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1 July 2019
California man admits dealing meth in Havre, Great Falls, Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS – A California man admitted today to dealing methamphetamine in Havre, Great Falls and the Rocky Boy’s Indian Reservation, U.S. Attorney Kurt Alme said.
Roel Centeno, 44, of Oxnard, CA, pleaded guilty to possession with intent to distribute meth. He faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. He was detained.
U.S. District Judge Brian M. Morris presided and set sentencing for Oct. 16, 2019.
The prosecution said in court documents that law enforcement agents learned Centeno was arranging the shipment of numerous packages of meth to recipients in Havre, Great Falls and the Rocky Boy’s Indian Reservation from about June 2017 to March 2018. The recipients broke down the meth packages for local redistribution. Agents interviewed numerous persons who received meth from Centeno.
Assistant U.S. Attorney Jessica Betley is prosecuting the case, which was investigated by the Great Falls Police Department and Homeland Security Investigations.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Brookshire Woman Admits to Sending Homemade Bombs to State and Federal OfficialsRead the Press Release
HOUSTON – A 47-year-old resident of Brookshire has pleaded guilty to transportation of explosives with the intent to kill, injure and intimidate a person, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI.
Julia Ann Poff admitted to mailing a package on or about Oct. 2 - 3, 2016, that contained a homemade bomb that was addressed to the former president of the United States. As part of her plea, she also acknowledged mailing two similar packages addressed to the Texas governor and the then Acting Social Security Administrator.
Each of those packages contained a victim-activated, booby trapped, improvised explosive device (IED) containing explosives materials.
“This was a resource-intensive investigation that involved the safety of the Texas Governor, President of the United States and the Social Security Administration,” said Turner. “Fortunately, no one was hurt, but the threat that Poff posed and the fear she incited was serious and real. The FBI spots, assesses and mitigates threats daily. For the last three years, the men and women of the FBI Bryan Joint Terrorism Task Force (JTTF) and its partners worked relentlessly to bring Poff’s life-threatening actions to an end. This is what the FBI does every day to keep our community safe, whether you reside in a private home, the Governor’s House or the White House.”
The investigation revealed that on Oct. 6, 2016, authorities intercepted a U.S. Postal Service (USPS) small, flat rate box at a White House mail handling facility at Bolling Air Force Base in the District of Columbia. They opened the package, and it appeared to contain a bomb.
An FBI explosives expert conducted an examination and determined it to be a homemade bomb.
Further examination linked the box and its contents to Julia Poff or her husband. The outer box contained a taped address label, under which they found a feline hair. Testing revealed this hair was microscopically consistent with the hairs taken from a cat the Poff family cared for and owned. Also, a box contained within the USPS box contained a micro-USB cable box, cellular phone, hobby fuse, matches, paper wadding, plastic sacks, sandpaper and two 20-ounce coke bottle caps as well as pyrotechnics and smokeless powder.
Poff’s daughter identified the phone as her old cell phone which was last seen in their home’s garage in August or September 2016. Authorities also learned Poff used her bank debit card to purchase a micro-USB box with the same bar code as the one found in the USPS package.
Poff admitted today she was solely responsible for sending the bomb-filled packages.
U.S. District Judge Vanessa Gilmore accepted the plea and has set sentencing for Nov. 18, 2019. At that time, she faces up to 10 years in federal prison and a maximum $250,000 possible fine.
She has been and will remain in custody pending that hearing.
The Bryan FBI JTTF conducted the investigation with assistance from the U.S. Postal Inspection Service, Texas Rangers, Social Security Administration - Office of Inspector General (OIG) and Department of Agriculture - OIG. The Bryan Resident Agency JTTF is comprised of the FBI; sheriff’s offices in Brazos, Waller and Walker Counties; police departments in Bryan, Texas A&M University and College Station; Secret Service; Texas Department of Criminal Justice - OIG and Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Ralph Imperato, Rob Jones and Alamdar Hamdani are prosecuting the case.
Brandon Man Pleads Guilty to Trafficking MethamphetamineRead the Press Release
Jackson, Miss. – John Barrett Cotting, 39, of Brandon, pled guilty today before U.S. District Judge Carlton W. Reeves to possession with intent to distribute 50 grams or more of actual methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration (DEA).
Cotting was indicted following an extensive investigation, dubbed “Drama Queen,” targeting illegal methamphetamine distribution in Central Mississippi. During a prostitution sting, agents received messages from Cotting who wanted to meet for sexual purposes related to a Backpage.com ad. Cotting stated that he was willing to bring narcotics with him to the meeting. Once Cotting arrived at the meeting location, agents retrieved approximately 140 grams of actual methamphetamine intended for distribution.
Cotting will be sentenced by Judge Reees on October 8, 2019, at 9:00 a.m. and faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the Hinds County Sheriff’s Office, the Jones County Sheriff’s Office, the Jackson Police Department, the Richland Police Department, the Mississippi Bureau of Narcotics and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Chris Wansley.
Birney man admits strangling woman to death with ropeRead the Press Release
BILLINGS – Birney resident Randy Lee Littlebird admitted today to murdering a woman by strangling her with a rope in their residence on the Northern Cheyenne Indian Reservation last year, U.S. Attorney Kurt Alme said.
Littlebird, 35, pleaded guilty to second degree murder, strangulation and domestic abuse by habitual offender.
U.S. District Judge Susan Watters presided. Judge Watters continued Littlebird’s detention and set sentencing for Nov. 6, 2019.
Littlebird faces a maximum of life in prison, a $250,000 fine and three years of supervised release on the murder charge, and a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the strangulation and domestic abuse charges.
In court records filed by the prosecution, Littlebird killed the victim on Feb. 4, 2018 at a shared residence in Birney. Littlebird and the victim were drinking alcohol throughout the day and were drunk. Another individual in the house heard a confrontation between the two and the victim yell, “No Randy, don’t, don’t,” then her scream, followed by silence.
Littlebird entered the individual’s room and said that the victim was unresponsive. The individual found the victim lying on the floor near a rope. Littlebird claimed the victim had killed herself and he had moved the body.
An autopsy determined the cause of death was ligature strangulation and multiple blunt force injuries.
In an interview with FBI and Bureau of Indian Affairs agents on Feb. 6, 2018, Littlebird confessed to fatally strangling the victim. He admitted to tying ropes around the victim’s ankles to prevent her from leaving and then he left the room. When he returned, the two argued some more. Littlebird grabbed the rope, which was now around the victim’s neck, and while standing, pulled on it, strangling her.
Littlebird has four prior domestic abuse conviction on the Northern Cheyenne Reservation.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI and BIA.
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Bass Pro Shop Gun Thieves Admit Guilt, Await SentencingRead the Press Release
MACON – All three defendants involved in the theft of nine firearms from a Macon-based federal firearms licensee are now awaiting sentencing after pleading guilty to their crimes, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Tylaun Rashard Mullins, 19, of Macon, pleaded guilty to one count of Theft of a Firearm from a Federal Firearms Licensee on Wednesday, June 26, 2019 before the Honorable Marc Treadwell. Mr. Mullins’ two co-conspirators, Christian Jabari Black, 19, of Macon, and Jacques Stewart, 20, of Macon, entered guilty pleas on April 16, 2019 and May 22, 2019, respectively, also to one count of Theft of a Firearm from a Federal Firearms Licensee. Mr. Mullins will be sentenced on September 4, 2019, Mr. Black will be sentenced on July 10, 2019, and Mr. Stewart will be sentenced on August 7. The defendants each face a maximum sentence of ten years in prison, a $250,000.00 fine, or both, and three years of supervised release.
According to Mr. Mullins’ signed plea agreement, the three defendants and one juvenile (who was not charged), were spotted by an employee exiting the Bass Pro Shops building on 500 Bass Pro Avenue in Macon on the evening of April 3, 2018. Shortly thereafter, surveillance video captured the three defendants breaking into the store and stealing nine firearms, including pump shotguns and rifles, in order to sell the firearms. Officers took the defendants into custody the next day, on April 4, 2018.
“The theft and sale of stolen firearms in our country is dangerous business, and runs counter to our efforts to remove firearms from the hands of convicted felons and criminals who use these stolen weapons to disrupt our communities,” said Charlie Peeler, the U.S. Attorney. “I want to thank the Bibb County Sheriff’s Office and the ATF for quickly finding the defendants and preventing these firearms from getting into the wrong hands.”
The case was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Bibb County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Paul McCommon. Questions 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.
Barbour County woman admits to role methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Destiny Hope Robinson, of Philippi, West Virginia, has admitted to methamphetamine distribution, United States Attorney Bill Powell announced.
Robinson, age 21, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Robinson admitted to distributing more than five grams of methamphetamine in Randolph County from December 2017 to July 2018.
Robinson is facing no less than five and up to 40 years incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force and the Randolph County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Armed Career Criminal Sentenced to 15 YearsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Royal Powell, 36, Janesville, Wisconsin, was sentenced today by U.S. District Judge William Conley to a mandatory minimum 15 years in federal prison for possessing a firearm as a convicted felon. Powell pleaded guilty to this charge on March 20, 2019. His prison sentence will be followed by four years of supervised release.
On August 17, 2018, Powell exited a BP gas station in Janesville and fired a gun at a group of people standing a short distance away. In response to the gunfire, someone shot back at Powell and the bullet went into the gas station and nearly struck a woman and her small children standing inside. Powell fled the scene but police officers identified him using surveillance video from the gas station. Powell was arrested in Janesville a few weeks later and officers found the firearm used in the shooting hidden in his apartment.
Powell is prohibited from possessing firearms because he has previously been convicted of multiple felony offenses in Rock County, Wisconsin, and Cook County, Illinois, including arson, residential burglary, and substantial battery. As a result of these violent convictions, Powell is classified as an armed career criminal and is subject to the mandatory minimum sentence of 15 years. Furthermore, Powell was on Wisconsin state supervision for three separate felony convictions at the time of the shooting.
In sentencing Powell, Judge Conley took into account his lengthy criminal history, which included not only violent crimes but also drug offenses. Judge Conley stated that Powell’s decision to shoot the firearm while at the BP station needlessly endangered innocent lives.
The charge against Powell has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address violent crime.
The charge against Powell was a result of an investigation conducted by the Janesville Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorneys Aaron Wegner and Diane Schlipper.
30 June 2019
“Rapid City’s Most Wanted Fugitive” Sentenced for Violent Carjacking and Discharging a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Carjacking Resulting in Serious Bodily Injury and Discharging a Firearm During and in Relation to a Crime of Violence was sentenced on June 20, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Saul Crowe, age 25, was sentenced to 20 years and one month in federal prison. As to the Carjacking conviction, Crowe was sentenced to 10 years and one month in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. As to the Firearm conviction, Crowe was sentenced to 10 years in federal prison, to be served consecutively to the Carjacking sentence, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
A federal grand jury indicted Crowe in January 2018 on eight felony offenses beginning in August 2016, while Crowe was on federal supervised release for a prior federal felony conviction for Possession of a Firearm by a Prohibited Person.
The convictions for which Crowe was sentenced relate to Crowe’s carjacking of an occupied van on October 13, 2017. Crowe held the victim at gunpoint and drove him to an isolated area north of Rapid City, where Crowe and his associates pistol-whipped and beat him. Crowe fired multiple rounds near the victim and made him beg for his life. Bullet casings from the location of the carjacking and beating were forensically matched to a weapon Crowe later abandoned in a vehicle after fleeing police. The Rapid City Police Department called Crowe “Rapid City’s most-wanted fugitive.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Unified Narcotics Enforcement Team; Rapid City Police Department; Pennington County Sheriff’s Office; South Dakota Division of Criminal Investigation; and the RCPD/PCSO Special Response Team. Assistant U.S. Attorneys Kathryn N. Rich and Heather Sazama prosecuted the case.
Crowe was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Unlawful Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Louis Bettelyoun, age 32, was charged on June 18, 2019. Bettelyoun appeared before U.S. Magistrate Judge Daneta Wollmann on June 24, 2019, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Bettelyoun, a previously convicted felon who is prohibited from possessing firearms, unlawfully being in possession of a semi-automatic pistol in March 2019 at Rapid City. The charge is merely an accusation and Bettelyoun is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Bettelyoun was detained pending trial. A trial date has not been set.
Pair from Arizona indicted after seizure of one kilogram of fentanyl and 2,100 pills containing fentanylRead the Press Release
Felipe Penuelas-Rodriguez, 50, and Reyna Trejo, 30, both of Mesa, Arizona, were indicted on one count of conspiracy to possess with intent to distribute fentanyl and one count of possession with intent to distribute fentanyl.
The pair were arrested on June 6 with approximately one kilogram of fentanyl as well as 2,100 blue pills that test positive for fentanyl, according to court documents.
“The drugs seized are enough to kill thousands of people,” U.S. Attorney Justin Herdman said. “The fentanyl pills stamped to look like prescription painkillers are another reminder that there are no safe drugs available on the street.”
“This indictment is another example of our commitment to remove this poison – and those who sell it – from the streets of Toledo” said Toledo Police Chief George Kral. “This case highlights one of the many inherent dangers of street drugs – that users often are not be buying what they think they are. If this seizure had hit the streets, there would have, no doubt, been an increase in overdoses, and likely overdose deaths, in our community.”
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The case was investigated by the U.S. Department of Homeland Security and Toledo Police Department. It is being prosecuted by Assistant U.S. Attorney Thomas P. Weldon.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Missouri Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that an Independence, Missouri, man convicted of Attempted Receipt of Child Pornography was sentenced on June 17, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Donald Scott Baker, age 47, was sentenced to 5 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Baker was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2017 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls or boys obtained through the Internet. The conviction stemmed from Baker communicating with someone he believed to be associated with a 15-year-old girl, but who was in fact an undercover agent, for the purpose of meeting the girl to engage in sexual acts. Baker also requested pornographic images of the minor be sent to himself.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Baker was immediately remanded to the custody of the U.S. Marshals Service.
Cleveland man indicted for selling fentanyl and heroin that caused fatal overdose in Fairview Park last summerRead the Press Release
A Cleveland man was indicted for selling fentanyl and heroin that caused a fatal overdose in Fairview Park last summer.
Devontae Payne, 28, has been charged with one count of distribution of fentanyl and heroin, one count of distribution of heroin, one count of possession with intent to distribute a controlled substance and two counts of use of a communication facility to facilitate a felony drug offense.
Payne allegedly sold a mixture of fentanyl and heroin to a person who fatally overdosed in Fairview Park on August 9, 2018, according to the indictment.
Payne also allegedly sold heroin on November 1, 2018, and on November 7, 2018, allegedly possessed nearly five grams of a mixture of heroin and fentanyl, according to the indictment.
“Defendants like this one, who sell the opioids killing our friends and neighbors, will be held accountable for their actions,” U.S. Attorney Justin Herdman said. “The detectives and agents who worked this case are to be commended for their tenacity.”
This case was investigated by the DEA, Cleveland Division of Police and the Cuyahoga County Sheriff’s Department. It is being prosecuted by Assistant U.S. Attorneys Robert Corts and Vasile Katsaros.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canton man sentenced to more than three years in prison for illegally having firearm and ammunitionRead the Press Release
A Canton man was sentenced to more than three years in prison for illegally having a firearm and ammunition.
Riccardo Harris, 36, was sentenced to 42 months in prison by U.S. District Judge Sara Lioi last week. Harris previously pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
Canton police officers responded to a shot spotter activation at the Whistle Stop Bar on October 19, 2018. Officers found several .40-caliber shell casings in the parking lot of the bar, according to court documents and court statements.
While at the scene, officers received notification of another shot spotter activation at Harris’ residence in Canton. When officers arrived at Harris’ residence, he walked away from the officers and went behind a parked vehicle in the driveway.
Officers searched the area where Harris walked and they located a loaded .40-caliber pistol and a spent .40-caliber shell casing. Officers then recovered one round of .40-caliber ammunition in Harris’ pocket.
Officers determined that the .40-caliber ammunition Harris possessed matched the ammunition in the firearm, the shell casing near the vehicle and the shell casings recovered from the Whistle Stop Bar, according to court documents and court statements.
Harris was prohibited from possessing a firearm or ammunition due a previous conviction in Stark County for aggravated robbery.
This case was investigated by the Canton Police Department and ATF. It was prosecuted by Assistant U.S. Attorney Aaron Howell.
28 June 2019
York Man Sentenced on Health Care Fraud ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nagy Mohamed Abdelhamed, age 68, of York, Pennsylvania, was sentenced on June 27, 2019, by U.S. District Court Judge John E. Jones, III, to two years’ probation on Health Care Fraud charges stemming from his fraudulent receipt of Medicaid and SNAP (Supplemental Nutritional Assistance Program) benefits, formerly known as Food Stamp benefits.
According to United States Attorney David J. Freed, Abdelhamed applied for Medicaid and SNAP benefits with the York County Assistance Office in August of 2014, even though he owned a four bedroom residence in York, a gas station in York, a 2008 Mercedes Benz E350 automobile, received $1,124 a month in Social Security disability benefits, and held approximately $58,500 in eight different bank accounts.
On August 22, 2014, Abdelhamed sold his gas station for $172,883 and deposited $87,016 of the sales proceeds into a bank account. Abdelhamed did not notify the York County Assistance Office of the sale or his receipt of the sales proceeds and continued to receive Medicaid and SNAP benefits into 2018. As a result, Abdelhamed fraudulently obtained approximately $29,337 in benefits, including approximately $20,000 in Medicaid benefits.
Judge Jones also ordered Abdelhamed to pay restitution in the amount of $29,337.
The matter was investigated by the Harrisburg Offices of the FBI and the HHS Office of Inspector General. Assistant U. S. Attorney Kim Douglas Daniel is prosecuting the case.
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Westbrook Man Pleads Guilty to Two Bank Robbery ChargesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Aaron West, 38, of Westbrook, Maine pleaded guilty today in U.S. District Court to two counts of bank robbery. The charges arose from robberies in January 2018 and March 2019 of a credit union in Falmouth and a bank in Portland, respectively.
According to court records, on January 31, 2018, the defendant entered the Cumberland County Federal Credit Union in Falmouth, Maine. Holding his right hand in his sweatshirt pocket in a manner consistent with carrying a concealed weapon, the defendant approached a teller and told her, “this is a robbery, no dye packs.” The defendant obtained $16,250.00 in the robbery. The defendant was subsequently arrested for that robbery and a federal grand jury indicted him in November, 2018. West was released on bail. On March 14, 2019, the defendant became a fugitive from justice because he violated the conditions of his bail and a warrant issued for his arrest.
On March 18, 2019, while in fugitive status, the defendant entered a Norway Savings Bank in Portland, Maine. The defendant held his right hand in his sweatshirt pocket, in a manner consistent with carrying a concealed weapon. The defendant told the teller, “give me the money,” and after first receiving a small amount of money, demanded “more” and threatened to “start shooting.” The defendant obtained $1,400.00 in the robbery.
The defendant faces up to 20 years in prison and a $250,000 fine for each robbery. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the FBI and the Falmouth, Portland and Westbrook Police Departments.
Two Chicago Teenagers Arrested on Federal Robbery Charges in Connection with Near North Side Restaurant HeistRead the Press Release
CHICAGO — The U.S. Attorney’s Office in Chicago has charged two Chicago teenagers with robbing a Near North Side sandwich shop earlier this week. Law enforcement is also investigating whether the pair committed other robberies this month in the city’s downtown Loop neighborhood.
BRANTEZ EVANS, 18, and LAMARR BROWN, 19, are charged with one count of robbery for allegedly taking $307 during a heist Tuesday at a Subway restaurant, 1234 N. Halsted St. in Chicago, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. According to the complaint, Evans and Brown entered the restaurant, and Brown approached the counter, lifted the right side of his shirt and displayed what appeared to be a firearm. Brown then told a clerk, “give me the money,” the complaint states. When the clerk briefly hesitated, Brown allegedly stated, “Come on man you don’t want to get shot.”
Evans and Brown fled the restaurant with the cash but were arrested about 15 minutes later by officers from the Chicago Police Department’s 18th District. The officers recovered a black BB gun that was consistent with the weapon described by the robbery victims, the complaint states. Evans and Brown are also suspected of robbing two other Subway restaurants, a Dunkin Donuts, and a Mini-Mart, all in the downtown Loop neighborhood this month, according to the complaint. The investigation remains ongoing.
Brown was scheduled to appear for a detention hearing this afternoon before U.S. Magistrate Judge Young B. Kim in Chicago. Evans is set to appear for a detention hearing before Judge Kim on Monday at 1:00 p.m.
The complaint and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; Jason R. Wojdylo, Acting Chief Deputy U.S. Marshal for the Northern District of Illinois; and Eddie Johnson, Superintendent of the Chicago Police Department. The Federal Protective Service provided valuable assistance. The government is represented by Assistant U.S. Attorney Charles W. Mulaney.
The robbery charge is punishable by up to 20 years in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Tampa Man Arrested and Charged in International Parental Kidnapping CaseRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the arrest of Ali Hussein Salamey (37, Tampa) for international parental kidnapping. If convicted, Salamey faces a maximum penalty of three years in federal prison. Salamey was arrested on a federal complaint on June 21, 2019, in Atlanta, Georgia as he exited an international flight.
According to the complaint, in July 2018, Salamey, who has joint citizenship in the United States and Lebanon, fraudulently obtained Lebanese citizenship and a passport for his then three-year-old son without the mother’s knowledge or consent and in violation of a family court order. Salamey obtained Lebanese citizenship and the passport for his child, who was born in and resided in Tampa, by providing the Lebanese consulate with a fraudulent family court document that had been altered by Salamey to show Salamey had sole parental responsibility and custody of the child.
On August 27, 2018, Salamey and the child left the United States and traveled to Lebanon in violation of a shared custody order. Once he arrived in Lebanon, Salamey denied the mother access to her child.
As a result of coordination between the FBI, U.S. diplomatic staff in Lebanon, and the Lebanese government, Salamey agreed on June 20, 2019, to return to the United States with the child. Salamey and the child flew from Lebanon through Paris to Atlanta, where Salamey was arrested by the FBI and the child was reunited with his mother.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Mandy Riedel.
Straw Purchaser Pleads Guilty to 150+ Gun ConspiracyRead the Press Release
A straw purchaser pleaded guilty today to her role in a conspiracy to buy more than 150 guns for an unidentified Mexican man, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Sylvia Diaz, 36, pleaded guilty to conspiracy to acquire a firearm from a licensed dealer by false statement Thursday morning. Her co-conspirator, Jose Cruz Diaz, also 36, pleaded guilty to the same charge last October.
In plea papers, the duo admitted to purchasing 160 firearms for a Mexican man who gave them a list of the types of firearms he wanted and money to purchase the guns.
Together, the pair conducted approximately 50 transactions at various sporting goods stores, gun shows, and pawn shops between October 2017 and March 2018. At some point, each signed an ATF form claiming to be the guns’ actual buyers.
Ms. Diaz now faces up to 5 years in federal prison. Mr. Diaz has already been sentenced to 5 years behind bars.
The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation. Special Assistant U.S. Attorney Cathy Richardson prosecuted the case.
San Diego Contractor Sentenced for Defrauding Federal Agencies, Agrees to Pay $3.2 Million to Resolve Civil AllegationsRead the Press Release
NEWS RELEASE SUMMARY – June 28, 2019
San Diego contractor Andrew Otero and his company A&D General Contracting were sentenced today in San Diego federal court by U.S. District Judge John A. Houston. In November, a federal jury convicted A&D and Otero of fraudulently obtaining over $11 million in government contracts which had been set aside for service-disabled veteran-owned small businesses (SDVOSBs).
Judge Houston sentenced Otero to 18 months in custody and ordered him to pay $400,000 in criminal fines. Judge Houston ordered A&D to pay $1.5 million in criminal fines, and imposed criminal forfeiture of $334,561.
Earlier this month, A&D and Otero settled civil False Claims Act allegations arising out of the same conduct, agreeing to pay the United States $3,259,679. Payment of the civil settlement amount will offset the criminal fines imposed by Judge Houston.
The evidence at trial proved that A&D and Otero created a fraudulent joint venture to secure government contract work. To appear qualified for SDVOSB contracts, Otero and veteran Roger Ramsey initially executed an agreement to create the joint venture, which stated that Ramsey’s company (Action Telecom) would manage the joint venture, employ a project manager for each of the set-aside contracts, and receive the majority of the profits.
However, as proved at trial, Otero and Ramsey signed a secret side agreement that made clear the joint venture was ineligible under the SDVOSB program. The side agreement proved the parties formed the joint venture so that A&D could simply “use the Disabled Veteran Status of Action Telecom” to bid on contracts. The side agreement stated that A&D – not Action Telecom – would run the construction jobs, and “A&D will keep 98% of every payment; Action Telecom will receive 2% of every payment.”
In imposing the sentences, Judge Houston emphasized that Otero’s and A&D’s scheme took contracts away from veterans who “bore the weight of war.” Defendants’ crimes harmed disabled veterans by diverting contracts that should have been awarded to legitimate SDVOSBs, and “snatched” contracts “right out of their hands.” Judge Houston also stated that the sentences would deter government contractors from similar crimes, and make clear that defrauding the programs was not “worth the gamble.”
“The United States sets aside important contract work for service-disabled veterans as one small way to recognize their patriotism and repay the enormous debt we owe them for their service,” said United States Attorney Robert S. Brewer, Jr. “Our office will continue to protect these programs and hold those who abuse them fully accountable.”
The criminal case was prosecuted by Assistant United States Attorneys Rebecca Kanter and Aaron Arnzen. The civil case was brought by Assistant United States Attorneys Joseph Price and Doug Keehn.
CORPORATE DEFENDANTS
A&D General Contracting, Inc., Santee, California
INDIVIDUAL DEFENDANTS
Andrew Otero El Cajon, CA
Criminal Case No. 17CR0879-JAH
Civil Case No. 15CV0441-JAH
SUMMARY OF CHARGES
Count 1: Conspiracy to defraud and commit offenses (18 U.S.C. § 371)
Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10
Count 2-4: Major fraud against the United States (18 U.S.C. § 1031)
Maximum penalties: 10years’ imprisonment; supervised release; a fine of $1,000,000 per count ($5,000,000 total); and a mandatory special assessment of $100
Counts 5-7: Wire fraud (18 U.S.C. § 1343)
Maximum penalties: 20 years’ imprisonment; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100
Counts: 10, 14:
False statements (18 U.S.C. § 1001)
Maximum penalties: 5 years’ imprisonment; a fine; and a mandatory special assessment of $100
AGENCIES
Department of Veterans Affairs, Office of Inspector General
Sampson County Members of Violent Drug Trafficking Organization SentencedRead the Press Release
Operation Sugar Hill Gang defendants receive more than a century of time in federal prison.
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that ANTONIO KEVIN MCKOY, 32, of Garland, NC, TONY CHEVALLIER, 40, of Clinton, NC, and JABARR RYEHEINE RUDOLPH, 39, of Clinton, NC were sentenced by United States District Judge James C. Dever, III. MCKOY was sentenced to life of imprisonment plus 5 years, followed by 6 years of supervised release. CHEVALLIER was sentenced to 360 months followed by 10 years of supervised release and RUDOLPH was sentenced to 240 months followed by 3 years of supervised release.
A federal jury found all three men guilty of Conspiracy to distribute and possess with the intent to distribute significant quantities of multiple controlled substances, including methamphetamine, heroin, crack cocaine and cocaine, and "Molly". Additional convictions were sustained for the distribution of various controlled substances and multiple firearm related charges.
The investigation giving rise to the charges faced at trial began in 2013. Multiple and extensive investigative techniques were utilized throughout this case. The evidence presented at trial detailed a significant drug trafficking organization (“DTO”) that was built and lead by ANTONIO MCKOY. The DTO maintained contacts with individuals throughout the Southeastern United States who supplied the drugs sold primarily within Eastern North Carolina. In addition to trafficking drugs, the DTO maintained a sophisticated apparatus that was used to launder the proceeds derived from drug sales. The evidence presented at trial showed a trucking company that MCKOY started in early 2016 was used to conceal the money collected in the drug business.
The following additional individuals were charged in relation to the drug conspiracy as part of Operation Sugar Hill Gang Organized Crime Drug Enforcement Task Force (OCDETF) investigation and their sentences are listed below:
- James Daniel McKoy of Garland, North Carolina – 210 months in prison
- Jafa McKoy of Clinton, North Carolina – 209 months in prison
- William Garner of Clinton, North Carolina – 144 months in prison
- Robert Parker of Clinton, North Carolina - 137 months in prison
- Donald Garner of Harrells, North Carolina - 120 months in prison
- Deames Henry of Garland, North Carolina – 120 months in prison
- Gregory Bright of Turkey, North Carolina – 115 months in prison
- Derrick Ingram of Clinton, North Carolina – 114 months in prison
- Brandon Smith of Wilmington, North Carolina – 108 months in prison
- Amanda Burch of Clinton, North Carolina – 96 months in prison
- David Williams of Harrells, North Carolina – 90 months in prison
- Earl Melvin of Clinton, North Carolina – 60 months in prison
- Darryl McKoy of Garland, North Carolina- 48 months in prison
- Derrell Wilson of Warsaw, North Carolina – 42 months in prison
- Andrekia Parker of Clinton, North Carolina – 30 months in prison
- Bryant Carr of Harrells, North Carolina – 27 months in prison
- Harry Oates of Wilmington, North Carolina – 21 months in prison
- Russell Bell of Clinton, North Carolina – 15 months in prison
- Bryan Carr – 12 months in prison
- Braylynn Spencer of Willington, North Carolina– 12 months in prison
- Craig Melvin of Raleigh, North Carolina – 12 months in prison
- Anthony Barnes of Garland, North Carolina – 11 months in prison
- Ryan Carr of Clinton, North Carolina – 36 months’ probation
The case is a federal Organized Crime Drug Enforcement Task Force (OCDETF) criminal matter that was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Sampson County Sheriff’s Office, Internal Revenue Service Criminal Investigation, U.S. Probation Office, the North Carolina State Bureau of Investigation, North Carolina State Highway Patrol, and the North Carolina Departments of Revenue and Emergency Management. Assistant United States Attorneys Brad Knott and Toby Lathan prosecuted the case on behalf of the United States.
Rowan County Meth Dealer Sentenced to 16 Years in PrisonRead the Press Release
GREENSBORO, N.C. - A North Carolina resident was sentenced to sixteen years in prison for on June 25, 2019, for distributing methamphetamine, conspiracy, and money laundering in Rowan County, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
SALVADOR VALADEZ, JR., age 37, of Salisbury, North Carolina, was sentenced to 192 months’ imprisonment by the Honorable Thomas D. Schroeder in federal court in Winston-Salem. VALADEZ pleaded guilty to conspiracy to distribute methamphetamine and conspiracy to commit money laundering in Rowan County. In addition to the prison term he was ordered to serve a five-year term of supervised release after completing his sentence.
According to documents filed in court, a multi-agency, multi-state investigation identified VALADEZ as a large-scale supplier of methamphetamine in Salisbury, Rowan County, North Carolina. Using a cooperating witness, agents recorded a sale of approximately four ounces of methamphetamine by VALADEZ on October 10, 2017, in Salisbury. Other persons engaged in drug trafficking who were identified in this investigation also indicated that VALADEZ was a drug distributor, selling quantities ranging from four ounces to one-half kilogram of methamphetamine. VALADEZ stated to others that he received his supply of methamphetamine by air smuggling and by mail, and that he transferred money to his suppliers through wire services.
This case was investigated by the Rowan County Sheriff’s Department, Salisbury Police Department, North Carolina State Bureau of Investigation, Mocksville Police Department, and Yadkinville Police Department. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Repeat Cocaine Kingpin Robert Shepherd Sentenced to 13 Years in Federal PrisonRead the Press Release
WILMINGTON, Del. – A Philadelphia drug trafficker with ties to Wilmington was sentenced by Chief U.S. District Judge Leonard P. Stark on Wednesday, June 26, 2019, to 13 years in prison for conspiring to distribute cocaine. According to court documents and statements made in open court, defendant Robert Shepherd, III, 43, originally from Wilmington, lived an extravagant lifestyle in Philadelphia funded by trafficking cocaine. Shepherd sent kilogram quantities of that cocaine to co-defendant Brian Wilson in Wilmington, Delaware.
Shepherd’s conviction is the result of a long-term New Castle County High Intensity Drug Trafficking Area (“HIDTA”) investigation spearheaded by the FBI Delaware Violent Crime Safe Streets Taskforce. Investigators seized four firearms, over five kilograms of cocaine, and roughly 150 grams of heroin as part of the case. This was Shepherd’s second federal drug conviction. The defendant was sentenced in 2010 for his leading role in distributing over 100 kilograms of cocaine in Philadelphia and Wilmington. Shepherd was under supervision by the federal court at the time that he committed this second drug trafficking offense.
U.S. Attorney Weiss stated, “Robert Shepherd has made a career off the suffering of Delawareans addicted to illegal drugs. The Court’s sentence demonstrates that large scale traffickers will be punished significantly for their crimes. My office will continue to work with our law enforcement partners to ensure that career drug traffickers like Mr. Shepherd are brought to justice.”
Assistant U.S. Attorney Christopher L. de Barrena-Sarobe prosecuted the case. The FBI was assisted in this case by Wilmington Police Department and the Delaware Attorney General’s Office.
The FBI Delaware Violent Crime Safe Streets Taskforce is a part of the New Castle County HIDTA, comprised of the Delaware State Police, Delaware Department of Probation and Parole, New Castle County Police Department, University of Delaware Police Department, and Wilmington Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District of Delaware for the District of Delaware or on PACER by searching for Case No. 1:16-cr-00093.
Religion Instructor Sentenced for Illegal Sexual Conduct with Minor StudentRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 10 years in prison for enticing a minor to engage in sexual conduct and transferring obscene matter to a minor.
According to court documents, Seitu Sulayman Kokayi, 30, was a content developer at the University of Maryland University College campus and a Quran instructor at a mosque in Washington, D.C. from 2009 until his arrest in August 2018. The victim was 15 years of age and was a student of Kokayi until the time of his arrest. Over a three week period in August 2018, Kokayi and the victim communicated by phone on 256 occasions for over 32 hours. They also had 43 FaceTime sessions. Kokayi engaged the minor victim in sexually explicit conversations, proceeding to entice the child to disrobe and engage in sexual acts over FaceTime. Kokayi also exposed himself to the victim, masturbating on FaceTime with the victim on multiple occasions. Also according to court records, Kokayi promoted support for the Islamic State and other violent activity by sending videos and other jihadist propaganda to his students, family members and friends.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and John P. Selleck, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Kellen S. Dwyer, Dennis M. Fitzpatrick and Department of Justice Trial Attorney Joseph Attias prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-410.
Raytheon Company Agrees to Pay $1 Million in Settlement of Claim Involving Procurement FraudRead the Press Release
LAS VEGAS, Nev. – United States Attorney Nicholas A. Trutanich announced today that Raytheon Company, a supplier of equipment to various Government agencies, has agreed to pay $1.075 million to resolve allegations that it violated the False Claims Act by inducing the County of Los Angeles, California, to enter into a contract funded by a federal grant, based on misrepresentations regarding Raytheon’s capability to provide the products involved. Raytheon was contracted to provide interoperable dispatch consoles to the County of Los Angeles for its sheriff and fire departments.
The False Claims Act is the United States’ primary civil remedy to redress false claims for government funds and property under government programs and contracts relating to such varied areas as health care, defense and national security, food safety and inspection, federally insured loans and mortgages, highway funds, small business contracts, agricultural subsidies, and disaster assistance.
The case was investigated by the Department of Homeland Security Office of Inspector General. Assistant U.S. Attorney Roger Wenthe from the District of Nevada litigated the case.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
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Randolph County Man Gets 14 Years for Dealing MethRead the Press Release
Lewis D. Higgins, 54, of Ruma, Illinois, has been sentenced to 168 months in federal prison on a methamphetamine violation, U.S. Attorney Steven D. Weinhoeft announced today. Higgins previously pleaded guilty to a single-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine. His sentence included a four-year term of supervised release and a fine of $200.
Evidence at the plea and sentencing hearings established that, between 2016 and June 2018, Higgins was involved with co-defendant David M. Bereitschaft and others in the distribution of methamphetamine in Perry and Randolph counties. The judge found that Higgins was responsible for the distribution of 7.5 kilograms of ice (methamphetamine with a purity level of at least 80 percent). Higgins also received an enhanced sentence based on his possession of firearms during the drug conspiracy.
Bereitschaft pleaded guilty to his role in the conspiracy earlier this year and is scheduled to be sentenced on August 13, 2019.
The investigation was conducted by the Randolph County Sheriff’s Office, the Jackson County Sheriff’s Office, the Sparta Police Department, the Chester Police Department, the Tilden Police Department, the Marissa Police Department, the St. Clair County Sheriff’s Office Drug Tactical Unit, the Drug Enforcement Administration, and the FBI. The Randolph County State’s Attorney’s Office also assisted in the investigation.
Owner of Engineering Firms Sentenced to Five Years in Prison for Tax SchemeRead the Press Release
Wagdy A. Guirguis, owner of several engineering businesses, was sentenced today to five years in prison in Honolulu, Hawaii, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Kenji M. Price for the District of Hawaii.
On Nov. 20, 2018, a jury convicted Guirguis of conspiracy to defraud the United States along with co-conspirator Michael Higa. In addition, Guirguis was also convicted of three counts of filing false corporate income tax returns, one count of failure to file a corporate income tax return, three counts of tax evasion, one count of corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), and one count of witness tampering. The convictions arose from a scheme to divert funds from Guirguis’ business entities for his own personal benefit and to avoid the payment of federal employment taxes, corporate and individual income taxes, and IRS penalties.
According to the evidence presented at trial, Guirguis operated numerous engineering businesses. Higa, a Certified Public Accountant (CPA), was the controller of these businesses. Higa also served as a nominee officer of another entity controlled by Guirguis. When the IRS determined Guirguis’ businesses owed over $800,000 in federal employment taxes and assessed an $812,000 penalty, Guirguis and Higa took steps to place income and assets out of the reach of the IRS. For instance, Guirguis and Higa used the nominee entity to fraudulently convey a condominium to Guirguis’ wife. After an IRS revenue officer began questioning Mrs. Guirguis’ sole ownership of this condominium, Guirguis and Higa instructed a bookkeeper to alter the books and records in an attempt to conceal this transaction from the IRS.
From 2001 through 2012, Guirguis and Higa also used the nominee entity to divert approximately $1.3 million from Guirguis’ businesses for Guirguis’ personal use. As a result of their diversion and the concealment efforts, Guirguis’ 2010 through 2012 returns omitted $553,000 in income, resulting in a tax deficiency of $165,000.
In addition, Guirguis filed corporate income tax returns that fraudulently omitted millions of dollars of gross receipts. For one of his businesses, Guirguis simply did not file a corporate tax return, thereby not reporting more than $1.7 million in gross receipts.
After the IRS levied the bank accounts of one business, Guirguis diverted incoming funds owed to that business, directing payment of the funds to a different business. Guirguis also instructed a tenant to disregard IRS collection notices and pay rent directly to him rather than to the IRS. Moreover, Guirguis made false and misleading statements to IRS revenue officers, all in an effort to obstruct the IRS’ efforts to collect on the taxes he and his companies owed.
To impede the criminal investigation into his tax violations, Guirguis falsely told an employee, who had testified before the grand jury, that he did not know about the false backdating in the books of the nominee entity, and asked the employee to sign a false statement to that effect.
In addition to the term of imprisonment, U.S. District Judge Helen Gillmor ordered Guirguis to serve 3 years of supervised release, and to pay a $925 special assessment, $6,730.24 in prosecution costs, and $3,308,868 in restitution to the IRS minus any payments already made to the IRS.
Sentencing for Michael Higa is scheduled for July 1.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Price thanked special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Senior Litigation Counsel John Sullivan and Trial Attorney Anahi Cortada and Assistant United States Attorney Rebecca Perlmutter, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Betty Ford Center Reaches Settlement with Justice Department to Improve Access for Individuals with DisabilitiesRead the Press Release
LOS ANGELES – The Hazelden Betty Ford Foundation has entered into a settlement agreement with the United States in which it agrees to remove architectural barriers to access at the Betty Ford Center, a well-known drug and alcohol treatment facility it owns and operates in Rancho Mirage.
The settlement agreement, which was finalized today, resolves allegations that the Betty Ford Center violated the Americans with Disabilities Act (ADA), which prohibits discrimination by places of public accommodation against individuals with disabilities. Hazelden, a Center City, Minnesota-based addiction treatment and advocacy organization, fully cooperated with the government’s investigation.
“People should never be deterred or impeded from seeking treatment for drug or alcohol addiction because of a physical disability,” said United States Attorney Nick Hanna. “Our office will enforce the rights of individuals with disabilities to access healthcare without barriers. We commend Hazelden for taking steps to comply with the ADA to ensure that the Betty Ford Center is accessible to all.”
Under the settlement agreement, Hazelden must:
- Remove existing barriers to access throughout the Betty Ford Center, including in-patient rooms, restrooms and common areas;
- Ensure that any new buildings constructed on the Betty Ford Center campus are accessible;
- Relocate equipment and furniture where necessary to provide equal access to facilities; and
- Modify practices, policies and procedures to ensure that people with disabilities have full and equal access to all of the services offered by the Betty Ford Center.
Assistant United States Attorney Matthew Nickell of the Civil Division’s Civil Rights Section handled this matter in conjunction with the Disability Rights Section of the Justice Department’s Civil Rights Division.
For more information on the ADA or this settlement agreement, please call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Owner of Tampa-Area Medical Marketing Company Found Guilty in $2 Million Medicare Fraud SchemeRead the Press Release
Tampa, FL – A federal jury found the owner of a Tampa-area medical marketing company guilty today for his role in an over $2.2 million Medicare fraud scheme involving the payment of kickbacks and bribes to medical clinics in Miami in exchange for the referral of DNA swabs that were obtained from Medicare beneficiaries.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Michael McPherson of the FBI’s Tampa Field Office and Assistant Inspector General Shimon Richmond of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Following a four-day trial, David Brock Lovelace, 49, of Land o’ Lakes, Florida, the owner of DBL Management LLC was found guilty of one count of conspiracy to pay health care kickbacks and one count of structuring currency transactions to avoid reporting requirements. Lovelace is expected to be sentenced on Oct. 2, 2019, by U.S. District Judge Susan C. Bucklew of the Middle District of Florida, who presided over the trial.
According to the evidence presented at trial, Lovelace was paid by Clinical Laboratory Company A for each DNA swab that Lovelace arranged to be referred to the laboratory. In order to obtain DNA swabs, Lovelace paid cash kickbacks and bribes to medical clinics in Miami in exchange for the referral of DNA swabs that were obtained from Medicare beneficiaries. Lovelace directed the owners of the medical clinics to collect the DNA of all of the patients at the clinics, regardless of medical necessity.
In the first phase of the scheme, from November 2013 to May 2014, the evidence at trial showed that Lovelace paid these cash kickbacks directly. In the second phase of the scheme, from May 2014 to November 2014, after his arrest on other charges, Lovelace established shell companies, including Healthcare Marketing Florida of Melbourne, Florida, and conspired with nominee owners to facilitate the payment of kickbacks, receipt of fraud proceeds, and transfer of unlawfully obtained DNA samples for medically unnecessary testing. Over the course of the entire conspiracy, Clinical Laboratory Company A submitted over $2.2 million in genetic testing claims and paid Lovelace a percentage of the Medicare reimbursements that it received.
In order to conceal his payment of illegal cash kickbacks, the evidence at trial showed that Lovelace would travel to different ATM’s and bank branches throughout Southern Florida and make separate withdrawals of thousands of dollars in cash in order to avoid the filing of U.S. Department of Treasury “currency transaction reports” for an individual withdrawal of over $10,000.
Lovelace was previously found guilty by a jury in December 2015 of various health care fraud, money laundering and identity theft charges in a case handled by the Criminal Division’s Fraud Section. He is currently serving 14 years in prison.
The case was investigated by the FBI and HHS, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the U.S. Department of Justice, Criminal Division, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. The case is being prosecuted by Trial Attorney John Michelich and Acting Assistant Chief Jacob Foster of the Fraud Section.
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.
Our Lady of Lourdes Agrees to Pay over $1.1M to Resolve Claims It Failed to Perform Background Checks, Fraudulently Billed U.S. for Community Service GrantsRead the Press Release
PHILADELPHIA and CAMDEN – United States Attorneys William M. McSwain for the Eastern District of Pennsylvania and Craig Carpenito for the District of New Jersey jointly announced that Our Lady of Lourdes Health Foundation and two related Our Lady of Lourdes companies have agreed to pay $1,143,881.19 to resolve claims arising from Lourdes’ administration of community service grants funded through the Corporation for National and Community Service (CNCS).
From 2012 until 2017, Lourdes administered multiple grants in CNCS’s Senior Corps program, including in the Foster Grandparent Program (FGP), which places seniors in school and community settings to serve alongside youth with exceptional needs, and the Senior Companion Program (SCP), which places seniors in community and residential settings to assist other seniors who have difficulty with tasks of daily living. These programs provide small hourly stipends to the volunteers performing these services, who undergo training and must clear criminal history checks to ensure their suitability for service.
From 2014 until 2017, Lourdes either failed to perform these criminal history checks or failed to keep records of doing so. As a result, 46 individuals were permitted to serve in an FGP or SCP project without any documentation that they received one or more of the required criminal history checks. When a monitoring visit was scheduled in 2017, Lourdes employees cut-and-pasted other background checks in an attempt to conceal this failure from CNCS officials.
In addition, Lourdes employees – including two program supervisors – falsely completed time sheets showing program participants serving hours that were impossible, because the locations at which they were purportedly serving were closed.
When the United States commenced its formal investigation in 2017 and brought these issues to the attention of senior Lourdes management, Lourdes voluntarily relinquished the grants immediately and terminated all of the employees who had participated in the grant administration. Lourdes has actively cooperated with the United States since its senior management was advised of the issues in the grant programs. As part of this cooperation, it performed appropriate criminal history checks on all program participants and determined that all 46 individuals would have been permitted to participate in the programs had those checks been performed in a timely manner originally.
“Criminal history checks are a critical protection for the vulnerable populations with whom Senior Companions and Foster Grandparents work,” said U.S. Attorney McSwain. “Strict compliance with the requirements for these essential safeguards is necessary to ensure that predators do not gain access to potential victims. And every federal grantee, including community service organizations, is required to honestly and openly report the service that its volunteers perform. Every dollar spent on an hour that was not actually served is one that is not available to support other community service efforts.”
“Just as important as the work these volunteers do is the system that has been set up to ensure that they have been thoroughly vetted,” U.S. Attorney Carpenito said. “Whether they failed to keep accurate records of the results of these criminal background checks – or just failed to do them – the results were the same. Our Lady of Lourdes potentially put their clients’ safety at risk. And billing for no-show employees cannot be tolerated, especially when taxpayer dollars are being spent.”
“This fraud deprived school children and senior citizens of promised services and jeopardized their safety with bogus criminal history checks for the volunteers who served them,” said CNCS’s Inspector General Deborah J. Jeffrey. “We hope that the substantial penalties included in this settlement will deter other grantees from similar misconduct. We commend our partners at the Department of Justice for their outstanding efforts in pursuing fraud against national service programs.”
United States Attorneys McSwain and Carpenito praised Lourdes’ work in addressing the issues in these programs: “We appreciate the seriousness with which Lourdes senior management has taken this issue and the prompt, aggressive remedial actions that they took to prevent further harm to CNCS programs and potential harm to vulnerable communities. We hope this settlement will serve as a message to other managers to be vigilant in overseeing government-funded programs and to ensure that employees do not attempt to conceal any non-compliance.”
This investigation was conducted jointly by the United States Attorney’s Offices for the Eastern District of Pennsylvania and District of New Jersey with the Corporation for National and Community Service Office of Inspector General. Assistant United States Attorneys Paul W. Kaufman and Veronica Finkelstein of the Eastern District of Pennsylvania and Jessica O’Neill of the District of New Jersey handled the investigation and settlement. This case was initiated as part of the U.S. Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement (ACE) Strike Force focus on grant fraud.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Orlando Man Sentenced to 15 Years in Federal Prison for RobberiesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Adrian Gomez (20, Orlando) to 15 years in federal prison for committing armed robberies of a pizza delivery driver, a taxi cab driver, and a shoe salesman, and for brandishing and possessing firearms during crimes of violence. Gomez had pleaded guilty on March 27, 2019.
According to court documents, on September 11, 2018, Gomez robbed a Pizza Hut delivery driver at gunpoint, taking approximately $190 in cash, as well as a number of Pizza Hut products. On September 16, 2018, Gomez robbed a shoe salesman at gunpoint, taking from him several pair of shoes worth approximately $800. The following day, Gomez robbed a taxicab driver at gunpoint, taking the driver’s watch, wallet, iPhone X, and approximately $100 in cash.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
This case was brought as part of Project Safe Neighborhoods (“PSN”). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Orange County Man Convicted of Bankruptcy FraudRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Christopher Coburn (34, Winter Garden) guilty of five counts of bankruptcy fraud and two counts of falsification of records in a bankruptcy proceeding. He faces a maximum penalty of 5 years’ imprisonment for each bankruptcy fraud count and up to 20 years in prison for each falsification of records count. His sentencing hearing has been scheduled for September 9, 2019.
According to testimony and evidence presented at trial, Coburn solicited homeowners whose mortgages were in default and offered to rescue their homes from foreclosure. In order to prevent the Federal National Mortgage Association (“Fannie Mae”) and multiple financial institutions holding mortgages from lawfully foreclosing on homeowners’ properties, Coburn engaged a bankruptcy fraud scheme in which he filed or caused to be filed fraudulent bankruptcy petitions in the name of the homeowner, without homeowner’s knowledge or consent, just prior to the scheduled foreclosure sale dates. These fraudulent bankruptcies invoked the automatic stay provision of the bankruptcy code, preventing Fannie Mae and the financial institutions from conducting lawful foreclosure sales and obtaining title to the property. The fraudulent bankruptcy petitions filed by Coburn enabled him to collect fees and allowed him to refer the properties to real estate agents in order to obtain ill-gotten commissions for short-sales. Coburn also filed other false and fraudulent bankruptcy forms in the names of some homeowners relied on by the Office of the United States Trustee and the United States Bankruptcy Court for the Middle District of Florida.
This case was investigated by the Federal Housing Finance Agency—Office of Inspector General, with substantial assistance from the Office of the United States Trustee for the Middle District of Florida. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Ohio Man Sentenced to Life in Prison for Federal Hate Crimes Related to August 2017 Car Attack at Rally in Charlottesville, VirginiaRead the Press Release
WASHINGTON – James Alex Fields Jr., 22, the Ohio man who drove his car into a crowd of counter-protestors at the “Unite the Right Rally” on Aug. 12, 2017, killing one woman and injuring dozens, was sentenced today in the Western District of Virginia to life in prison for his crimes. Fields previously pleaded guilty to 29 violations of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, 18 U.S.C. § 249, for the attack.
“Hatred and bigotry have no place in our nation. Violent actions inspired by such warped thinking are a disgrace to our people and our values, and the Department of Justice will not tolerate such depraved acts,” said Assistant Attorney General Eric Dreiband. “Prosecuting hate crimes and acts of domestic terrorism continues to be a top priority for the Department of Justice. Anyone who commits a crime motivated by hatred for the race, color, religion, national origin or other protected trait of any person should be on notice: the United States government will use its enormous power to bring perpetrators to justice, and we will continue to do so for as long as it takes to rid our nation of these vile and monstrous crimes.”
“On August 12, 2017, this defendant committed a hate-inspired act of domestic terrorism that killed 32-year-old Heather Heyer and injured over 30 peaceful protesters,” U.S. Attorney Thomas T. Cullen stated. “We believe that his life sentence furthers the Department of Justice’s substantial interest in prosecuting hate crimes and protecting the civil rights of all Americans. We are grateful for the dedication and hard work of the FBI and the Virginia State Police in investigating this matter and bringing the defendant to justice.”
“Hate crimes are not just an attack on the victim: they are also meant to threaten and intimidate an entire community,” said Special Agent in Charge David Archey of the FBI’s Richmond Division. “This is also a case of domestic terrorism, and we must send a message that terrorism and hatred-inspired violence have no place in our communities. The FBI will continue to work with our law enforcement partners to ensure Virginia’s citizens do not fall victim to violence because of hateful ideologies or intolerance of others. The FBI is grateful to the Office of the United States Attorney, the Virginia State Police, the Charlottesville Police Department, and to all the members of the public who assisted in this investigation.”
At his plea hearing on March 27, Fields admitted under oath that he drove into the crowd of counter-protestors because of the actual and perceived race, color, national origin, and religion of its members. He further admitted that his actions killed Heather Heyer, and that he intended to kill the other victims he struck and injured with his car in the crowd.
Fields also admitted that, prior to Aug. 12, 2017, he used social media accounts to express and promote white supremacist views; to express support for the social and racial policies of Adolf Hitler and Nazi-era Germany, including the Holocaust; and to espouse violence against African Americans, Jewish people, and members of other racial, ethnic, and religious groups he perceived to be non-white.
Fields further admitted that, on Aug. 12, 2017, he attended the “Unite the Right” rally in Emancipation Park in Charlottesville, Virginia. That morning, multiple groups and individuals espousing white-supremacist ideology also attended the rally. These rally participants, including Fields, engaged in chants promoting or expressing white supremacist and other racist and anti-Semitic views.
Shortly before the scheduled start of the Unite the Right rally, law enforcement declared an “unlawful assembly” and required rally participants, including Fields, to disperse. Fields later returned to his vehicle and began to drive on the streets of Charlottesville, Virginia.
Fields drove his car onto Fourth Street, a narrow, downhill, one-way street in downtown Charlottesville. At or around that same time, a racially and ethnically diverse crowd had gathered at the bottom of the hill, at the intersection of Fourth and Water Streets. Many of the individuals in the crowd were celebrating as they were chanting and carrying signs promoting equality and protesting against racial and other forms of discrimination. Fields slowly proceeded in his vehicle down Fourth Street toward the crowd. He then stopped and observed the crowd while idling in his vehicle. With no vehicle behind him, Fields then slowly reversed his vehicle toward the top of the hill and away from the crowd of counter-protestors.
At or around that same time, the members of the crowd began to walk up the hill, populating the streets and sidewalks between the buildings on Fourth Street. Having reversed his car to a point at or near the top of the hill and the intersection of Fourth and Market Streets, Fields stopped again. Fields admitted that he then rapidly accelerated forward down Fourth Street in his vehicle, running through a stop sign and across a raised pedestrian mall, and drove directly into the crowd. Fields’s vehicle stopped only when it struck another stopped vehicle near the intersection of Fourth and Water Streets. Fields then rapidly reversed his car and fled the scene. As Fields drove into and through the crowd, Fields struck numerous individuals, killing Heather Heyer and injuring dozens of people nearby.
The investigation of the case was led by the FBI and was supported by the Charlottesville Police Department and the Virginia State Police. The case is being prosecuted by United States Attorney Thomas T. Cullen, Assistant United States Attorney Christopher Kavanaugh, and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division.
Ohio Man Sentenced to Life in Prison for Federal Hate Crimes Related to August 2017 Car Attack at Rally in Charlottesville, VirginiaRead the Press Release
James Alex Fields Jr., 22, the Ohio man who drove his car into a crowd of counter-protestors at the “Unite the Right Rally” on Aug. 12, 2017, killing one woman and injuring dozens, was sentenced today in the Western District of Virginia to life in prison for his crimes. Fields previously pleaded guilty to 29 violations of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, 18 U.S.C. § 249, for the attack.
“Hatred and bigotry have no place in our nation. Violent actions inspired by such warped thinking are a disgrace to our people and our values, and the Department of Justice will not tolerate such depraved acts,” said Assistant Attorney General Eric Dreiband. “Prosecuting hate crimes and acts of domestic terrorism continues to be a top priority for the Department of Justice. Anyone who commits a crime motivated by hatred for the race, color, religion, national origin or other protected trait of any person should be on notice: the United States government will use its enormous power to bring perpetrators to justice, and we will continue to do so for as long as it takes to rid our nation of these vile and monstrous crimes.”
“On August 12, 2017, this defendant committed a hate-inspired act of domestic terrorism that killed 32-year-old Heather Heyer and injured over 30 peaceful protesters,” U.S. Attorney Thomas T. Cullen stated. “We believe that his life sentence furthers the Department of Justice’s substantial interest in prosecuting hate crimes and protecting the civil rights of all Americans. We are grateful for the dedication and hard work of the FBI and the Virginia State Police in investigating this matter and bringing the defendant to justice.”
“Hate crimes are not just an attack on the victim: they are also meant to threaten and intimidate an entire community,” said Special Agent in Charge David Archey of the FBI’s Richmond Division. “This is also a case of domestic terrorism, and we must send a message that terrorism and hatred-inspired violence have no place in our communities. The FBI will continue to work with our law enforcement partners to ensure Virginia’s citizens do not fall victim to violence because of hateful ideologies or intolerance of others. The FBI is grateful to the Office of the United States Attorney, the Virginia State Police, the Charlottesville Police Department, and to all the members of the public who assisted in this investigation.”
At his plea hearing on March 27, Fields admitted under oath that he drove into the crowd of counter-protestors because of the actual and perceived race, color, national origin, and religion of its members. He further admitted that his actions killed Heather Heyer, and that he intended to kill the other victims he struck and injured with his car in the crowd.
Fields also admitted that, prior to Aug. 12, 2017, he used social media accounts to express and promote white supremacist views; to express support for the social and racial policies of Adolf Hitler and Nazi-era Germany, including the Holocaust; and to espouse violence against African Americans, Jewish people, and members of other racial, ethnic, and religious groups he perceived to be non-white.
Fields further admitted that, on Aug. 12, 2017, he attended the “Unite the Right” rally in Emancipation Park in Charlottesville, Virginia. That morning, multiple groups and individuals espousing white-supremacist ideology also attended the rally. These rally participants, including Fields, engaged in chants promoting or expressing white supremacist and other racist and anti-Semitic views.
Shortly before the scheduled start of the Unite the Right rally, law enforcement declared an “unlawful assembly” and required rally participants, including Fields, to disperse. Fields later returned to his vehicle and began to drive on the streets of Charlottesville, Virginia.
Fields drove his car onto Fourth Street, a narrow, downhill, one-way street in downtown Charlottesville. At or around that same time, a racially and ethnically diverse crowd had gathered at the bottom of the hill, at the intersection of Fourth and Water Streets. Many of the individuals in the crowd were celebrating as they were chanting and carrying signs promoting equality and protesting against racial and other forms of discrimination. Fields slowly proceeded in his vehicle down Fourth Street toward the crowd. He then stopped and observed the crowd while idling in his vehicle. With no vehicle behind him, Fields then slowly reversed his vehicle toward the top of the hill and away from the crowd of counter-protestors.
At or around that same time, the members of the crowd began to walk up the hill, populating the streets and sidewalks between the buildings on Fourth Street. Having reversed his car to a point at or near the top of the hill and the intersection of Fourth and Market Streets, Fields stopped again. Fields admitted that he then rapidly accelerated forward down Fourth Street in his vehicle, running through a stop sign and across a raised pedestrian mall, and drove directly into the crowd. Fields’s vehicle stopped only when it struck another stopped vehicle near the intersection of Fourth and Water Streets. Fields then rapidly reversed his car and fled the scene. As Fields drove into and through the crowd, Fields struck numerous individuals, killing Heather Heyer and injuring dozens of people nearby.
The investigation of the case was led by the FBI and was supported by the Charlottesville Police Department and the Virginia State Police. The case is being prosecuted by United States Attorney Thomas T. Cullen, Assistant United States Attorney Christopher Kavanaugh, and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division.
For more information about Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Nigerian Man Sentenced to Prison for Defrauding the IRSRead the Press Release
ALEXANDRIA, Va. – A Nigerian man who formerly resided in Herndon was sentenced today to one year in prison for his involvement in stealing income tax refunds in 2015 and laundering the proceeds of his crimes.
According to court documents, Odewale Abraham, 50, pleaded guilty to two counts of theft of government money and to two counts of money laundering. Abraham controlled three bank accounts into which income tax refunds were wired. The tax returns were filed electronically in the names of actual taxpayers, but their refunds were fraudulently directed to bank accounts controlled by Abraham.
Abraham would then make cash withdrawals or use debit cards to purchase multiple Money Gram money orders in denominations of $990 or $995 at a Walmart in Vienna. Most of the Money Gram orders were made payable to Odewale Abraham, but were purchased with a debit card from an account that had been fraudulently opened in another person’s name. The purchase of the money orders was designed in whole or in part to conceal the nature and source of the proceeds of the specified unlawful activity.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Special Assistant U.S. Attorney Russell L. Carlberg prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-167.
New Haven Man Charged with Illegally Possessing HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging ERRIE McCLENDON, also known as “Buck,” 28, of New Haven, with one count of possession of a firearm by a convicted felon.
The indictment was returned on June 11, 2019. McClendon appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and entered a plea of not guilty to the charge. McClendon was ordered detained pending trial.
As alleged in the indictment, on May 11, 2019, McClendon possessed a Ruger, model P85, 9mm pistol with an obliterated serial number. Prior to that date, McClendon had been convicted in state court of felony narcotics and larceny offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the offense, McClendon faces a maximum term of imprisonment of 10 years.
McClendon has been detained since June 19, 2019, when he was arrested on a state probation violation charge.
U.S. Attorney Durham stressed that charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Myrtle Beach Man Sentenced to Nearly 4 Years in Federal Prison on Federal Gun ChargeRead the Press Release
Florence, South Carolina --- United States Attorney Sherri A. Lydon announced today that Sedrick Lemont Jenkins, 42, of Myrtle Beach, was sentenced to nearly four years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on July 30, 2018, Horry County Police Department officers received a call for service in reference to a suspicious car blocking the roadway on a street in Aynor, South Carolina. Upon arrival, officers located the car in question and conducted a traffic stop. Upon approaching the driver, Sedrick Jenkins, officers noted an odor of marijuana coming from the car. Officers deployed a K9 unit, which gave a positive alert to the odor of narcotics, and officers searched the car. During the search, officers found a loaded Smith and Wesson 9mm handgun behind a panel in the passenger side floor compartment. Jenkins is prohibited from possessing a firearm based on his prior federal drug convictions and his prior federal conviction for felon in possession of ammunition.
Chief United States District Judge R. Bryan Harwell of Florence sentenced Jenkins to 46 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Horry County Police Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Lauren L. Hummel of the Florence office prosecuted the case.
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Muskego Small Business Owner Sentenced for Tax EvasionRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced on June 27, 2019 that Steven M. Rader (age 37) of Muskego, Wisconsin, was sentenced to five months in federal prison for stealing more than $89,000 from the federal government via a tax evasion scheme that began in 2012. Rader was also ordered to pay more than $195,000 in restitution.
Rader’s tax evasion scheme related to an entertainment business he owned and operated starting in 2012. Despite the fact that the business generated significant income, Rader failed to report any of that income on his federal tax returns for the years 2012 to 2014. In total, Rader understated his income by over $500,000 and underpaid his taxes by over $89,000.
Rader also made significant efforts to conceal his tax evasion by filing false amended tax returns and lying to federal investigators about his sources of income.
While sentencing Rader, U.S. District Judge Joseph P. Stadtmueller discussed the vital importance of adequately and appropriately filing tax returns and stated that the sentence imposed was necessary to promote respect for the law as an institution.
“The honest women and men who pay their taxes dutifully deserve to know that tax cheats face time in federal prison. We are committed to defending the integrity of our government by prosecuting tax crimes aggressively.” said U.S. Attorney Krueger.
“Tax violations have incorrectly been referred to as victimless crimes, but it's the honest law-abiding citizen who is harmed when someone such as Steven Rader tries to manipulate our nation's tax system," said Tara Sullivan, IRS Criminal Investigation Special Agent in Charge, Chicago Field Office. "The courts have overwhelmingly and continuously shown that you will be held accountable for such actions, and today's sentencing is a costly reminder."
This matter was investigated by the Criminal Investigation Division of the Internal Revenue Service and was prosecuted by Assistant United States Attorneys Julie F. Stewart and Matthew Jacobs.
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Meth Distribution in Southern Illinois Lands Missouri Man Behind Bars for 16 YearsRead the Press Release
Scott A. Carnell, 36, of Pacific, Missouri, has been sentenced to 192 months in federal prison on a methamphetamine violation, U.S. Attorney Steven D. Weinhoeft announced today. Carnell previously pleaded guilty to a single-count indictment charging conspiracy to distribute more than 50 grams of methamphetamine. Carnell’s 16-year federal sentence was ordered to run consecutively to a five-year sentence he is currently serving in the Illinois Department of Corrections on an unrelated conviction in Randolph County.
Evidence at the plea and sentencing hearings established that Carnell was involved with numerous others in the distribution of methamphetamine in Southern Illinois. The judge found that Carnell was responsible for the distribution of 2.37 kilograms of ice (methamphetamine with a purity level of at least 80 percent). The offense occurred between 2017 and August 2018, in Jackson, Randolph, and St. Clair Counties.
As part of his sentence, Carnell was also ordered to serve four years on supervised release and pay $300 in fines.
The investigation was conducted by the Randolph County Sheriff’s Office, the Jackson County Sheriff’s Office, the Sparta Police Department, the New Athens Police Department, the Marissa Police Department, the St. Louis County Police Department, the Brentwood (Missouri) Police Department, the Drug Enforcement Administration, and the FBI. The Randolph County State’s Attorney’s Office also assisted in the investigation.
Meridian Man Sentenced to Almost 8 Years in Prison for Cocaine TraffickingRead the Press Release
Jackson, Miss. – Kenneth Dewayne Williams, 45, of Meridian, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 95 months in federal prison, followed by 5 years of supervised release, for possession with the intent to distribute 500 grams or more of cocaine, announced U.S. Attorney Mike Hurst and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (DEA). Williams was also ordered to pay a $1,500.00 fine.
Williams was indicted as the result of an extensive investigation, dubbed "Deadly Dose" which began as an operation targeting illegal narcotics distribution in central Mississippi that involved the distribution of heroin and cocaine. During the investigation, agents intercepted telephone calls between Williams and a coconspirator regarding a cocaine transaction. On December 4, 2017, agents conducted a traffic stop of Williams on Interstate 20, east of Jackson. Agents seized approximately 2 kilograms of cocaine and $17,000.00. Williams pled guilty before Judge Jordan on March 26, 2019.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, the Bureau of Alcohol Tobacco Firearms and Explosives, the U.S. Marshals Service, the Hinds County Sheriff’s Office, the Jackson Police Department, and the Internal Revenue Service. It was prosecuted by Assistant United States Attorney Chris Wansley.
Men Sentenced for Methamphetamine Drug ConspiracyRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced robert manley narron, 30, of Kenly, North Carolina to 91 months imprisonment, followed by 5 years of supervised release. On May 23, 2019, United States District Judge Louise W. Flanagan sentenced REYES JUAREZ PEREZ, 34, of Selma, North Carolina to 228 months imprisonment, followed by 5 years of supervised release.
The prosecution of NARRON and PEREZ was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF), which has focused on methamphetamine manufacturers and distributors in Johnston county.
NARRON and PEREZ were named in a nine-count Indictment filed on January 19, 2018 charging them with conspiracy to distribute and possess with the intent to distribute five hundred (500) grams or more of a mixture and substance containing a detectable amount of methamphetamine from February 7, 2017 until September 9, 2017; distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine, aiding and abetting. NARRON was also charged with possession with the intent to distribute five hundred (500) grams or more of a mixture and substance containing a detectable amount of methamphetamine and a quantity of cocaine; and possession of firearms in furtherance of a drug trafficking crime. On April 12, 2018, NARRON pled guilty to the conspiracy charge. On January 15, 2019, PEREZ pled guilty to all charges.
According to the investigation, PEREZ served as a supplier of crystal methamphetamine and supplied NARRON with such drugs, which were further distributed in Johnston County, North Carolina. NARRON and PEREZ sold over 200 grams of crystal methamphetamine to a confidential source working with law enforcement. Law enforcement arrested NARRON and searched his home where they located crystal methamphetamine, ammunition and burnt aluminum strips. Law enforcement arrested PEREZ and searched his home where they located three handguns, one of which was stolen, two rifles, ammunition and seven cell phones in PEREZ’s bedroom. Officers located over $34,000 in another room, over 1 kilogram of crystal methamphetamine, and 493 grams of cocaine. A small child also notified officers of a plastic bag in the kitchen containing 12.48 grams of cocaine.
PEREZ received a sentencing enhancement for maintaining a premises for the purpose of storing and/or distributing a controlled substance during the time of the drug conspiracy.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Drug Enforcement Administration and Johnston County Sheriff’s Office. Assistant United States Attorney Dena King represented the government.
Man Sentenced for Fraud Conspiracy and Identity TheftRead the Press Release
ALEXANDRIA, Va. – A New York man was sentenced today to four and a half years in prison for acquiring and using stolen personal information, including thousands of payment card numbers.
According to court documents, from October 2016 through September 2018, Merlin Laguerre, 31, and his co-conspirators, committed various acts of fraud that resulted in at least $1.3 million in real or intended loss. Members of the conspiracy acquired thousands of stolen payment card numbers, primarily transmitting this account information via email and text messages. Laguerre and members of the conspiracy enriched themselves by using the stolen payment card numbers to make fraudulent purchases, and, at times, did so via the contactless payment features of smartphones. Some of the items fraudulently purchased during the conspiracy included merchandise at retail stores located within the Eastern District of Virginia.
Court documents also indicate that Laguerre tried to aid further acts of fraud even after he was taken into federal custody. In particular, Laguerre used a telephone while detained to provide another person with assistance in navigating websites dedicated to trafficking stolen payment card information.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, and M. Jay Farr, Chief of Police, Arlington County Police Department, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Alexander P. Berrang and Laura Fong prosecuted the case.
The Henrico County Police Department provided significant assistance during this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-15.
Man Pleads Guilty to Transporting A Minor Across State Lines to Prostitute in Oakland, CaliforniaRead the Press Release
OAKLAND– Eugene Latrell McNeely, aka Sleepy, aka Slim Sleep da Mac, pleaded guilty in federal court to transportation of a minor with intent to prostitute, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable James Donato, U.S. District Judge, accepted the plea.
In pleading guilty, McNeely, 36, of Oakland, admitted that on October 3, 2015, he drove from Oakland to Salem, Oregon, picked up a fourteen-year-old minor female that he had been communicating with by text message and through Facebook messenger, and drove her across state lines back to Oakland, California to work as one of his prostitutes. For approximately three months thereafter, the minor female worked as a prostitute and McNeely was her pimp.
On November 1, 2018, a federal grand jury issued a superseding indictment charging McNeely with one count of transportation of a minor for prostitution, in violation of 18 U.S.C. § 2423(a); one count of sex trafficking of children, in violation of 18 U.S.C. §§ 1591(a)(1), (b)(2), and (c); and two counts of sex trafficking by force, fraud, or coercion, in violation of 18 U.S.C. §§ 1591(a)(1) and (b)(1). McNeely pleaded guilty to the first count. The remaining counts are pending.
McNeely is currently in federal custody awaiting sentencing. Judge Donato scheduled his sentencing hearing for October 16, 2019. The maximum statutory penalty for a violation of 18 U.S.C. § 2423(a) is life in prison, with a mandatory minimum term of ten years’ imprisonment, and a $250,000 fine. Any sentence imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Ross Weingarten and Shailika Kotiya are prosecuting the case with the assistance of Madeline Wachs. The prosecution is the result of an investigation by the FBI and the Oakland Police Department.
Man from Deming Faces Federal Charges of Possessing Firearm and Immunition as Convicted FelonRead the Press Release
ALBUQUERQUE – Patricio Saborio Fierro, 29, of Deming, N.M., appeared in federal court in Las Cruces, N.M., on Wednesday on a charge of possessing a firearm and ammunition as a convicted felon.
A grand jury returned an indictment on June 19, 2019, charging Fierro with one count of being a felon in possession of a firearm and ammunition. According to the indictment, Fierro knowingly possessed the firearm and ammunition after he was previously convicted of the felony offense of possession with intent to distribute marijuana.
The FBI arrested Fierro in Las Cruces on Tuesday. Fierro is currently in custody awaiting a detention hearing next Tuesday, July 2. He faces up to 10 years in prison if convicted of this offense. An indictment is only an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Las Cruces office of the FBI investigated this case with assistance from the Deming Police Department. Assistant U.S. Attorney Maria Y. Armijo of the Las Cruces Branch Office
Man from Casamero Lake, N.m., Charged with Assault Causing Serious Bodily Injury to Child in Indian Country Serious Bodily Injury to Child in Indian CountryRead the Press Release
ALBUQUERQUE – Kevin Ernest Lewis, 31, of Casamero Lake, N.M., appeared in federal court in Albuquerque today on charges of assault and child abuse resulting serious bodily injury to his daughter in Indian Country.
According to a criminal complaint, Lewis committed the offenses on May 28, 2019. He allegedly got into a fight with his girlfriend while driving back from a casino. Lewis beat his girlfriend with his fists and choked her. When he later got out of the car, she moved into the driver’s seat and drove home without him.
Lewis went to his girlfriend’s house where her mother tried to stop him from coming inside. Lewis responded by punching her mother and knocking her to the ground. Lewis then attacked his girlfriend again while she was holding their 4-month-old daughter in her arms. Lewis pulled his girlfriend outside of the house and knocked her to the ground causing their daughter to hit her head on concrete. Lewis kicked the child repeatedly as his girlfriend tried to shield her with his body. The child suffered a fractured skull and cerebral hemorrhage.
Lewis is currently in custody. He faces up to 10 years in prison if convicted of assault resulting in serious bodily injury and 18 years in prison if convicted of child abuse. A criminal complaint is only an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt at trial.
The Navajo Nation Department of Criminal Investigations investigated this case. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Long-Time Redmond, Washington Investment Advisor Sentenced to Prison for Defrauding Investors of more than $3 MillionRead the Press Release
A long-time investment advisor in Redmond, Washington was sentenced today in U.S. District Court in Seattle to five years in prison for defrauding more than 15 investors of more than $3 million, announced U.S. Attorney Brian T. Moran. DENNIS GIBB, 72, the President and owner of Sweetwater Investments Inc., pleaded guilty in March 2019, to wire fraud and falsification of records with the intent to obstruct a matter within the jurisdiction of the Securities and Exchange Commission (SEC). Simultaneously, GIBB and Sweetwater investment entered into a consent decree with the SEC liquidating the Sweetwater Income Flood LP Fund and barring GIBB from further investment activity. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said GIBB “entered into a scheme and deliberately, intentionally and knowingly stole money from people who came to him…. Many victims, late in their lives, entrusting him with money they intended to get them through the last years of their lives.”
“Those who invested with this defendant were not looking for the ridiculously large profits promised by some Ponzi schemers – they invested with the defendant because he promised them a secure, if modest, payout,” said U.S. Attorney Brian T. Moran. “Instead, over more than a decade this defendant stole their savings, retirement funds, future home down payments, and children’s education funds. To make matters worse, he provided victims with false tax documents, causing some to pay additional taxes on non-existent gains. This defendant not only robbed the victims financially, he stole their peace of mind and their trust.”
According to the criminal case filings and the SEC consent decree, GIBB created Sweetwater Income Flood Limited Partnership, a private fund Gibb managed, in 2008. As early as 2007, he began soliciting investors for the fund targeting those who wanted steady retirement income in the near future. Between 2007 and 2018, about 25 investors put about $7.3 million into the fund. GIBB secretly transferred more than $3.1 million from the fund for his own expenses. To hide his theft, GIBB sent investors falsified quarterly account statements. When the SEC began an examination of the Sweetwater Investments in May 2018, GIBB provided false records to examiners indicating the fund had been liquidated.
GIBB agreed to forfeit a money judgment of $3,197,401. The Court also ordered restitution of $4,233,616. This amount includes approximately $1.77 million that remained in the Income Flood fund at the time of Gibb’s consent decree and guilty plea. Gibb agreed to turn these funds over to the SEC for disbursement to victims, and the funds will be disbursed as part of the restitution order.
The case was investigated by the SEC and the FBI. The case is being prosecuted by Assistant United States Attorney Matthew Diggs.
Kenneth Francis Lee Sentenced to 30 Months in Federal Prison for Tax EvasionRead the Press Release
KNOXVILLE, Tenn. - On June 27, 2019, Kenneth Francis Lee, 48, of Sevierville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, U.S. District Judge, to serve 36 months in federal prison for tax evasion and willful failure to file tax returns. Upon his release from prison, Lee will be supervised by the U.S. Probation Office for 3 years. Lee was also ordered to pay $372,531 to the Internal Revenue Service (IRS) in restitution.
Lee waived indictment by a federal grand jury and pled guilty to a bill of information on January 31, 2019. Lee admitted that he disguised income from his businesses, TNDSYS, LLC and Tennessee Data Systems, in order to evade the payment of tax debts that he owed to the IRS. Lee further admitted that he willfully failed to file personal income tax returns in 2014, 2015, and 2016.
This investigation was conducted by the Federal Bureau of Investigation (FBI) and the Criminal Investigation Division of the IRS. Assistant U.S. Attorney Bart Slabbekorn represented the United States in court proceedings.
Kanawha County Man Sentenced for Mail FraudRead the Press Release
Sentenced to eighteen months in federal prison for stealing from law firm and real estate company
CHARLESTON, W.Va. – Robert Casdorph was sentenced to eighteen months of incarceration, announced United States Attorney Mike Stuart. Casdorph, 58, of Charleston, West Virginia previously entered a guilty plea to the federal felony offense of Mail Fraud on February 6, 2019. He was also ordered to pay restitution in the amount of $134,755.44, to the law firm and real estate company where he was previously employed, as well as an insurance company that paid back a portion of defendant’s theft. United States Attorney Mike Stuart praised the work of the United States Postal Inspection Service.
“Cases like these literally defy explanation. Casdorph was trusted by his employer to the level that he was even promoted to help manage the company’s money. Instead of returning that trust with honest, hard work, Casdorph devised a terrible scheme to steal for one reason – personal greed,” said United States Attorney Mike Stuart. “Returning trust by biting the hand that feeds you. Makes no sense. We prosecute cases like these to the fullest extent of the law.”
Casdorph previously worked at a Charleston, West Virginia law firm and land company as a runner. In 2011, he was internally promoted to receive accounts and help manage money. Casdorph devised a scheme to defraud the law firm by including personal bills within the bills that the law firm was required to pay. He would present a check for signature that included both the law firm/land company bill and his personal bills totaled together. These included power, water, cell phone, state and local taxes and credit card bills. Casdorph would then place the check in the mail. This scheme went on for four years, lasting through 2016. Casdorph also used firm monies to renovate his home. Finally, Casdorph forged the name of a law firm member on three checks and gave the checks to local vendors. The total financial loss to the law firm and real estate company was at least $134, 755.44. Casdorph is no longer employed by the law firm/land company.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on June 25 was:
Maxwell West, 29, of Billings, on charges of passing/uttering counterfeit obligations or security of the United States. If convicted of the most serious crime, West faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. He was detained pending further proceedings. The case was investigated by the Secret Service. Pacer case reference. 17-141.
Nicholas John Montano, 34, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Montano faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Montano was detained pending further proceedings. The case was investigated by the FBI’s Transnational Organized Crime West unit. Pacer case reference. 18-123.
Appearing on June 27 was:
Byrne Martin Mestas, 62, of Billings, Steven Paul Furlong, 49, of Billings, and Jerry Ray Schuster, 55, of Billings, on charges of conspiracy to possess with intent to distribute meth, and possession with intent to distribute meth. If convicted of the most serious crime, Mestas, Furlong and Schuster face a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. All three co-defendants were detained pending further proceedings. The case was investigated by the FBI task force and the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-88.
Michael Armando Sanchez, 27, of Bakersfield, Ca, on charges of conspiracy to possess with intent to distribute heroin and possession with intent to distribute controlled substances. If convicted of the most serious crime, Sanchez faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Sanchez was detained pending further proceedings. The case was in investigated by the FBI task force and the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-87.
Dawn Marie Davis, also known as Dawn Marie Hinebauch, 33, of Laurel, on charges of conspiracy to possess with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Davis faces a minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Davis was detained pending further proceedings. The case was investigated by the FBI task force and the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-89.
Havalah Anne Ireland, 32, of Billings, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Ireland faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. The case was investigated by the FBI task force and the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-83.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 25 was:
Delwin Paul Calflooking, Sr., 37, of Browning, on charges of assault resulting in serious bodily injury, strangulation and assault resulting in substantial bodily injury to a dating partner. If convicted of the most serious crime, Calflooking faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Calflooking was detained pending further proceedings. The case was investigated by the FBI. Pacer case reference. 19-42.
Appearing on June 26 was:
Nicole Smith, 34, Cut Bank, on charges of possession with intent to distribute. If convicted of the most serious crime, Smith faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Smith was detained pending further proceedings. The case was investigated by the FBI, Glacier County Sheriff’s Office and Blackfeet Tribal law enforcement. Pacer case reference. 19-46.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Health Care Foundation Agrees to Pay $1.1 Million to Resolve Claims It Failed to Perform Background Checks, Fraudulently Billed United States for Community Service GrantsRead the Press Release
CAMDEN, N.J. – A health care foundation and two related companies have agreed to pay $1.1 million to resolve claims arising from their administration of federally funded community service grants, U.S. Attorneys Craig Carpenito, District of New Jersey, and William M. McSwain, Eastern District – Pennsylvania, announced today.
From 2012 until 2017, Our Lady of Lourdes Health Foundation and two related companies administered multiple grants funded through the Corporation for National and Community Service (CNCS)’s Senior Corps program. These included the Foster Grandparent Program, which places seniors in school and community settings to work with youth with exceptional needs, and the Senior Companion Program, which places seniors in community and residential settings to assist seniors who have difficulty with tasks of daily living. These programs provide small hourly stipends to the volunteers performing these services, who undergo training and must clear criminal history checks to ensure their suitability for the work.
From 2014 until 2017, Lourdes either failed to perform these criminal history checks or failed to keep records of doing so. As a result, 46 individuals were permitted to work on an FGP or SCP project without any documentation that they received one or more of the required criminal history checks. When a monitoring visit was scheduled in 2017, Lourdes employees cut-and-pasted other background checks in an attempt to conceal this failure from CNCS officials.
Lourdes’ employees – including two program supervisors – falsely completed time sheets showing program participants working hours that were impossible, because the locations at which they were purportedly working were closed.
When the United States commenced its formal investigation in 2017 and brought these issues to the attention of senior Lourdes management, Lourdes voluntarily relinquished the grants immediately and terminated all of the employees who had participated in the grant administration. Lourdes has actively cooperated with the United States since its senior management was advised of the issues in the grant programs. As part of this cooperation, it performed appropriate criminal history checks on all program participants and determined that all 46 individuals would have been permitted to participate in the programs had those checks been timely performed.
“Just as important as the work these volunteers do is the system that has been set up to ensure that they have been thoroughly vetted,” U.S. Attorney Carpenito said. “Whether they failed to keep accurate records of the results of these criminal background checks – or just failed to do them – the results were the same. Our Lady of Lourdes potentially put their clients’ safety at risk. And billing for no-show employees cannot be tolerated, especially when taxpayer dollars are being spent.”
“Criminal history checks are a critical protection for the vulnerable populations with whom Senior Companions and Foster Grandparents work,” U.S. Attorney McSwain said. “Strict compliance with the requirements for these essential safeguards is the surest way to be sure that predators do not gain access to potential victims. And every federal contractor, including community service organizations, is required to honestly and openly report the work that its employees perform. Every dollar spent on an hour that was not really worked is one that is not available to support other community service efforts.
“This fraud deprived school children and senior citizens of promised services and jeopardized their safety with bogus criminal history checks for the volunteers who served them,” CNCS’s Inspector General Deborah J. Jeffrey said. “We hope that the substantial penalties included in this settlement will deter other grantees from similar misconduct. We commend our partners at the Department of Justice for their outstanding efforts in pursuing fraud against national service programs.”
U.S. Attorneys Carpenito and McSwain praised Lourdes’ work in addressing the issues in these programs: “We appreciate the seriousness with which Lourdes senior management has taken this issue and the prompt, aggressive remedial actions that they took to prevent further harm to CNCS programs and potential harm to vulnerable communities. We hope this settlement will serve as a message to other senior managers to be vigilant in overseeing government-funded programs and to ensure that their employees do not attempt to conceal any non-compliance.”
This investigation was conducted jointly by the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as the CNCS Office of Inspector General. Assistant U.S. Attorneys Jessica O’Neill of the District of New Jersey and Paul W. Kaufman and Veronica Finkelstein of the Eastern District of Pennsylvania handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
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Harrison County woman sentenced for role in methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stormetta Hawkins, of Clarksburg, West Virginia, was sentenced today to 12 months incarceration for her role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Hawkins, age 26, pled guilty to one count of “Distribution of Methamphetamine” in March 2019. Hawkins admitted to selling methamphetamine in July 2018 in Harrison County.Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
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.
U.S. District Judge Thomas S. Kleeh presided.