoices from “actual and bona fide” sales to Inyx customers, the evidence showed.
The trial evidence showed that Kachkar orchestrated a scheme to defraud Westernbank by causing numerous Inyx employees to make tens of millions of dollars worth of fake customer invoices purportedly payable by customers in the United Kingdom, Sweden and elsewhere. Kachkar caused these invoices to be presented to Westernbank as valid invoices. Kachkar made false and fraudulent representations to Westernbank executives about purported and imminent repayments from lenders in the United Kingdom, Norway, Libya and elsewhere in order to lull Westernbank into continuing to lend money to Inyx, the evidence showed. In fact, these lenders had not agreed to repay Westernbank’s loan. Kachkar made false and fraudulent representations to Westernbank executives that he had additional collateral, including purported mines in Mexico and Canada worth hundreds of millions of dollars, to induce Westernbank to lend additional funds, the evidence showed. In fact, this additional collateral was worth barely a fraction of that represented by Kachkar.
During the course of the scheme, Kachkar caused Westernbank to lend approximately $142 million, primarily based on false and fraudulent customer invoices. The evidence showed that the defendant diverted tens of millions of dollars for his own personal benefit, including for the purchase of, among other things, a private jet, luxury homes in Key Biscayne and Brickell, Miami, luxury cars, luxury hotel stays, and extravagant jewelry and clothing expenditures.
In or around June 2007, Westernbank declared the loan in default and ultimately suffered losses exceeding $100 million on the Inyx loans. According to trial evidence, these losses later triggered a series of events leading to Westernbank’s insolvency and ultimate collapse. At the time of its collapse, Westernbank had approximately 1,500 employees and was one of the largest banks in Puerto Rico.
This case was investigated by the FDIC-OIG, IRS-CI, HSI and FBI. The Department of Justice’s Office of International Affairs provided significant support in the investigation. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger of the Southern District of Florida and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section. The Department acknowledges and appreciates the substantial assistance of the Royal Canadian Mounted Police and the U.K. Metropolitan Police.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Silver Spring Man Sentenced to 75 Months in Federal Prison for Bank Fraud Conspiracy and Aggravated Identity Theft with Losses of Hundreds of Thousands of DollarsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Emmanuel Kusi Appiah, a/k/a Manny, age 47, of Silver Spring, Maryland, to 75 months in federal prison, followed by five years of supervised release, for conspiracy to commit bank fraud, four counts of bank fraud, and two counts of aggravated identity theft, in connection with a years-long bank fraud scheme that resulted in losses of hundreds of thousands of dollars. A federal jury convicted Appiah on March 12, 2019, after a five-day trial.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Chief Robert D. MacLean of the U.S. Park Police; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service.
According to the evidence presented at his trial, from June 2013 through March 2018, Appiah committed a bank fraud scheme that defrauded individuals and financial institution victims of several hundred thousand dollars.
Specifically, the trial evidence proved that Appiah conspired with others to open bank accounts at 10 different financial institutions using the stolen identities of at least five individual victims, and under the business names of five shell corporations, including Global Tax Services Incorporated, Merchandise Services Incorporated, Imperial Pipe Incorporated, SJ Metal Incorporated, and Morgan Incorporated. Appiah and his conspirators then used those fraudulent accounts to deposit stolen and altered business checks, convenience checks, and tax refunds. Witnesses testified that Appiah then withdrew the fraudulent proceeds in cash, transferred the proceeds to other fraudulent accounts, or laundered the proceeds through the purchase of money orders, which Appiah and others used for their personal benefit.
United States Attorney Robert K. Hur commended the U.S. Park Police and the U.S. Postal Inspection Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Burden H. Walker, who prosecuted the case.
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Sex Trafficker Sentenced to 40 Years in Federal PrisonRead the Press Release
INDIANAPOLIS –United States Attorney Josh J. Minkler announces the sentencing of convicted sex trafficker Elijah Vines, aka “Elijah Kilt Vines,” to 40 years in federal prison. Judge James R. Sweeney II also sentenced Vines to a lifetime of Supervised Release and ordered him to pay over $10,000 in restitution to the minor victim.
“Sex trafficking, particularly of children, simply cannot be tolerated. Our children should be able to grow up without being offered for sale by adults who seek to profit from their vulnerability and who place price tags on their innocence,” said Minkler. “A necessarily harsh sentence will keep this defendant behind the walls of a federal prison until at least 2053.”
In United States v. Elijah Vines, a jury returned verdicts against the Defendant on January 28, 2019. Jurors convicted Vines of sex trafficking of a minor, conspiracy to commit sex trafficking of a minor, interstate transportation of a minor, and interstate transportation in furtherance of racketeering.
Vines travelled to Ohio to transport a teenager, who had run away from foster care, back to Indiana so that he could sexually exploit her. Evidence at trial showed that Vines posted advertisements for this girl using his account on Backpage.com, a website frequently used for commercial sex, which was shut down by the Department of Justice in April of 2018.
Prosecutors presented evidence from Vines’ Facebook account in which he shared images of the minor child, bragging that the girl was ready to do what he said at a motel. The Government also presented the jurors with numerous jail calls in which Vines directed co-conspirators to traffic the girl until Vines was released from jail. In addition to the minor girl, evidence showed that Vines offered other women for sale through his Backpage and Facebook accounts, and he boasted that he had multiple women who sold themselves for him. At the time that Vines committed his crimes, he was on probation in Marion County, and he had prior convictions for Robbery. In addition to this case, Vines is awaiting trial for Possession of a Firearm by a Serious Violent Felon.
The case began in October of 2016 as an investigation by the IMPD Human Trafficking and Vice Unit, after the child disclosed information while being treated at Riley Hospital for Children. Months of investigation, including work by the FBI, the Indiana State Police, and the Marion County Prosecutor’s Office, revealed evidence in the form of social media postings, online advertisements, police reports, motel records, jail calls, cell phone evidence, and email records.
“This result is a testament to the power of a team: the concerted effort of law enforcement, victim services, medical professionals, and prosecutors to bring about a just result,” said Minkler. Every child in this community - no matter how vulnerable, how broken, or how isolated - should know that we stand ready to stand with you.”
“The victimization of any member of our community, and especially our city’s children, is unacceptable,” said Indianapolis Metropolitan Police Department Chief Bryan Roach. “The officers and detectives of the IMPD remain committed to holding accountable those who seek to prey on our most vulnerable residents. We will continue to work closely with our partners in law enforcement to achieve meaningful results.”
“Human trafficking takes many forms, often going hidden and unnoticed in our own community. With growing attention and public understanding of this crime, we hope that more individuals will recognize the red flags and report their suspicions to law enforcement,” Marion County Prosecutor Terry Curry stated. “We are proud to work with our public safety partners to investigate and ultimately bring victims out of those shadows, free to live a safe, healthy life.”
“Children in the foster care system are some of our most vulnerable population. As they seek stability, love, and a place to belong, we must assure these at-risk kids do not fall prey to adults with malicious intentions. These convictions should serve as a warning: if the victim is under 18, it’s not “pimping.” It’s trafficking, and it is a federal crime. We will not stop seeking justice for these victims.”
This case was prosecuted at trial by Assistant United States Attorneys Lawrence Hilton and Kristina Korobov and Victim-Witness Coordinator Stephanie Lloyd. It was handled in the Marion County Courts by Deputy Prosecutor Stephanie Edwards. IMPD was represented by Detectives Sheryl McGlinsey and Task Force Officer Gabriel Cuevas. FBI Special Agents Michelle Bartelson and Elizabeth Carlson, along with Victim Specialist Sarah Abdullah, worked this case. Indiana State Police Sergeant Jennifer Barnes presented the computer forensic evidence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.2
Second Tahlequah Woman Pleads Guilty to ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jimi Denise Day, age 67, of Tahlequah, Oklahoma, entered a guilty plea to Conspiracy, in violation of Title 18, United States Code, Section 371, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Information alleges that in or about January 2019, in the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally conspire, confederate and agree with others both known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 841(a)(1), namely, Possession with Intent to Distribute and Distribution of Methamphetamine.
The charges arose from an investigation by the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
Second Georgia Man Pleads Guilty to Check Cashing SchemeRead the Press Release
ALBANY, NEW YORK – Javonte J. Johnson, age 22, of Decatur, Georgia, pled guilty today to creating counterfeit checks and then cashing them at banks in Saratoga and Warren Counties.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.
Johnson pled guilty to one count of conspiring to commit bank fraud and one count of aggravated identity theft.
Johnson admitted that he and co-conspirators, including Alphonso L. Howard, Jr., defrauded financial institutions by intercepting and stealing checks sent through the U.S. Mail; using information from these legitimate checks to create counterfeit checks drawn on the same financial accounts as the stolen, legitimate checks; and then cashing and attempting to cash the counterfeit checks at financial institutions in Saratoga and Warren Counties. Johnson agreed that he caused $164,077.70 in losses.
Johnson, who has been in custody since New York State Police arrested him on September 26, 2018, will be sentenced on October 29, 2019. He faces at least 2 years and up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
On April 9, 2019, Howard, age 28, of Decatur, Georgia, pled guilty to one count of conspiring to commit bank fraud and one count of aggravated identity theft. He is scheduled to be sentenced on August 13, 2019.
This case was investigated by the FBI and the New York State Police-Troop G, and is being prosecuted by Assistant U.S. Attorney Michael Barnett. Other agencies have assisted in the investigation and prosecution, including the District Attorney’s Offices in Jefferson, Saratoga and Warren Counties, the Glens Falls Police Department, the Burlington Police Department (Vt.), Vermont State Police, and the Stowe Police Department (Vt.).
Saltville Man Sentenced to 262 Months in Prison for Role in Methamphetamine ConspiracyRead the Press Release
Abingdon, VIRGINIA – Jeremy Olinger, the second defendant to be sentenced after being convicted of conspiring to traffic methamphetamine in Smyth County, was sentenced last week to 262 months in federal prison, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Olinger, 38, previously pleaded guilty to one count of conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine and one count of possessing with the intent to distribute and distributing 500 grams or more of methamphetamine. On June 3, 2019, Adam Conley, 37, of Glade Spring, Va., was sentenced to 60 months in prison for his role in the conspiracy.
Two other co-defendants, Amanda Crystal Moore, 31, of Chilhowie, Va., and Michelle Renee Boardwine, 36, of Saltville, Va., will be sentenced later this year.
“Methamphetamine is a deadly drug that has devastating effects on our communities,” U.S. Attorney Cullen stated today. “I am grateful for the dedication of our law enforcement partners in disrupting this major source of supply in southwest Virginia and sending him to federal prison for over 20 years.”
“Our communities continue to suffer from the effects of dangerous drugs, like crystal ice methamphetamine,” Attorney General Herring stated today. “We will continue to aggressively prosecute those who bring this drug into the Commonwealth and work with our law enforcement partners to keep the Commonwealth safe.”
According to documents filed with the court, from September 2015 through November 2016, Olinger conspired with at least five individuals to distribute methamphetamine throughout the Western District of Virginia, and elsewhere. Specifically, Olinger admitted to obtaining “crystal ice” methamphetamine, a potent form of the drug, by the pound, two or three times per week, sometimes traveling to sources located in California. The crystal ice Olinger obtained and distributed was an extremely pure form of the drug. Once obtaining the drug, Olinger further distributed it to his sources of distribution as a source of personal income. Olinger admitted to trafficking 5 to 15 kilograms of crystal ice during the life of this conspiracy.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Smyth County Sheriff’s Office, and the Smyth County Commonwealth Attorney’s Office. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Special Assistant United States Attorney Roy Evans are prosecuting the case for the United States.
Recently Retired School Psychologist Arrested on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that David Michael Calaiacovo, 61, of Hamburg, NY, was arrested and charged by criminal complaint with receipt of child pornography. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, in June 2019, Homeland Security Investigations in Buffalo (HSI) received a report from the National Center For Missing and Exploited Children (NCMEC) via the New York State Police regarding images of child pornography which were subsequently traced to the defendant.
Also in June 2019, HSI Buffalo received five additional reports from NCMEC via the New York State Police. Once again the reports involved images of child pornography and were traced to Calaiacovo.
The images in all six reports included naked underage and pre-pubescent children, some involved in sexual activity.On June 27, 2019, a search warrant was executed at the defendant’s residence and several electronic devices were seized, including two laptop computers, cell phones, SD memory cards, CD’s and DVD’s, and video tapes. A preliminary examination has identified at least 400 images constituting child pornography.
The defendant recently retired from his position as a school psychologist with the West Seneca School District.
“This is the third time in as many months that an individual in a position of trust involving children has been arrested on child pornography charges,” stated U.S. Attorney Kennedy. “It is our duty zealously to protect the most vulnerable among us, and these cases should serve as a warning to anyone who may engage in similar criminal behavior, we will find you, arrest you, and we will prosecute you.”
“This case is particularly disturbing because the defendant has long occupied an important role in our community,” said HSI Buffalo Special Agent-in-Charge Kevin Kelly. “As special agents, our work now will hopefully begin the road to justice and healing for anyone who has been impacted by this alleged activity.”
Members of the public who have specific information related to this case are urged to contact the HSI Buffalo Office Child Exploitation Tip Line at 716-464-6070 or email [email protected]. HSI victim-witness specialists will be available to assist any parent or guardian should they need victim-related resources.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Pittsburgh Woman Helped her Bank Robber Son Hide from PoliceRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of accessory after the fact, for assisting the "Sorry, Happy Holidays" bank robber, United States Attorney Scott W. Brady announced today.
Melissa Kane, 48, pleaded guilty to Count Three of a three-count Indictment, which also charges her son, Brent Richards, who pleaded guilty to Count One of the Indictment, charging him with armed bank robbery, on June 25, 2019, before United States District Judge Peter J. Phipps.
In connection with the guilty plea, the Court was advised that Ms. Kane knew that her son, Brent Richards, robbed the Citizens Bank located at 31 Foster Avenue in Pittsburgh, at gun point, on January 8, 2018, and she assisted Mr. Richards, following the robbery, by allowing him to stay at her residence, disposing of the clothing worn by Mr. Richards and the bb gun used by Mr. Richards, and later denying any knowledge of or involvement in the bank robbery, when interviewed by law enforcement. The Court was further informed that Ms. Kane was engaged in a physical altercation with Mr. Richard’s former girlfriend, who Ms. Kane believed would tell law enforcement that Mr. Richards had robbed the bank.
Judge Phipps scheduled sentencing for Nov. 6, 2019, at 10:30 a.m. The law provides for a maximum sentence of 12 years and six months in prison, a fine of $125,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Ms. Kane remains on bond pending the sentencing hearing.
Assistant United States Attorneys Rebecca L. Silinski and Timothy M. Lanni are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Crafton Borough Police Department, the Allegheny County Sherriff’s Office, and the West Mifflin Police Department conducted the investigation leading to the prosecution of Kane.
Pittsburgh Man Sentenced to Nearly 6 Years in Prison for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 4 years and 9 months (57 months) of imprisonment and six years of Supervised Release on his conviction of charges involving guns and drugs, United States Attorney Scott W. Brady announced today.
Chance Rice, 26, had previously pleaded guilty to three counts before United States District Judge Cathy M. Bissoon.
According to information presented to the Court, Rice was involved in three separate federal investigations. The first occurred as a result of the September 16, 2015, candlelight vigil shooting. There, multiple people were injured, and multiple guns were fired, as family members and friends held a vigil for the one-year anniversary of the shooting death of a teenage boy in Homewood. The joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pittsburgh Bureau of Police (PBP) revealed that the person who fired one of the guns during the vigil shooting later transferred his gun to an individual who was subsequently shot and killed. Before his death, that person transferred the gun to Rice, and Rice transferred it to a defendant named Keith Lovelace. Lovelace and Rice have both been prosecuted in federal court, while the shooter is pending state charges.
The second incident started when Rice told his former girlfriend that he had recently been shot at and that she needed to buy a gun for her own protection. Rice quickly obtained possession of that gun. On October 31, 2015, Edgewood Police officers stopped the vehicle Rice was driving and noticed a spent casing on the dashboard and a black pistol in the car. Rice fled in the vehicle and was a wanted fugitive until his December 18, 2015 arrest. Rice had prior Allegheny County felony convictions in 2014 for carrying a firearm without a license and for dealing cocaine. These convictions made it illegal for Rice to subsequently possess a firearm or ammunition, under federal law.
Rice was being housed in the Butler County Jail (BCJ) while awaiting his trial. On July 10, 2018, the Deputy Warden of the BCJ received information that caused her to arrange for Rice’s cell to be searched. Guards located drug-soaked paper in Rice’s cell. The lab determined that the paper contained a substance called 5 Flouro ADB, a type of synthetic marijuana. In Court, Rice admitted to possessing this drug to provide to other inmates.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
United States Attorney Brady commended the ATF, the Pittsburgh Bureau of Police, the Butler County Jail, the Edgewood Police Department, and the Pennsylvania Board of Probation and Parole for the investigations that led to the successful prosecution of Rice.
Pauls Valley Couple Charged with Producing Child PornographyRead the Press Release
OKLAHOMA CITY – A federal grand jury has returned an indictment charging CHRISTINA NELSON-CODDINGTON, 29, and GERRAD CODDINGTON, 25, both of Pauls Valley, with producing child pornography, announced United States Attorney Timothy J. Downing.
According to a six-count indictment, both defendants used a minor identified as Jane Doe to engage in sexually explicit conduct to produce a video and photographs. The indictment alleges the defendants produced the video and photographs on various dates in May and June of 2019 and used materials that had been transported in interstate commerce.
Both defendants were arrested on June 14 on related charges lodged by the Oklahoma Attorney General’s Office. They are currently in custody in the Garvin County jail on $5 million bonds.
"I’m grateful both for the tip that led to this prosecution and for Attorney General Hunter’s diligence in addressing these sorts of crimes against children," said U.S. Attorney Downing. "My office will continue to work with state law enforcement under laws enacted by Congress to eliminate child pornography and the harm it causes our youngest citizens."
In the event of a conviction, each count would carry a mandatory minimum sentence of 15 years in prison and a maximum of 30 years, in addition to a fine of up to $250,000. These charges also call for a term of supervised release of not less than five years and up to life and a total special assessment of $55,100.
This case is the result of a tip sent to the Oklahoma Internet Crimes Against Children Task Force and an investigation by the Oklahoma Attorney General’s Office, U.S. Homeland Security Investigations, and the Pauls Valley Police Department. This federal case is being prosecuted by Assistant U.S. Attorney Brandon Hale.
The public is reminded that these charges are merely allegations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Oregon Man Pleads Guilty for Instagram Threats Against Portland Mayor Ted WheelerRead the Press Release
PORTLAND, Ore.—Kermit Tyler Poulson, 40, pleaded guilty today to one count of transmitting threatening communications with the intent to extort Portland Mayor Ted Wheeler.
According to court documents, on October 9, 2018, Poulson posted multiple threatening comments on Mayor Wheeler’s personal Instagram account. Poulson threatened to firebomb the mayor’s home if he did not immediately fire a Portland police officer recently involved in an on-duty shooting. Investigators tracked the IP address associated with the comments to a Portland residence where Poulson was staying. Poulson was present when investigators searched the property and after initially making a number of misleading statements, admitted that he alone was responsible for the comments.
Poulson faces a maximum sentence of two years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on October 2, 2019 before U.S. District Court Judge Michael H. Simon.
As part of the plea agreement, Poulson has agreed to forfeit property used to facilitate his crimes identified by the government prior to sentencing.
This case was investigated by the Portland FBI Joint Terrorism Task Force (JTTF) and the Portland Police Bureau (PPB). The Portland JTTF includes FBI special agents and more than a dozen state and local law enforcement officers.
Norton Doctor Arrested on Federal Criminal ComplaintRead the Press Release
Abingdon, VIRGINIA – Dr. Raymond Michael Moore, a Norton-based, licensed, medical doctor, was arrested this morning and charged via federal criminal complaint with obtaining schedule II and schedule IV controlled substances by fraud or misrepresentation, failing to maintain proper records for schedule II and schedule IV controlled substances, and making false statements. United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring made the announcement.
The criminal complaint charges Moore, 61, of Wise, Va., with one count of acquiring, obtaining, or possessing schedule II and schedule IV controlled substances by misrepresentation, fraud, forgery, deception, or subterfuge, one count of failing to maintaining records for schedule II and schedule IV controlled substances received, delivered or shipped and one count of making false statements.
“It is critical that physicians and other health-care providers who prescribe controlled substances scrupulously follow the law and standards of care to ensure that these drugs are not diverted and abused,” U.S. Attorney Cullen stated today. “When these medical professionals violate their Hippocratic oaths – and essentially act as drug dealers – we will use all available resources to send them to federal prison.”
“It’s so critical that we maintain tight controls over the supply of prescription drugs because opioid abuse and dependence often has its roots in the medicine cabinet with the misuse of prescription medications,” said Attorney General Herring.
“This is once again a prime example of why the DEA’s Tactical Diversion Squads were formed throughout the nation,” said Jesse Fong Special Agent in Charge of the Washington Division Office. “We have no higher priority than investigating drug-dealing physicians and other corrupt health-care practitioners and putting them in federal prison. Doctor Moore flooded Southwestern Virginia, with his opioid prescriptions. The Drug Enforcement Administration’s Tactical Diversion Squads will relentlessly investigate and arrest these drug dealers disguised as doctors.”
According to documents filed with the court, beginning in July 2016 and continuing to January 2019, Moore intentionally, and without authority, acquired and possessed hydrocodone tablets, oxycodone-acetaminophen tablets, fentanyl transdermal system, meperidine tablets, Alprazolam tablets, Lorazepam tablets, clonazepam tablets, tramadol, and diazepam, through fraud, forgery or deception. The defendant also failed to maintain the required records for these controlled substances.
Search warrants executed at the home and medical offices of Moore revealed many of the same schedule II and schedule IV controlled substances were found at Moore’s home. The results of the search led investigators to conclude that Moore was unlawfully prescribing schedule II and schedule IV medication to patients in order for the same medication to be returned to Moore for personal ingestion.
This case was brought by the Appalachian Regional Prescription Opioid Strike Force. The investigation of the case was conducted by the Roanoke Office of the Drug Enforcement Administration’s Tactical Diversion Squad. The Department of Health and Human Services Office of Inspector General, Virginia State Police, Southwest Virginia Drug Task Force, Wise County Sheriff’s Office, Wise County Commonwealth’s Attorney’s Office, Norton Police Department, and Town of Wise Police Department assisted with the search warrant executions. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Major Crimes and Emerging Threats Unit, will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Niagara Falls Man Sentenced for Involvement in Multi-Million Dollar Heroin, Cocaine, and Fentanyl ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Maulana Lucas, 45, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, five kilograms or more of cocaine, and 400 grams or more of fentanyl, was sentenced to serve 84 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between January 2013 and September 2015, the defendant and his girlfriend formed a relationship with co-defendant Darryl Williams to assist Williams with receiving drug shipments from California, distributing the drugs, and collecting proceeds the Western District of New York and elsewhere. In the Western District of New York alone, the defendant assisted in collecting a total of approximately $19,000,000 in cash in drug proceeds.
In May 2014, as part of the conspiracy, Lucas was directed by co-defendant Williams to meet with another co-defendant, Sonia Hernandez, to receive kilograms of cocaine.From July 15, 2014, through March 18, 2015, Lucas received 29 pallets of shipments of illegal drugs from Herman Aguirre. Each pallet contained a mixture of approximately 30-50 kilograms of cocaine, heroin, and fentanyl. The drugs were then distributed in the Western District of New York and in other cities and states. The defendant assisted in breaking down pallets of drugs and in collecting drug proceeds from surrounding states. The drugs were shipped in crates or pallets, disguised as microwaves or furniture. The drugs were unloaded at a local warehouse. Lucas also directed his girlfriend to store kilograms of drugs in the bedroom of her apartment in the Western District of New York.
On March 23, 2015, Buffalo Police seized 22 kilograms of cocaine, two kilograms of heroin, and eight kilograms of fentanyl at the defendant’s girlfriend’s apartment.Lucas was arrested in August 2016 along with 16 other defendants. All defendants have been convicted.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent-in- Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larson, New York Field Division.
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New Orleans Man Pleads Guilty to Heroin ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GEORGE CARTER, age 63 of New Orleans, pled guilty Thursday, June 27, 2019 to conspiracy to distribute and to possess with intent to distribute more than one kilogram of heroin.
According to court documents, CARTER and others conspired to distribute and to possess with intent to distribute one hundred grams or more of heroin.
CARTER faces a minimum term of imprisonment of five years and a maximum term of forty years of imprisonment. A fine of up to $5,000,000 may also be imposed or the greater of twice the gross gain to the defendant or twice the gross loss to any person. CARTER will be placed on supervised release after imprisonment for a period of not less than four years. Additionally, a $100 special assessment fee will be assessed. U.S. District Court Judge Ashe set sentencing for October 3, 2019.
U.S. Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Maria M. Carboni are in charge of the prosecution.
New Orleans Man Pleads Guilty to Firearms and Narcotics ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ERIC ROBINSON, age 26, of New Orleans, has pleaded guilty Thursday, June 27, 2019 to federal firearms and narcotics violations.
According to court documents, ROBINSON, a convicted felon, possessed firearms on two separate occasions between 2017 and 2018, in violation of Title 18, United States Code, Section 922(g)(1) and 924(a)(2). On April 3, 2018, ROBINSON possessed with the intent to distribute fentanyl in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). ROBINSON also conspired with others to possess firearms in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(o).
The Court set sentencing in this matter for September 9, 2019. ROBINSON faces, as to count one of the superseding bill of information, a maximum term of imprisonment of 20 years, a fine of $250,000, up to three years of supervised release after imprisonment, and a $100 special assessment. As to counts two and four, ROBINSON faces a maximum term of imprisonment of 10 years, a fine of $250,000, up to three years of supervised release after imprisonment, and a $100 special assessment. As to count 3, ROBINSON faces a maximum term of imprisonment of 20 years, a fine of $1,000,000, at least 3 years of supervised release after imprisonment, and a $100 special assessment. As to count five, ROBINSON faces a minimum of 5 years and a maximum of life imprisonment, up to 5 years supervised release after imprisonment, a fine of $250,000, and a $100 special assessment.
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.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the New Orleans Police Department, and the Louisiana State Police in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne.
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Maryland Woman Pleads Guilty to Theft of Government Money and Aggravated Identity TheftRead the Press Release
A Maryland woman pleaded guilty to theft of government money and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney for the District of Maryland Robert K. Hur.
According to court documents, between 2011 and 2013, Stephanie Twyman was part of a conspiracy to fraudulently obtain tax refund checks by filing false tax returns with the Internal Revenue Service (IRS) using the names and Social Security numbers of unemployed individuals. Once the refund checks in these individuals’ names were obtained, Twyman sent runners to cash the checks at a check cashing business in Clinton, Maryland, where co-conspirators worked as tellers. The runners brought the proceeds back to Twyman, who then paid the tellers for cashing the fraudulently obtained checks. The total tax loss resulting from Twyman’s fraudulent conduct is approximately $566,261.
Sentencing is scheduled for Oct. 4, 2019. Twyman faces a maximum sentence of 10 years in prison on the theft count and a mandatory two years in prison on the aggravated identity theft count, a term of supervised release, restitution, and a fine.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked agents of the Department of Treasury, Office of Inspector General, and IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney William Guappone and Assistant U.S. Attorney Gregory Bernstein, who are prosecuting the case.
Maryland Man Indicted for Interstate Kidnapping and Sexual Assault of a 13-year-old GirlRead the Press Release
A 21-year-old man, of Oxon Hill, Maryland was charged in the United States District Court for the District of Columbia in a seven-count indictment on Friday. The announcement was made by Jessie K. Liu, United States Attorney for the District of Columbia, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Charles A. Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office.
On June 28, 2019, a seven-count indictment was returned by a federal grand jury charging the man with two counts of kidnaping, four counts of sexual abuse, and violation of a protection order. The charges carry a mandatory-minimum sentence of 20 years imprisonment, a maximum sentence of life imprisonment, and lifetime sex offender registration. The defendant has not been named because this is an intra-family offense against a minor victim.
In 2017, the defendant inappropriately touched the victim’s breasts and tried to further sexually assault her. As a result, a protection order was signed by a Maryland judge. At that time, the defendant was a special police officer and had recently applied for a position as an armed police officer. That application was rejected because of the pending protection order. On December 18, 2018, the defendant waited for the then 13-year-old victim to return from school, and abducted her from Maryland. The defendant forced the victim into his car, handcuffed her, and drove into D.C. to an abandoned home. The defendant forcibly raped the victim. The defendant released the victim three hours later, and the victim immediately reported the attack to family members. Forensic testing revealed that the defendant’s DNA was on the victim. A search warrant executed on the defendant’s vehicle recovered the handcuffs and other items.
U.S. Attorney Liu stated that the U.S. Attorney’s Office is deeply committed to the prosecution of those who commit sexual assaults in the District of Columbia, particularly those who commit such crimes against children. Liu commended the work of the entire team of individuals who assisted with the investigation including Marisa West, Jodi Lazarus, and Elana Suttenberg, AUSAs in the Office’s Sex Offense and Domestic Violence Section (SODV), Anthony Scarpelli, an AUSA in the Office’s Violent Crime and Narcotics Trafficking Section, Victim/Witness Program Specialist Yvonne Bryant, SODV Paralegals Tiffany Jones and Tiffany Fogel, and Forensic Child Interviewer Tracy Owusu.
Finally, U.S. Attorney Liu commended the work of the MPD’s Youth and Family Services Division and the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task Force.
Marshall Man Sentenced to 24 Months in Federal Prison for Failure to Pay Employee Payroll TaxesRead the Press Release
Fort Smith, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Eric De Priest, age 47, of Marshall, Arkansas, was sentenced Monday to serve 24 months in federal prison followed by three years of supervised release and ordered to pay a total of $284,736.30 in restitution for his conviction on one felony count of Willful Failure to Pay Over Payroll Taxes. The Honorable P.K. Holmes III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, Eric De Priest (De Priest) is the co-owner of ZacBac Apparel LLC (ZacBac), a limited liability company formed in Arkansas in 2002. ZacBac’s principal place of business is in Marshall, Arkansas. ZacBac manufactures clothing for government agencies such as the United States Postal Service and the military.
The Internal Revenue Code requires employers to pay to the United States of America the employer’s fair share of Federal Insurance Contribution Act taxes, also called FICA and social security taxes, and Medicare taxes owing on wages paid to employees. The Internal Revenue Code also requires employers to withhold from wages of their employees the employees’ share of FICA taxes, Medicare and social security taxes, and income taxes (collectively, “payroll taxes”), to account for payroll taxes, and pay the withheld amounts of payroll taxes over to the United States of America.
Since 2005, De Priest exercised control over ZacBac’s financial transactions including, but not limited to, directing payments to creditors, authorizing payroll and submitting Federal Tax Deposits, and signing and filing payroll tax returns. Specifically, for multiple consecutive quarters from March 2009 through and including December 31, 2015, De Priest signed each of ZacBac’s Employer’s Quarterly Federal Tax Returns (known as a “Form 941”) as the “owner;” meaning, De Priest was the person responsible for collecting, truthfully accounting for, and submitting ZacBac’s payroll taxes to the United States.
Between July 2012 and September 2015, ZacBac withheld over $293,000.00 in trust fund taxes from employees’ wages and failed to pay over to the United States $284,736.30 of this amount. During this same time period, ZacBac diverted more than $247,000 of the trust fund taxes collected from employees’ wages.
Specifically, during the fourth quarter of 2014 that ended December 31, 2014, De Priest deducted and collected from the total taxable wages of ZacBac employees’ federal income taxes and Federal Insurance Contributions Act taxes in the sum of $24,710.25 that he did not then pay into the Treasury of the United States.
De Priest was indicted by a federal grand jury in September 2018 and entered a guilty plea in February 2019.
The investigation was conducted by IRS Criminal Investigations Division. Assistant United States Attorney Kyra Jenner prosecuted the case for the United States.
Manufacturers of "Spice" Convicted of Operating A Continuing Criminal Enterprise, Possessing and Distributing A Controlled Substance AnalogueRead the Press Release
LAS VEGAS, Nev. – Two individuals were convicted of 24 counts related to the manufacture of synthetic cannabinoids (commonly referred to as “spice”) today by a federal jury including operating a continuing criminal enterprise, manufacturing and possessing with the intent to distribute a controlled substance and controlled substance analogues, money laundering, mail and wire fraud, and related charges.
The verdict was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, United States Attorney Nicholas A. Trutanich of the District of Nevada, Assistant Special Agent in Charge Daniel W. Neill of the Drug Enforcement Administration, and Acting Special Agent in Charge Ismael J. Nevarez Jr. of the Las Vegas Internal Revenue Service-Criminal Investigation.
According to the evidence presented during the ten-day trial, the defendants, Charles Burton Ritchie, 48, of Park City, Utah, and Benjamin Galecki, 44, of Pensacola, Florida, committed these crimes in the District of Nevada, from March 21 to July 25, 2012. Specifically, the evidence showed that Ritchie and Galecki were the owners and managers of Zencense Incenseworks, a company that manufactured smokable synthethic spice and marketed their products as “potpourri,” “incense,” and “aromatherapy.”
The evidence showed that Ritchie and Galcki rented a warehouse in Las Vegas for the sole purpose of manufacturing spice products which contained the dangerous chemical XLR-11, which the jury found to be a controlled substance analogue. Ritchie and Galecki ordered XLR-11 from chemical suppliers in China and Hong Kong. At the Las Vegas warehouse, a Zencense employee mixed the XLR-11 with acetone, liquid flavoring and applied the chemical mixture to dried plant material. The warehouse employee mailed the compounded spice in draw string garbage bags to Ritchie and Galecki in Pensacola, Florida, where other workers placed the spice into small retail bags. The defendants sold their products with suggestive brand names including, “Bizarro,” “Orgazmo,” “Headhunter,” and “Defcon 5 Total Annihilation,” to smoke shops across the United States. From June 1 to July 25, 2012, Ritchie and Galecki were responsible for manufacturing and distributing approximately 4,000 pounds of spice and grossed more than $1.6 million dollars in sales.
The minimum penalty for a continuing criminal enterprise is 20 years’ imprisonment and a maximum penalty of life imprisonment. The penalties for the controlled substance analogue, wire fraud, mail fraud, and six money laundering counts each carry a maximum of 20 years’ imprisonment.
This case was investigated by the Internal Revenue Service-Criminal Investigation, the Drug Enforcement Administration, and the Las Vegas Metropolitan Police Department. Assistant United States Attorney James Keller of the District of Nevada and Trial Attorneys Cole Radovich and Jason Ruiz of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
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Local Man Indicted for Importing 3,000 Oxycodone Pills into United StatesRead the Press Release
McALLEN, Texas – A 40-year-old Mission man has been charged with importing oxycodone into the United States from Mexico, announced U.S. Attorney Ryan K. Patrick.
Jose Luis Guerra Jr., was originally charged by criminal complaint June 7, 2019, after being apprehended as he attempted to cross the border from Mexico at the Progreso Port of Entry. Today, a federal grand jury returned the four-count indictment charging him with conspiracy, importing and possessing with intent to distribute Oxycodone. He is expected to appear for his arraignment before U.S. Magistrate Judge Ormsby July 11, 2019.
Guerra allegedly attempted to enter the United States at the Progreso Port of Entry June 7, 2019, by foot. The complaint alleges he had numerous cookie boxes in his possession. Authorities searched the boxes and located approximately 3,000 oxycodone pills, totaling approximately 612 grams.
If convicted, Guerra faces up to 20 years prison and a possible $1 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorneys Steven Belt and Michael Mitchell are prosecuting the case.
An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Leader of Springfield Heroin Trafficking Organization Pleads GuiltyRead the Press Release
BOSTON – The leader of a large-scale heroin trafficking organization pleaded guilty in federal court in Springfield yesterday. The organization was supplied by sources in the Dominican Republic and New York City.
Alberto Marte, 33, of Springfield, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute 1000 grams or more of heroin, five counts of distribution of and possession with intent to distribute more than 100 grams of heroin, one count of distribution of and possession with intent to distribute heroin, one count of conspiracy to distribute and possess with intent to distribute fentanyl, and one count of possession of a firearm in furtherance of a drug trafficking offense. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept, 24, 2019. Marte and 18 co-defendants were indicted on heroin conspiracy charges in August 2017.
Marte, the leader of a Springfield-based drug trafficking organization, which consisted of at least 17 members, had direct contact with heroin supply sources in the Dominican Republic. On a monthly basis, members of the organization transported between eight and 20 kilograms of heroin to the Springfield area. According to court documents, the organization then packaged the heroin and distributed it using a variety of stamps, including “Donald Trump” and “Hollywood.” The Hollywood brand of heroin has been associated with a number of overdose deaths in western New England that occurred in late 2015 and early 2016. During the course of the investigation, more than six kilos of heroin was seized by federal agents.
Four co-conspirators have also pleaded guilty, including Jose Miguel Ramos, a Dominican national smuggled into the country to work for Marte’s organization. Ramos lived in a heroin mill in Springfield where he and others packaged kilograms of heroin for retail distribution. The remaining defendants have pleaded not guilty.
The charge of conspiracy to distribute and possess with the intent to distribute 1000 grams or more of heroin provides for a minimum mandatory sentence of 10 years and up to life in prison, up to a lifetime of supervised release and a fine of up to $10 million. The charge of distribution of and possession with the intent to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of five years and up to 40 years in prison, a lifetime of supervised release and a fine of $5 million. The charge of conspiracy to distribute and possess with the intent to distribute fentanyl provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $10 million. The charge of possession of a firearm in furtherance of a drug trafficking offense provides for a mandatory minimum sentence of five years and up to life in prison, supervised release for four years, and a fine of up to $10 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Acting Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Settles Discrimination Lawsuit Against an Educational Service Agency in MichiganRead the Press Release
The Justice Department announced today that it has reached a settlement with the Allegan Area Educational Service Agency (AAESA), a government agency providing support, cooperative educational programs, and services to local school districts in Allegan County, Michigan, resolving allegations that AAESA subjected two female teachers to sexual harassment and a hostile work environment in violation of Title VII of the Civil Rights Act of 1964, as amended.
The complaint, filed last year in the U.S. District Court for the Western District of Michigan, alleged that AAESA discriminated against two female teachers when they were regularly subjected to sexual harassment in the workplace by their supervisor, a former principal at the school where they all worked. As alleged in the complaint, the sexual harassment included verbal abuse as well as unwanted physical touching that escalated to physical assaults. The principal was later convicted of criminal assault of the teachers. The complaint alleged that AAESA did not take reasonable steps to prevent the principal’s unlawful acts.
Under the terms of a consent decree, which still must be approved by the court, AAESA has agreed to pay $450,000 in total monetary relief to the two teachers. Pursuant to the consent decree, AAESA must review and revise its existing anti-discrimination policies and procedures and implement effective policies to protect its employees from discrimination on the basis of sex, including sexual harassment. The consent decree requires AAESA to train its employees to ensure that employees understand how and when to report potentially discriminatory behavior and to ensure that any future complaints of discrimination are handled properly.
“No one should be forced to endure sexual harassment to keep their job,” said Assistant Attorney General Eric Dreiband. “The Justice Department, through its Sexual Harassment in the Workplace Initiative, will continue to vigorously enforce federal anti-discrimination laws to combat sexual harassment in the workplace and help ensure that teachers and other dedicated public servants are protected from unlawful harassment in the future.”
“My office is committed to vigorous law enforcement, which includes working with the Civil Rights Division to combat sexual discrimination and harassment in public sector workplaces,” said U.S. Attorney Andrew Birge. “This resolution sends a strong message that sexual harassment will not be tolerated in the Western District of Michigan and that employers must make serious and meaningful efforts to prevent and address it.”
Both teachers filed charges of discrimination with the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC investigated the charges and found that there was a reasonable basis to believe that violations of Title VII had occurred. After unsuccessful conciliation efforts by the EEOC, the charges were referred by the EEOC to the Department of Justice. The two teachers intervened in the United States’ suit.
This settlement is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative announced in February 2018. The Initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach, and development of effective remedial measures to address and prevent future sex discrimination and harassment.
Attorneys assigned to the Employment Litigation Section of the Civil Rights Division represented the United States in this matter.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Justice Department Settles Discrimination Lawsuit Against an Educational Service Agency in MichiganRead the Press Release
This Settlement is part of the Justice Department’s Sexual Harassment in the Workplace Initiative
WASHINGTON – The Justice Department announced today that it has reached a settlement with the Allegan Area Educational Service Agency (AAESA), a government agency providing support, cooperative educational programs, and services to local school districts in Allegan County, Michigan, resolving allegations that AAESA subjected two female teachers to sexual harassment and a hostile work environment in violation of Title VII of the Civil Rights Act of 1964, as amended.
The complaint, filed last year in the U.S. District Court for the Western District of Michigan, alleged that AAESA discriminated against two female teachers when they were regularly subjected to sexual harassment in the workplace by their supervisor, a former principal at the school where they all worked. As alleged in the complaint, the sexual harassment included verbal abuse as well as unwanted physical touching that escalated to physical assaults. The principal was later convicted of criminal assault of the teachers. The complaint alleged that AAESA did not take reasonable steps to prevent the principal’s unlawful acts.
Under the terms of a consent decree, which still must be approved by the court, AAESA has agreed to pay $450,000 in total monetary relief to the two teachers. Pursuant to the consent decree, AAESA must review and revise its existing anti-discrimination policies and procedures and implement effective policies to protect its employees from discrimination on the basis of sex, including sexual harassment. The consent decree requires AAESA to train its employees to ensure that employees understand how and when to report potentially discriminatory behavior and to ensure that any future complaints of discrimination are handled properly.
"No one should be forced to endure sexual harassment to keep their job," said Assistant Attorney General Eric Dreiband. "The Justice Department, through its Sexual Harassment in the Workplace Initiative, will continue to vigorously enforce federal anti-discrimination laws to combat sexual harassment in the workplace and help ensure that teachers and other dedicated public servants are protected from unlawful harassment in the future."
"My office is committed to vigorous law enforcement, which includes working with the Civil Rights Division to combat sexual discrimination and harassment in public sector workplaces," said U.S. Attorney Andrew Birge. "This resolution sends a strong message that sexual harassment will not be tolerated in the Western District of Michigan and that employers must make serious and meaningful efforts to prevent and address it."
Both teachers filed charges of discrimination with the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC investigated the charges and found that there was a reasonable basis to believe that violations of Title VII had occurred. After unsuccessful conciliation efforts by the EEOC, the charges were referred by the EEOC to the Department of Justice. The two teachers intervened in the United States’ suit.
This settlement is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative announced in February 2018. The Initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach, and development of effective remedial measures to address and prevent future sex discrimination and harassment.
Attorneys assigned to the Employment Litigation Section of the Civil Rights Division represented the United States in this matter.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
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Jacksonville Man Pleads Guilty to Possessing Child Pornography of A Child in His CustodyRead the Press Release
Jacksonville, Florida – Lonnie Lawrence Mercer, Jr. (40, Jacksonville) has pleaded guilty to possession of child pornography. Mercer faces a maximum penalty of 20 years in federal prison, up to a life term of supervised release, and has agreed to pay restitution to the victim of his offense. A sentencing date has not yet been set.
According to the plea agreement, Mercer possessed images of child pornography on his cellphone depicting a 10-year-old child with her shorts and underwear pulled to the side, revealing her genitalia. The child’s mother told law enforcement that she discovered 8-10 explicit photos of her daughter’s genitalia on Mercer’s phone and confronted him, after which a physical altercation ensued.
The 10-year-old child reported that Mercer would always help her stretch and suggested that she occasionally noticed Mercer’s camera phone open while her legs were open and he helped her stretch. The child explained that Mercer would sometimes adjust her underwear to “cover [her] privates” while she was stretching. This case was investigated by Homeland Security Investigations and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Husband and Wife Plead Guilty to Involvement in Multi-Million Dollar Investment Fraud Scheme Based in HawaiiRead the Press Release
HONOLULU – Neil Kauhi, 51, pleaded guilty today in federal court to one count of wire fraud. Kauhi faces a maximum term of imprisonment of 20 years. His wife, Lyndie Kauhi, 49, pleaded guilty to one count of misprision of a felony. She faces a maximum term of imprisonment of three years. Both Lyndie and Neil Kauhi are detained without bail until their sentencings on October 17, 2019.
U.S. Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, between October 2012 and April 2018, Neil Kauhi executed an investment fraud scheme involving over 20 victims. Neil Kauhi took in more than $2.5 million by promising these victims that their money would be invested in precious metals, real estate, a trucking company, and a solar energy company. Instead of directing the victims’ funds into the promised investments, Kauhi diverted most of the money to his and his family’s own personal use, such as expenditures on travel, rent and utilities, restaurants, vehicles, retail purchases, entertainment, and a daughter's wedding, as well as into other unauthorized investments.
According to court documents, Lyndie Kauhi knew about her husband’s investment fraud scheme, but she did not report it to federal authorities. Instead, Lyndie Kauhi took steps to conceal the fraud scheme, by among other things, depositing and transferring victims’ funds into the Kauhi’s personal bank accounts. When interviewed on November 8, 2017 by agents of the Federal Bureau of Investigation (FBI), Lyndie Kauhi made misleading statements and material omissions about the fraud scheme.
As part of their plea agreement, both Lyndie and Neil Kauhi have agreed to pay restitution for the fraud losses to victims. Neil Kauhi has also agreed to a forfeiture money judgment of $2,981,191.64. Federal authorities have already seized approximately $581,618.51 in funds in connection with the sale of real property associated with Neil Kauhi.
The case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Rebecca A. Perlmutter.
Houston Area Physician Pleads Guilty to Health Care FraudRead the Press Release
HOUSTON - A local physician has admitted to participating in a conspiracy involving medical tests, procedures and office visits that were not medically necessary, not properly provided or both, announced U.S. Attorney Ryan K. Patrick.
Rezik Saqer, 64, a licensed anesthesiologist of Houston, entered his guilty plea before Magistrate Judge Christina Bryan this morning.
At the hearing, Saqer admitted he submitted fraudulent claims to Medicare and other private insurance companies for financial gain.
From around January 2010 through September 2015, Saqer and his co-conspirators often overbooked patient appointments to maximize billings. Unlicensed co-conspirators often conducted the follow-up appointments which frequently lasted less than the typical face-to-face time that is require. These unlicensed co-conspirators were unqualified to perform medical care in the United States. However, Saqer frequently billed and caused the billing of higher reimbursement codes.
Saqer billed, or caused to be billed, millions of dollars for medical tests, procedures and office visits that were not medically necessary, not properly provided or both.
Sentencing has been set for Oct. 22, 2019, before Chief U.S. District Judge Lee H. Rosenthal. At that time, Saqer faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
The Drug Enforcement Administration, FBI and IRS – Criminal Investigtion conducted the investigation. Assistant U.S. Attorney Tina Ansari and Department of Justice trial attorneys Andrew Pennebaker and Devon Helfmeyer are prosecuting the case.
Gilmer Inmate admits to indecent exposureRead the Press Release
CLARKSBURG, WEST VIRGINIA – Damon Johnson, an inmate at Federal Correction Institution Gilmer in Glenville, West Virginia, has admitted to indecent exposure, United States Attorney Bill Powell announced.
Johnson, age 42, pled guilty to one count of “Indecent Exposure.” Johnson admitted to exposing himself to staff at FCI Gilmer in March 2019.
Johnson was sentenced to 90 days incarceration for the crime.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. FCI Gilmer Special Investigative Services investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Four South American Narcotic Smugglers Apprehended Off the Coast of Ecuador Charged in USVI Federal Court with Trafficking 1,535 Kilograms of CocaineRead the Press Release
St. Thomas, USVI – Freddy Montano Paz, 29, Calixto Tumbaco, 41, Mariano Abregon, 42, and Hector Hernandez Saucedo, 48, appeared today before U.S. Magistrate Judge Ruth Miller for arraignment and detention hearings on charges of Conspiracy to Possess and Possession of a Controlled Substance on Board a Vessel Subject to the Jurisdiction of the United States, United States Attorney Gretchen C.F. Shappert announced. At the conclusion of the hearings, Magistrate Miller ordered all four defendant detained pending trial.
The Information alleges that Montano Paz, Tumbaco, Abregon and Hernandez Saucedo were all on board a semi-submercible vessel that was intercepted by the United States Coast Guard Hamilton (USCG) cutter while on routine patrol. The USCG crew first sighted the semi-submercible vessel on May 10, 2019, approximately 250 nautical miles northwest of Esmeraldes, Ecuador. The vessel did not display any indicia indicating its nationality. After being detected, the four occupants—two Columbian nationals, one Ecuadorian national, and oneMexican national--began tossing the bales of suspected narcotics overboard their vessel. The USCG disabled the semi-submercible vessel, and successfully seized 40 bales of suspected narcotics, including bales that were tossed overboard. The 40 recovered bales contained approximately 1,535 kilograms of a white powdery substance that field tested positive for cocaine.
This case is being investigated by the USCG and the Drug Enforcement Agency, and is being prosecuted by Assistant United States Attorney Delia L. Smith.
United States Attorney Shappert reminds the public that an information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Former NSA Subcontractor Pleads Guilty to Submitting False Claims for Hours Worked on Government ContractsRead the Press Release
Baltimore, Maryland – Kyle Duran Smego, age 40, of Raleigh, North Carolina, pleaded guilty on July 2, 2019, to submitting false claims to the United States, specifically for inflating the number of hours he claimed to have worked on two government contracts.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Robert P. Storch, Inspector General of the National Security Agency.
The National Security Agency (NSA) is a component of the United States Department of Defense. During the period from February 2016 to present, the NSA had two ongoing contracts with an outside company (Contractor A). Each of these contracts required Contractor A to supply information technology (IT) services to the NSA. Contractor A subcontracted with Subcontractors 1 and 2, respectively, to provide software engineers and developers needed to carry out its obligations under each contract.
According to his plea agreement, from February 2016 through May 2018, Kyle Duran Smego was successively employed on a full-time basis by Subcontractors 1 and 2 to work as a software engineer/front end developer on the two separate contracts held by Contractor A. Because the subject matter of these contracts involved classified information, all of the work had to be performed at secure, access-controlled locations. Smego was therefore required to be physically present at his assigned duty locations to do his work.
Between February 2016 and November 2017, Smego reported to Subcontractor 1 that he had worked 3,289 hours on their contract. Between November 2017 and May 2018, Smego reported to Subcontractor 2 that he had worked 797.5 hours on their contract. A subsequent review by the NSA of key card and timecard information demonstrated that Smego was not actually present at his assigned duty stations for at least 1,326 of the 3,289 hours he had reported to Subcontractor 1 (40.3%) and 375 of the 797.5 hours he had reported to Subcontractor 2 (47%). In addition to overstating the number of hours he had worked, the timesheets that Smego submitted to Subcontractors 1 and 2 included entries for 119 separate days in which Smego represented that he had worked an average of 8 hours when, in fact, he had not worked at all on those days.
All of the hours that were falsely reported by Smego were subsequently billed by the subcontractors to Contractor A, and were in turn billed by Contractor A to, and paid by, NSA. Based upon the false billing records submitted by Smego, the NSA overpaid a total of $220,379.42 to Contractor A. Contractor A, in turn, paid most of those funds over to Subcontractors 1 and 2, who ultimately paid Smego $115,110 for work he had not performed.
As part of his plea agreement, Smego will be required to pay restitution and to forfeit any assets derived from or traceable to the offense.
Smego faces a maximum sentence of five years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 3, 2019 at 3:00 p.m.
United States Attorney Robert K. Hur commended NSA Senior Investigator Lori Hazenstab and the NSA OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
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Final Defendants Sentenced in Multi-State Dog Fighting ProsecutionRead the Press Release
The last of 12 defendants to be convicted for their roles in multi-state dog fighting conspiracies were sentenced yesterday in federal court in Trenton, New Jersey, the Department of Justice announced today.
- Justin Love, 39, of Sewell, New Jersey, was sentenced on July 3, 2019, to serve 54 months in prison. A jury had convicted Love of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, six felony counts of possessing a dog intended for use in an animal fighting venture, and two felony counts of purchasing and receiving a dog intended for use in an animal fighting venture.
- Robert A. Elliott, Sr., 50, of Millville, New Jersey, was sentenced on May 30, 2019, to serve 24 months in prison. A jury had convicted Elliott of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and 12 felony counts of possessing a dog intended for use in an animal fighting venture.
- Dajwan Ware, 46, of Fort Wayne, Indiana, was sentenced on May 29, 2019, to serve 24 months in prison. A jury had convicted Ware of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act.
“Our justice system will not tolerate the torment and death of animals in the fighting ring, as the sentencings in this case demonstrate,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “Although the one chapter represented by this landmark series of cases has now closed, we will continue to place a high priority on pursuing and prosecuting similar illegal animal fighting ventures across the country.”
“Dog fighting exacts a steep toll on animals, local animal shelters, charitable humane organizations, and the taxpayers of New Jersey,” said U.S. Attorney Craig Carpenito for the District of New Jersey. “We applaud our local and federal partners who worked so tirelessly to investigate this case and bring the offenders to justice. The message from today’s sentencing hearing is simple: don’t fight dogs in New Jersey, or elsewhere, if you want to avoid a lengthy prison sentence.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“Animal cruelty is a heinous crime that deserves our ultimate condemnation and serious legal consequences for those who engage in it for ‘sport’ and/or profit,” said Brian Michaels, Special Agent in Charge, Homeland Security Investigations, Newark. “As an agency, we are proud to work with our partners to identify, investigate and assist our partners to rout out those who engage in this despicable, inhumane, and illegal practice.”
According to trial evidence and court documents filed in connection with the cases, the defendants and their associates regularly fought dogs – including regularly to the death – and repeatedly trafficked in dogs with other dog fighters across several states so that those dogs could be used in dog fights. They also maintained significant numbers of fighting dogs and substantial dog fighting equipment such as dog treadmills, intravenous drug bags and lines, and “breeding stands” used to immobilize female dogs. At Justin Love’s residence, canine blood was found on the floor, walls, and ceiling of the basement, and Love had tried to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects. Another defendant who previously pleaded guilty admitted that following a fight, his dog died in his car on the way home.
Today’s sentencing brings to a close Operation Grand Champion, a multi-jurisdictional federal dog fighting investigation which commenced in 2015 and resulted in the convictions of 12 defendants in four federal districts. The 12 defendants were sentenced to a total of 315 months in prison. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” As a result of the investigation, 113 dogs were rescued and either surrendered or forfeited to the government.
Judge Peter G. Sheridan presided over the trial and imposed the sentences.
The government was represented in the Trenton proceedings by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
Final Defendants Sentenced in Multi-State Dog Fighting ProsecutionRead the Press Release
TRENTON, N.J. – The last of 12 defendants to be convicted for their roles in multi-state dog fighting conspiracies was sentenced today, U.S. Attorney Craig Carpenito of the District of New Jersey and Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division announced.
Justin Love, 39, of Sewell, New Jersey, was sentenced to 54 months in prison. Love was previously convicted of one count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, six counts of possessing a dog intended for use in an animal fighting venture, and two counts of purchasing and receiving a dog intended for use in an animal fighting venture. He was convicted following a trial before U.S. District Judge Peter G. Sheridan, who imposed the sentence today in Trenton federal court.
Robert A. Elliott Sr., 50, of Millville, New Jersey, and Dajwan Ware, 46, of Fort Wayne, Indiana, were each sentenced in May 2019 to two years in prison. Both had been convicted of violating the Animal Welfare Act.
Today’s sentencing brings to a close Operation Grand Champion, a multi-jurisdictional federal dog fighting investigation which commenced in 2015 and resulted in the convictions of 12 defendants in four federal districts. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” As a result of the investigation, 113 dogs were rescued and either surrendered or forfeited to the government
“Dog fighting exacts a steep toll on animals, local animal shelters, charitable humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “We applaud our local and federal partners who worked so tirelessly to investigate this case and bring the offenders to justice.”
“Our justice system will not tolerate the torment and death of animals in the fighting ring, as the sentencings in this case demonstrate,” Assistant Attorney General Clark said. “Although this landmark case is over, we continue to place a high priority on pursuing and prosecuting illegal animal fighting ventures across the country.”
According to documents filed in these cases, statements made in court and the evidence at trial:
The defendants and their associates regularly fought dogs – including regularly to the death – and repeatedly trafficked in dogs with other dog fighters across several states so that those dogs could be used in dog fights. They also maintained significant numbers of fighting dogs and substantial dog fighting equipment such as dog treadmills, intravenous drug bags and lines, and “breeding stands” used to immobilize female dogs. At Love’s residence, canine blood was found on the floor, walls, and ceiling of the basement, and Love had tried to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects. Another defendant who previously pleaded guilty admitted that following a fight, his dog died in his car on the way home.
In addition to the prison term, Judge Sheridan sentenced Love to three years of supervised release and fined him $9,000.
The government was represented in the Trenton proceedings by Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the FBI.
Final Defendant in Drug Gang That Operated in A Local Housing Project Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Tarrell Hendrix, 35, of Lackawanna, NY, pleaded guilty before Senior U.S. District Judge William M. Skrenty to possession with intent to distribute, and distribution of, crack cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Jeremiah Lenihan and Laura A. Higgins, who are handling the case, stated that the defendant was arrested in December 2014 along with 19 others and charged with engaging in narcotics trafficking in the Gates Housing Project, a housing facility owned and operated by the Lackawanna Municipal Housing Authority. Hendrix sold a quantity of crack cocaine to an individual working with investigators on two separate occasions in August 2014.
During the course of the drug trafficking operation, Hendrix and his co-defendants conducted open air drug sales in and around the public housing project including hand to hand transactions. This was done in close proximity to playgrounds and recreational areas where children living in the housing project would play.
Hendrix is the final defendant to be convicted in this case.
The indictments are the culmination of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel, and the Federal Bureau of Investigation’s Safe Street’s Task Force, under the direction of Special Agent-in-Charge Gary Loeffert. Additional assistance was provided by the U.S. Marshal Service, under the direction of Marshal Charles Salina, and the Tonawanda Police Department, under the direction of Chief Jerome Uschold.
Sentencing is scheduled for October 2, 2019, at 11:00 a.m. before Judge Skretny.
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Farmington Man Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD - Alexander A. Tsiros, 37, of Farmington, pleaded guilty in federal court to drug trafficking and firearms offenses, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on September 7, 2018, Milton Police Department received a call from an individual who reported that Tsiros was in possession of a black handgun.
Tsiros was later arrested in Dover for violating a protective order. During the stop, police officers noticed a backpack on the front seat of his vehicle. The Farmington Police Department executed a search warrant and found a Hi-Point C9, nine millimeter pistol, a black nylon holster, and ammunitions. Also recovered were a bag of crystal methamphetamine, packaging material, and drug paraphernalia. Tsiros is a convicted felon and prohibited from possessing a firearm.
Tsiros is scheduled to be sentenced on October 9, 2019.
“Drugs and guns are a deadly combination that present a serious threat to public safety,” said U.S. Attorney Murray. “Federal law prohibits convicted felons from possessing firearms. Through Project Safe Neighborhoods, we are working closely with our law enforcement partners to identify and prosecute armed criminals in order to protect the citizens of the Granite State.”
“Working with our law enforcement partners to combat violent crime and to keep guns out of the hands of criminals and off the streets is ATF’s top priority,” said Special Agent in Charge Kelly D. Brady of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “Today’s guilty plea is another example of the importance of law enforcement partnerships and their effectiveness in protecting the safety and security of communities.”
This matter was investigated by the Farmington Police Department, Milton Police Department, Dover Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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