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18 June 2019
Las Vegas Cardiology Practice Agrees to Pay $2.5 Million Settlement Claim Involving Medicare Kickback SchemeRead the Press Release
Las Vegas, NV – A Las Vegas cardiology practice has agreed to pay $2.5 million to settle claims alleging that it referred patients for genetic testing in exchange for kickbacks paid by the testing companies, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
“The U.S. Attorney’s Office will hold accountable fraudulent medical companies that seek to line their pockets by undermining the integrity of health care programs,” said U.S. Attorney Trutanich. “We work closely with our law enforcement partners to stop illicit activity and I encourage individuals with information of fraud to make a report to authorities.”
From September 1, 2012 to May 31, 2013, Nevada Heart & Vascular Center (Resh), LLP (NHVC) was alleged to have referred Medicare patients to genetic testing companies Natural Molecular Testing Corp. and Iverson Genetic Diagnostics, Inc., in exchange for payments to the practice made by the testing companies. The scheme was alleged to be in violation of the Anti-Kickback Statute and the civil False Claims Act.
NHVC has agreed to pay the United States $2.5 million to settle its potential liability in this matter.
The case was investigated by the Department of Health and Human Services Office of Inspector General, the FBI, the Department of Defense Office of Inspector General, and the Office of Personnel Management Office of Inspector General. Assistant U.S. Attorney Roger Wenthe prosecuted the case.
This Settlement Agreement is neither an admission of liability by NHVC nor a concession by the United States that its claims are not well founded.
Jury Convicts Valley Man for Lying on Federal FormRead the Press Release
BROWNSVILLE, Texas – A 39-year-old Harlingen resident has been found guilty of lying on a federal firearm application at a local Wal-Mart, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for 30 minutes before convicting Juan Sauceda following a one-day trial.
On Sept. 6, 2018, Sauceda attempted to purchase a 12-gauge pump shotgun at a Wal-Mart in Harlingen. As a part of the purchase, he was required to fill out ATF Form 4473 in order to complete a background check. He signed the form, attesting that he never had a felony conviction. However, the investigation revealed he had a conviction for two counts of assault and battery with a deadly weapon. Sauceda had stabbed two individuals in 2013 in a dispute in Custer County, Oklahoma.
The defense attempted to convince the jury Sauceda was too uneducated to understand the form when he made the false statement as to his criminal history. The jury was not persuaded and found him guilty as charged.
U.S. District Judge Rolando Olvera presided over the trial and has set sentencing for Sept. 18, 2019. At that time, Sauceda faces up to five years in prison and a possible $250,000 fine.
He was permitted to remain on bond pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Justin Schorr Dinsdale and Israel Cano III prosecuted the case.
Inmate at State Correctional Facility Pleads Guilty to Drug ChargesRead the Press Release
BOSTON – An inmate at a Massachusetts correctional facility pleaded guilty today federal court in Boston in connection with smuggling drugs into the facility.
Chad Connors, 42, pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 12, 2019.
In September 2018, Connors, who was an inmate at Massachusetts Correctional Institute – Cedar Junction (MCI-CJ) in South Walpole at the time, was indicted along with William Guillemette, 39, also an MCI-CJ inmate, Margaret Guillemette, 58, and Lisa Guillemette, 42.
Chad Connors and William Guillemette were inmates housed at MCI-CJ’s Departmental Disciplinary Unit (DDU). Connors was involved in a romantic relationship with Christine Ramos, a nurse assigned to the DDU. At Connors’ request, Ramos agreed to smuggle contraband, including controlled substances, into MCI-CJ. In order to do this, Ramos opened two P.O. Boxes through a third party. Connors sent letters and money to Ramos at these P.O. Boxes and, at William Guillemette’s direction, Lisa and Margaret Guillemette, obtained and sent Suboxone and Alprazolam to the P.O. Boxes. Ramos subsequently smuggled the drugs into the DDU and delivered them to Connors. Connors and William Guillemette then distributed the drugs to other inmates, who sent checks to Lisa and Margaret Guillemette as payment for the drugs. Suboxone and Alprazolam are Schedule III and Schedule IV controlled substances, respectively.
William Guillemette and Lisa Guillemette previously pleaded guilty and are awaiting sentencing. Margaret Guillemette previously pleaded guilty and was sentenced to time served (five days), two years of supervised release and 200 hours of community service. The nurse, Christine Ramos, pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam, and was sentenced two years of probation.
The charge of conspiracy to distribute Suboxone and Alprazolam provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $500,000 and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today. Assistant U.S. Attorney Eugenia Carris, of Lelling’s Public Corruption and Special Prosecutions Unit, is prosecuting the case.
Inmate Sentenced to 17 Months’ Imprisonment for Possession of Drugs and Contraband in Lackawanna County PrisonRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Thomas Coss, age 37, of Scranton, Pennsylvania, was sentenced on June 17, 2019, to 17 months’ imprisonment by Senior U.S. District Court Judge A. Richard Caputo, for possessing illegal drugs and contraband inside the Lackawanna County Prison.
According to United States Attorney David J. Freed, Coss previously pleaded guilty to possessing contraband in prison. Coss admitted that between July 2015 and April 2016, while an inmate at the prison, he obtained, possessed and attempted to obtain suboxone and tobacco that were smuggled into the prison by others on several occasions. To date, four people have been charged in connection with the investigation.
Judge Caputo imposed the 17-month sentence to run consecutive to a sentence Coss is currently serving in state prison for an unrelated crime. Judge Caputo also ordered Coss to serve two years on supervised release following his prison sentence.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Indictment: Texas Woman Arrested in Kansas with More than 4 Pounds of CocaineRead the Press Release
WICHITA, KAN. – A Texas woman who was arrested on a highway in Meade County, Kan., was indicted today on drug trafficking charges, U.S. Attorney Stephen McAllister said.
Dora Elizabeth Arteaga, 42, Houston, Texas, was charged with one count of possession with intent to distribute cocaine. A Kansas Highway Patrol trooper stopped Arteaga April 14, 2019, near Plains, Kan. The indictment alleges officers found approximately 4.4 pounds of cocaine in a bag behind the driver’s seat.
If convicted, Arteaga will face a penalty of no less than five years and no more than 40 years in federal prison and a fine up to $5 million. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
OTHER INDICTMENTS
Edison Javier Olivera de la Cruz, 23, Emporia, Kan., is charged with one count of misusing a Social Security number and one count of aggravated identity theft. The indictment alleges he applied for a Kansas driver’s license using a stolen Social Security number. The crimes are alleged to have occurred Feb. 15, 2017, in Lyons County, Kan.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on the Social Security charge and a mandatory two years (consecutive) on the identity theft charge. The Kansas Department of Revenue investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Nyron J. Bowen, 29, Wichita, Kan., is charged with one count of bank fraud. The indictment alleges he deposited counterfeit checks at Emprise Bank and withdrew funds. The crimes are alleged to have occurred in 2016 in Wichita, Kan.
If convicted, he faces up to 30 years in federal prison and a fine up to $1 million. The FBI investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
In-Home Caregiver Sentenced to Prison for Elder FraudRead the Press Release
NEWPORT NEWS, Va. – A Hampton woman was sentenced today to two years in prison for stealing over $21,000 from an elderly client and her family.
“The financial and emotional harm these deceitful and illegal acts can cause victims and their family members cannot be overstated,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The victims in this case entrusted Payne to take care of their elderly family member. Instead, she used that trust to steal over $21,000 from them. I would like to commend the U.S. Postal Inspection Service for their terrific work investigating this case.”
According to court documents, Sandra Payne, 58, was employed to provide in-home care for an elderly client in Newport News. During the course of her employment at that residence, Payne gained access to credit and debit card account numbers belonging to the family of her client. She used that data, without lawful authority or the knowledge and consent of the account owners, to purchase goods and services in excess of $21,000 at various merchants in the Tidewater area.
“Criminals who use the U.S. Mail to commit identity theft and fraud not only jeopardizes people’s trust in the U.S. postal system, their activities threaten the overall financial health of our communities,” said Postal Inspector in Charge Peter Rendina, U.S. Postal Inspection Service - Washington Division. “We will continue to investigate and work with the United States Attorney’s offices to bring individuals engaged in these criminal activities to justice.”
In 2018, the Department of Justice and its law enforcement partners coordinated the largest sweep of elder fraud cases in history. The cases involved more than 250 defendants from around the globe who victimized more than a 1 million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Robert G. Doumar. Special Assistant U.S. Attorney Jeremy Franker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-98.
Illinois Woman Sentenced for Conspiring to Provide Material Support to TerroristsRead the Press Release
St. Louis, MO – Mediha Medy Salkicevic, a/k/a Medy Ummuluna, a/k/a Bosna Mexico, 39, was sentenced to 78 months in prison for conspiring to provide material support to terrorists. Salkicevic appeared today before United States District Judge Catherine D. Perry.
According to court documents, on or before February 5, 2015, Salkicevic conspired with others to support the activities of Abdullah Ramo Pazara and others, including a conspiracy to commit outside the United States an act that would constitute the offense of murder or maiming if committed in the special maritime and territorial jurisdiction of the United States. Salkicevic intended to and did provide support and resources to Pazara, knowing that he and his co-conspirators would use the support and resources in furtherance of their combat against Syrian government forces and others. The support consisted of money and supplies such as U.S. military uniforms, rifle scopes, combat boots, tactical gear, clothing, firearms accessories, range finders, and other supplies useful to fighters engaged in combat in Syria and elsewhere.
Co-defendants Ramiz Zijad Hodzic, Sedina Unkic Hodzic and Armin Harcevic are awaiting sentencing; Nihad Rosic is awaiting trial; and Jasminka Ramic was sentenced to 36 months in prison.
This case was investigated by the St. Louis and Chicago FBI’s Joint Terrorism Task Forces, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U.S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Trial Attorney Joshua Champagne of the Department of Justice’s Counterterrorism Section.
Husband and Wife Who Coordinated Delivery of Methamphetamine from California to Virginia Are Sentenced to Lengthy Terms in Federal PrisonRead the Press Release
Abingdon, VIRGINIA – A husband and wife, who along with several others trafficked large amounts of methamphetamine from California into Southwest Virginia, were sentenced yesterday in U.S. District Court in Abingdon, United States Attorney Thomas T. Cullen announced.
Justin Edward Hale, 38, and Elizabeth Hale, 40, both of Meadowview, Va., were sentenced yesterday in Federal Court. Justin Hale was sentenced to 360 months in prison. Elizabeth Hale was sentenced to 192 months in prison. In January 2019, both defendants pleaded guilty to one count of conspiracy to distribute 500 grams or more of methamphetamine and one count of possession with the intent to distribute 500 grams of methamphetamine.
“These defendants not only brought huge quantities of methamphetamine into Southwest Virginia, but they utilized firearms and threats of violence in furtherance of their drug trade,” U.S. Attorney Cullen stated today. “As a result, they will spend the better parts of their lives in federal prison. We will continue to work closely with our federal, state, and local partners to dismantle methamphetamine trafficking rings and hold dealers accountable.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Justin and Elizabeth Hale coordinated the transportation of multi-pound packages of methamphetamine shipped from California to Abingdon. Once the drugs were in Abingdon, co-defendants Rhonda McDonald, Crystal Lyons, Jessica Dixon, and Michael Kestner received quantities of the drug from Justin Hale, which they then distributed in Marion and Abingdon, Virginia. Additionally, Dixon and Kestner were found to have used firearms to threaten and intimidate individuals who owed them money for methamphetamine.
In separate hearings in May 2019, Kestner was sentenced to 135 months in federal prison, Lyons was sentenced to 60 months, and McDonald was sentenced to 36 months. Dixon will be sentenced on June 25, 2019.
The investigation of the case was conducted by the Washington County Sheriff’s Office, the Smyth County Sheriff’s Office, the Abingdon Police Department, the Drug Enforcement Administration, and the Virginia State Police. Assistant United States Attorney Zachary Lee is prosecuting the case for the United States.
Holland Attorney Sentenced for Defrauding Clients and Filing False Federal Income Tax ReturnsRead the Press Release
Suspended Attorney Jeffrey Palmer Embezzled $339,520 From Clients and Failed to Report That Income to the Internal Revenue Service
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Jeffrey J. Palmer, a resident of Holland, Michigan, has been sentenced to three years in federal prison for making a false statement on a federal income tax return and executing a scheme to defraud two of his clients. Palmer was ordered to pay restitution to his victims and $55,511 to the United States for tax due and owing (before interest and penalties). Following his release from prison, Palmer will serve an additional three years under supervision by the U.S. Probation Office. The sentence was imposed by Chief U.S. District Judge Robert J. Jonker.
Earlier this year, Palmer pled guilty to embezzling $339,520 of client trust funds between 2012 and 2016 while licensed and practicing as an attorney in Michigan. He did not disclose to his clients that he was withdrawing their funds for his own personal use and benefit. The government noted at sentencing that one of Palmer’s victims was vulnerable because he was living in a nursing home and lacked the ability to care for himself or manage his finances. Having no surviving spouse or children, the U.S. Attorney’s Office, Adult Protective Services, and a Michigan Probate Court ensured that the victim was provided with a guardian and conservator after the fraud was discovered. In addition to the scheme to defraud his clients, Palmer admitted that he failed to report as income the funds he embezzled on his federal income tax returns and in so doing, filed false returns that underreported his income. Upon pleading guilty, Palmer received an automatic interim suspension from the practice of law and now faces disbarment.
This matter was investigated by the Criminal Investigation section of the IRS (IRS CI) and was prosecuted by Assistant U.S. Attorney Christopher M. O’Connor.
U.S. Attorney Birge stated, "IRS special agents worked tirelessly to determine the extent to which Jeffrey Palmer committed fraud against his clients and cheated the federal government out of vital tax revenue. Attorneys in this state solemnly swear an oath to accept no compensation in connection with their client’s business except with their client’s knowledge and approval, and to always act consistent with truth and honor. The hard work of IRS CI determined that Palmer violated this oath for five years before being brought to justice."
Manny Muriel, Special Agent in Charge of IRS Criminal Investigation remarked, "Mr. Palmer was a licensed attorney who greedily embezzled clients’ funds for his own benefit from 2012 through 2016. He misused his authority over funds entrusted to him as a fiduciary and failed to report those funds on his federal income tax return. IRS-CI will vigorously investigate individuals who deceitfully steal money and fail to report income on their income tax returns."
END
Henderson Co. Man Who Used Popular Smart Phone Apps to Entice Minors into Producing Child Pornography Is Sentenced to 22.5 YearsRead the Press Release
ASHEVILLE, N.C. – Gabriel Zagazeta, 31, of Hendersonville, N.C. was sentenced today by U.S. District Judge Martin Reidinger to 22.5 years for enticing and luring minors into producing child pornography through popular smart phone apps, announced U.S. Attorney Andrew Murray of the Western District of North Carolina. Zagazeta was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
John Eisert, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; and Chief Herbert Blake of the Hendersonville Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Zagazeta used multiple smart phones apps to contact minors, and lured them into creating and sending him sexually explicit images and videos of themselves. For example, court records show that on May 16, 2016, Zagazeta created an account with a smart phone app that allows users to create and share self-produced music videos and lip syncing videos. The app, which is popular among young children and teenagers, also enables users to chat and exchange self-produced images and videos. One such minor encountered by Zagazeta was a 12-year-old female from Minnesota, who Zagazeta convinced to send him a total of 65 sexually explicit images of herself.
Zagazeta also used another popular app which allows users to conduct video chats and exchange images and videos. Through this app, Zagazeta encountered a 10-year-old girl from Alabama, and, while pretending to be a teenage boy, Zagazeta engaged in sexually explicit conversations with the victim, and solicited sexually explicit videos and images from the minor.
On December 15, 2016, law enforcement officers executed a search warrant at Zagazeta’s residence, and seized computer devices, hard drives, and two smart phones. A forensic analysis of the seized items revealed that the devices contained a total of 1001 images and 1099 videos of children engaging in sexually explicit conduct. Some of the images and videos found in Zagazeta’s possession were those of the victims Zagazeta had contacted through the smart phone apps.
On January 4, 2019, Zagazeta pleaded guilty to coercing a minor to engage in sexually explicit conduct.
In making today’s announcement, U.S. Attorney thanked the Hendersonville Police Department for leading the investigation and HSI and SBI for their substantial assistance with this case.
The U.S. Attorney’s Office in Asheville prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Hell’s Angels Gang Member Sentenced for Methamphetamine DistributionRead the Press Release
Assistant U. S. Attorney Brandon Kimura (619) 546-9614
NEWS RELEASE SUMMARY – June 17, 2019
SAN DIEGO – Obediah Breer, Escondido resident and member of the Hell’s Angels motorcycle gang, was sentenced yesterday in federal court to 12 years in prison for distributing methamphetamine.
The charges stemmed from two incidents in August and September of 2018 outlined in his January plea agreement. Breer was arrested on state charges on August 15, 2018, when the Oceanside Police Department’s SWAT team executed a search warrant on his Escondido residence and discovered cocaine, methamphetamine, pharmaceutical pills and a firearm.
The warrant was based on an incident in which Breer was alleged to have brandished a firearm during a traffic encounter with other motorists on August 5, 2018, and then evaded police officers in a subsequent chase.
According to a federal complaint, during the search of his home Breer acknowledged evading officers in the August 5 traffic incident. He also admitted that he possessed the .22 caliber firearm, and that he is a member of the Hell’s Angels motorcycle gang. He was arrested.
The second incident occurred on September 11, 2018, when Breer was out of custody on pretrial release for the August 15 offense. Escondido Police Department officers conducted a traffic stop of Breer on his motorcycle and discovered that he was in possession of methamphetamine and cocaine.
State and federal prosecutors agreed at that point the case should be prosecuted federally.
In all, the substances possessed by the defendant on August 15 and later on September 11, included 68.23 grams of fentanyl, 83.99 grams of cocaine, 108.6 grams of methamphetamine and 3.54 grams of MDMA, a Schedule I and II Controlled Substances, according to the federal plea agreement.
“This is a great example of working as a team to protect our community,” said U.S. Attorney Robert Brewer. “This motorcycle gang member has a long history of methamphetamine trafficking offenses. We are glad he will be off the streets for a long time. I am proud of our prosecutor, Brandon Kimura, and our law enforcement partners, for their hard work on this case.”
“ATF recognizes the role firearms play in violent crimes and narcotic trafficking,” said ATF Los Angeles Field Division Special Agent in Charge Carlos A. Canino. “We prioritize our resources to focus on armed violent offenders, career criminals, and violent gang members and use the enhanced sentencing guidelines for these offenders. The sentencing is an example of ATF, state and local law enforcement, and federal prosecutors working together to keep our communities safe.”
“We are extremely pleased with the outcome of this case. Through the collaborative investigative efforts of federal and local law enforcement, the menace Obediah Breer poses to our communities has been eliminated for years. We are grateful that the citizens of Oceanside and Escondido will be safer knowing the Hell’s Angel motorcycle gang’s capabilities and influence have been significantly impacted by Breer’s conviction.” -- Chief Craig Carter, Escondido Police Department.
DEFENDANTS 18-cr-04624-LAB
Obediah Breer Age: 42 Escondido, CA
SUMMARY OF CHARGES
Title 21 U.S.C., Sec. 841(a)(1) – Possession of Methamphetamine with Intent to Distribute
Maximum Penalty – Twenty years in prison, $1 million fine
AGENCY
Bureau of Alcohol, Tobacco, Firearms and Explosives
Oceanside Police Department
Escondido Police Department
*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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Harvey’s Lake Man Charged with Illegal Possession of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steve Weaver, age 35, of Harvey’s Lake, Pennsylvania, was indicted on June 6, 2019, by a federal grand jury for multiple counts of illegal firearms possession. The indictment remained under seal until Weaver was arrested by ATF agents on June 17, 2019.
According to United States Attorney David J. Freed, the indictment alleges that between March 18, 2019 and May 9, 2019, in Luzerne County, Weaver, a user of illegal drugs was in possession of firearms and ammunition, possessed a stolen firearm, and made false statements in connection with the purchase of a firearm. The charges stem from an incident in which law enforcement authorities executed a search warrant at Weaver’s residence in Harvey’s Lake and seized 10 firearms and approximately 1,493 rounds of ammunition.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kingston Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the firearms offenses is ten years’ imprisonment, a term of supervised release, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Georgetown Man Indicted by Federal Grand Jury for SwattingRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that a federal grand jury charged Rodney Phipps, 29, of Georgetown, with harassing individuals across the country by telephone, through a process known as “swatting.” “Swatting” involves making hoax emergency calls in order to elicit an armed police response (e.g., from a SWAT team) for the purpose of harassing someone believed to be at the location of the purported emergency.
According to allegations in the Indictment, from in or around August 2015 through August 2017, Phipps placed swatting calls from Delaware to police departments and emergency dispatch centers across the country, including calls to Harrison, New Jersey; Opelousas, Louisiana; Russel County, Kentucky; Pasco County, Florida; and Forsyth County, Georgia. Those swatting calls included false reports that murder, shooting incidents, arson, and a hostage situation had taken place or would take place.
Many of the calls also contained explicit threats that the caller would shoot with a firearm any law enforcement personnel who responded to the emergency call. In several instances, those hoax calls provoked significant law enforcement responses to the purported victim’s residences.
The Indictment charges Phipps with five counts of making interstate threats and one count of making a false threat involving explosives. The interstate threat charges carry a five-year maximum term of imprisonment. The false threat involving explosives charge carries a ten-year maximum term of imprisonment.
U.S. Attorney Weiss stated, “Swatting phone calls have the potential to put the lives of law enforcement officers, the intended victim, and innocent bystanders at risk. Responding to such calls also misdirects resources from local law enforcement and emergency service agencies that could have been used for legitimate emergencies. My office will prosecute those who engage in swatting activity to the fullest extent allowed by law.”
"As alleged, Mr. Phipps orchestrated an extensive, multi-faceted swatting campaign that caused a significant amount of angst, alarm, and unnecessary expenditure of limited law enforcement resources," said Special Agent in Charge Jennifer C. Boone, FBI Baltimore Field Office. "The FBI Baltimore Cyber Task Force, working jointly with the Delaware State Police - Troop 4, the Georgetown Delaware Police Department, and the Delaware United States Attorney's Office hope this arrest will deter others from engaging in similar criminal conduct."
This case is being investigated by FBI-Baltimore Division’s Wilmington Office and is being prosecuted by Assistant U.S. Attorney Jesse S. Wenger.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Garden City Woman Sentenced to 10 Years in Federal Prison for Gun and Drug CrimesRead the Press Release
BOISE – Rebecca Friday Spinler, 39, of Garden City, was sentenced to 120 months in federal prison for possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking offense, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also sentenced Spinler to five years of supervised release once she has completed her prison term.
According to court records, on June 26, 2018, Garden City Police officers arrested Spinler after stopping her vehicle in Garden City. Spinler was found illegally possessing a Smith and Wesson .40 caliber pistol, almost 75 grams of methamphetamine, 10 grams of heroin, and drug paraphernalia. In court, Spinler admitted possessing the methamphetamine with the intent to distribute it to another person. She also admitted possessing the pistol in furtherance of her drug offense. Under federal law, it is illegal to possess a firearm in order to further a drug trafficking crime or federal crime of violence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Garden City Police Department.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Former Resident of Freedom, PA Pleads Guilty to Committing Four Bank RobberiesRead the Press Release
PITTSBURGH, PA -A former resident of Freedom, Pennsylvania, pleaded guilty in federal court to charges of bank robbery, United States Attorney Scott W. Brady announced today.
Patrick Acierno, 34, pleaded guilty to four counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that on March 5, 2019, Acierno entered KeyBank, located at 9605 Harmony Drive, Ingomar, PA 15127, dressed in a black hooded sweatshirt, black mask, sunglasses, and blue latex gloves, proceeded toward the teller stations where two tellers were working and took $7,743, including eight $20.00 bait bills. Acierno fled on foot and was observed by one of the tellers getting into a blue Toyota Rav 4. Franklin Park Police later identified the Toyota Rav4, and apprehended the defendant after a brief vehicle chase. Inside the vehicle, law enforcement officials found the items Acierno wore during the robbery, and $7,743 in U.S. currency, including the bait bills from the Key Bank.
The court was further informed Acierno robbed three additional banks prior to the Key Bank robbery, as listed below:
• On September 12, 2018, Acierno entered the PNC Bank at 20940 Route 19, Cranberry, PA, and robbed it of $2,474. Acierno wore a black hoodie with the hood up, baseball hat, white bandana or T-shirt covering his face, black gloves, dark sunglasses, blue jeans and carrying a navy blue Adidas duffle bag.
• On November 12, 2018, Acierno entered the West View Savings Bank, 2566 Brandt School Road, Wexford, PA, and robbed it of $4,406.00. Acierno wore a camouflage jump suit, tan bandana mask, gloves, boots and a burnt orange/brown knit cap and dark sunglasses.
• On December 5, 2018, Acierno entered the WesBanco Bank, 3531 Broadhead Road, Monaca, PA, and robbed it of $11,800. Acierno wore a black ski mask with sunglasses, black hoodie with the hood pulled up, black jacket, black denim jeans, dark gloves and black shoes.
Judge Ambrose scheduled sentencing for October 17, 2019 at 11 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The defendant will remain imprisoned pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Cranberry Police Department, the Franklin Park Police Department, the Center Township Police Department, and the McCandless Police Department conducted the investigation leading to the prosecution of Acierno.
Former Office Manager Sentenced for Embezzlement Scheme and Related Tax FelonyRead the Press Release
BLUEFIELD, W.Va. – A former office manager for a Bluefield business was sentenced to 41 months in federal prison for an embezzlement scheme and related tax felony charges, announced United States Attorney Mike Stuart. Roseanna Coomes, 67, of Bluefield, West Virginia, previously pled guilty to executing a decade-long wire fraud scheme where she embezzled more than $969,000 from her employer, Cole Truck Parts. She also pled guilty to a related tax offense. As part of the plea, Coomes agreed to pay restitution in the amount of $969,316.68 to Cole Truck Parts and $64,330.10 to the Internal Revenue Service. The Internal Revenue Service-Criminal Investigations and the Bluefield Police Department conducted the investigation.
“Unbelievable. Coomes embezzled almost $1 million from her employer,” said United States Attorney Mike Stuart. “As a result of the great work of law enforcement, her employer will receive restitution and Coomes is going to prison.”
At her plea hearing, Coomes admitted that from about January 1, 2007, through mid-2017, as the office manager at Cole Truck Parts, she defrauded her employer by writing checks to herself and to another person and disguising those checks by making false entries into the company’s accounts. She further agreed that she made false statements on her tax returns for numerous years by not reporting that income.
Former Assistant United States Attorney Meredith Thomas and Assistant United States Attorney Timothy D. Boggess handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
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Former Military Serviceman Charged with Aggravated Sexual AbuseRead the Press Release
WASHINGTON – Federal agents arrested a Louisiana man and former member of the United States Navy stationed in Japan, relating to a 2004 sexual assault. The arrest was based on a two-count indictment returned Friday by a federal grand jury in New Orleans.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana made the announcement.
Travis Lamont Murray, 36, from Jefferson Parish, Louisiana, is charged with one count of aggravated sexual abuse and one count of sexual abuse. He had his initial court appearance Friday, June 14, 2019 before U.S. Magistrate Judge Dana M. Douglas for the Eastern District of Louisiana.
The indictment alleges that on or about the late evening hours of May 25, 2004, and the early morning hours of May 26, 2004, in Yokosuka City, Japan, Murray did knowingly cause a victim to engage in a sexual act by the use of force and by threatening and placing the victim in fear that she would be subjected to death and serious bodily injury. Murray was identified as the assailant after a DNA sample of his was submitted to the FBI’s Combined DNA Index System (CODIS) by the Jefferson Parish Sheriff’s Office during an unrelated investigation in 2018 and was determined to be consistent with a DNA profile obtained during the sexual assault investigation previously entered into CODIS.
All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the U.S. Naval Criminal Investigative Service. The prosecution is being handled by Senior Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kathryn McHugh of the Eastern District of Louisiana.
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Former CEO of Two U.S. Government Contractors Pleads Guilty to Falsifying Government DocumentsRead the Press Release
The former CEO of two U.S. government contractors pleaded guilty today to falsifying documents in an effort to increase his companies’ competitiveness, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Inspector General for Afghanistan Reconstruction John F. Sopko.
James O’Brien, 46 of Fredericksburg, Virginia, pleaded guilty to four counts of making false statements before U.S. Magistrate Judge Sean P. Flynn of the Middle District of Florida. Sentencing has not yet been scheduled.
As part of his guilty plea, O’Brien admitted that from 2013 to 2015 he was CEO of Tamerlane Global Services (Tamerlane) and Artemis Global (Artemis), both of Fairfax County, Virginia. During this time period, Tamerlane and Artemis worked on a logistics contract issued by the U.S. Transportation Command (TRANSCOM) that supported the U.S. war effort in Afghanistan. Tamerlane and Artemis employees, including O’Brien, deployed to Afghanistan as part of the contract.
Contractors deployed to Afghanistan must have with them letters of authorization (LOAs) issued by the government agency responsible for the deployment. The LOAs serve as the contractors’ authorization to be deployed to Afghanistan, and set forth the U.S. government-provided benefits, such as military air travel, that the contractors may utilize at no cost while deployed. LOAs that authorize U.S. government benefits are known as “provisioned LOAs,” and are factored into the cost of a contract.
O’Brien admittedly altered the un-provisioned LOAs, including his own, that TRANSCOM issued to deploying Tamerlane and Artemis employees to make the LOAs appear as if they were provisioned. He gave the LOAs that he altered to his deploying employees, who used them to utilize government provided benefits in Afghanistan at no cost, O’Brien admitted.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction. The case is being prosecuted by Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section.
Federal Jury Convicts Pawn Shop Robber at TrialRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Terry Alonzo Wilson (53, Tampa) guilty of conspiracy to commit robbery, robbery, brandishing a firearm during a robbery, and possessing a firearm as a convicted felon. Wilson faces a mandatory minimum penalty of seven years, up to life, in federal prison. His sentencing hearing is scheduled for September 4, 2019.
Wilson was indicted on October 16, 2018.
According to evidence presented at trial, on September 14, 2018, Wilson and another individual robbed the Value Pawn & Jewelry located at 5401 North 40th Street in Tampa. During the robbery, Wilson pointed a pistol at two employees and a customer who were inside the store and threatened to kill them. Wilson also brought zip ties to the robbery and instructed his partner to tie up the employees and the customer. Wilson forced the store manager to unhook the store’s security video recording system, which Wilson took with him when he left the store.
Wilson and his partner took more than $60,000 in jewelry and cash from the shop. Wilson had previously served prison time for robbing another Tampa pawn shop at gunpoint.
Wilson’s co-defendant, Jeremy Williams (35, Miami), previously pleaded guilty for his role in this case. Williams faces a mandatory minimum penalty of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for July 12, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
This case was brought as part of Project Safe Neighborhoods (“PSN”). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Federal Jury Convicts Chicago Man of Shooting ATF AgentRead the Press Release
CHICAGO — A federal jury has convicted a Chicago man of shooting an agent from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.
ERNESTO GODINEZ shot the agent on May 4, 2018, in the Back of the Yards neighborhood of Chicago. At the time of the early morning shooting, the agent and several other law enforcement officers were conducting a covert law enforcement activity in the 4300 block of South Hermitage Avenue. The agent was wounded but survived, and he testified at the trial.
The jury returned its verdict on Monday in federal court in Chicago. Godinez, 29, was found guilty on both counts against him, including one count of assault of a federal officer, which is punishable by up to 20 years in prison, and one count of discharging a firearm during a crime of violence, which is punishable by a minimum sentence of ten years in prison that must be served after any term of imprisonment imposed on the assault conviction. U.S. District Judge Harry D. Leinenweber set sentencing for September 19, 2019.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of ATF; and Eddie Johnson, Superintendent of the Chicago Police Department. Substantial assistance was provided by the Chicago Police Department, U.S. Marshals Service, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Drug Enforcement Administration, and Illinois State Police. The government is represented by Assistant U.S. Attorneys Kavitha J. Babu and Nicholas J. Eichenseer.
Federal Authorities Seize Dietary Supplements from Suburban Chicago Company Due to Allegedly Poor Manufacturing PracticesRead the Press Release
CHICAGO — At the request of the U.S. Food and Drug Administration, U.S. Marshals have seized more than 300,000 containers of dietary supplements, including tablets, capsules and teas, from a suburban Chicago company.
The containers were held by Life Rising Corp., a Willowbrook-based manufacturer and distributor of dietary supplement products bearing the brand names Life Rising, Holicare, and HopeStream, among others. The goods were seized Friday at Life Rising’s facilities in the 7800 block of South Quincy Street in the southwest suburb. The seized goods consisted of more than 500 products, valued at approximately $3.5 million.
The products were seized after the U.S. Attorney’s Office in Chicago filed a civil forfeiture complaint on behalf of the FDA. The U.S. District Court for the Northern District of Illinois determined there was probable cause that Life Rising prepared, packed and/or held dietary supplements under conditions that do not conform to the dietary supplement current good manufacturing practice (cGMP) requirements.
The complaint and seizures were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Melinda K. Plaisier, the FDA’s Associate Commissioner for Regulatory Affairs; and Jason R. Wojdylo, Acting Chief Deputy U.S. Marshal for the Northern District of Illinois. The government is represented by Assistant U.S. Attorney Ernest Y. Ling.
“When dietary supplement manufacturers deviate from proper manufacturing requirements, they put the public health at risk,” said U.S. Attorney Lausch. “The U.S. Attorney’s Office will continue to work closely with the FDA to prevent dietary supplement manufacturers from jeopardizing public health.”
“This seizure underscores the agency’s commitment to taking aggressive action when manufacturers distribute adulterated dietary supplements that have the potential to put consumers at risk,” said Associate FDA Commissioner Plaisier. “The FDA has a variety of enforcement tools at its disposal, and when products don’t comply with FDA regulations, we will not hesitate to take appropriate action.”
“Were it not for civil asset forfeiture, these products would remain in commerce and a danger to the community,” said Acting Chief Deputy U.S. Marshal Wojdylo. “Civil forfeiture ensures that no individual or company profits from misconduct, especially when that profit comes from putting the citizens of our communities at risk.”
According to the civil complaint, the FDA earlier this year conducted an inspection of Life Rising’s facility and observed, among other things, significant and continuing deviations from the dietary supplement manufacturing regulations, many of which were similar or identical to violations noted during a prior FDA inspection of Life Rising in 2016 and in a warning letter the FDA issued to Life Rising in 2017. The FDA inspection found that the company failed to establish product specifications for the identity, purity, strength, and composition of each finished batch of dietary supplement. The company also lacked written procedures for pest control, and for maintaining, cleaning, and sanitizing equipment that came in contact with the dietary supplements, according to the FDA.
The FDA last month issued an Administrative Detention Order to prevent the products from reaching consumers until they could be seized. The FDA also issued a safety alert for three Life Rising products (Life Rising Holder-W Holder Warmer capsules, Life Rising NECK-ND Neck Clear capsules, and HoliCare Metabolism Cleansing tablets) because those products may be contaminated with lead. These products were recalled by Life Rising on May 2, 2019, shortly before the FDA’s safety alert.
The FDA discourages consumers from purchasing or using dietary supplement products bearing brand names Life Rising, Holicare, or HopeStream. Health care professionals and consumers should report to the FDA any adverse events related to Life Rising’s products by completing and submitting the report online at www.fda.gov/medwatch/report.htm, or by downloading the form, completing it, and faxing it to 1-800-FDA-0178.
The public is reminded that a complaint contains only allegations and is not evidence of liability. The government has the burden of proving the civil case by a preponderance of the evidence.
Fayetteville Man Sentenced to More Than 13 Years for Drug Distribution and Firearm OffensesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced LUIS JOEL ROBLES LATORRES, 42, of Fayetteville, North Carolina, to 162 months imprisonment, followed by 5 years of supervised release.
LATORRES was named in a 12-count Indictment filed on December 12, 2017, and on July 9, 2018, he pled guilty to one count of Conspiracy to Distribute and Possess with the Intent to Distribute 5 Kilograms or More of Cocaine and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
In 2015, the Fayetteville Police Department, the Sampson County Sheriff’s Office, and the Federal Bureau of Investigation identified members of a Puerto Rican drug trafficking organization (DTO) operating in Cumberland and Sampson counties. Surveillance, wire intercepts, and confidential sources of information (CSIs) were used to identify multiple drug traffickers working in connection with the DTO. Specifically, the investigation identified LATORRES as one of the leaders within the DTO.
Agents began receiving information about the DTO from CSI #1. Specifically CSI #1 identified LATORRES as the individual responsible for arranging cocaine shipments from Puerto Rico. LATORRES was also responsible for collecting drug proceeds and sending them back to the DTO in Puerto Rico.
On November 3, 2017, agents intercepted multiple calls in which LATORRES arranged the purchase of 1.5 kilograms of cocaine. Surveillance units followed the source to LATORRES’ residence in Fayetteville and then to a restaurant parking lot. Agents subsequently stopped the vehicle driven by an individual affiliated with the drug trafficking organization and seized a black bag containing $45,000 in U.S. Currency.
The investigation established that between November 2014 and September 2017, LATORRES conservatively distributed more than 165 kilograms of cocaine. Additionally, the evidence established that LATORRES possessed a handgun during multiple drug transactions with co-conspirators. LATORRES also utilized two individuals to receive and store large quantities of cocaine at their residences.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF) named Operation La Vida Loca. 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Fayetteville Police Department, the Federal Bureau of Investigation, the Sampson County Sheriff’s Office, and the Wilmington Police Department. Assistant United States Attorney Scott A. Lemmon represented the government.
Environment and Natural Resources Division Releases Accomplishments Report for FY2018Read the Press Release
Today, the Department of Justice’s Environment and Natural Resources Division (ENRD) released its Accomplishments Report for Fiscal Year (FY) 2018. The report, which is published annually by ENRD, highlights the division’s strong enforcement of our nation’s environmental laws, defense of government programs that strengthen the country’s energy independence and national security, and close collaboration with states and tribes.
“I am pleased to share the 2018 accomplishments of the Environment and Natural Resources Division of the United States Department of Justice,” said Assistant Attorney General Jeffery Clark. “The Division achieved many impressive enforcement successes in fiscal year 2018, and I am immensely proud of the hard work of our extraordinary and dedicated attorneys and staff who made these accomplishments possible. I look forward to continuing the important work of the Division in achieving our mission together in 2019 and beyond.”
This year, ENRD focused on several key objectives: vigorously enforcing the pollution abatement and wildlife protection laws of the United States, particularly in cases involving fraud or abuse; promoting energy independence and economic growth by defending the reduction of regulatory burdens and supporting infrastructure development; strengthening national security and border protection; promoting cooperative federalism; and protecting the public fisc.
In fiscal year 2018, ENRD worked on approximately 3,800 cases and matters, while maintaining a robust docket of over 6,750 cases and matters. The Division obtained over $260 million in civil and criminal fines, penalties, and costs recovered. The estimated value of federal injunctive relief obtained — including cleanup and pollution-prevention actions funded by private parties — exceeded $3.3 billion.
ERND defended legal challenges to the Trump Administration’s energy policies and regulatory reform agenda. By defending the actions of our client agencies, the Division plays a critical role in paving the way for infrastructure and energy security projects that will strengthen the U.S. economy and facilitate border control and military operations to protect our national security.
In addition, the Division secured 30 CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) settlements and judgments. The settlements and judgments brought on behalf of the United States Environmental Protection Agency (EPA) obtained clean-up work estimated to cost more than $170 million and over $88 million in costs previously expended by EPA. For example, the consent decree in United States v. Doe Run Resources Corporation (E.D. Mo.), a settlement signed by the United States, the State of Missouri, and the Doe Run Resources Corporation, requires the company to excavate lead-contaminated soil on approximately 4,100 affected residential properties.
ENRD continued its successful efforts to ensure the integrity of the renewable fuels program through prosecutions of companies that knowingly cheat the federal treasury and the American public through the sale of fraudulent Renewable Identification Numbers (RINs), credits that reflect a volume of renewable fuel manufactured. The Division added to its success in 2018 by convicting four defendants who were sentenced to lengthy prison terms (totaling 279 months of imprisonment) and ordered to pay over $65 million in restitution and forfeit $12.5 million for various multistate schemes to defraud RIN buyers and U.S. taxpayers.
“I am committed to continuing the good work of our Division, defending the rule of law, and promoting the President’s agenda of regulatory reform. We will fairly enforce our Nation’s environmental laws, focusing on bad actors who aim to get an advantage over others by cheating the system,” Assistant Attorney General Clark added.
The report also recognizes the important contributions of ENRD’s front office leadership: Principal Deputy Assistant Attorney General Jonathan Brightbill; Deputy Assistant Attorneys General Jean Williams, Bruce Gelber, Eric Grant, and Lawrence VanDyke; and Counsel and Chief of Staff Corinne Snow.
Drug Dealer Illegally Armed with Nine Firearms Sentenced to Twelve Years in PrisonRead the Press Release
A former bank robber who armed himself with nine firearms to protect his extensive drug dealing business, was sentenced today in U.S. District Court in Seattle to twelve years in prison for three federal felonies, announced U.S. Attorney Brian T. Moran. KEVIN TA, 31, of Des Moines, Washington, came to the attention of law enforcement in May 2018, when two Burien brothers overdosed on fentanyl within hours of each other. One brother did not survive. Electronic communications between TA and one victim suggested TA supplied the drugs. U.S. District Judge John C. Coughenour imposed five years of supervised release to follow the prison term.
“This defendant continued to deal his poison even after being sent a photo of one of his customers in a hospital bed on life support,” said U.S. Attorney Brian T. Moran. “This sentence protects the community from someone who illegally stockpiled firearms, was blinded by greed, and showed callous disregard for those whose addiction increased his profits.”
According to records filed in the case, following the overdose death, the King County Sheriff’s Office and the Bellevue Police Department moved quickly to build a case against TA and obtain search warrants. When law enforcement searched his residence and car on June 21, 2018, they seized seven firearms from his bedroom closet and found significant quantities of methamphetamine, heroin and fentanyl pills. In TA’s car they found two additional firearms and additional drugs.
When investigators reviewed TA’s electronic messages and social media posts, they found him bragging about the money he made dealing fentanyl. The mother of the overdose victim sent TA information and pictures via text about her son’s medical condition, and death from the overdose. TA did not react or slow his dealing when confronted by the fact that a customer had died. The brothers had not intended to purchase fentanyl, and did not know it was in the drugs they consumed.
TA was prohibited from possessing any firearms after serving a 31-month state prison sentence for bank robbery. TA pleaded guilty to being a felon in possession of firearms, possession of controlled substances with intent to distribute and possession of a firearm in furtherance of drug trafficking. The third count carries a mandatory 5 year sentence to run consecutive to any other sentence.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, DOJ leadership announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was brought through the coordinated investigation and prosecution of the King County Sheriff’s Office, Bellevue Police Department, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Drug Enforcement Administration (DEA), the King County Prosecuting Attorney’s Office and the U.S. Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Jessica Manca.
Delaware man admits to heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Terrance B. Fletcher, of Dover, Delaware, has admitted to distributing heroin, United States Attorney Bill Powell announced.
Fletcher, also known as “Flex,” age 24, pled guilty to one count of “Possession with Intent to Distribute Heroin.” Fletcher admitted to distributing heroin in Berkeley County in February 2015.
Fletcher faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative; the West Virginia State Police Bureau of Criminal Investigations; the Berkeley County Sheriff’s Office; and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Defendant Who Conspired to Murder U.S. Soldiers Sentenced to 26 Years ImprisonmentRead the Press Release
Earlier today, in federal court in Brooklyn, Faruq Khalil Muhammad ‘Isa was sentenced to 26 years imprisonment to be followed by a lifetime of supervised release by United States District Judge Roslynn R. Mauskopf for his role in conspiring to murder U.S. soldiers in Iraq. ‘Isa pleaded guilty to the charge of conspiring to kill Americans abroad in March 2018. The Court entered a judicial order of removal to Canada.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director-in-Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the New York City Police Department (NYPD) announced the sentence.
“Today’s sentence brings some measure of earthly justice to an individual involved in the deaths of five service members, but it cannot begin to compensate for the evil he contributed to or alleviate the pain of those families whose lives he changed forever,” said Assistant Attorney General Demers. “We in the National Security Division are inspired in our work by those who put their lives on the line to keep us safe.”
“With today’s sentence, ‘Isa has been held accountable for his role in a deadly conspiracy that resulted in the tragic loss of five U.S. soldiers in Iraq,” stated United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force, will take every step necessary to apprehend and prosecute terrorists, wherever they are located, in furtherance of our fundamental mission of protecting the American people.”
“Muhammad ‘Isa’s efforts to facilitate a suicide attack, one that ultimately resulted in the death of five young American soldiers in Iraq, has landed him a sentence of more than two decades behind bars,” said FBI Assistant Director-in-Charge Sweeney. “While this sentence is significant, it doesn’t come close to mitigating the pain and suffering these soldiers’ families will face for the rest of their lives. As this case comes to a close, let us remember the names of those who were murdered that day, and vow to never forget the daily sacrifices made by the brave men and women of the U.S. armed forces and their families.”
“The NYPD will do everything in its power to combat terror, and to support the brave men and women serving our country overseas,” said NYPD Commissioner O’Neill. “This includes defeating deadly terrorist conspiracies that target U.S. troops. I want to commend our partners in the U.S. Attorney’s Office and the FBI for helping to bring Mr. ‘Isa’s to justice for his role in this tragic and cowardly act.”
According to court documents, the defendant was a member of a multinational terrorist network that conducted multiple suicide bombings in Iraq. The network orchestrated an attack on the United States Military’s Forward Operating Base Marez (FOB Marez) in Mosul, Iraq, on April 10, 2009. A truck laden with explosives drove to the gate of FOB Marez and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base. The truck detonated alongside the last vehicle in the U.S. convoy, leaving a 60-foot crater in the ground. Five American soldiers were killed in the blast. They are: Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, from Cyprus, California.
While residing in Canada, the defendant was in communication with Syria- and Iraq-based members of the facilitation network, as well as certain individuals who conducted the April 10, 2009 attack, as well as a group of individuals whose efforts to travel to Iraq to conduct suicide attacks were ultimately unsuccessful. The defendant knowingly undertook efforts to assist the prospective suicide bombers achieve their desired result by suggesting a contact to facilitate travel for the would-be attackers from Syria into Iraq, as well as by offering words of encouragement and religious guidance.
‘Isa has been incarcerated since his extradition from Canada in January 2015.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Alexander A. Solomon is in charge of the prosecution with the assistance of the National Security Division’s Counterterrorism Section.
Defendant Sentenced to 26 Years’ Imprisonment for Conspiring to Murder Five U.S. SoldiersRead the Press Release
Earlier today, in federal court in Brooklyn, Faruq Khalil Muhammad ‘Isa was sentenced to 26 years’ imprisonment to be followed by a lifetime of supervised release by United States District Judge Roslynn R. Mauskopf for his role in conspiring to murder U.S. soldiers in Iraq. ‘Isa pleaded guilty to the charge in March 2018. The Court entered a judicial order of removal to Canada.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, ‘Isa has been held accountable for his role in a deadly conspiracy that ultimately contributed to the tragic loss of five U.S. soldiers in Iraq,” stated United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force, will take every step necessary to apprehend and prosecute terrorists, wherever they are located, in furtherance of our fundamental mission of protecting the American people.”
“Today’s sentence brings some measure of earthly justice to an individual involved in the deaths of five service members, but it cannot begin to compensate for the evil he contributed to or alleviate the pain of those families whose lives he changed forever,” said Assistant Attorney General Demers. “We in the National Security Division are inspired in our work by those who put their lives on the line to keep us safe.”
“Muhammad ‘Isa’s efforts to facilitate a suicide attack, one that ultimately resulted in the death of five young American soldiers in Iraq, has landed him a sentence of more than two decades behind bars,” stated FBI Assistant Director-in-Charge Sweeney. “While this sentence is significant, it doesn’t come close to mitigating the pain and suffering these soldiers’ families will face for the rest of their lives. As this case comes to a close, let us remember the names of those who were murdered that day, and vow to never forget the daily sacrifices made by the brave men and women of the U.S. armed forces and their families.”
“The NYPD will do everything in its power to combat terror, and to support the brave men and women serving our country overseas,” stated NYPD Commissioner O’Neill. “This includes defeating deadly terrorist conspiracies that target U.S. troops. I want to commend our partners in the U.S. Attorney’s Office and the FBI for helping to bring Mr. ‘Isa to justice for his role in this tragic and cowardly act.”
The defendant was a member of a multinational terrorist network that helped those who wished to carry out suicide bombings travel to Iraq. On April 10, 2009, terrorists associated with the network carried out an attack on the United States Military’s Forward Operating Base Marez (“FOB Marez”) in Mosul, Iraq. Terrorists drove a truck laden with explosives drove to the gate of FOB Marez, and exchanged fire with Iraqi police officers guarding the base and then with an American convoy exiting the base. The truck detonated alongside the last vehicle in the convoy, leaving a 60-foot crater in the ground. Five American soldiers were killed in the blast: Staff Sergeant Gary L. Woods, 24, of Lebanon Junction, Kentucky; Sergeant First Class Bryan E. Hall, 32, of Elk Grove, California; Sergeant Edward W. Forrest Jr., 25, of St. Louis, Missouri; Corporal Jason G. Pautsch, 20, of Davenport, Iowa; and Army Private First Class Bryce E. Gaultier, 22, of Cyprus, California.
While residing in Canada, the defendant communicated with Syria- and Iraq-based members of the terrorist network, including certain individuals who conducted the April 10, 2009 attack. In those communications, the defendant suggested a contact to facilitate travel for the attackers from Syria into Iraq, in addition to offering words of encouragement and religious guidance. He also communicated with a group of prospective suicide bombers whose efforts to travel to Iraq were ultimately unsuccessful.
‘Isa has been incarcerated since his extradition from Canada in January 2015.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Alexander A. Solomon is in charge of the prosecution with the assistance of the National Security Division’s Counterterrorism Section.
The Defendant:
FARUQ KHALIL MUHAMMAD ‘ISA
Age: 51
Toronto, CanadaE.D.N.Y. Docket No. 11-CR-819 (RRM)
Defendant Forfeiting more than $1 Million and Pleading Guilty to Gambling ChargeRead the Press Release
WICHITA, KAN. - Wichita business owner Brandon Steven pleaded guilty today to a federal gambling charge and agreed to forfeit more than $1 million, U.S. Attorney Stephen McAllister said. He was sentenced to three years probation and ordered to perform 200 hours of community service.
Steven, 45, Wichita, Kan., pleaded guilty to one count of being an accessory after the fact to the unlawful transmission of wagering information. In his plea, Steven admitted he acted in cooperation with co-defendant Daven Flax, who was conducting illegal private poker games. Participants were notified via text messaging about the games. The texts also contained information about payments or collections of money. After games, Steven concealed the involvement of Flax and others by hiding handwritten ledgers or computerized records detailing gambling credits, earnings and obligations of the gambling business.
McAllister commended the FBI, the Internal Revenue Service, Assistant U.S. Attorney Mona Furst and Assistant U.S. Attorney Aaron Smith.
Convicted felon from Monroe pleads guilty to illegally possessing loaded pistolRead the Press Release
MONROE, La. – Derrick Antonio Hall, 37, of Monroe, pleaded guilty today before U.S. District Judge Terry Doughty to possession of a firearm by a convicted felon, announced U.S. Attorney David C. Joseph.
According to the guilty plea, Hall drove to a gas station in Monroe on July 20, 2018, and left the car idling with loud music playing as he entered the gas station. Monroe police arrived shortly thereafter and observed the unattended vehicle. When the officers approached Hall upon his return to the vehicle, they smelled marijuana coming from inside the car and saw a bag of suspected marijuana. During a search of the vehicle, an officer found a Glock, Model: G26, 9 mm-caliber pistol with an extended magazine containing 24 rounds of ammunition.
Hall was convicted in 2001 in state court for carrying a firearm on school property and sentenced to three years in prison. He was also convicted in 2004 in state court for distribution of cocaine and sentenced to five years in prison. Under federal law, a felon is prohibited from possessing a firearm or ammunition.
Hall faces up to 10 years in prison, three years of supervised release and a $250,000 fine. Sentencing is scheduled for October 2, 2019.
The ATF and Monroe Police Department conducted the investigation. Assistant U.S. Attorney Leon H. Whitten is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Consultant Agrees to Pay $751,571 to Settle False Claims Act Liability for Alleged Falsification of Snap Quality Control DataRead the Press Release
WASHINGTON -- Joseph H. Harrington, United States Attorney for the Eastern District of Washington announced that Julie Osnes and her company, Julie Osnes Consulting LLC (together “Osnes”), of Pierre, South Dakota, agreed to pay the United States $751,571 to resolve allegations that they violated the False Claims Act by causing states to submit false quality control data for the Supplemental Nutrition Assistance Program (SNAP).
Until 2008, SNAP was known as the food stamp program. Under SNAP, the U.S. Department of Agriculture (USDA) provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually. Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.
Between 2008 and 2013, Osnes provided consulting services and advice regarding SNAP quality control to various states. The USDA reimburses states for half of their administrative and quality control expenses in administering SNAP, including costs of consultants like Osnes. The USDA also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that Osnes’ advice and recommendations improperly biased the SNAP quality control processes of the states with which Osnes consulted, in violation of USDA rules. Specifically, the United States alleged that between 2008 and 2013, pursuant to Osnes’ recommendations and advice, certain states manipulated and biased the quality control process to falsely reduce their error rate, resulting in the states receiving bonuses to which they were not entitled based on the false and biased quality control information.
Thus far, the United States has reached settlements with three of the states at issue, Virginia, Wisconsin, and Alaska, resulting in recoveries collectively of more than $17 million.
United States Attorney Harrington said: “I am deeply troubled that these actions involved state agencies and a program designed to provide vulnerable and needy residents with essential food and nutrition services in Washington State and across the nation. This office will continue to work closely with our law enforcement partners to ensure that each individual and organization that manipulated and defrauded SNAP in this manner is held fully accountable.”
“SNAP provides vital assistance to needy families,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This settlement demonstrates the Department of Justice’s commitment to ensuring that taxpayer funds are properly spent so that the public can have confidence in the integrity of important programs like SNAP.”
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this important investigation,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG, as well as concerns relayed by the employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. This settlement is particularly significant due to the message it relays to those contractors and consultants whose business relationships impact Government programs, and advice and actions ultimately result in the misrepresentation of facts to Federal authorities and fraud in programs meant to benefit those in need.”
The settlement was the result of a joint investigation conducted by the USDA Office of Inspector General, the U.S. Attorney’s Office for the Eastern District of Washington, and the Department of Justice’s Civil Division, Commercial Litigation Branch. The investigation arose out of a nationwide audit of SNAP QC processes by the USDA-OIG. The investigation for the U.S. Attorney’s Office for the Eastern District of Washington was handled by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Connecticut Man Sentenced for Drug Offense in St. AlbansRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Andre Hudson, 40, of Hartford, Connecticut, was sentenced yesterday in United States District Court in Rutland, Vermont, to a total of 54 months in prison. Hudson previously pleaded guilty to possession of heroin and cocaine base with intent to distribute, and admitted to violating terms of his supervised release from a prior federal offense. Chief U.S. District Judge Geoffrey W. Crawford sentenced Hudson to 30 months for the heroin and cocaine base possession, and 24 months for the supervised release violations, to be served consecutively. Hudson will serve a three year term of supervised release upon his release from prison.
According to court records and proceedings, on November 2, 2017, Hudson was found in a residence on North Elm Street in St. Albans, Vermont, where co-defendant Jeffry Robtoy lived. In the bedroom where Hudson was found, law enforcement located over 7 grams of a mixture containing fentanyl, over 14 grams of cocaine base, and $7,732 in U.S. currency. Evidence from Hudson’s cell phone shows that he was corresponding with Robtoy about drug sales in the preceding weeks. Hudson had previously served a nine year federal prison sentence for drug trafficking in Connecticut, and was on supervised release at the time of this offense.
In May 2019, co-defendant Robtoy was sentenced to a term of 42 months in prison and three years of supervised release.
Assistant U.S. Attorneys Nicole Cate and Jonathan Ophardt handled the prosecution. Hudson was represented by Mark Kaplan, Esq. U.S. Attorney Christina E. Nolan commended the efforts of the Drug Enforcement Administration and the St. Albans Police Department in the investigation and prosecution of Hudson and Robtoy. She stated: “This case is an example of how the U.S. Attorney’s Office works closely with our federal, state, and local law enforcement partners to prosecute drug trafficking throughout Vermont, including by focusing on repeat offenders who travel from out of state to distribute deadly drugs here.”
Clinton Drug Dealer Sentenced to 15 Years in Federal Prison for Possession with Intent to Distribute Crack Cocaine and MarijuanaRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Russell Lee Battle, age 54, of Clinton, Maryland, on June 17, 2019, to 15 years in federal prison, followed by three years of supervised release, for possession with intent to distribute crack cocaine and marijuana.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
U.S. Attorney Robert K. Hur stated, “Guns and drugs take far too many lives in our communities. All too often, guns and drugs go hand in hand—and both are killers. Federal, state, and local law enforcement are united in our commitment to get guns, drugs, and violent criminals off our streets and to reduce violent crime in our neighborhoods.”
According to Battle’s plea agreement, early in the morning of January 12, 2018, Prince George’s County Police officers stopped the vehicle Battle was driving for not having illuminated tag lights. Battle was the sole occupant of the vehicle and the vehicle was registered to Battle.
While speaking with the officer on the driver’s side of the vehicle, Battle was attempting to locate his vehicle registration when he pulled a digital scale from the center console and placed it on the passenger seat. The officer positioned on the passenger side of the vehicle also observed the digital scale. Battle claimed that he did not know what the scale was and handed it to the officer, who saw that it contained a white powder-like substance and cut marks. When Battle was not able to find his registration, the officers returned to their cruiser and determined that Battle had previous narcotics-related convictions and had falsely claimed that he didn’t know what the digital scale was.
The officer then conducted a search of Battle’s vehicle and recovered two semi-automatic firearms, each loaded with at least 20 rounds of ammunition, as well as an additional extended magazine. Officers also recovered three bags of crack cocaine, totaling approximately 9.8 grams. One of the bags contained 10 small baggies, each with crack cocaine inside. Officers also recovered 21.7 grams of marijuana packaged into nine individual baggies, as well as $637 in cash.
Battle admitted that he intended to distribute the crack cocaine and marijuana found in his vehicle.
United States Attorney Robert K. Hur praised the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kelly O. Hayes and Erin Pulice, who prosecuted the case.
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Baltimore Felon Sentenced to 15 Years in Federal Prison on Charges of Unlicensed Dealing in Firearms and Illegal Possession of Firearms and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Terrel Edward Elliott, Jr., age 24, of Baltimore, Maryland, today to 15 years in federal prison, followed by three years of supervised release, for unlicensed dealing in firearms and for being a felon in possession of firearms and ammunition. Elliott admitted that he was dealing in firearms less than two months after his release from prison for a first-degree assault conviction in Howard County.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Lisa D. Myers of the Howard County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
“Terrel Elliott contributed to our community’s alarming problem of gun violence by putting firearms in the hands of people intent on violence,” said U.S. Attorney Robert K. Hur. “Statistics show that gun violence is fueled by repeat offenders, like Terrel Elliott, illegally possessing and selling firearms. Now he will spend 15 years in federal prison, where there are no suspended sentences and no parole—ever. Put down the guns and save a life—maybe even your own.”
According to his plea agreement, Elliott was convicted of first-degree assault in Howard County and was sentenced to eight years in prison, with six years and a half years of that sentence suspended, and eighteen months of unsupervised probation. Elliott was also given a supervised probation period of five years. Elliott was released after serving his sentence on September 24, 2016.
As detailed in his plea agreement, Elliott was arrested on April 14, 2017 in possession of drugs, 14 .22-caliber bullets and a handgun with an obliterated serial number. On November 13, 2017, Elliott pleaded guilty in Howard County to possession of a firearm by a convicted felon. On February 12, 2018, Baltimore Police officers were surveilling Elliott, who had an open warrant for his arrest, when they saw him leave his residence and get into a car with a woman. Officers performed a traffic stop to execute the arrest warrant, but Elliott ran away. Officers gave chase and Elliott was captured at the back door of his residence and arrested. Officers recovered a handgun from the path Elliott took.
During the ensuing investigation, law enforcement obtained a search warrant for Elliott’s Instagram account. Law enforcement recovered multiple photographs of Elliott in possession of numerous firearms, as well as Instagram messages with prospective firearm customers, including juveniles and family members. One of the earliest photos posted on Elliot’s Instagram account was of Elliott with a gun on November 8, 2016—less than two months after he was released from prison. In January 2018, Elliott sold a gun to a minor and later messages reflect the discussion of more gun sales to the minor. Elliott’s Instagram posts include more than 4,700 pages and contains numerous references to selling guns for profit. Elliott admitted that between eight and 24 firearms were involved in his offenses, and that he knew or had reason to believe that the guns would be used or possessed in connection with other felonies, including robberies and drug trafficking.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the Howard County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Michael Goldsticker, who prosecuted the case.
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Arizona Man Sentenced to 30 Years for Methamphetamine Trafficking and Money Laundering ConspiracyRead the Press Release
SYRACUSE, NEW YORK - Alonzo Harris, 44, of Youngtown, Arizona, was sentenced today to thirty (30) years imprisonment for his conviction for federal drug trafficking and money laundering charges, announced United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division. In imposing sentence, Chief United States District Judge Glenn T. Suddaby also ordered the defendant to serve ten years of supervised release following his term of incarceration, and to forfeit $873,592.99 in unlawful proceeds from the criminal activity.
Alonzo Harris was convicted following a four-day jury trial in October 2018. The evidence at trial proved that Harris used the U.S. Postal Service to send more than fifty multi-pound packages of methamphetamine from the Phoenix, Arizona area to Broome County, New York, where other members of his trafficking organization distributed the drugs. The trial evidence also established that Harris, along with his co-conspirators, generated hundreds of thousands of dollars in proceeds from this illegal drug activity.
The conviction in this case was part of Operation Hailstorm, a multi-agency investigation that resulted in charges against ten individuals involved in illegal methamphetamine-trafficking activity. The other nine defendants all previously pled guilty and were sentenced.
This case was investigated by the United States Drug Enforcement Administration (DEA), the United States Postal Inspection Service, the New York State Police, the Broome County Special Investigations Unit Task Force, and the Vestal (New York) Police Department and was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Michael Gadarian.
41 Month Prison Term Imposed for a Stabbing That Resulted in Serious Bodily InjuryRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Josiah Jacob Arquette, age 20, of Toppenish, Washington, and an enrolled member of the Confederated Bands and Tribes of the Yakama Nation, was sentenced after having pleaded guilty on September 11, 2018, to assault resulting in serious bodily injury. United States District Judge Salvador Mendoza, Jr. sentenced Arquette to a 41-month term of imprisonment, to be followed by a three-year term of court supervision after he is released from federal prison. Judge Mendoza imposed restitution in the amount of $256.35.
According to information disclosed during court proceedings, on March 17, 2018, at approximately 6:00 p.m., Arquette approached a home in Toppenish and rang the doorbell. A resident of the home answered the door. Arquette asked about a missing dog, but the resident said he was unable to help. Arquette then pushed the door completely open and used a knife to stab the resident in the abdomen and in the hand. Arquette fled the residence and stole a truck located nearby. Arquette led police on a high speed chase for twelve miles. Law enforcement personnel were ultimately able to use spike strips to puncture the truck tires, resulting in Arquette crashing into a field where he was arrested.
United States Attorney Joseph H. Harrington stated: “I commend the Yakama Nation Police Department, Zillah, Granger, and Sunnyside Police Departments, the Washington State Patrol, and the FBI for their commitment to attacking and reducing violent crime. This successful prosecution is yet another example of the superb work that can be accomplished when tribal, local, state, and federal law enforcement officers work in partnership investigating violent crimes occurring within the exterior boundaries of the Yakama Reservation. Each of these law enforcement agencies demonstrate their dedication to public safety day in and day out.”
The Federal Bureau of Investigation, Yakima County Sheriff’s Office, Granger Police Department, Washington State Patrol, Yakama Nation Police Department, Zillah Police Department, and Sunnyside Police Department conducted the investigation of this matter. The case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
17 June 2019
“Scramble” Dealer Sentenced to 20 Years in PrisonRead the Press Release
RICHMOND, Va. – A Caroline County man was sentenced today to 20 years in prison for distribution of “scramble”, a mixture of fentanyl and heroin, the use of which resulted in an overdose.
“In spite of nearly killing his best friend and the overdose of his wife, Rosie continued to sell dangerously strong drugs,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The type of drug that Rosie pushed is at the center of the opioid crisis in this country, which has no boundaries and affects the young and the old, the rich and the poor, all races, all genders. It is destroying generations of Americans and illicit fentanyl is leading the charge.”
According to court documents and statements made in court, Gregory Kenneth Rosie, 43, was a distributor of scramble starting before August 2017 and continuing through the time of his arrest on Aug. 22, 2018. In November 2017, Rosie distributed a quantity of scramble to his friend who used the substance and overdosed. Rosie and Marcus Watson loaded the man into a vehicle and dropped him off at the Ladysmith Volunteer Fire Department, where the man was resuscitated. Approximately two weeks later, Rosie’s wife, Elizabeth Rosie, died in their Caroline County home of an overdose.
Marcus Watson, 43, of Fredericksburg, was sentenced on June 6 to more than three years in prison for his role in Rosie’s drug trafficking activities.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, Tony Lippa, Caroline County Sheriff, and Steve F. Dempsey, King George County Sheriff, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-90.
Young Serial Bank Robber ConvictedRead the Press Release
CORPUS CHRISTI, Texas – A 19-year-old resident of Wilmer has been convicted of multiple bank robberies and brandishing a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Markeist Daquon Reed pleaded guilty today to a total of three counts of bank robbery involving three different banks and one count of brandishing a firearm during a crime of violence.
The charges stem from a series of bank robberies that occurred Oct. 5, Oct. 19 and Oct. 25, 2018, at the BB&T Bank on Park Lane in Dallas, Value Bank Texas on South Staples in Corpus Christi and BBVA Compass Bank on Ayers Street in Corpus Christi, respectively.
In each instance, a male - later identified as Reed - entered the banks and approached an employee demanding money. During the last robbery, Reed carried with him and pointed an AK-47 style rifle as he demanded the money from the bank employee. Reed was later arrested during a traffic stop. At that time, law enforcement recovered the rifle and items linking him to the robberies.
Senior U.S. District Judge John Rainey accepted the plea today and set sentencing for Sept. 16, 2019. At that time, Reed faces up to 20 years imprisonment and a possible $250,000 maximum fine for each of the bank robberies and another seven years for brandishing a firearm during a crime of violence, which must be served consecutively to any other conviction.
Reed has been and will remain in custody pending that hearing.
The FBI and police departments in Corpus Christi and Dallas conducted the investigations. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Woman Pleads Guilty to Stealing from Her Elderly In-LawsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces today that ELIZABETH WILLIAMSON of Columbus County, pled guilty to one count of bank fraud and one count of aggravated identity theft.
From around 2015 to 2017, WILLIAMSON helped her elderly in-laws with day-to-day tasks, managed their medication, and payed their bills. WILLIAMSON also stole approximately $96,500 from their bank accounts. To assist in carrying out her scheme, WILLIAMSON submitted a Power of Attorney to BB&T for use on the their bank accounts, stole their checkbooks, wrote checks listing herself as payee, and forged their signatures on the checks. WILLIAMSON also used their bank account information to pay her bills and shop online. In order to carry out her scheme and avoid detection, WILLIAMSON submitted a fraudulent change of address form to the United States Post Office redirecting all of her in-laws’ mail from their home to her home. On at least five occasions, WILLIAMSON stole checks issued and mailed to her in-laws and deposited then into her own State Employees’ Credit Union account. It was also determined that WILLIAMSON stopped refilling her in-laws’ medication and replaced the medication with vitamins.
Investigation of this case was conducted by the U.S. Postal Inspection Service. Special Assistant United States Attorney Tamika Moses is prosecuting the case for the government.
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1- 855-4VICTIM (1-855-4842846), or contact the Elder Justice Coordinator at the U.S. Attorney’s Office for the Eastern District of North Carolina at (919) 856-4530.
Wheeling woman sentenced for distributing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA –Lauren Hedges, of Wheeling, West Virginia, was sentenced today to 30 months incarceration for distributing methamphetamine near a school, United States Attorney Bill Powell announced.
Hedges, age 26, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine within 1,000 Feet of a Protected Location” in March 2019. Hedges admitted to distributing methamphetamine within 1,000 feet of Wheeling Central Catholic High School in November 2018.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Waterbury Grocery Store Worker Pleads Guilty to Defrauding Federal Food Stamp ProgramRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on June 14, 2019, MUHAMMAD SHAHBAZ, 50, of Jersey City, New Jersey, pleaded guilty in Hartford federal court to food stamp fraud.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to court documents and statements made in court, Shahbaz worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury. Shahbaz was related to the store owner and often worked shifts later in the day. In 2015 and 2016, Shahbaz and others illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items, including cigarettes, a tall glass bong and other items. Shahbaz charged the customers’ food stamp cards approximately double the value for these illegal transactions.
Given the stock of eligible food items at the store, the number of registers and the customer amenities, it is estimated that WB Trade Fair Grocery could lawfully redeem, at most, between $120,000 to $240,000 per year in food stamp benefits. However, during an approximately 18-month period in 2015 and 2016, food stamp redemptions at the store totaled approximately $3.2 million.
Shahbaz is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on October 2, 2019, at which time he faces a maximum term of imprisonment of five years.
Raul Carlos Monarca-Gonzalez, Tallat Mahmood and Tahir Shahzad, who all who worked at WB Trade Fair Grocery, previously pleaded guilty to food stamp fraud. Monarca-Gonzalez and Mahmood were each sentenced to 30 months of imprisonment, and Shahzad awaits sentencing.
This matter has been investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia King and Neeraj Patel.
Trial Set for Iowa Man Charged with Child Sex OffensesRead the Press Release
PEORIA, Ill. – Trial is scheduled on July 29, 2019, in Peoria, Ill., for a Monroe County, Iowa, man, Michael E. Shell, who has been indicted on charges of aggravated sexual abuse of a child; travel with intent to engage in illicit sexual conduct; and, sexual exploitation of a child. Shell, 49, of Melrose, Iowa, has been ordered to remain detained in the custody of the U.S. Marshals Service pending trial.
The indictment alleges that from July 2011 and continuing to about July 2012, Shell crossed a state line to engage in sexual acts with a female under the age of 12; that from May 2014 to January 2015, Shell traveled with the intent to engage in illicit sexual conduct with a child; and, from July 2011 to January 2015, Shell engaged in sexually explicit conduct with a child to produce child pornography.
If convicted, the statutory penalty for aggravated sexual abuse of a child is a minimum of 30 years and up to life in prison; travel with intent to engage in illicit sexual conduct carries a penalty of up to 30 years in prison; and, sexual exploitation of a child carries a penalty of at least 15 years and up to 30 years in prison. In addition, each of the offenses carries a potential maximum fine of $250,000.
The charges are the result of a joint investigation by the U.S. Secret Service; the Peoria County Sheriff’s Office; the Canton, Ill., Police Department; the Bloomington, Ill., Police Department; the Monroe County Iowa Sheriff’s Office; Iowa State Patrol; and the Iowa Department of Natural Resources. The government is represented by Assistant U.S. Attorney Paul B. Morris in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Three Men Plead Guilty to Operating A Sweepstakes Scam Impacting Elderly VictimsRead the Press Release
PANAMA CITY, FLORIDA – Three Bay County residents pleaded guilty on June 14, to federal fraud charges stemming from activities meant to induce elderly victims with false promises of sweepstakes prizes. The men each pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud, one count of wire fraud, and one count of mail fraud. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the guilty pleas of Delroy Williams, 52, of Lynn Haven, Vivian Walters, 33, of Lynn Haven, and Jevaughn Williams, 22, of Panama City Beach.
A sentencing hearing for the three men is currently set for August 27, 2019, at 11:00 a.m.
Assistant U.S. Attorneys Michael Harwin and Michelle Daffin are prosecuting the case following a joint investigation by the United States Postal Inspection Service and the Lynn Haven Police Department.
“It is appalling that some individuals consider it acceptable to prey on vulnerable elders, defrauding them of their hard-earned savings,” U.S. Attorney Keefe said. “The U.S. Attorney’s Office will never tolerate such shocking and shameful behavior, and working closely with our federal, state, and local partners we will prosecute such criminals to the full extent of the law.”
Since the late 1990s, telemarketers in Jamaica have been engaging in a scam by contacting victims in the United States and falsely claiming the victims have won large sweepstakes prizes. Victims, who are primarily elderly, are induced to send cash or cash equivalents in order to release their purported prizes. The victims’ funds are often transported by wire transfers and United States Postal Service packages.
Between 2014 and 2017, the defendants conspired together to receive wire transfers and mailed packages from victims, took a percentage of the funds for themselves, and then forwarded the remainder to co-conspirators in Jamaica. Over 40 victims have been identified through wire transfer records and searches of the defendants’ electronic devices.
“In this investigation, U.S. Postal Inspectors labored arduously to bring these individuals to justice. The U.S. Postal Inspection Service works aggressively to investigate fraud schemes that involve the mail and victimizing our most vulnerable citizens” said Miami Division Inspector in Charge Antonio “Tony” Gomez.
Delroy Williams and Vivian Walters pleaded guilty to a fraudulent wire transfer of $1,800 from an 82-year-old victim and inducing an 85-year-old victim to send a U.S. Express Mail package containing $500 cash.
Jevaughn Williams pleaded guilty to a $1,500 fraudulent wire transfer from an 84-year-old victim. Williams also pleaded guilty to inducing a 78-year-old victim to mail $1,400 in postal money orders that were subsequently deposited into his personal bank account.
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 United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Texas family pleads guilty in scheme to obtain multiple Masters tickets for resaleRead the Press Release
AUGUSTA, Ga: Four members of a Texas family have admitted taking part in an elaborate scheme to fraudulently obtain multiple Masters Golf Tournament tickets.
Stephen Michael Freeman, of Katy, Texas, pled guilty to Conspiracy to Commit Wire Fraud in proceedings held in U.S. District Court in Augusta, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. In addition, Freeman’s parents, Steven Lee Freeman and Diane Freeman, of Helotes, Texas, and sister, Christine Oliverson, of San Antonio, Texas, also entered guilty pleas to Conspiracy to Commit Wire Fraud. The charge carries a maximum penalty of 20 years in prison.
In pleading guilty to the charge, Stephen Michael Freeman agrees to a sentence of 36 months in federal prison and has paid community restitution of $157,493.70. At sentencing, the court may accept or reject the plea agreement. Steven Lee Freeman and Diane Freeman agreed to pay community restitution of $59,000 each, and with Christine Oliverson, are subject to sentencing by the court.
The payment of community restitution, negotiated through the Asset Recovery Unit of the U.S. Attorney’s Office, is unprecedented in the Southern District of Georgia, and recognizes that the defendants are returning the proceeds of their crime. The funds from community restitution are dispersed under federal guidelines to qualifying non-profit organizations.
“These profiteering con artists thought they had succeeded in hijacking the Augusta National’s generous ticket lottery system to satisfy their own greed,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “The vigilance of the Augusta National staff and the investigative acumen of the FBI ferreted out the fraud, ensuring justice is served to these cheats for the federal crimes they committed.”
The defendants admitted in court that they used names and addresses from a purchased bulk mailing list to create multiple fraudulent accounts in the Augusta National Golf Club’s online ticket application system. All this occurred without the knowledge or permission of the individuals whose identities were used.
When any applications received notice of ticket awards via the email addresses provided for them, Stephen Michael Freeman or others acting at his direction would create fake identification documents including driver’s licenses, utility bills and credit card statements to persuade the Augusta National to change the winner’s mailing address to one that was under control of the conspiracy. Once the defendants received the tickets at those addresses via U.S. Mail, they would then resell the tickets at a substantial profit. Also, in some cases in which the recipient’s address was unchanged, one or more of the defendants would visit the recipient’s home to persuade them, sometimes with modest payment, to turn over the tickets by claiming they had been sent to the wrong address by mistake.
“This scheme was designed to profit from the resale of tickets, but in the process, it also would have denied legitimate citizens a fair chance to obtain tickets to a prestigious golf tournament,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We hope that this case sends a message that the FBI will make it a priority to investigate these cases, and if you get caught, you will pay the price.”
The case was investigated by the FBI, and was prosecuted for the United States by Assistant U.S. Attorney Tara Lyons and Assistant U.S. Attorney Xavier A. Cunningham, Section Chief of the Asset Forfeiture Recovery Unit of the U.S. Attorney’s Office.
Texas Man Sentenced to Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SAUL ONZURES, 45, of El Paso, Texas, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, on January 20, 2018, an Orange County (N.Y) Sheriff conducted a motor vehicle stop of a tractor-trailer at a toll barrier on Interstate 87 in Newburgh, New York. A search of the truck, which Onzures was driving revealed 10 kilograms of cocaine located in a black backpack under the mattress of the truck. Francisco Castillo, also of El Paso, was a passenger in the truck. The investigation revealed that the cocaine was destined for Henly Feliz Santiago in Torrington, Connecticut.
Onzures has been detained since his arrest. On March 11, 2019, he pleaded guilty to one count of conspiracy to distribute cocaine.
Castillo and Santiago also pleaded guilty. On March 28, 2019, Castillo, 44, was sentenced to 25 months of imprisonment. Santiago awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration and the Orange County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Syracuse Man Sentenced for Possessing a Pistol as a FelonRead the Press Release
SYRACUSE, NEW YORK – Edwin Cuello-Martinez, 32, was sentenced today to serve 57 months in prison to be followed by a 3-year term of supervised release in connection with his conviction for possessing a pistol as a convicted felon, announced United States Attorney Grant C. Jaquith, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Kenton Buckner, City of Syracuse Police Department.
As part of his previous guilty plea, Cuello-Martinez admitted that he possessed a Bryco 9mm semiautomatic pistol when he was stopped by uniformed Syracuse Police Officers at about 3:30 am on July 9, 2018 in the 100 block of Coolidge Avenue, in the City of Syracuse. As the Officers were speaking with Cuello-Martinez and a female companion, he suddenly fled on foot, abandoning his backpack containing the pistol. Following a short chase, Syracuse Police Officers were able to apprehend Cuello-Martinez, whom it was then learned was the subject of an arrest warrant for absconding from the New York State Department of Corrections and Community Supervision (Parole). Cuello-Martinez was previously convicted of five (5) prior felonies and was prohibited by federal law from possessing firearms or ammunition. The Bryco 9mm-semiautomatic pistol possessed by the defendant was inoperable due to a broken firing pin. Also found in the backpack were three live 9mm bullets.
This case was investigated by the City of Syracuse Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and was prosecuted by Assistant U.S. Attorney Richard Southwick, with assistance from the Onondaga County District Attorney’s Office.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the U.S. 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.
Sureño Gang Members Indicted for Distributing Methamphetamine or Being A Felon in Possession of A FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned three indictments on June 13, 2019, against Armando Garcia, aka Thien Quach, 44, of Los Angeles; Manuel Reyes, 35, of Sacramento; Elton Padilla, 35, of Sacramento; Julio Adrian Jiminez-Sevilla, aka "Mudo", 31, of Burns, Oregon[KCS(1] ; Manuel Rubin Perez, aka "Rascal", 33, of Orland, CA; Gregorio Rojas, 28, of Orland, CA; and Jorge Zarate, 23, of Orland, CA, charging them with distributing methamphetamine, U.S. Attorney McGregor W. Scott announced. In addition, Jiminez-Sevilla is charged with being a felon in possession of a firearm. On June 13, 2019, a federal grand jury returned an additional indictment against Erick Stephen Perez, 32, of Orland, CA, charging him with being a felon in possession of a firearm.
According to court documents, defendants Garcia, Reyes, Padilla, Manuel Rubin Perez, Rojas and Zarate are linked to Sureño street gangs that claim allegiance to the Mexican Mafia. The majority of these federal indictments target gang members who allegedly trafficked in narcotics and firearms and held senior positions within their respective organizations. The Garcia, Reyes, Padilla, Jiminez-Sevilla, Manuel Rubin Perez, Rojas, and Zarate indictments also charge conspiracy to distribute methamphetamine.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Federal Bureau of Investigation, California Department of Corrections and Rehabilitation (CDCR) Special Service Unit, CDCR Adult Parole, CDCR High Desert State Prison Investigations, California Highway Patrol, Sacramento Sheriff’s Department, Sacramento County Probation, Sacramento Police Department, Susanville Police Department, Lassen County Sheriff's Department, Bureau of Land Management, North State Major Investigations Team, Glenn County Sheriff's Department, Glenn County Probation, Glenn County Investigation Task Force, Reno Police Department, and Tehama County Sheriff's Office.
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. Assistant United States Attorney Vincenza Rabenn is prosecuting these cases.
This case was also a product of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
If convicted, defendants Garcia, Reyes, Padilla, Jiminez-Sevilla, Manuel Rubin Perez, Rojas, and Zarate face a maximum statutory penalty of life in prison and a $10,000,000 fine. Defendant Erick Perez faces a maximum statutory penalty of 10 years in prison. 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
South Carolina Man Is Sentenced to More Than Three Years for $1 Million Investment Scheme and Tax EvasionRead the Press Release
CHARLOTTE, N.C. – Nickolas M. Godfrey, 41, of Fort Mill, South Carolina, was sentenced today to 37 months in prison for securities fraud, wire fraud, and transactional money laundering in connection with a $1 million investment fraud scheme and a related tax evasion scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Godfrey was also ordered to serve two years under court supervision and to pay restitution of more than $1.6 million.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).
According to filed court documents and today’s proceedings, from 2012 to at least 2015, Godfrey obtained more than $1 million by engaging in a Ponzi scheme through his company, Coast to Coast Business Funding LLC (Coast to Coast), which purportedly provided short-term cash advances to businesses. Over the course of the scheme, Godfrey induced at least 20 victims to invest with Coast to Coast, by falsely representing that the company was successfully generating substantial revenue. Godfrey maintained a website for Coast to Coast, which also falsely represented that the company was accredited by the Better Business Bureau. To further solicit investments from victims, Godfrey made numerous false representations to victims, including promising returns of as much as 73.5%.
Contrary to promises made to victim investors, Godfrey used victims’ money to pay for personal expenditures and for the expenses of his other businesses, and to make Ponzi-type payments to earlier victims.
When victims complained about missed payments and demanded more information, Godfrey tried to appease them by creating fake documents, including fake financial statements for Coast to Coast, and a fake list of clients to which Coast to Coast had purportedly provided financing.
In addition to the investment fraud scheme, Godfrey engaged in in a tax evasion scheme by evading the payment of tax liabilities assessed by the IRS related to his ownership and operation of two hair salons, Bliss Day Spa & Salon (Bliss) in Pineville, N.C., and Alter Ego Salon & Day Spa (Alter Ego) in Charlotte. Godfrey committed tax evasion by, among other things, failing to pay federal employment taxes that he had withheld from the paychecks of employees at Bliss and Alter Ego, and taking multiple steps to thwart the IRS’ collection efforts. For example, Godfrey commingled the amounts withheld from his employees’ paychecks with other business and personal funds, including money obtained from victim investors, and used those funds to pay for personal expenses. Godfrey also lied to IRS employees attempting to collect the unpaid taxes. In addition, Godfrey filed individual U.S. Federal Income Tax Returns for the years 2009 through 2012 that failed to report accurately the net income he received from his businesses.
In imposing the sentence, Judge Cogburn noted the “serious, serious fraud” committed by Godfrey that harmed several ordinary citizens, and the need to deter others from committing similar fraud and tax evasion in the future.
In making today’s announcement, U.S. Attorney Murray thanked the FBI and IRS-CI for their investigation of the case.
Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, handled the prosecution.
Somerset County, New Jersey, Man Sentenced to Seven Years in Prison for Interstate Travel to Engage in Illicit Sexual Conduct and Receipt of Child PornographyRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 84 months in prison for interstate travel to engage in sexual activity with a minor and receipt of images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Stephen Bradley Mell, 53, of Far Hills, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of interstate travel to engage in illicit sexual conduct and one count of receipt of child pornography.
According to documents filed in this case and statements in court:
From July 2017 through December 2017, Mell knowingly traveled in interstate commerce for the purpose of engaging in the production of child pornography and sexual acts with a minor who he knew to be less than 17 years of age. Mell also admitted knowingly receiving child pornography in interstate commerce during the same period.
In addition to the prison term, Judge Martinotti sentenced Mell to five years of supervised release, fined him $40,000 and ordered him to pay restitution of $35,200 and a Justice for Victims of Trafficking Act assessment of $5,000.U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit.
Defense counsel: Robert Bianchi Esq., West Caldwell, New Jersey; David Bruno Esq., West Caldwell; Michael Koribanics Esq., Clifton, New Jersey; and John Whipple, Morristown, New Jersey
Sherman Oaks Men Sentenced and Plead Guilty to Conspiring to Launder Money from Illegal Gambling BusinessRead the Press Release
SACRAMENTO, Calif. — Atir Dadon, 34, of Sherman Oaks, was sentenced on June 14, 2019, to 22 months for conspiring to launder money, and co-defendant Adam Atari, 35, of Sherman Oaks, pleaded guilty today to conspiring to launder money, U.S. Attorney McGregor W. Scott announced.
According to court documents, Dadon and Atari each conspired with other co-defendants to launder the cash proceeds of an illegal gambling business run by Orel Gohar, 28, of San Francisco, and Yaniv Gohar, 35 of Berkeley, that placed and maintained video slot machines at businesses in Northern California, including Sacramento and other locations in the Eastern District of California.
According to court documents, between October 2016 and November 2017, Dadon conspired to launder money with Orel Gohar and Bar Shani, 27, of San Francisco. They agreed that Shani and Dadon would take the cash from the gambling business and use it to pay the workers in their cosmetics business. In exchange, Shani and Dadon would arrange for Orel Gohar to receive checks from the cosmetics business. Dadon indicated in the memo lines on the checks that Orel Gohar had provided consulting and training services when in fact, he had not. They used code words in their conversations about the transactions, referring to the money as bottles of alcohol or other non-cash items. Shani and Dadon laundered over $150,000 from the Gohars’ gambling business. Shani pleaded guilty on April 26.
According to court documents, between January 2015 and December 2017, Atari conspired to launder money with Orel Gohar and Yaniv Gohar. They agreed that the Gohars would use cash from the gambling business to pay Atari’s employees in his home improvement and construction businesses. In exchange, Atari would send checks and electronic transfers from his businesses to Yaniv Gohar. Atari laundered approximately $490,000 from the Gohars’ gambling business. To cover up his money laundering, Atari lied to the FBI and directed his employees to lie to the FBI about the nature of his transactions with the Gohars.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case.
Yaniv Gohar and Orel Gohar fled the United States upon their release in December 2017 and remain at large. Anyone with information about their whereabouts should call the FBI at (916) 746-7000.
Charges are pending against co-defendants Raz Razla, 48, of Sherman Oaks, and Eran Buhbut, 33, of Oakland. These charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Atari is scheduled to be sentenced by U.S. District Judge Garland E. Burrell, Jr., on August 30, 2019. Atari faces a statutory maximum penalty of 20 years in prison and a fine of up to $500,000, or twice the value of the monetary instrument or funds involved, whichever is greater. The actual sentence, however, will 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.
Sacramento Man Pleads Guilty to Distributing Narcotics on the Dark Web and Illegally Possessing FirearmsRead the Press Release
SACRAMENTO, Calif. — Jose Robert Porras III, 22, of Sacramento, pleaded guilty today to distributing a controlled substance and illegally possessing firearms, United States Attorney McGregor W. Scott announced.
According to court documents, Porras distributed marijuana and alprazolam (Xanax) on Wall Street Market using the vendor account "TheFastPlug" and on Dream Market using the vendor account "Canna_Bars." Wall Street Market and Dream Market were websites on the dark web that allowed individuals to sell narcotics and other illegal goods and services. On May 22, 2018, investigators searched a storage unit held by Porras and found numerous firearms, including a D&D Sales Model A uzi-style firearm, a Norinco MAK 90 Sporter rifle, and a Smith and Wesson .44 caliber revolver. At the time of the search, Porras had already sustained a prior felony conviction, specifically, a 2017 state felony conviction for possession/purchase for sale of narcotics, making it illegal for him to possess a firearm.
This case was the product of an investigation by the Northern California Illicit Digital Economy Task Force (NCIDE), comprised of agents from Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Drug Enforcement Administration. The NCIDE Task Force is a joint, federal task force focused on targeting all forms of dark-web and cryptocurrency activity in the Eastern District of California. Assistant United States Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the case.
Porras is scheduled for sentencing on September 9, 2019, before U.S. District Judge Kimberly J. Mueller. Porras will remain in custody pending his sentencing. Porras faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine for the charge of distributing narcotics, and a maximum statutory penalty of 10 years in prison and a $250,000 fine for the charge of felon in possession of a firearm. The actual sentence, however, will 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.