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26 June 2019
20 Individuals Charged in Eight IndictmentsRead the Press Release
FORT WAYNE – United States Attorney Thomas L. Kirsch and Federal Bureau of Investigation Special Agent In Charge Grant Mendenhall in coordination with Fort Wayne Chief Steve Reed, Allen County Sheriff David Gladieux and Indiana State Police Superintendent Doug Carter announce charges in 8 indictments unsealed today.
These indictments focused on a number of drug distribution charges, with 20 individuals charged across the 8 indictments. Twelve (12) search warrants were also executed this morning in greater Fort Wayne as part of law enforcement efforts to arrest the indicted individuals.
In these indictments the following charges are alleged:
Jennifer Mendoza, age 24, and Luiza Gunn a/k/a Luiza Eldridge, age 26, both of Fort Wayne were each charged in a three (3) count indictment alleging the distribution of fentanyl.
Ivan Acosta a/k/a Ivan Acosta-Soto, age 35, and Juan Hernandez-Ortega, age 31, both of Fort Wayne were charged in a three (3) count indictment alleging the distribution of methamphetamine.
Ubaldo Peralta-Soto, age 25, of Indianapolis; Clemente Cortez, age 45, of Fort Wayne; and Nestor Luna-Lugo, age 34, of Fort Wayne were charged in a four (4) count indictment alleging conspiracy to distribute cocaine as well as the distribution of cocaine.
Juvenal Cervantes-Cruz, age 25, of Red Bluff, CA along with Christian Diaz, age 22, and Jesus Sanchez, Jr, age 21, both of Fort Wayne were charged in a five (5) count indictment alleging the distribution of marijuana, possessing a firearm in furtherance of a drug trafficking crime and providing a residence for the storage and distribution of narcotics.
Fredi Garcia-Gamez, age 33, Miguel Navarrete-Garcia, age 43, and Tomas Vega-Perez, age 41, all of Fort Wayne were charged in a three (3) count indictment alleging the distribution of heroin and providing a residence for the storage and distribution of narcotics.
Jesus Soto-Arellanes a/k/a Chuy, age 37, and Erik De Leon Verduzco-Garcia a/k/a Pulpo, age 33, both of Fort Wayne along with Roberto Soto-Arellanes, age 43, Jesus Alberto Soto-Garcia a/k/a Chubeto, age 35 and Edbel Alejandro Soto-Verduzco, age 28, all of Columbia City were charged in a twelve (12) count indictment alleging conspiracy to distribute cocaine, methamphetamine, heroin and marijuana along with other drug distribution and gun possession charges.
Roderick Dedeaux a/k/a Rodrick Dedeaux, age 29, of Fort Wayne was charged in a five (5) count indictment alleging distribution of fentanyl, methamphetamine and carrying a firearm in relation to a drug trafficking crime.
Juan Salas, age 30, of Fort Wayne was charged in in an eight (8) count indictment alleging the distribution of fentanyl.
U.S. Attorney Kirsch said, “Narcotic distribution is one of the precursors to violent crime. Today with the arrest of these individuals we made a serious impact on the distribution of narcotics in the greater Fort Wayne Area. Local police agencies like Fort Wayne PD, the Allen County Sheriff’s Department and Indiana State Police worked tirelessly in coordination with the FBI to build these cases in Fort Wayne to help reduce violence associated with drug distribution.”
“Today's law enforcement actions are a culmination of more than a year's worth of investigative activity led by the Fort Wayne FBI's Safe Streets Task Force, which includes as its partners the Fort Wayne Police Department, Allen County Sheriff's Department and the Indiana State Police,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This was an outstanding example of Federal and State agencies working together to positively impact Northeast Indiana by disrupting and dismantling a large scale drug trafficking organization. These arrests should serve as a reminder that we will continue to target these offenders and the impact they are having on our communities.”
"The collaborative efforts of the Fort Wayne Police Department, FBI and the U.S. Attorney's Office continue to make positive strides against drug trafficking in the City of Fort Wayne. The joint effort of these agencies has resulted in criminal investigations and arrests that will significantly affect the drug trade in Fort Wayne and Allen County," said Chief Steve Reed, Fort Wayne Police Department. "The agencies that comprise the Safe Streets Task Force - the Fort Wayne Police Department, Allen County Police Department, Indiana State Police and FBI - continue to work tirelessly in their efforts to eliminate drug trafficking and the violence that often accompanies it. These arrests and seizures are a direct result of that combined effort and we thank these officers for all the long hours and hard work that went into these investigations."
“The Allen County Sheriff’s Department, a proud member of the Safe Streets Task Force, has and will continue to work in conjunction with the FBI, and the U.S Attorney’s Office to battle the drug epidemic within Allen County. We are encouraged by the efforts that have been set forth, and look forward to positive improvements in our area,” said Sheriff David J. Gladieux, Allen County Sheriff’s Department.
Indiana State Police Superintendent Doug Carter commented, “I am extremely proud of our participation with the FBI Safe Streets Task Force.” Carter continued, “The hard work of our assigned investigators, in collaboration with other member representatives, speaks to the dedication of state, county, local and federal law enforcement partners who work daily to make Indiana communities safer for everyone to enjoy.”
These cases were investigated by the Federal Bureau of Investigation Safe Streets Team, the Fort Wayne Police Department, the Allen County Sheriff’s Department and the Indiana State Police with the assistance of the Marion County Sheriff’s Department. These cases will be prosecuted by Assistant United States Attorneys Anthony Geller and Stacey R. Speith.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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25 June 2019
Wounded Knee Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Wounded Knee, South Dakota, man convicted of Abusive Sexual Contact was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Carl Crooked Eyes, age 26, was sentenced on June 14, 2019, to 5 years in federal prison, followed by10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Crooked Eyes engaging in sexual contact with a six-year-old girl between February 2011 and June 2011, at Wounded Knee.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan J. Poppen prosecuted the case.
Crooked Eyes was immediately turned over to the custody of the U.S. Marshals Service.
Wood County Man Pleads Guilty to Federal Gun ChargeRead the Press Release
CHARLESTON, W.Va. – A Wood County man who operated a pawn shop in Mineral Wells pled guilty to a federal gun charge, announced United States Attorney Mike Stuart. Alonzo Clark Nichols, 38, entered a guilty plea to possession of an unregistered machine gun. Stuart commended the investigative efforts of the Parkersburg Narcotics Task Force (PNTF) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
“This is an egregious case,” said United States Attorney Mike Stuart. “Firearms dealers are held to a common standard of complying with federal laws. In the wrong hands, the modified firearm could’ve been the instrument of the next terrible disaster. We will not tolerate such disregard for laws that are intended to protect law enforcement and the public.”
In January 2019, Nichols was a federally licensed firearms dealer operating 5 Star Pawn on Elizabeth Pike in Mineral Wells. On January 4, 2019, Nichols gave a police officer a gun part called an auto sear designed to convert a pistol from semiautomatic to fully automatic. On January 8, 2019, Nichols sold another auto sear to the officer. On January 11, 2019, PNTF and ATF agents executed a search warrant at 5 Star Pawn where they seized additional auto sears and several rounds of 25mm high explosive incendiary tracers used by the United States military. Auto sears meet the definition of machinegun under federal law. Consequently, it is unlawful to possess an auto sear unless it has been registered in the National Firearms Registration and Transfer Record. Despite having a federal firearms license, Nichols did not have authority to possess or sell machineguns, machinegun parts, or other National Firearms Act (NFA) weapons. He faces up to ten years in federal prison when he is sentenced on September 25, 2019.
Assistant United States Attorney Joshua C. Hanks is handling the prosecution. Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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###White River Man Sentenced for Abusive Sexual Contact of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, man convicted of Abusive Sexual Contact of a Child was sentenced on June 18, 2019, by U.S. District Judge Roberto A. Lange.
Roger Moran, age 66, was sentenced to 186 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Moran was indicted by a federal grand jury on August 14, 2018. He pled guilty on March 21, 2019.
The conviction stemmed from incidents that occurred between February 25, 2014, and August 23, 2018, when Moran knowingly engaged in sexual contact with a minor female with the intent to abuse, humiliate, harass, degrade, and arouse or gratify his own sexual desire.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Moran was immediately turned over to the custody of the U.S. Marshals Service.
Whitaker, PA Felon Charged with Illegally Possessing a FirearmRead the Press Release
PITTSBURGH, PA - A resident of Whitaker, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Aqui McKeithen, age 29, as the sole defendant.
According to the Indictment, on or about January 10, 2019, Aqui McKeithen possessed a firearm after having been convicted of a crime which would prohibit him from legally doing so.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 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 Douglas C. Maloney is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, as well as officers with Pennsylvania State Parole and the Whitaker Police Department conducted the investigation leading to the Indictment in this case.
This case was brought as part of 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Washington County Man Indicted on Possession of Firearms ViolationRead the Press Release
PITTSBURGH, PA - A resident of Washington County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal firearms laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Jesse R. Price, 61, of Canonsburg, Pennsylvania, as the sole defendant.
According to the Indictment, in and around September 2018, and on or about October 3, 2018, in the Western District of Pennsylvania, Price unlawfully possessed a firearm as a convicted felon. The Indictment further alleges that on or about October 12, 2018, in the Western District of Pennsylvania, Price unlawfully possessed a firearm and various ammunition as a convicted felon. Federal law prohibits felons from possessing a firearm or ammunition.
The law provides for a maximum total sentence of up to thirty years in prison, a fine of up to $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the Indictment in this case. This case was brought as part of 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wasco State Prison Correctional Officer and a Minnesota Resident Arrested for Conspiring to Traffic Cocaine and MethamphetamineRead the Press Release
BAKERSFIELD, Calif. — Leonard Velazquez-Martinez, 50, of Minnesota, and Joseph Andrade, 38, of Bakersfield, were arrested Monday for conspiring to possess with intent to distribute cocaine and methamphetamine, U.S. Attorney McGregor W. Scott announced.
At the time of his arrest, Andrade was employed as a Correctional Officer at Wasco State Prison in Wasco, California.
According to court documents, in June 2019, in Kern County, the defendants conspired to purchase approximately 40 pounds of methamphetamine and two kilograms of cocaine from an individual who defendants believed was a narcotics supplier, but who was actually an undercover law enforcement officer. On June 24, 2019, the defendants arrived at a location in Kern County to purchase the methamphetamine and cocaine from the undercover officer. Andrade was driving a vehicle registered to him, and Velazquez occupied the front passenger seat. Velazquez directed the undercover officer’s attention to a grocery bag containing money, which was on the passenger-side floorboard of the vehicle. The defendants were arrested shortly thereafter.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorney Angela Scott is prosecuting the case.
If convicted, defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. District Judge Issues Arrest Warrant for Fugitive Charged with Smuggling Counterfeit Goods into the U.S.Read the Press Release
SAN FRANCISCO – A federal arrest warrant was issued for the arrest of Lixiong Chen, also known as John Chen, a defendant in an eighteen-count superseding indictment who failed to appear at what was supposed to be the first day of a jury trial, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge (San Francisco and Northern California) Ryan L. Spradlin. The warrant was signed by the Honorable James Donato, U.S. District Judge.
On April 25, 2019, a federal grand jury returned a superseding indictment charging Chen, 45, a citizen of China, with conspiracy, trafficking in counterfeit goods, and smuggling goods into the United States. According to court documents, the government intended to prove that over the course of at least six years, the defendant illegally imported and sold small electronics, such as power adapters, that bore counterfeit trademarks. The criminal trial in Chen’s case was scheduled to begin yesterday morning. Nevertheless, on Sunday, June 23, 2019, Chen’s counsel filed a document with the Court stating, “defense counsel has just learned that Defendant Lixiong Chen will not be present for Court tomorrow morning, June 24, 2019, at 9 am.”
At a hearing held in lieu of jury selection, Chen’s lawyers confirmed they did not anticipate the defendant would be present for trial at any point. Further, attorneys for the United States informed the Court that they had received information indicating someone with Chen’s name boarded a flight to Beijing, China, that landed Sunday, June 23, 2019. At the close of the hearing, Judge Donato issued a bench warrant for the defendant’s arrest.
Documents submitted to the court in anticipation of the trial describe the case against Chen. While residing in China, Chen operated businesses, known as CBK Auto, CBK Holdings, CBK Wholesale, CBK USA, bestcompu.com, and Silicon Electronics, among other names, through employees in the United States. Chen’s various businesses sold millions of dollars in electronic goods each year through online platforms such as Amazon and eBay. The government alleges that a significant percentage of Chen’s business involved the sale of counterfeit goods. Further, the government alleges that Customs and Border Protection (CBP) agents repeatedly seized goods that violated U.S. law and could not legally be brought into the United States, but the defendant nevertheless continued to import counterfeit merchandise from China. In sum, the superseding indictment charges Chen with nine counts of smuggling goods into the United States, in violation of 18 U.S.C. § 545; eight counts of trafficking counterfeit goods, in violation of 18 U.S.C. § 2320(a), and one count of conspiracy, in violation of 18 U.S.C. § 371.
If convicted, the defendant faces the following maximum penalties:
- 18 U.S.C. § 371: 5 years of imprisonment, $250,000 fine, 3 years of supervised release, $100 special assessment, restitution.
- 18 U.S.C. § 545: 20 years of imprisonment, $250,000 fine, 3 years of supervised release, $100 special assessment, forfeiture, and restitution.
- 18 U.S.C. § 2320: 10 years of imprisonment, $2,000,000 fine, 3 years of supervised release, $100 special assessment, forfeiture, and restitution.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Following his arrest in January 2019, Chen was released by United States Magistrate Judge Kandis Westmore on a $1,000,000 bond secured by real property. He was also ordered not to travel outside of the Northern District of California, not to change residence without prior approval of Pretrial Services, and not to apply for any passports or other travel documents.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Anyone with information regarding the defendant’s whereabouts should contact Homeland Security Investigations at 1-866-347-2423. Callers outside the United States should call 802-872-6199.Assistant United States Attorneys Michelle Kane and Matthew Parrella are prosecuting this case with assistance from Rebecca Shelton, Elise Etter, and Sarah Lamparelli. The prosecution is the result of an investigation by HSI.
U.S. Attorney’s Office and DOJ’s Civil Rights Division Host Roundtable on Sexual Harassment in HousingRead the Press Release
NEWS RELEASE SUMMARY – June 25, 2019
The U.S. Attorney’s Office for the Southern District of California and the U.S. Department of Justice (DOJ) Civil Rights Division hosted a roundtable today for community organizations, U.S. Attorney Robert S. Brewer, Jr. announced. The event included local law enforcement agencies, legal aid offices, fair housing organizations, and community groups that work with individuals who use transitional housing. Each organization invited has regular contact with Southern California’s most vulnerable populations, who could also become victims of sexual harassment in housing.
“Sexual harassment in housing can be even more egregious than harassment in the workplace,” U.S. Attorney Brewer said. “Landlords and property managers cannot be permitted to use their power over housing as a weapon to extort sexual favors from tenants. We’re extremely proud to be holding a meaningful discussion with community partners about how to combat this serious problem.”
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in the housing context, and the Fair Housing Act prohibits it. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations - single mothers, women who are financially unstable, and women who have suffered sexual violence in their past. And these women often do not know where to turn for help.
The U.S. Attorney’s Office is working closely with the DOJ Civil Rights Division to ensure people are aware of options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Often it is community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers, that are in the best position to identify housing abuses and recommend that victims report sexual harassment to DOJ’s Civil Rights Division. By increasing awareness and building strong partnerships, we can better combat this problem in our community.
Each year DOJ brings cases involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. The case filed against San Diego landlord Larry Nelson earlier this month is illustrative. The lawsuit, filed in the U.S. District Court for the Southern District of California, alleges that Nelson engaged in sexual harassment and retaliation of female tenants from at least 2005 to the present, by, among other things, engaging in unwelcome sexual touching, offering to reduce monthly rental payments in exchange for sex, making unwelcome sexual comments and advances, making intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicting or threatening to evict female tenants who objected or refused his sexual advances.
The roundtable is an integral part of a DOJ initiative that seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts - both among victims and those they may report to - and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources. DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: [email protected].
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
Two Freight Transportation Executives Sentenced to Prison Terms for Price FixingRead the Press Release
Two executives were sentenced in U.S. District Court in Miami for their role in a conspiracy to fix prices of international freight forwarding services, the Department of Justice announced today. Roberto Dip and Jason Handal were charged with fixing prices in June 2018, and pleaded guilty in November 2018. A magistrate judge in Miami ordered Dip detained pending trial; he served over five months in jail before being released on bond.
Dip, the president and CEO of a Louisiana-based freight forwarding company, and Handal, the company’s manager, organized meetings throughout the United States where they reached agreements with their competitors to fix the prices for freight forwarding services provided in the United States and elsewhere from at least as early as September 2010 until at least March 2015. Dip was sentenced to 18 months’ imprisonment, with credit for time served. Handal was sentenced to 15 months’ imprisonment. Each executive was also sentenced to pay a $20,000 criminal fine and to three years of supervised release.
“These defendants’ conduct raised freight-forwarding prices by as much as 20 percent, victimizing vulnerable consumers and individuals sending gifts and household goods to family members and loved ones for holidays,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Today’s sentences reflect the significant harm that the defendants caused, and should send a message to other would-be price-fixers that this crime will not go unpunished.”
“This investigation is an example of the FBI’s commitment to investigating individuals when they operate outside the law to conspire to fix prices in the consumer marketplace,” stated Eric J. Rommal, FBI New Orleans Special Agent in Charge. “I would like to thank the investigative team and Department of Justice’s Antitrust Division prosecutors who have worked on this complex investigation and are committed to holding those accountable who disregard the rule of law for their own financial gain. The FBI will continue to work to protect consumers against all forms of fraud, deceit, and illegal activity.”
The ongoing investigation into price fixing in the international freight forwarding industry is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s New Orleans Division. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Three Day School Safety Conference for Teachers, Officers, and First Responders Begins Tuesday at UGA’s Tifton CampusRead the Press Release
MACON – A three-day conference instructing educators, law enforcement officers, and first responders on the latest threats facing our schools, and how best to respond, will begin on Tuesday, said Charles “Charlie” Peeler, the United States Attorney for the Middle District, in a joint announcement made today with Homer Bryson, the Director of the Georgia Emergency Management and Homeland Security Agency and Richard Woods, the State School Superintendent of the Georgia Department of Education. The conference will be held on June 25-27, 2019 at the UGA Tifton Campus Conference Center.
More than 500 educators, school resource officers, state and local law enforcement officers, and emergency responders are expected to receive 16 hours of training during the three-day conference. The instructors are front-line experts in their field, and will deliver rich commentary on topics including Active Shooter Response, School Bus Safety, Opioid Awareness, and Cyber-Bullying/Sexting. This is the tenth year of the “Safety in Our Schools” conference.
“It is more important than ever that our teachers and first responders are prepared to act quickly and decisively when there is a threat to the safety of students and staff,” said Charlie Peeler, the U.S. Attorney. “This training allows them to learn from experts and each other about techniques and strategies that reduce the likelihood of school tragedies and increase the effectiveness of those who respond to emergencies at our schools. We want our schools to be the safest place possible for children to learn and grow, and this important training helps facilitate that goal.”
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
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The United States Reaches Agreement with Dow Silicones Corporation to Resolve Environmental Violations at Midland Michigan Chemical Manufacturing FacilityRead the Press Release
Today, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a settlement with Dow Silicones Corporation (DSC), resolving alleged environmental violations at the company’s chemical manufacturing facility in Midland, Michigan, including alleged violations of the Clean Air Act; the Resource Conservation and Recovery Act; the Clean Water Act; the Emergency Planning and Community Right-to-Know Act; and the Comprehensive Environmental Response, Compensation and Liability Act. The alleged violations relate to excess emissions of hazardous air pollutants (HAPs) and volatile organic compounds (VOCs), unauthorized discharges of pollutants, inadequate management of hazardous waste, and untimely reporting of hazardous substance releases.
The consent decree requires DSC to undertake extensive measures that should result in estimated annual emission reductions of 218 tons of HAPs and 43.53 tons of VOCs, as well as estimated annual pollutant reductions of three tons of nitrogen and zinc. In addition, DSC will spend approximately $1.6 million on supplemental environmental projects, including lead abatement projects to protect children from lead-based paint hazards in or near Midland; donation of air monitoring equipment to local responders; and more frequent monitoring and improved repair and replacement procedures for equipment that contains HAPs. DSC will also be required to pay a penalty of $4.55 million.
“This settlement reflects our continued commitment to hold people accountable for violating the nation’s environmental laws,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Environment and Natural Resources Division. “The Justice Department is pleased to have worked with our partners at EPA to secure this result, which means improved air and water quality for the people and communities of eastern Michigan.”
“Michigan companies that manufacture, process, and handle dangerous chemicals and substances have a legal and ethical responsibility to ensure that their activities do not pollute our air, our waters, or our ground,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. “The United States appreciates the fact that, under this settlement, Dow Silicones Corporation recognizes its responsibilities to both honor federal law and protect the environment.”
“Today’s settlement is one example of how EPA is committed to reducing exposure to hazardous air pollutants and other contaminants in communities across the country,” said EPA Region 5 Administrator Cathy Stepp.
The primary violations alleged in the United States’ complaint consist of DSC’s failure to monitor and repair VOC leaks from thousands of components and properly operate the facility’s thermal oxidizer, which is the facility’s primary HAPs control device, thereby resulting in excess emissions of HAPs; the failure to identify and characterize hazardous waste streams; and the failure to properly manage and monitor stormwater at the facility. Excess emissions of HAPs increase the possibility of exposure to pollutants that are known or expected to cause cancer or other serious health effects, as well as adverse environmental conditions. These health effects can include damage to the immune system, as well as neurological, reproductive (e.g., reduced fertility), developmental, respiratory, and other health problems. Additionally, the failure to properly manage and monitor stormwater may have led to the discharge of pollutants, such as hydrochloric acid, benzene, arsenic and heavy metals, harmful to aquatic species in the Lingle Drain and the Tittabawassee River.
The settlement also requires DSC to: implement a revised benzene sampling plan, a comprehensive leak detection and repair program for equipment, and a compliance plan to remedy all Clean Air Act violations identified through a voluntary audit performed by DSC; implement specified measures to control vent streams that contain HAPs and improve the operation of air pollution control equipment; identify and characterize all hazardous waste streams; implement adequate secondary containment for tanks; evaluate and improve the management and monitoring of stormwater at the facility and update the facility’s Stormwater Pollution Prevention Plan; and implement a revised hazardous substance release reporting policy and training procedures.
The consent decree, lodged in the U.S. District Court for the Eastern District of Michigan, is subject to a 30-day public comment period and approval by the federal court. It is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.
Texas Woman Pleads Guilty to Possessing Marijuana at Henry E. Rohlsen AirportRead the Press Release
St. Croix, USVI – Kieantia Thomas-Okeke, 38, of Dallas, Texas, pled guilty on June 24, 2019, in District Court to one federal count of Possession of Marijuana with Intent to Distribute, United States Attorney Gretchen C.F. Shappert announced.
This offense carries a possible sentence of incarceration of up to 5 years, a maximum fine of up to $250,000 dollars, and a term of supervised release of at least 2 years. Sentencing is set for October 23, 2019.
According to court documents, on March 5, 2018, a Customs and Border Protection (CBP) canine alerted on Thomas-Okeke after she exited inbound American Airlines flight #2317 from Miami, Florida, at the Henry E. Rohlsen airport in St. Croix. The defendant was then handcuffed and escorted to the designated secondary inspection room. There CBP officers searched the defendant along with her carry-on suitcase. Inside the carry-on suitcase, a green leafy substance inside plastic wrapped brick shaped packages was discovered along with stacks of cash. The substance field-tested positive for marijuana. The marijuana weighed 9.11 kilograms and the confiscated currency totaled $39,980. Travel records for the defendant showed that she was traveling from Dallas, TX, with a layover in Miami and had planned to return to Dallas, TX, the next day. When asked about her compensation for traveling to St. Croix with the drugs and cash, the defendant advised that her flight to St. Croix was paid for and she was going to receive $1,500 when she returned to Dallas, TX.
The case was investigated by Customs and Border Protection and Homeland Security Investigations. The DEA Southeast Laboratory in Miami analyzed the marijuana. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Technipfmc PLC and U.S.-Based Subsidiary Agree to Pay over $296 Million in Global Criminal Fines to Resolve Foreign Bribery CaseRead the Press Release
TechnipFMC plc (TFMC), a publicly traded company in the United States and a global provider of oil and gas services, and its wholly-owned U.S. subsidiary, Technip USA, Inc. (Technip USA), have agreed to pay a combined total criminal fine of more than $296 million to resolve foreign bribery charges brought by law enforcement authorities in the United States and Brazil. TFMC is the product of a 2017 merger between two predecessor companies, Technip S.A. (Technip) and FMC Technologies, Inc. (FMC). The charges arose from two independent bribery schemes: a scheme by Technip to pay bribes to Brazilian officials, and a scheme by FMC to pay bribes to Iraqi officials. In addition, Technip’s former consultant, Zwi Skornicki, pleaded guilty today in connection with the resolution. In 2010, Technip entered into a $240 million resolution with the Department of Justice over bribes paid in Nigeria. Today’s proceedings took place in federal court in Brooklyn before United States District Judge Kiyo A. Matsumoto.
Richard P. Donoghue, United States Attorney for the Eastern District of New York (EDNY), Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Robert Johnson, Assistant Director, Federal Bureau of Investigation, Criminal Investigative Division (FBI) and Charles A. Dayoub, Acting Special Agent-in-Charge, FBI, Washington Field Office Criminal Division, made the announcement.
“Today’s resolutions are the result of a continuing multinational effort to hold accountable corporations and individuals who seek to win business through corrupt payments to foreign officials, and who attempt to use the U.S. financial system to carry out those crimes,” said U.S. Attorney Donoghue. “We will continue to prioritize identifying and bringing to justice those who would corrupt the legitimate functions of government for personal financial gain.”
“The conduct admitted to in today’s resolutions was egregious, lasting for years and putting millions into the hands of corrupt officials,” said Assistant Attorney General Benczkowski. “The message sent by this prosecution is that the United States, working with its law enforcement partners abroad, will not hesitate to hold responsible those corporations and individuals who seek to enrich themselves through corruption.”
“Today’s charges demonstrate not only the capabilities of the FBI personnel who investigate international corruption, but the successful results of strong partnerships in the international community,” said Assistant Director Johnson. “In attempting to cheat the system, Technip violated the FCPA. Through the collaboration and dedicated efforts of the FBI and our foreign partners, Technip is being held accountable for perpetrating illegal schemes and justice is served.”
“This case shows the FBI will continue to work tirelessly to hold those accountable who treat corruption and bribery as a common business practice,” said FBI Acting Special Agent-in-Charge Dayoub. “Today’s agreement is the culmination of the hard work of the FBI and Department of Justice and our international partners.”
TFMC entered into a deferred prosecution agreement with the DOJ in connection with a criminal information filed today in the EDNY charging the company with two counts of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). In addition, Technip USA pleaded guilty and was sentenced on a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the DOJ, TFMC will pay a total criminal fine of over $296 million. As part of the deferred prosecution agreement, TFMC committed to implementing rigorous internal controls and to cooperating fully with the DOJ’s ongoing investigation.
In connection with his role in the scheme to bribe Brazilian officials, Skornicki pleaded guilty in the EDNY to a one-count criminal information charging him with conspiracy to violate the FCPA. He is awaiting sentencing.
In related proceedings, TFMC settled with the Advogado-Geral da União (AGU), the Controladoria-Geral da União (CGU) and the Ministério Público Federal (MPF) in Brazil over bribes paid there. The United States will credit the amount the company pays to the Brazilian authorities under their respective agreements, with TFMC paying Brazil approximately $214 million in penalties.
According to admissions and court documents, beginning as early as 2003 and continuing until at least 2013, Technip conspired with others, including Singapore-based Keppel Offshore & Marine Ltd. (KOM), an attorney for KOM, and Skornicki, who served as a consultant to both Technip and KOM, to violate the FCPA by making more than $69 million in corrupt payments to companies associated with Skornicki. Skornicki passed along portions of these payments as bribes to officials at the Brazilian state-owned oil company, Petrobras, to win lucrative contracts. In addition, Technip made more than $5 million in corrupt payments directly to the Workers’ Party in Brazil and Workers’ Party officials in furtherance of the bribery scheme.
The admissions and court documents also establish that beginning as early as 2008 and continuing until at least 2013, FMC conspired to violate the FCPA by paying bribes to at least seven government officials in Iraq, including at the Ministry of Oil, the South Oil Company and the Missan Oil Company, through a Monaco-based intermediary company, to win valuable projects in Iraq.
In the resolutions, TFMC received credit for its substantial cooperation with the DOJ’s investigation and for taking extensive remedial measures. For example, the company separated from, or took disciplinary action against, former and current employees in relation to the misconduct described in the statement of facts to which it admitted as part of the resolution; made changes to its business operations in Brazil to no longer retain commercial consultants; required that certain employees and third parties undergo additional compliance training; and made specific enhancements to the company’s internal controls and compliance program. Accordingly, the criminal fine reflects a 25 percent reduction from the applicable U.S. Sentencing Guidelines fine for the company’s full cooperation and remediation.
In a related enforcement action, in December of 2017, KOM and its U.S. subsidiary, Keppel Offshore & Marine USA, Inc., agreed to pay a combined total criminal fine of more than $422 million to resolve charges with law enforcement authorities in the United States, Brazil and Singapore on related conduct. A former senior member of KOM’s legal department also pleaded guilty in the EDNYand is awaiting sentencing.
The case is being investigated by the FBI’s International Corruption Squad in Washington, D.C. Assistant United States Attorneys Alixandra Smith and Patrick Hein of the Business and Securities Fraud Section of the Eastern District of New York, and Trial Attorneys Dennis R. Kihm, Derek J. Ettinger and Gerald M. Moody, Jr. of the Criminal Division’s Fraud Section, are prosecuting the case.
The governments of Brazil, the United Kingdom, Monaco, Italy, Australia, France and Switzerland provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.
The Defendants:
TechnipFMC PLC
TECHNIP USA, INC
ZWI SKORNICKI
Age: 69
Country of Origin: BrazilTechnipFMC Plc and U.S.-Based Subsidiary Agree to Pay over $296 Million in Global Penalties to Resolve Foreign Bribery CaseRead the Press Release
TechnipFMC plc (TFMC), a publicly traded company in the United States and a global provider of oil and gas services, and its wholly-owned U.S. subsidiary, Technip USA, Inc. (Technip USA), have agreed to pay a combined total criminal fine of more than $296 million to resolve foreign bribery charges with authorities in the United States and Brazil. TFMC is the product of a 2017 merger between two predecessor companies, Technip S.A. (Technip) and FMC Technologies, Inc. (FMC). The charges arose out of two independent bribery schemes: a scheme by Technip to pay bribes to Brazilian officials and a scheme by FMC to pay bribes to officials in Iraq. Technip USA and Technip’s former consultant pleaded guilty today in connection with the resolution. In 2010, Technip entered into a $240 million resolution with the Department over bribes paid in Nigeria.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Acting Special Agent in Charge Charles A. Dayoub of the FBI’s Washington Field Office Criminal Division made the announcement.
“Today’s resolution takes aim at the scourge of bribery, but does so in a fair and evenhanded way,” said Assistant Attorney General Benczkowski. “It is a testament to the strength and effectiveness of international coordination in the fight against corruption, but also an acknowledgement that the Department is fully committed to reaching fair and just resolutions with companies that fully cooperate and remediate.”
“Today’s resolutions are the result of a continuing multinational effort to hold accountable corporations and individuals who seek to win business through corrupt payments to foreign officials, and who attempt to use the U.S. financial system to carry out those crimes,” said U.S. Attorney Donoghue. “We will continue to prioritize identifying and bringing to justice those who would corrupt the legitimate functions of government for personal financial gain.”
“Today’s charges demonstrate not only the capabilities of the FBI personnel who investigate international corruption, but the successful results of strong partnerships in the international community,” said Assistant Director Johnson. “In attempting to cheat the system, Technip violated the FCPA. Through the collaboration and dedicated efforts of the FBI and our foreign partners, Technip is being held accountable for perpetrating illegal schemes and justice is served.”
“This case shows the FBI will continue to work tirelessly to hold those accountable who treat corruption and bribery as a common business practice,” said Acting Special Agent in Charge Dayoub. “Today's agreement is the culmination of the hard work of the FBI and Department of Justice and our international partners.”
TFMC entered into a deferred prosecution agreement with the Department in connection with a criminal information filed today in the Eastern District of New York charging the company with two counts of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). In addition, Technip USA pleaded guilty and was sentenced on a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the Department, TechnipFMC will pay a total criminal fine of over $296 million, including a $500,000 criminal fine paid by Technip USA. As part of the deferred prosecution agreement, TechnipFMC committed to implementing rigorous internal controls and to cooperate fully with the Department’s ongoing investigation.
In connection with the scheme to bribe Brazilian officials, Technip’s former consultant also pleaded guilty in the Eastern District of New York to a one-count criminal information charging him with conspiracy to violate the FCPA. He is awaiting sentencing.
All three cases are assigned to U.S. District Judge Kiyo A. Matsumoto of the Eastern District of New York.
In related proceedings, the company settled with the Advogado-Geral da União (AGU), the Controladoria-Geral da União (CGU) and the Ministério Público Federal (MPF) in Brazil over bribes paid in Brazil. The United States will credit the amount the company pays to the Brazilian authorities under their respective agreements, with TechnipFMC paying Brazil approximately $214 million in penalties.
According to admissions and court documents, beginning in at least 2003 and continuing until at least 2013, Technip conspired with others, including Singapore-based Keppel Offshore & Marine Ltd. (KOM) and their former consultant, to violate the FCPA by making more than $69 million in corrupt payments and “commission payments” to the consultant, companies associated with the consultant and others, who passed along portions of these payments as bribes to Brazialin government officials who were employees at the Brazilian state-owned oil company, Petrobras, in order to secure improper business advantages and obtaining and retaining business with Petrobas for Technip, Technip USA and Joint Venture. In addition, Technip made more than $6 million in corrupt payments to the Workers’ Party in Brazil and Workers’ party officials in furtherance of the bribery scheme.
The admissions and court documents also establish that beginning by at least 2008 and continuing until at least 2013, FMC conspired to violate the FCPA by paying bribes to at least seven government officials in Iraq, including officials at the Ministry of Oil, the South Oil Company and the Missan Oil Company, through a Monaco-based intermediary company in order to win secure improper business advantages and to influence those foreign officials to obtain and retain business for FMC Technologies in Iraq.
In the resolutions with the Department, TFMC received credit for its substantial cooperation with the Department’s investigation and for taking extensive remedial measures. For example, the company separated from or took disciplinary action against former and current employees in relation to the misconduct described in the statement of facts to which it admitted as part of the resolution; made changes to its business operations in Brazil to no longer participate in the type of work where the misconduct at issue arose; required that certain employees and third parties undergo additional compliance training; and made specific enhancements to the company’s internal controls and compliance program. Accordingly, the criminal fine reflects a 25 percent reduction off the applicable U.S. Sentencing Guidelines fine for the company’s full cooperation and remediation.
In a related enforcement action, in December of 2017, KOM and its U.S. subsidiary, Keppel Offshore & Marine USA, Inc., agreed to pay a combined total criminal fine of more than $422 million to resolve charges with authorities in the United States, Brazil and Singapore on related conduct. A former senior member of KOM’s legal department also pleaded guilty and is awaiting sentencing.
The case is being investigated by the FBI’s Washington Field Office International Corruption Squad. Trial Attorneys Dennis R. Kihm, Derek J. Ettinger and Gerald M. Moody, Jr. of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys Alixandra Smith and Patrick Hein of the Eastern District of New York, are prosecuting the case.
The governments of Australia, Brazil, France, Guernsey, Italy, Monaco and the United Kingdom provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.
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.
Superseding Indictment Means 48 Defendants Now Charged in Multi-State Drug Smuggling Prison RingRead the Press Release
PITTSBURGH, PA – A federal grand jury returned a Superseding Indictment charging 48 defendants, many of whom are serving federal prison sentences or were recently released from federal prison sentences, with committing drug trafficking, money laundering, and firearm crimes and with engaging in interstate travel and transmissions in aid of racketeering, United States Attorney Scott W. Brady announced today.
The 10-count Superseding Indictment, returned on June 18 and unsealed on June 21, adds 21 defendants and two counts to a 27-defendant, eight-count Indictment that was returned in January 2019. The Superseding Indictment charges 46 defendants in Count 1 with conspiring from January 2017 to January 2019 to distribute Schedule I, II, and III controlled substances, including 5 kilograms or more of cocaine, 1 kilogram or more of heroin, 400 grams or more of fentanyl, a quantity of para-fluoroisobutyryl fentanyl, a quantity of carfentanil, a quantity of oxycodone, a quantity of 5F-ADB, a quantity of FUB–AMB, a quantity of ADB-CHMINACA, a quantity of 4-CN-CUMYL-BUTINACA, a quantity of MMB-CHMICA, and a quantity of buprenorphine.
The 46 defendants charged in Count 1 are:
- Noah Landfried, Moon Township
- Mario Allen, USP-Lee, Virginia
- Larry Benavides, Clinton County Jail, Pennsylvania
- Dashawn Burley, Monroeville
- Michel Cercone, Sewickley
- Ahmad Fletcher, FCI-Gilmer, West Virginia
- Michael S. Frawley, Pittsburgh
- Christopher Gahagan, Ambridge
- Richard Georgelos, Santa Cruz, Arizona
- Nicholas Giammichele, FCI-Danbury, Connecticut
- Robert Korbe, FCI-Loretto, Pennsylvania
- Ross Landfried, USP-Lee, Virginia
- Sterling Marshall, USP-Lee, Virginia
- Darren Martin, Aliquippa
- Harold Novick, Ambridge
- Paul Nuara, Erie
- Omari Patton, FCI-Fort Dix, New Jersey
- James Perry, Ambridge
- John Ramsey, FCI-Ray Brook, New York
- Donnell Steward, FCI-Otisville, New York
- Quoc Boa Trinh, FCI-Otisville, New York
- Terrell Williams, Pittsburgh
- Richard Wood, Pittsburgh
- Shayla Yates, Dinwiddie, Virginia
- Krystian Zarate, Santa Cruz, Arizona
- Shamar Banks, FCI-Hazelton, West Virginia
- Nicole Bracey, Waldorf, Maryland
- Richard Bracey, FCI-Lee in Virginia
- David Curran, FCI-Berlin, New Hampshire
- William Fielder, FCI-Hazelton, West Virginia
- Darwin Good, FCI-McKean, Pennsylvania
- Eugene Hall, West Mifflin
- Dorianne Harris, Homestead
- Andrea Hopes, Pittsburgh
- Thomas Hopes, FCI-Elkton, Ohio
- Richard Jasek, West Mifflin
- Seth Lindsey, Verona
- Brandon Massie, FCI-Schuylkill, Pennsylvania
- Lamar Middleton, USP-Big Sandy, Kentucky
- Dana Penney, Beaver County Jail
- Diassandai Serrano, North Versailles
- Anthony Smith, McKeesport
- Christian Stevens, Allegheny County Jail
- Christopher Threet, RRM Detroit, Michigan
- Paris Wilson, FCI-Sandstone, Minnesota, and
- Sandra Wilson, McKees Rocks.
The Superseding Indictment charges 17 defendants in Count 2 with conspiring to launder drug trafficking proceeds from January 2017 to January 2019. The 17 defendants charged in Count 2 are Noah Landfried, Allen, Benavides, Cercone, Fletcher, Korbe, Ross Landfried, Marshall, Perry, Steward, Yates, Nicole Bracey, Richard Bracey, Andrea Hopes, Thomas Hopes, Middleton, and Threet.
The Superseding Indictment charges Angelo Williams (FCI-Cumberland in Maryland) and Priyanka Kumar (of Potomac, Maryland) in Count 3 with engaging in interstate travel and transmissions in aid of racketeering from January 2017 to January 2019.
Counts 4, 6, and 7 of the Superseding Indictment charge Gahagan with distributing cocaine in September 2017, January 2018, and April 2018. Count 5 charges Benavides with possessing para-fluoroisobutyryl fentanyl and 5F-ADB with intent to distribute in November 2017. Count 8 charges Noah Landfried with possessing with intent to distribute and distributing 40 grams or more of fentanyl and heroin in June 2018.
The Superseding Indictment adds Counts 9 and 10. Count 9 charges Penney with possessing fentanyl, heroin, and cocaine in June 2018. Count 10 charges Penney with possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime in July 2018.
The Superseding Indictment seeks forfeiture of the proceeds of the crimes as well as property that was acquired with the proceeds or was used to commit the crimes.
The law provides for minimum and maximum sentences for the counts in the Superseding Indictment ranging from at least 10 years to up to life in prison for Counts 1 and 10, up to 20 years for Count 2, up to 5 years for Count 3, up to 20 years for each of Counts 4 through 7 and 9, and from at least 5 years to up to 40 years for Count 8. Fines ranging from $250,000 to up to $20,000,000 may also be imposed. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Bureau of Police, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Summersville Man Sentenced to Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Jeffrey Alan Kummer, 30, of Summersville, was sentenced to 18 months in prison for possessing two sawed-off firearms. Stuart commended the efforts of the Summersville Police Department, the Nicholas County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
“In order to protect our Second Amendment rights, we must strictly enforce federal firearms laws,” said United States Attorney Mike Stuart. “Gun owners need to be responsible and follow the letter and spirit of our gun laws.”
On March 24, 2018, a Summersville Police Officer and a Nicholas County Deputy Sheriff responded to a domestic violence complaint at Kummer’s Hughart Lane residence in Summersville. Kummer was also wanted on a capias issued by the Kanawha County Circuit Court. The officers entered the residence and encountered Kummer in the bedroom with two sawed-off firearms, a .20 gauge shotgun and a .22 caliber rifle. The shotgun had been reported stolen from a federally licensed firearms dealer in January 2018. Kummer told police that the shotgun had been sawed-off prior to his having purchased it several months earlier. He admitted cutting the .22 rifle himself. Short barreled rifles and shotguns are illegal to possess unless they are registered in the National Firearms Registration and Transfer record. Neither firearm had been registered. Kummer pled guilty in March 2019.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Stockton Man Sentenced to over 6 Years in Prison for Unemployment Benefits Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — John Michael Herron II, 38, of Stockton, was sentenced today by U.S. District Judge John A. Mendez to six years and three months in prison for conspiracy to commit mail fraud and identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, from at least December 2014 through January 2018, Herron participated in a scheme to defraud the State of California Employment Development Department (EDD) by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, Herron and his co-defendant, Robert Maher, formerly of Stockton, created fictitious companies and fictitious employees (by using the real identities of persons with and without their knowledge), and filed claims with EDD, falsely stating that the employees had been laid off or fired. The unemployment benefits were deposited onto debit cards that were mailed to addresses controlled by Herron, Maher, or their associates. ATM cameras captured Herron withdrawing unemployment benefit funds using a debit card registered to an identity theft victim. Herron was connected to approximately $578,185 in fraudulent claims to EDD, of which approximately $485,685 was paid out by EDD.
“John Michael Herron II conspired with his co-defendant to defraud EDD by filing for unemployment insurance benefits in the names of identity theft victims who were not entitled to such benefits. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs,” said Abel Salinas, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
“Today’s sentencing sends a clear message that fraud will not be tolerated,” said EDD Director Patrick W. Henning. “EDD proudly works alongside our law enforcement partners to safeguard these vital public benefits and pursue aggressive action against fraud whenever possible.”
This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
The charges against Maher are pending. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Schenectady Man Sentenced to 15 Years for Gun and Drug CrimesRead the Press Release
ALBANY, NEW YORK – James Haskins, age 43, of Schenectady, New York, was sentenced on Friday, June 21 to 15 years in prison for possessing and intending to distribute crack cocaine, and for possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge John B. DeVito of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
In pleading guilty, Haskins admitted that on April 11, 2018, he possessed 152 grams of crack cocaine and a .380 caliber pistol and ammunition in Schenectady. He further admitted that he intended to distribute the crack cocaine to others in exchange for cash, and he possessed the firearm to protect his crack and drug proceeds from potential robbers.
Senior United States District Judge Norman A. Mordue sentenced Haskins to 10 years in prison on the drug charge and 5 years in prison on the firearm charge, to be run consecutively. He also sentenced Haskins to 5 years of supervised release to begin following his term of imprisonment.
This case was investigated by the ATF and Schenectady County Sherriff’s Office, and was prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
Schenectady Man Pleads Guilty to Conspiring to Distribute HeroinRead the Press Release
ALBANY, NEW YORK – Jose Cortes-Cruz, aka “Bimbo,” age 28, of Schenectady, New York, pled guilty today to conspiring to possess with intent to distribute and to distribute heroin.
The announcement was made by United States Attorney Grant C. Jaquith; Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and New York State Police Superintendent Keith M. Corlett.
In pleading guilty, Cortes-Cruz admitted to being a member of a drug trafficking organization that distributed heroin in Schenectady between 2017 and December 20, 2018. As a member of the organization, the defendant picked up heroin and delivered thousands of dollars in cash as payment. The heroin was then sold in and around Schenectady.
Cotes-Cruz faces up to 20 years in prison, a term of supervised release of at least 3 years and up to life, and a maximum fine of $1 million. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Cortez-Cruz was charged with eight other defendants in an indictment alleging a conspiracy to distribute heroin in Schenectady. Four of Cortes-Cruz’s co-defendants, Leamzy Soto Calderon, aka “Lee,” aka “Gordo,” Linette Marie Soto, Kristen Jansen, and Gregory Insogna, have pled guilty. Co-defendants Jean Carlos Rivera-Perez, aka, “Tego,” Esteban Ressy, aka “The Boss,” and Patrick McNamara are pending trial. The final defendant, Daniel Garcia, aka “Danny,” is at large. The charges in the indictment are merely accusations. Rivera-Perez, Ressy, Garcia and McNamara, are presumed innocent unless and until proven guilty.
This case is being investigated by HSI, the New York State Police, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Saratoga County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Kyle Caton, age 31, of Saratoga County, New York, pled guilty today to receiving child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.
In pleading guilty, Caton admitted that between 2018 and February 25, 2019, he downloaded child pornography from the internet. At the time of his arrest, Caton’s computer contained at least 454 images and 50 videos of child pornography. Some of these images depicted the abuse of very young children, including at least one toddler.
Sentencing has been set for November 3, 2019 in Albany before Senior United States District Judge Thomas J. McAvoy. Caton faces at least 5 years and up to 20 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI and is being prosecuted by Assistant U.S. Attorney Shira C. Hoffman, as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
San Antonio Man Sentenced to 76 Months in Federal Prison for Wire Fraud and Tax EvasionRead the Press Release
In San Antonio today, a federal judge sentenced 55-year-old Ryan Glenn Martinez to 76 months in federal prison for embezzling over $800,000 from his employer and his failure to pay the IRS over $300,000, announced U.S. Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.
In addition to the prison term, Senior U.S. District Judge Fred Biery ordered that Martinez pay $813,822.91 in restitution to his fraud victims as well as $305,247 in restitution to the IRS for the tax offense.
On October 3, 2018, Martinez pleaded guilty to one count of wire fraud and one count of making and filing a false income tax return. According to court documents, from January 2012 until May 2014, the defendant was the Controller of San Antonio company called Southern Folger Detention Equipment Company, LLC (a subsidiary of Phelps Tointon, Inc.) that manufactured and marketed detention equipment and electronics for correctional facilities. By pleading guilty, Martinez admitted that he embezzled funds from Southern Folger by stealing checks issued in payment of Southern Folger accounts; stealing checks and money orders from customer payments of Southern Folger products; stealing checks issued by health care insurers to Southern Folger; and, submitting fraudulent vendor invoices to Southern Folger for payment on scrap material purchases, then pocketing the Southern-Folger-paid-money. Martinez further admitted to making false and fraudulent entries in the books of Southern Folger and Phelps Tointon to cover up his scheme. Following his guilty plea, Martinez was remanded to the custody of the U.S. Marshals Service. He has since remained in federal custody.
Martinez also admitted that he underreported to the IRS his income and income tax due for calendar years 2010, 2011, 2012, 2013, and 2014.
IRS-Criminal Investigation special agents investigated this case. Assistant U.S. Attorney William F. Lewis, Jr., prosecuted this case on behalf of the Government.
Salvadoran National Pleads Guilty to Passport FraudRead the Press Release
BOSTON – A Salvadoran national pleaded guilty in federal court in Worcester yesterday to passport fraud.
Neemias Pacheco-Santamaria, 33, a Salvadoran national residing in Worcester, pleaded guilty to one count of passport fraud. U.S. District Court Judge Timothy S. Hillman deferred acceptance of the plea until sentencing, which is scheduled for Sept. 16, 2019. Pacheco-Santamaria was arrested and charged in February 2019 and has been detained since.
In July 2018, Pacheco-Santamaria entered a Worcester Post Office and falsely used the name, date of birth, and Social Security number of a United States citizen from Puerto Rico to apply for a United States Passport.
The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Pacheco-Santamaria will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement. Assistant U.S. Attorney Kristen M. Noto of Lelling’s Worcester Branch Office is prosecuting the case.
Saco Man Sentenced to 27 Months for Selling an Unregistered Explosive DeviceRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Michael Rickett, 23, of Saco, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 27 months in prison and three years of supervised release for selling an unregistered destructive device. Rickett pled guilty to the charge on February 21, 2019.
According to the government’s evidence, on July 10, 2017, concerned citizens reported to the Saco Police Department that Rickett asked them to purchase an explosive device. The next day, a federal agent, acting in an undercover capacity, called Rickett. Rickett offered to sell a “military grade IED” to the agent for $350. Two days later, the agent purchased a homemade explosive device from Rickett. A forensic laboratory examination confirmed that the device was an explosive bomb.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine Drug Enforcement Agency; and the Portland and Saco Police Departments.
Rapid City Woman Sentenced for Defrauding the Rapid City Club for BoysRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Wire Fraud, Money Laundering, and Tax Evasion was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Olivia Kuehner, age 49, was sentenced on June 19, 2019, to 41 months in federal prison, followed by 1 year of supervised release, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund. In addition, she was ordered to pay $160,380.16 in restitution to the Rapid City Club for Boys, $20,481.71 in restitution to Collins Siding, and $54,298.00 in restitution to the Internal Revenue Service.
The conviction stems from Kuehner, while employed as the accounting manager for the Rapid City Club for Boys, Inc. (“Club for Boys”), devising a scheme to defraud the organization between September 2012 and June 2017. Kuehner embezzled money belonging to the Club for Boys by making fraudulent payments to herself, family members, and a nominee entity she controlled, and then omitted the fraudulent payments from the Club for Boys’ accounting records, or misclassified the payments to make it appear vendors or other employees had been paid. After receiving the fraudulently obtained funds, Kuehner transferred a portion of the funds to other bank accounts she controlled in order to conceal the nature, source, and ownership of the embezzled proceeds.
Kuehner also prepared and filed a False Form W-2 with the IRS that understated her income and overstated her federal income tax withholding. Kuehner then prepared and filed a False Form 1040A which matched the False Form W-2.
In addition to her embezzlement at the Club For Boys, Kuehner also stole more than $20,000 from Collins Siding, where she was employed after she left the Club for Boys.
The investigation was conducted by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Kuehner was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Unlawful Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Jaime Walking Bull, age 38, was charged on May 21, 2019. Walking Bull appeared before U.S. Magistrate Judge Daneta Wollmann on June 6, 2019, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Walking Bull, a previously convicted felon who is prohibited from possessing firearms, unlawfully being in possession of a semi-automatic pistol in April 2019 at Rapid City. The charge is merely an accusation and Walking Bull is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Walking Bull was detained pending trial. A trial date has not been set.
Randolph Gang Member Sentenced for Dealing FentanylRead the Press Release
BOSTON – A Randolph man was sentenced yesterday in federal court in Boston for distributing fentanyl.
Giovany Fouyolle, 24, was sentenced by U.S. District Court Judge William G. Young to 75 months in prison, four years of supervised release, during which time Fouyolle is prohibited from being in contact with gang members and associates, and ordered to pay forfeiture of $10,500. In March 2019, Fouyolle pleaded guilty to distribution of more than 40 grams of fentanyl.
This case was part of Operation Cut the Kings. During the investigation, an undercover federal agent purchased fentanyl from Fouyolle in Stoughton in July 2018. The investigation revealed that Fouyolle was a founder and leader of the No Fear Ones street gang in Randolph.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Randolph Police Chief William Pace; Stoughton Police Chief Donna M. McNamara; and Canton Police Chief Kenneth Berkowitz, made the announcement today. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Raleigh Man Sentenced for Firearms OffenseRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge Louise W. Flanagan sentenced TIMOTHY TYRONE HORTON, 37, of Raleigh, North Carolina to 87 months’ imprisonment, followed by 3 years of supervised release.
Horton was named in an Indictment filed on August 28, 2018, charging him with felon in possession of a firearm. On November 13, 2018, HORTON pled guilty.
On March 12, 2018, Raleigh Police Department officers arrested HORTON on an outstanding warrant. During the arrest, they found a firearm in HORTON’s waistband. HORTON was previously convicted federally of being a felon in possession of a firearm in 2009.
Investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
President of Modesto Hells Angels Chapter Among Four Defendants Charged in Drug ConspiracyRead the Press Release
FRESNO, Calif. — A criminal complaint was unsealed today against four individuals, including the president of the Modesto Hells Angels Motorcycle Club, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
Charged in the criminal complaint are Modesto residents Randy Picchi, 61, president of the club; his wife Tina Picchi, 51; Michael Mize, 61; and Michael Pack, 32, a prospect with the club. Randy Picchi, Tina Picci, and Mize were arrested today and are in custody. They will appear in federal court on Wednesday in Fresno.
According to court documents, Randy Picchi led a drug conspiracy and directed Tina Picchi to regularly deliver drugs to Mize and other individuals in Ceres. Randy Picchi also enlisted Pack to help obtain methamphetamine on at least one occasion. Pack was stopped by law enforcement and found to have 499 grams of methamphetamine in his possession.
On another occasion, Randy Picchi directed Tina Picchi to drive from Modesto to Redding to deliver methamphetamine to a customer. On the way, Tina Picchi was stopped by law enforcement and found with approximately 4 ounces of methamphetamine, which she had wrapped in a plastic glove and hidden in a cup of soda.
As part of the investigation, officers executed search warrants on Tuesday in seven locations in Stanislaus County, including the clubhouse of the Hells Angels Motorcycle Club in Modesto.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS Criminal Investigation, the Central Valley Gang Impact Task Force, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of life in prison, a mandatory minimum 10 years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Portland Man Pleads Guilty to Cyberstalking and Anonymous Telephone HarassmentRead the Press Release
PORTLAND, Ore.—On June 24, 2019, Bob Ibenne Ugwa, 50, of Portland, pleaded guilty to cyberstalking and anonymous telecommunications harassment after making repeated threatening and harassing telephone calls to seven individuals over an eight-year period.
According to court documents, between 2011 and 2018, Ugwa made thousands of anonymous, interstate telephone calls from Oregon to seven victims in Pennsylvania. In these calls, Ugwa threatened or harassed each victim by breathing heavily, moaning, and saying sexually explicit things. Telephone records were used to confirm Ugwa’s threatening calls. Each of the victims made multiple unsuccessful attempts to stop Ugwa from calling, citing substantial emotional distress.
Ugwa faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on September 10, 2019 before U.S. District Court Judge Michael W. Mosman.
This case was investigated by the FBI and is being prosecuted by Hannah Horsley, Assistant U.S. Attorney for the District of Oregon.
Pittsburgh Man Indicted for Robbing Castle Shannon Dollar BankRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney Scott W. Brady announced today.
The one-count Indictment names Deontre Simpson, 23, as the sole defendant.
According to the Indictment, on or about April 29, 2019, Simpson robbed the Dollar Bank located at 400 Mount Lebanon Boulevard, Castle Shannon, Pennsylvania 15234, of approximately $4,661.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, 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 Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County Police Department, the Mount Lebanon Police Department, and the Castle Shannon Police Department 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.
People from Akron, Garfield Heights and Cleveland indicted for firearms crimesRead the Press Release
Three people were indicted in federal court for firearms violations.
Indicted are: Jaquar Keyshore Latimer, 42, of Akron; Alfred Werman, 27, of Garfield Heights, and Brittney N. McTier, 31, of Cleveland.
Latimer is charged with being a felon in possession of a firearm and possession with intent to distribute cocaine. He allegedly possessed cocaine on February 9, 2018, as well as a Sig Sauer 9 mm handgun, a Dan Wesson .357-caliber revolver and a Browning Arms .380-caliber semiautomatic handgun, despite previous convictions for sexual battery, aggravated assault, drug possession and being a felon in possession of a firearm, according to the indictment.
Werman is charged with being a felon in possession of a firearm. He allegedly possessed a Sig Sauer .40-caliber pistol and 45 rounds of ammunition on May 20, 2019, despite a previous conviction for burglary, according to the indictment.
McTier charged with being a felon in possession of ammunition. McTier allegedly possessed two rounds of 9 mm ammunition despite a previous conviction for bank fraud, according to the indictment.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cleveland Division of Police (McTier). They are being prosecuted by Assistant U.S. Attorneys Margaret Kane, Brendan O’Shea and Scott Zarzycki.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pascagoula Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – Develon Lashonie Cunningham, 42, of Pascagoula, pled guilty yesterday before U.S. District Judge Sul Ozerden to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
Cunningham sold a total of two ounces of methamphetamine “ice” to a confidential informant on two separate occasions. The purchases were made in Jackson County.
Cunningham will be sentenced on September 30, 2019 at 9:00 a.m. by Judge Ozerden, and faces a maximum penalty of 20 years in prison and a $1,000,000 fine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Oakland Building Project Consultant Sentenced to 12 Months in Prison for Conspiracy and Receiving BribesRead the Press Release
SAN FRANCISCO – Taj Armon Reid was sentenced to 12 months in prison for conspiracy and receiving bribes, announced United States Attorney David L. Anderson; Federal Bureau of Investigation Special Agent in Charge John F. Bennett; and Department of Energy Office of the Inspector General, Inspector General Teri L. Donaldson. The sentence was handed down today by the Honorable Charles R. Breyer, U.S. District Court Judge.
After a four-day jury trial, a federal jury found Reid, 48, of Oakland, guilty of the crimes on May 24, 2018. Reid was a construction consultant and business partner with Eric Worthen, 46, of Pleasant Hill, who, at the time, was also an employee of the California Department of Veterans Affairs (CalVet). The evidence at trial demonstrated Reid received bribes on two occasions in connection with business being offered by CalVet. The jury also concluded Reid conspired with Worthen to receive the bribes.
The evidence at trial showed that Reid accepted cash from a source on April 18, and again on May 8. In April, Reid offered a developer an inside advantage on two CalVet construction projects in exchange for $10,000 cash. Specifically, Reid offered to use Worthen’s position at CalVet to circumvent the normal bidding process for a residential home project in Ventura, Calif. The May transaction involved a kitchen remodel project at the veterans’ home in West Los Angeles. On this occasion, Reid and Worthen accepted $2,000 cash in exchange for providing to the developer inside information that the co-conspirator took from the CalVet office. Unbeknownst to Reid and Worthen, the “developer” to whom they were providing an inside track on the CalVet contracts was a source working under the direction of the FBI and posing as a developer willing to pay bribes in order to obtain contracts with public agencies. At the conclusion of the trial, the jury found Reid guilty of conspiracy, in violation of 18 U.S.C. § 371, and two counts of receiving a bribe or reward, in violation of 18 U.S.C. § 666(a)(1)(B).
In addition to the prison term, Judge Breyer ordered Reid to serve 3 years of supervised release.
Worthen pleaded guilty in August of 2017 to his part in the conspiracy and for taking bribes. Judge Breyer scheduled his sentencing for November 6, 2019.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office and the FBI, with assistance from the Department of Energy, Office of Inspector General.
Nurse from Parker Adventist Hospital Pleads Guilty to Stealing Fentanyl Designated for PatientsRead the Press Release
DENVER – Jessica Sharman, age 35, of Arapahoe County, pled guilty yesterday before U.S. District Court Judge Christine M. Arguello to Tampering with a Consumer Product, specifically stealing fentanyl meant for patients from the Intensive Care Unit (ICU) at Parker Adventist Hospital in Douglas County, announced U.S. Attorney Jason Dunn, DEA Denver Division Special Agent in Charge William McDermott and Food and Drug Administration Office of Criminal Investigations (FDA OIG) Special Agent in Charge Charles Grinstead. Sharman appeared at the hearing free on bond. She is scheduled to be sentenced by Judge Arguello on September 24. Sharman was first charged by Information on May 29, 2019.
According to the stipulated facts contained in the plea agreement, Sharman worked as a nurse for various employers until she began working in the Intensive Care Unit at Parker Adventist Hospital in January 2018. Soon after she started work at Parker Adventist, the defendant used an automated narcotic medication dispensing device known as a Pyxis machine. It dispensed multiple narcotic drugs, including fentanyl. Only authorized users, including nurses, are allowed to use the machine. Access was obtained by using the authorized user’s fingerprint.
On April 20, 2018, a routine audit report of access to and utilization of controlled substances from the Pyxis machine flagged Sharman’s access as “red” for high fentanyl use and waste (the disposal of excess fentanyl following physician-ordered patient administration) for the month of March 2018. The audit for the month of February 2018 flagged Sharman’s access as “yellow,” also for high fentanyl usage. A review of the Pyxis access records showed a high number of “remove-cancel” transactions, indicating that the defendant had accessed controlled substances from a Pyxis machine but then “cancelled” the transaction, returning the drug to the locked machine.
On April 25, 2018, after substantiating the tampering concerns flagged by the audit, Parker Adventist removed all fentanyl from the ICU. On April 26, 2018, Parker Adventist employees interviewed Sharman. Based in part on that interview, it was determined that the defendant was stealing fentanyl from the hospital. She allegedly withdrew the drug from fentanyl cassettes using a sterile syringe and saline flushes. She sometimes replaced the fentanyl she stole with saline, injecting the saline back into the fentanyl cassette and returning the cassette to the Pyxis machine. Following her interview, Sharman tested positive for the use of fentanyl. The hospital terminated Sharman’s employment on April 26, 2018.
Tampering with a consumer product is a felony offense, punishable by up to ten years imprisonment.
This case was investigated by the FDA OCI and the DEA. The defendant is being prosecuted by Assistant U.S. Attorney Anna Edgar.
Northern Florida Bingo Operator Sentenced to Federal Prison for Illegal Gambling and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – U.S. Attorney Lawrence Keefe for the Northern District of Florida today announced the sentencing of Larry L. Masino, 69, of Gulf Breeze, and Dixie L. Masino, 66, of Pensacola. A jury found both guilty of conspiracy and money laundering charges related to their ownership and operation of Racetrack Bingo in Fort Walton Beach.
The Masinos, through Racetrack Bingo, illegally conducted bingo games by keeping a substantial amount of the bingo proceeds for themselves rather than returning all proceeds to players in the form of prizes, as required by law. The Masinos received and laundered $5,813,584 in profit between 2006 and 2015. Larry Masino, the original orchestrator of the illegal bingo scheme, was sentenced to twelve months and one day in prison, followed by two years of supervised release. His ex-wife Dixie Masino, who took over as the face of the operation in 2010 after Larry was prosecuted in Tallahassee for running illegal bingo games there, was sentenced to four months of house arrest as a part of a five-year probation term.
“These individuals were preying upon the citizens of Fort Walton Beach,” said Special Agent in Charge Jack Massey at FDLE’s Pensacola Regional Operations Center. “We appreciate the diligent investigative work of our agents and our partners at the IRS, FBI and the Okaloosa County Sheriff’s Office and thank the U.S. Attorney’s Office, Northern District of Florida for bringing this case to a successful resolution for justice.“
In addition to receiving sentences of incarceration, house arrest, and probation, the Masinos were jointly ordered to pay a forfeiture money judgment of $5,813,584. The government has already seized more than $1.5 million from the Masinos’ bank accounts and forfeited three properties, the proceeds of which will be applied toward the court-ordered money judgment.
"With today's sentencing, the Masinos will pay a high price for defrauding unsuspecting charities whose sole mission was to help others," U.S. Attorney Keefe said. "This office has zero tolerance for illegal gambling schemes, especially those that target charitable organizations. We will prosecute operators to the fullest extent of the law."
Assistant United States Attorney Alicia H. Forbes prosecuted the case, which was investigated by the Florida Department of Law Enforcement, the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, and the Okaloosa County Sheriff’s Office.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Northampton County Man Indicted for Possessing Homemade Bombs, Guns While Subject to Protection from Abuse OrderRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jason Muzzicato, 43, of Bangor, Pennsylvania was charged by Indictment with possession of firearms by a person subject to a court order restraining him from harassing, stalking and threatening an intimate partner (known as a domestic violence protective order, Protection From Abuse order or PFA), and possession of an unregistered destructive device (an improvised explosive device).
The charges against the defendant stem from his possession of homemade bombs and firearms, while subject to the terms of a PFA order issued by the Northampton County Court of Common Pleas. Under federal law, an individual who is subject to a PFA order is prohibited from possessing firearms. As alleged in the Indictment, the defendant possessed seven improvised explosive devices and nine firearms, including multiple AR-15 rifles and semi-automatic pistols.
“Protection From Abuse orders are meant to protect individuals before the situation escalates,” said U.S. Attorney McSwain. “For good reasons, federal law prohibits subjects of PFA orders from possessing firearms. Here the defendant’s alleged behavior violated the law and threatened public safety.”
If convicted, the defendant faces a maximum possible sentence of 20 years’ imprisonment, three years’ supervised release, a $260,000 fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Reading Field Office, the Washington Township Police Department, the Pennsylvania State Police, and the Bethlehem Fire Department, and is being prosecuted by Assistant United States Attorney John Gallagher.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Carolina Woman Admits Role in Gun Trafficking SchemeRead the Press Release
CAMDEN, N.J. – A North Carolina woman today admitted her role in an illegal scheme to buy weapons in Georgia and transport them to New Jersey for resale, U.S. Attorney Craig Carpenito announced.
Anastacia Thomas, 26, of Fayetteville, North Carolina, pleaded guilty before U.S. District Judge Joseph Rodriguez in Camden federal court to an information charging her with conspiring to illegally traffic firearms.
According to documents filed in this case and statements made in court:
On Jan. 25, 2018, law enforcement officers conducted a traffic stop in Deptford, New Jersey, of a car registered to Anthony Doyle, 28, also of Fayetteville, North Carolina. Doyle was riding as the front seat passenger while Thomas was driving. The officers observed a Glock handgun in plain view on the front seat passenger floor. This gun was loaded with 14 hollow tip bullets. The officers also observed a firearm box in the backseat of the car, next to a backpack. A search of the car and backpack revealed four additional handguns and two additional firearm boxes.
Law enforcement officers subsequently learned that Thomas had purchased the four handguns in the backpack on Jan. 22, 2018, from a pawnshop in Jonesboro, Georgia. Thomas had purchased several additional firearms from that same pawnshop over the course of multiple visits, and Doyle accompanied Thomas to the pawnshop on at least two of those visits.
Law enforcement officers learned that from Nov. 30, 2017, to Jan. 25, 2018, Doyle and Thomas conspired and worked together to engage in the business of dealing in firearms without a license. Thomas was responsible for purchasing firearms from federally licensed firearms dealers; Doyle used social media to advertise firearms for sale, negotiate pricing, and arrange transactions. Doyle discussed the various firearm transactions in great detail over the course of hundreds of pages of online messages that were analyzed by law enforcement officers.
The charge of conspiring to engage in gun trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 7, 2019.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, 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.
Charges against Doyle remain pending. Those charges are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: Doyle: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Thomas: Paul A. Sarmousakis Esq., Avalon, New JerseyNew York Man Sentenced to 12 Years in Federal Prison for Multi-Million Dollar Pyramid Scheme that Targeted Chinese AmericansRead the Press Release
LOS ANGELES – A New York man has been sentenced to 144 months in federal prison for being a high-level promoter of a fraudulent company that solicited more than $200 million for a business that purported to market online children’s educational courses, but was in fact nothing more than a pyramid scheme.
Daliang “David” Guo, 56, of Hyde Park, New York, was sentenced at a Monday hearing by United States District Judge Dale S. Fischer.
After a seven-day trial in September 2018, Guo was found guilty by a federal jury of conspiracy to commit wire fraud, and nine counts of wire fraud for participating in the scheme that solicited investments primarily from members of Chinese-American communities in Los Angeles, San Francisco and New York City.
Guo and his co-conspirators made false representations about the Hong Kong-based company – known as CKB 168, but also sometimes known as CKBMax and Cyber Kids Best Education Limited. The false representations included claims that it generated substantial revenues from the sale of web-based children’s educational courses, that investments could be quickly liquidated for significant returns, that investors would get pre-initial public offering shares of CKB, and that the company would go public through an IPO. In reality, the only way for investors to earn any meaningful returns was for them to actively recruit new investors.
Guo and his co-conspirators promoted CKB through YouTube videos and other postings on the internet, as well as through meetings with prospective investors and live presentations about the purported investment opportunity.
Between mid-2011 and January 2014, Guo and his co-conspirators solicited investments in increments of $1,380, which gave investors “Profit Reward Points” they claimed were worth $750 in cash, would only increase in value, and could be converted to pre-IPO shares of CKB. Guo and his co-conspirators collected money from new investors and simply pocketed the cash to pay themselves the “commission” they earned from CKB, and lulled investors by providing them with essentially worthless Profit Reward Points.
Guo and his group of promoters collected approximately $142 million out of the more than $200 million raised by CKB from investors.
Guo’s four other co-defendants in this case have pleaded guilty to federal criminal charges and been sentenced to federal prison:
- Wen Chen “Wendy” Lee, 57, formerly of Rowland Heights, was sentenced to 21 months in federal prison;
- Chih Hsuan “Kiki” Lin, 54, formerly of Los Angeles and Las Vegas, was sentenced to 37 months in federal prison; and
- Cheong Wha “Heywood” Chang, 48, and his wife, Toni Tong Chen, 47, both formerly of Hacienda Heights, were sentenced to 12 months and one day, and 20 months in federal prison, respectively.
This case was investigated by the Federal Bureau of Investigation. The Securities and Exchange Commission provided valuable assistance.
This matter is being prosecuted by Assistant United States Attorney Ashwin Janakiram of the Major Frauds Section.
New Orleans Man Sentenced to 3 Years Probation after Previously Pleading Guilty to Trafficking in $193,980 Worth of Counterfeit GoodsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that MAHER SALIM, age 41, a resident of New Orleans, Louisiana, was sentenced today by United States District Judge Jay A. Zainey to (3) years after previously pleading guilty to trafficking in counterfeit goods, in violation of Title 18, United States Code, Section 2320(a)(1). Judge Zainey scheduled a hearing to determine restitution owed to the victims for September 24, 2019.
According to court documents, SALIM owned and operated BRANDS 4 LESS, a business located at 4200 Washington Avenue, Unit A, in New Orleans. On about November 6, 2016, agents with the United States Department of Homeland Security – Homeland Security Investigations (“HSI”) conducted a cargo inspection of a suspicious package addressed to SALIM at the DHL Express facility in Kenner, Louisiana. The package contained 32 pairs of Nike shoes that were determined to be counterfeit. Thereafter, a Nike representative entered BRANDS 4 LESS during its business hours and purchased another pair of counterfeit Nike shoes. Based on this information, HSI agents executed a federal search warrant on BRANDS 4 LESS on January 19, 2017. During the search, agents seized numerous counterfeit goods SALIM was selling that bore the false marks of makers of clothing and luxury goods, including True Religion, Rock Revival, Michael Kors, Coach, Louis Vuitton, Polo, Timberland, New Era, Nike, Adidas, Dolce & Gabbana, Mitchell & Ness, and North Face. The collective fair market value of all the items was approximately $193,980.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security – Homeland Security Investigations. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
New Orleans Man Pleads Guilty to Obtaining Kilograms of Fentanyl Analogue from ChinaRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that LEROY SMITH, age 35, of New Orleans, pleaded guilty yesterday to one count of conspiring to distribute 100 grams or more of a fentanyl analogue and 100 grams or more of heroin and one count of possessing firearms in furtherance of his drug trafficking. On the drug charge, SMITH is facing a mandatory minimum sentence of 10 years’ imprisonment, a maximum sentence of life, a possible fine of up to $10,000,000, and at least five years of supervised release upon his release from prison. On the firearms charge, SMITH is facing a mandatory minimum sentence of 5 years’ imprisonment, a possible fine of up to $250,000, and no more than five years of supervised release upon his release from prison.
According to court records, SMITH conspired with his codefendant, Carl J. Hurst, and others, to order kilograms of acetylfentanyl, an analogue of fentanyl, from a Chinese manufacturer. SMITH admitted that he sold the acetylfentanyl as “heroin.” The government’s evidence in this case includes multiple undercover purchases of heroin and acetylfentanyl from SMITH, wiretaps on SMITH’s phones, drug seizures, and eyewitness testimony. On May 31, 2019, codefendant Hurst also pleaded guilty to conspiring to sell acetylfentanyl and heroin.
U.S. District Judge Ivan L.R. Lemelle will sentence SMITH on September 25, 2019.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Brandon Long and Nicholas Moses are responsible for the prosecution.
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New Jersey/Pennsylvania Doctor Indicted for Accepting Bribes and Kickbacks from A Pharmaceutical Company in Exchange for Prescribing Powerful Fentanyl DrugRead the Press Release
A doctor who practiced in New Jersey and Pennsylvania was charged in an indictment unsealed today for his alleged participation in a scheme to receive bribes and kickbacks from a pharmaceutical company in exchange for prescribing large volumes of a powerful fentanyl narcotic.
Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field Office, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Office of Investigations—New York Region and Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s (DEA) New Jersey Division made the announcement.
Kenneth Sun, M.D., 58, of Easton, Pennsylvania, was charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and four counts of receiving health care kickbacks. Sun was arrested this morning and appeared this afternoon before U.S. Magistrate Judge Leda Dunn Wettre of the District of New Jersey. A trial date has not been set.
According to the indictment, Sun owned and maintained a pain management medical practice named Progressive Pain Solutions LLC, which had two locations: one in Phillipsburg, New Jersey, the other in Wind Gap, Pennsylvania. The indictment alleges that Sun solicited and received more than $140,000 in bribes and kickbacks from Insys Therapeutics, a pharmaceutical company based in Arizona, in exchange for prescribing more than 28 million micrograms of Subsys, a powerful opioid narcotic designed to rapidly enter a patient’s bloodstream upon being sprayed under the tongue. Subsys, which is sold by Insys Therapeutics and costs thousands of dollars for a month’s supply, contains fentanyl, a synthetic opioid pain reliever which is approximately 50 to 100 times more potent than morphine. The U.S. Food and Drug Administration approved Subsys solely for the “management of breakthrough pain in cancer patients who are already receiving and who are tolerant to around the clock therapy for their underlying persistent cancer pain”. The indictment alleges that Sun prescribed Subsys to patients for whom Subsys was medically unnecessary, not eligible for insurance reimbursement and/or not desired.
The indictment further alleges that the bribes and kickbacks that Sun received from Insys Therapeutics in exchange for prescribing Subsys were disguised as “honoraria” for educational presentations regarding Subsys that Sun purportedly provided to licensed practitioners. In reality, the indictment alleges, these presentations were a sham: they lacked the appropriate audience of licensed practitioners, there was no presentation about Subsys whatsoever, the same individuals attended over and over again and Sun did not attend some of the presentations at all. Sun caused Medicare to pay more than $847,000 for Subsys prescriptions that were medically unnecessary, procured through the payment of kickbacks and bribes, and not eligible for Medicare reimbursement, the indictment alleges.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG and the DEA. Trial Attorney Rebecca Yuan of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Mountain Top Accountant Sentenced to Seven Years of Imprisonment for Laundering Nearly $1.4 Million and for Failing to Report over $800,000 to the IRSRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 24, 2019, United States District Court Judge James Munley sentenced Adam Kamor, age 44, to seven years of imprisonment and three years of supervised release, for committing money laundering and tax evasion.
According to United States Attorney David J. Freed, Kamor worked as a Certified Public Accountant and operated the accounting business Decker Accounting LLC in Wilkes-Barre, Pennsylvania. From October 2014 to January 2018, Kamor embezzled approximately $1,384,000 from one of his clients, a non-profit organization, by shifting the funds through a series of accounts under his control. Kamor used the embezzled funds for his own personal benefit, primarily to gamble at the Mohegan Sun Pocono casino.
Kamor also failed to report a total of $804,365.73 in income between tax years 2014 ($110,607.08), 2015 ($315,224.71), and 2016 ($378,533.94). Kamor filed false Form 1040 Individual Income Tax Returns for each of those tax years.
The United States seized $32,443 of the remaining embezzled funds, which will be returned to the victim of Kamor’s crimes. Judge Munley ordered Kamor to pay additional restitution of $1,353,244.56 to his victim, and $241,623 to the IRS, to satisfy his outstanding tax obligation. In pronouncing the sentence, Judge Munley highlighted the serious nature of the offense, and interests in sending a deterrent message to like-minded criminals.
“Not only did this defendant willfully fail in his duty as a citizen to pay his fair share, he further enriched himself by stealing from an organization that existed for the benefit of others,” said U.S. Attorney Freed. “We were able to aggressively prosecute this white collar criminal because of the hard work and dedication of our partners at IRS Criminal Investigation. If tax cheats in the Middle District of Pennsylvania are not on notice, then they are not paying attention.”
“Money laundering is tax evasion in progress,” stated Special Agent in Charge Guy Ficco of the IRS’s Criminal Investigations Division. “IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money. Rest assured that IRS-CI will continue to protect the integrity of the tax system by ensuring everyone pays the right amount of tax.”
The investigation was conducted by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Mishawaka, Indiana Man SentencedRead the Press Release
SOUTH BEND - Reginald Blackburn, age 26, of Mishawka, Indiana, was sentenced before United States District Court Judge Jon E. DeGuilio for Conspiracy to Distribute Heroin, announced U.S. Attorney Kirsch.
Blackburn was sentenced to 84 months in prison followed by 5 years of supervised release.
According to documents in this case, between August and October 2017, Blackburn was part of a group of people who sold heroin in the South Bend and Mishawaka area. They shared at least one cellphone, which they used to arrange sales of heroin. Members of the group would pick up pre-packaged baggies of heroin, usually one-half gram, from members of the group and sell the heroin to people who called the shared cellphone. The price charged for the heroin was set by people who were higher up in the group. Blackburn was involved between August and October, but others in the group operated before he joined. Between March and September, 2017, the phone was used for about 66,000 calls and text messages.
This case was investigated by DEA with assistance from the St. Joseph County Drug Investigations Unit, the local federal Organized Crime Drug Enforcement Task Force, ATF, St. Joseph County Prosecutor’s Office, Indiana State Police, South Bend Police and Elkhart Police. The case was handled by Assistant U.S. Attorneys Joel Gabrielse and Molly Donnelly.
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Mexican Citizen Charged with Importing Methamphetamine and Heroin into United StatesRead the Press Release
LAREDO, Texas – A 50-year-old Mexican national is set to appear in federal court on charges he imported methamphetamine and heroin into the country, announced U.S. Attorney Ryan K. Patrick. Fernando Anaya-Bautista is also charged with one count of conspiracy.
A federal grand jury returned the three-count indictment June 18, 2019, against Fernando Anaya-Bautista. He is set to appear for his arraignment before U.S. Magistrate Judge Diana Song Quiroga at 1:00 p.m. today.
Originally charged by criminal complaint, Anaya-Bautista allegedly attempted to enter the United States at the Colombia Solidarity International Bridge in Laredo May 23, 2019, driving a tractor-trailer. Following a positive K-9 alert and x-ray examination, authorities located 12 bundles of methamphetamine weighing approximately 11 kilograms along with one package of heroin with a weight of 1.06 kilograms, according to the charges. They were all allegedly located in a speaker box inside the truck.
If convicted, Anaya-Bautista faces up to life in prison and a possible $10 million fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from CBP. Assistant U.S. Attorney Jennifer Day is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Merrill Lynch Commodities Inc. Enters into Corporate Resolution and Agrees to Pay $25 Million in Connection with Deceptive Trading Practices Executed on U.S. Commodities MarketsRead the Press Release
Merrill Lynch Commodities Inc. (MLCI), a global commodities trading business, has agreed to pay $25 million to resolve the government’s investigation into a multi-year scheme by MLCI precious metals traders to mislead the market for precious metals futures contracts traded on the Commodity Exchange Inc. (COMEX), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office.
According to MLCI’s admissions, beginning by at least 2008 and continuing through 2014, precious metals traders employed by MLCI schemed to deceive other market participants by injecting materially false and misleading information into the precious metals futures market. They did so by placing fraudulent orders for precious metals futures contracts that, at the time the traders placed the orders, they intended to cancel before execution. In doing so, the traders intended to “spoof” or manipulate the market by creating the false impression of increased supply or demand and, in turn, to fraudulently induce other market participants to buy and to sell futures contracts at quantities, prices and times that they otherwise likely would not have done so. Over the relevant period, the traders placed thousands of fraudulent orders.
MLCI entered into a non-prosecution agreement (NPA) and agreed to pay a combined $25 million in criminal fines, restitution and forfeiture of trading profits. Under the terms of the NPA, MLCI and its parent company, Bank of America Corporation (BAC), have agreed to cooperate with the government’s ongoing investigation of individuals and to report to the Department evidence or allegations of violations of the wire fraud statute, securities and commodities fraud statute, and anti-spoofing provision of the Commodity Exchange Act in BAC’s Global Markets’ Commodities Business, whose function is to conduct wholesale, principal trading and sales of commodities. MLCI and BAC also agreed to enhance their existing compliance program and internal controls, where necessary and appropriate, to ensure they are designed to detect and deter, among other things, manipulative conduct in BAC’s Global Markets Commodities Business.
The Department reached this resolution based on a number of factors, including MLCI’s ongoing cooperation with the United States and MLCI and BAC’s remedial efforts, including conducting training concerning appropriate market conduct and implementing improved transaction monitoring and communication surveillance systems and processes.
The Commodity Futures Trading Commission (CFTC) announced a separate settlement with MLCI today in connection with related, parallel proceedings. Under the terms of the resolution with the CFTC, MLCI agreed to pay approximately $25 million, which includes a civil monetary penalty of $11.5 million, as well as restitution, and disgorgement, with restitution and disgorgement credited for any such payments made to the Department. In addition, the CFTC order imposes upon MLCI other remedial and cooperation obligations in connection with any CFTC investigation pertaining to the underlying conduct.
As part of the investigation, the Department obtained an indictment against Edward Bases and John Pacilio, two former MLCI precious metals traders, in July 2018. Those charges remain pending in the U.S. District Court for the Northern District of Illinois. See United States v. Edward Bases and John Pacilio, 18-cr-48 (N.D. Ill.). All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s New York Field Office. Trial Attorneys Ankush Khardori and Avi Perry of the Criminal Division’s Fraud Section prosecuted the case. The CFTC also provided assistance in this matter.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-vns/case/mlci or call (888) 549-3945.
Martin Man Indicted in Theft of FirearmsRead the Press Release
United States Attorney Ron Parsons announced that a Martin, South Dakota, man was charged in federal district court with Theft of Firearms, Possession of a Firearm by a Prohibited Person, and Possession of a Stolen Firearm.
Sidney Marshall, age 25, was charged on April 16, 2019. Marshall appeared before U.S. Magistrate Judge Daneta Wollmann on June 6, 2019, and pleaded not guilty to the charges. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Marshall, a previously convicted felon who is prohibited from possessing firearms, breaking into a business in Martin and stealing multiple firearms in August 2018. The charges are merely an accusation and Marshall is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Martin Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Marshall was detained pending trial. A trial date has not been set.
Man Who Knowingly Gave Felon A Gun Pleads Guilty Shortly Before Scheduled TrialRead the Press Release
Troy Cooke, 46, from Sioux City, Iowa, was charged with 1 Count of transferring a firearm and ammunition to a felon, the charges are contained in an indictment filed February 20, 2019 in United States District Court in Sioux City.
The allegations against Cooke were, in essence, that he gave a gun (an IAC Billerica, Model 1911-A1, handgun) and ammunition to Ronald Warner knowing and having reason to know Ronald Warner had been convicted of a crime punishable by imprisonment for a term exceeding a year.
Trial was scheduled to begin July 1, 2019. Just days before trial, Cooke entered a guilty plea, without a plea agreement, and fully admitted to the crime for which he was charged. Cooke faces a possible maximum sentence of 10 years’ imprisonment, a $100 fine, and 5 years of supervised release following any imprisonment.
The case is being investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4010.
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Lynn Man Sentenced for Distributing Heroin and FentanylRead the Press Release
BOSTON – A Lynn man was sentenced today in federal court in Boston for multiple drug convictions associated with his distribution of heroin and fentanyl that led to the 2017 overdose death of a Melrose resident.
Yeffry Reynoso, a/k/a Chris, 27, was sentenced by U.S. District Judge Nathaniel M. Gorton to 150 months in prison and four years of supervised release. In January 2019, Reynoso pleaded guilty to one count of conspiring to distribute at least 100 grams of heroin and at least 40 grams of fentanyl in 2016 and 2017. Reynoso also pleaded guilty to six counts of distributing heroin or fentanyl on various dates in 2017.
According to court documents, Reynoso admitted that he sold and directed others to sell on his behalf small, retail quantities (typically approximately .25 to .30 grams in a plastic baggie) of heroin, heroin mixed with fentanyl, and/or fentanyl to individuals in Lynn, Melrose, Saugus, Peabody, Malden, and the surrounding areas. Reynoso admitted that he sold the drugs to his customers on an almost daily basis and that he directed others who worked for him to deliver the drugs. Reynoso further admitted that he sold heroin and heroin mixed with fentanyl to a customer in Melrose after being told by her friend not to do so and that his customer fatally overdosed from the drugs he provided.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Melrose Police Chief Michael Lyle made the announcement today. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Lima man with a long history of violence sentenced to 15 years in federal prison for having firearmsRead the Press Release
A Lima man with a long history of violence was sentenced to 15 years in federal prison for having firearms.
Benjamin Frieson, 47, previously pleaded guilty to two counts of being a felon in possession of a firearm.
Frieson possessed a GSG .22-caliber rifle and a Taurus 9 mm pistol on July 14, 2019, according to court documents.
Frieson was prohibited from having firearms because of multiple previous convictions, including for aggravated assault, felonious assault on a peace officer, aggravated assault and attempted robbery.
“This defendant has proven time and again to be a violent individual,” U.S. Attorney Justin Herdman said. “This sentence makes the community safer.”
These cases are part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lima Police Department. It was prosecuted by Assistant U.S. Attorneys Tracey Tangeman and Matthew Simko.