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28 June 2019
Gang Leader Sentenced to 17 Years in Prison for Violent Crime in Aid of RacketeeringRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LEONARD MATHEWS was sentenced to 17 years in prison for ordering a shooting that left three people injured, and for distributing crack cocaine. MATHEWS was convicted of assault with a dangerous weapon in aid of racketeering, as well as firearms, ammunition, and crack cocaine distribution offenses following a seven-day jury trial in October 2018. The sentence was imposed by U.S. District Judge J. Paul Oetken.
According to allegations in the Indictment and evidence introduced at trial:
MATHEWS is a leader, or “big homie,” in the Gangsta Milla Bloods, or “GMB,” a subset of the United Bloods Nation gang that operates in the Bronx and engages in racketeering activity, including narcotics distribution. On October 20, 2017, MATHEWS ordered a subordinate gang member to shoot someone with whom MATHEWS previously had a physical altercation. The shooting resulted in the injury of three innocent bystanders on Morris Avenue between East Kingsbridge Road and East 196th Street in the Bronx. On the night of the shooting, following a closed-door meeting with MATHEWS and other members of the gang, the same Bloods foot soldier that MATHEWS ordered to do the shooting stabbed and left for dead one of the principal witnesses to the shooting.
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Judge Oetken sentenced MATHEWS, 27, of the Bronx, New York, to 84 months in prison on one count of aiding and abetting or willfully causing assault with a dangerous weapon in aid of racketeering, one count of aiding and abetting or willfully causing the possession of ammunition by a felon, and one count of distribution and possession with intent to distribute crack cocaine. In addition, Judge Oetken sentenced MATHEWS to a mandatory minimum sentence of 10 years in prison for one count of aiding and abetting or willfully causing the discharge of a firearm during and in relation to a crime of violence, to be served consecutively to the 84-month sentence imposed on the other counts.
Mr. Berman praised the investigative efforts of the Bronx Violent Crimes Squad of the New York City Police Department.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorneys Justin V. Rodriguez, Dominic A. Gentile, and Emil J. Bove III are in charge of the prosecution.
Forsyth County Man Sentenced to 13-1/2 Years in Prison for Distributing Child PornographyRead the Press Release
GREENSBORO, N.C. – A Forsyth County man who pleaded guilty to possession of child pornography was sentenced to 13-1/2 years in prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
KIP LANDON KALE, 38, of Lewisville, North Carolina, pleaded guilty on March 4, 2019, to one count of distribution of child pornography. He was sentenced today by United States District Judge N. Carlton Tilley, Jr. to 162 months of imprisonment followed by 25 years of supervised release. He was ordered to pay $5,000.00 in restitution to a victim depicted in a video he distributed.
In 2018, KALE was convicted of Possession of Obscenity with Intent to Disseminate in Davidson County and placed on probation. On January 1, 2019, a Federal Bureau of Investigation (FBI) Online Covert Employee (OCE) began communicating with “rockslyde007,” later identified as KALE, using a mobile messaging application. The OCE saw that rockslyde007 belonged to a group using that application known to be associated with trafficking child pornography, and engaged rockslyde007 in an online chat. User rockslyde007 sent the OCE two child pornography videos involving prepubescent minors and a hyperlink to a cloud storage account containing 56 additional child pornography videos. During the chat with the OCE, which continued until January 4, 2019, rockslyde007 claimed to have sexually exploited two minors under the age of ten.
On January 4, 2019, the FBI’s investigation traced IP addresses used by rockslyde007 to KALE’s residence and his place of employment. FBI agents responded to KALE’s residence the same day and, after confirming his phone matched the one used by rockslyde007, placed him under arrest.
This case was investigated by the Federal Bureau of Investigation, prosecuted by Assistant United States Attorney Eric L. Iverson, and brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.projectsafechildhood.gov.
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Former Wall Street Trader Charged in Manhattan Federal Court for Ponzi SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations, announced today the unsealing of a Complaint in Manhattan federal court charging PAUL A. RINFRET with securities fraud and wire fraud charges. The Complaint alleges that RINFRET engaged in a years-long scheme to defraud investors by selling limited partnership interests in an entity through which RINFRET purported to trade in futures contracts relating to the S&P 500 utilizing a bespoke algorithm he had developed. RINFRET allegedly touted extremely high returns on his trading. In truth and in fact, as alleged, RINFRET simply stole most of the investors’ money in order to fund his lavish lifestyle. RINFRET was arrested this morning in Manhasset, New York, and will be presented this afternoon before Magistrate Judge Robert W. Lehrburger in Manhattan federal court.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Paul Rinfret deceived investors at every step: He lied about his past returns to get them to invest. He lied about having invested all of their money, when he was actually spending much of it on things like jewelry, cars, and a Hamptons vacation home. He lied about how their money was growing. His alleged lies stop today. We will work tirelessly with our law enforcement partners to stop this kind of alleged Ponzi scheme in its tracks and bring defendants like Rinfret to justice.”
Special Agent-in-Charge Melendez said: “As alleged, Paul Rinfret willfully and continually defrauded his investors, the very people he was tasked with serving, in a multimillion-dollar Ponzi scheme that served to enrich only him. The special agents of our El Dorado Task Force will continue to expose such fraud at the national and international levels and assure that such financial predators are brought to justice.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
From at least 2016 through 2019, RINFRET engaged in a scheme to defraud potential and actual investors in an entity called Plandome Partners L.P. for his own personal gain and for the gain of his family members. RINFRET offered potential investors the ability to invest in Plandome Partners through the purchase of limited partnership interests. In soliciting investments, RINFRET falsely represented to potential and actual investors (the “Victims”) that he would use all of their investment funds to trade futures contracts tied to the Standard & Poor’s 500 index using a propriety trading algorithm he had developed, taking for himself a fee equivalent to 25% of the net profits on the trades.
Through his fraudulent scheme, RINFRET obtained more than $19 million in total from approximately six Victims on the false claim that he would utilize their investment funds for trading. RINFRET’s lies and misrepresentations were varied and many. For example, RINFRET claimed that Plandome Partners traded through certain brokerage accounts, one of which simply did not exist, and two of which were not open at a time when RINFRET claimed to be trading in those accounts.
Further, RINFRET used only a small portion of the Victims’ invested funds to engage in actual trading. Instead, RINFRET used most of the Victims’ money to purchase luxury goods and high-end vacation rentals for himself and family members. For example, RINFRET used the Plandome Partners account to spend almost $50,000 on a luxury Hamptons vacation rental, more than $40,000 on jewelry, and tens of thousands of dollars on the event venue where his son held his engagement party.
When RINFRET did actually engage in trading with Victims’ funds, he generated losses. But, to prevent his Victims from seeking a return of their money, and to induce additional investments, RINFRET falsely reported excellent investment performance results to the Victims through false and fraudulent monthly account statements that RINFRET typically emailed to the Victims. RINFRET also sent fabricated brokerage account statements to the Victims.
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RINFRET, 70, of Manhasset, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of securities fraud, which carries a maximum sentence of 20 years in prison. The statutory maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Anyone with information about the crimes charged in the Complaint should call the United States Attorney’s Office at 866-874-8900.
Mr. Berman praised the investigative work of the New York Field Office of Homeland Security Investigations. He also thanked the Newark Field Office of Homeland Security Investigations, under the direction of Special Agent-in-Charge Brian Michael. Mr. Berman also thanked the United States Postal Inspection Service, the United States Internal Revenue Service, the New York City Police Department, and the New York City Sherriff’s Office, which assisted in the investigation. Mr. Berman also thanked the Securities and Exchange Commission, which has brought and filed a civil enforcement action against the defendant.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Robert L. Boone and Amanda Kramer are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former U.S. Navy Member Sentenced for Credit Card Fraud and Identity Theft SchemeRead the Press Release
NEWS RELEASE SUMMARY – June 28, 2019
SAN DIEGO – Fedrick Emery of San Diego was sentenced in federal court today to 45 months in custody and 3 years of supervised release for a fraud scheme he began while an active duty member of the U.S. Navy. According to his plea agreement, Emery and his co-conspirators obtained credit card numbers belonging to real individuals and created counterfeit credit cards and gift cards that Emery then used at over twenty Marine Corps Exchange (“MCX”) locations and Navy Exchange (“NEX”) locations in San Diego and around the country. Between April 2017 and February 2018, Emery’s fraud resulted in a loss of over $75,000 to the MCX and NEX.
At the same time, from approximately December 2017 to May 2018, Emery stole the identities of four individuals and used their personal information to obtain car loans, personal loans, and credit cards. With the stolen information, Emery purchased at least seven luxury automobiles and racked up thousands of dollars in debt that he immediately defaulted on. In all, Emery’s bank fraud resulted in a loss of over $290,000 to nine different banks.
“The financial toll exacted by identity theft can be crippling, and the emotional trauma can be equally devastating,” said United States Attorney Robert S. Brewer. “These were not victimless crimes. This office will vigorously prosecute those who cavalierly steal the identities of honest citizens and compromise the integrity our financial institutions.”
“This plea is the result of successful investigative efforts between NCIS and our partner agencies,” said NCIS Southwest Field Office Special Agent in Charge Garrett Waugh. “Fedrick Emery used fraudulent credit cards to defraud U.S. Navy and U.S. Marine Corps Exchanges, and used the identities of numerous unsuspecting victims to obtain bank loans and purchase vehicles. NCIS appreciates the assistance of our partners in combating fraud that decreases Department of the Navy readiness and wastes taxpayer money.”
According to court documents, during the conspiracy Emery and his co-conspirators referred to what they were doing as “New Money.” Emery flaunted his unearned wealth on Instagram, posting pictures of himself in the luxury automobiles he purchased using the identities of others, and with stacks of cash. Defendant was discharged in absentia from the U.S. Navy under other than honorable conditions in October 2017.
DEFENDANT Case Number 18cr3230-JLS
Fedrick Emery Age: 23 San Diego, CA
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment and $250,000 fine
Aggravated Identity Theft – Title 18 U.S.C., Section 1028A
Penalty – Mandatory two years consecutive imprisonment, and $250,000 fine
AGENCY
Naval Criminal Investigative Service
United States Secret Service
El Cajon Police Department
Former U.S. Government Contractor Pleads Guilty to Falsifying Training CertificatesRead the Press Release
A former U.S. government contractor pleaded guilty today to making counterfeit training certificates for individuals seeking employment on government contracts in Afghanistan.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit and Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division made the announcement.
Antonio Jones, 40, of Yorktown, Virginia, pleaded guilty to one count of making false statements before U.S. District Judge Donald C. Coggins of the District of South Carolina. Sentencing has not yet been scheduled.
As part of his guilty plea, Jones admitted to making and/or causing to have made false Department of Transportation hazardous material (HAZMAT) training certificates to help an individual get a job handling HAZMAT in Afghanistan. A South Carolina-based contractor accepted the fake HAZMAT certificate as proof that Jones’s client had attended a training course prescribed by federal regulation and was otherwise suitable for employment when in fact, the client had not attended the HAZMAT course or any other HAZMAT course, Jones admitted.
Jones was charged in a 13-count indictment on Dec. 12, 2018. The indictment alleges that he and a co-conspirator purported to offer job placement services to individuals seeking employment in Afghanistan and elsewhere. In fact, according to the indictment, they created fake training certificates and false resumes to make their clients appear more qualified than they actually were, and used the false documents to apply for jobs on their clients’ behalf.
This case was investigated by SIGAR, the FBI, DCIS and the U.S. Army CID. The case is being prosecuted by Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section.
Former Superintendent of Rockbridge County Regional Jail Charged in Superseding IndictedRead the Press Release
Lynchburg, VIRGINIA – A federal grand jury sitting in U.S. District Court for the Western District of Virginia in Roanoke returned a superseding indictment yesterday. The superseding indictment still contains the original charges against two former Rockbridge County Regional Jail officials, including federal civil rights violations, falsifying documents to obstruct justice, but also charges the former superintendent of the jail with mail fraud, and conspiracy to commit mail fraud. First Assistant United States Attorney Daniel P. Bubar and David Archey, Special Agent in Charge of the FBI’s Richmond Division made the announcement.
In a superseding indictment returned yesterday, the grand jury charged John Marshal Higgins, 61, of Lexington, Va., with four counts of deprivation of rights under color of law, with two of the four counts alleging that Higgins denied detainees medical care of their serious medical needs, resulting in bodily injury, two counts of conspiracy to commit mail fraud, and 15 counts of mail fraud.
In addition, Gary Andrew Hassler, 59, of Lexington, Va., is charged with two counts of falsifying documents in order to obstruct a federal investigation.
According to the superseding indictment, during his tenure as superintendent of the jail, Higgins, acting under the color of law, failed to protect the rights of inmates at the Rockbridge County Regional Jail from physical abuse, which resulted in serious bodily injury to the inmates.
In addition, the indictment alleges that Higgins, acting under the color of law, failed to protect the rights of inmates at the regional jail by failing to provide inmates with medical treatment, resulting in bodily injury.
The indictment also accuses Hassler, the former head nurse at Rockbridge County Regional Jail, with falsifying medical documents to impede a federal investigation. Specifically, on or about March 5, 2017, the indictment claims that Hassler falsified a jail medical log for an inmate by falsely claiming that on February 28, 2017, the inmate refused his medication. Additionally, Hassler is accused of falsifying a Rockbridge Regional Jail Incident Report dated March 5, 2017 by falsely reporting an inmate refused medical care on March 1, 2017.
The new charges in the superseding the indictment allege that Higgins, while superintendent of the jail, agreed to accept prescription drugs for his own personal use without charge from a pharmaceutical company contracted to provide medication to inmates at the Rockbridge Regional Jail in exchange for the jail maintaining a business relationship with the pharmaceutical company.
Furthermore, the new charges in the superseding indictment allege that Higgins agreed to accept things of value from the family of an inmate at the Rockbridge Regional Jail in exchange for providing preferential treatment to the inmate.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police. The Commonwealth Attorney’s Office for Rockbridge County assisted with the investigation. Assistant United States Attorneys Zachary T. Lee and Matthew Miller will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Steel Valley Authority Financial Manager Sentenced to Prison for EmbezzlementRead the Press Release
PITTSBURGH - A resident of Westmoreland County has been sentenced in federal court to one-and-one-half years’ (18 months’) incarceration and five years of supervised release on her conviction of bank fraud and mail fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Nicolette Gizzi, age 46, of North Huntingdon, PA.
According to information presented to the court, from December 2009 through approximately June 2016, Gizzi, who was employed as the Financial Manager for Steel Valley Authority, embezzled by issuing checks to herself and her credit card company, without authorization, and then forging the required signatures. The checks were drawn on Steel Valley Authority’s business bank account. Steel Valley Authority is funded primarily by federal grants. Additionally, Gizzi, who has a prior federal fraud conviction in South Carolina, defrauded the United States Attorney’s Office for the District of South Carolina as it attempted to collect restitution for her previous victim.
Prior to imposing sentence, Judge Bissoon imposed an obstruction of justice sentencing enhancement based on false statements Gizzi made to the United States Probation Office during the course of a Presentence Interview.
U.S. Attorney Brady said, "Nicolette Guzzi perpetrated her fraud scheme on an economic development organization that is primarily funded through grants from the U.S. Department of Labor. An important part of our work is ensuring that public monies are used for their intended purposes, as we have demonstrated through this prosecution."
"Nicolette Gizzi devised a scheme to embezzle over $82,000 in Workforce Innovation and Opportunity Act funds from her employer at the expense of job seekers who were eligible for those resources. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employment Training Administration to protect the integrity of services designed to strengthen and improve America’s workforce," said Richard Deer, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Department of Labor, Office of Inspector General, the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General for the investigation leading to the successful prosecution of Gizzi.
Former Microsoft Director of Sports Marketing Sentenced to 28 Months in Prison for Wire FraudRead the Press Release
The former Director of Sports Marketing and Alliances at Microsoft was sentenced today in U.S. District Court in Seattle to 28 months in prison, and three years of supervised release for wire fraud for his scheme to profit by stealing from Microsoft. JEFF TRAN, a/k/a TRUNG TRAN, 45 of Seattle, used his position at Microsoft to attempt to steal more than $1.5 million through the creation and submission of fraudulent invoices and the unauthorized use of other Microsoft assets. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez asked TRAN why he stolen the money. TRAN told the court he was still trying to answer why he did it.
According to records filed in the case, TRAN oversaw Microsoft’s promotional relationship with the National Football League (NFL). Tran’s scheme began in January of 2016. Tran, who was responsible for distributing Microsoft’s Super Bowl tickets to Microsoft employees, secretly misappropriated over $40,000 worth of 2016 Super Bowl tickets and sold them to a New York ticket broker. He repeated this activity the following year, this misappropriating tickets worth more than $200,000 for the 2017 Super Bowl.
Tran continued his theft after the 2017 Super Bowl. In March 2017, TRAN persuaded a Microsoft vendor to invoice Microsoft $775,000 for supposed services the vendor had never provided. Tran explained the request by telling the vendor the services had been provided by another company that could not bill Microsoft directly because it had not gone through Microsoft’s accreditation process. At Tran’s direction, Microsoft paid the $775,000 invoice to the vendor, and the vendor forwarded the proceeds to Tran.
In July 2017, Tran attempted to repeat the invoicing scheme, and asked the vendor to prepare a $670,000 invoice for services it had not provided. This time, the vendor became suspicious and reported Tran’s activity to Microsoft. When Microsoft confronted Tran, Tran made false statements to corporate investigators, destroyed evidence, and attempted to persuade witnesses to lie to investigators.
Tran returned $775,000 to Microsoft days after being confronted. Tran returned the remaining stolen funds after entering into a plea agreement with the government.
In asking for a prison sentence, prosecutors wrote to the Court that, “When Tran stole from Microsoft, the company was already paying him hundreds of thousands of dollars annually to do a job most people would envy. Tran’s decision to steal when he already occupied a lucrative and privileged position makes his conduct more volitional, and the crime more reprehensible, than crimes committed by people who steal, deal drugs, or commit other crime to put food on the table.”
TRAN has already paid restitution to Microsoft of $1,036,000. Chief Judge Martinez also imposed a $50,000 fine.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
Former Broward County Residents Charged with Export Control Violations for Illegally Exporting Hundreds of Parts for AR-15 Assault RiflesRead the Press Release
Two former Broward County residents were arrested on June 26, 2019, based on a complaint charging them with conspiracy to violate and attempted violations of the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR) (18 U.S.C. 371 and 22 U.S.C. 2778).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
John James Peterson, 60, and Brunella Zuppone, 67, were charged with conspiracy to violate the AECA and ITAR, and attempts to illegally export to Argentina defense articles, specifically, parts and components for AR-15 assault rifles, which were smuggled across international borders by a transnational weapons trafficking group in Argentina. They each had their initial appearance before U.S. Magistrate Judge Lisette M. Reid.
According to the complaint and other court documents, Peterson and Zuppone illegally exported without a required license from the U.S. Department of State, to the Argentine weapons trafficking organization, thousands of AR-15 assault rifle parts. The investigative efforts of HSI agents in the Miami Field Office along with HSI agents stationed in Argentina, and their proactive cooperation with Argentine law enforcement officials between October and December 2019, led to the execution of search warrants in Florida and Argentina that resulted in the seizure of the equivalent of fifty-two (52) AR-15 assault rifles in Florida and in Argentina: 189 long arms, 156 handguns, one mortar round, one hand grenade, over 30,000 rounds of assorted caliber ammunition, five vehicles, and $110,000 in cash. On June 26, 2019, Argentina’s National Gendarmeria conducted an operation that led to the arrest of 25 subjects and the seizure of thousands of firearms and explosive materials.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI, U.S. Customs and Border Protection and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Ricardo Del Toro and Trial Attorney Evan Turgeon of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Sentenced for Role in International Money Laundering SchemeRead the Press Release
BOSTON – A Florida man was sentenced yesterday in connection with his role in an international money laundering scheme designed to hide the illicit proceeds of business email compromise (BEC) schemes.
Angel De Jesus Lara Nieto, 26, of Fort Lauderdale, Fla., was sentenced by U.S. District Court Judge Richard G. Stearns to 41 months in prison and three years of supervised release. In March 2019, Lara pleaded guilty to one count of conspiracy to engage in money laundering.
According to court documents, Lara and his co-conspirators were members of an organization that engaged in wire fraud, money laundering, and related criminal activity. Lara recruited at least four others to act as money mules for the organization, meaning that each was served as the nominal owner of numerous shell companies and opened bank accounts in that company’s name for the purpose of receiving, withdrawing, and transferring proceeds of criminal activity. Lara himself also engaged in the same conduct—opening shell bank accounts and receiving fraud proceeds—personally laundering over one million dollars in fraudulent funds.
Lara was charged specifically for an incident that occurred in January 2018, where co-conspirators gained access to email accounts belonging to a Massachusetts attorney engaged in real estate closings. Emails sent from Lara’s co-conspirators to recipients in the District of Massachusetts in January and February of 2018 “spoofed” the real estate attorney’s account in a an attempt to cause the purchaser in a real estate transaction to transfer $475,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account of a money mule recruited and controlled by Nieto. Fortunately, that attempted fraud was discovered before the wire transfer took place.
United States Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Amy Harman Burkart of Lelling’s Cybercrime Unit are prosecuting the case.
Felon Pleads Guilty for Possessing a Firearm During Altercation at Galleria MallRead the Press Release
St. Louis, MO – Jermaine R. Clay, 23, of St. Louis, MO, pleaded guilty to one felony count of felon in possession of a firearm stemming from an altercation at the Galleria Mall. Clay appeared in federal court this afternoon before U.S. District Judge Rodney W. Sippel who accepted his plea and set his sentencing date for September 26, 2019.
According to court documents, on June 10, 2018, Clay was at the Galleria Mall when a fight broke out. After Richmond Heights Police Officers responded to the area, Clay was seen running across Brentwood Boulevard toward The Boulevard with a black satchel on his right side. Police pursued him. Clay pulled a black semi-automatic pistol from the satchel and threw it. Clay also threw the satchel. Clay continued running.
The satchel and firearm were both seized by law enforcement. The satchel contained six bags of marijuana, cocaine base, and a cell phone. The firearm was a loaded Smith & Wesson, MP40, with a 40 caliber magazine. The firearm was stolen.
Clay was later apprehended, and a computer check revealed that he was a convicted felon.
Clay faces a maximum sentence of ten years in prison and a fine of not more than a $250,000. He may be subject to a mandatory minimum sentence of 15 years and a maximum sentence greater than described. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Drug Enforcement Administration and the Richmond Heights Police Department investigated this case. Assistant United States Attorney Beth Orwick is handling the case for the U.S. Attorney’s Office.
Federal Inmate Sentenced to Four Months’ Imprisonment for EscapeRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 27, 2019, United States District Court Judge James Munley sentenced Raymond Collazo, age 34, to four months of imprisonment, for escaping from federal custody.
According to United States Attorney David J. Freed, Collazo was a federal inmate at Schuylkill Federal Prison Camp (FCI Schuylkill), where he was serving a 130-month sentence for heroin trafficking and firearms offenses. Collazo absconded on March 15, 2018, but returned to custody shortly thereafter. Judge Munley imposed the four-month sentence to run consecutively to Collazo’s existing sentence.
The case was investigated by the U.S. Marshals Service and by Officers with FCI Schuylkill. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Federal Grand Jury Indicts Montebello Man with Causing Fentanyl Overdose that Resulted in DeathRead the Press Release
LOS ANGELES – A Montebello resident has been charged by a federal grand jury with providing a woman a fatal dose of the synthetic opioid fentanyl.
Edwin Oliva, 28, was named Thursday in a superseding indictment with distribution of fentanyl resulting in death.
Oliva has been in federal custody since his arrest in this case on March 6. He was subsequently charged in an indictment with three felonies: possession with intent to distribute more than four pounds of heroin, possession with intent to distribute fentanyl, and carrying a firearm during and in relation to and possessing a firearm in furtherance of a drug trafficking crime. The three counts in the initial indictment are included in the four-count superseding indictment.
According to an affidavit in support of a criminal complaint filed in the case, Oliva told law enforcement officials that the victim was an acquaintance who arrived at his residence shortly after midnight on February 28. Oliva allegedly gave the victim drugs, which resulted in a fatal overdose. Oliva admitted to law enforcement that fentanyl was the drug he gave the victim, according to court documents. A pathologist employed by the Los Angeles County Medical Examiner-Coroner concluded the victim died as a result of the effects of fentanyl and alcohol.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Oliva previously entered not guilty to the charges in the initial indictment. He will be arraigned early next month on the superseding indictment. United States District Judge André Birotte Jr. previously scheduled a trial date of November 5 for this case.
If convicted of charge of distribution of fentanyl resulting in death, Oliva would face a mandatory minimum sentence of 20 years in federal prison and a statutory maximum sentence of life imprisonment. Additionally, the heroin-related offense carries a mandatory minimum 10-year sentence and a potential sentence of life in prison.
This matter was investigated by the Drug Enforcement Administration and the Montebello Police Department.
This case is being prosecuted by Assistant United States Attorney Gabe Podesta of the General Crimes Section.
Essex County Man Convicted of Wire Fraud and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted for his role in a scheme to steal victims’ personal information, use it to obtain replacement credit cards and then use the cards to purchase high-value items from retailers, U.S. Attorney Craig Carpenito announced today.
Richard Adebayo, 42, of East Orange, New Jersey, was convicted June 27, 2019, on all counts of an indictment charging him with one count of conspiracy to commit wire fraud, 14 counts of wire fraud and two counts of aggravated identity theft following a nine-day trial before Judge Madeline Cox Arleo in Newark federal court. The jury deliberated one day before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Adebayo and Amos Peter Agbajaife, 41, of Newark, were originally charged by complaint on in September 2014 and indicted in January 2019. Adebayo was arrested in 2014 and Agbajaife remains at large.
From March 2014 to April 2014, Adebayo and Agbajaife fraudulently obtained personal identifying information, including dates of birth, Social Security numbers, and passwords, of credit card holders. They used the information to fraudulently obtain replacement credit cards in the victims’ names and then used the cards to purchase high-value items from retail stores.
Adebayo was carrying a laptop computer when he was arrested. A forensic analysis of the computer revealed the stolen identities, including names, Social Security numbers, dates of birth, addresses, bank account information, and credit card information of several victims. Law enforcement confirmed that more than $200,000 in fraudulent charges were incurred on the credit cards of the victims.
Each count of wire fraud and conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gain to the defendant or loss to another, whichever is greater. The counts of aggravated identity theft carries a mandatory term of two years in prison, which must run consecutively to any term of imprisonment imposed for other counts of the indictment. Sentencing is scheduled for Sept. 25, 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to conviction.
The government is represented by Assistant U.S. Attorneys Catherine Murphy and Jamel Semper of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The pending charges against Agbajaife are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey; and Tara Breslow-Testa Esq., Red Bank, New Jersey
Encompass Health Agrees to Pay $48 Million to Resolve False Claims Act Allegations Relating to its Inpatient Rehabilitation FacilitiesRead the Press Release
Encompass Health Corporation (formerly known as HealthSouth Corporation), the nation’s largest operator of inpatient rehabilitation facilities (IRFs), has agreed to pay $48 million to resolve allegations that some of its IRFs provided inaccurate information to Medicare to maintain their status as an IRF and to earn a higher rate of reimbursement, and that some admissions to its IRFs were not medically necessary.
“This settlement demonstrates our commitment to ensuring that those who participate in federal healthcare programs follow the rules,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Medicare and Medicaid providers who seek to profit inappropriately at the expense of taxpayers will be held accountable.”
Medicare and Medicaid use information about patients’ diagnoses to determine whether a facility is properly classified as an IRF, and to determine the level of reimbursement the facility is awarded for specific patients. The government alleged that beginning in 2007, in order to insure compliance with Medicare’s rules regarding classification as an IRF, and to increase Medicare reimbursement, some Encompass IRFs falsely diagnosed patients with what they referred to as “disuse myopathy” when there was no clinical evidence for this diagnosis. Additionally, Encompass IRFs allegedly admitted patients who were not eligible for admission to an IRF because they were too sick or disabled to participate in or benefit from intensive inpatient therapy.
“This important civil settlement concludes a lengthy, comprehensive investigation that brought to light a nationwide scheme that the government contends was intended to defraud our fragile public health programs,” said U.S. Attorney Maria Chapa Lopez. “In doing so, we confirm our commitment to civil health care fraud enforcement as a key component of the mission of our office.”
The settlements resolve allegations raised in three lawsuits filed by Dr. Emese Simon M.D., a former contract physician employed at an Encompass inpatient rehabilitation facility in Sarasota, Florida; Melissa Higgins the former Director of Therapy Operations at Encompass’s inpatient rehabilitation facility in Arlington, Texas; and Dr. Darius Clarke M.D. the former Medical Director at Encompass’s inpatient rehabilitation facility in Richmond, Virginia, and his company, Restorative Health & Wellness P.L.L.C. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Here, the whistleblowers collective share of the settlement will be $12.4 million.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the Unite States Attorney’s Office for the Middle District of Florida, and the U.S. Department of Health and Human Services Office of Inspector General.
The three cases are captioned United States ex rel. Simon, et al. v. HealthSouth Corp., et al.; Case No. 08-CV-236 (M.D. Fla.); United States ex rel. Higgins v. HealthSouth Corp.; Case No. 3:12 CV 2496 (N.D. Tex.); and United States ex rel. Clarke et al. v. HealthSouth Corp.; Case No. 1:12 CV 853 (E.D. Va.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Encompass Health Agrees to Pay $48 Million to Resolve False Claims Act Allegations Relating to Its Inpatient Rehabilitation FacilitiesRead the Press Release
WASHINGTON – Encompass Health Corporation (formerly known as HealthSouth Corporation), the nation’s largest operator of inpatient rehabilitation facilities (IRFs), has agreed to pay $48 million to resolve allegations that some of its IRFs provided inaccurate information to Medicare to maintain their status as an IRF and to earn a higher rate of reimbursement, and that some admissions to its IRFs were not medically necessary.
“This settlement demonstrates our commitment to ensuring that those who participate in federal healthcare programs follow the rules,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Medicare and Medicaid providers who seek to profit inappropriately at the expense of taxpayers will be held accountable.”
Medicare and Medicaid use information about patients’ diagnoses to determine whether a facility is properly classified as an IRF, and to determine the level of reimbursement the facility is awarded for specific patients. The government alleged that beginning in 2007, in order to insure compliance with Medicare’s rules regarding classification as an IRF, and to increase Medicare reimbursement, some Encompass IRFs falsely diagnosed patients with what they referred to as “disuse myopathy” when there was no clinical evidence for this diagnosis. Additionally, Encompass IRFs allegedly admitted patients who were not eligible for admission to an IRF because they were too sick or disabled to participate in or benefit from intensive inpatient therapy.
“This important civil settlement concludes a lengthy, comprehensive investigation that brought to light a nationwide scheme that the government contends was intended to defraud our fragile public health programs,” said U.S. Attorney Maria Chapa Lopez. “In doing so, we confirm our commitment to civil health care fraud enforcement as a key component of the mission of our office.”
The settlements resolve allegations raised in three lawsuits filed by Dr. Emese Simon M.D., a former contract physician employed at an Encompass inpatient rehabilitation facility in Sarasota, Florida; Melissa Higgins the former Director of Therapy Operations at Encompass’s inpatient rehabilitation facility in Arlington, Texas; and Dr. Darius Clarke M.D. the former Medical Director at Encompass’s inpatient rehabilitation facility in Richmond, Virginia, and his company, Restorative Health & Wellness P.L.L.C. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Here, the whistleblowers collective share of the settlement will be $12.4 million.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the Unite States Attorney’s Office for the Middle District of Florida, and the U.S. Department of Health and Human Services Office of Inspector General. In the Middle District of Florida, the case was handled by Assistant United States Attorney Sean O'Keefe.
The three cases are captioned United States ex rel. Simon, et al. v. HealthSouth Corp., et al.; Case No. 08-CV-236 (M.D. Fla.); United States ex rel. Higgins v. HealthSouth Corp.; Case No. 3:12 CV 2496 (N.D. Tex.); and United States ex rel. Clarke et al. v. HealthSouth Corp.; Case No. 1:12 CV 853 (E.D. Va.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Effingham Woman Sentenced to 6 1/2 Years in Federal Prison on Methamphetamine Related ChargesRead the Press Release
Melissa J. Reynolds, 28, of Effingham, Illinois, has been sentenced to 78 months in federal prison on methamphetamine-related charges, Steven D. Weinhoeft, U.S. Attorney for the Southern District of Illinois, announced today.
Reynolds previously pleaded guilty to four counts in a federal indictment. Count 1 charged that from January to October 2018, Reynolds conspired with others to distribute 5 grams or more of actual methamphetamine. Counts 2-4 charged that Reynolds distributed methamphetamine on three specified dates in June and July 2018. All of Reynolds’ crimes occurred in Effingham County.
The sentence imposed on Reynolds includes a four-year term of supervised release.
The investigation in this case was conducted by the Southeastern Illinois Drug Task Force.
Denver man sentenced to more than 20 years in prison for meth trafficking, firearms crimesRead the Press Release
BILLINGS—Nathan Thomas Trujillo, a Denver resident who admitted to trafficking methamphetamine in the Billings community, was sentenced on June 27 to 20 years and eight months in prison and five years of supervised release, said U.S. Attorney Kurt Alme.
Trujillo pleaded guilty in December to conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Susan P. Watters presided.
In August 2018, drug task force agents began investigating a Billings area dealer, later identified as Trujillo, but who was living under a stolen identity to avoid arrest on an outstanding warrant. Agents made multiple buys from a co-conspirator and learned that Trujillo traveled to Denver to obtain pound quantities for re-distribution in the Billings area.
Agents executed search warrants on Trujillo’s vehicle and apartment. From the vehicle, agents seized about 429 grams, for about 15 ounces, of meth from his vehicle, a 9mm pistol, a digital scale and plastic baggies. The 429 grams of meth is the equivalent of about 3,432 individual doses. Agents also found additional firearms, illegal drugs and drug paraphernalia. From Trujillo’s apartment, agents seized another firearm and more drug paraphernalia.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and the FBI task force.
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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Defense Contractor Agrees to Pay $4,200,000 to Settle Allegations of Submitting False Claims to the United States Air ForceRead the Press Release
Oklahoma City – PAE Applied Technologies, LLC, has agreed to pay $4,200,000 to settle civil claims stemming from allegations that it submitted false claims to the United States Air Force, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
PAE is a Delaware limited liability company that provided services to the Air Force under an Aircraft Maintenance, Airfield Management, Aircrew Life Support and Base Operating Support contract. The services were provided at the Vance Air Force Base, which is located in Enid, Oklahoma. The United States alleges that for government fiscal years 2009-2014, PAE knowingly submitted false claims to the Air Force for employee wages under the Contract. More specifically, PAE submitted false claims for wage rates above the applicable wage caps. The case also included allegations that PAE would not have received award fees under the Contract if PAE had disclosed billing the United States for wages that exceeded the wage caps.
This settlement resolves the allegations filed in a lawsuit by a whistleblower who formerly worked for PAE. The lawsuit was filed in federal district court in Oklahoma City under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the government to intervene in the lawsuit. In this case, the government intervened in the action and resolved all the allegations by this settlement.
In reaching this settlement, PAE did not admit its liability, and the United States did not concede that its claims lack merit. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty of litigating the case.
This case was investigated by the Defense Criminal Investigative Service, Air Force Office of Special Investigations, and Defense Contract Audit Agency. It was prosecuted by Assistant U.S. Attorneys Ronald R. Gallegos and Scott Maule.
Defendant Sentenced for Lying to the FBI and Obstructing Justice as Part of a Scheme to Extort a Federal Bankruptcy JudgeRead the Press Release
NEWS RELEASE SUMMARY – June 27, 2019
SAN DIEGO – Michael Enriquez was sentenced in federal court today for lying to the Federal Bureau of Investigation by falsely implicating a federal bankruptcy judge in prostitution, and further obstructing justice by fabricating emails and an electronic telephone contact to corroborate his lies.
U.S. District Judge Cynthia Bashant sentenced Enriquez to 27 months in prison, payment of a $50,000 fine and a $200 special assessment, and three years of supervised release, during which he must perform 250 hours of community service. In sentencing Enriquez, Judge Bashant noted that his conduct “was a lot more sophisticated than someone who just told a lie” and was the type of obstruction scheme that “threatens the whole judicial system.”
“Attempts to extort a federal judge with malicious lies are a direct attack on the Rule of Law, and today’s sentence reflects that such depraved criminal activity will be punished harshly,” commented Robert S. Brewer, United States Attorney for the Southern District of California.
Paul D. Delacourt, Assistant Director in Charge of the FBI’s Los Angeles Field Office, said, "Mr. Enriquez provided the FBI with false information about a sitting federal bankruptcy judge but, following a thorough investigation, the FBI determined the judge had not engaged in the alleged activity and that Mr. Enriquez had knowingly lied to the FBI on numerous occasions and obstructed justice. The FBI will not tolerate those who attempt to undermine our judicial process for their own personal benefit. In this case, the FBI's fact finding resulted in the exoneration of a wrongly accused judge and the prosecution of Mr. Enriquez."
As detailed in the public record, Enriquez concocted these lies in an effort to assist DB, a litigant/debtor in an involuntary bankruptcy proceeding involving corporate entities connected to filmmaking. Apparently believing that the presiding bankruptcy judge favored his creditors, on multiple occasions, DB expressed to Enriquez a desire to disqualify the bankruptcy judge from the case. To help DB turn the tide of the bankruptcy proceeding, Enriquez falsely told DB that he had personal knowledge that the bankruptcy judge had engaged in prostitution. To corroborate this account, Enriquez created fake email records of the bankruptcy judge requesting escort services from an online escort service. Defendant also input the judge’s name and chamber’s telephone number into his phone contacts in an effort to corroborate that the judge was, in fact, a client of such services. After creating this bogus paper trail, Enriquez forwarded the emails to DB, knowing that the false accusations and fake emails would likely be used to extort the bankruptcy judge or otherwise influence the bankruptcy proceedings.
In or about early 2013, the relationship between Enriquez and DB soured. In an effort to seize some advantage from his duplicity, Enriquez identified DB’s creditors in the bankruptcy proceeding and arranged to meet two creditors, DM and PP, in New York City in February 2013. Unbeknownst to DB, at this meeting, Enriquez told DM and PP that DB had obtained information that the bankruptcy judge had frequented prostitutes, and that DB intended to use that information to influence the outcome of the bankruptcy proceedings. Enriquez did not tell DM and PP that he was the source of the information, that the information was bogus, or that he had fabricated the corroborating documents.
When PP suggested that he could help DM and PP by relaying his allegations to the FBI, Enriquez negotiated a $100,000 payment, which ultimately never materialized. Thereafter, on or about April 25, 2013, May 17, 2013, and on multiple occasions until in or about July 2016, defendant knowingly and willfully made material false and fraudulent statements to the FBI falsely implicating the bankruptcy judge in prostitution, and provided the FBI with emails and an electronic telephone contact that he had fabricated to corroborate his story.
A multi-year investigation by the FBI ensued, focusing initially on the allegations of bribery, extortion, and the conduct of the bankruptcy judge. Eventually, through painstaking effort, agents unearthed the truth: For no discernible reason at all, through malicious lies and fabricated documents, Enriquez attacked the reputation of a respected federal bankruptcy judge. U.S. Attorney Brewer commended the FBI agents for rigorously unraveling defendant’s lies and deception, and ultimately vindicating our judicial system.
DEFENDANT Case Number 18CR3575-BAS
Michael Enriquez Age: 55 San Antonio, TX
SUMMARY OF CHARGE
False Statements -- Title 18, U.S.C., Sec. 1001
Obstruction of Justice -- Title 18, U.S.C., Sec. 1519
AGENCY
Federal Bureau of Investigation
Cumberland County Man Sentenced to Fifteen Months’ Imprisonment for Wire FraudRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Suhail Farooq, age 26, of Camp Hill, Pennsylvania, was sentenced on June 27, 2019, by Chief U.S. District Court Judge Christopher C. Conner to 15 months’ imprisonment to be followed by two years of supervised release for wire fraud.
According to United States Attorney David J. Freed, Farooq previously admitted to perpetrating a computer-based fraud scheme that targeted victims across the United States. As part of the scheme, Farooq and others pretended to work for technology companies and contacted victims through computer pop-ups and telephone calls. Once contact was made, Farooq and others induced victims to authorize payments under false pretenses and utilized remote desktop access applications to initiate unauthorized financial transactions from the victims’ financial accounts.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Carlo D. Marchioli and Chelsea Schinnour prosecuted the case.
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Commerce Bank Robbery Defendants Sentenced to Substantial Prison TermsRead the Press Release
TUCSON, Ariz. – On June 25, 2019, Jovante Lamar Fryson II, 20, of Gardena, California and Amauje Jason Ferguson, 23, of Inglewood, California were sentenced by U.S. District Judge James A. Soto to serve nine years and seven years in prison, respectively. A third co-defendant, Tysheere Traymar Ford, 25, of Los Angeles, California was previously sentenced to twelve years for his participation in the same offense. All co-defendants previously pleaded guilty to bank robbery, and Fryson and Ferguson also pleaded guilty to conspiracy to commit bank robbery. All three defendants’ terms of imprisonment will be followed by three years of supervised release.
On June 29, 2018, after traveling to Tucson from California, Fryson, Ferguson and Ford planned and executed a robbery of the Commerce Bank of Arizona located on East Broadway Road. All three defendants entered the bank wearing ski masks and gloves, and ordered employees to the floor before physically forcing them to open a teller drawer and the bank vault. Multiple bank employees were injured during the robbery. After robbing the bank, the co-defendants fled in a stolen vehicle, leading a Tucson Police Department officer on a high-speed chase before crashing the getaway vehicle into an SUV. The co-defendants then fled on foot and hid in a nearby neighborhood, where they were ultimately arrested by Tucson Police Department.
The investigation in this case was jointly conducted by the Tucson Police Department and Federal Bureau of Investigation, Tucson. The prosecution was handled by Christopher J. Curran and Erica L. Seger, Assistant U.S. Attorneys, District of Arizona, Tucson.
Columbia Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Wilbert Green, Jr., age 30, of Columbia, was sentenced to over 4 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 at approximately 8:45 p.m. on April 13, 2018, officers of the Columbia Police Department and the Midlands Gang Unit were patrolling the Lorick Circle area of Columbia with special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) after receiving several firearm-related reports the previous month. As they drove through an apartment complex on Lorick Circle, officers/agents observed what appeared to be a black pistol magazine protruding from Green’s right rear pants pocket. Officers/agents exited their vehicles and made contact with Green, who was also holding an open container of beer, in violation of the open container law. Green failed to comply with directives of officers/agents to quit reaching behind to his back pocket and to turn around put his hands on a nearby car. Green advised officers/agents, “I know the law….I just got out of prison.” Officers secured Green and located a loaded Hi-Point 9mm with an extended high-capacity magazine in Green’s rear right pants pocket. After the arrest, officers/agents learned that there were outstanding warrants for Green from Clarendon County for attempted murder and possession of a weapon during a violent crime.
A ballistics analysis through National Integrated Ballistic Information Network (NIBIN) revealed that the Hi-Point 9mm handgun was linked to shell casings recovered at an unsolved July 2017 shooting off Garners Ferry Road. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.
Federal law prohibits Green from possessing firearms and ammunition based upon his prior state convictions from North and South Carolina. Green’s prior state court convictions include: assault with a deadly weapon (knife) to inflict serious injury (NC 2009); criminal domestic violence wherein he threatened a female with a firearm and slapped her (SC 2013); and assault and battery 1st degree wherein he shot a man during a robbery (SC 2015).
Senior United States District Judge Cameron McGowan Currie sentenced Green to 51 months in federal prison, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the ATF and the Columbia 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 Stacey D. Haynes of the Columbia office prosecuted the case.
For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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California Man Charged and Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – A California man will plead guilty to charges in connection with using bribery and other forms of fraud to facilitate his son’s admission to the University of Southern California (USC).
Jeffrey Bizzack, 59, of Solana Beach, Calif., will plead guilty to an Information charging him with one count of conspiracy to commit mail fraud and honest services mail fraud. A plea hearing has not yet been scheduled by the Court. According to the terms of the plea agreement, the government will recommend a sentence of nine months in prison, one year of supervised release, a fine of $75,000, and restitution.
According to the Information, Bizzack agreed with William “Rick” Singer to pay $250,000 to facilitate the admission of Bizzack’s son to USC as a purported volleyball recruit. On July 16, 2017, Singer emailed Bizzack asking for his son’s biographical information for the purpose of creating a falsified athletic profile. On July 26, 2017, Bizzack’s son sent Singer his academic transcripts, which Singer then forwarded to Laura Janke, a former USC assistant soccer coach. Janke created a fabricated volleyball profile for Bizzack’s son and sent it to Singer, who forwarded it to the senior associate athletic director at USC. It is alleged that, in October 2017, the USC senior associate athletic director presented Bizzack’s son to the USC subcommittee for athletic admissions as a purported volleyball recruit. In November 2017, Bizzack’s son received conditional admission to USC as a student-athlete, and in March 2018, Bizzack’s son received a formal acceptance letter from USC. Beginning in December 2017, Bizzack sent a $50,000 check to the USC “Galen Center,” and made multiple payments totaling $200,000 to Singer’s purported non-profit corporation.
According to the Information, in July 2018, Singer began making monthly payments of $20,000 to the senior associate athletic director at USC in exchange for her assistance with facilitating the admission of Bizzack’s son and others.
Janke previously pleaded guilty and is cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brownsville, PA Man Indicted on Charges Relating to the Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH – A resident of Fayette County has been indicted by a federal grand jury in Pittsburgh on charges of production of material depicting the sexual exploitation of a minor and possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The eight-count Indictment, returned on June 26, named Sean Houston, age 47, of Brownsville, Pennsylvania, as the sole defendant.
According to indictment, on or about December 23, 2015; May 20, 2016; October 2016 to October 2018; July 22, 2017 to October 2018; May 2018 to October 2018; October 2016 to October 2018; and October 5, 2018, Houston produced and attempted to produce visual depictions, images and a video of the sexual exploitation of a minor. The Indictment further alleges that on or about October 29, 2018, Houston knowingly possessed visual depictions of the sexual exploitation of minors.
The law provides for a maximum total sentence of life imprisonment for the production and attempted production of child pornography, a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations, the Centerville Police Department, the North Strabane Police Department and the Washington County District Attorney’s Office conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brooklyn, New York, Man Admits Distributing Synthetic Drugs, Fentanyl, and Oxycodone over the InternetRead the Press Release
CAMDEN, N.J. – A New York man today admitted selling dangerous designer drugs, fentanyl, and oxycodone over the internet, U.S. Attorney Craig Carpenito announced.
Shadab Chowdhury, 26, of Brooklyn, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with eight counts of distributing and possessing with intent to distribute synthetic cannabinoids; one count of distributing and possessing with intent to distribute fentanyl; and one count of distributing and possessing with intent to distribute oxycodone. Chowdhury also acknowledged, as relevant conduct, his distribution of cyclopropyl fentanyl.
According to documents filed in this case and statements made in court:
Chowdhury admitted that from January 2016 to July 2018, he used the internet to distribute synthetic cannabinoids, fentanyl, cyclropropyl fentanyl, and oxycodone. He solicited and serviced his customers through three websites, two email accounts, and text messages. His customers included undercover law enforcement officers located in New Jersey, as well as various individuals in New York, Kansas, North Carolina, South Dakota, West Virginia, Georgia, Ohio, Alaska, California, and Virginia.
Chowdhury arranged and coordinated shipments of synthetic cannabinoids, which he termed “fire” or “spice,” as well as shipments of fentanyl and oxycodone. He also prepared the drugs to make them potent and negotiated pricing on the drugs. To avoid law enforcement, Chowdhury deliberately misbranded the synthetic cannabinoids. He also referred to the oxycodone and fentanyl in code. He received payments for his drug shipments via credit card payments, Western Union, direct bank deposit, and cryptocurrency.
Each of the counts to which Chowdhury pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. As part of Chowdhury’s plea agreement, he will forfeit a large number of personal items that were seized from his home, including several computers, computer parts and other electronics that were involved in his crimes. Sentencing is scheduled for Oct. 4, 2019.
U.S. Attorney Craig Carpenito credited special agents with the Drug Enforcement Administration’s Tactical Diversion Squad in the Camden Resident Office, under the direction of Special Agent in Charge Susan Gibson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Mitchell C. Elman Esq., Ozone Park, New York
Bothell Woman Sentenced to 3 Years in Prison for Embezzling more than $400,000 from Family-Owned Property Management FirmRead the Press Release
A 52-year-old Bothell, Washington woman was sentenced today in U.S. District Court in Seattle to three years in prison and five years of supervised release for bank fraud and aggravated identity theft for a five-year scheme in which she cashed 306 fraudulent checks, totaling $400,526 and drawn on the bank accounts of her employer. ERIN K. McCAULEY, also known as ERIN K. CHARLES, was a trusted part-time employee of a Lynnwood, Washington property management firm. The firm managed a number of commercial properties and a contracting business. It was owned by a couple who brought McCAULEY on in 2004 to assist with the book-keeping. As early as 2012, McCAULEY began writing large checks to herself and forging the owners signatures. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said “she stole a significant amount of money from a small company and it greatly impacted that business.”
According to records filed in the case, McCAULEY had become a trusted employee of the couple as they entered their 60’s and 70’s. They gave McCAULEY gifts, assisted her with car and house payments and made sure she got an annual bonus. In 2017 for example, the couple loaned McCAULEY $8,000 for home repairs. It appears now they were repaid with some of the $400,000 that was stolen from their own accounts.
When the couple became aware of the theft, they worked with the FBI to see if McCAULEY would admit the embezzlement. She vastly underestimated the amount of money she had embezzled, and acknowledged much of the money had gone to feed her gambling addiction.
In asking for a four-year prison sentence prosecutors wrote to the court McCAULEY “wanted money that she did not have in order to live a lifestyle should could not afford. To do so, she took advantage of her position as the trusted office manager and bookkeeper for the (couple) and used their business accounts as her personal “piggy bank” to fund the lifestyle she wanted to live.”
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Stephen Hobbs.
Billings meth trafficker sentenced to four years in prisonRead the Press Release
BILLINGS—A woman who admitted selling a pound of methamphetamine for $4,500 as part of series of sales was sentenced on Wednesday to four years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Ashley Dawn Chesmore, 30, of Billings, pleaded guilty in February to conspiracy to possess with intent to distribute meth and to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
An investigation beginning in July 2018 by the Eastern Montana High Intensity Drug Trafficking Area Task Force and Drug Enforcement Administration found that Chesmore was distributing drugs, court documents said. A confidential informant and an undercover agent made a total of seven buys from Chesmore, with the last sale involving a pound of meth Chesmore sold for $4,500. A pound of meth is the equivalent of about 3,624 doses.
Investigators learned Chesmore was receiving meth in the mail from a co-conspirator and that one of the parcels came from San Ysidro, CA. All of the meth tested by the DEA was substantially pure.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Drug Enforcement Administration, FBI, Eastern Montana High Intensity Drug Trafficking Area Task Force and the Billings Police Department.
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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Biddeford Man Sentenced to Nine Years for Conspiracy to Commit Sex Trafficking of a MinorRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Isaac Suero, 23, of Biddeford, Maine, was sentenced yesterday in U.S. District Court by Judge Nancy Torresen to nine years in prison and five years of supervised release for conspiracy to commit sex trafficking of a minor. Suero also was ordered to pay $750 in restitution to the victim of the offense. Suero pleaded guilty on January 16, 2019.
Court records reveal that on April 19, 2017, Suero and the victim, who was 15 years old at the time, connected online. Thereafter, Suero and three others picked the victim up at a Hannaford store and drove her to a private residence in the Bangor area. While there, there was a discussion about prostitution, and it was suggested that the victim, who had no money, would engage in prostitution with Suero’s assistance and give him a portion of the money. Suero paid for a hotel room in Bangor for the victim and another adult female, and between April 20 and 22, the 15-year-old victim engaged in multiple commercial sex acts, giving a portion of the proceeds to Suero. On April 22, Suero paid an associate to drive him and the victim from Bangor to a motel in Scarborough, Maine, where Suero introduced the victim to his mother, Lourdes Suero. Isaac Suero left the victim at the motel with his mother, and the victim continued to engage in commercial sex acts in the Scarborough area. Lourdes Suero pleaded guilty in March to using a facility of interstate commerce with the intent to promote prostitution and is scheduled to be sentenced in August.
The District of Maine is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the FBI; the Portland, South Portland and Lewiston Police Departments; the York County Sheriff’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Drug Enforcement Administration. The Androscoggin County Sheriff’s Office and District Attorney’s Office also provided assistance.
Bay Area Man Sentenced to Ten Years in Prison for Possessing Child PornographyRead the Press Release
SAN FRANCISCO – Devon Davey Hudson, a/k/a Davey Wayne Hudson, was sentenced to 120 months in prison for possessing child pornography, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable Jon S. Tigar, U.S. District Judge.
Hudson, 56, of Alameda County pleaded guilty to the charge on February 15, 2019. In pleading guilty, Hudson admitted he possessed images of child pornography. According to court filings, Mr. Hudson possessed more than 100,000 images and videos of child pornography, some depicting physical acts of sexual abuse of children.
A federal grand jury indicted Hudson on May 31, 2018, charging him with one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Hudson pleaded guilty to the count.
In addition to the prison term, Judge Tigar also sentenced the defendant to a ten-year period of supervised release and ordered him to pay restitution to one victim in the amount of $1,000. The defendant was immediately remanded into custody.
Assistant United States Attorney Jose Olivera is prosecuting the case with the assistance of Jessica Rodriguez. The prosecution is the result of an investigation by FBI in partnership with the Oakland Police Department.
Bandon Educational Assistant and Coach Sentenced to 30 Years in Federal Prison for Sexually Abusing an InfantRead the Press Release
MEDFORD, Ore.—U.S. Attorney Billy J. Williams announced today that former Bandon School District educational assistant and coach Sean Jeffrey Haga, 33, was sentenced to 360 months in federal prison and a life term of supervised release for sexually abusing a 2-month-old infant and distributing photos of the abuse on the internet.
“Mere hours passed between FBI agents first discovering the photographic evidence of Sean Haga’s abuse online and their rescue of the infant victim assisted by local law enforcement. Unfortunately, Haga’s victimization of this child did not stop with his arrest. These images will continue to be circulated on the internet forever, a heartbreaking fact this child will one day come to understand,” said U.S. Attorney Williams. “We believe the sentence imposed will prevent Haga from abusing other children and hope that it brings some measure of solace and comfort to the victim’s family and community.”
“The sexual abuse of this victim—an infant—is reprehensible. Sean Haga's further exploitation of this baby as he shared that abuse with other pedophiles is unconscionable. I want to thank the FBI agents and local partners at the Bandon Police Department and Coos County Sheriff's Office who worked around the clock to rescue this child and arrest Haga,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
On June 17, 2016, Haga shared photos depicting the sexual abuse of children online with an undercover FBI task force officer using Kik Messenger, an instant messaging mobile application. Haga told the undercover officer that he wanted to travel to have sex with the officer’s minor daughter and that he possessed photos of himself sexually abusing a minor victim. Haga sent multiple pictures depicting this abuse to the undercover officer.
The FBI worked through the night to identify the person associated with the Kik account and the location from which it was being used. Based on the information collected, FBI agents from the Medford Resident Agency were able to obtain search and arrests warrants for Haga who was arrested on June 18, 2016 without incident.
On April 25, 2018, Haga pleaded guilty to one count of sexual exploitation of a minor.
This case was investigated by the FBI and prosecuted by Judi Harper and Amy Potter, Assistant U.S. Attorneys for the District of Oregon.
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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
Attorney General William P. Barr Announces Emergency Funding to Address Public Safety Crisis in Rural AlaskaRead the Press Release
Justice Department Authorizes More than $10 Million in Immediate Funding to Support Police in Alaska Native Villages and Additional Resources to Support Child Advocacy Centers in Rural Hubs, Expanding Prosecution Resources and Project Safe Neighborhoods Crime Reduction Measures
Attorney General William P. Barr declared a law enforcement emergency in rural Alaska under the Emergency Federal Law Enforcement Assistance Program today, making $6 million immediately available to the state of Alaska for critical law enforcement needs of Alaska Native villages. Recognizing that Alaska has the highest per capita crime rate in the country and the unique circumstances of Alaska’s geographical and jurisdictional landscape, the Attorney General authorized additional funding and several long-term measures to support village public safety and victim services.
The $6 million in emergency funding from the Office of Justice Program’s Bureau of Justice Assistance (OJP-BJA) will go toward hiring, equipping, and training Village Public Safety Officers (VPSOs), Village Police Officers (VPOs), and Tribal Police Officers (TPOs) working in rural Alaska, as well as for mobile detention facilities.
In addition, the Department of Justice Office on Community Oriented Policing Services (COPS) will award $4.5 million in funding for 20 officer positions, along with equipment and training, to Alaska Native grantees by the end of July.
The Office for Victims of Crime (OVC) and the Office on Juvenile Justice and Delinquency Prevention (OJJDP) will support Children’s Advocacy Centers (CAC) in rural Alaska’s major hubs, which provide wrap-around services, forensic interviews, and medical exams for child victims. OVC and OJJDP have identified up to $14 million in available funding for CACs in Alaska and the lower 48 states.
“In May, when I visited Alaska, I witnessed firsthand the complex, unique, and dire law enforcement challenges the State of Alaska and its remote Alaska Native communities are facing,” said Attorney General Barr. “With this emergency declaration, I am directing resources where they are needed most and needed immediately, to support the local law enforcement response in Alaska Native communities, whose people are dealing with extremely high rates of violence. Today, I am also directing each component and law enforcement agency of the Justice Department to submit plans within the next 30 days to further support federal, state, and tribal public safety efforts in rural Alaska. Lives depend on it, and we are committed to seeing a change in this unacceptable, daily reality for Alaska Native people.”
The Attorney General also announced a Rural Alaska Violent Crime Reduction Working Group, led by U.S. Attorney Bryan Schroder. The Working Group will look for ways to build the capacity of federal, state, and tribal law enforcement in rural Alaska and its work will have a particular emphasis on crimes of domestic violence and crimes against children. BJA is also making an additional $162,000 available to the U.S. Attorney’s Office to establish an additional Project Safe Neighborhoods (PSN) target site encompassing rural Alaska.
Alaska is home to some of the most remote communities in all of America. This geographic isolation contributes to law enforcement problems not seen anywhere else in our Nation. According to one estimate, one-third of Alaskan villages have no local law enforcement personnel at all. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. The lack of law enforcement resources results in a high violent crime rate, especially in Alaska Native communities.
Additional near-term measures by Department of Justice components include:
- The Office on Violence Against Women (OVW) will issue an award for sexual assault training and technical assistance in Alaska, including training community health aides in Alaska Native villages to perform sexual assault forensic exams and training for victim advocates. The project will include community sexual assault training, which will address coordinated responses to sexual assault across the community. This award will also train village-based victim advocates to accompany victims throughout the process, including prosecution, as appropriate.
- OVC is extending their application deadline for the Crime Victim Fund tribal set-aside solicitation (part of the $167 million available to tribes for victim services in FY 2019) to Aug. 16, 2019. This money may be used to fund direct services and advocacy, domestic violence shelters, rape crisis services, children advocacy programs, and elder abuse programs.
- BJA is extending their application deadline to July 15, 2019, for programs that target mental health/drug addiction, reentry initiatives, and community crime reduction.
- The COPS Office has two grant programs that it will reopen to afford Alaska the opportunity to apply:
- The Anti-Methamphetamine Program (CAMP) is open to state law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures.
- The COPS Anti-Heroin Task Force (AHTF) Program is open to state law enforcement agencies with multi-jurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions.
As the Department develops a comprehensive response to public safety issues in Alaska, Attorney General Barr expressed his commitment to working closely with American Indian and Alaska Native leadership as well as Congressional and state representatives to ensure Departmental solutions are practical and effective. The Attorney General will also travel to an Indian country location in the lower 48 states in the coming months, recognizing the significant public safety challenges that persist for many Native American communities.
“I want to be sure that the support this Department offers to Alaska Native communities will support solutions identified by the communities themselves,” said Attorney General Barr. “The only way for us to provide effective support is to work in partnership with others. This is true in Alaska and throughout Indian country.”
In a memo to all Justice Department component leaders, the Attorney General directed every component and law enforcement agency to submit a plan in the next 30 days to further support these efforts in Alaska, focusing in particular on the following goals:
- Increasing the federal, state, local, and tribal law enforcement presence in Alaska and ways to provide more prosecutorial resources for the criminal cases that will result from increased law enforcement presence;
- Reducing violent crime, especially gun violence;
- Decreasing sexual assaults of women and children;
- Providing better immediate and long-term services to victims of crime;
- Cutting off supplies of methamphetamines, opioids, and other illegal drugs;
- Addressing the problem of alcohol abuse and its role in violent crime and crimes against children;
- Increasing addiction prevention and treatment services to those struggling with addictions to drugs and alcohol;
- Providing adequate detention facilities in remote locations; and,
- Incorporating technology into law enforcement efforts to improve response times and decrease travel costs for victims and witnesses.
Atlantic Beach Man Pleads Guilty to Failing to Register as A Convicted Sex OffenderRead the Press Release
Jacksonville, Florida – Jimmie Dwight Whitfield (43, Atlantic Beach) has pleaded guilty to failing to register as a sex offender after absconding from Georgia and establishing residence in Florida. He faces up to 10 years in federal prison and a $250,000 fine. His sentencing hearing is scheduled for October 1, 2019.
According to court documents, in 1995, Whitfield was convicted of committing a sex offense against a child in Jacksonville. In 2006, he was convicted of two sex offenses in Valdosta, Georgia. Following his release from prison, Whitfield resided at a motel in Valdosta while serving a term of supervised probation. In March 2018, he cut off his ankle monitor, fled to Florida, and established a residence in Atlantic Beach. Whitfield failed to register as a sex offender in Florida as required by federal and state law. On October 25, 2018, he was arrested at his home in Atlantic Beach for violating his probation. During an interview, Whitfield admitted that he had he cut off his ankle monitor and that he knew he was not allowed to leave Georgia without permission.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the United States Marshals Service, the Lowndes County (Georgia) Sheriff’s Office, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Armed Drug Dealer Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – A Temple Hills man was sentenced today to 15 years in prison for his role in a cocaine distribution conspiracy and possession of a firearm in furtherance of a drug trafficking crime.
“Armed drug and opioid dealers represent a toxic and deadly double threat,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “They might be targeting the people of the Eastern District of Virginia, but we are targeting them and we will hold those apprehended and prosecuted to the fullest extent of the law.”
According to court documents, Roger Vincent, 42, conspired with others to distribute cocaine and heroin in the Washington D.C. metropolitan area. While residing in Maryland, Vincent maintained a “stash” location in Washington, D.C., where law enforcement recovered cocaine, heroin, drug paraphernalia and a handgun that had been modified to fire fully automatically. Months later, Vincent negotiated the purchase of 10 kilograms of cocaine. Vincent was arrested in October 2018, after attempting to purchasing two kilograms of cocaine, which he intended to sell to generate the funds to purchase additional kilograms of cocaine. Upon his arrest, law enforcement recovered two firearms hidden in Vincent’s vehicle, including an AK-style pistol.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Michael Ben’Ary and Special Assistant U.S. Attorney and Virginia Assistant Attorney General Lena Munasifi 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-440.
Armed Carjacker Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Mouhamed Camara, age 29, of Reisterstown, Maryland to 10 years in federal prison, followed by five years of supervised release for Carjacking, and Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to Camara’s plea agreement, on January 9, 2018, the victim had started her 2010 Toyota Corolla to warm the engine outside of her home in Reisterstown, Maryland. She was scraping ice off of the windows when she spotted Camara on the other side of the street. When she turned around, Camara pointed a gun in her face, but did not say a word. The victim ran for safety. Camara entered the victim’s car, which contained her purse and cellphone, and drove away.
Baltimore County Police Officers later located the vehicle in the area of an apartment complex in Reisterstown, Maryland. Detectives placed a GPS tracker on the carjacked vehicle to track its movements. A short time later, the vehicle was observed traveling towards Hanover Pike and onto I-795 South. Detectives followed the vehicle onto I-695 where they stopped the vehicle. Camara was the operator and sole occupant of the vehicle.
Detectives obtained a search warrant for Camara’s cellphone. A search of the cellphone revealed a photo of a black semi-automatic handgun that was consistent with the description of the firearm provided by the victim. There was also a photo of the defendant’s girlfriend stamped with a geolocation near a residence in Reisterstown, Maryland, taken on January 8, 2018, the day prior to the carjacking.
On January 10, 2018, detectives went to the residence and found Camara’s girlfriend and another male exiting the residence. Detectives approached and spoke with them. Camara’s girlfriend indicated that she and Camara had been living at the residence and had a black backpack inside the residence.
Detectives obtained a search warrant for the residence and recovered a loaded handgun, along with a black backpack, and some clothing belonging to Camara. The firearm seized matched the firearm seen in the photo on Camara’s phone.
United States Attorney Robert K. Hur commended the FBI's Baltimore Field Office and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney John Sippel, who is prosecuting the case.
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Attorney General William P. Barr Announces Emergency Funding to Address Public Safety Crisis in Rural AlaskaRead the Press Release
WASHINGTON – Attorney General William P. Barr declared a law enforcement emergency in rural Alaska under the Emergency Federal Law Enforcement Assistance Program today, making $6 million immediately available to the state of Alaska for critical law enforcement needs of Alaska Native villages.
Recognizing that Alaska has the highest per capita crime rate in the country and the unique circumstances of Alaska’s geographical and jurisdictional landscape, the Attorney General authorized additional funding and several long-term measures to support village public safety and victim services.
As the Department develops a comprehensive response to public safety issues in Alaska, Attorney General Barr expressed his commitment to working closely with American Indian and Alaska Native leadership as well as Congressional and state representatives to ensure Departmental solutions are practical and effective. The Attorney General will also travel to an Indian country location in the lower 48 states in the coming months, recognizing the significant public safety challenges that persist for many Native American communities.
“I want to be sure that the support this Department offers to Alaska Native communities will support solutions identified by the communities themselves,” said Attorney General Barr. “The only way for us to provide effective support is to work in partnership with others. This is true in Alaska and throughout Indian country.”
The $6 million in emergency funding from the Office of Justice Program’s Bureau of Justice Assistance (OJP-BJA) will go toward hiring, equipping, and training Village Public Safety Officers (VPSOs), Village Police Officers (VPOs), and Tribal Police Officers (TPOs) working in rural Alaska, as well as for mobile detention facilities.
In addition, the Department of Justice Office on Community Oriented Policing Services (COPS) will award $4.5 million in funding for 20 officer positions, along with equipment and training, to Alaska Native grantees by the end of July.
The Office for Victims of Crime (OVC) and the Office on Juvenile Justice and Delinquency Prevention (OJJDP) will support Children’s Advocacy Centers (CAC) in rural Alaska’s major hubs, which provide wrap-around services, forensic interviews, and medical exams for child victims. OVC and OJJDP have identified up to $14 million in available funding for CACs in Alaska and the lower 48 states.
“In May, when I visited Alaska, I witnessed firsthand the complex, unique, and dire law enforcement challenges the State of Alaska and its remote Alaska Native communities are facing,” said Attorney General Barr. “With this emergency declaration, I am directing resources where they are needed most and needed immediately, to support the local law enforcement response in Alaska Native communities, whose people are dealing with extremely high rates of violence. Today, I am also directing each component and law enforcement agency of the Justice Department to submit plans within the next 30 days to further support federal, state, and tribal public safety efforts in rural Alaska. Lives depend on it, and we are committed to seeing a change in this unacceptable, daily reality for Alaska Native people.”
The Attorney General also announced a Rural Alaska Violent Crime Reduction Working Group, led by U.S. Attorney Bryan Schroder. The Working Group will look for ways to build the capacity of federal, state, and tribal law enforcement in rural Alaska and its work will have a particular emphasis on crimes of domestic violence and crimes against children. BJA is also making an additional $162,000 available to the U.S. Attorney’s Office to establish an additional Project Safe Neighborhoods (PSN) target site encompassing rural Alaska.
Alaska is home to some of the most remote communities in all of America. This geographic isolation contributes to law enforcement problems not seen anywhere else in our Nation. According to one estimate, one-third of Alaskan villages have no local law enforcement personnel at all. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. The lack of law enforcement resources results in a high violent crime rate, especially in Alaska Native communities.
Additional near-term measures by Department of Justice components include:
- The Office on Violence Against Women (OVW) will issue an award for sexual assault training and technical assistance in Alaska, including training community health aides in Alaska Native villages to perform sexual assault forensic exams and training for victim advocates. The project will include community sexual assault training, which will address coordinated responses to sexual assault across the community. This award will also train village-based victim advocates to accompany victims throughout the process, including prosecution, as appropriate.
- OVC is extending their application deadline for the Crime Victim Fund tribal set-aside solicitation (part of the $167 million available to tribes for victim services in FY 2019) to Aug. 16, 2019. This money may be used to fund direct services and advocacy, domestic violence shelters, rape crisis services, children advocacy programs, and elder abuse programs.
- BJA is extending their application deadline to July 15, 2019, for programs that target mental health/drug addiction, reentry initiatives, and community crime reduction.
- The COPS Office has two grant programs that it will reopen to afford Alaska the opportunity to apply:
- The Anti-Methamphetamine Program (CAMP) is open to state law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures.
- The COPS Anti-Heroin Task Force (AHTF) Program is open to state law enforcement agencies with multi-jurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions.
As the Department develops a comprehensive response to public safety issues in Alaska, Attorney General Barr expressed his commitment to working closely with American Indian and Alaska Native leadership as well as Congressional and state representatives to ensure Departmental solutions are practical and effective. The Attorney General will also travel to an Indian country location in the lower 48 states in the coming months, recognizing the significant public safety challenges that persist for many Native American communities.
“I want to be sure that the support this Department offers to Alaska Native communities will support solutions identified by the communities themselves,” said Attorney General Barr. “The only way for us to provide effective support is to work in partnership with others. This is true in Alaska and throughout Indian country.”
In a memo to all Justice Department component leaders, the Attorney General directed every component and law enforcement agency to submit a plan in the next 30 days to further support these efforts in Alaska, focusing in particular on the following goals:
- Increasing the federal, state, local, and tribal law enforcement presence in Alaska and ways to provide more prosecutorial resources for the criminal cases that will result from increased law enforcement presence;
- Reducing violent crime, especially gun violence;
- Decreasing sexual assaults of women and children;
- Providing better immediate and long-term services to victims of crime;
- Cutting off supplies of methamphetamines, opioids, and other illegal drugs;
- Addressing the problem of alcohol abuse and its role in violent crime and crimes against children;
- Increasing addiction prevention and treatment services to those struggling with addictions to drugs and alcohol;
- Providing adequate detention facilities in remote locations; and,
- Incorporating technology into law enforcement efforts to improve response times and decrease travel costs for victims and witnesses.
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27 June 2019
“Goodie Bag” Doctor Charged with Health Care Fraud and Oxycodone DistributionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Andrew M. Berkowitz, M.D., 60, of Huntington Valley, PA, was charged by Indictment with 19 counts of health care fraud, and 23 counts of distributing oxycodone outside the course of professional practice and without a legitimate medical purpose.
According to the Indictment, Berkowitz operated a medical practice in Philadelphia under the name ‘A+ Pain Management’, and through this practice Berkowitz fraudulently billed insurers for medically unnecessary physical therapy, acupuncture, chiropractic adjustments, and prescriptions drugs – and sometimes for treatments not provided at all.
Regardless of their individual complaint, at every visit A+ patients received a “goodie bag” which was a tote bag filled with prescription drugs for which Berkowitz submitted pharmacy claims through his company, Bucks Philadelphia Medical Care Group. The “goodie bags” typically included a combination of drugs such as Topical Analgesics, such as Relyyt and/or Lidocaine; Muscle Relaxers, such as Chloroxazon and/or Cyclobenzaprine; Anti-Inflammatories, such as Celecoxib and/or Nalfon; and Schedule IV controlled substances, such as Tramadol for pain; and/or Eszopiclone and Quazepam for insomnia and anxiety. Berkowitz obtained payments from insurers of more than $4,000 for each bag by falsely asserting that the drugs were for the benefit of the patient when, in reality, Berkowitz was the real beneficiary.
The Indictment also alleges that Berkowitz would prescribe Oxycodone to “pill-seeking” patients in exchange for their tacit approval that he would submit excessive claims to the patients’ insurers for the “goodie bag” and other medically unnecessary services. For 2015 through 2018, Berkowitz obtained an estimated $3.2 million in fraudulent proceeds from his “goodie bag” scheme.
In addition to the criminal charges, the Affirmative Civil Enforcement (ACE) Strike Force of the U.S. Attorney’s Office also filed a civil suit for an injunction to stop any future healthcare fraud and to freeze much of the defendant’s assets pending the criminal and civil investigations. The court granted the government’s request and entered a temporary restraining order against the defendants pending additional proceedings.
“The U.S. Attorney's Office is committed to bringing all of our enforcement tools to bear against healthcare fraud and drug diversion,” said U.S. Attorney McSwain. “Today's case is the latest example of our Criminal Division working in tandem with our ACE Strike Force to pursue fraud and diversion that allegedly put dangerous and addictive pills onto the street in the midst of the ongoing opioid epidemic.”
“Again and again, we're seeing these doctors with dollar signs in their eyes, willing to abandon all pretense of professional ethics,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “As alleged, Berkowitz made millions by diverting dangerous drugs to anyone who wanted them, with Medicare — and ultimately, American taxpayers — picking up the tab. The FBI, with the Philadelphia Police and our federal partners are doggedly working to put medical professionals engaged in this kind of fraud out of business.”
If convicted, the defendant faces a maximum possible sentence of 660 years in prison.
The case was investigated by the Federal Bureau of Investigation; the Philadelphia Police Department, Health and Human Services – Office of Inspector General, Office of Personnel Management – Office of Inspector General, and Department of Labor – Office of Inspector General, and is being prosecuted by Assistant United States Attorney M. Beth Leahy. The civil action is being handled by Assistant United States Attorney Anthony Scicchitano.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wisconsin Dentist Indicted for Tax EvasionRead the Press Release
A federal grand jury in Madison, Wisconsin, indicted a La Crosse, Wisconsin, dentist yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott C. Blader for the Western District of Wisconsin.
According to the indictment, Frederick G. Kriemelmeyer operated a dental practice in La Crosse, Wisconsin. In 2007, Kriemelmeyer was ordered by the United States District Court for the Western District of Wisconsin to pay $135,337 to the Internal Revenue Service (IRS) for unpaid individual income taxes. By December 2012, the IRS had assessed Kriemelmeyer more than $450,000 in taxes, interest and penalties. Beginning in approximately 2011, Kriemelmeyer allegedly took a number of actions to evade payment of this assessment. The indictment also charges that for the years 2013 through 2015 Kriemelmeyer failed to file tax returns and attempted to evade the taxes due on income from his dental practice. Kriemelmeyer allegedly sought to conceal his income from the IRS, by among other things, directing his patients to pay in cash or with personal checks that left the payee line blank and by paying his business and personal expenses with cash and third-party checks.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Kriemelmeyer faces a statutory maximum sentence of five years in prison for each of the tax evasion counts.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Blader commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Elizabeth Altman and Trial Attorney Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Waterbury Man Sentenced to 33 Months in Federal Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANGEL CRUZ, 44, of Waterbury, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, Luis “Gordo” Cirino, coordinated the shipment of multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico to various locations in Connecticut. Cirino, Cruz and others then distributed the drug in central Connecticut, and also in northeastern Pennsylvania. Investigators seized approximately 13 kilograms of cocaine during the investigation.
On October 18, 2017, a grand jury in New Haven returned an indictment charging Cirino, Cruz and six associates with cocaine trafficking offenses.
Cruz was arrested on October 25, 2017. On January 24, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine.
Cirino pleaded guilty and, on April 29, 2019, was sentenced to 135 months of imprisonment.
This matter has been investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Verona Man Charged with Federal Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA – One former resident of Verona, PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The two-count superseding indictment, returned on June 25, named Richard Anthony Burke, 29, as the sole defendant.
According to the superseding indictment, on November 12, 2016, Burke possessed with intent to distribute a quantity of fentanyl. On February 3, 2017, Burke, a convicted felon, was also in possession of a firearm. As a convicted felon, Burke is prohibited by federal law from possessing a firearm.
The law provides for a maximum total sentence of not more than 40 years’ imprisonment and a fine of $2,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the criminal history of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Wilkinsburg Police Department conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Postal Service Employee charged with EmbezzlementRead the Press Release
BOSTON – A U.S. Postal Service (USPS) employee was arrested today and charged with embezzling over $20,000 in payments from customers for money orders and stamps.
Austin Correia, 22, of New Bedford, was indicted on one count of embezzlement and theft of public money, property or records. Correia will appear later today in federal court in Boston.
According to the indictment, Correia began working for USPS at the end of 2017 as a Sales & Service Distribution Associate at both the Mount Pleasant and North Street Post Offices in New Bedford. In this role, Correia had the ability to issue foreign and domestic postal money orders and sell stamps to customers. Correia engaged in a scheme in which he received a cash payment from customers to purchase stamps or money orders, but voided out the valid transactions to make it appear as if they did not occur. Correia provided the customer with the USPS product, but took the cash payment for his own personal use either by pocketing the money or by purchasing gift cards sold at the Post Office. It is alleged that Correia’s scheme cost the USPS over $20,000.
The charging statute provides a sentence of no greater than 10 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney's Office to Join FBI, Local Law Enforcement for House of Worship Safety SeminarRead the Press Release
PORTLAND—U.S. Attorney Billy J. Williams announced today that the U.S. Attorney’s Office will join the FBI and other Portland area law enforcement agencies to host a safety and security seminar for faith communities.
Leaders and subject matter experts from the U.S. Attorney’s Office, the FBI, Oregon State Police, Portland Police Bureau and the Multnomah, Clackamas and Washington County Sheriffs’ Offices will jointly present information designed to support and update existing house of worship security protocols and preparedness measures.
All senior faith leaders and congregation security personnel in Multnomah, Clackamas and Washington counties are encouraged to attend. The training will include a robust question and answer period.
Please note: this training is being offered for information and preparedness purposes only and is not responsive to any active or known threats to area congregations.
WHAT: Safety Seminar for Faith Communities
WHEN: Sunday, June 30, 2019 from 3:00-6:00pm PDT
WHERE: Congregation Neveh Shalom—2900 SW Peaceful Lane, Portland, Oregon
This training is free and designed for senior faith leaders and congregation security personnel.
A news conference featuring senior leaders from OneCOP and participating law enforcement agencies will be held on Thursday, June 27, 2019 at 12:30 p.m. on the 15th floor of the Justice Center (Chief's Office Conference Room). Media can arrive at 12:00 p.m. for set-up and a representative will meet interested media in the lobby to assist with entry.
U.S. Attorney to Host Annual Youth Summit on June 28 at Catholic UniversityRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia teams up with our local and federal law enforcement partners and community-based organizations to host the Ninth Annual “Breaking the Silence on Youth Violence Youth Summit,” on Friday, June 28, 2019, at The Catholic University of America in the Hartke Theater.
The free Summit will focus on gun violence and drug prevention and feature dynamic speakers, entertainment, prizes, invaluable information and resources.
For the past eight years, the U.S. Attorney’s Office has collaborated with its partners to host the Youth Summit. Past Summits have included sessions that highlight the causes and consequences of youth violence, challenge youth participants to make better decisions, and emphasize the importance of cooperating with law enforcement. The breakout sessions focus on public safety issues facing our youth, such as teen domestic violence, heroin and opiate abuse, and human trafficking. The Summits have concluded with an educational entertainment segment to reinforce the positive messages of the Youth Summit.
The Summits have also included a youth informational fair in which numerous non-profits provide information on youth development programs, mentoring programs, and educational youth activities. More than 500 youths participated in the event last year, and thousands have participated in the activities since the first event in 2011.
The ninth annual “Breaking the Silence on Youth Violence Summit” will be held from 9:00 a.m. to 3:00 p.m., at the Catholic University of America in the Hartke Theater at 3801 Harewood Road, NE Washington, D.C. 200017. All youth between the ages of 8-18 are welcome.
The Summit is a part of the Department of Justice’s Project Safe Neighborhood Program, a nationwide effort to reduce violent crime.
This year’s partners include Mayor Marion S. Barry Summer Youth Employment Program, East of the River Family Collaborative, Hillcrest Children Family Center, the Metropolitan Police Department, Collaborative Solutions for Communities, the D.C. Department of Parks and Recreation, D.C. Department of Behavioral Health, Kids Eat Free, D.C. Prevention Centers, Court Services and Offender Supervision Agency, and a Foundation for a Drug-Free World.
For more information, contact Executive Assistant U.S. Attorney for External Affairs, Wendy Pohlhaus (202)252-6930 or [email protected].
Two Romanian Nationals Charged with Bank Fraud and Identity Theft OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Costel Aparaschivei, age 35, a Romanian national, was indicted by a federal grand jury on June 25, 2019, for conspiring to commit and committing bank fraud, and with aggravated identity theft. In a related case, Daniel Gologan, age 29, also a Romanian national, was charged in a criminal information on June 26, 2019, for conspiring to commit bank fraud and aggravated identity theft.
According to United States Attorney David J. Freed, the indictment and information charge Aparaschivei and Gologan with conspiring to commit bank fraud between October 6, 2018 and October 21, 2018. Aparaschivei was charged with six counts of bank fraud during that time period, and two counts of aggravated identity. Gologan also was charged with a single count of aggravated identity theft.
The indictment and information allege that the defendants obtained counterfeit debit cards bearing stolen account numbers and PINs in New York, and transported them to South Abington, Pennsylvania. In Pennsylvania, the defendants used the counterfeit debit cards at Penn East Federal Credit Union and attempted to withdraw approximately $140,360. The defendants successfully withdrew $66,510.
The matter was investigated by the United States Secret Service and by the South Abington Township Police Department. Assistant United States Attorney Phillip J. Caraballo is prosecuting the cases.
Indictments and informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the most serious charges are up to 30 years of imprisonment. The aggravated identity theft charges carry mandatory, consecutive two-year terms of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two New Jersey Men Sentenced in Manhattan Federal Court for Scheme to Steal over $2 Million in Stock Certificates from Deceased Manhattan WomanRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ROBERT MERLO was sentenced today to 42 months in prison and STEPHEN DECKER was sentenced on June 12, 2019, to 57 months in prison for participating in a scheme to steal more than $2 million in stock certificates from the apartment of a deceased Manhattan woman, open a brokerage account in her name in order to liquidate the stocks, and then use those stolen assets to attempt to purchase over $2 million worth of gold coins. MERLO was convicted of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft after a four-day trial in March 2019. DECKER pled guilty to the same charges in January 2019. The sentence was imposed by U.S. District Judge Lewis A. Kaplan.
U.S. Attorney Geoffrey S. Berman said: “Robert Merlo and Stephen Decker engaged in a conspiracy to steal stock certificates from a deceased woman, liquidate them, and convert the proceeds for themselves. Their conduct was the financial equivalent of grave-robbing, and the sentences they received reflect the seriousness of their crimes.”
As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:
From approximately March 2016 to February 2017, MERLO and DECKER engaged in a scheme with others known and unknown designed to steal over $2 million from a deceased Manhattan woman (the “Victim”). As part of the scheme, DECKER and another co-conspirator, who both worked in the Victim’s building, stole stock certificates valued at over $2 million from the Victim’s Manhattan apartment after the Victim’s death. DECKER approached MERLO, a New Jersey-based insurance agent and DECKER’s longtime friend, to find a way to monetize the stock certificates. In August 2016, MERLO and DECKER agreed with others to make false representations to a financial institution (“Company-1”) in order to open a brokerage account (the “Account”) in the Victim’s name, deposit the stolen stock certificates into the Account, and sell the shares in the brokerage account, resulting in a cash balance of over $2 million. MERLO agreed to help launder the cash balance in the brokerage account, approaching several individuals to carry out his plan. MERLO, DECKER, and their co-conspirators then attempted to purchase $2 million in gold coins using the assets in the Account. MERLO, DECKER, and the other co-conspirators met several times over the course of months and communicated using prepaid or “burner” phones regarding the fraudulent scheme.
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Judge Kaplan sentenced MERLO, 55, of Secaucus, New Jersey, to a mandatory minimum sentence of two years in prison on the aggravated identity theft count and 18 months in prison on the remaining counts, to be served consecutively to the two-year term of imprisonment. In addition, Judge Kaplan ordered restitution in the amount of $75,000; the balance of the over $2 million in proceeds from the stolen stock certificates were previously recovered, as a result of the investigation by the Federal Bureau of Investigation “FBI”), and returned to the Victim’s estate.
Judge Kaplan sentenced DECKER, 61, of Secaucus, New Jersey, to a mandatory minimum sentence of two years in prison on the aggravated identity theft count and 33 months in prison on the remaining counts, to be served consecutively to the two-year term of imprisonment.
Mr. Berman praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Cecilia Vogel, Sarah Mortazavi, Dina McLeod, and Alexandra Rothman are in charge of the prosecution.
Two KC Men Indicted for $1 Million Conspiracy to Steal 1,400 Cell Phones in Dozens of BurglariesRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Missouri, men have been indicted by a federal grand jury for their roles in a $1 million conspiracy to steal more than 1,400 cell phones in dozens of commercial burglaries across five states.
Viktor Chernetskiy, 29, a naturalized citizen from Ukraine, and Bryan C. Kirkendoll II, 29, were charged in a five-count indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, June 26. The indictment replaces a criminal complaint that was filed on June 14. Chernetskiy remains in federal custody without bond; Kirkendoll was released on bond.
The federal indictment alleges that Chernetskiy and Kirkendoll participated in a conspiracy to steal electronic devices – primarily cell phones – from stores in Missouri, Kansas, Iowa, Illinois, and Oklahoma, then transport them across state lines in order to sell them.
According to the indictment, Chernetskiy and Kirkendoll committed 48 burglaries from Nov. 21, 2018, to June 14, 2019, in which they stole approximately 1,401 electronic devices (primarily cell phones) with a total financial loss of approximately $1,008,742. The indictment includes a list of burglaries and individual loss amounts for each store.
In each instance, the indictment says, the stores were burglarized after hours and the co-conspirators wore hooded sweatshirts, caps, and gloves to conceal their identity and limit the trace evidence left behind during the burglaries. They allegedly pried the doors open with a large screwdriver or crowbar; in many instances, they broke the glass windows out of the doors, and then went through the opening. Once inside, they allegedly looked for phones that were not secured within a safe or other secure location, and loaded those phones into a plastic bin, trash bag, or other bag. In some instances, the indictment says, they also cut retractable security cables from store demonstration phones and took those as well. There was at least one instance where it appeared that they tried (unsuccessfully) to pry open a safe.
In addition to the conspiracy, Chernetskiy and Kirkendoll are charged together in three counts of transporting stolen property across state lines and Chernetskiy is charged in a fourth count of transporting stolen property across state lines.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the Missouri State Highway Patrol and the FBI.
Two Former Venezuelan Officials Charged and Two Businessmen Plead Guilty in Connection with Venezuela Bribery SchemeRead the Press Release
A former Venezuelan government minister and a former officer at Venezuela’s state-owned and state-controlled electricity company, Corporación Eléctrica Nacional, S.A. (Corpoelec), were charged in an indictment returned today for their alleged roles in laundering the proceeds of violations of the Foreign Corrupt Practices Act (FCPA) in connection with their alleged receipt of bribes to award Corpoelec business to U.S.-based companies. Today’s indictment follows the guilty pleas of two businessmen, earlier this week, for conspiring to violate the FCPA in connection with the corrupt payment scheme at Corpoelec.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s Miami Field Division (DEA Miami) made the announcement.
Luis Alfredo Motta Dominguez (Motta), 60, and Eustiquio Jose Lugo Gomez (Lugo), 55, both of Venezuela, were charged in an eight-count indictment returned today in the Southern District of Florida with one count of conspiracy to commit money laundering and seven counts of money laundering. Until recently, Motta was the minister of electrical energy in Venezuela and the head of Corpoelec; Lugo was the procurement director at Corpoelec.
The indictment alleges that beginning in or around January 2016 and continuing through December 2018, Motta and Lugo conspired with others to launder the proceeds of an illegal bribery scheme to and from bank accounts located in southern Florida. According to the indictment, Motta and Lugo awarded three Florida-based companies more than $60 million in procurement contracts with Corpoelec in exchange for bribes paid to them or for their benefit. The indictment further alleges that the unlawful activity was a bribery scheme that violated the FCPA and involved bribery offenses against Venezuela. According to the charges, a substantial portion of the proceeds from the corrupt contracts was laundered through U.S. financial institutions using bank accounts located in the Southern District of Florida.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On June 24, 2019, Jesus Ramon Veroes (Veroes), 69, of Venezuela, and Luis Alberto Chacin Haddad (Chacin), 54, of Miami, Florida, each pleaded guilty before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to violate various provisions of the FCPA. Veroes and Chacin are scheduled to be sentenced by Judge Altonaga on Sept. 4, 2019.
According to admissions made in connection with their guilty pleas, Veroes and Chacin agreed with each other and with other co-conspirators to make corrupt payments to foreign officials at Corpoelec in exchange for the award of procurement contracts to Florida-based companies. Under the terms of their plea agreements, Veroes and Chacin will each be required to forfeit at least $5.5 million in profits from the corruptly obtained contracts, as well as real property in the Miami area.
This case was investigated by DEA Miami with assistance from the IRS Criminal Investigations Miami Field Office and the FBI’s Miami Field Office. Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section, Trial Attorney Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Two Former Venezuelan Officials Charged and Two Businessmen Plead Guilty in Connection with Venezuela Bribery SchemeRead the Press Release
A former Venezuelan government minister and a former officer at Venezuela’s state-owned and state-controlled electricity company, Corporación Eléctrica Nacional, S.A. (Corpoelec), were charged in an indictment returned today for their alleged roles in laundering the proceeds of violations of the Foreign Corrupt Practices Act (FCPA) in connection with their alleged receipt of bribes to award Corpoelec business to U.S.-based companies. Today’s indictment follows the guilty pleas of two businessmen, earlier this week, for conspiring to violate the FCPA in connection with the corrupt payment scheme at Corpoelec.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and Adolphus P. Wright, Special Agent in Charge of the Drug Enforcement Administration’s Miami Field Division (DEA Miami), made the announcement.
Luis Alfredo Motta Dominguez (Motta), 60, and Eustiquio Jose Lugo Gomez (Lugo), 55, both of Venezuela, were charged in an eight-count indictment returned today in the Southern District of Florida with one count of conspiracy to commit money laundering and seven counts of money laundering. Until recently, Motta was the minister of electrical energy in Venezuela and the head of Corpoelec; Lugo was the procurement director at Corpoelec.
The indictment alleges that beginning in or around January 2016 and continuing through December 2018, Motta and Lugo conspired with others to launder the proceeds of an illegal bribery scheme to and from bank accounts located in southern Florida. According to the indictment, Motta and Lugo awarded three Florida-based companies more than $60 million in procurement contracts with Corpoelec in exchange for bribes paid to them or for their benefit. The indictment further alleges that the unlawful activity was a bribery scheme that violated the FCPA and involved bribery offenses against Venezuela. According to the charges, a substantial portion of the proceeds from the corrupt contracts was laundered through U.S. financial institutions using bank accounts located in the Southern District of Florida.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On June 24, 2019, Jesus Ramon Veroes (Veroes), 69, of Venezuela, and Luis Alberto Chacin Haddad (Chacin), 54, of Miami, Florida, each pleaded guilty before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to violate various provisions of the FCPA. Veroes and Chacin are scheduled to be sentenced by Judge Altonaga on Sept. 4, 2019.
According to admissions made in connection with their guilty pleas, Veroes and Chacin agreed with each other and with other co-conspirators to make corrupt payments to foreign officials at Corpoelec in exchange for the award of procurement contracts to Florida-based companies. Under the terms of their plea agreements, Veroes and Chacin will each be required to forfeit at least $5.5 million in profits from the corruptly obtained contracts, as well as real property in the Miami area.
This case was investigated by DEA Miami with assistance from the IRS Criminal Investigations Miami Field Office and the FBI’s Miami Field Office. Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida, Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section, and Trial Attorney Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Former Residents of Dubois Plead Guilty to Mail TheftRead the Press Release
JOHNSTOWN, PA – Two residents of DuBois, PA, pleaded guilty in federal court to charges of conspiracy to commit mail theft and mail theft, United States Attorney Scott W. Brady announced today.
David E. Moore, 26, and Joshua J. Frantz, 26, each pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the Court was advised that from in or around February 2016 through in or around March 2016, cousins, Joshua J. Frantz and David E. Moore, Jr., agreed to and did steal mail from mail receptacles located at an apartment complex at 122 West Washington Avenue, in DuBois, PA. The court was further advised that on at least 11 occasions, either one or both of the defendants were observed on surveillance video and that more than 60 individuals had pieces of US mail stolen from their mail receptacles as a result of the mail theft conspiracy.
Judge Gibson scheduled sentencing for Oct. 22, 2019 at 10 a.m. for Frantz, and at 1 p.m. that same day for Moore. The law provides for a total sentence of 10 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Both defendants remain imprisoned pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the DuBois Police Department conducted the investigation that led to the prosecution of Moore and Frantz.
Two Defendants in College Admissions Case Plead GuiltyRead the Press Release
BOSTON – A university athletic coach and a former accountant pleaded guilty today in federal court in Boston in connection with the college admissions case.
Ali Khosroshahin, 49, of Fountain Valley, Calif., a former head coach of women’s soccer at the University of Southern California, pleaded guilty to conspiracy to commit racketeering. U.S. District Court Judge Indira Talwani scheduled sentencing for Oct. 25, 2019. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the federal Sentencing Guidelines, one year of supervised release, a fine, restitution and forfeiture. Khosroshahin is cooperating with the government’s investigation.
Steven Masera, 69, of Folsom, Calif., a former accountant and financial officer for the Edge College & Career Network and the Key Worldwide Foundation, pleaded guilty to conspiracy to commit racketeering. Judge Talwani scheduled sentencing for Oct. 22, 2019. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the federal Sentencing Guidelines, one year of supervised release, a fine, restitution and forfeiture. Masera is also cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit and Carol Head of Lelling’s Asset Recovery Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.