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17 June 2019
Five Men Connected to Coggon Shooting Sentenced to Federal PrisonRead the Press Release
Five men who were involved in an attempted robbery of marijuana that left one man dead were each sentenced today to more than six years in federal prison.
Chase Daniel Zerba, age 21, Cameron Lee Klouda, age 22, both from Coggon, Iowa, and Tyler Michael Clemens, age 24, from Alburnett, Iowa, received prison terms after each had previously pled guilty to conspiracy to distribute marijuana and using, carrying, brandishing, and discharging a firearm in furtherance of a drug trafficking crime. Dillon Craig Beener, age 22, and Kordell Maurice Jones, age 20, both from Cedar Rapids, Iowa, received prison terms after each had previously pled guilty to attempted robbery and using, carrying, and brandishing a firearm during a crime of violence.
Evidence during the case established that on February 1, 2017, law enforcement officers responded to an address in Coggon after receiving a 911 call regarding a shooting. When officers arrived, they located an individual deceased in the front yard of the residence. This individual had been shot at close range with a shotgun.
Prior to the shooting, the victim of the shooting along with Beener, Jones, and another individual, left Cedar Rapids to travel to Coggon. These four individuals intended to meet with Zerba and rob him of marijuana. The four brought a .40 caliber Hi-Point pistol with them to use during the robbery. When they arrived at Zerba’s residence, Clemens, Klouda, and Zerba were all seated in a minivan parked in the driveway. Zerba, Clemens, and Klouda had brought approximately a half-pound of marijuana with them, as well as a loaded shotgun.
Beener approached the minivan and spoke with the three people in it. Beener then returned to his car, and the victim, Beener, and Jones approached the minivan to meet with Zerba, Clemens, and Klouda. The victim was in possession of the pistol and spoke briefly to the occupants of the minivan. He then raised his pistol and demanded that Zerba give them the marijuana. As the group attempted the robbery, one of the men inside the vehicle raised the shotgun and fired one round from the shotgun out the passenger side window into the victim’s head.
During a search of the scene, police located $60 in the victim’s pocket. The .40 caliber Hi-Point pistol was located near his body. The pistol was loaded, with a round in the chamber and the safety off. In the minivan, police located marijuana in a backpack in the left rear seat “stow and go” compartment. The marijuana was packaged in six separate containers and totaled 386.91 grams of marijuana. Police also located multiple jars of marijuana wax in this same backpack.
All five men were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Zerba was sentenced to 91 months’ imprisonment, Clemens was sentenced to 78 months’ imprisonment, and Klouda was sentenced to 96 months’ imprisonment. Klouda was fined $1,000 and all three men were ordered to pay $5,611.56 in restitution. Beener was sentenced to 80 months’ imprisonment and Jones was sentenced to 82 months’ imprisonment. All five men must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
“The combination of drugs and guns poses a serious threat to public safety,” said United States Attorney Peter Deegan. “Not only is it a federal crime to possess a gun during a drug deal, it’s a federal crime for a drug user to possess a gun. These sentences hold accountable five men who did both. As a result, a young man’s life was lost to gun violence. Our office is committed to vigorously prosecuting anyone who poses a threat to public safety by mixing guns with drugs.”
During the sentencing hearings, Judge Williams noted that this “was an avoidable accident” where there was “enough fault to go around for everybody.” Judge Williams also noted that this was a “horrible, preventable, tragedy.”
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.
Zerba, Clemens, Klouda, Beener, and Jones are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 18-cr-0059 and 18-cr-0072.
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Federal Court Permanently Enjoins Plaquemines Parish Tax Return Preparer and BusinessRead the Press Release
The United States District Court for the Eastern District of Louisiana entered a permanent injunction barring Jessica Barthelemy St. Ann and JJSM Inc., from preparing federal tax returns.
The government’s complaint alleged that St. Ann knowingly took unreasonable positions on returns she prepared that result in understatements of the tax her customers owe or overstatements of the refunds to which they are entitled to receive. For example, the complaint alleged that St. Ann prepared returns which claimed erroneous car and truck expenses for some customers, intentionally and improperly understating the tax that the customers owed. According to the complaint, St. Ann also repeatedly prepared Schedules C improperly claiming business losses from activities that her customers engaged in purely as hobbies.
St. Ann agreed to the entry of the permanent injunction without admitting any factual allegations in the complaint.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Father and Son Convicted of Methamphetamine Distribution Charges in Federal Investigation into Large Dark-net MarketplaceRead the Press Release
SANTA ANA, California – An Irvine man who was part of a father-and-son crew that illegally distributed methamphetamine on one of the world’s largest dark-net marketplaces pleaded guilty today to a federal criminal drug charge, 11 days after a federal jury found his father guilty of drug charges.
William Thomas Glarner IV, a.k.a. “Billy,” 34, pleaded guilty to one felony count of possession with intent to distribute methamphetamine. United States District Judge David O. Carter has scheduled a September 23 sentencing hearing, where Glarner will face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life in prison.
Glarner admitted in his plea agreement that he used at least three monikers to obscure his true identity on the dark-net, including on the “Tor” dark-net browser, where he conducted more than 1,500 sales of controlled substances, including methamphetamine. The term “dark-net” refers to computer networks that utilize some of the Internet, but provide greater anonymity, allowing vendors to sell goods and services – such as illegal drug sales – often in exchange for virtual currency.
Glarner obtained drugs from various sources, and along with others, mailed drugs to dark-net customers nationwide by using such services as the United States Postal Service and commercial couriers, according to the plea agreement. A search warrant executed at Glarner’s residence and on his car on March 14 resulted in law enforcement officials recovering 2.5 kilograms (5.5 pounds) of methamphetamine, court papers state. Glarner admitted that some of this methamphetamine was packaged for purposes of distribution for orders placed on the dark-net.
On June 6, Glarner’s father, William Thomas Glarner III, 65, of Huntington Beach, who had been identified as part of the overall investigation into his son’s dark-net activity and charged separately, was found guilty by a jury of three methamphetamine distribution-related charges after a four-day trial. Glarner III was observed mailing packages of methamphetamine, including one to a dark-net customer, according to evidence presented at trial and in court papers. A search warrant executed on March 14 on Glarner III and his vehicle resulted in the seizure of over 1.4 kilograms (3.1 pounds) of methamphetamine, as presented during trial. He is scheduled to be sentenced on September 9, where he faces a statutory maximum sentence of life imprisonment and a mandatory minimum sentence of 10 years in federal prison.
This case was investigated by U.S. Customs and Immigration Enforcement’s Homeland Security Investigations and the United States Postal Inspection Service. The La Habra Police Department assisted with the investigation as did the Costa Mesa Police Department, the Brea Police Department, the Cypress Police Department, and the Cass County Drug Task Force of North Dakota.
This matter is being prosecuted by Assistant United States Attorneys Puneet V. Kakkar and Kathy Yu of the International Narcotics, Money Laundering, and Racketeering Section.
Erie Man Admits Setting Fire that Destroyed Furniture BusinessRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of malicious destruction of property by fire, United States Attorney Scott W. Brady announced today.
Tony Crawford, 35, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Crawford set fire to the Fred’s Beds and Furniture building located at 117 East 12th Street in Erie on February 5, 2016. The investigation revealed that Crawford was using his cell phone in close proximity to Fred’s Beds around the time of the fire. Crawford also revealed that he set the fire to several individuals who were interviewed by law enforcement.
Judge Cercone scheduled sentencing for November 25, 2019 at 2:15 p.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 offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Erie Police Department and the Erie Fire Department conducted the investigation that led to the prosecution of Crawford.
Employee of Federal Contractor Pleads Guilty to Federal Bribery Charge for Accepting Cash to Falsify Urinalysis Results to U.S. Probation and Pretrial ServicesRead the Press Release
Greenbelt, Maryland – Michael Andre Brown, age 47, of Waldorf, Maryland, pleaded guilty today to a federal bribery charge, in connection with his employment with a federal contractor in which he administered urinalysis tests to individuals on federal probation, supervised release and pre-trial supervision.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to his plea agreement, Brown was an employee at a company in Camp Springs, Maryland, that provided drug and alcohol treatment and testing services. Through a federal contract, the business was tasked with, among other things, administering urinalysis tests to individuals on federal probation, supervised release, and pre-trial supervision on behalf of the U.S. Probation and Pretrial Services Office of the District of Maryland. Brown was a urinalysis technician for the company. Brown admitted that from at least December 2018 through February 2019, Brown, in his official capacity, accepted cash payments in exchange for falsely reporting urinalysis results as negative for controlled substances, when in fact, the results were positive for controlled substances.
As detailed in his plea agreement, on December 26, 2018, an FBI undercover task force officer (UC) posing as a federal probationer who had been ordered to submit to urine analysis as part of his/her probation, met with Brown at the company in Camp Springs. The UC indicated to Brown that he/she expected to have a positive urinalysis result. Brown told the UC that he was willing to work with the UC. According to the plea agreement, Brown subsequently took the UC to a bathroom to perform the urinalysis. The UC submitted a urine sample that would produce a positive result for marijuana. Brown inspected the cup and indicated to the UC that it was positive for drug use, but again said that he would “take care of” the UC. The UC expressed his appreciation to Brown and placed $100 on the bathroom sink. Brown admitted that he took the money.
Brown admitted that he then gave instructions to the UC on how to check in on his/her next date for urine analysis, but also informed the UC that his/her next date would be December 28, 2018, two days away, and that Brown would be working again on that date. Such dates are assigned daily and are not supposed to be divulged to the probationers until the evening before.
According to the plea agreement, on December 28, 2018, the UC provided another urine sample to Brown, but instead of checking it, Brown told the UC, “Go ahead and pour it [the urine] out,” “Cause if it was dirty the other day, it’s gonna be dirty today.” The UC again expressed appreciation to Brown and asked if Brown “needed anything.” Brown admitted that he again accepted $100 from the UC and indicated that he would do so on future dates, as well. Brown also accepted $150 from the UC on February 11, 2019, without requiring the UC to submit a urine sample at all, before Brown falsely reported a negative urinalysis result for the UC. The company then reported that false result to U.S. Probation and Pretrial Services.
Brown faces a maximum sentence of 10 years in prison for bribery. U.S. District Judge Paula Xinis has scheduled sentencing for August 28, 2019, at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth G. Wright, who is prosecuting the case.
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Elyria man among 1,700 suspected online child sex offenders charged during a two-month, nationwide operation conducted by Internet Crimes Against Children task forcesRead the Press Release
The Department of Justice announced the arrest of almost 1,700 suspected online child sex offenders during a two-month, nationwide operation conducted by Internet Crimes Against Children task forces. The task forces identified 308 offenders who either produced child pornography or committed child sexual abuse, and 357 children who suffered recent, ongoing or historical sexual abuse or were exploited in the production of child pornography.
The 61 ICAC task forces, located in all 50 states and comprised of more than 4,500 federal, state, local and tribal law enforcement agencies, led the coordinated operation known as “Broken Heart” during the months of April and May 2019. During the course of the operation, the task forces investigated more than 18,500 complaints of technology-facilitated crimes targeting children and delivered more than 2,150 presentations on internet safety to over 201,000 youth and adults.
"The sexual abuse of children is repugnant, and it victimizes the most innocent and vulnerable of all," Attorney General William P. Barr said. "We must bring the full force of the law against sexual predators, and with the help of our Internet Crimes Against Children program, we will. Over the span of just two months, our ICAC task forces investigated more than 18,000 complaints of internet-related abuse and helped arrest 1,700 alleged abusers. I would like to thank our Office of Justice Programs, all of the task force members, and especially the state and local partners who helped us achieve these important results. We are committed to bringing the defendants in these cases to justice and protecting every American child."
“These are cases with real victims, children whose lives will be forever changed because adults assaulted and violated them,” U.S. Attorney Justin Herdman said. “We will continue to work to prosecute those who re-victimize these children by sharing and downloading these images.”
The operation targeted suspects who: (1) produce, distribute, receive and possess child pornography; (2) engage in online enticement of children for sexual purposes; (3) engage in the sex trafficking of children; and (4) travel across state lines or to foreign countries and sexually abuse children.
The ICAC Program is funded through the Department’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) within the Office of Justice Programs (OJP). In 1998, OJJDP launched the ICAC Task Force Program to help federal, state and local law enforcement agencies enhance their investigative responses to offenders who use the internet, online communication systems or computer technology to exploit children. To date, ICAC task forces have reviewed more than 922,000 complaints of child exploitation, which have resulted in the arrest of more than 95,500 individuals. In addition, since the ICAC program's inception, more than 708,500 law enforcement officers, prosecutors and other professionals have been trained on techniques to investigate and prosecute ICAC-related cases.
In U.S. District Court in Cleveland, Eric D. Burrows, 59, of Elyria, was charged with receiving, possessing and accessing with intent to view child pornography. Burrows knowingly received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between February 3, 2018 through April 16, 2018, according to the indictment. The indictment also charges that during the same time period, Burrows knowingly accessed with intent to view, material that contained an image of child pornography, and at least one image involved in the offense involved a prepubescent minor or a minor who had not attained 12 years of age. The indictment also charges that on April 16, 2019 Burrows knowingly possessed a computer, which contained child pornography, and at least one image involved in the offense involved a prepubescent minor or a minor who had not attained 12 years of age.
For more information, visit the ICAC Task Force webpage. For state-level Operation Broken Heart results, please contact the appropriate state ICAC task force commander. Contact information for task force commanders is available online.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
Elk County Man Pleads Guilty to Child Pornography ChargeRead the Press Release
ERIE, Pa. - A resident of Johnsonburg, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Clarence Robert Neal IV, 35, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Neal received computer images and movies depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for November 25, 2019 at 1:30 p.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 offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Neal on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Johnsonburg Borough Police Department conducted the investigation that led to the prosecution of Neal.
Dental Assistant Sentenced to 19 Months in Prison for Unlawful Prescription Opioid Pain Pills DistributionRead the Press Release
CAMDEN, N.J. – A Pennsylvania woman was sentenced today to 19 months in prison for unlawfully distributing prescription opioid pain medication in the Philadelphia and South Jersey areas, U.S. Attorney Craig Carpenito announced.
Nancy Ayres, 44, a/k/a “Nancy Esslinger,” of Upper Chichester, Pennsylvania, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of distributing and possessing with intent to distribute oxycodone. Judge Bumb imposed the sentence today in Camden federal court.
According to the documents filed in the case and statements made in court:
Ayres is a dental assistant and has worked in several dental offices in the Philadelphia area and neighboring states. Beginning in at least December 2017, Ayres obtained prescriptions in close proximity to each other for large quantities of oxycodone pills from at least three different medical professionals.
Between April 2018 and June 2018, Ayres allegedly sold 1,044 15- and 20-milligram oxycodone tablets. Ayres made representations that she could obtain other prescription medications for sale, including muscle relaxers and medications for pain management, erectile dysfunction, and anxiety.
In addition to the prison term, Judge Bumb sentenced Ayres to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson,; and the N.J. Attorney General’s Atlantic City Task Force, under the direction of Attorney General Gurbir S. Grewal, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division in Camden.
Defendant sentenced for managing $1 million methamphetamine trafficking operationRead the Press Release
ATLANTA – Hugo Solano-Garcia has been sentenced for conspiring to possess with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. Solano-Garcia was a manager in a sophisticated methamphetamine trafficking operation that sought to distribute more than $1 million worth of drugs in DeKalb and Gwinnett Counties.
“This elaborate ring profited from pumping poison in the form of high-grade methamphetamine into our community,” said U.S. Attorney Byung J. “BJay” Pak. “When agents took down their operation, it was discovered that the traffickers had used weapons to protect their clandestine labs. All but one of the defendants in this case, including Solano-Garcia, were in this country illegally. In the end, the payout for each of them is a long federal prison sentence and then deportation.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Drug dealing breeds violence and the traffickers who engage in this dangerous lifestyle often protect their ill-gotten gains with dangerous weapons, as was the case in this investigation. DEA, the entire law enforcement community and the U.S. Attorney’s Office are committed to making the citizens of metropolitan Atlanta and elsewhere safer by removing dangerous criminals form their neighborhoods.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning in July 2017, agents with the DEA and the Atlanta-Carolina High Intensity Drug Trafficking Area Program began investigating Solano-Garcia and his associates for trafficking methamphetamine that had been smuggled from Mexico into the Atlanta area.
Over the course of the investigation, federal and local law enforcement agents uncovered a series of stash houses and methamphetamine conversion laboratories in DeKalb and Gwinnett Counties where the defendants would convert liquid methamphetamine into crystal methamphetamine for distribution, sometimes hiding the illicit drugs in hollowed-out fire extinguishers and car batteries. The defendants barricaded some of these conversion laboratories and guarded them with guns.
Agents raided one conversion laboratory in Brookhaven, Georgia, on January 30, 2018, where they found approximately 130 pounds of methamphetamine in crystal and liquid form and three firearms, including an AR-15-style rifle. This is believed to be one of the largest methamphetamine seizures in the history of the City of Brookhaven.
Hugo Solano-Garcia, a/k/a Gordo, 31, of Michoacán, Mexico, was sentenced by U.S. District Judge Leigh Martin May to 20 years in federal prison, and he will be deported subsequent to completing his term of incarceration.
In total, nine other defendants were indicted in this conspiracy in addition to Solano-Garcia, and eight have been sentenced, including:
- Gerardo Calderon-Pacheco, a/k/a Plebe, age 22, who pleaded guilty and was sentenced on March 15, 2019 to 12 years in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine;
- Valentin Solano-Salas, age 22, who pleaded guilty and was sentenced on March 10, 2019 to 15 years in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime;
- Juan Confesor Camilo, a/k/a Jean Carlos Camilo, a/k/a Tigre, age 38, who pleaded guilty and was sentenced on March 19, 2019 to four years and three months in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine;
- Aldrin Barajas-Ramirez, age 44, who pleaded guilty and was sentenced on April 11, 2019 to 15 years in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime;
- Miguel Pacheco-Penaloza, age 20, who pleaded guilty and was sentenced on May 3, 2019 to 9 years in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime;
- Octavio Pacheco-Torres, a/k/a Burro, age 26, who pleaded guilty and was sentenced on December 10, 2018 to 10 years in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine;
- Sair Calderon-Pacheco, age 20, who pleaded guilty and was sentenced on February 6, 2019 to 5 years and 10 months in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine; and
Joaquin Reyes-Guillen, a/k/a Aviel Cabrera-Hernandez, age 35, who pleaded guilty and was sentenced on December 11, 2019 to five years and three months in federal prison for conspiring to possess with intent to distribute more than 500 grams of methamphetamine.
This case was investigated by the Drug Enforcement Administration, the Atlanta-Carolina High Intensity Drug Trafficking Area Program, and the following agencies: U.S. Immigration and Customs Enforcement, U.S. Department of State, DeKalb County High Intensity Drug Trafficking Area Unit, Georgia State Patrol, Gwinnett County Police Department, and Franklin County Sheriff’s Department.
Special Assistant U.S. Attorneys Nicholas N. Joy and Erin H. Harris prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Connecticut U.S. Attorney's Office Celebrates Annual U.S. Attorney's AwardsRead the Press Release
The United States Attorney’s Office for the District of Connecticut hosted its annual United States Attorney’s Office Law Enforcement Awards Ceremony on Friday, June 14, in New Haven. The ceremony at the City of New Haven’s aldermanic chambers recognized 126 individuals for their investigative efforts and other contributions to 24 significant federal criminal prosecutions and civil cases in Connecticut. More than 40 of the award recipients are members of local police departments from across Connecticut.
“We in the U.S. Attorney’s Office are forever mindful that our work and success are dependent on the dedicated efforts of our federal, state and local law enforcement partners,” said U.S. Attorney John H. Durham. “On behalf of everyone in the U.S. Attorney’s Office, my sincere congratulations to all of our award recipients, many of whom put themselves at risk every day for the safety of our communities.”
In addition to the criminal and civil case awards, U.S. Attorney Durham presented several special awards during the ceremony.
The U.S. Attorney’s Award for Outstanding Investigator was presented to Special Agent Daniel Prather of the Bureau of Alcohol, Tobacco, Firearms and Explosives, for his outstanding and tireless work to reduce drug trafficking and associated gun violence across Connecticut during his 15-year career in federal law enforcement.
The U.S. Attorney’s Award for Outstanding Partnership was presented to State’s Attorney Patrick Griffin and the New Haven State’s Attorney’s Office. State’s Attorney Griffin and the New Haven State’s Attorney’s Office have worked closely with the U.S. Attorney’s Office to prosecute some of New Haven’s most persistent and violent offenders, and on innovative efforts to reduce violent crime in the region.
The Financial Fraud and Public Corruption Unit Award was presented to a team of investigators who exposed a greater New Haven “fencing” operation that was responsible for nearly $10 million in losses to major retailers over the last decade. Five individuals involved in the scheme were charged and convicted due to the work of the members of the FBI, U.S. Marshals Service and Connecticut State Police who conducted this investigation.
The Major Crimes Unit Award was given to Special Agent Ryan Mahar of Homeland Security Investigations (HSI), who was honored for expertly investigating complex child exploitation, fraud and identity theft offenses, and serves as a valuable resource to other investigators as a computer forensic specialist.
The National Security and Cyber Crimes Unit Award honored three Internal Revenue Service agents for their diligent investigation of a former police officer turned “Sovereign Citizen” who, for years, made numerous frivolous court filings and used other obstructive tactics while continuing to live in a home on which he never made a mortgage payment.
The Violent Crimes and Narcotics Unit Award was presented to Detective Frank Bellizzi, who recently retired after a 20-year career with the New Britain Police Department. For 12 years, Detective Bellizzi served as a task force officer with the Drug Enforcement Administration’s Hartford Task Force and played a critical role in investigating large-scale drug trafficking organizations, which resulted in the successful prosecution of dozens of federal defendants.
The Civil Division’s Affirmative Enforcement and Civil Rights Unit Award was given to
Professor Jon Bauer of the UConn School of Law for providing critical support to the U.S. Attorney’s Office in resolving an Americans with Disabilities Act (ADA) complaint related to the alleged discrimination against individuals with mental health disabilities in the admission process for the Connecticut Bar.
The Civil Division’s Financial Litigation Unit recognized both Trial Attorney Ann D’Arpino of the U.S. Department of Housing and Urban Development, and John Carroll, an Advisor with the Internal Revenue Service, for providing valuable assistance to the U.S. Attorney’s Office for many years.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and 57 staff members at offices in New Haven, Bridgeport and Hartford.
Charlotte Woman Pleads Guilty to Wire Fraud for Stealing More Than $458,000 from Victims' Retirement AccountsRead the Press Release
CHARLOTTE, N.C. – Cynthia Williams-Singleton, 41, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to wire fraud, for misusing her access to the retirement accounts of victims, some of whom were elderly, to steal more than $458,722, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
According to plea-related documents and today’s court proceedings, from December 2016 to June 2018, Williams-Singleton was a customer service representative with a call center located in Charlotte, for a company identified in court documents as “Company 1.” As a call center representative, Williams-Singleton worked on accounts associated with “Client A,” and had access to Company 1’s data systems that contained, among other things, retirement fund records for Client A’s benefit plan participants and their beneficiaries.
As Williams-Singleton admitted in court today, during the relevant time period, she engaged in a scheme to defraud Client A’s benefit plan participants and their beneficiaries by fraudulently transferring funds from their accounts to bank accounts under her control. During the course of the scheme, Williams-Singleton fraudulently withdrew approximately $458,772.88 in participant and beneficiary funds from approximately eight participant accounts without authorization. Generally, the holders of the participant accounts victimized by Williams-Singleton were persons over the age of 70.
According to court documents, to carry out the scheme, Williams-Singleton used her misused her access to the victims’ personally identifiable information and retirement fund records to make unauthorized changes to beneficiary data and to make unauthorized transfers of funds from Client A’s plan participants’ retirement accounts into bank accounts in her own name or under her control. Williams-Singleton typically accessed a participant’s account when the participant contacted the call center. After speaking with the participant and discovering that the participant was unsure or unaware of his or her account balance, Williams-Singleton informed the participant that the participant’s account was either empty, or had less than it did. She then added herself, her relatives and others, as beneficiaries of that participant’s account. Court records show that Williams-Singleton sometimes added her residential address and personal cell phone numbers as contact information on the account.
During today’s plea hearing, Williams-Singleton admitted that she diverted funds from the participants’ accounts to herself and other newly-added beneficiaries, and that, at times, Williams-Singleton called the call center and impersonated relatives of participants. Williams-Singleton further admitted to falsely reporting the death of the some participants in order to initiate the process of disbursement of funds to the beneficiaries that been fraudulently added.
Williams-Singleton is currently released on bond. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. A sentencing date for the defendant has not been set.
The investigation was handled by the U.S. Secret Service. Assistant U.S. Attorney Jenny Sugar, with the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
California Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A California man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Gerardo Delgadillo, Jr., 22, entered a guilty plea to an indictment charging him with possession with the intent to distribute marijuana.
“Now we know why there’s never any room in the overhead bin – 30 pounds of pot in his luggage,” said United States Attorney Mike Stuart. “It doesn’t matter whether drug dealers transport drugs into West Virginia on foot, or by car, train or plane – we will send them packing.”
Delgadillo admitted that on October 17, 2018, he had flown to Tri-State Airport in Kenova, West Virginia from California. He admitted to possessing approximately 30 pounds of marijuana in his suitcase. He admitted he intended to sell the marijuana.
Delgadillo faces up to five years in federal prison when he is sentenced on August 5, 2019.
The Violent Crime Drug Task Force West conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Cabell County Woman Pleads Guilty to Bank FraudRead the Press Release
HUNTINGTON, W.Va. – A Cabell County woman pled guilty today in federal court to three counts of bank fraud, announced United States Attorney Mike Stuart. Kimberly Dawn Price, also known as Kimberly Dawn Swann, age 60, of Huntington, was employed as a staff accountant with a local accounting firm. Between 2009 and 2015, in the course of her employment, Price wrote and forged signatures on checks on at least three accounts belonging to the firm’s clients without authorization. Price deposited checks into her own bank account and used the money to pay gambling debts, as well as other expenditures.
“A thief is a thief,” said United States Attorney Mike Stuart. “I don’t care whether you are stealing money to pay your gambling debts or to donate to a charity, if you are caught stealing your company’s money, we’re going to prosecute you to the fullest extent of the law.”
Price faces a maximum of 90 years of imprisonment and a $3 million fine when she is sentenced on September 9, 2019.
The Federal Bureau of Investigation and the West Virginia State Police were in charge of the investigation. Assistant United States Attorney Greg McVey handled the prosecution. United States District Judge Robert C. Chambers presided over the hearing.
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Cabell County Man Sentenced to Seven Years in Federal Prison for Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – A Cabell County man was sentenced today to spend seven years in federal prison for child pornography crimes, announced United States Attorney Mike Stuart. Scott Edward Riggs, 41, of Huntington, previously entered his guilty plea to distribution of child pornography in March. Stuart commended the investigative work of the Department of Homeland Security Homeland Security Investigations, the West Virginia State Police, and the Queensland (Australia) Police Service.
“A despicable crime,” said United States Attorney Mike Stuart. “We work with law enforcement across the United States and abroad to protect our children from pedophiles like Riggs. This case is particularly pathetic.”
Riggs admitted to using his phone to secretly record a video of a minor in the shower at his residence in Cabell County in late 2017. Riggs then extracted still images from the video depicting the 13-year-old minor and uploaded the images of child pornography to an image-hosting website. He admitted that he knew that other users would be able to access, view, and download the images of child pornography from the website.
Riggs will be placed on federal supervised release for 15 years following his release from prison. He will also be required to register as a sex offender.
Assistant United States Attorney Jennifer Rada Herrald handled the prosecution. The sentencing hearing was held before United States District Judge Robert C. Chambers.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Buffalo Man Pleads Guilty to Selling Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Paul, 65, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to distribution of crack cocaine. The charge carries a maximum penalty of 30 years in prison and a $2,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that on May 10, 2017, the defendant agreed to sell crack cocaine to an undercover (UC) police officer. The UC telephoned Paul who instructed the UC where to meet for the purpose of buying crack cocaine. Paul met the UC at an address he provided on Weiss Street in Buffalo. The defendant subsequently had the UC follow him to a location on Thatcher Street. Paul entered the Thatcher Street location and returned with crack cocaine. The UC subsequently gave the defendant cash, and the defendant provided the UC with approximately 3.32 grams of crack cocaine.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the New York State Police, under the direction of Major Edward Kennedy.
Sentencing is scheduled for October 16, 2019, at 12:30 p.m. before Judge Arcara.
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Bridgeport Man Pleads Guilty to Trafficking Cocaine While on Federal Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAMON HERNANDEZ, 60, of Bridgeport, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of possession with intent to distribute cocaine, and admitted that he violated the conditions of his supervised release from a prior federal conviction.
According court documents and statements made in court, on February 13, 2019, Hernandez possessed and intended to distribute more than 250 grams of cocaine.
In March 2006, Hernandez was sentenced in Bridgeport federal court to 84 months of imprisonment and 10 years of supervised release for his role in a cocaine trafficking ring. He was released from federal prison in August 2011.
Judge Meyer scheduled sentencing for September 26, 2019, at which time Hernandez faces a maximum term of imprisonment of 20 years on the new narcotics charge, and an additional term of imprisonment of up to five years for violating the conditions of his supervised release.
Hernandez has been detained since February 13, 2019.
This matter is being investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
Branchland Woman Sentenced to Federal Prison for Fentanyl OffenseRead the Press Release
HUNTINGTON, W.Va. – A Branchland woman caught delivering fentanyl to another individual last year in Huntington was sentenced to 21 months in federal prison, announced United States Attorney Mike Stuart. Rebecca S. Bryant, 41, previously pled guilty to conspiracy to distribute fentanyl in federal court in Huntington. Stuart commended the investigative efforts of the Huntington Police Department.
“Fentanyl. It’s a killer,” said United States Attorney Mike Stuart. “That’s why we are relentless in our efforts to identify and prosecute all fentanyl dealers.”
On May 23, 2018, officers with the Huntington Police Department observed Bryant meet with another individual in her vehicle in the parking lot of the Little Caesar’s restaurant located at 100 7th Avenue in Huntington. After meeting with the individual, Bryant left the lot and officers conducted a traffic stop of Bryant’s vehicle. Bryant admitted that she had provided a package containing drugs to the individual. The other individual was also stopped and officers seized a package containing in excess of 100 grams of fentanyl. Bryant admitted that she received the fentanyl earlier the prior week and that, on May 23, she was directed to deliver it at the Little Ceasar’s.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Attorney General William P. Barr Appoints Katharine Sullivan to be Principal Deputy Assistant Attorney General for the Office of Justice Programs and Announces that Laura L. Rogers Will Serve as the Acting Director of the Office on Violence Against WomenRead the Press Release
WASHINGTON – Attorney General William P. Barr today announced that he has appointed Katharine Sullivan to serve as the Principal Deputy Assistant Attorney General for the Justice Department’s Office of Justice Programs and that Laura L. Rogers will serve as the Acting Director of the Office on Violence Against Women (OVW).
“Katie Sullivan has been an energetic and great leader of the Office on Violence Against Women, and I am confident she will bring the same enthusiasm to the Office of Justice Programs,” said Attorney General Barr. “Katie’s leadership will further enhance the department’s efforts to strengthen public safety and the criminal justice system through research, programs and strategies, and to provide critical services to victims of crime.”
Katharine (Katie) Sullivan has served as the Acting Director of OVW since January 2018. Prior to joining OVW, Ms. Sullivan was appointed in 2007 to the Colorado state trial court bench where she presided over misdemeanor, felony and civil matters including domestic violence, sexual assault sentencings, cases involving drugs and alcohol, and jury trials. Ms. Sullivan implemented and presided over a drug court and a driving under the influence (DUI) court, leading two multidisciplinary teams. Prior to becoming a Judge, Ms. Sullivan served as a Deputy District Attorney in Colorado, prosecuting all types of felony and misdemeanor cases, worked closely with law enforcement and participated in a community based collaborative domestic violence task force. While in private practice, she served on the Victim Compensation Board. Ms. Sullivan also trained law enforcement nationwide regarding risk and liability in jails and prisons. She also served on the State Judicial Ethics Board.
Laura L. Rogers to serve as Acting OVW Director
Also today, Attorney General Barr announced that Laura L. Rogers will lead the Office on Violence Against Women. OVW leads federal efforts to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
Ms. Rogers has served as Director of the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART Office), in the Office of Justice Programs since January 2018. As the SMART Director, Ms. Rogers led the SMART staff in administering the standards of the Sex Offender Registration and Notification Act (SORNA).
“Laura Rogers has a distinguished history serving the cause of justice for victims of sexual abuse and preventing future abuse,” said Attorney General Barr. “Among her many accomplishments, Laura was appointed by President George W. Bush to be the founder of the SMART office and has been a pioneer in developing the sex offender registration and notification systems that today deny known sex offenders anonymity and help keep children and adults safe across America.”
Prior to coming to the Department, Ms. Rogers served on the National Review Board of the U.S. Conference of Catholic Bishops as well as the Philadelphia Archdiocese Review Board on Sexual Abuse and Pastoral Conduct. Ms. Rogers also served as deputy director of the Criminal Law Division of the U.S. Navy's Office of the Judge Advocate General. Ms. Rogers began her legal career in 1988 as a criminal prosecutor in the San Diego County District Attorney’s Office.
14 June 2019
York Man Sentenced to over 21 Years’ Imprisonment on Drug Trafficking ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Raul Cotto-Rivera, age 41, of York, Pennsylvania, was sentenced on June 11, 2019, to 262 months’ imprisonment followed by five years of supervised release by U.S. District Court Judge Yvette Kane for drug trafficking offenses.
According to United States Attorney David J. Freed, Cotto-Rivera was convicted in March 2018, after a three-day jury trial, of conspiracy to distribute 100 grams and more of heroin and 500 grams and more of cocaine hydrochloride, distribution of heroin (3 counts), possession with intent to distribute heroin and cocaine hydrochloride, distribution of marijuana and possession with intent to distribute cocaine base, cocaine hydrochloride and marijuana,
The charges stemmed from a number of controlled buys of heroin that were made by and through Cotto-Rivera in September and October of 2015. In October 2015, law enforcement obtained and executed a search warrant and located approximately $20,000 in United States currency, a drug ledger, drug packaging material and distribution quantities of cocaine and heroin all in the defendant’s home. While on release, Cotto-Rivera continued to sell drugs and was engaged in the distribution of marijuana from his store. A second search warrant executed in February 2017, located distribution quantities of marijuana and cocaine, drug packaging materials and a loaded stolen firearm.
The investigation was conducted by the FBI Safe Streets Task Force, the York County Drug Task Force, the Pennsylvania State Police, the York Area Regional Police Department, the West Manchester Township Police Department, the York County Sheriff’s Office, the Springettsbury Township Police Department, and the York County District Attorney’s Office. Assistant United States Attorneys Daryl F. Bloom and Carl Marchioli prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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United States Penitentiary Canaan Inmate Pleads Guilty to Assault of Correctional Officer and Is Sentenced to Serve an Additional 15 Months in PrisonRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Johnny Fletcher, age 41, formerly of South Carolina and currently an inmate at the United States Penitentiary Canaan, pleaded guilty on June 12, 2019, before Senior U.S. District Court Judge A. Richard Caputo, to assault on a correctional officer and was immediately sentenced to serve an additional 15 months in prison.
According to United States Attorney David J. Freed, Fletcher admitted to punching a correctional officer on February 5, 2019, after Fletcher set off a metal detector and refused to submit to a search by the correctional officer.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
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United States Files False Claims Act Complaint Against Two Compounding Pharmacies and Their Owner for Submitting Inflated Claims and Improperly Waiving Patient CopaymentsRead the Press Release
The Department of Justice announced today that the United States has filed a complaint in intervention against Smart Pharmacy Inc., and SP2 LLC, two compounding pharmacies located in Jacksonville, Florida. The complaint alleges that the pharmacies improperly included the drug aripiprazole, an atypical antipsychotic drug, in compounded pain creams in order to boost the pharmacies’ reimbursement for the prescriptions and that the pharmacies routinely waived patient copayment obligations. The government has also brought claims against Gregory Balotin, a co-owner of the pharmacies, for his involvement in the alleged schemes.
Aripiprazole, which is sold under the brand names Abilify, Abilify Maintena, and Aristada, is approved by the U.S. Food and Drug Administration to treat a number of psychological conditions such as schizophrenia, Tourette’s disorder, irritability associated with autistic disorder, and manic and mixed episodes associated with Bipolar I. The complaint alleges that the defendants crushed pills of aripiprazole and included them in compounded creams used topically for pain treatment while knowing that there was not an adequate clinical basis for adding aripiprazole to the compound. The complaint alleges that, by including the drug in the pain creams, the defendants substantially increased their reimbursement for prescriptions for the creams from Medicare Part D and TRICARE, the federal health care program for active duty military personnel, retirees, and their families.
The government’s complaint also alleges that the defendants improperly waived patient copayments. While copayments may be waived in certain unique circumstances, such as on the basis of financial hardship of the patient, the defendants are alleged to have routinely waived patient copayments without regard for whether a waiver was warranted.
“The Department of Justice will hold accountable health care providers that manipulate the system to improperly enrich themselves at the taxpayers’ expense,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Dispensing drugs for unproven uses and improperly waiving patient copayments erodes public trust in the health care system and increases the costs borne by federal health care programs.”
“This complaint addresses alarming misconduct by some of the largest compounding pharmacies in our district,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “We intend to hold providers accountable under the False Claims Act when they put their own economic interests ahead of the medical needs of federal health program beneficiaries.”
“Fraud in government health programs may result in harm to vulnerable populations and needless taxpayer expense,” said Shimon R. Richmond, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “All available resources will be used to aggressively investigate these allegations.”
“I applaud the Department of Justice for its continued efforts to hold compounding pharmacies accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency will continue working closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
“It is of utmost importance to protect the integrity of DoD programs by rooting out fraud, waste, and abuse that diverts and wastes precious American taxpayer dollars intended for our Warfighters, and their families. Allegations of providers unjustly enriching themselves will be met with a coordinated effort amongst all affected agencies to hold those accountable,” said the Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, Southeast Field Office.
The lawsuits, United States ex rel. Sanchez v. Smart Pharmacy, Inc., et al., No. 14-cv-1453 (M.D. Fla.), and United States ex rel. Kohli v. Smart Pharmacy, Inc., et al., No. 16-cv-387 (M.D. Fla.), were originally filed in the U.S. District Court for the Middle District of Florida by Amy Sanchez and Ashok Kohli, two former employees of Smart Pharmacy. The lawsuits were filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and to receive a share of any recovery. The Act permits the United States to intervene in such lawsuits, as the United States has done in these cases.
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the Defense Criminal Investigative Service, the Department of Health and Human Services Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, the Department of Labor Office of Inspector General, and the Office of Personnel Management Office of Inspector General.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
United States Files False Claims Act Complaint Against Two Compounding Pharmacies and Their Owner for Submitting Inflated Claims and Improperly Waiving Patient CopaymentsRead the Press Release
WASHINGTON – The Department of Justice announced today that the United States has filed a complaint in intervention against Smart Pharmacy Inc., and SP2 LLC, two compounding pharmacies located in Jacksonville, Florida. The complaint alleges that the pharmacies improperly included the drug aripiprazole, an atypical antipsychotic drug, in compounded pain creams in order to boost the pharmacies’ reimbursement for the prescriptions and that the pharmacies routinely waived patient copayment obligations. The government has also brought claims against Gregory Balotin, a co-owner of the pharmacies, for his involvement in the alleged schemes.
Aripiprazole, which is sold under the brand names Abilify, Abilify Maintena, and Aristada, is approved by the U.S. Food and Drug Administration to treat a number of psychological conditions such as schizophrenia, Tourette’s disorder, irritability associated with autistic disorder, and manic and mixed episodes associated with Bipolar I. The complaint alleges that the defendants crushed pills of aripiprazole and included them in compounded creams used topically for pain treatment while knowing that there was not an adequate clinical basis for adding aripiprazole to the compound. The complaint alleges that, by including the drug in the pain creams, the defendants substantially increased their reimbursement for prescriptions for the creams from Medicare Part D and TRICARE, the federal health care program for active duty military personnel, retirees, and their families.
The government’s complaint also alleges that the defendants improperly waived patient copayments. While copayments may be waived in certain unique circumstances, such as on the basis of financial hardship of the patient, the defendants are alleged to have routinely waived patient copayments without regard for whether a waiver was warranted.
“The Department of Justice will hold accountable health care providers that manipulate the system to improperly enrich themselves at the taxpayers’ expense,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Dispensing drugs for unproven uses and improperly waiving patient copayments erodes public trust in the health care system and increases the costs borne by federal health care programs.”
“This complaint addresses alarming misconduct by some of the largest compounding pharmacies in our district,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “We intend to hold providers accountable under the False Claims Act when they put their own economic interests ahead of the medical needs of federal health program beneficiaries.”
“Fraud in government health programs may result in harm to vulnerable populations and needless taxpayer expense,” said Shimon R. Richmond, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “All available resources will be used to aggressively investigate these allegations.”
“I applaud the Department of Justice for its continued efforts to hold compounding pharmacies accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency will continue working closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
“It is of utmost importance to protect the integrity of DoD programs by rooting out fraud, waste, and abuse that diverts and wastes precious American taxpayer dollars intended for our Warfighters, and their families. Allegations of providers unjustly enriching themselves will be met with a coordinated effort amongst all affected agencies to hold those accountable,” said the Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, Southeast Field Office.
The lawsuits, United States ex rel. Sanchez v. Smart Pharmacy, Inc., et al., No. 14-cv-1453 (M.D. Fla.), and United States ex rel. Kohli v. Smart Pharmacy, Inc., et al., No. 16-cv-387 (M.D. Fla.), were originally filed in the U.S. District Court for the Middle District of Florida by Amy Sanchez and Ashok Kohli, two former employees of Smart Pharmacy. The lawsuits were filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and to receive a share of any recovery. The Act permits the United States to intervene in such lawsuits, as the United States has done in these cases.
This matter is being handled by the Civil Division’s Commercial Litigation Branch and Assistant United States Attorney Collette B. Cunningham for the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the Defense Criminal Investigative Service, the Department of Health and Human Services Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, the Department of Labor Office of Inspector General, and the Office of Personnel Management Office of Inspector General.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
US. Attorney Highlights Recent Project Safe Childhood ConvictionsRead the Press Release
Over the past two weeks, five defendants have pleaded guilty or have been sentenced in the Northern District of Oklahoma for sex crimes involving minors, announced U.S. Attorney Trent Shores. The prosecutions are part of the Department of Justice’s Project Safe Childhood initiative and come on the heels of Operation Broken Heart, a two-month, nationwide operation that netted almost 1,700 suspected online child sex offenders and identified 308 offenders who either produced child pornography or committed child sexual abuse.
The Project Safe Childhood initiative marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and identifies and rescues victims.
“Our Project Safe Childhood initiative is crucial to ferreting out criminal deviants who try to sexually exploit minors. We conduct local undercover sting operations as well as use cyber-based investigative techniques to identify these child predators,” said U.S. Attorney Shores. “As a prosecutor, I sought justice for victims of child sexual abuse, human trafficking, and child pornography. I know just how important these cases are, which is why we continue to prioritize them. We must get child predators off our streets and behind bars. I’m thankful for the aggressive prosecution of these cases by Assistant U.S. Attorneys Chris Nassar and Shannon Cozzoni. Moreover, our partnerships with local, state, and federal investigators are crucial to protecting children in northern Oklahoma. There is no more righteous cause than protecting children.”
Levi William Welker, 29, of Tulsa, was sentenced to 17 years in federal prison followed by seven years on supervised release for distribution of child pornography, enticing a minor, and tampering with a witness and evidence. In February 2016, Welker shared child pornography using a bit torrent file sharing network. Investigators initially discovered 68 images on a torrent file which was traced to Welker’s IP address. During a search, investigators located more than 7,000 image and video files of child pornography. Welker also admitted that he later used multiple social media apps and communications devices to manipulate and lure two minor children to engage in sexual activity with him. He pretended to be 16 years old and provided the victims with cell phones in order to secretly communicate. When one of the children’s parents became suspicious, they reported Welker to the Tulsa Police Department. After the investigation commenced, police discovered that Welker messaged one of the victim’s social media accounts, asking her to lie to police and destroy evidence. He also destroyed other digital evidence in an effort to thwart the investigation. The Court remanded Welker into the custody of the U.S. Marshals Service pending transfer to a U.S. Bureau of Prisons facility. The FBI and Tulsa Police Department investigated these crimes.
Kenny Wayne Brown, 52, of Gainesville, Texas, was sentenced to 10 years in federal prison followed by 10 years on supervised release for attempted coercion and enticement of a minor. From Sept. 6 to Sept. 28, 2018, Brown unknowingly initiated contact with an Internet Crimes Against Children task force officer from the Bristow Police Department who was posing as a minor female. Using social media, he engaged the “girl” in explicit sexual conversation and sent pornographic images of himself to the “girl.” He eventually arranged to travel from Texas to Bristow, Oklahoma, in order to engage in sexual activity. During the arrest at the arranged location, Brown attempted to flee from officers nearly striking them with his vehicle until he was eventually stopped and arrested. Investigators discovered that Brown was also charged with online solicitation in May 2018 in Texas. The Bristow Police Department conducted the investigation.
Jeffrey Scott Cooper, 46, of Broken Arrow, was sentenced to 87 months in federal prison followed by five years on supervised release for attempted receipt of child pornography. From Dec. 18 to Dec. 20, 2018, Cooper unknowingly made contact with an officer from the Tulsa Police Department’s Cyber Crimes Task Force posing as a minor female. Using a social media app, Cooper started the conversation with what he believed to be a minor female. He then engaged the “girl” in explicit sexual conversation, eventually arranging to meet in order to engage in sexual activity. On Dec. 20, 2018, investigators arrested Cooper after he arrived in his company car at the arranged meeting location. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Sean Clarke McCain, 32, of Tulsa, was sentenced to 87 months in federal prison followed by five years on supervised release for attempted receipt of child pornography. From Dec.18 to Dec. 20, 2018, McCain unknowingly made contact with an officer from Tulsa Police Department’s Cyber Crimes Task Force posing as a minor female using an online messaging app and attempted to receive photographs of the “minor” engaged in sexually explicit conduct. He then engaged the “girl” in explicit sexual conversation, eventually arranging to meet in order to engage in sexual activity. McCain was later arrested at the arranged meeting location. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Robert Shawn Thomas Davis, 26, of Owasso, pleaded guilty on June 11, to attempted coercion and enticement of a minor. On March 25, 2019, Davis unknowingly initiated contact with an FBI Task Force Officer who was posing as a minor female. Davis engaged the “minor” in sexually explicit conversation, asking to meet her and to bring other children along to engage in sexual activity. He eventually arranged to meet the “minor.” At his plea hearing, Davis admitted that from March 25 to April 4, 2019, he used a social media app on his phone to attempt to persuade, induce and coerce and entice a what he believed was a 13-year-old girl to engage in sexual activity with him. The Court set sentencing for Sept. 24, 2019. Davis faces a minimum sentence of 10 years in prison The Tulsa Police Department and FBI conducted the investigation.
Following their federal prison sentences, all convicted sex offenders are required to comply with requirements designed to restrict their access to children and to register as sex offenders.
Assistant U.S. Attorney Christopher J. Nassar prosecuted these crimes.
U.S. Attorney’s Office to Hold Press Conference Regarding Recent Efforts to Combat Gun Crimes and Violence in Northwest Iowa.Read the Press Release
The United States Attorney’s Office in Sioux City will hold a press conference Monday, June 17, 2019, at 3:30 p.m. where Branch Chief Timothy Duax and other members of law enforcement will discuss recent efforts to confront gun crimes and violence in Northwest Iowa, including the recent charging of 26 defendants for federal gun-related crimes. The press conference will be held at the United States Attorney’s Office located at 600 Fourth St. Suite 670, Sioux City, IA.
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U.S. Attorney's Office Presents "Fraud - Bingo" Game to Assist Seniors to Avoid ScamsRead the Press Release
COLUMBIA, SOUTH CAROLINA – The Justice Department today announced that it supported a World Elder Abuse Awareness Day event in Lyman, South Carolina on June 13, 2019. Assistant U.S. Attorneys David Stephens and Rob Sneed gave a presentation to seniors from the upstate using “Fraud Bingo” as a platform to provide tips on avoiding scams.
The June 13, 2019, “Lifting Up Voices” was hosted by the Appalachian Council of Governments (AGOG) and South Carolina Department on Aging (SCDOA). The Appalachian Council of Governments serves as the Area Agency on Aging (AAA) for the six-county South Carolina upstate region (Anderson, Cherokee, Greenville, Oconee, Pickens and Spartanburg counties). The AAA provides information and assistance to older adults, persons with disabilities and caregivers. It also operates the Regional Long Term Care Ombudsman Program, the Regional Family Caregivers Program, the I-CARE program, and Appalachian Assisted Rides program. The SCDOA works with a network of regional and local organizations to develop and manage services that help seniors remain independent in their homes and in their communities.
The event was a local effort to raise awareness about elder abuse and neglect in South Carolina communities. Several vendors, local businesses, and organizations contributed to the highly successful event, which included approximately 200 senior citizens. In addition to the ACOG speakers, a member of the City of Spartanburg Police Department presented on “Elder Abuse Recognition and Safety,” which included discussion on personal safety, trust, and situational awareness to avoid victimization.
AUSAs Stephens and Sneed delivered practical tips for seniors to take to prevent getting financially exploited and scammed. They operated a bingo-type game to teach seniors how to recognize and deal with scams. The game is played just like regular Bingo but with an added twist. Each time the Bingo game caller announces the square, participants read aloud the accompanying message found on their bingo card if they have a match. Each square has a message about fraud, ID theft, and scams. When there is a winner the shouts of “Fraud Bingo” ring out.
“The United States Attorney’s Office and Department of Justice (DOJ) are committed to combatting elder abuse, neglect, financial fraud, and scams that target our nation’s seniors,” said United States Attorney Sherri Lydon. She added that elder fraud schemes take a variety of forms that range from small-scale identity thefts involving impersonation of a senior to mass mailing fraud schemes that steal from thousands of elderly annually. “Our mission is to combat elder abuse and financial exploitation, encourage reporting abuse, and educate the public to make America safer for all,” added Lydon.
Find out more about the U.S. Attorney’s Office Elder Fraud program at https://www.justice.gov/usao-sc/elder-justice-initiative, or the Department of Justice’s Elder Justice Initiative at https://www.justice.gov/elderjustice.
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Two Pennsylvania physicians acquitted of drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – After an eight-day trial, Dr. Krishan Kumar Aggarwal, of Moon Township, Pennsylvania, and Dr. Cherian John, of Coraopolis, Pennsylvania, were found not guilty of drug charges, United States Attorney Bill Powell announced.
“The jury returned not guilty verdicts against Dr. Aggarwal and Dr. John. Notwithstanding the verdict, we remain steadfast in our intention to prosecute matters which we believe, based upon the evidence, support prosecution. Jury trials are an adversarial process and do not provide guaranteed results. Though we disagree with the jury in this case, the jury has spoken and that is part of the process, which we have the utmost respect for. Our team worked very hard and this verdict will not deter our efforts on the opioid front,” said Powell.
A federal jury deliberated for nearly eight hours before finding Aggarwal, age 75, and John, age 66, not guilty of one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice,” and were also indicted on separate counts of “Aiding and Abetting Health Care Fraud,” and “Aiding and Abetting the Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” Aggarwal and John were accused of contracting with Redirections Treatment Advocates, LLC, in Weirton, West Virginia, and writing illegitimate prescriptions for suboxone, some of which were paid for by Medicaid and Medicare.
Assistant U.S. Attorneys Sarah E. Wagner and Andrew R. Cogar prosecuted the cases on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, and the Inspector General at the U.S Department of Health and Human Services investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two Men Indicted for Money-Laundering and Bulk Cash Smuggling of Funds from the British Virgin Islands and for Making False Statements to Federal OfficersRead the Press Release
St. Thomas, USVI – A federal Grand Jury returned an indictment against individuals including Akil Erickson, 26, of Orlando, Florida and Mikiel Robin, 21, of the British Virgin Islands, charging them with international money-laundering and bulk cash smuggling, United States Attorney Gretchen C.F. Shappert announced. The indictment also alleges that each defendant made false statements to Customs and Border Protection officers.
According to the indictment, in or about October of 2018, the defendants engaged in a conspiracy with other persons to transport United States currency from the British Virgin Islands to the United States while knowingly avoiding U.S. currency reporting requirements for reporting bulk cash exceeding $10,000. The indictment alleges that the cash was proceeds from the illegal sale of drugs and that the defendants were aware of the money’s origin. According to the indictment, each defendant falsely stated that he was not carrying in excess of $10,000 from the British Virgin Islands to the United States. The indictment also contains a forfeiture allegation of $138,000.
Robin and Akil Erickson appeared for arraignment on June 13, 2019, before Federal Magistrate Judge Ruth Miller and entered pleas of not guilty to the charges, the other two defendant, who remain unidentified at this moment, remain at large. Trial is scheduled for July 29, 2019.
Defendants face up to twenty years imprisonment and a fine of up to $500,000 for money-laundering; up to five years imprisonment for each count of bulk cash smuggling; and up to five years imprisonment for making a false statement to a federal law enforcement officer.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is being investigated by Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Everard E. Potter.
Two Men Found Guilty of Federal Drug Trafficking and Firearms OffensesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Dwayne Dollison Jr., 36, and Kenneth Martin Douglas, 34, both of Anchorage, were found guilty yesterday after a 7-day federal jury trial. The jury found Dollison and Douglas guilty of drug trafficking conspiracy, possession of controlled substances with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and for being felons in possession of a firearm.
According to evidence presented at trial, the charges all revolve around a conspiracy that ended on Sept. 16, 2017, when Alaska State Troopers stopped both Dollison and Douglas in their vehicle, an SUV, as they approached the Fairbanks area. Another vehicle, a red sedan with whom they were caravanning, stopped as well. The occupants of the red sedan explained that they knew Dollison and Douglas, and they provided a rental receipt for the red sedan bearing Douglas’s name. Both Douglas and Dollison, however, initially denied any connection with the red sedan.
A search of the red sedan later uncovered distribution amounts of methamphetamine, cocaine, and heroin in the vehicle’s trunk. Some of the controlled substances were in socks in a red duffel bag that contained a firearm and clothing belonging to Dollison. Baggies of controlled substances were also found loose in the trunk next to a green duffel bag, which contained a firearm and clothing belonging to Douglas.
Both Dollison and Douglas have prior federal felony convictions and were therefore prohibited from possessing firearms.
As a result of their convictions, Dollison and Douglas face a maximum penalty of up to life in federal prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The Alaska State Troopers (AST), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), the Drug Enforcement Administration (DEA), and the Alaska Department of Public Safety Scientific Crime Detection Laboratory conducted the investigation leading to the successful prosecution of this case. This case is being prosecuted by Assistant U.S. Attorneys Kimberly Sayers-Fay and Allison O’Leary.
Two Drug Traffickers Sentenced for Distribution Resulting in DeathRead the Press Release
BOISE – Vaudencia Ceballos Hamilton, 55, of Hesperia, California, and Matthew Lee Sedillo, 30, of Eagle, Idaho, were sentenced to federal prison for conspiracy to distribute methamphetamine and fentanyl resulting in death, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge Nye sentenced Hamilton to 240 months in prison and ordered that she pay a $100,000 fine. On the same day, Senior U.S. District Judge Edward J. Lodge sentenced Sedillo to 121 months in prison. Both defendants, upon completion of their prison time, were ordered to serve an additional three years of supervised release.
According to court records, on August 14, 2017, Dominico Stewart of Nampa, Idaho, was found dead in an alleyway. A toxicology report showed that Stewart had a lethal dose of methamphetamine and fentanyl in his system. The coroner determined that Stewart died of a methamphetamine overdose.
Investigators learned that, just before his death, Stewart had met with Ryan Curtis, a methamphetamine dealer living in Nampa. Curtis had begun distributing what he called “China White”, a common street name for either pure heroin or a mixture of heroin and fentanyl. Curtis gave Stewart a sample of “China White” and asked that Stewart try the substance while Curtis was present so that Stewart understood how potent the drug was.
Shortly after Stewart ingested the substance, he collapsed. Instead of calling emergency services or seeking help for Stewart, Curtis tried to revive Stewart on his own through several different methods, including injecting Stewart with methamphetamine. Ultimately, Stewart died. Curtis did not notify law enforcement of the death, but attempted to conceal his role in Stewart’s death by dumping Stewart’s body in an alleyway in Nampa.
The investigation into Stewart’s death lead them not only to Ryan Curtis, but ultimately to a drug trafficking organization that was distributing methamphetamine and fentanyl in the Treasure Valley. Matthew Sedillo, Herman Sedillo, and Vaudencia Hamilton were all part of a trafficking organization that distributed the drugs that caused Dominico Stewart’s death. Matthew Sedillo worked with his father, Herman Sedillo to transport controlled substances from their source of supply in California, Vaudencia Hamilton. Once in Idaho, they distributed the drugs to others, including Ryan Curtis. As a result of the investigation, officers were able to seize 852.6 grams of methamphetamine and 957.8 grams of fentanyl.
These cases were investigated by the Drug Enforcement Administration and the Nampa Police Department.
These indictments are the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and the U.S. Marshals Service.
These cases were prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada and Canyon County.
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Two Men from McKinley County, N.m. Charged with Robbery and Firearm Possession in Indian CountryRead the Press Release
ALBUQUERQUE – Aurelius Jamal Eddie, 18, and Julian C. Silversmith, 42, both from the area of Gallup, N.M. appeared in federal court on June 10, 2019, on charges of robbery for interfering with commerce by threats or violence and discharging a firearm during a crime of violence in Indian Country.
According to a criminal complaint and statements in court, Eddie and Silversmith committed these offenses with other people in Vanderwagen, N.M. on April 18, 2019. Eddie allegedly went inside a store with two other people. At least two of them had pistols. They pointed the guns and yelled at other people inside the store. Eddie shot at the ceiling. Then they left the store with stolen alcohol. Silversmith provided Eddie with the gun used in the robbery. Eddie and Silversmith are currently in custody pending trial. They face up to 20 years in prison if convicted of the robbery offense and from 10 years to life in prison if convicted of the firearm offense. Criminal complaints are only allegations and defendants are presumed innocent until proven guilty.
The FBI investigated this case. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
Suspected High-Level Guatemalan Drug Trafficker Arraigned in San Diego on Charges He Moved Large Quantities of Cocaine on the High SeasRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – June 14, 2019
SAN DIEGO – Willian Estuardo Lemus Lara, a suspected high-level cartel boss from Central America, was arraigned in federal court today on maritime cocaine trafficking charges.
According to the documents filed in court, Lemus was the manager of the transportation and distribution cell responsible for facilitating multi-ton quantity cocaine loads via go-fast vessels on the high seas originating from Colombia and Ecuador to Costa Rica and Guatemala. The United States alleged that he sold his cocaine loads to Mexican drug trafficking organizations for transportation to the United States.
The United States further alleged that Lemus was involved in a two-year conspiracy and that he directed the movement of large quantities of cocaine in go-fast vessels across international waters, including facilitating refueling vessels on the high seas during their journey north.
Lemus was indicted by a federal grand jury on January 18, 2018. He was charged with conspiracy to possess with intent to distribute cocaine on board a vessel, and international conspiracy to distribute cocaine. U.S. Magistrate Judge Andy Schopler ordered the defendant detained without bond. Lemus’ next hearing is scheduled for July 19, 2019, before U.S. District Judge Dana M. Sabraw.
“Federal law enforcement officials worked together in three countries to successfully disrupt a dangerous drug trafficking ring that sought to smuggle thousands of kilograms of cocaine into the United States,” said U.S. Attorney Robert Brewer. “Through effective partnerships and outstanding investigation, we intercepted significant loads of this highly addictive stimulant, stripped traffickers of drug profits, and helped to safeguard our communities.”
“I commend the government of Guatemala and all of our foreign and domestic law enforcement partners for their hard work. Their support was instrumental in our joint effort to dismantle this international criminal organization's ability to bring dangerous drugs into our communities and ensure the perpetrators of such attempts are brought to justice,” said David Shaw, special agent in charge for HSI San Diego. “These type of aggressive and coordinated law enforcement efforts are critical to removing the threat posed by criminals flooding American communities with dangerous narcotics, and we will continue to work with our U.S. and international law enforcement partners to bring transnational criminal organizations to justice.”
“DEA protects our communities by hunting down the head of the snake and bringing them to a U.S. courtroom to face U.S. justice,” said DEA Special Agent in Charge Karen Flowers. “The apprehension of a suspected cartel leader highlights what we do best: Leverage all tools across U.S. law enforcement, our foreign counterparts, and work as one to take out anyone, anywhere who profits from the human misery of addiction.”
“This significant case demonstrates what we can accomplish together with intelligence, diligence and commitment to excellence,” said Pete Flores, director of field operations for San Diego. “I commend the CBP task force officer and our partners at HSI, DEA, and the U.S. Attorney’s Office who collaborated to identify, investigate, to bring this man to justice and disrupt this transnational criminal organization.”
During the investigation, federal agents seized approximately 5,900 kilograms, or 13,000 pounds, of cocaine.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
DEFENDANT Case Number 18CR0390DMS
Willian Estraduo Lemus-Lara Age: 49 Guatemala
SUMMARY OF CHARGES
Count 1 - Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel
Maximum penalty: Life in prison, 10-year minimum mandatory; $1 million fine
Count 2 - International Conspiracy to Distribute Controlled Substances
Maximum penalty: Life in prison, 10-year minimum mandatory; $1million fine
INVESTIGATING AGENCIES
Homeland Security Investigations (HSI)
Drug Enforcement Administration (DEA)
Customs and Border Protection (CBP)
U.S. Coast Guard
HSI Joint Task Force Investigations (JTF-I)
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Joint Interagency Task Force-South (JIATF-S)
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Ship Operator and Two Cargo Ship Engineers Face Federal Charges in Water Pollution Case Involving Dumping of Oily WasteRead the Press Release
LOS ANGELES – A Greek cargo ship operator and two chief engineers of one of its ships have been named in a five-count federal indictment charging them with failing to record the illegal dumping of oily waste into international waters and then obstructing justice by ordering the ship’s crew to lie about it.
A federal grand jury returned the indictment on Thursday against:
- Capital Ship Management Corporation, a ship management company based in Piraeus, Greece;
- Ioan Luca, 54, a Romanian national and from October 2018 to January 2019 the chief engineer of the M/V CMA CGM Amazon, a Liberian-flagged container ship that is nearly 1,000 feet long and is managed by Capital Ship Management Corp.; and
- Ionel Surla, 60, a Romanian national and the chief engineer of the Amazon from May 2018 to October 2018, and who is believed to be in Romania.
The defendants are charged with multiple felonies, including conspiracy to fail to maintain an accurate oil record book and to defraud the United States, failure to maintain an accurate oil record book, falsification of records in a matter of federal administration, witness tampering, and obstruction of justice.
Pursuant to international treaties and U.S. law, all large ships, such as the Amazon, are required to use pollution-control technology, including an oily water separator, to remove oil from bilge water that is discharged into the ocean.
The indictment alleges that Luca and, previously, Surla ordered crew members to use a portable pump and flexible hoses in the ship’s engine room to transfer oil-contaminated bilge water to a tank designed to hold clean water, then dispose of the water directly overboard into international waters, avoiding use of the oily water separator.
Luca and Surla then failed to record such discharges in the ship’s oil record book, a document required by federal law. The Amazon’s ports of call include various ports in Asia, Egypt, and Canada, as well as the Port of Los Angeles, according to the indictment. While at the Port of Los Angeles on January 11, the ship presented the false oil record book to U.S. Coast Guard inspectors during an inspection, the indictment alleges.
Capital Ship Management and Luca also have been charged with obstruction of justice and witness tampering for allegedly instructing crew members to lie to the Coast Guard about events that occurred on the ship while at sea. In conducting the investigation, Coast Guard personnel relied on the statements of the ship’s crew as well as documents, the indictment states.
If convicted of all charges, Luca faces a statutory maximum sentence of 61 years in federal prison while Surla faces a statutory maximum sentence of 11 years in federal prison. Capital Ship Management and Luca, who was arrested last month and is free on bond, were previously named in a criminal complaint.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
In a related case, Marian Gavriluta-Strat, 37, a Romanian national and the Amazon’s second engineer, has agreed to plead guilty to an information charging him with failure and causing the failure to maintain an accurate oil record book. Gavriluta-Strat is scheduled to enter a guilty plea to the charges on June 19. He faces a statutory maximum sentence of six years in federal prison.
This case was investigated by the United States Coast Guard Investigative Service.
This matter is being prosecuted by Assistant United States Attorneys Heather C. Gorman, Erik M. Silber, and Paul G. Stern of the Environmental and Community Safety Crimes Section.
Second New York Broker-Dealer Pleads Guilty to Rigging Bids for Financial Instruments in Violation of Antitrust LawRead the Press Release
Industrial and Commercial Bank of China Financial Services LLC (ICBCFS) pleaded guilty to an antitrust charge and was sentenced to pay a criminal fine in excess of $3 million for its involvement in a bid-rigging conspiracy involving certain financial instruments, the Department of Justice announced today.
ICBCFS admitted, as part of a guilty plea, that from May 2012 until at least August 2014, it conspired with other institutions and individuals to submit rigged bids to borrow pre-release American Depository Receipts (ADRs). ICBCFS’s plea is the second in the ongoing criminal antitrust investigation; Banca IMI Securities Corp. previously pleaded guilty for its role in the conspiracy and was sentenced to pay a fine in excess of $2 million on May 10, 2019.
Worldwide, thousands of publicly traded companies list their shares of common stock only on foreign stock exchanges. Most U.S. investors are unable to purchase or sell such foreign shares. The U.S. Securities and Exchange Commission, however, permits four U.S. depository banks to create ADRs, which represent foreign ordinary shares and can be traded in the United States. Through the purchase and sale of ADRs, U.S. investors are able to gain exposure to — including the ability to receive dividends from — companies whose common stock is listed only on foreign stock exchanges.
ICBCFS pleaded guilty to conspiring to borrow pre-release ADRs from U.S. depository banks at artificially suppressed rates. During the conspiracy, a U.S. depository bank began using an auction-style process and invited ICBCFS and other broker-dealers to submit competitive bids for rates to borrow ADRs. In response, ICBCFS and its co-conspirators intensified their coordination in an effort to artificially increase their profits under the auction-style process. On at least 24 occasions, ICBCFS reached an agreement with one or more co-conspirators as to the bids they would submit to U.S. depository banks. On many occasions, the conspirators agreed that they would all submit the same bid.
“In today’s proceeding, the Department of Justice and its law enforcement partners held to account another broker-dealer for its role in suppressing competition and rigging bids in the financial services industry,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The competitive integrity of financial markets is essential to their efficient operation, and the Antitrust Division will continue to aggressively prosecute collusion that corrupts our financial markets.”
“As evidenced by this latest guilty plea, the FBI’s investigation into big ridding for ADRs is broad and deep,” said Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division. “Not only are we bringing the conspirators to justice, we are sending a message to the entire financial industry: you are not above the law. The FBI can and will investigate bid rigging and all fraudulent schemes. You will be caught.”
“This guilty plea is an example of the FBI’s commitment to investigating companies when they operate outside the law and conspire to cheat and dominate the marketplace,” said FBI Washington Field Office, Acting Assistant Director in Charge, John P. Selleck. “I would like to thank the FBI agents and analysts who have worked on this complex investigation and are committed to holding those companies accountable who disregard the rule of law for their own financial gain.”
The Securities and Exchange Commission also separately announced today that ICBCFS has agreed to settle charges that it violated federal securities laws by improperly handling pre-release ADRs.
The Washington Criminal II Section of the Antitrust Division and the FBI’s International Corruption Squad in Washington, D.C. are conducting the investigation into bid rigging in the market for pre-release ADRs. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000 or visit www.justice.gov/atr/contact/newcase.html.
Schuylkill County Man Guilty of Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Navarro-Velez, age 33, of Shenandoah, Pennsylvania, pleaded guilty on June 6, 2019, before Senior U.S. District Court Judge James M. Munley, to conspiracy to distribute and possess with intent to distribute more than a kilogram of heroin.
According to United States Attorney David J. Freed, the defendant admitted to participating in the conspiracy during 2014 and 2015. Navarro-Velez admitted that he and others in the conspiracy distributed between one and three kilograms of heroin, which is approximately equivalent to between 40,000 and 120,000 retail bags of heroin.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled sentencing for September 9, 2019.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Shenandoah Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law for this offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 10 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Rosebud Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Jason Kimmel, Sr., age 37, was indicted on June 11, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 13, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Kimmel was convicted of Sexual Abuse of a Minor in 2005. As a result of this conviction, he is required to register as a sex offender for his natural lifetime. It is alleged that between March 25, 2019, and April 24, 2019, Kimmel, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Kimmel is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Kimmel was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rogers Man Sentenced to 1 Year in Federal Prison for Social Security FraudRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Mike Bailey, age 49, of Rogers, Arkansas, was sentenced this week to 12 months in federal prison followed by three years of supervised release, and restitution in the amount of $123,181.00 for one count of Theft of Government Funds. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, Bailey applied for Social Security Disability Benefits in 2003 citing pain and mental health issues, but was denied. In 2005, Bailey was approved for Social Security Benefits. Pursuant to the application, Bailey agreed to notify the Social Security Administration of any changes in his ability to work and his employment status. In 2017, Bailey completed a “Continuing Disability Review Report,” and claimed that he had not worked since his last medical decision. Subsequently, investigators discovered that Bailey was self-employed as a fishing guide for the past eight (8) years, and had lead 3-4 trips per week during that period. In April 2018, investigators observed Bailey’s work as a fishing guide. Investigators were able to observe Bailey completing tasks that he indicated that he was unable to complete. Bailey exhibited mental acuity inconsistent with his earlier professed mental limitations. Bailey admitted that he did receive Social Security Disability Benefits that he knew he was not entitled. Bailey’s scheme resulted in an aggregate value of $123,181.00, which he was not entitled to receive.
Bailey was indicted by a federal grand jury in July 2018, and entered a guilty plea in January 2019.
This case was investigated by Detective Charles Briscoe of the Office of the Inspector General, Social Security Administration, working jointly with the Arkansas Attorney General’s Office (AG), United States Secret Service, and Arkansas Game and Fish Commission. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Prosecutors from the United States, Colombia and Mexico Strengthen Their Commitment to Dismantling Transnational Criminal OrganizationsRead the Press Release
On June 12 to 14, in Cartagena, Colombia, prosecutors from Colombia, Mexico, and the United States came together for the second Transnational Criminal Organizations (TCO) Working Group. The mission of the Working Group is to engage in specialized training and to develop joint strategies and best practices to dismantle the transnational criminal organizations that threaten the three nations.
During the Working Group, experienced prosecutors from the three nations benefited from trainings on international judicial cooperation and money laundering, and began developing a road map for the development or dissemination of best practices and effective strategies to dismantle these dangerous enterprises. This effort is all the more critical given the increasing interconnectedness between Mexican cartels and Colombian drug trafficking organizations, which collaborate to improve their profits and ability to traffic narcotics, humans, weapons and other contraband into the United States, threatening its national security.
The TCO Working Group is a direct outgrowth of Presidential Executive Order 13773 – Enforcing Federal Law with Respect to Transnational Criminal Organizations and Preventing International Trafficking – which recognized the threat that transnational criminal organizations, including transnational drug cartels, pose to the national security of the United States. In the Executive Order, President Trump prioritized the need to increase cooperation and information sharing with foreign counterparts, and to enhance their operational capabilities via increased security sector assistance, all with the goal of dismantling TCO. Since the 2017 Executive Order was issued, the President has continually reiterated the need to immediately attack the ability of these organizations to traffic narcotics and other criminality into the United States.
The U.S. Department of Justice’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT), which is housed under the Department’s Criminal Division, seized on the momentum from the Dec. 6 to 7, 2017 “Trilateral Summit Against Transnational Organized Crime,” to spearhead the TCO Working Group. The Attorneys General from the United States, Mexico and Colombia converged at the Trilateral Summit to strengthen their commitment to international judicial cooperation and to reinforce joint strategies to dismantle transnational organized crime, such as narcotics trafficking, money laundering, and public corruption. Via a Joint Declaration, the three Attorneys General called on their respective institutions to increase the exchange of best practices to effectively dismantle TCO and to develop joint capacity building and training programs for those charged with investigating and prosecuting TCO. With this clear mandate, OPDAT Colombia and OPDAT Mexico sponsored the first TCO Working Group in August 2018 in Mexico City, Mexico.
Participating in the TCO Working Group meeting was U.S. Attorney Maria Chapa Lopez for the Middle District of Florida; representatives of the Fiscalía General de la Nación (FGN) of Colombia including Claudia Carrasquilla, head of the National Organized Crime Unit and Ricardo Carriazo, head of the National Drug Trafficking Unit of FGN; representatives of the Fiscalía General de la República (FGR) of Mexico, OPDAT Resident Legal Advisors (RLAs) in Colombia and México and Assistant U.S. Attorneys from the federal districts of Arizona, Southern District of California, Middle District of Florida, Southern District of Florida, Northern District of Georgia, District of New Jersey, District of New Mexico, Eastern District of Texas, Southern District of Texas, Western District of Texas and District of Utah; trial attorneys from the Criminal Division’s Money Laundering and Asset Recovery Section and representatives from the Criminal Division’s International Criminal Investigative Training and Assistance Program (ICITAP); the U.S. Drug Enforcement Administration (DEA); U.S. Customs and Border Protection; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Colombian National Police.
“Global cooperation is the key to mitigating threats to our national security and thwarting borderless crimes,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “The OPDAT Program continues to provide us, and our international partners, with the vital tools, information, and resolve necessary to defeat criminals, wherever they operate.”
"We held the trilateral meeting between the U.S., Colombian and Mexican prosecutors, where we've discussed issues of absolute importance for the dismantling of transnational criminal organizations that affect the national security of our countries,” said Ricardo Carriazo, Director of the Special Unit against Drug Trafficking for the Colombian Attorney General’s Office. “The results in this exchange of experiences and good practices will be seen soon in the development of international judicial operations. "
OPDAT spearheads and organizes this critical event in coordination with the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL).
For photos of this event, please see here.
Prosecutors from the United States, Colombia and Mexico Strengthen Their Commitment to Dismantling Transnational Criminal OrganizationsRead the Press Release
WASHINGTON – On June 12 to 14, in Cartagena, Colombia, prosecutors from Colombia, Mexico, and the United States came together for the second Transnational Criminal Organizations (TCO) Working Group. The mission of the Working Group is to engage in specialized training and to develop joint strategies and best practices to dismantle the transnational criminal organizations that threaten the three nations.
During the Working Group, experienced prosecutors from the three nations benefited from trainings on international judicial cooperation and money laundering, and began developing a road map for the development or dissemination of best practices and effective strategies to dismantle these dangerous enterprises. This effort is all the more critical given the increasing interconnectedness between Mexican cartels and Colombian drug trafficking organizations, which collaborate to improve their profits and ability to traffic narcotics, humans, weapons and other contraband into the United States, threatening its national security.
The TCO Working Group is a direct outgrowth of Presidential Executive Order 13773 – Enforcing Federal Law with Respect to Transnational Criminal Organizations and Preventing International Trafficking – which recognized the threat that transnational criminal organizations, including transnational drug cartels, pose to the national security of the United States. In the Executive Order, President Trump prioritized the need to increase cooperation and information sharing with foreign counterparts, and to enhance their operational capabilities via increased security sector assistance, all with the goal of dismantling TCO. Since the 2017 Executive Order was issued, the President has continually reiterated the need to immediately attack the ability of these organizations to traffic narcotics and other criminality into the United States.
The U.S. Department of Justice’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT), which is housed under the Department’s Criminal Division, seized on the momentum from the Dec. 6 to 7, 2017 “Trilateral Summit Against Transnational Organized Crime,” to spearhead the TCO Working Group. The Attorneys General from the United States, Mexico and Colombia converged at the Trilateral Summit to strengthen their commitment to international judicial cooperation and to reinforce joint strategies to dismantle transnational organized crime, such as narcotics trafficking, money laundering, and public corruption. Via a Joint Declaration, the three Attorneys General called on their respective institutions to increase the exchange of best practices to effectively dismantle TCO and to develop joint capacity building and training programs for those charged with investigating and prosecuting TCO. With this clear mandate, OPDAT Colombia and OPDAT Mexico sponsored the first TCO Working Group in August 2018 in Mexico City, Mexico.
Participating in the TCO Working Group meeting was U.S. Attorney Maria Chapa Lopez for the Middle District of Florida; representatives of the Fiscalía General de la Nación (FGN) of Colombia including Claudia Carrasquilla, head of the National Organized Crime Unit and Ricardo Carriazo, head of the National Drug Trafficking Unit of FGN; representatives of the Fiscalía General de la República (FGR) of Mexico, OPDAT Resident Legal Advisors (RLAs) in Colombia and México and Assistant U.S. Attorneys from the federal districts of Arizona, Southern District of California, Middle District of Florida, Southern District of Florida, Northern District of Georgia, District of New Jersey, District of New Mexico, Eastern District of Texas, Southern District of Texas, Western District of Texas and District of Utah; trial attorneys from the Criminal Division’s Money Laundering and Asset Recovery Section and representatives from the Criminal Division’s International Criminal Investigative Training and Assistance Program (ICITAP); the U.S. Drug Enforcement Administration (DEA); U.S. Customs and Border Protection; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Colombian National Police.
“Global cooperation is the key to mitigating threats to our national security and thwarting borderless crimes,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “The OPDAT Program continues to provide us, and our international partners, with the vital tools, information, and resolve necessary to defeat criminals, wherever they operate.”
"We held the trilateral meeting between the U.S., Colombian and Mexican prosecutors, where we've discussed issues of absolute importance for the dismantling of transnational criminal organizations that affect the national security of our countries,” said Ricardo Carriazo, Director of the Special Unit against Drug Trafficking for the Colombian Attorney General’s Office. “The results in this exchange of experiences and good practices will be seen soon in the development of international judicial operations. "
OPDAT spearheads and organizes this critical event in coordination with the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL).
Ponchatoula Woman Pleads Guilty to Obstructing JusticeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ANGEL PERILLOUX, age 38, of Ponchatoula, pleaded guilty to a one-count bill of information charging her with obstruction of justice.
According to the court documents, PERILLOUX obstructed a federal grand jury investigation by soliciting individuals to remove evidence from an impounded vehicle. PERILLOUX discussed several unsuccessful attempts to break into the vehicle on recorded jail calls. Ultimately, at PERILLOUX’s direction, an employee of Cooper’s Salvage Yard and Wrecker Service removed a firearm and drug money from a vehicle and provided them to PERILLOUX.
PERILLOUX faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for October 3, 2019.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tangipahoa Parish Sheriff’s Office investigated this matter. The case was prosecuted by Assistant United States Attorney Maria M. Carboni.
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Pickens County Sheriff to Plead Guilty to Wire Fraud and Tax ChargesRead the Press Release
Pickens County Sheriff to Plead Guilty to Wire Fraud and Tax Charges
BIRMINGHAM – Today a federal indictment was unsealed against the longstanding sheriff of Pickens County for wire fraud and filing false tax returns, announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp, Jr. and IRS-Criminal Investigation Special Agent in Charge Thomas J. Holloman. Also today, a plea agreement was filed in federal district court. According to that agreement, the defendant has agreed to plead guilty to one count of wire fraud and one count of filing a false tax return.
The nine-count indictment filed in U.S. District Court charges Pickens County Sheriff DAVID EUGENE ABSTON, of Gordo, with seven counts of wire fraud and two counts of filing a false tax return.
“A sitting county sheriff is alleged to have defrauded a food bank and a church for his personal gain at the expense of the underprivileged that the food bank serves,” Town said. “Our office will continue to aggressively pursue and prosecute public officials who violate the public trust for their own personal gain.”
“No matter what your career or position is within our communities, all U.S. citizens are obligated to comply with the tax laws,” said Holloman. “Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets as well as skirt their tax obligations.”
According to the indictment, as sheriff of Pickens County, Abston was responsible for the care and custody of prisoners housed in the Pickens County Jail. That responsibility included feeding inmates housed in the jail. In exchange, Abston was entitled to receive a specified food allowance per prisoner per day from the state of Alabama and other governmental entities. Between 2014 and 2018, Abston received more than $400,000 in food allowance money from the state of Alabama and other governmental entities. During that same period, Abston—like many sheriffs in Alabama—had a practice of keeping for himself any food allowance money that he did not spend to feed inmates.
During that same period Abston engaged in a scheme to defraud the West Alabama Food Bank, as well the Highland Baptist Church of Gordo, Alabama—where Abston was a member—in order to reduce his jail food expenses and increase the amount of food allowance money he could keep.
The West Alabama Food Bank (WAFB) is a non-profit based in Tuscaloosa, Alabama, with the stated mission of helping to alleviate hunger and food insecurity in nine West Alabama counties. WAFB collects donations of food and distributes that food to partner agencies such as churches, soup kitchens, and food pantries. To become a partner agency with WAFB, a church must submit an application stating, among other things, that the church will distribute food in compliance with WAFB policy. The criteria for a church’s partnering with WAFB include a requirement that the church use the food it receives solely to serve the ill, needy, or infants. In turn, WAFB provides food to its partner agencies for a nominal fee to help cover the costs of food maintenance and storage.
According to the indictment, in 2014 Abston convinced Highland Baptist Church in Gordo, Alabama, to permit him to open a bank account to be used for a church food pantry with WAFB. Abston opened that bank account, in the name of the Highland Baptist Church Food Pantry. Abston was the sole signatory on the account.
Around the same time, Abston applied, on behalf of the Highland Baptist Church Food Pantry, to become a partner agency of WAFB. The application to WAFB claimed that the “general program” of the church food pantry would be to help “feed poor” and “children from disadvantage[d] and poor neighborhoods.” The application claimed that the food pantry would use unemployment, sickness, and poverty as eligibility guidelines for food. The application said nothing about the food pantry’s providing any food to inmates in the Pickens County Jail.
Between 2014 and 2018, Abston wrote more than $80,000 in checks from his own bank account to the church food pantry bank account, and wrote more than $80,000 in checks from the food pantry bank account to WAFB in exchange for food.
According to the indictment, Abston used a significant portion of that food to feed inmates in the Pickens County Jail.
The indictment also alleges that Abston filed false tax returns for the 2015 and 2016 tax years, because he failed to report all of his income for those years.
Each count of wire fraud carries a maximum penalty of 20 years and a fine of up to $250,000. The maximum penalty for filing a false tax return is three years in prison and a $100,000 fine for each count.
The Federal Bureau of Investigation and Internal Revenue Service investigated the case, which Assistant U.S. Attorney John B. Ward is prosecuting.
An indictment contains only charges and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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Petal Woman Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Hattiesburg, Miss. – Martina Tashay Wade, 34, of Petal, pled guilty today before Senior U.S. District Judge Keith Starrett to a Criminal Information charging her with conspiracy to commit bank fraud, announced U.S. Attorney Mike Hurst and Inspector in Charge Chris Cave with the U.S. Postal Service Office of Inspector General, Southern Area Field Office.
In November 2015, Wade conspired to commit bank fraud and participated in the execution of a scheme to obtain money from Citizens Bank by presenting an altered $5,000 check, which had her name added for cashing, and on which she was paid due to her false representation.
Wade will be sentenced by Judge Starrett on October 2, 2019, at 9:45 a.m, in Hattiesburg.
The case was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Andrea Jones.
Pennsylvania Woman Charged with Fraud for Perpetrating “Grandparents Scheme”Read the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Yahaira Diaz, 33, of Pottsville, Pennsylvania, was charged by Information with aggravated identity theft, mail fraud, and access device fraud. The charges against the defendant stem from her participation in what has been popularly dubbed the “Grandparents Scheme”, a type of elder financial abuse. The charges come one day in advance of “World Elder Abuse Awareness Day” on June 15, 2019.
As alleged in the Information, the scheme operated as follows: an individual called an elderly victim posing as the grandchild of the victim, or posing as an attorney representing the grandchild. The caller claimed that the grandchild was in a vehicular accident and was arrested for driving under the influence (or some type of legal trouble). The caller then said that the grandchild needed money for bail or legal representation, and persuaded the victim to send thousands of dollars in cash via overnight delivery service to an address where the schemers retrieved the package. The schemers then continued to call the victim and demand more money until the victim realized that he or she had been defrauded and stopped sending money.
In those telephone calls, to further convince the grandparents to send cash, the co-schemers described the grandchild’s situation as increasingly serious: claiming that the grandchild had been arrested for driving under the influence; that a pregnant woman was involved in the accident; that the pregnant woman and her unborn child were injured or killed; that the grandchild would not be released from prison without additional funds; and that legal and other fees were mounting.
Diaz allegedly played a leadership role in this scheme, which she and her co-schemers perpetrated in Allentown and Bethlehem, Pennsylvania. For example, she identified and arranged for access to residential locations where her co-schemers instructed victims to send the fraud proceeds. Diaz recruited and controlled additional participants in the scheme who allowed her to use their residences for the receipt of proceeds, and who helped retrieve the packages and shared the proceeds with other co-schemers.
Diaz engaged in numerous incidents of the Grandparents Scheme as well as credit card fraud, which is also charged in the Information. In the Grandparents Scheme, Diaz and her co-schemers defrauded at least 10 elderly victims of at least $158,800 and attempted to defraud those victims of at least an additional $69,000. If convicted, the defendant faces a maximum possible sentence of 72 years in prison, including a mandatory minimum term of two years in prison.
“Crimes against the elderly target some of the most vulnerable people in our society, and schemes like the ‘Grandparent Scheme’ are particularly heinous because they prey on a senior’s love for their family,” said U.S. Attorney McSwain. “The Department of Justice is committed to protecting our seniors from fraud, and my Office will continue to prioritize prosecuting criminals who prey on our elderly residents.”
“Trying to scam strangers out of money is criminal,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Specifically targeting elderly victims because you figure they're easy marks is cruel. The FBI will never stop working to shut down elder fraud schemes like this to protect older folks and help them hang on to their hard-earned money.”
“Crimes like these against our elderly citizens are taken very seriously by law enforcement. The Bethlehem Police Department, working with its Federal partners, will investigate, arrest and prosecute individuals involved in criminal scams like these ‘Grandparent Scams,” said Mark DiLuzio, Chief of Police, Bethlehem Police Department. “As Chief, I would like to personally thank U.S. Attorney McSwain and his Office, the FBI, U.S. Postal inspectors, the Northampton County District Attorney’s Office and Bethlehem Police Detectives who all worked collectively and brought this person and her partners to justice. On behalf of all elderly citizens in the City of Bethlehem, thank you!”
The case was investigated by the Federal Bureau of Investigation, the United States Postal Service, the Bethlehem Police Department, and the Northampton County District Attorney’s Office, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
The Department of Justice is committed to combating elder fraud. The Department’s historic 2018 and 2019 Elder Fraud Sweeps collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least 3 million victims.
The Department of Justice also provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime (OVC), which has announced a new competitive solicitation addressing enhanced multidisciplinary teams for older victims of abuse and financial exploitation (up to $375,000 each) and funding for a National Multidisciplinary Team Technical Assistance Center (for up to $3 million), which will help facilitate the expansion of elder abuse case review across the nation. The deadline is July 7, 2019.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
PSN Amarillo Taskforce Arrests 4 Alleged Cocaine DealersRead the Press Release
A Project Safe Neighborhoods - Amarillo Taskforce arrested four defendants while executing search warrants at two North Heights area crack houses, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
All defendants have been charged via criminal complaint with distribution and possession with intent to distribute cocaine or cocaine base, and all remain in federal custody pending trial.
Among those arrested during the PSN - Amarillo raid was Earnest Tywane Drone, 39, a well-known dealer who allegedly sold cocaine to a confidential government source last month. Other defendants include: Joseph Dean Taylor, Treson Blake Fugit, and Trevon Montel Monroe.
Officers recovered crack cocaine, marijuana, and a pistol with ammunition during the raids, which occurred late last month.
The Project Safe Neighborhoods - Amarillo initiative – a coalition of federal and local law enforcement focused on a high-crime hotspot in Amarillo – uses a three-pronged approach that combines traditional enforcement with community outreach and recidivism reduction to drive down violent crime.
Criminal charges are merely an allegations of wrongdoing, not evidence. All defendants in this case are presumed innocent until proven guilty in a court of law.
The joint operation was conducted by Amarillo DPS – Criminal Investigation Division, Amarillo DPS – Texas Highway Patrol, Amarillo DPS Air-Wing, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Amarillo Police Department, the U.S. Marshals’ North Texas Fugitive Task Force, Homeland Security Investigations, the Federal Bureau of Investigation, and the Randall County Sheriff’s Office. Assistant U.S. Attorneys Josh Frausto and Sean Taylor are prosecuting the case.
Previously Convicted Sex Offender from Albuquerque Sentenced to 330 Months in Federal Prison for Making Child PornographyRead the Press Release
ALBUQUERQUE – James Highfield, 64, of Albuquerque, N.M., was sentenced in federal court on June 4, 2019, to 330 months in prison on six counts of production of visual depictions of children engaged in sexually explicit conduct.
Highfield previously pleaded guilty to these offenses on February 22, 2019. In his plea agreement, he admitted using his cellular telephone to take sexually explicit photographs of three children less than 18 years old from September 22, 2017, to October 15, 2017. Highfield committed these offenses although he was required to register as a sex offender based on prior convictions for other sexual offenses.
Homeland Security Investigations and the Bernalillo County Sheriff’s Office investigated this case with the Second Judicial District Attorney’s Office. Assistant U.S. Attorney Sarah Mease prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Owner of Lewiston Counseling Agency Convicted of Health Care FraudRead the Press Release
Portland, Maine. United States Attorney Halsey B. Frank announced Nancy Ludwig, 65, of Lewiston, Maine, was convicted in U.S. District Court following a 5-day jury trial of health care fraud conspiracy, paying kickbacks, using fraudulent medical documents, and obstructing an audit.
According to testimony at trial, Ludwig was the owner of Facing Change, a mental health and substance abuse counseling agency in Lewiston. Abdirashid Ahmed was a Somali interpreter. From about November 2015 until May 2018, Ludwig conspired with Ahmed and others to commit health care fraud. The evidence showed that beginning in February 2015, Ludwig agreed to pay Ahmed a kickback in return for Ahmed bringing MaineCare beneficiaries to Facing Change. Ahmed and other employees at Facing Change then submitted false claims to MaineCare for counseling and interpreter services. In 2016, in response to a MaineCare regulatory change, Ludwig and Ahmed conspired to change the diagnosis of many of those clients to schizophrenia so they could remain eligible to receive MaineCare reimbursement for services at Facing Change. In 2016, auditors with the MaineCare Program Integrity Unit audited Facing Change. Ludwig and many of her employees conspired to manufacture false records in an attempt to deceive the auditor. The fraud continued until May 1, 2018 when federal and state agents executed search warrants at Facing Change and Ahmed’s business.
Ludwig faces up to ten years in prison, three years of supervised release and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
On May 24, 2019, Ahmed pleaded guilty to conspiring to commit health care fraud. In addition to Ahmed and Ludwig’s convictions, five other individuals have been convicted of federal health care crime felonies for their involvement in this case and two other individuals have agreed to civil settlements.
These convictions and civil settlements are the result of a three-year collaborative investigation conducted by the U.S. Department of Health and Human Services-Office of Inspector General, the FBI, and the Maine State Medicaid Fraud Control Unit. The investigation started because of the auditing work done by the MaineCare Program Integrity Unit.
Owner of Mortgage Elimination Company Found Guilty in White Plains Federal Court of $38 Million Fraud ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JACQUELINE GRAHAM was convicted at trial on Wednesday, June 12, 2019, of participating in a conspiracy to commit bank fraud, wire fraud, and mail fraud in connection with a fraudulent debt-elimination scheme to defraud homeowners and banks. GRAHAM was found guilty of the one count she faced after a two-week trial before U.S. District Judge Nelson S. Román.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Jacqueline Graham preyed on vulnerable homeowners who could not afford their mortgage payments during a time of crisis in the housing market. Because of her greed, these homeowners ended up financially worse off than when they found her. We will continue to work with our law enforcement partners to bring to justice those who victimize the vulnerable.”
According to the Indictment in the case and the evidence presented at trial:
From at least 2011 to at least 2012, JACQUELINE GRAHAM partnered with Bruce Lewis and John Ruzza in operating the Valhalla, New York-based Terra Foundation (“Terra”) – which was originally known as the Pillow Foundation – which held itself out as a business that would investigate and eliminate mortgage loans in exchange for fees, soliciting clients who were having difficulties making their mortgage payments. In fact, however, Terra engaged in a wide-ranging scheme to defraud clients, county clerks’ offices, and banks.
The fraudulent scheme, which was created by GRAHAM and Lewis, involved Terra performing “audits” of clients’ mortgages, sending pseudo-legal paperwork to the banks and/or lenders holding the mortgages, and ultimately filing purported mortgage discharges with the relevant county clerks’ offices, which discharges were signed by Lewis or other co-conspirators, claiming falsely to represent the banks and/or mortgage lenders. As a result, anyone doing a title search for one of Terra’s clients would see that the client’s mortgage had been satisfied. The mortgages had not, however, been discharged, and the mortgages were eventually reinstated, after the clients paid their fees.
In order to effectuate the scheme, GRAHAM, Lewis, and Ruzza involved others, including Rocco Cermele, who was Terra’s director of operations and who recruited clients, among other duties; Paula Guadagno, who did real estate title work for, and filed discharges on behalf of, Terra; and Anthony Vigna, a lawyer and CPA who worked in Terra’s offices.
To profit from their scheme, GRAHAM and her co-conspirators charged various fees to Terra’s clients.
In total, GRAHAM and her co-conspirators filed over 60 fraudulent discharges in Westchester and Putnam Counties in New York, and in Connecticut. The fraudulent discharges claimed to discharge mortgages with a total loan principal of nearly $38 million.
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GRAHAM, 53, formerly of Levittown, Pennsylvania, was convicted of one count of conspiracy to commit bank fraud, wire fraud, and mail fraud. The count carries a maximum sentence of 30 years in prison.
Lewis, 67, formerly of Alaska and Washington State, pled guilty to one count of wire fraud relating to the Terra scheme, which carries a maximum sentence of 20 years in prison.
Vigna, 61, of Thornwood, New York, pled guilty to one count of participating in a conspiracy to commit bank fraud, wire fraud, and mail fraud relating to the Terra scheme, which carries a maximum sentence of five years in prison.
Cermele, 56, of Yonkers, New York, pled guilty to one count of participating in a conspiracy to commit mail, wire, and bank fraud, and one count of wire fraud, each relating to the Terra scheme, each of which carries a maximum potential sentence of 30 years in prison, and three additional counts of wire fraud relating to other crimes, each of which carries a maximum potential sentence of 20 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the court.
All defendants are awaiting sentencing.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Berman also thanked the Office of the Westchester County District Attorney’s Office and the Department of Housing and Urban Development for their assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys David Felton, Michael Maimin, and James McMahon are in charge of the prosecutions.
Omaha Man Sentenced to Five Years for Distributing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Benjamin Kabourek, 36, of Omaha was sentenced today in federal court for distributing child pornography. The Honorable Robert F. Rossiter, Jr. sentenced Kabourek to 5 years’ imprisonment. There is no parole in the federal system. After his release from prison Kabourek will serve a 10-year term of supervised release and be required to register as a sex offender. Kabourek must also pay $2,000 in restitution to one of the children whose image he received and maintained on his computer.
Between December, 2016 and January, 2017 Kabourek was observed distributing images of child pornography over the internet. A federal search warrant was served by members of the FBI Child Exploitation Task Force. A search of Kabourek’s electronic devices revealed a video and 7 images of prepubescent minors engaged in sexually explicit conduct.
This 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 United States Attorney’s 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.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Omaha Man Sentenced for Violent Crime SpreeRead the Press Release
United States Attorney Joe Kelly announced that U.S. District Judge Robert F. Rossiter, Jr. sentenced Tyree C. Carney, 26, today to 25 years in federal prison to be followed by 3 years of supervised release. Carney was also ordered to pay $192,898.22 in restitution for the money taken and losses sustained by victims. Carney previously pleaded guilty to conspiracy to commit robbery for his involvement in several crimes of violence between September 23, 2016 and June 12, 2017, and several counts of brandishing a firearm.
U.S. Attorney Kelly remarked, “Carney’s twenty-five year sentence sends a message that the most violent offenders will be imprisoned for lengthy periods of time where they can no longer prey on members of our community. The collaboration of multiple law enforcement agencies was instrumental in achieving Carney’s conviction.”
On September 23, 2016, Carney and another individual robbed the Springfield State Bank in Springfield, Nebraska. Brandishing a firearm, wearing gloves, sunglasses and covering his face Carney went behind the teller counter, demanded money, took a purse from a teller and filled it with $47,022.60 of the bank’s money. The robbers then fled the bank getting into a waiting car. On November 15, 2016, Carney and another individual robbed the American National Bank in Crescent, Iowa. They went into the bank with their faces concealed, displayed handguns, demanded employees get on the ground, and demanded the employees open their drawers and the bank vault. After getting the $94,028, they fled the bank in a vehicle they had carjacked from a woman in southeast Omaha earlier that day. After the robbery, the vehicle was found abandoned in north Omaha.
On March 25, 2017, Carney and another individual, while brandishing firearms and covering their faces, robbed the Cornerstone Bank in Murray, Nebraska. Several employees were ordered to the ground and had their hands zip-tied. One of the employees was ordered to empty the teller drawers and open the vault. Carney and his associate took an undisclosed amount of money and fled the bank. Around 8:15 a.m. on June 12, 2017, Carney and another individual were involved in carjacking a vehicle in north Omaha. Several hours later, they used that vehicle when they drove to the U.S. Bank in Underwood, Iowa and robbed it. With their identities concealed, they ordered employees to the ground, zip-tied them and were able to get into the vault. They left the bank, with $47,801, in the car they had stolen earlier. The bank robberies and carjackings formed the basis for the conspiracy and two of the firearm charges.
On May 15, 2018, Carney went into the Wells Fargo at 3536 Comstock in Bellevue, Nebraska, pointed a gun at a teller and demanded money. The bank had bulletproof glass at the teller counter. The teller did not comply with Carney’s demands and he left the bank. He pleaded guilty to brandishing a firearm during the attempted robbery.
"This sentence today reflects our determination to make an impact on violent crime in the Omaha metro area," said Acting Special Agent in Charge John Barrios. "We appreciate the active collaboration of our state and local partners who share our resolve to keep our communities safe."
The FBI Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives, is responsible for the investigation into the bank robberies for which Carney was convicted. The task force was assisted by Cass County Sheriff’s Office, Omaha Police Department Robbery Unit, Sarpy County Sheriff’s Office, Pottawattamie County Sheriff’s Office, and Bellevue Police Department.
Niagara Falls Man Going to Prison for Selling Cocaine and CrackRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Rico Freeman, 35, of Niagara Falls, NY, who was convicted of conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine, was sentenced to serve 15 years in prison and 10 years of supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Meghan A. Tokash and Joseph M. Tripi, who handled the case, stated that between May 2016 and June 2017, the defendant conspired with others to operate a high-traffic and extremely profitable cocaine and crack cocaine distribution network in Western New York.
Freeman obtained quantities of cocaine and crack cocaine from a local source of supply during the course of this conspiracy. The defendant would then sell the cocaine and crack cocaine directly to customers, or have other co-defendants conduct sales on his behalf.
On May 24, 2017, federal agents executed a search warrant on Freeman's apartment on Main Street in Niagara Falls and seized drug scales and packaging. Residue collected from the scales tested positive for cocaine.
The defendant was arrested along with co-defendants Ramone Westbrook, Corey Bradberry, and Darius Dix, aka Darius Jenkins, who were all previously convicted.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Jonathan D. Larson, New York Field Office; the Niagara County Drug Task Force and Sheriff’s Department, under the direction of Sheriff James Voutour; the Lockport Police Department, under the direction of Chief Stephen Preisch; the Niagara Falls Police Department, under the direction of Bryan DalPorto; and the Niagara County District Attorney’s Office, under the direction of Caroline A. Wojtaszek.
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Newton Woman Pleads Guilty to Commercial Driver’s License FraudRead the Press Release
Jackson, Miss. –Tonya Levera Davis, 49, of Newton, pled guilty today before U.S. District Judge Carlton W. Reeves to aggravated identity theft and to making false statements, announced U.S. Attorney Mike Hurst and Department of Transportation, Office of Inspector General Regional Special Agent in Charge Todd Damiani.
Davis was employed by the Mississippi Department of Public Safety, Newton Department of Motor Vehicles, as a driver’s license examiner. Her employment included the administration of driver’s license applications, both written and computer tests, as well as the administration of Commercial Driver’s License (CDL) testing. Davis was an authorized tester of the written skills portion of the CDL test, but not for the road skills portion.
From June 2016 through May 2018, Davis authorized CDLs to applicants that had not passed the written or road skills portions of the test. She sold CDLs to over 88 unqualified applicants by providing answers to the written skills test. She would further pass the unqualified applicant and use state issued identification numbers of other third party testers to pass unqualified applicants and issue fraudulent CDLs.
Davis is scheduled to be sentenced by Judge Reeves on September 13, 2019, at 8:45 a.m. She faces a maximum penalty of 5 years in federal prison and a $250,000.00 fine.
The case was investigated by the United States Department of Transportation-Office of Inspector General, Federal Bureau of Investigation, Mississippi Department of Public Safety, Mississippi Bureau of Investigation and the Federal Motor Carrier Safety Administration. It is being prosecuted by Assistant United States Attorney Erin Chalk.