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Tuesday 21 May 2019
Alleged Members of the Simon City Royals Indicted on Federal Racketeering ChargersRead the Press Release
OXFORD, MS. - William C. Lamar, U.S. Attorney for the Northern District of Mississippi, announced today that several alleged members of the Simon City Royals have been charged in a two-count indictment for participating in a violent assault in aid of a racketeering enterprise. The indictment was returned by a grand jury on April 23, 2019, and unsealed today in the U.S. District Court of the Northern District of Mississippi.
According to court documents, the Simon City Royals is a national gang with a highly organized structure including board members and Ambassadors who each control geographic regions. The scope of the Simon City Royals’ crimes is wide-ranging and consistent throughout the national operation. The gang protects its power and operation through threats, intimidation and violence, including murder, attempted murder, identity fraud and obstruction of justice.
Investigation has shown that the Simon City Royals is active within correctional facilities in the State of Mississippi, and the organization is primarily overseen by members of the organization who are incarcerated within the correctional facilities. Once a correctional facility has enough members of the “Folk Nation,” primarily Simon City Royals and Gangster Disciples, to form a hierarchy within the facility, they are considered “plugged in,” or part of the Simon City Royal organization. Members are required to submit reports daily to the board over each facility that tracks money earned, disciplinary actions, and any violence/security threats that occur.
The Indictment charged several individuals for their involvement in a prison stabbing that occurred at the EMCF prison facility located in Meridian, Mississippi, including: WILTON JOHNSON a/k/a BIG BOI, JEREMY SMITH a/k/a LIL ONE, CARL MCMILLIAN, JAMES VAUGHN a/k/a SIR FLUTE, JUSTIN HANNAH, and JOE JOHNSON.
All the defendants appeared before U.S. Magistrate Judge David Sanders on Monday and are scheduled for arraignments and detention hearings on Thursday, May 23, 2019, at 2:30pm.
Following the publication of the indictments, U.S. Attorney Lamar emphasized his commitment to combatting illegal gang activity and violence. “The prosecution of violent crime, and those individuals who perpetrate it, is a top priority for the U.S. Attorney’s Office and our partners. We will continue to devote our time, efforts, and resources to the investigation and prosecution of those gangs who threaten our citizens and communities with their illegal activities.”
William McCrary, Assistant Special Agent in Charge for ATF, New Orleans Field Division, stated: “ATF and our law enforcement partners are committed to reducing violent crime in the state of Mississippi. These indictments are an example of our ongoing commitment to dismantling violent gangs."
The case is being investigated by a multi-agency task force consisting of agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and investigators with the Mississippi Department of Corrections. The case is being prosecuted by Assistant U.S. Attorney Sam Stringfellow of the U.S. Attorney’s Office in the Northern District of Mississippi, and Christopher Taylor from the Department of Justice, Organized Crime and Gang Section.
The public is reminded that an indictment is not evidence of guilt and that all individuals are presumed innocent until proven guilty.
Agency Village Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that an Agency Village, South Dakota, man convicted of sexual abuse of a minor was sentenced on May 20, 2019, by U.S. District Jude Charles B. Kornmann.
Sylanus Flute, age 25, was sentenced to 50 months in federal prison, to be followed by 5 years of supervised release. He was ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, between February and April of 2017, Flute engaged in sexual acts with a juvenile female under the age of 16. Flute was over 22 years old when he engaged in the sexual acts. The sexual acts were nonconsensual.
The investigation was conducted by the Federal Bureau of Investigation and the Sisseton-Wahpeton Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Flute was remanded to the custody of the U.S. Marshals Service.
Monday 20 May 2019
York Man Convicted for Robbery and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Johnson, age 51, of York, Pennsylvania, was convicted on May 16, 2019, for Hobbs Act robbery and discharging a firearm during a crime of violence after a two-day jury trial before Senior U.S. District Court Judge Sylvia H. Rambo.
According to U.S. Attorney David J. Freed, Johnson and his co-conspirator robbed and shot the victim in the head on Girard Avenue, York, on January 9, 2016. During the investigation, law enforcement officers recovered the gun used to shoot the victim, a stolen Smith and Wesson 9mm caliber semiautomatic pistol, from Johnson’s co-conspirator during her arrest on January 13, 2016.
Testimony established that the victim remained in a comatose state for at least four months following the shooting. The victim required three brain surgeries and other life-saving medical interventions to repair the damage caused by Johnson and his co-conspirator.
Based on Johnson’s conviction for discharging a firearm during a crime of violence, he will be subject to an enhanced penalty requiring a mandatory minimum of 10 years’ imprisonment, which must be served consecutively to any sentence Judge Rambo imposes on the Hobbs Act robbery conviction.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorneys William A. Behe and Meredith A. Taylor prosecuted the case.
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.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Worcester Woman Sentenced for Role in Two Methamphetamine ConspiraciesRead the Press Release
BOSTON – A Worcester woman was sentenced today in federal court in Worcester for methamphetamine offenses.
Mindy Doherty, 35, was sentenced by U.S. District Judge Timothy S. Hillman to four years in prison and four years of supervised release. In February 2019, Doherty pleaded guilty to two counts of methamphetamine conspiracy.
In 2016, Doherty accepted packages of methamphetamine at her Worcester residence and wired money to an individual in California who was involved in the scheme. Doherty also shipped methamphetamine to Brian Zukowski, a co-conspirator who was in Florida, via Federal Express and U.S. Postal Service Priority Mail. Doherty sold methamphetamine to various individuals in Massachusetts and wired a portion of the proceeds to Zukowski or deposited proceeds into Zukowski’s bank account.
As part of a separate conspiracy, Doherty accepted packages of methamphetamine at her Worcester residence on behalf of another co-conspirator, Adam Germano, and subsequently provided a portion of this methamphetamine to Germano. Doherty traveled with Germano to Texas to acquire methamphetamine, and she carried thousands of dollars of cash on the flight. Doherty also wired money to Germano to be used for the acquisition of methamphetamine in Texas and Nevada. Even after Germano was arrested in March 2017, Doherty continued to distribute methamphetamine in and around Worcester.
Germano and Zukowski have pleaded guilty to methamphetamine-related charges. In November 2018, Zukowski was sentenced to 28 months in prison. Germano was sentenced in February 2019 to 15 years in prison.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.
Virginia Man Sentenced to 19 Months in Prison for Role in Medicare FraudRead the Press Release
Ocean County Co-Defendant Recently Sentenced to 13 Months in Prison
TRENTON, N.J. – A Virginia man was sentenced today to 19 months in prison for his role in a scheme that used the purported non-profit The Good Samaritans of America to defraud the Medicare Program of more than $525,000 by convincing hundreds of senior citizens to submit to genetic testing, U.S. Attorney Craig Carpenito announced.
Kenneth Johnson, 39, of Lorton, Virginia, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiring to wrongfully access individually identifiable information.
His co-defendants also previously pleaded guilty before Judge Thompson; Sheila Kahl, 47, of Ocean County, was sentenced May 14, 2019, to 13 months in prison, and Seth Rehfuss, 44, of Somerset, New Jersey, was sentenced May 10, 2019, to 50 months in prison.
According to documents filed in this case and statements made in court:
Rehfuss used The Good Samaritans of America to gain access to groups of senior citizens in various low-income senior citizen housing complexes and persuaded them to submit to genetic tests without any involvement of a health care professional. Contrary to what he told the senior citizens and staff at the housing complexes, Rehfuss was a sales representative for laboratories, a fact he concealed from his targets. In order to convince senior citizens to submit to genetic testing, he used fear-based tactics during the presentations, including suggesting the senior citizens would be vulnerable to heart attacks, stroke, cancer and suicide if they did not have the genetic testing.
To get the tests authorized, Rehfuss used advertisements on Craigslist to recruit health care providers for the scheme. The health care providers were paid thousands of dollars per month by Rehfuss and others to sign their names to requisition forms authorizing testing for patients they never examined or had any interaction with. Rehfuss and his conspirators, including Kahl and Johnson, established email accounts, phone numbers, and made-up “office manager” names for the requisition forms that made it seem as though the health care providers were actually treating the patients being swabbed and would be evaluating the test results.
Rehfuss, Kahl, Johnson, and others caused the Medicare program to pay two clinical laboratories for the fraudulent test claims that the scheme generated. They obtained and divided more than $100,000 in commission payments from the laboratories.
The conspirators were also actively working towards expanding the scheme outside of New Jersey into other states, including: Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.
In addition to the prison term, Judge Thompson sentenced Johnson to three years of supervised release, ordered him to pay restitution of $525,000 and forfeiture of $525,000.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; special agents of the U.S. Attorney’s Office for the District of New Jersey; and the Cape May County Department of Aging and Disability Services, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman, Bernard J. Cooney and Sara F. Merin, of the Health Care & Government Fraud Unit in Newark.
Defense counsel:
Johnson: David B. Glazer Esq., Livingston, New Jersey
Kahl: Stacy A. Biancamano Esq., Cranford, New Jersey
Rehfuss: Aidan P. O’Connor Esq., Hackensack, New JerseyU.S. Virgins Islands U.S. Attorney’s Office Hosts Organized Crime Drug Enforcement Task Force (OCDETF) Training for Caribbean Prosecutors and AgentsRead the Press Release
United States Attorney Gretchen C.F. Shappert announced today that her office will be hosting a multi-district training this week, focusing on the investigation and prosecution of transnational organized drug trafficking crime as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. "The principal mission of OCDETF is to identify, disrupt, and dismantle the most serious drug trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply", Shappert said. "We welcome the opportunity to meet and discuss new strategies and techniques to apprehend and prosecute the large-scale drug organizations that create misery and violence in our communities."
This week’s training at the U.S. Attorney’s Office in St. Thomas will include a presentation by the Director of OCDETF, Adam W. Cohen. Cohen, who has extensive experience prosecuting narcotics and violent crime, will provide an update on recent trends and best practices. Federal prosecutors and agents from Florida, Puerto Rico, and the Virgin Islands will also discuss law enforcement issues unique to the Caribbean region.
OCDETF was established in 1982 to mount a comprehensive attack and reduce the supply of illegal drugs in the United States and to diminish the violence and other criminal activity associated with the drug trade. Since OCDETF’s inception, tens of thousands of arrests have been made, and hundreds of tons of narcotics and billions in currency, real property, and conveyances have been seized.
"The OCDETF program has been described as the Swiss army knife of narcotics interdiction. OCDETF agents and prosecutors are uniquely trained and qualified to use modern technology, federal databases, human intelligence, and old-fashioned police work, in order to get the job done," said Shappert. "We are proud to host this important training in the USVI."
Tyler County woman admits to threat against President TrumpRead the Press Release
WHEELING, WEST VIRGINIA – Taryn Corinne Henthorn, of Middlebourne, West Virginia, has admitted to threatening the President’s life, United States Attorney Bill Powell announced.
Henthorn, age 25, pled guilty to one count of “Threatening to Kill the President of the United States.” Henthorn admitted to threatening to kill President Donald Trump in January 2019 in Tyler County.
Henthorn faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randolph J. Bernard is prosecuting the case on behalf of the government. The United States Secret Service investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two California Men Sentenced for Ketchikan Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that two California men have been sentenced for their roles in a drug trafficking conspiracy to transport methamphetamine and heroin from the Lower 48 to Ketchikan for distribution.
Arthur Castillo, 32, of Fresno, California, and Alfonso Francisco Sandoval, 32, of Clovis, California, were both sentenced in Juneau today by U.S. District Judge Timothy M. Burgess to serve 11 years and 6.5 years in federal prison, respectively. In 2018, Castillo and Sandoval both pleaded guilty to drug conspiracy charges.
According to court documents, beginning in June 2017 and continuing through October 2017, Castillo conspired with Sandoval and other co-conspirators, to distribute and to possess with the intent to distribute methamphetamine in Ketchikan, Alaska. Castillo coordinated and directed the distribution of methamphetamine and the collection of drug proceeds from co-conspirators. Castillo would then take the money to the Lower 48 to pay for additional drugs for the conspiracy.
The investigation revealed that Castillo utilized shipping methods to transport methamphetamine and other drugs to various addresses in Ketchikan, and coordinated and directed several individuals to either receive drug packages, or send drug proceeds to the source of supply in California. Sandoval joined the conspiracy by helping Castillo transport drugs to Ketchikan and by assisting in the distribution of methamphetamine and heroin by driving Castillo to drug deals and acting as a guard during drug transactions.
The total amount of drugs seized during the course of the conspiracy was approximately 753 grams of methamphetamine, 75 grams of heroin, and marijuana intended for distribution in Ketchikan. Law enforcement also seized $16,710 in drug proceeds and property, including several firearms which were used in furtherance of their drug trafficking activities. According to court documents, the amount of drugs seized is enough dosage units to supply nearly a quarter of the population of Ketchikan with methamphetamine, and nearly 750 people with heroin.
The Drug Enforcement Administration (DEA), the Alaska State Troopers (AST), and Ketchikan Police Department (KPD) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
Twice-Deported Citizen of Guatemala Sentenced to 21 Months in Prison for Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HECTOR OVIDIO DIAZ GARRIDO, 41, a citizen of Guatemala last residing in Norwalk, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 21 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, Diaz Garrido, who has never held legal status in the U.S., was deported from the U.S. to Guatemala in June 2011 following his March 2010 conviction in Connecticut Superior Court in Norwalk for felony assault on a police officer.
In April 2012, Diaz Garrido was encountered by U.S. Border Patrol in Weslaco, Texas. His prior order of removal was reinstated and he was again deported to Guatemala.
On November 6, 2014, Diaz Garrido, using the name “Jimy Diaz,” was arrested by the Norwalk Police Department and charged with operating under the influence of alcohol. On March 20, 2015, Diaz Garrido, again using the name “Jimy Diaz,” was arrested by Norwalk Police on a charge of operating a motor vehicle while under suspension. Diaz Garrido’s true identity was confirmed through fingerprint analysis in November 2018 after he was convicted of operating while under the influence, operating a motor vehicle while under suspension, and three separate counts of failure to appear, and after he had served his state sentence.
On February 22, 2019, Diaz Garrido pleaded guilty in federal court to reentry of a removed alien.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
State Grant Recipient Sentenced to Prison for Mailing Falsified Grant Reimbursement RequestsRead the Press Release
CHARLESTON, W.Va. – An administrator for a company that received a state grant for a recovery housing program was sentenced today for committing mail fraud relating to falsifying grant reimbursement requests to the State of West Virginia, announced United States Attorney Mike Stuart. David Stevens, 57, was sentenced to 6 months in prison and 6 months of home confinement, and was ordered to pay more than $137,000 in restitution for his role in defrauding the State of West Virginia of grant funds designated for a planned recovery housing program in Mount Hope, West Virginia. Stuart commended the investigative efforts of the West Virginia Commission on Special Investigations and the Federal Bureau of Investigation.
“Defrauding West Virginia means defrauding West Virginia taxpayers,” said United States Attorney Mike Stuart. “Stevens received public funds for a substance use treatment program. Our state has suffered greatly as a result of the opioid epidemic. Treatment and recovery dollars are critical to insure West Virginians with substance use disorder can get much needed services and support. As always, we will hold accountable those who misuse or misappropriate taxpayer dollars.”
Stevens started Open Minds Recovery Services, Inc. (“Open Minds”) in early 2016 and then received a $501,500 reimbursement-based grant from the State of West Virginia for a recovery housing program that was supposed to work with adult males in need of substance use treatment and mental health care. Stevens knew the grant required Open Minds to seek reimbursement for already-expended, allowable grant costs. However, in July 2016, Stevens begin requesting reimbursement from the West Virginia Department of Justice and Community Services for funds that Open Minds had not actually expended. Instead of using all state grant funds on the Open Minds project, Stevens admitted that he spent some funds on himself and his own companies.
Former Assistant United States Attorney Meredith George Thomas and Assistant United States Attorney Stefan Hasselblad handled the prosecution. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing.
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St. Louis Man Pleads Guilty in a Tax Refund SchemeRead the Press Release
St. Louis MO --- Tyron F. Kemp, 30, of St. Louis and Riverview, Florida, pled guilty today to two counts of filing false claims with the Internal Revenue Service as part of a bogus tax refund scheme. The maximum punishment is 10 years in prison and a fine of $500,000.00. Kemp appeared before United States District Judge Audrey F. Fleissig. Sentencing is scheduled for September 4, 2019.
In court papers, Kemp admitted to electronically filing 37 false tax returns with the IRS from October 2013 through March 2015. A total of $155,775.00 in refunds were claimed on those returns and funds totaling $54,390.00 were paid out by the IRS. Kemp admitted that he caused those refunds to be paid out to prepaid cards, which he controlled, and that he spent the money, most of it in St. Louis. He electronically filed most of the returns from a location in the 3000 block of Delmar in the City of St. Louis.
Kemp spent most of his adolescent years, including high school, in Tucson AZ. He moved back to St. Louis in 2013 and began filing the false tax returns using names and personal identifiers of persons he knew in Tucson---all without their permission. In addition to compromising names and social security numbers, Kemp made unauthorized use of the names of minor children in claiming dependent exemptions on the returns. He also prepared and submitted W-2 forms with the returns falsely showing wage amounts and taxes withheld in amounts designed to generate refunds. He often showed APAC Customer Services, Inc., one of his former employers in Tucson, as the employer business on those false W-2 forms.
Kemp pled guilty to two false claim charges in which he included the names of individuals he was familiar with in Tucson. Both returns included addresses with which those persons were not associated and W-2 forms falsely showing APAC as the employer. The refunds claimed on those returns were $5,277.20 and $5,044.00, respectively.
The case was investigated by the IRS Criminal Investigation offices in Tucson and St. Louis.
Scranton Man Indicted for Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Bomboy, age 59, of Scranton, Pennsylvania, was indicted on May 14, 2019, by a federal grand jury for conspiring to distribute more than 50 grams of methamphetamine.
According to United States Attorney David J. Freed, the indictment alleges that Bomboy participated in a conspiracy to distribute more than 50 grams of methamphetamine in the Scranton area between February and April 2019. The indictment also charges Bomboy with possession with intent to distribute methamphetamine.
The case was investigated by the Scranton Police Department and the Drug Enforcement Administration. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the charge under federal law is up to forty years in prison, a term of supervised release following imprisonment, and a $5,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Schertz Man Arrested, Charged with Pointing Laser at Aircraft Flying OverheadRead the Press Release
In San Antonio today, a federal indictment was unsealed charging 37–year-old Justin John Shorey of Schertz, TX, with aiming a laser pointer at an aircraft, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs and San Antonio Police Chief William McManus.
The indictment alleges that on February 17, 2019, Shorey knowingly aimed the beam of a laser pointer at a San Antonio Police Department helicopter and the flight path thereof. Federal authorities arrested Shorey without incident late Friday.
“Aiming a laser pointer at an aircraft is incredibly dangerous. We won’t hesitate to hold anyone who engages in that reprehensible behavior fully accountable,” stated U.S. Attorney Bash.
“The actions of this defendant was not just a safety concern for the officers in the aircraft, but it also put the public in significant danger. We are pleased that the defendant will be held accountable for his dangerous actions,” stated Chief McManus
Upon conviction, the defendant faces up to five years in federal prison and a maximum $250,000 fine.
If you have information about a lasing incident, contact the San Antonio FBI at 210-225-6741. If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.
This indictment resulted from an investigation conducted by FBI agents together with the San Antonio Police Department. Assistant U.S. Attorneys Mark Roomberg and William R. Harris are prosecuting this case on behalf of the Government.
It is important to note that a complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Saigon Sunset Update: Michigan Man Sentenced for His Role in Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Michigan man caught with heroin in August 2017 was sentenced today to 18 months for his role in a federal drug conspiracy, announced United States Attorney Mike Stuart. Nyanzangusa Baldwin, also known as “Botch,” 45, previously pled guilty to an indictment charging him with conspiracy to distribute heroin.
“Another Saigon Sunset and Detroit drug dealer behind bars,” said United States Attorney Mike Stuart. “I’ve said from day one that tough is how we’re going to treat drug dealers. And tough we are. All defendants charged last year as part of the Peterson drug trafficking organization have been convicted.”
Baldwin had admitted Manget Peterson asked him to come to Huntington in August 2017 to distribute heroin. He admitted that he distributed heroin from the Ramada Inn Motel in Huntington, West Virginia in August 2017. Officers executed a search warrant on the motel room and seized approximately 35 grams of heroin.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
This investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
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Port Angeles, Washington, Man Arrested for 2016 Laser Pointer Incident with Coast Guard HelicopterRead the Press Release
A 33-year-old Port Angeles, Washington, man was arrested this morning in connection with a September 26, 2016, laser pointer strike on a U.S. Coast Guard helicopter, announced U.S. Attorney Brian T. Moran. RANDALL MUCK was indicted by a grand jury last week, charging him with aiming a laser pointer at an aircraft and making false statements to government agents. MUCK will make his initial appearance in U.S. District Court in Tacoma at 2:30 today.
The indictment alleges that on the evening of September 26, 2016, MUCK pointed a laser beam at a Coast Guard helicopter. According to reports of the incident, the MH-65 Dolphin helicopter was descending when it was hit by a laser that originated near Fourth and Hill Streets in Port Angeles. Laser light can cause temporary loss of vision and force an air crew to abort its mission. In this incident, no one suffered permanent damage, but the crew had to return to base and be assessed medically before returning to duty. Helicopter crews from Whidbey Island and Oregon had to cover the Port Angeles area of responsibility while the air crew was being cleared to return for duty.
The subsequent investigation identified MUCK as a suspect.
The indictment also alleges that on May 3, 2018, when questioned by government agents, MUCK made false statements to the FBI claiming that he did not see the Coast Guard helicopter in the sky on September 26, 2016.
Both counts are punishable by up to five years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Coast Guard Investigative Services and the FBI. The case is being prosecuted by Assistant United States Attorneys Grady Leupold and André Peñalver.
Pendleton County man admits to drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jamie William Sites, of Circleville, West Virginia, has admitted to methamphetamine distribution, United States Attorney Bill Powell announced.
Sites, age 42, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possess a Firearm in Furtherance of a Drug Trafficking Crime.” Sites admitted to distributing methamphetamine in November 2017 in Pocahontas County and having a .22 caliber pistol during a drug crime in September 2018 in Pendleton County.
Sites faces not less than five and up to 40 years incarceration and a fine of up to $5,000,000 for the drug count and faces at least five years incarceration and up to a $250,000 fine for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; the Grant County Sheriff’s Office; and the Moorefield Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Owner of Miami Home Health Agency Sentenced to 30 Months in Prison for Role in Medicare Fraud SchemeRead the Press Release
An owner of a now-defunct Miami, Florida, home health care agency was sentenced today to 30 months in prison for his participation in a scheme that caused Medicare to pay approximately $1 million in false and fraudulent claims for home health care services that were never provided.
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 and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Dennys Hernandez, 47, of Riga, Michigan, was sentenced by U.S. District Judge Robert N. Scola of the Southern District of Florida. Judge Scola also ordered Hernandez to pay $951,473 in restitution, jointly and severally with his co-conspirators, and to forfeit the same amount. Hernandez pleaded guilty in March 2019 to one count of conspiracy to commit health care fraud and wire fraud.
According to admissions made as part of his plea agreement, Hernandez was an undisclosed co-owner of Medsel Home Health Care Corp. (Medsel), which purported to operate as a home health care agency. Hernandez admitted that he and his co-conspirators used Medsel to fraudulently bill Medicare by submitting and causing the submission of claims for home health care services that were not provided to anyone. As a result of his participation in the scheme and the submission of false and fraudulent claims, Medicare paid Medsel at least $950,000, Hernandez admitted.
Two of Hernandez’s co-conspirators were charged in separate cases related to Medsel. Elanier Gonzalez Moncho, 33, of Miami, the nominee owner of Medsel, was sentenced to 18 months in prison for his role in the fraud. Rafael Arias, 54, of Miami, the owner and operator of numerous Miami-area home health agencies, including Medsel, was sentenced to 240 months in prison for his role in a $66 million conspiracy to defraud the Medicare program.
The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys David Snider and Kevin Lowell of the Fraud Section prosecuted the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Operation Rio Grande Drug Task Force Case Leads to 130-Month Sentence for Drug DealerRead the Press Release
SALT LAKE CITY – A defendant charged as a part of an Operation Rio Grande Drug Task Force investigation will spend 130 months in federal prison after pleading guilty to possession of a firearm and possession of methamphetamine with intent to distribute. U.S. District Judge Dale A. Kimball imposed the sentence in federal court Thursday.
As a part of a plea agreement reached with federal prosecutors in February, Christopher Eugene Hooper, aka Messy, age 30, of Kearns, admitted he possessed a Sig .380 handgun with a loaded magazine and approximately 38 grams of methamphetamine. He admitted he intended to distribute the methamphetamine to another person.
Hooper was involved in a traffic stop executed by two task force members on Feb. 21, 2018, in the area of North Temple and Redwood Road. A three-count federal indictment returned in March 2018 charged him with possession of a firearm and ammunition after a felony conviction, possession of methamphetamine with intent to distribute, and carrying a firearm during and in relation to a drug trafficking offense. Prosecutors dismissed the second firearm count, carrying a firearm during a drug trafficking offense, at sentencing.
“This is a significant sentence for someone with a long record of felony convictions, including other drug charges, an attempted assault, theft, and assault on a police officer,” U.S. Attorney John W. Huber said today. “Convicted felon drug traffickers carrying loaded firearms is a recipe for disaster. Getting these criminals out of our neighborhoods and into federal prison makes our neighborhoods safer for all of us.”
"The Utah Department of Public Safety is working to reduce violent crime, including situations involving the use of a firearm. These instances pose a threat to public safety,” Captain Jared Garcia of the Utah Department of Public Safety’s State Bureau of Investigation (SBI) said.
Garcia said members of the Utah Crime Gun Intelligence Center, which includes investigators, intelligence analysts, and crime lab personnel from several local, state and federal agencies, are actively working several cases. “This team approach identifies and stops violent offenders and prevents victimization,” Garcia said.
In another SBI case resulting from Operation Rio Grande, sentencing is set for July 31, 2019, for Tohi Ryan Ngata, aka Leaaetohi Ryan Ngata, aka Toni Ngata-Latu, aka Cuzloc, age 35, of Salt Lake City. Ngata pleaded guilty to possession of a firearm and ammunition following a felony conviction and possession of heroin with intent to distribute in April. Ngata fled from officers attempting to stop him for a moving violation on a bicycle in January 2018. Officers observed that Ngata was reaching toward his waistband. Ngata was detained a short time later. During a subsequent search, officers found a loaded handgun in his waistband and heroin. Ngata’s plea agreement includes a stipulated sentence of 60 months in federal prison.
Ohio woman sentenced for using someone else’s passportRead the Press Release
CLARKSBURG, WEST VIRGINIA – Khourtney Alexandra King, of Canton, Ohio, was sentenced today to eight months incarceration for using another person’s passport, United States Attorney Bill Powell announced.
King, age 29, pled guilty to one count of “Misuse of a Passport” in March 2019. King admitted to giving another person’s passport to her employer as proof of identity and citizenship in November 2017 in Ohio County.Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The U.S. Department of State’s Diplomatic Security Service (DSS) investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Oak Springs Man Sentenced to Seven Years’ Prison for Domestic ViolenceRead the Press Release
PHOENIX – Today, May 20, 2019, Shaun Gui Hale, 33, of Oak Springs, Ariz., was sentenced by U.S. District Judge John J. Tuchi to seven years’ imprisonment. Hale had previously pleaded guilty to domestic assault by strangling or suffocation, a domestic violence offense.
During the night of April 29-30, 2017, Hale perpetrated a prolonged assault against the victim while they were alone together in Hale’s residence. Hale repeatedly punched the victim, and also strangled her into unconsciousness, inflicting serious injuries. Both Hale and the victim were members of the Navajo Nation, and the offense occurred in Oak Springs, on the Navajo Nation Indian Reservation.
The investigation was conducted by agents of the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Krista J. Wood, District of Arizona, Phoenix.
CASE NUMBER: CR 17-08127-JJT
RELEASE NUMBER: 2019-066_Hale
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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North Carolina Office Manager Pleads Guilty to Employment Tax FraudRead the Press Release
A New London, North Carolina, woman pleaded guilty to employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina.
Terra Dawn Ferguson pleaded guilty to one count of failing to collect, account for, or pay over payroll taxes for the employment tax quarter ending Dec. 31, 2015.
According to court documents, from approximately 1992 through at least September 2016, Ferguson was employed as an office manager at a pediatric office in Randolph County, North Carolina. As office manager, Ferguson had complete control over the pediatric office’s finances. Ferguson was also responsible for collecting, accounting for, and paying over to the Internal Revenue Service (IRS) payroll taxes that were withheld from the wages of the business’ employees. From March 2011 through September 2016, Ferguson withheld approximately $78,937 in payroll taxes from employees’ paychecks and willfully failed to pay that money to the IRS. Ferguson also failed to pay $35,472 for the employer’s share of employment taxes. Instead of paying these taxes to the IRS, Ferguson paid her personal credit card bills, funded personal business ventures involving a mountain cabin rental and a bar, paid for personal vacations, and issued checks to herself totaling $1.4 million, all from the business’ bank account.
Additionally, Ferguson prepared false individual income tax returns for her employer that falsely underreported gross receipts and inflated mortgage interest deductions, causing an additional tax loss of over $250,000. The total tax loss resulting from Ferguson’s fraudulent conduct is approximately $374,101.
Sentencing is scheduled for Aug. 27, 2019. Ferguson faces a statutory maximum of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mara Strier and Alexander Effendi of the Tax Division and Assistant United States Attorney Frank Chut, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Orleans Man Sentenced for Firearms Charges and Heroin ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that KENDALL CELESTINE, age 21, of New Orleans, was sentenced Thursday, May 16, 2019 for federal firearms and narcotics violations.
According to court documents, CELESTINE, conspired with others to distribute and possess with intent to distribute one hundred grams or more of heroin. Additionally, on January 24, 2018, CELESTINE possessed an AK-47-style pistol in furtherance of the heroin trafficking conspiracy.
U.S. District Court Judge Eldon E. Fallon sentenced CELESTINE to sixty (60) months for Count 1 of the 7th Superseding Indictment and sixty (60) months for Count 16 of the 7th Superseding Indictment, to be served consecutively for a total term of imprisonment of one hundred twenty (120) months. Upon release, CELESTINE, will serve a term of four (4) years of supervised release and must pay a $200.00 assessment fee.
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 New Orleans Police Department Multi-Agency Gang Unit, and the Drug Enforcement Administration 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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Native Mob Gang Member Sentenced to 366 Months in Prison for Assault in Aid of Racketeering, Witness RetaliationRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DAKOTA JAMES LAFAVE, aka “Biggs,” 30, to 366 months in prison for assault with a dangerous weapon in aid of racketeering, witness retaliation, and discharge of a firearm in furtherance of a crime of violence. LAFAVE, who pleaded guilty on January 22, 2019, was sentenced before Chief Judge John R. Tunheim in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, since 2006, LAFAVE has been a member of the Native Mob gang, a criminal enterprise whose members and associates engage in acts of violence, including murder, attempted murder, assault, robbery, and threats of violence in order to preserve and protect power, territory, reputation, and profits of the enterprise. Members and associates of the Native Mob meet regularly to discuss, among other things, acts of violence and crimes committed against rival gang members, gang rules and by-laws, law enforcement interactions, and to share with one another the identities of individuals who might be cooperating with law enforcement and propose actions to be taken against those individuals.
According to the defendant’s guilty plea and documents filed in court, on October 27, 2017, LAFAVE shot a former Native Mob gang member in the back. LAFAVE admitted that his motive for the shooting was two-fold: first, it was an act of retaliation against that individual for testifying against Native Mob gang members in a federal racketeering conspiracy trial in 2013; and second, an unprovoked attack such as this would maintain or increase LAFAVE’s position within the Native Mob.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, the Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Mille Lacs Tribal Police Department, and the Minnesota Department of Corrections.
Assistant U.S. Attorneys Andrew R. Winter and Bradley Endicott prosecuted the case.
Defendant Information:
DAKOTA JAMES LAFAVE, aka “Biggs,” 30
Fond du Lac, Minn.
Convicted:
- Assault with a dangerous weapon in aid of racketeering, 1 count
- Witness retaliation (bodily injury), 1 count
- Discharge of a firearm during and in relation to crimes of violence, 1 count
Sentenced:
- 366 months in prison
- 3 years Supervised Release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Michigan Doctor Pleads Guilty to Role in $2.5 Million Medicare Fraud SchemeRead the Press Release
A Southfield, Michigan-based doctor pleaded guilty today for his role in a scheme involving approximately $2.5 million in fraudulent Medicare claims for home health and physician services that were medically unnecessary, not provided and procured through the payment of illegal kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Thomas Mays, M.D., 65, of Farmington Hills, Michigan, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Sean F. Cox of the Eastern District of Michigan. Sentencing has been scheduled for Sept. 20, 2019, before Judge Cox.
As part of his guilty plea, Mays admitted that he offered and provided kickbacks in the form of prescriptions for controlled substances to Medicare beneficiaries who agreed to accept his purported physician services and referrals for home health care services. He further admitted that he prescribed medically unnecessary home health care services to Medicare beneficiaries. The prescriptions, in turn, were used by home health agencies to bill Medicare for home health services purportedly provided to Medicare beneficiaries. Mays billed Medicare for physician services that he purportedly provided to Medicare beneficiaries that were medically unnecessary, never provided and acquired through kickbacks, he admitted.
According to admissions made in connection with his plea, from 2012 to 2018, the intended losses to Medicare as a result of the scheme were approximately $2.5 million.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section. Trial Attorneys Jay McCormack and Tom Tynan of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
McAlester Man Sentenced to 60 Months for Possession of Firearm and AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that McAlester resident Darryl Emanuel Bickham, Jr., age 34, was sentenced to 60 months’ imprisonment and three years’ supervised release for Felon in Possession of Firearm and Ammunition. The charges arose from an investigation by the McAlester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about, August 15, 2018, in the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Ruger Model P85, 9 mm caliber pistol, a firearm, and ammunition, which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “Project Safe Neighborhoods continues to bring results by bringing federal law enforcement resources to assist local police agencies. Collaborative law enforcement allows agencies to maximize their effectiveness in combating violent crime. This investigation and prosecution is an example of that.”
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Jarrod Leaman represented the United States.
Marshall County man sentenced for his role in a methamphetamine distribution operationRead the Press Release
WHEELING, WEST VIRGINIA –James Wood, of Moundsville, West Virginia, was sentenced today to 18 months incarceration for his role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Wood, age 45, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine” in February 2019. Wood admitted to conspiring with others to distribute methamphetamine in 2017 and 2018 in Marshall County.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Man Who Stole Critically Endangered Ring-Tailed Lemur from Santa Ana Zoo Agrees to Plead Guilty to Federal Criminal ChargeRead the Press Release
SANTA ANA, California – A man who broke into the Santa Ana Zoo after hours and stole North America’s oldest-living ring-tailed lemur in captivity to keep the endangered animal as a pet has agreed to plead guilty to a federal criminal charge.
Aquinas Kasbar, 19, of Newport Beach, has agreed to plead guilty to one misdemeanor count of unlawfully taking an endangered species. The charge carries a statutory maximum penalty of one year in federal prison and a $100,000 fine. Kasbar’s initial court appearance has been scheduled for May 28 in United States District Court in Santa Ana.
According to his plea agreement filed today, on July 27, 2018, Kasbar broke into the Santa Ana Zoo after it had closed for the day. While in the zoo, Kasbar used bolt cutters to cut a hole in the zoo’s enclosures for lemurs and capuchin monkeys, which enabled several of the animals to escape, though they were later recovered, according to court documents.
Kasbar admitted in his plea agreement to stealing Isaac, a 32-year-old, ring-tailed lemur (lemur catta), and North America’s oldest ring-tailed lemur in captivity. (The life span of a lemur typically is 20 to 25 years.) The ring-tailed lemur is on a list of the 25 most endangered primates, and ring-tailed lemurs are endangered, in part, because of the illegal pet trade, according to the plea agreement.
After stealing Isaac, Kasbar placed the animal in a plastic drawer that lacked ventilation holes, court papers state. The next day, Kasbar abandoned Isaac in front of a Newport Beach hotel, leaving him in the same plastic drawer with two notes placed on it, which read, “Lemur (with tracker)” and “This belongs to the Santa Ana Zoo it was taken last night please bring it to police,” the plea agreement states. Kasbar’s actions resulted in a loss to the Santa Ana Zoo of approximately $8,486, court papers state.
This case is being investigated by the Federal Bureau of Investigation, the United States Fish and Wildlife Service, the Newport Beach Police Department, and the Santa Ana Police Department.
This matter is being prosecuted by Assistant United States Attorneys Daniel H. Ahn of the Santa Ana Branch Office and Erik M. Silber of the Environmental and Community Safety Crimes Section.
Man Who Distributed Methamphetamine from Prison Sentenced to More Than Ten YearsRead the Press Release
A man who was responsible for distributing pounds of ice methamphetamine while he was in state prison was sentenced May 17, 2019, to ten years in federal prison.
Cash Burch, age 35, from Des Moines, Iowa, received the prison term after a February 4, 2019, guilty plea to conspiracy to distribute methamphetamine.
Evidence during the case established that while incarcerated in state prison for state felony drug charges, Burch became involved in a conspiracy to distribute ice methamphetamine. Once released from state prison, he continued his involvement in the conspiracy, ultimately distributing more than ten pounds of ice methamphetamine
Burch was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Burch was sentenced to 120 months’ imprisonment. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Burch is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department), Mid Iowa Drug Task Force (Marshalltown Police Department; Marshall County Sheriff’s Office; Tama County), and Dubuque Drug Task Force (Dubuque Police Department; Dubuque County Sheriff’s Office).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2024.
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Man Sentenced to 15 Years in Prison for Sex Trafficking of ChildrenRead the Press Release
SAN JUAN, P.R. – United States District Court Judge Francisco A. Besosa sentenced Alexis David Rivera-Castillo to 15 years in prison followed by 10 years of supervised release for sex trafficking of children, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Rivera-Castillo had plead guilty on February 11, 2019.
According to the Plea Agreement filed in February 2019, Alexis David Rivera-Castillo began an online conversation with an adult female in June 2018, on a social networking and dating application website. During their conversation, the adult female told to the defendant that she had two children ages 10 and 13. Defendant Rivera-Castillo requested to see the 10-year-old minor in underwear and have sexually explicit conduct with the minor and the adult female at a motel. Rivera-Castillo offered to give the adult female money and provide her with a car. After the adult female went to the FBI, an undercover agent posing as the adult female continued communications with Rivera-Castillo. During the communications, Rivera-Castillo coordinated to meet with the undercover agent and the minor at a motel on July 23, 2018. On that date, Rivera-Castillo arrived to the motel where he was arrested by the FBI.
“Justice was done. This sentence should serve to reassure the public that we are paying close attention to the well-being of our children, and that we will spare no expense to take child predators off the streets,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.
The criminal prosecution was handled by Assistant U.S. Attorney Elba Gorbea. The FBI was in charge of the investigation with the collaboration of the Puerto Rico Police Department.
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.
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Luzerne County Woman Sentenced to Three Years’ Imprisonment for Trading Firearms for HeroinRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stephani Taylor, age 27, of Shickshinny, Pennsylvania, was sentenced by U.S. District Court Judge Malachy E. Mannion to three years’ imprisonment to be followed by two years of supervised release for unlawfully possessing firearms in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Taylor previously admitted to trading ten firearms for heroin between December 2016 and September 2017.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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 also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Luzerne County Man Sentenced to 90 Months’ Imprisonment for Heroin Trafficking and Firearms OffensesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Wilson, age 26, of Hanover Township, Pennsylvania, was sentenced by U.S. District Court Judge Malachy E. Mannion to 90 Months’ imprisonment to be followed by three years of supervised release for distributing heroin and unlawfully possessing firearms in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Wilson previously admitted to distributing heroin between December 2016 and September 14, 2017, and possessing firearms in connection with his heroin trafficking. Wilson distributed between 40 grams and 60 grams of heroin, which is equivalent to between 1,800 and 3,000 retail bags of heroin.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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 also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Louisiana Couple Pleads Guilty to Criminal Civil Rights Charges for Abusing Woman with DisabilitiesRead the Press Release
Raylaine Knope, 42, and Terry J. Knope II, 45, pleaded guilty today in the Eastern District of Louisiana to criminal civil rights charges arising from their abuse of an adult woman with cognitive disabilities. Both defendants pleaded guilty to one count of conspiring to obtain forced, unpaid household labor and services from the victim, identified as “D.P.” Raylaine Knope also pleaded guilty to one count of forced labor and one count of misprision of a felony. Terry J. Knope II, also pleaded guilty to one count of violating D.P.’s federal Fair Housing Act rights, one count of a hate crime, and one count of misprision of a felony.
At the plea hearing, the defendants, who were married at the time of the offense, admitted that, between Aug. 13, 2015, and June 30, 2016, in Amite, Louisiana, they conspired with each other and with other members of their family to obtain D.P.’s uncompensated household labor and services through a number of means, including by force, threats of force, and physical restraint. Both defendants admitted that they forced D.P. to live in a locked backyard cage and to perform housework and yard work in exchange for food and water. The defendants admitted that they and their co-conspirators subjected D.P. to routine physical abuse, threats, and verbal and psychological abuse designed to ensure her continued compliance with the family’s orders. As examples of this abuse, the defendants admitted that Raylaine Knope once forced D.P. to eat D.P.’s deceased mother’s ashes, and Terry J. Knope II, intentionally burned D.P. with a cigarette lighter while another family member held D.P. in place so she could not escape. Raylaine Knope also admitted that she used this overarching abuse to obtain D.P.’s forced labor, and that she helped Terry J. Knope II, steal D.P.’s monthly federal disability benefits. Terry Knope further admitted that, because of D.P.’s disability, he forced D.P. to live in the locked backyard cage and shot her with a B.B. gun at close range, and that he also helped others produce methamphetamine on his property.
“The Knopes conspired to brutally coerce a vulnerable victim with disabilities to work long hours in despicable conditions with no monetary compensation,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice continues to combat human trafficking by forced labor and today’s guilty plea reflects our commitment to seeking justice for these vulnerable victims.”
“Today's guilty pleas highlight that the U.S. Attorney's Office will continue to work with the FBI and local law enforcement partners to pursue human traffickers and to seek justice on behalf of vulnerable victims," said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
“The defendants’ actions were heinous, despicable, and in-human. As a disabled person, the victim depended on her family to care for her but instead, they abused and mistreated someone who was unable to defend themselves,” said Special Agent in Charge Eric J. Rommal for the FBI New Orleans Field Office. “I am confident the courts will show them the proper sentence they deserve however, I am certain the victim will never out live these horrific memories."
Both defendants will be sentenced on Aug. 22 and face a maximum sentence of 28 years in prison.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Department of Justice’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
Louisiana Couple Pleads Guilty to Criminal Civil Rights Charges for Abusing Woman with DisabilitiesRead the Press Release
WASHINGTON – Raylaine Knope, 42, and Terry J. Knope II, 45, pleaded guilty today in the Eastern District of Louisiana to criminal civil rights charges arising from their abuse of an adult woman with cognitive disabilities. Both defendants pleaded guilty to one count of conspiring to obtain forced, unpaid household labor and services from the victim, who is identified only as “D.P.” Raylaine Knope also pleaded guilty to one count of forced labor and one count of misprision of a felony. Terry J. Knope II, also pleaded guilty to one count of violating D.P.’s federal Fair Housing Act rights, one count of a hate crime, and one count of misprision of a felony.
At the plea hearing, the defendants, who were married at the time of the offense, admitted that, between Aug. 13, 2015, and June 30, 2016, in Amite, Louisiana, they conspired with each other and with other members of their family to obtain D.P.’s uncompensated household labor and services through a number of means, including by force, threats of force, and physical restraint. Both defendants admitted that they forced D.P. to live in a locked backyard cage and to perform housework and yard work in exchange for food and water. The defendants admitted that they and their co-conspirators subjected D.P. to routine physical abuse, threats, and verbal and psychological abuse designed to ensure her continued compliance with the family’s orders. As examples of this abuse, the defendants admitted that Raylaine Knope once forced D.P. to eat D.P.’s deceased mother’s ashes, and Terry J. Knope II, intentionally burned D.P. with a cigarette lighter while another family member held D.P. in place so she could not escape. Raylaine Knope also admitted that she used this overarching abuse to obtain D.P.’s forced labor, and that she helped Terry J. Knope II, steal D.P.’s monthly federal disability benefits. Terry Knope further admitted that, because of D.P.’s disability, he forced D.P. to live in the locked backyard cage and shot her with a B.B. gun at close range, and that he also helped others produce methamphetamine on his property.
“The Knopes’ conspired to brutally coerce a vulnerable victim with disabilities to work long hours in despicable conditions with no monetary compensation,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice continues to combat human trafficking by forced labor and today’s guilty plea reflects our commitment to seeking justice for these vulnerable victims.”
“Today's guilty pleas highlight that the U.S. Attorney's Office will continue to work with the FBI and local law enforcement partners to pursue human traffickers and to seek justice on behalf of vulnerable victims," said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
“The defendants’ actions were heinous, despicable, and in-human. As a disabled person, the victim depended on her family to care for her but instead, they abused and mistreated someone who was unable to defend themselves,” said Special Agent in Charge Eric J. Rommal for the FBI New Orleans Field Office. “I am confident the courts will show them the proper sentence they deserve however, I am certain the victim will never out live these horrific memories."
Both defendants will be sentenced on Aug. 22 and face a maximum sentence of 28 years in prison.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Department of Justice’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
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Local Rapper Found Guilty of Sex Trafficking of a MinorRead the Press Release
HOUSTON – A federal jury has convicted a 27-year-old Houston resident and member of The Sauce Factory for conspiracy and sex trafficking, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than eight hours before convicting Jaimian Sims after five days of trial.
At trial, the jury heard that Sims trafficked both adult and minor females.
In one instance, Sims had directed a co-defendant - Tabbetha Mangis, 22, of La Grange - to find another co-defendant - Gary Shawn Haynes Jr. - 23, of Houston - to find Haynes a girl for prostitution. The victim, only 17 years of age, was picked up from her residence and transported to a 5,000 square foot residence in Northwest Houston, known as “The Mansion.”
After a brief stay there, the jury heard that the minor was taken to the Express Inn where she was given an identification card in order to rent a room. Sims had instructed an adult victim to provide the card to the minor. He had also told that adult to take photos of the minor female victim and post ads for her which was used to solicit customers who would pay for sex.
The jury heard testimony from the adult victim who described her fear of Sims because he always carried a gun and he had assaulted some of the other women who engaged in commercial sex on his behalf.
Testimony also revealed the minor victim wanted to be “arrested” because she was afraid the perpetrators would think she was speaking to law enforcement on her own. This dovetailed with the government’s expert testimony on victimology and the pimp/prostitution subculture amongst those involved in that world as “the game.” The expert described for the jury the meaning of several terms associated with and used by those within this subculture to include victims and defendants.
The jury also saw and heard three rap videos featuring Sims which contained many of the terms people use in the game.
The defense attempted to convince the jury that the women were not victims and engaged in the sex acts willingly nor did he use force, fraud 0r coercion to make them do so. They were not convinced and found him guilty of conspiracy to commit sex trafficking of a minor and sex trafficking of a minor.
Mangis and Haynes previously pleaded guilty and are awaiting sentencing.
U.S. District Judge David Hittner presided over the trial and set sentencing for Aug. 14, 2019. At that time, Sims faces a minimum of 10 years and up to life in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
The Harris County Constable’s Office Precinct 4 and FBI conducted the investigation with the assistance of the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA).
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sherri Zack and Kimberly Leo are prosecuting the case.
Lewiston Man Sentenced for Bank RobberyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Keith Phillips, 58, of Lewiston, Maine, was sentenced in U.S. District Court on a charge of bank robbery. Senior United States District Judge D. Brock Hornby sentenced Phillips to 70 months in federal prison to be followed by three years of supervised release. The court also ruled that Phillips will be ordered to pay restitution to the victim bank. Phillips pleaded guilty to the charge on December 26, 2018.
According to court records, on June 6, 2018, Phillips entered Androscoggin Bank in Lewiston, approached a teller, passed a note that contained a demand for money and a threat of a gun, and absconded with $2,000.
The case was investigated by the Lewiston Police Department; the FBI; the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Portland, South Portland, and Lewiston Police Departments; and the Central Maine Violent Crime Task Force.
Last Defendant in Large-Scale Narcotic Distribution Conspiracy Sentenced to 30 Years in PrisonRead the Press Release
Roberto Omar Vera, 53, of Corpus Christi - the last of 23 defendants in a large-scale narcotic distribution conspiracy - was sentenced to 30 years in federal prison on May 16 by U.S. District Judge Jane J. Boyle.
Vera was apprehended after he engaged in a lengthy high-speed chase in Hunt County, resulting in speeds of up to 100 miles per hour, and Vera firing a gun at law enforcement multiple times. After an hour and half standoff, Vera was taken into custody along with the firearms and illegal narcotics that were in his possession.
The defendants in this case were found responsible for distributing more than 72 kilograms of methamphetamine, along with heroin and other illegal drugs to the Northern Dallas area. Combined, they were responsible for 142 prior criminal convictions, with 52 of them being drug related and 6 being violent offenses. They received a total of over 245 years in federal prison, with sentences ranging from 33 to 360 months.
- Roberto Vera – 360 months
- Elizabeth Causey-Eck – 240 months
- Daniel Moss – 215 months
- John Owen – 210 months
- Roberto Munoz - 190 months
- Simon Trevino – 188 months
- Rodney Broach – 188 months
- Larry Lincks – 188 months
- Arthur Currie – 168 months
- Clisty Pratt – 130 months
- Brandi Turcola – 100 months
- Angela Burkham – 87 months
- Illona King – 85 months
- Kneely Abadie – 75 months
- Paul Shreves – 71 months
- Lauren Crites – 70 months
- Kameron Vera – 60 months
- Mark Craven – 60 months
- Stephanie Aldava – 57 months
- Charley Crossland – 57 months
- Chelsea Johnson – 57 months
- Caitlyn Johnson – 51 months
- Jorge Morales – 33 months
The investigation was led by the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney P.J. Meitl, Northern District of Texas, was in charge of these prosecutions.
LPR Heads to Prison for Hiding Illegal Aliens in Furniture in Attempt to Circumvent CheckpointRead the Press Release
CORPUS CHRISTI, Texas – A 23-year-old legal permanent resident of Katy has been ordered to federal prison following his conviction of transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick. Yabar Ayan Portes-Arevalo pleaded guilty Feb. 18, 2019.
Today, Senior U.S. District Judge John Rainey handed Portes-Arevalo a 21-month sentence. He could also lose his resident status in the United States. At the hearing, the court found he endangered the lives of the illegal aliens.
On Dec. 10, 2018, Portes-Arevalo approached the primary inspection lane of the Border Patrol (BP) checkpoint near Sarita. He was driving a Ford F-150 pickup with a couch and dresser loaded in the bed of the truck wrapped in plastic. During a routine inspection, Portes-Arevalo became visibly nervous, at which time BP conducted an x-ray examination of the vehicle which showed abnormalities inside the furniture.
BP agents removed the plastic and discovered three undocumented aliens hidden in the couch and three more inside the dresser. The dresser had been nailed shut.
Portes-Arevalo is in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP conducted the investigation. Assistant U.S. Attorney Cody Barnes is prosecuting the case.
Kentucky Man Sentenced to Prison for Traveling to Meet a Minor for SexRead the Press Release
HUNTINGTON, W.Va. – A Kentucky man was sentenced today to spend 46 months in prison for traveling in interstate commerce in order to engage in illicit sexual activity with a minor, announced United States Attorney Mike Stuart. Upon his release from prison, Caudill will be required to serve a 15 year term of supervised release. He will also be required to register as a sex offender.
“As we announced last month, federal, state and local law enforcement resources are working collaboratively throughout West Virginia and across state lines to identify and prosecute child predators,” said United States Attorney Mike Stuart. “We are committed to doing everything possible to protect our children.”
Richard Gerald Caudill, Jr., 46, of Catlettsburg, Kentucky, previously admitted that during August 2018 he communicated via the cell phone messaging app Kik with a minor he believed to be a 14-year-old girl from the Ashland, Kentucky area. During the conversations, Caudill attempted to persuade and entice the minor to meet him in order to engage in sexual intercourse. On August 28, 2018, Caudill traveled from his home in Kentucky to a location in Kenova, Wayne County, West Virginia, in order to have sex with the minor. Only then did Caudill discover that the minor was actually an undercover law enforcement officer.
The investigation was conducted by the West Virginia State Police Internet Crimes Against Children Task Force, the FBI Violent Crimes Against Children Task Force, and the Ashland Police Department. First Assistant United States Attorney Lisa Johnston and Assistant United States Attorney Jennifer Rada Herrald handled the prosecution. The sentence was handed down by United States District Judge Robert C. Chambers.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Kanawha County Man Pleads Guilty to Theft of Mail from a United States Post OfficeRead the Press Release
Defendant stole 16 pieces of mail and White House Christmas ornaments
CHARLESTON, W.Va. – A Charleston man entered a guilty plea to the felony offense of stealing mail from a Post Office, announced United States Attorney Mike Stuart. Joshua Hanshaw, 37, faces up to 5 years of incarceration and a $250,000 fine when he is sentenced on August 15, 2019. He will also be required to pay restitution back to the United States Treasury and any mail theft victims. Stuart praised the work of the United States Postal Inspection Service and the Charleston Police Department.
“Theft of mail is a serious offense,” said United States Attorney Mike Stuart. “All too often, there is an uptick in mail theft around holidays. We will prosecute “Grinches” like Hanshaw no matter what time of year they commit their criminal act.”
On December 27, 2017, Hanshaw went to the Main Charleston Post Office on Lee Street in downtown Charleston, West Virginia after regular business hours. He was able to lift open a metal security screen that covered a teller window. Hanshaw then crawled over the counter and through the gap to the area where mail is sorted. Once there, Hanshaw took a number of pieces of mail. He also took seven 2017 White House Christmas ornaments that the post-office sells. Hanshaw left the post-office with the mail and ornaments in a plastic bin. He riffled the mail and discarded much of it around the post-office and behind a nativity scene at St. Mark’s United Methodist Church. In total, Hanshaw took 16 pieces of mail, five packages, and seven official 2017 White House Christmas ornaments.
Police had access to security videos where Hanshaw was observed taking the mail and the ornaments. He was also observed opening the metal screen and crawling through the opening. The Charleston Police Department and United States Postal Inspection Service were able to identify Hanshaw and he was arrested. Hanshaw agreed to speak with investigators after they advised him of his Miranda rights. He told investigators that he opened the window and went into the post-office, stealing mail and the Christmas ornaments.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Erik S. Goes and former Assistant United States Attorney Eric Bacaj handled the prosecution.
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Justice Department Seeks to Intervene in Private Class Action to Enforce Prohibition on Unlawful “No-Poach” AgreementsRead the Press Release
The Department of Justice announced today that it has filed an unopposed motion to intervene in a private antitrust class action challenging alleged agreements between Duke University (Duke) and the University of North Carolina (UNC) not to compete for each other’s medical faculty. At the same time, the Department joined the parties’ proposed settlement agreement for the limited purpose of obtaining the right to enforce an injunction designed to prevent the maintenance or recurrence of any unlawful no-poach agreements. If approved by the court, the settlement would give the United States the right to enforce an injunction and certain compliance and reporting requirements against Duke. The case is Seaman v. Duke University and Duke University Health System, Case No. 15-cv-00462, in the United States District Court for the Middle District of North Carolina.
Under the terms of the proposed settlement, Duke is prohibited from entering, maintaining, or enforcing unlawful no-poach agreements for five years. The settlement, if approved by the court, also requires Duke to implement rigorous notification and compliance measures to preclude its entry into these types of anticompetitive agreements in the future.
“Dr. Seaman’s class action challenged alleged anticompetitive conduct occurring at the intersection of two important sectors of the U.S. economy: healthcare and higher education,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s filings, along with the Statement of Interest we filed in March, make clear that the Antitrust Division will use all of its enforcement and advocacy tools to ensure that labor markets across the economy are free from anticompetitive conduct and that workers receive the benefits of robust competition for their labor.”
On June 9, 2015, Dr. Danielle Seaman, an assistant professor at Duke University School of Medicine, filed a class action alleging that Duke and UNC agreed not to permit lateral hiring of faculty between the universities. Her complaint further alleged that the universities’ agreement violates Section 1 of the Sherman Act by eliminating competition for faculty, restricting their mobility, and suppressing their compensation. In 2018, the court certified a class comprised of faculty members with an academic appointment at the Duke or UNC Schools of Medicine.
In March 2019, the Department’s Antitrust Division filed a Statement of Interest in this lawsuit addressing the proper application of the antitrust laws, including the standard for judging the legality of alleged no-poach agreements under the Sherman Act. In April 2019, the litigants announced an agreement to settle the case. The Department sought to intervene in the litigation for the limited purpose of joining the proposed settlement and thereby obtaining the right to enforce any injunctive relief entered by the court against Duke.
“I would like to thank our colleagues at the United States Attorney’s Office for the Middle District of North Carolina for their assistance,” said Assistant Attorney General Delrahim. “In addition, we commend the litigants for working cooperatively with us throughout the resolution of this matter, including for agreeing to permit the United States to seek to intervene in this settlement. Permitting the United States to become part of this settlement agreement in this private antitrust case, and thereby to obtain all of the relief and protections it likely would have sought after a lengthy investigation, demonstrates the benefits that can be obtained efficiently for the American worker when public and private enforcement work in tandem.”
Duke is a private research university located in Durham, North Carolina. It has several schools and institutes, including the Duke University School of Medicine.
Judge Sentences Macon Man Found Guilty of Fraud in Multi-Million Dollar Bibb County School District Computer CaseRead the Press Release
MACON – A businessman convicted in a complex scheme to defraud the Bibb County School District (BCSD) will spend 50 months in prison for his crime, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Dave Carty, 49, of Macon, was found guilty on February 1, 2019 of one count of Wire Fraud following a week-long trial in federal court. Today, the Honorable Marc Treadwell sentenced Mr. Carty to 50 months in prison and 3 years supervised release. There is no parole in the federal system.
Mr. Carty was charged in connection to the sale of 15,000 NComputing devices for $3.7 million to upgrade classroom technology for BCSD in 2012. Mr. Carty prepared the template for an invoice that was ultimately presented to the BCSD to purchase the devices for $3.7 million. The actual cost of the devices was $1.7 million. Mr. Carty’s invoice did not reflect the donation of 4,000 devices that NComputing intended for the BCSD. The invoice also included charges for services provided by NComputing at no cost. A co-defendant, Isaac Culver, was found guilty in July 2018 by a jury of his peers for Conspiracy to Commit Wire and Mail Fraud, Mail Fraud, Conspiracy to Launder the Proceeds of Unlawful Activity and ten counts of Wire Fraud. Mr. Culver was sentenced to 87 months in prison and three years of supervised release in November.
“The defendants’ scheme defrauded the Bibb County School District of millions of dollars, but the real victims are the school children who were deprived of educational opportunities as a result of this fraud,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Our office will continue to vigorously pursue criminals who attempt to steal from taxpayers. I want to thank the FBI and IRS for their exemplary efforts in this case.”
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service. Assistant U.S. Attorneys Beth Howard and Danial Bennett are prosecuting the case for the Government with participation and cooperation of Special Assistant U.S. Attorney David McLaughlin from the Georgia Office of the Attorney General.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Jamestown Man Going to Prison for Selling HeroinRead 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 Alex Mercado, 40, of Jamestown, NY, who was convicted of conspiracy to distribute one kilogram or more of heroin, was sentenced to serve 120 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that beginning in early 2016, the defendant served as one of the primary mid-level distributors of heroin and cocaine for the Sigfredo Martinez drug organization. Mercado admitted that he was responsible for the “night shift” transactions, and stated that his co-defendant, Bryan Ferrer-Vazquez, distributed during the “day shift.” The defendant admitted that he received a couple hundred bundles of heroin from Martinez every few days and was tasked with distributing it to smaller dealers and users. Mercado said he would then turn over the proceeds to Martinez and take payment for his role in the distribution. The defendant also directed co-defendant Ferrer-Vazquez to distribute heroin to specific customers and would collect the proceeds earned by Ferrer-Vazquez on behalf of Martinez. During this period of time, Mercado occasionally worked with other uncharged co-conspirators to process bulk quantities of heroin and repackage it for retail sale.
Between November 3, 2016, and March 2, 2017, the Drug Enforcement Administration conducted four controlled purchases of heroin with the defendant. On April 6, 2017, federal search warrants were executed at 385 Buffalo Street, the residence of Bryan Ferrer-Vazquez, and 32 Duquesne Street, the residence of Sigfredo Martinez. At each location, law enforcement officers seized numerous ledgers and paper records of drug transactions. A federal search warrant was also executed at Mercado’s residence at 1083 North Main Street in Jamestown where approximately 10 ounces of marijuana and several suboxone strips were recovered.
Bryan Ferrer-Vazquez was previously convicted and is awaiting sentencing. Charges remain pending against Sigfredo Martinez. 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.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Jamestown Police Department, under the direction of Chief Harry Snellings, and the Southern Tier Regional Drug Task Force.
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Insurance Broker Bookeeper Sentenced to 27 Months in Prison for Stealing $900,000 from EmployerRead the Press Release
NEWARK, N.J. – A former accounting specialist in the Ridgefield Park, New Jersey, office of an insurance broker was sentenced today to 27 months in prison for defrauding her employer of approximately $900,000, U.S. Attorney Craig Carpenito announced.
Violeta McGough, 57, of Bergenfield, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging her with one count of wire fraud. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2008 through October 2015, McGough allegedly made numerous fraudulent accounting entries to steal funds that her employer – identified as “Victim-Company 1” – collected as insurance premiums. The premiums were for policies underwritten and issued by Victim-Company 1 on behalf of a United Kingdom-based insurance syndicate that actually held the risk. As part of her employment duties, McGough tracked premiums collected by Victim-Company 1 and its monthly payments to the syndicate.
McGough repeatedly used her access to Victim-Company 1’s books to divert a portion of those payments to her personal use. McGough disguised the stolen funds as reimbursed premiums for cancelled policies. She caused Victim-Company 1 to generate checks payable to a person identified in the complaint as “Individual 1,” who suppossedly worked for a premium financing company, but did not actually work there. McGough personally deposited the checks into Individual 1’s bank account and the bulk of the funds were transmitted back to McGough’s bank account.
In addition to the prison term, Judge Arleo sentenced McGough to three years of supervised release.
U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the U.S. Attorney’s Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Huntington Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was caught with methamphetamine and a gun in Huntington in 2018 pled guilty today to federal charges, announced United States Attorney Mike Stuart. Brandon Douglas Tomblin, 35, entered guilty pleas in federal court in Huntington to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. Stuart commended the investigative efforts of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
“Strong partnerships have led to dramatic decreases in violent crime in Huntington,” said United State Attorney Mike Stuart. “We are prosecuting record numbers of drug and gun defendants like Tomblin.”
On July 29, 2018, an officer with the Huntington Police Department was on patrol along 15th Street in Huntington when he initiated a traffic stop on a vehicle driven by Tomblin for nearly hitting a parked car. Subsequent to Tomblin’s arrest, the officer located approximately 22 grams of a white crystal like substance believed to be methamphetamine. On August 4, 2018, an officer with the Huntington Police Department responded to 401 Bridge Street in Huntington for report of a suspicious person. The officer detained the individual who was identified as Tomblin, at which time the officer observed a gun nearby, specifically a .357 Sig Sauer pistol. The officer also located drugs on Tomblin’s person in an amount consistent with drug trafficking.
Tomblin faces up to 20 years in federal prison when he is sentenced on August 19, 2019.
Assistant United States Attorney Ryan A. Keefe is handling the prosecution. United States District Judge Robert C. Chambers presided over the plea hearing.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Hamden Deli Owner Pleads Guilty to Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on May 17, 2019, RAYMOND GEORGE, 52, of Hamden, waived his right to be indicted and pleaded guilty before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of tax evasion.
According to court documents and statements made in court, George owns and operates a Ray & Mike’s, LLC, a delicatessen located at 3030 Whitney Avenue in Hamden. For the 2012 and 2013 tax years, George evaded payment of his federal income taxes in multiple ways. First, George failed to deposit all of the cash receipts of the business into his business bank account. He used a portion of the cash to fill an in-store ATM and failed to report the cash as income.
In addition, George used the Ray & Mike business account to pay personal expenses. He also deposited three large checks totaling nearly $300,000 from the Ray & Mike’s business account into his personal investment account, without reporting the funds as income in any capacity, and then withdrew funds from the investment account to purchase personal investment properties. He also deposited a $25,800 check from the Ray & Mike’s lottery account into his personal investment account without reporting the funds as income.
On his federal tax returns, George underreported his income by approximately $365,065 for the 2012 tax year and by $273,108 for the 2013 tax year, and failed to pay a total of approximately $220,000 in taxes.
At sentencing, George faces a maximum term of imprisonment of five years and a fine of up to approximately $440,000. He also has agreed to pay back taxes of $220,663, plus interest and penalties.
This case has been investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Prior DeportationRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to over three months in federal prison.
Francisco Gomez-Tino, age 32, a citizen of Guatemala illegally present in the United States and residing in Toledo, Iowa, received the prison term after a March 15, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Gomez-Tino admitted he had previously been deported from the United States in June 2011 and August 2013 and illegally reentered the United States without the permission of the United States government. Gomez-Tino was found by immigration agents in February 2019 after he was charged in Tama County, Iowa, with operating a motor vehicle while intoxicated and providing false identification information. That case is still pending.
Gomez-Tino has prior convictions providing false identification and failure to appear in July 2004 in Moore County, Texas, driving under the influence of alcohol in April 2011 and interference with law enforcement in August 2013, both in Cowley County, Kansas. Gomez-Tino used an alias in these prior cases.
Gomez-Tino also has cases pending in Kansas and Nebraska. Gomez-Tino was arrested in Cowley County, Kansas, in March 2014 and charged with domestic battery, driving under the influence, and fleeing or attempting to elude a police officer. Gomez-Tino was arrested in Dodge County, Nebraska, in August 2014 and charged with terroristic threats and disorderly conduct.
Gomez-Tino was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gomez-Tino was sentenced to 102 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Gomez-Tino is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-21.
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Fraudulent Tax Returns Nets Detroit Man Prison TermRead the Press Release
Juan Carlos Pena-Lora, 32 of Detroit, was sentenced to 52 months in prison for negotiating over 2,000 U.S. Treasury income tax refund checks generated from false income tax returns, announced U.S. Attorney Matthew Schneider.
Schneider was joined in the announcement by Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service - Criminal Investigation.
Imposing the sentenced was U.S. District Judge Sean F. Cox. In addition to the prison time, Judge Cox ordered Pena-Lora to pay $14,286,166.46 in restitution.
According to court records, from 2011 through 2012, Pena-Lora negotiated over 2,000 U.S. Treasury income tax refund checks in the Eastern District of Michigan. As Pena-Lora was well aware, the Treasury checks had been generated through the filing of fraudulent tax returns claiming refunds filed in the names and using the social security numbers of Puerto Rican nationals, but using residential addresses in the United States. Pena-Lora cashed the Treasury tax refund checks at local check cashing stores in the city of Detroit, which Pena-Lora knew were proceeds of illegal activity specifically, Theft of Public Money. Although Pena-Lora is pleading guilty to one count of the indictment, he acknowledges that he was involved in criminal activity which generated losses in the sentencing guideline range of more than $9.5 million.
“The defendant committed crimes of greed by stealing from honest taxpayers,” United States Attorney Matthew Schneider said. “This sentence is a warning to others who would consider committing similar crimes.”
“Pena-Lora bilked the U.S. Treasury and taxpayers out of millions of dollars and because of his actions; he’s going to prison,” said Special Agent in Charge Manny Muriel of IRS Criminal Investigation, adding “IRS CI will continue to devote resources to pursue those who attempt to exploit the tax system.”
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation
Four Texas Men Sentenced for Stealing 654 Firearms from UPS Trailers in SpringfieldRead the Press Release
SPRINGFIELD, Mo. – Four Texas men were sentenced in federal court today for stealing 654 firearms from United Parcel Service trailers in Springfield, Mo., en route to Bass Pro Shops.
Frank McChriston, 35, and Derrick White, 33, both of Dallas, Texas; Quinton Haywood, 27, of Glenn Heights, Texas; and Eric White, 28, of Arlington, Texas were sentenced in separate appearances before U.S. Chief District Judge Beth Phillips. McChriston was sentenced to seven years and eight months in federal prison without parole. Derrick and Eric White were each sentenced to seven years and three months in federal prison without parole. Haywood was sentenced to seven years and six months in federal prison without parole. The court also ordered the defendants to pay $206,132 in restitution, for which they are jointly and severally liable.
All four defendants admitted they aided and abetted each other to steal cargo that was being shipped across state lines, from Beretta USA in Maryland to the state of Missouri. They also pleaded guilty to aiding and abetting each other to possess stolen firearms.
Co-defendants Raynord Hunt, 36, and Keith Lowe, 29, both of Dallas, have pleaded guilty to the same charges and await sentencing.
According to court documents, the defendants stole 600 Beretta .380-caliber handguns and 54 Beretta 12-gauge shotguns from United Parcel Service (UPS) trailers in Springfield in October 2017.
The firearms were in the process of being shipped from Beretta Firearms in Maryland to Bass Pro Shops in Springfield. The trailers in which the firearms were shipped had been parked in the UPS freight lot in a configuration to prevent access to the trailer doors, by being parked back-to-back, with the roll-up doors facing each other. The trailers were then blocked by longer trailers, which should have acted as a preventative measure from someone backing a truck-tractor to the trailer and pulling it forward.
Sometime between noon on Oct. 28, 2017, and 8:30 a.m. on Oct. 29, 2017, thieves hot-wired two truck-tractors and used them to push and pull various trailers around the lot, allowing the thieves access to the trailer doors. UPS employees discovered the theft on Oct. 29, 2017, and notified law enforcement.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Dallas, Texas, Police Department and the Texas Department of Public Safety.
Four South American Narcotic Smugglers Charged 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, 48, were charged with 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.
The complaint alleges that Montano Paz, Tumbaco, Abregon and Hernandez were all on board a go-fast style vessel that was intercepted by a United States Coast Guard (USCG) cutter while on routine patrol. The USCG first sighted the go-fast vessel on May 10, 2019, at approximately 250 nautical miles northwest of Esmeraldes, Ecuador. The vessel did not have any display indicating its nationality. After being detected, the occupants, which consisted of two Columbian nationals, one Ecuadorian national, and one Mexican national, began tossing the bales of suspected narcotics overboard their vessel. The USCG disabled the go-fast vessel, and upon boarding the vessel, successfully seized 40 bales of suspected narcotics, including the 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 indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Former Owner and Operator of 16 Michigan Adult Foster Care Homes Convicted of Payroll Tax Fraud and Obstructing the IRSRead the Press Release
A Grand Blanc, Michigan, man, who previously operated adult foster care homes, was convicted today of payroll tax fraud, obstructing the Internal Revenue Service (IRS), and failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew Schneider for the Eastern District of Michigan.
According to court documents and the evidence presented at trial, Jeremiah Cheff owned and controlled the financial and business operations of 16 foster care homes that cared for individuals with mental illnesses and developmental and physical disabilities, including Hunter’s Home, Nico’s Place, Harmony Manor, Hilltop Estates, and Deerwood Manor. From September 2010 through September 2014, Cheff withheld payroll taxes from employees’ paychecks, but failed to timely file payroll tax returns and failed to pay over the withheld funds to the IRS. The jury found Cheff guilty of 60 counts of payroll tax fraud for this misconduct.
Cheff was also convicted of corruptly endeavoring to obstruct the administration of internal revenue laws, and failing to timely file his 2013 through 2015 individual income tax returns. According to court documents and the evidence presented at trial, after the IRS attempted to collect unpaid payroll taxes, Cheff sent an $80,000 false financial instrument to the IRS and falsely claimed to a revenue officer that he had paid the taxes due.
Sentencing is set for Sept. 3. Cheff faces a statutory maximum sentence of five years in prison for each payroll tax fraud count, three years in prison for the corrupt endeavor to obstruct count, and one year in prison for each of the failure to file counts. Cheff will also face a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Schneider commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey A. McLellan and Carl F. Brooker, IV of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.