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14 June 2019
Armed Drug Dealer Sentenced in CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Frederick Edward Patterson, Jr., 45, of Theodore, Alabama, was sentenced in federal court today, on drug and gun charges. Patterson pled guilty to the two charges, possession with intent to distribute cocaine and using, carrying, or possessing a firearm during or in relation to a drug trafficking felony, on March 7, 2019.
United States District Court Judge Terry F. Moorer imposed a 75 month sentence of imprisonment in Patterson’s case this morning, consisting of 15 months on the drug charge to run consecutively to 60 months on the gun charge. The judge ordered that Patterson serve a total of five years on supervised release when he completes his prison term, during which time he will be required to undergo testing and treatment for drug and alcohol abuse. No fine was imposed, but the judge ordered that Patterson pay $200 in special mandatory assessments.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Arlington, Washington, Man Sentenced to Three Years in Prison for Sexual Abuse of a Minor and Possession of Child PornographyRead the Press Release
A 36-year-old Arlington, Washington, man was sentenced today in U.S. District Court in Tacoma to three years in prison and 15 years of supervised release for sexual abuse of a minor and possession of child pornography, announced U.S. Attorney Brian T. Moran. JAMES C. OVERTON pleaded guilty in January 2019, admitting he used internet messaging applications to have sexual communications with young girls. OVERTON met one 13-year-old girl online and, during the years that followed, convinced her to exchange sexually explicit photos. When she was 15, he took her to Olympic National Park for sexual conduct. At the sentencing hearing U.S. District Judge Ronald B. Leighton said OVERTON engaged in “a pattern of exploitation… this is a serious offense that affects real people.”
According to records filed in the case, OVERTON communicated using the internet with a number of young teens and preteens, attempting to have sexualized conversations with them. Over a period of time, he groomed the 13-year-old for sex and took advantage of her precarious emotional and psychological condition. In November 2016, OVERTON picked up the then-15-year-old from a location near her home and took her into Olympic National Park where he had her engage in sexual conduct. The teen’s family ultimately reported the conduct to law enforcement. When investigators got a court-authorized search warrant for OVERTON’s home and digital devices, they also recovered evidence of more than 100 images of child pornography. OVERTON had attempted to delete the images, but evidence remained on his devices.
OVERTON admitted he had communicated online with a number of young teens between the ages of 12 and 15 in addition to the victim of the sexual assault. Many of those conversations were sexual and involved his trying to obtain sexually explicit videos and images. OVERTON will be required to register as a sex offender.
The case was investigated by the National Park Service and Homeland Security Investigations.
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 Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources better to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Allentown Man Charged with Mail Fraud and Money LaunderingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony W. Redd, age 63, of Allentown, Pennsylvania, was indicted on June 12, 2019, by a federal grand jury on mail fraud and money laundering charges.
According to United States Attorney David J. Freed, the indictment alleges that Redd was a “Money Mule” and participated in a scheme to defraud individuals out of money by making them believe they were eligible for cash and other prizes. As part of the scheme, Redd is alleged to have caused the mailing of legitimate postal money orders from Mechanicsburg to his address in Allentown, Pennsylvania, and to have converted the known proceeds of the scheme to cash or to have sent the proceeds through Western Union or MoneyGram to Costa Rica. The 12-count indictment charged Redd with five separate counts of mail fraud, engaging in a mail fraud and money laundering conspiracy, and both domestic and international money laundering. The indictment also includes a notice of the Government’s intent to seize and forfeit more than $280,000 involved in the scheme.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the conspiracy offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum sentence for each of the mail fraud and money laundering counts is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced JOSE DIAZ-CASTANEDA, 45, of Mexico on June 4, 2019 for illegal re-entry of a previously deported alien into the United States. Diaz-Castaneda was arrested in Casper, Wyoming. He received time served and ordered to pay a $100.00 special assessment, and is subject to deportation. Diaz-Castaneda previously was deported in 2011. The US Immigration and Customs Enforcement investigated this case.
Federal District Court Judge Alan B. Johnson sentenced HILDA GARCIA-RAMOS, 31, of Mexico on June 4, 2019 for illegal re-entry of a previously deported alien into the United States. Garcia-Ramos was arrested in Casper, Wyoming. She received time served and was ordered to pay a $100.00 special assessment, and is subject to deportation. Garcia-Ramos previously was deported in 2010. The US Immigration and Customs Enforcement investigated this case.
Federal District Court Judge Alan B. Johnson sentenced SAMMUEL DWAYNE COE, 32, of Casper, Wyoming on June 5, 2019 for transportation of child pornography. Coe was arrested in Cheyenne, Wyoming. He received seventy-five months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The US Homeland Security Investigations investigated this case.
Federal District Court Judge Alan B. Johnson sentenced KODY NATHANIEL HESS, 30, of Evansville, Wyoming on June 10, 2019 for carrying a firearm during and in relation to a drug trafficking crime and possession with intent to distribute methamphetamine. He was arrested in Casper, Wyoming. Hess received a total of one hundred eighty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $200.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this 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. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Chief Federal District Court Judge Scott W. Skavdahl sentenced CHRISTOPHER LEE HARDY, 38, of Casper, Wyoming on June 13, 2019 for two counts of transportation of child pornography. Hardy was arrested in Casper, Wyoming. He received ninety months of imprisonment, to be followed by one hundred twenty months of supervised release, and ordered to pay a $200.00 fine and restitution in the amount of $5000.00. The US Department of Homeland Security Investigations investigated this case.
13 June 2019
Young Smuggler Caught with Illegal Chinese NationalsRead the Press Release
McALLEN, Texas – An 18-year-old Mexican citizen has been arrested on charges of human smuggling, announced U.S. Attorney Ryan K. Patrick.
The criminal complaint charging Israel Rubio-Rodriguez was filed today. He made his initial appearance before U.S. Magistrate Judge J. Scott Hacker this morning, at which time he was temporarily ordered into custody pending a detention hearing set for June 18, 2019, at 9:30 a.m. before Judge Hacker.
On June 11, 2019, law enforcement conducted a traffic stop on a vehicle Rubio-Rodriguez was driving near Los Ebanos, according to the charges. When authorities approached, they allegedly observed multiple people in the front and back seat of the vehicle. The criminal complaint alleges that an immigration inspection was performed on all passengers of the vehicle and all were determined to be Chinese nationals illegally present in the United States.
If convicted, Rubio-Rodriguez faces up to 10 years in federal prison.
Border Patrol conducted the investigation. Assistant U.S. Attorney Sarina S. DiPiazza is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Wholesaler Admits to Conspiracy to Manufacture and Sell Counterfeit Goods to the U.S. Military & GovernmentRead the Press Release
PROVIDENCE – A Brooklyn, N.Y., clothing and goods wholesaler pleaded guilty in U.S. District Court in Providence today to charges related to his participation in a conspiracy that sold more than twenty million dollars worth of Chinese-made counterfeit goods to the United States military, government purchasers, and companies that supply the U.S. Government.
Among the items that Ramin Kohanbash, 49, and others arranged to counterfeit were 200 military parkas of a type used by U.S. Air Force personnel stationed in Afghanistan. These parkas were falsely represented to be genuine Multicam®, a fabric which incorporates specialized near-infrared management technology designed to make the wearer more difficult to detect with equipment such as night-vision goggles.
Other items carried labels that made explicit, and false, representations about the product’s safety. In one case, labels on counterfeit hoods intended for military and law enforcement personnel stated that the items were “permanently flame resistant,” and that they met a specific industry standard for flame-resistant attire. In reality, the counterfeit hoods were not flame resistant.
“Our men and women in uniform confront danger every day to defend this nation and its values.” said U.S. Attorney Weisman. “The uniforms they wear and the gear they carry are meant to protect them as they carry out their mission, not to put them in harm’s way. This case should serve notice that suppliers who do business with the military must comply with the law, or they will be held to account.”
"Individuals and companies that sell counterfeit goods to the U.S. Department of Defense (DoD) endanger the safety and effectiveness of our military," stated Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service's (DCIS) Northeast Field Office. "Today’s guilty plea is the direct result of a joint investigative effort with the General Services Administration OIG, Army CID, Air Force OSI and Homeland Security Investigations, and demonstrate DCIS' ongoing commitment to work with its law enforcement partners and the U.S. Attorney's Office to protect the integrity of the DoD's procurement process."
Kohanbash admitted to the Court that he and others provided, reviewed, and approved photographs, descriptions, and samples of tags and labels to be attached to the knockoff products, so that the counterfeit versions appeared legitimate. Trademarks and brand names of actual U.S.-made products were added to the foreign counterfeit versions to make them appear legitimate.
The goods were shipped from China to Kohanbash and sold to other wholesalers who ultimately marketed and sold the knock-off products to military and government buyers as genuine, American-made products.
Under two U.S. laws known as The Berry Amendment and the Trade Agreements Act (“TAA”), goods sold to the military and certain other government buyers are required to be manufactured in the United States and certain other designated countries; China is not one of those countries. In order to sell the counterfeit goods, Kohanbash provided wholesalers who did business with the government with false certification letters claiming that the goods were made in the U.S., and therefore complied with the Berry Amendment. In other instances, Kohanbash falsely represented that the goods met TAA requirements.
Kohanbash further admitted that the Government is entitled to forfeit twenty million dollars representing proceeds of the offenses, along with actual counterfeit goods seized during the investigation.
Kohanbash’s guilty plea to conspiracy to commit wire fraud and trafficking in counterfeit goods is announced by United States Attorney Aaron L. Weisman; Leigh-Alistair Barzey, Special Agent-in-Charge of Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Luis A. Hernandez, General Services Administration Office of Inspector General, New England Regional Investigations Office; Resident Agent in Charge Michael D. Conner, Boston Fraud Resident Agency, US Army Criminal Investigation Command; Jason T. Hein, Special Agent in Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Investigation, Detachment; Homeland Security Investigations Newark, NJ, Special Agent in Charge Brian A. Michael, Troy Miller, Director of Custom and Border Protection, New York Field Office.
Kohanbash is scheduled to be sentenced by U.S. District Court on Chief Judge William E. Smith on January 17, 2020.
Conspiracy to commit wire fraud is punishable by statutory penalties of up to 5 years in federal prison, 3 years supervised release, and a fine of up to $250,000; Trafficking in counterfeit goods is punishable by statutory penalties of up to 10 years in federal prison, 3 years supervised release, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Zachary A. Cunha.
Woman from Isleta Pueblo Charged with Assaulting Federal Officer in Indian CountryRead the Press Release
ALBUQUERQUE – Marybeth Jiron, 56, of Isleta Pueblo, N.M., appeared in federal court yesterday on charges of assaulting a federal officer in Indian Country.
A grand jury returned an indictment on February 27, 2019, charging Jiron with two counts of assault upon a federal officer involving physical contact within the boundaries of the Pueblo of Isleta. According to documents filed in court, police responded to an emergency call on January 31, 2019, reporting that Jiron was walking in and out of traffic on a highway. When officers arrived, they found Jiron yelling and belligerent. Jiron threw a cigarette lighter at one of the officers, hitting the officer in the leg. Jiron also flicked a burning cigarette in the officer’s eye. When a second officer tried to intervene, Jiron hit the second officer in the face, bruising the officer’s cheek. Jiron is an enrolled member of the Pueblo of Isleta.
Jiron is currently in custody pending trial. She faces up to 8 years in prison if convicted. Indictments are only accusations. A defendant is presumed innocent until proven guilty.
The Pueblo of Isleta Police Department investigated this case. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
U.S. Attorney’s Office Promotes Elder Justice Initiative by Partnering with Meals on WheelsRead the Press Release
RALEIGH – The U.S. Attorney’s Office for the Eastern District of North Carolina is promoting the Department of Justice’s (DOJ) Elder Justice Initiative (EJI) throughout the Wake County area. On June 13, 2019, the Eastern District partnered with Meals on Wheels in Wake County to conduct outreach to approximately 1,300 seniors in the area to raise awareness about DOJ’s Elder Justice Initiative and provide facts about elder abuse. Elder abuse includes physical abuse, psychological abuse, sexual abuse, neglect and abandonment, and financial abuse.
Below are some facts shared with the community about the impact of elder abuse, neglect and exploitation:
•Elder abuse triples the risk of premature death and causes unnecessary illness, injury, and suffering.
•Victims of elder abused are four times more likely to be admitted to a nursing home and three times more likely to be admitted to a hospital.
•Financial exploitation causes large economic losses for businesses, families, elders, and government programs, and increases reliance on federal and state health care programs, such as Medicare and Medicaid.
•Older adults with cognitive incapacity suffer significantly greater economic losses than those without such incapacity.
•As a result of providing care for an older adult, some caregivers experience declines in their own physical and mental health.
The mission of the Elder Justice Initiative is to support and coordinate DOJ’s enforcement and programmatic efforts to prevent and combat elder abuse, neglect, financial exploitation and scams that target our nation’s seniors by promoting justice for older adults; helping older victims and their families; enhancing state and local efforts through training and resources; and supporting research to improve elder abuse policy and practice.
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1- 855-4VICTIM (1-855-4842846), or contact the Elder Justice Coordinator at the U.S. Attorney’s Office for the Eastern District of North Carolina at (919) 856-4530.
U.S. Attorney’s Office Announces the Launch of a Drug Prevention Initiative Involving a Documentary Film and Public Service AnnouncementRead the Press Release
The U.S. Attorney’s Office has developed and launched a drug prevention initiative. Speaking today at Turning Point, located at 179 North Winooski Avenue, Burlington, Vermont, U.S. Attorney Christina E. Nolan described the initiative and played the accompanying Public Service Announcement (PSA) and documentary film, Face of Recovery. Both the PSA and documentary focus on the story of Justin Goulet, who has a history of addiction to drugs and was previously convicted of federal drug and gun crimes. Mr. Goulet made a remarkable recovery and has enjoyed an extended period of sobriety.
The U.S. Attorney’s Office worked with Film Production Director, Jeremy Leibovitch, and Graham Raubvogel, both of Prom Creative, to create the PSA and documentary. This drug prevention initiative is an outreach project that carries a message of hope in the midst of the drug crisis. The documentary and PSA are also meant to highlight the existence and importance of solidarity and collaboration amongst Vermont’s enforcement, prevention, treatment, and recovery communities. The U.S. Attorney’s Office plans to present Face of Recovery to audiences across the Vermont, including to young people and at community and recovery centers. The presentations will be interactive, with attendance by Mr. Goulet and U.S. Attorney Nolan, as well as time for conversation and questions and answers. The first public viewing and interactive presentation will occur on July 19 at Turning Point, 179 North Winooski Avenue, Burlington, Vermont.
This prevention initiative has been a collective effort. The U.S. Attorney’s Office thanks Mr. Goulet, Mr. Leibovitch, Mr. Raubvogel, and Turning Point for their essential contributions to the Project.
If you are interested in scheduling a presentation and showing, please contact Aimee Stearns, Victim Witness Coordinator, or Kraig LaPorte, Public Information Officer, at the U.S. Attorney’s Office at (802) 951-6725.
The Face of Recovery documentary film and PSA can be accessed by the following links:
PSA Face of Recovery - https://www.youtube.com/watch?v=l5Q3ojD1fic
Face of Recovery (Full Length) - https://www.youtube.com/watch?v=N-uPf-_sRGETwo indictments among 1,700 nationwide for child exploitation in 'Operation Broken Heart'Read the Press Release
SAVANNAH, GA: Two Georgia men are among nearly 1,700 arrested for child sex exploitation crimes as part of a nationwide Department of Justice initiative.
Steven Andrew Ross, 29, of Savannah, is charged with Attempted Sex Trafficking of a Minor and Attempted Coercion and Enticement of a Minor to Engage in Sexual Activity for incidents in Camden and Chatham counties, and Benjamin Ray, 38, of Honea Path, S.C., is charged with Attempted Coercion and Enticement of a Minor to Engage in Sexual Activity and Felony Offense Involving a Minor Committed by a Registered Sex Offender for incidents in Chatham County, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The federal charges for which Ray is indicted carry a penalty of 20 years to life in prison, while the charges against Ross carry a penalty of 10 years to life in prison. There is no parole in the federal system, and if released, each defendant would be subject to serve supervised release for five years to life.
“As the perception of sexual exploitation of children continues to move from windowless vans in back alleys to Dark Web sites on the Internet, the investigation and prosecution of these vile crimes must continue to evolve,” said U.S. Attorney Christine. “We are determined, with our law enforcement partners, to find these criminals wherever they try to hide and protect the innocent from victimization.”
Operation Broken Heart, a nationwide operation conducted during April and May by the Internet Crimes Against Children task forces, led to the arrest of nearly 1,700 suspected online child sex offenders. The task forces identified 308 offenders who either produced child pornography or committed child sexual abuse, and identified 357 children who suffered recent, ongoing or historical sexual abuse or were exploited in the production of child pornography.
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.”
“Sexual exploitation steals the innocence of children, and the criminals who engage in these acts often inflict life-long trauma on their victims,” said Special Agent in Charge Nick S. Annan of the Atlanta field office of Homeland Security Investigations. “HSI is committed to investigating child exploitation cases as one of its highest priorities, and we deeply appreciate the efforts of our U.S. Attorney partners to protect children from these terrible crimes.”
The ICAC Program is funded through the Department’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) within the Office of Justice Programs (OJP). For more information, visit the ICAC Task Force webpage at www.icactaskforce.org.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The cases in the Southern District of Georgia are being investigated by Homeland Security Investigations and the Savannah Police Department, in conjunction with the Internet Crimes Against Children Task Force. The cases are being prosecuted for the United States by Assistant U.S. Attorney Tania Groover.
Two Men Charged with Murder-For-HireRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a federal indictment charging VANCE COLLINS, a/k/a “Big AK,” 50, and RAMON RAMIREZ, a/k/a “Obendy,” 48, with hiring a hitman to murder an individual believed to be having an affair with RAMIREZ’s wife. COLLINS was arrested this morning in the Bronx and RAMIREZ was arrested this morning in Staten Island. The target of their murder-for-hire plan was not killed. Both defendants were presented this afternoon before United States Magistrate Judge Katharine H. Parker and detained. The case has been assigned to United States District Judge P. Kevin Castel.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, Vance Collins and Ramon Ramirez put a price on another human’s life when they hired someone to kill a person believed to be having an affair with Ramirez’s spouse. Thanks to the work of our remarkable law enforcement partners, Collins and Ramirez now stand charged in federal court for their alleged roles in this terrible crime.”
FBI Assistant Director William F. Sweeney Jr. said: “Murder-for-hire cases are more common than one might think, and the FBI has a number of investigative resources and federal laws we can tap into to help us prevent these potential crimes. But the fact that the plan allegedly concocted by Collins and Ramirez was ultimately unsuccessful shouldn’t overshadow the gravity of this situation – the intent was the same, regardless of the outcome.”
According to the allegations in the Indictment[1]:
In or about late 2017, COLLINS and RAMIREZ hired another person to murder a man believed to be having an affair with RAMIREZ’s wife, and conspired to carry out this murder-for-hire plot from 2017 through 2018, in violation of 18 U.S.C. §§ 1958 and 2. Each charge in the two-count indictment carries a maximum penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
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Mr. Berman praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office, New York State Police, New York City Police Department, Mount Vernon Police Department, Yonkers Police Department, Greenburgh Police Department, Peekskill Police Department, Westchester County Police Department, and Westchester County District Attorney’s Office.
This case is being handled by the Office’s Violent and Organized Crime Unit and White Plains Division. Assistant United States Attorneys Christopher Brumwell and Celia V. Cohen are in charge of the prosecution.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two La Crosse County Men Sentenced for Gun CrimesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jesse Turnmire, 30, Bangor, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson, to five years in federal prison, for possessing firearms as a convicted felon. Turnmire pleaded guilty to this charge on March 15, 2019. His prison term will be followed by a three-year period of supervised release.
On December 15, 2018, residents at an apartment complex in La Crosse reported shots-fired. Officers recovered four Remington 9mm shell casings at the scene. Through interviews, officers developed Turnmire as a suspect. Turnmire was subsequently arrested after fleeing from a vehicle, and two firearms were recovered from the vehicle. One had been reported stolen, and Turnmire had a photo of the firearm on his phone. The other firearm was examined by the State Crime Lab, and the lab confirmed it had been used in the shooting. Turnmire’s prior felony convictions are: 2013 Bail Jumping; 2014 Possession of Methamphetamine; 2014 Theft of Automobile; 2015 Possession of Methamphetamine; and 2016 Possession of Narcotic Drug.
In another case, Emmanuel Hunt, 24, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to four years in federal prison for also possessing firearms as a convicted felon. Hunt pleaded guilty to this charge on February 21, 2019. His prison term will also be followed by a three-year term of supervised release.
On November 22, 2018, Hunt was stopped for speeding and he was arrested on an outstanding warrant. A search of the vehicle incident to arrest led to the recovery of a loaded handgun under the driver's seat.
On December 5, 2018, Hunt was stopped by the La Crosse County Sheriff's Department after he was observed driving erratically. When deputies approached the car, they smelled marijuana and observed marijuana in the vehicle. A search incident to arrest led to the recovery of a loaded, stolen handgun in Hunt’s waistband. A search of the vehicle revealed a second loaded, stolen handgun under the passenger seat. Hunt’s prior felony convictions are: Manufacture/Deliver Cannabis (2014, Cook County, Illinois) and Aggravated Unlawful Use of a Weapon (2016, Cook County, Illinois).
These cases have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Turnmire and Hunt were the result of investigations conducted by the La Crosse Police Department, the La Crosse County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of these cases have been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Turtle Creek Man Sentenced for Passing Counterfeit CashRead the Press Release
PITTSBURGH, Pa. - A resident of Turtle Creek, PA, has been sentenced in federal court to three years of probation and ordered to pay $9,570.00 in restitution on his conviction of conspiracy and passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Edward J. Botti, 34.
According to information presented to the court, Botti conspired and passed counterfeit $100, $50, and $20 FRNs throughout the Western District of Pennsylvania..
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Secret Service for the investigation leading to the successful prosecution of Botti.
Three from Toledo charged for identity-theft conspiracy in which they obtained stolen or unauthorized credit cards to buy electronics, clothing, appliances and other itemsRead the Press Release
A 16-count indictment was unsealed charging three people for their roles in a conspiracy to steal people’s identities and personal information to obtain stolen or unauthorized credit cards to buy electronics, clothing, appliances and other items.
Indicted are: Terrance Carter, 25; Carrie Gibson, 30, and Angelina Carter, 24. The charges include conspiracy, mail fraud and aggravated identity theft.
The defendants stole mail from mailboxes and vehicles to obtain personal identifying information, including social security numbers, driver’s license numbers and credit card information, according to the indictment.
They used this information to create lists that included the victims’ addresses, dates of birth, bank information and other information. They used this information to obtain things of value for themselves or to resell, according to the indictment.
For example, Terrance Carter purchased a gold bar with a credit account issued to a victim in January 2016. In March 2017, the defendants used an unauthorized Lowe’s credit card to purchase $1,225 in merchandise from the Lowe’s on Airport Highway in Toledo. A month later, Angelina Carter and Gibson used a stolen credit card to purchase $285 worth of goods from a Walmart on West Central Avenue, according to the indictment.
This conspiracy occurred between 2015 and 2017, according to the indictment.
The investigation is ongoing.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Toledo Police Department, Sylvania Police Department and the U.S. Secret Service. The case is being handled by Assistant U.S Attorneys Jody L. King and Robert N. Melching.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Physicians and Five Marketers Charged for Violations to Federal Anti-Kickback StatutesRead the Press Release
TULSA, Okla. – Three physicians and five marketers have been charged in U.S. District Court with violations of the federal anti-kickback statute and other criminal offenses, announced U.S. Attorney Trent Shores. The men allegedly caused federal health care insurance programs to pay reimbursement costs for fraudulent and expensive compounding drug prescriptions written by recruited doctors in return for kickback payments. The defendants would then use the reimbursed funds for their own financial gain.
“Sadly, the American taxpayer ends up paying the price when unscrupulous medical professionals fraudulently bill federal health insurance. In these cases, patients believed they were receiving a compounded cream that fit their specific medical need. In actuality, the charges allege that the drug mixtures prescribed and received by the patients were designed to line the pockets of criminally corrupt doctors with illegally begotten funds,” said U.S. Attorney Shores. “Every dollar we recover from those who defraud federal health insurance programs will be a dollar that goes back to providing healthcare for Americans served by these programs.”
Dr. Krishna Balarma Parchuri, 44, of Tulsa, is charged in a superseding Indictment along with Christopher R. Parks, 57, of Tulsa, Dr. Gary Robert Lee, 58, of Tulsa, and Dr. Jerry May Keepers, 65, of Kingwood, Texas, with conspiracy to commit health care fraud. Keepers and Parchuri are also charged with soliciting and receiving illegal bribes and kickback payments. Parchuri is further charged with obstructing the criminal investigation into the health care offenses.
The criminal indictment alleges that since November 2012, Parks and Lee, engaged in a conspiracy to unlawfully pay kickbacks and bribes to physicians in order to induce the physicians to write expensive compounding prescriptions to pharmacies they controlled, including OK Compounding LLC, in Skiatook, One Stop RX LLC in Tulsa and NBJ Pharmacy LLC and Airport McKay Pharmacy, both in Houston. The defendants then allegedly submitted large claims for payment to federal health care programs and divided the profits. The defendants are accused of causing Tricare to pay reimbursement for false claims in the total amount of $3,207, 514.97; Medicare in total of $285,776.87; FECA Program in total of $552,544.55; and CHAMPVA in total of $310,273.64.
Compounding prescriptions is a practice in which a pharmacist or physician combines ingredients of multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies. Compounded drugs are not to be mixed or marketed in bulk.
The charges allege that, in some cases, physicians were provided pre-printed prescription pads that listed compounding formula choices. Participating physicians allegedly checked a box with their preferred selection and then faxed it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.
Parchuri, an orthopedic surgeon practicing in Tulsa, Oklahoma, and a doctor of osteopathic medicine licensed in Arizona, Kansas, Oklahoma, Florida, and Texas, received kickbacks and bribes in varying amounts up to $50,000 per month from Parks and Lee in exchange for writing compounded drug prescriptions that were submitted to pharmacies controlled by the two men.
Keepers allegedly solicited and received more than $860,000 in illegal bribe and kickback payments from Parks and Lee.
According to the indictment, kickback payments were disguised through various sham business arrangements, including contracts where physicians purported to serve as “medical directors” or “consulting physicians” for the pharmacies. Doctors were also recruited as “medical directors” for a university study. In actuality, the sham arrangements were meant to conceal the fact doctors were receiving kickback payments for writing prescriptions. Additionally, limited liability companies (“LLCs”) were created, owned and operated by the corrupt pharmacies/marketers and physicians who submitted the compounding prescriptions. After the pharmacies received payments for the illegal prescriptions, the conspirators transferred the profits to the LLCs to be divided among the conspirators.
Jonathon Yates Boyd III, 47, of Sugarland, Texas, is charged in an Information for conspiring to pay health care kickbacks. In 2012, Boyd formed R&A Marketing LLC, in Houston, Texas, and began recruiting physicians to write prescriptions for compounded drugs. From November 2012 to September 2014, Boyd conspired to pay kickbacks and bribes to physicians to induce them to write prescriptions for expensive compounded drugs and to submit those prescriptions to pharmacies controlled and operated by Parks and Lee. The conspirators then submitted large claims for payment to various federal health care programs and divided the profits from the federally-paid claims. Boyd was paid a commission based upon the reimbursed prescriptions.
The kickback payments were allegedly disguised through fraudulent business arrangements. Contracts were created between the corrupt pharmacies and physicians for services as “medical directors” or “consulting physicians” to the pharmacies. In actuality, the doctors did not provide the services. The sham arrangements were meant to conceal the fact doctors were receiving kickback payments for writing prescriptions. R&A Marketing and the pharmacies were each responsible for their prearranged portion of the kickback payments.
Daniel Richard Ferguson, 47, of Broken Arrow; John Richard Frohrip, 52, of Tulsa; and Kevin Ellis Partin, 49, of Bixby are charged in three separate Informations with offering or paying health care kickbacks. On March 30, 2015, the men allegedly paid a physician a $15,000 check payment from an account controlled by Brookhaven Specialty Pharmacy, LLC, which constituted a kickback in return for the physician referring patients to Brookhaven for compounding prescriptions that would be reimbursed by the federal health care program Tricare.
Conspiracy to violate the anti-kickback statute carries a possible maximum sentence of five years in prison and a $250,000 fine, while violating the anti-kickback statute carries up to 10 years in prison and a $100,000 possible fine. A conviction of health care fraud without injury or death also carries a possible maximum of 10 years in prison, but if resulting in injury or death, the maximum penalty climbs to 20 years or life in prison, respectively.
Assistant U.S. Attorneys Melody N. Nelson and Richard M. Cella are prosecuting the cases. The Department of Labor- Office of Inspector General (OIG), IRS - Criminal Investigation, U.S. Postal Service- OIG, Department of Veterans Affairs- OIG, FBI, the Department of Health and Human Services-OIG, and Defense Criminal Investigative Service conducted the investigation.
Three Brockton Men Indicted for Selling Drugs via the Dark WebRead the Press Release
BOSTON – Three Brockton men were indicted yesterday in federal court in Boston on charges of conspiring to manufacture and distribute controlled substances.
Binh Thanh Le, 22, Steven McCall, 23, and Allante Pires, 22, were each charged with conspiring to manufacture and distribute MDMA, Ketamine and Xanax. All three men were previously charged by criminal complaint and were detained following an initial appearance in federal court in May 2019.
According to the charging documents, Le, McCall, and Pires received wholesale quantities of controlled substances in the mail. The three men then processed and manufactured those controlled substances at an office space they rented in Stoughton. To distribute the drugs, the men allegedly created a vendor site entitled “EastSideHigh” on Dark Net Market websites, where they advertised various drugs for sale, including cocaine, MDMA, Ketamine and Xanax.
More than 20 kilograms of MDMA, more than seven kilograms of Ketamine, more than 10,000 Xanax pills, more than $200,000 worth of Bitcoin, and more than $100,000 in cash were seized by authorities. During the execution of a search warrant at the office space in Stoughton, agents encountered and arrested McCall, who was wearing latex gloves and a respirator, and was believed to be in the process of filling drug orders. During the search of that office space, a computer with the “EastSideHigh” vendor page open, and numerous packages containing MDMA and Ketamine, various shipping and packaging materials, and a pill press were recovered.
During the investigation, an undercover federal agent ordered MDMA from one of the “EastSideHigh” vendor sites on a Dark Net Marketplace, and later observed Le allegedly deposit the envelope containing the agent’s order into a United States Postal Service collection box in Stoughton. Pursuant to federal search warrants, numerous other envelopes containing MDMA and Ketamine, which are connected to this drug distribution scheme, were intercepted
On March 27, 2019, Le allegedly met with undercover law enforcement officers at a hotel in Norwood for the purpose of exchanging $200,000 worth of Bitcoin for cash. Le was arrested after he transferred the bitcoin to the agents.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; and Norfolk County District Attorney Michael W. Morrissey made the announcement today. Agents from Homeland Security Investigations in Colorado, Postal Inspectors from around the country, and the Stoughton, Norwood, and Brockton Police Departments assisted in the investigation. Assistant U.S. Attorneys James E. Arnold of Lelling’s Narcotics & Money Laundering Unit and Rachel E. Goldstein of Lelling’s Asset Recovery Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Swiss Man Charged in Manhattan Federal Court for Insider Trading Scheme That Generated More Than $4.7 Million in ProfitsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the indictment of ROLAND MATHYS for his participation in a scheme to trade on material, nonpublic information (the “Inside Information”) regarding a tender offer by Sanofi, S.A (“Sanofi”) for Bioverativ, Inc. (“Bioverativ”). After the tender offer was announced, MATHYS’s trading yielded over $4.7 million in illegal profits.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Roland Mathys engaged in insider trading, and profited to the tune of nearly $5 million – until his scheme was exposed. He allegedly used confidential information about a pending acquisition of a company to purchase call options in that company, knowing that the value of these options would balloon after the acquisition was publicly announced. Working with the FBI and the SEC, we remain committed to policing the marketplace to take the profit out of cheating.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Every time someone engages in insider trading, they illegally stack investment odds in their favor. Mathys’s alleged behavior is not only dishonorable, but illegal. While this type of activity might initially prove profitable, in the long run there’s nothing to be gained.”
According to the allegations contained in the Indictment filed today in Manhattan federal court[1]:
Background of Sanofi’s Tender Offer for Bioverativ
On November 3, 2017, Sanofi, a multinational pharmaceutical company headquartered in Paris, France, delivered to Bioverativ, a multinational biotechnology company headquartered in Waltham, Massachusetts, a non-binding proposal offering to acquire all outstanding shares of Bioverativ at a price of $98.50 per share in cash. Bioverativ specialized in the development and commercialization of therapies for the treatment of hemophilia, and its stock was traded under the ticker symbol “BIVV” on the NASDAQ Stock Exchange. On December 5, 2017, Sanofi and Bioverativ entered into a confidentiality agreement regarding the acquisition negotiations. On December 18, 2017, representatives of Sanofi and Bioverativ met in New York, New York, for a management presentation, which included a review of Bioverativ’s business, products and pipeline, operations, and projections. On January 4, 2018, Sanofi indicated that it would be willing to pursue an acquisition of Bioverativ at a price of $105 per share, subject to Sanofi’s successful completion of due diligence and Bioverativ’s agreement to engage exclusively with Sanofi. On January 6, 2018, Sanofi and Bioverativ executed an exclusivity agreement, which provided Sanofi with the right, through January 26, 2018, to negotiate exclusively the potential acquisition of all the outstanding shares of Bioverativ at the price of $105 per share.
The Sanofi Executive Acquires Inside Information About the Acquisition of Bioverativ and Discloses it to his Family Member
By January 7, 2018, Individual-1, in connection with his employment as an executive vice president at Sanofi, learned that an acquisition of Bioverativ by Sanofi was being negotiated, that such an acquisition was likely to happen, and that such an acquisition would take place in the near future, which Inside Information he had a duty to keep confidential. On or about January 8, 2018, during a telephone conversation, Individual-1 disclosed to his family member, Individual-2, Inside Information regarding Sanofi’s planned acquisition of Bioverativ. Specifically, Individual-1 told Individual-2, in sum and substance, that Sanofi was acquiring a Boston-based biotech company involved in developing a hemophilia drug.
Individual-2 Discloses Inside Information about the Acquisition of Bioverativ to MATHYS
Between January 8, 2018, and January 12, 2018, Individual-2 disclosed to his friend MATHYS Inside Information regarding Sanofi’s planned acquisition and the fact that Individual-2 had learned the Inside Information from Individual-1. Based on MATHYS’s prior dealings with Individual-1, MATHYS knew that Individual-1 was an executive vice president at Sanofi.
From January 12, 2018, through on January 19, 2018, MATHYS purchased approximately 1,607 Bioverativ call option contracts, all with an expiration date of February 16, 2018, for a total purchase price of approximately $170,071. MATHYS’s purchases constituted a significant percentage of the trading in Bioverativ call options on each day, as shown in the table below.
Date of purchase
Number of call option contracts purchased
Strike price
Average premium paid
Percentage
of trading
by MATHYS
1/12/18
342
$65
$2.44
75%
1/12/18
370
$70
$0.79
82%
1/12/18
100
$75
$0.59
96%
1/16/18
100
$75
$0.80
97%
1/17/18
20
$65
$2.29
32.2%
1/17/18
100
$75
$0.50
95%
1/18/18
300
$75
$0.59
100%
1/19/18
275
$75
$0.56
50%
The Acquisition is Announced, and Bioverativ’s Share Price Increases by Approximately 62%
On the evening of Sunday, January 21, 2018, Sanofi and Bioverativ entered into a merger agreement (the “Merger Agreement”). Pursuant to the Merger Agreement, Sanofi would commence a tender offer no later than 15 business days after the date of the Merger Agreement, to acquire all of the outstanding shares of common stock of Bioverativ, at a purchase price of $105.00 per share (the “Tender Offer”), which represented a premium of approximately 64% over Bioverativ’s closing price the prior trading day.
On the morning of Monday, January 22, 2018, prior to the opening of the financial markets in Paris and New York, Sanofi and Bioverativ issued a joint press release announcing the signing of the Merger Agreement (the “Announcement”).
On January 22, 2018, following the Announcement, Bioverativ shares opened trading at $104.21 per share, reached an intra-day high of $104.30 per share, and closed at $103.79 per share, an increase of approximately 62% over the closing price on the prior trading day. Since Bioverativ shares had begun trading on the NASDAQ in January 2017, they had never closed at or above $64.12.
MATHYS’s Insider Trading Generates an Illicit Profit of Over $4.7 Million
On January 22, 2018, MATHYS sold all the Bioverativ call option contracts that had a strike price of $65 or $70, for a net profit of approximately $2,518,622.70. On January 23 and 26, 2018, he sold 325 Bioverativ call option contracts with a strike price of $75, for a net profit of approximately $711,000.81.
On January 26, 2018, at the request of his relationship manager at Credit Suisse, Ltd. (the “Relationship Manager”), MATHYS executed a declaration in which he represented that his transactions in Bioverativ call options were based only on publicly available information and/or personal market analysis, and that no Inside Information was used. MATHYS also stated to the Relationship Manager that MATHYS was extremely surprised by the developments relating to Bioverativ, that he had nothing to do with Bioverativ or Sanofi, and that he did not have any information relating to Bioverativ’s acquisition when he purchased Bioverativ options.
On February 8, 2018, the Securities and Exchange Commission (the “SEC”) obtained a preliminary injunction freezing the approximately $3,229,623.51 in proceeds that MATHYS had generated from selling a portion of the Bioverativ call options (the “Preliminary Injunction”). On February 16, 2018, pursuant to a court order, the SEC directed the liquidation of the remaining 550 Bioverativ call option contracts, which resulted in net profits of approximately $1,568,732.47, which were also frozen pursuant to the Preliminary Injunction.
Between February 8, 2018, and February 10, 2018, MATHYS acknowledged to Individual-2, in sum and substance, that MATHYS had traded in Bioverativ based on the Inside Information that MATHYS had obtained from Individual-2.
* * *
MATHYS, 32, is a citizen and resident of Switzerland.
MATHYS is charged with one count of fraud in connection with a tender offer, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court. The case has been assigned to U.S. District Judge Denise Cote.
Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
St. Louis City Man Sentenced for Fraudulently Cashing Another's Social Security Disability CheckRead the Press Release
St. Louis, MO – Christopher Lamar Smith, 34, of St. Louis, was sentenced to 26 months in prison for bank fraud, misuse of a social security number, and fraudulent use of identification documents. Smith appeared before U.S. District Court Judge Rodney W. Sippel who ordered him to pay $24,852 in restitution to the victim.
According to court records, Smith fraudulently obtained a Social Security Administration check properly payable to another individual related to disability insurance benefits. Smith then used the victim’s name and other personal information to create a fictitious Missouri non-driver’s license and open a bank account in the victim’s name. Smith then deposited the check into the fraudulent account and withdrew the funds over the course of the next month for his own personal use...
Smith pled guilty in February 2019.
The Social Security Administration, Office of Inspector General, investigated this case. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney's Office.
Southwest Houston Man Convicted of Sex Trafficking Adult Women by ForceRead the Press Release
HOUSTON – A 28-year old resident of Katy has admitted he conspired to compel three adult women to engage in sex trafficking by means of force and violence in Houston and other locations across the country, announced U.S. Attorney Ryan K. Patrick.
Marquis Holmes aka “Goldie” pleaded guilty to one count of conspiracy to engage in sex trafficking by means of force, fraud and coercion; two counts of transportation to engage in prostitution; and two counts of enticing and coercing another to travel in interstate commerce for prostitution.
From June 2015 until his arrest in March 2018, Holmes scoured social media websites to recruit women, often under false pretenses, to work as prostitutes for him. Under threat of violence and actual violence, Holmes prostituted two of these women in Houston and Austin; New Orleans, Louisiana; Memphis, Tennessee; Pittsburgh, Pennsylvania; Mississippi; Alabama; South Carolina and other locations across the country. Holmes coerced the women to pose for pictures used in online advertisements for sex and to engage in commercial sex acts for money. Holmes collected all the money the women earned.
On March 30, 2018, authorities arrested Holmes, at which time a third victim was rescued along with her infant child. After repeatedly physically assaulting the woman, Holmes forced her to solicit commercial sex dates along the 1.3 mile stretch of Bissonnet St., commonly referred to as “The Track.” If she did not meet the monetary quota Holmes had set, he beat her and deprived her of food.
Holmes has been and will remain in custody pending his sentencing, set for Sept. 19, 2019. At that time, he faces up to life in prison.
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation.
HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Coast Guard and sheriff’s offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sebastian Edwards and Carrie Wirsing prosecuted this case.
South Florida Pill Mill Owner Sentenced to Prison for Role in $2.2 Million Medicare Fraud SchemeRead the Press Release
The owner of a pain clinic and a pharmacy in South Florida was sentenced today to 78 months in prison followed by three years of supervised release for his role in a $2.2 million Medicare fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Scott Novick, 51, of Hollywood, Florida, was sentenced by U.S. District Judge K. Michael Moore of the Southern District of Florida, who also ordered Novick to forfeit approximately $1.4 million. Novick had previously pleaded guilty to one count of conspiracy to commit health care fraud. As part of his plea agreement, Novick agreed to liquidate several financial accounts worth approximately $1,329,886, the proceeds of which were ordered at sentencing to be paid back to Medicare.
According to admissions made as part of his plea agreement, Novick was the owner of American Pain Management, a pain clinic that had locations in Broward and Palm Beach County. Novick also owned Pacific Pharmacy of Miami, Florida where the majority of the prescriptions written by American Pain Management were filled. Novick admitted to submitting approximately $1.2 million in fraudulent claims to Medicare for pain management services purportedly rendered by a doctor who worked at American Pain Management that Novick knew were fraudulently submitted and not eligible for reimbursement. Novick also admitted that in 2010, in response to legislation passed by the Florida Legislature prohibiting pain clinics from dispensing controlled substances directly from the clinic and other concerns about federal anti-kickback laws, he disguised his ownership of Pacific Pharmacy, falsely naming a relative so that he could continue dispensing controlled substances. Novick admitted that he knew the doctor at American Pain Management was prescribing controlled substances at inappropriately high levels and that the drugs had not been prescribed for a legitimate medical purpose or in the usual course of professional practice. In fact, Novick knew the doctor would sign prescriptions for patients without conducting a visit with the patient. Novick admitted he and his clinics received approximately $1.4 million in compensation for his participation in the conspiracy and submitted approximately $1.2 million in claims to Medicare for the medical services rendered by the doctor that were fraudulently submitted and not eligible for reimbursement. Pacific Pharmacy was also paid in excess of $1 million for the drugs, which were not eligible for reimbursement.
The FBI and HHS-OIG investigated the case which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorney Timothy P. Loper and Acting Assistant Chief Jacob Foster of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
South Bend, Indiana Woman Sentenced to 72 Months in PrisonRead the Press Release
SOUTH BEND – Jaronna Groves, age 22, of South Bend, Indiana, was sentenced before United States District Court Judge Robert L. Miller, Jr. upon her plea of guilty to possession of a firearm in furtherance of a drug trafficking crime and possessing with intent to distribute fentanyl, announced U.S. Attorney Kirsch.
Groves was sentenced to 72 months in prison followed by 2 years of supervised release.
During several months in 2018, Groves participated in the distribution of drugs in South Bend. Several of her acquaintances distributed heroin, fentanyl, and other drugs. Sometimes they used their own phones to do so, while other times they shared a common drug phone that customers would call. On numerous occasions during June and July, 2018, she personally conducted drug sales to customers who had contacted the common drug phone. Groves obtained a house on South Illinois Street in May, 2018, to allow her acquaintances to meet and discuss drug distribution. She allowed them to store drugs, guns and cash in her house. On July 13, 2018, investigators searched her house and found over 100 grams of fentanyl in her bedroom, along with cash, a money counter, scales, and 2 loaded handguns.
This case was investigated by ATF with assistance from the South Bend Police Department. The case was handled by Assistant U.S. Attorneys Joel R. Gabrielse and Molly E. Donnelly.
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South Bend Man Convicted Following 4-Day Jury TrialRead the Press Release
SOUTH BEND – Donyea Fowler, age 34, of South Bend, Indiana was convicted of 6 counts of Hobbs Act Robbery and 7 counts of federal firearm offenses (being a felon in possession of a firearm and 6 counts for using a firearm in relation to crimes of violence (each of the six (6) Hobbs Act robberies), announced U.S. Attorney Kirsch.
U.S. District Court Judge Jon E. DeGuilio, presided over this 4-day trial.
According to documents in this case, in late 2017 through early 2018, Fowler robbed six convenience stores in the South Bend area while wearing a mask and brandishing a firearm. During the trial, evidence was presented to include videos of the masked robberies, a video of Fowler while unmasked cashing in a winning lottery ticket three minutes after one of the robberies, videos of the getaway car with a missing light, some phone location evidence, and DNA linking him to a gun that was found. Mr. Fowler has four prior felony convictions.
Sentencing of Mr. Fowler has been set for September 25, 2019 at 1:30 PM.
The case was investigated by the FBI with the assistance of the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Joel R. Gabrielse.
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Smuggler Pleads Guilty to Transporting Illegals Across Country in Exchange for CashRead the Press Release
ATHENS – A Honduran national who admitted to transporting people entering the United States illegally from South America to other areas of the country pleaded guilty to his crimes in federal court Monday, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Carlos Aguilera-Espinal, 28, of Honduras, pleaded guilty to one count of Transporting an Illegal Alien and one count of Illegal Reentry in front of U.S. District Court Judge C. Ashley Royal on June 10, 2019. On the charge of Transporting an Illegal Alien, Mr. Aguilera-Espinal faces a maximum sentence of ten years imprisonment, a maximum fine of $250,000, or both, and a term of supervised release of three years. On the charge of Illegal Reentry, he faces a maximum sentence of two years in prison, a maximum fine of $250,000, or both, and a term of supervised release of one year. entencing is scheduled for September 11, 2019 in Athens, Georgia.
Mr. Aguilera-Espinal was pulled over on April 3, 2019 by the Franklin County Sheriff’s Office (FCSO) on I-85 due to a lane change violation and improper window tint. Deputies discovered a total of thirteen people, a number including Mr. Aguilera-Espinal, inside the SUV being driven by the defendant. Special agents with the Atlanta office of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) determined that all thirteen people were illegally present in the United States. One of the occupants was a sixteen year old male juvenile, who was unaccompanied by a guardian or relative. Mr. Aguilera-Espinal and four passengers had been previously removed from the United States by court order and did not have permission to return. Mr. Aguilera-Espinal admitted in his plea agreement that he transported illegal aliens in the United States to further their unlawful presence and for his own private financial gain.
“Smuggling human beings for cash is a dangerous business. Cramming thirteen people, including a minor, in an automobile built for half that many occupants and driving that vehicle on I-85 only compounds the dangers. Our office will continue to enforce laws that prohibit transporting illegal aliens in the United States,” said Charlie Peeler, the U.S. Attorney. “I want to thank the Franklin County Sheriff’s Office and HSI for their excellent work in this matter.”
This case was investigated by the Franklin County Sheriff’s Office and HSI, Atlanta. Assistant U.S. Attorney Amy Helmick prosecuted this case for the Government.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Shreveport man sentenced to 10 years in prison for drug and firearms offensesRead the Press Release
SHREVEPORT, La. – A Shreveport man was sentenced on Wednesday to serve time in federal prison for being a felon in possession of a firearm and possession of a firearm in furtherance of drug trafficking, announced U.S. Attorney David C. Joseph.
Chief U.S. District Judge S. Maurice Hicks Jr. sentenced Bryan Thomas Robinson, 38, to 10 years in prison to be followed by three years of supervised release. Robinson pleaded guilty to these charges on February 20, 2019.
According to information presented in court, a Shreveport police officer conducted a traffic stop on Robinson’s vehicle on October 28, 2017, for no tag information on the vehicle. The officer smelled marijuana and conducted a search of the vehicle where he found a cooler in the trunk of the car containing a glass bong, 49 grams of marijuana in a blue bag, pills, a digital scale, additional packaging baggies and a Hi Point .45-caliber semi-automatic handgun. Robinson admitted to possessing the firearm telling officers that his neighborhood was dangerous and he needed the gun for protection.
At the time of his arrest, Robinson was a felon who was convicted on February 25, 2013, for possession with intent to distribute marijuana and possession with intent to distribute cocaine. Under federal law, a felon is not allowed to possess a firearm or ammunition.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Seneca Falls Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Matthew A. Urquhart, 32, of Seneca Falls, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of child pornography. The charge carries a maximum penalty of 20 years in prison, a lifetime term of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that FBI Special Agents identified the defendant actively trading child pornography from a trailer residence in Seneca Falls. Subsequently, agents, with assistance from the Seneca Falls Police Department and Seneca County Sheriff’s Office, searched two residences that Urquhart occupied during the period in question. Digital items belonging to Urquhart were seized. A forensic analysis determined that the defendant possessed multiple images and videos of child pornography, including images that depicted the sexual abuse of prepubescent minors.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Seneca Falls Police Department, under the direction of Chief Stuart W. Peenstra, and the Seneca County Sheriff’s Office, under the direction of Sheriff W. Timothy Luce.
Sentencing is scheduled for September 18, 2019, before Judge Wolford.
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Search Warrants Executed in Grady, Thomas CountiesRead the Press Release
MACON – Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia, announced today that multiple federal search warrants were executed in Grady and Thomas Counties on June 12, 2019 in a joint law enforcement operation involving DEA, GBI, Grady County SO, Thomas County SO, Thomas Vice/Narcotics Squad and Cairo PD.
Warrants were executed at:
- 159 Alison Drive, Cairo, Grady County, Georgia;
- 274 Temple Terrance Circle, Cairo, Grady County, Georgia;
- 628 Marshall Street, Thomasville, Thomas County, Georgia;
- 2848 Bark Avenue, Cairo, Grady County, Georgia;
- 1094 Woodland Road, Cairo, Grady County, Georgia;
- 91 13th Avenue, SW, Cairo, Grady County, Georgia.
As a result of the execution of these warrants, methamphetamine, marijuana, approximately $20,000 in US currency, firearms and illegally possessed prescription medications were recovered. Tobias Sanders was arrested in Thomas County and remains in the Thomas County Jail. Orry Bell, Joseph Jones, and Kentrail Brown were arrested in Grady County and remain in the Grady County Jail. Those arrested are presumed innocent unless and until convicted beyond a reasonable doubt in a court of law.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Se le condena a un hombre de Luisiana por conspirar a vulnerar los derechos federales a la vivienda de una mujer discapacitadaRead the Press Release
Jody Lambert, de 24 años, fue condenado hoy en el Distrito Oriental de Luisiana a 120 meses de cárcel por conspirar con otros miembros de su familia a impedir que D.P., una mujer con discapacidades cognitivas, ejerciera su derecho a alquilar y ocupar una vivienda sin ser víctima de lesiones, intimidación e interferencia por motivos de sus discapacidades cognitivas.
«Lambert y sus coconspiradores conspiraron a privarle a una víctima vulnerable de un lugar seguro para vivir, obligándola a vivir afuera en una jaula encerrada, por motivos de su discapacidad», declaró el Fiscal General Auxiliar Eric Dreiband. «Esta conducta desgraciada constituye un delito de odio, y la lucha contra los delitos de odio seguirá siendo una de las prioridades principales del Departamento de Justicia. La condena de hoy refleja nuestro compromiso a buscar justicia para las víctimas».
«Una de las metas primordiales de nuestro país es la protección de los derechos civiles de todas las personas, sobre todo los de los más vulnerables», afirmó Peter G. Strasser, el Fiscal Federal para el Distrito Oriental de Luisiana. «La condena del Sr. Lambert envía un mensaje claro que se hará rendir cuentas a cualquier persona que deniegue a un ciudadano sus derechos».
«La condena hoy de Jody Lambert, por su trato inhumano de un miembro de su familia, sirve como claro recordatorio que la justicia prevalecerá», comentó Eric Rommal, el Agente Especial Encargado del Buró de Investigaciones Federales (FBI, por sus siglas en inglés) en Nueva Orleans. «Como la agencia federal principal encargada de hacer cumplir las leyes federales de derechos civiles, la Oficina Local del FBI en Nueva Orleans seguirá investigando agresivamente todo alegato creíble de vulneraciones de derechos civiles en el Estado de Luisiana».
El 18 de octubre del 2018, Lambert se declaró culpable ante un cargo de conspiración contra los derechos civiles. En la audiencia en la que se declaró culpable, Lambert admitió que durante algunos meses antes del 30 de junio del 2016, en Amite, Luisiana, él conspiró con otros parientes suyos para obligar a D.P. a vivir dentro de una jaula encerrada en su patio por motivo de sus discapacidades cognitivas y porque no querían que cohabitara con ellos en su hogar móvil. Lambert admitió que él y otros miembros de su familia encerraban a D.P. en la jaula en las noches con una cadena de metal y un candado, y que él y otros miembros de su familia habían colocado ramas y lonas por encima de la jaula para ocultarla de la vista. Más aún, Lambert admitió que, estando encerrada en la jaula, a D.P. se le requería usar un cubo de cinco galones como inodoro. Lambert también admitió que antes de obligar a D.P. a vivir en la jaula, él y su familia habían forzado a D.P. a vivir en su patio en una tienda de campaña y en una caseta cerradas con llave. Lambert admitió que durante todo el tiempo que D.P. vivía con la familia en Amite, Luisiana, Lambert y sus coconspiradores la sometían a violencia física rutinaria y amenazas de violencia física con el fin de intimidar a D.P. a aceptar estas condiciones de vida.
Este caso fue investigado por la Oficina Local del FBI en Nueva Orleans, Luisiana, la Oficina del Sheriff de la Parroquia de Tangipahoa y la Fiscalía de Distrito de la Parroquia de Tangipahoa. El caso está siendo enjuiciado por los Abogados de Litigios Risa Berkower y Nicholas Reddick de la División de Derechos Civiles del Departamento de Justicia, la Fiscal Federal Auxiliar Julia Evans, de la Fiscalía Federal para el Distrito Oriental de Luisiana, y la Fiscalía de Distrito de la Parroquia de Tangipahoa.
Sarcoxie Man Indicted for Illegal Firearms, Silencer, Auto-Conversion SwitchesRead the Press Release
SPRINGFIELD, Mo. – A Sarcoxie, Missouri man who was earlier charged with illegally possessing firearms and ammunition has been indicted by a federal grand jury on additional charges of illegally possessing an unregistered silencer and selector switches to convert semi-automatic firearms into machine guns.
Leng Lee, 35, was charged in a three-count superseding indictment returned by a federal grand jury in Springfield, Mo., on Wednesday, June 12. The superseding indictment replaces an indictment returned on May 7, which charged Lee with being a felon in possession of firearms and ammunition.
The federal indictment charges Lee with one count of illegally possessing a device designed to convert a semi-automatic Glock-type pistol into an automatic machine gun, and one count of illegally possessing an unregistered silencer. The indictment also contains the original count of being a felon in possession of firearms and ammunition. The indictment alleges that Lee was in possession of a Glock 10mm pistol, two Glock 9mm pistols, and numerous rounds of ammunition.
According to court documents, law enforcement officers participated in the controlled delivery of an international mail package from China addressed to Lee at his residence on April 23, 2019. The parcel contained seven parts (selector switches) that are used to convert a Glock semi-automatic pistol to fire in full-automatic mode.
Officers executed a search warrant at Lee’s residence and found numerous firearms, ammunition, firearm suppressors, suspected methamphetamine, marijuana, suspected stolen farm equipment, and a large amount of cash. According to court documents, Lee told officers that a couple of the firearms were given to him by his deceased father, but the others were purchased by him at gun shows or during hand-to-hand transactions. None of the firearms were purchased from a licensed firearms dealer. Lee also told officers that he had 10-15 past deliveries of the selector switches, and that he was able to convert and successfully fire a Glock pistol as a fully automatic firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lee has two prior felony convictions for burglary, and prior felony convictions for vandalism, criminal conspiracy, grand theft, and being a felon in possession of a firearm.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Newton, Mo., Sheriff’s Department.
SDTX to be Part of New Transnational Elder Fraud Strike ForceRead the Press Release
HOUSTON - Attorney General William P. Barr has announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Department of Justice’s Consumer Protection Branch, U.S. Attorneys’ Offices for six federal districts, FBI, U.S. Postal Inspection Service and other organizations. The Southern District of Texas will be one of the offices part of that group.
The Strike Force will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing and tech-support fraud schemes.
“Elder Fraud comes in many variations – through the mail, online and even in person,” said U.S. Attorney Patrick. “By focusing on these cases, we hope to send a message from the low level hucksters to the sophisticated international organizations that when we find you, we will prosecute you.”
The Transnational Elder Fraud Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with the SDTX and five other U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia and Eastern District of New York), FBI special agents, Postal Inspectors and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office. Assistant U.S. Attorney Quincy Ollison is the coordinator for the SDTX.
“Fraud against the elderly is on the rise,” said Barr. “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”
“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”
“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”
Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.
The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect and financial exploitation.
The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which 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 —as well as the 2018 Rural and Tribal Elder Justice Summit.
Ruskin Armed Career Criminal Sentenced to 15 Years for Illegally Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Guillermo Ramirez, Jr. (46, Ruskin) to 15 years in federal prison for knowingly possessing a firearm as a convicted felon. Ramirez had pleaded guilty on March 27, 2019.
According to the plea agreement and evidence presented at the sentencing hearing, on December 3, 2016, Ramirez arranged to sell a firearm to an undercover detective from the Hillsborough County Sheriff’s Office. When Ramirez and the detective met, Ramirez pulled a Jennings 9mm semi-automatic pistol from his waistband and sold it to the detective. Ramirez then offered to sell the detective more guns.
At the time of this sale, Ramirez had multiple prior felonies, including convictions for aggravated assault, delivery of cocaine, and possession of cocaine with intent to sell. Therefore, he was – and is – prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime-reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Roxbury Man Convicted of Identity Theft and Stealing Public FundsRead the Press Release
BOSTON – A Roxbury man identified as John Doe was convicted yesterday by a federal jury in Boston of using another person’s identity for over 40 years.
John Doe, whose true identity is unknown, was convicted of aggravated identity theft; using a passport obtained through false statements; stealing public funds; and misuse of a Social Security number. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 18, 2019.
At some point prior to 1975, Doe, who is suspected to be a Dominican national, obtained the birth certificate of a U.S. citizen from Puerto Rico. Initially, Doe did not have the U.S. citizen’s Social Security number, so he created or obtained a counterfeit Social Security card bearing the U.S. citizen’s name with a non-matching Social Security number that was assigned to a different person from Puerto Rico. From 1975 to 1994, Doe used the counterfeit Social Security card to find employment, first in New York, and later in Boston.
In 1994, Doe received a letter from the IRS notifying him that the name on his Social Security card did not match the Social Security number he was using and that he needed to go to a local Social Security Administration (SSA) office to resolve the discrepancy. Doe took the letter to an SSA office in Roxbury, where he deceived an SSA employee into believing that he was the person whose identity he had stolen and that he had forgotten his true Social Security number. Doe gave the employee the name, date of birth, place of birth, and parents’ names on the U.S. citizen’s birth certificate without disclosing that the birth certificate was not his own. The employee entered this biographical information into the SSA computer, which returned a match for the U.S. citizen’s true Social Security number. Through this deception, Doe was able to obtain a Social Security card bearing the U.S. citizen’s true name and true Social Security number.
Doe used this unlawfully obtained Social Security card for the next 18 years, until the U.S. citizen died in Puerto Rico in 2012. At that point SSA learned that someone in Massachusetts was using a deceased person’s Social Security number and began a fraud investigation.
Doe used the stolen identity to work in Boston, obtain and travel on a U.S. passport, apply for unemployment benefits, and obtain public housing benefits for himself and his family.
The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000. The charges of using a passport obtained through false statements, and stealing public funds, each provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office, made the announcement today. Assistant U.S. Attorneys Christine Wichers and David Tobin of Lelling’s Major Crimes Unit are prosecuting the case.
Riverside Man Found Guilty of Federal Charges Stemming from Bogus Debt-Elimination Services that Cost Victims $1.6 MillionRead the Press Release
LOS ANGELES – An Inland Empire man who operated a series of companies that purported to provide debt-relief, primarily to distressed homeowners, has been found guilty of defrauding victims who paid thousands of dollars after attending seminars that promoted a “Free and Clear” program pitched by the defendant and his salespeople.
James Ignatius Diamond, who went by the name “Jim Diamond,” 69, of Riverside, was found guilty of 30 fraud charges late Wednesday in United States District Court.
“Between 2010 and 2013, [Diamond] sold fraudulent debt-elimination services to desperate victims thrown into financial crisis by the Great Recession,” according to court documents. Diamond owned and operated a number of businesses – including the Riverside-based Transmitting Assets, Inc., Operation Safe Haven, Buyer Beware, and Unlimited Logistics Corporation – that he claimed could wipe out the debts of homeowners behind on their mortgage payments, as well as other debts.
The evidence presented to the federal jury over the course of six days showed that the “Diamond Home Reclamation Method” was pitched to solicit victims with false promises that Diamond’s methods would entirely eliminate their mortgages and allow people to own their homes “free and clear.”
Relying on the false representations, victims paid substantial fees, including an upfront fee – typically $3,500, payable only in cash, money orders or cashier’s checks – periodic program fees, and inflated notary fees. After paying the upfront fee, victims were required to sign and notarize documents, which they were instructed to send to financial institutions and government agencies – documents prosecutors described in court documents as “fraudulent and nonsensical.”
When victims of the scheme in 2011 began receiving mortgage default notices and lost their homes, Diamond launched another debt-elimination scam called the “EFT Program,” under which Diamond claimed to be able to eliminate victims’ debt with “EFT” checks. This scam required victims to pay Diamond 13 percent of the debt that was to be eliminated.
Diamond knew that his methods did nothing to discharge debts. In fact, when FBI agents searched his business in 2013, they recovered hundreds of “rejection letters” from financial institutions indicating that documents submitted as part of the debt-elimination programs did nothing to help the victims. Diamond’s email accounts contained numerous complaints and refund requests from victims – all of which he ignored.
Investigators have identified more than 500 victims. The victims’ total losses exceeded $1.6 million. Diamond spent victims’ money on luxury hotels, jewelry, alcohol and living expenses.
After deliberating for about three hours, the jury convicted Diamond of 15 counts of mail fraud affecting a financial institution and 15 counts of wire fraud affecting a financial institution. Defendant was immediately remanded into custody upon conviction, with United States District Judge R. Gary Klausner citing defendant’s extremist anti-government views as a concern. As a result of the conviction, Diamond will face a statutory maximum sentence of 30 years for each of the 30 counts.
Diamond is scheduled to be sentenced by Judge Klausner on September 9.
Previously in this case, a Diamond associate – Tricia Mae Gruber, 43, of Riverside – pleaded guilty to conspiracy to commit mail fraud and admitted helping operate the scheme.
This case was investigated by the Federal Bureau of Investigation.
This matter is being prosecuted by Assistant United States Attorneys Marina A. Torres and Kevin B. Reidy of the General Crimes Section.
Raleigh Man Convicted of Human TraffickingRead the Press Release
NEW BERN - United States Attorney Robert J. Higdon, Jr. announced that today, BRANDON MARQUIS JENNINGS, 29, of Raleigh, North Carolina, was convicted in federal court following a four-day trial before United States District Judge Louise W. Flanagan. The jury found JENNINGS guilty of four counts of sex trafficking, one count of production of child pornography, one count of transporting a minor in interstate commerce for a sexual offense, three counts of coercing and enticing victims to travel interstate for prostitution, three counts of transporting victims interstate for prostitution, and one count of operating an interstate prostitution enterprise.
From 2013 until December 2016, JENNINGS operated a prostitution ring involving numerous women and children. Jennings typically enticed his victims to work for him with promises of love and money. After they joined him, JENNINGS frequently ruthlessly manipulated, threatened, and violently assaulted his victims to ensure they would continue prostituting for him. Then he took all their money. Some victims were minors, and he enticed one of those minors to send an image of child pornography to him.
JENNINGS faces a sentence of not less than 15 years and up to life in prison, a fine up to $3,250,000, and up to life supervised release at sentencing.
Investigation of this case was conducted by the Department of Homeland Security – Homeland Security Investigations and the Raleigh Police Department. Assistant United States Attorneys Erin Blondel and Melissa Kessler handled the prosecution of this case for the government.
R.I. Businessman Admits Selling Misbranded DrugsRead the Press Release
PROVIDENCE – A Lincoln, R.I., wholesale businessman pleaded guilty in federal court in Providence today to selling more than 500,000 capsules of a misbranded drug that contain the commonly known active ingredient in Viagra, purporting that the drug was an all-natural herbal supplement designed for male sexual enhancement.
Jeffrey Guzman, 34, of Providence, operator of Tony’s Enterprise, LLC, in Lincoln, today pleaded guilty to fraudulent introduction of a misbranded drug. Guzman admitted to distributing to various retail and wholesale businesses throughout New England and New York a product called Golden Night, which falsely was represented to be an all-natural herbal supplement designed for male sexual enhancement. In fact, U.S. Food and Drug Administration (FDA) laboratory tests demonstrated Golden Night contained the prescription drug sildenafil, commonly known as the active ingredient in Viagra.
Guzman’s guilty plea is announced by United States Attorney Aaron L. Weisman and Jeffrey Ebersole, Special Agent in Charge of the FDA, Office of Criminal Investigations.
According to information presented in court, in 2015, an FDA inspection of a wholesaler in New York revealed quantities of Golden Night for sale at convenience stores and gas stations in the New York area. The FDA subsequently issued a public notification advising consumers not to purchase Golden Night. The notice explained that FDA analysis confirmed the presence of sildenafil, the active ingredient in Viagra and that these ingredients were not declared on the label. The notice warned the undeclared ingredients may lower blood pressure to dangerous levels and other potential health consequences.
An undercover FDA agent emailed the notice to Guzman and asked whether Golden Night contained Viagra. Guzman falsely replied that Golden Night did not contain Viagra, and claimed the product was safe to take. Guzman subsequently sent the FDA notice to his supplier in China and asked what to do about the FDA notice. The supplier in China advised changing the brand name of the product and continuing to sell it. Guzman admitted continuing to sell Golden Night as usual. An FDA agent subsequently purchased Golden Night which again tested positive for sildenafil.
A court-authorized search of Tony’s Enterprise in June 2018, revealed additional inventory of Golden Night, packaging and marketing materials, and various business records. In addition, email search warrants revealed numerous instances in which Guzman falsely answered customer inquiries about Golden Night by stating it was all-natural and did not contain Viagra or require FDA approval.
Laboratory tests of Golden Night also detected the presence of oxytetracycline HCI, also known as Terramycin, a discontinued prescription antibiotic that was used to treat specific diseases in humans. It is currently used in livestock feed to prevent diseases and infections in cattle and poultry.
Guzman admitted that between 2013 and 2018, Tony’s Enterprise sold more than 500,000 Golden Night capsules totaling over $1 million in sales.
Guzman is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on September 9, 2019. Fraudulent introduction of a misbranded drug is punishable by statutory penalties of up to 3 years imprisonment and a $250,000 fine.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Philadelphia Man Indicted for Rash of Cell Phone Store RobberiesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Malcolm Xavier Taylor, 26, of Philadelphia, Pennsylvania, was indicted by a grand jury with four counts of robbery which interferes with interstate commerce, and use and carrying of a firearm during and in relation to a crime of violence.
The defendant is alleged to have committed a string of robberies of cell phone stores in Philadelphia, robbing four different stores over a three-week time period in November and December 2017. During all four incidents, he brandished a firearm and threatened to shoot store employees. In total, the defendant stole over a hundred cell phones and cash.
“The complete disregard for others’ safety that Taylor is accused of is appalling,” said U.S. Attorney McSwain. “The employees of these stores were simply doing their jobs, while the defendant terrorized them so that he could make a buck off of stolen cell phones. The streets are safer now that Taylor will have to answer these charges.”
“ATF’s primary mission is to combat violent crime and this investigation is a clear statement of our resolve to accomplish this mission,” said Special Agent in Charge Donald Robinson. “This indictment of Malcolm Taylor sends a clear message that ATF and its law enforcement partners will not allow violent criminals to continue victimizing our communities and neighborhoods”
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.
If convicted, the defendant faces a maximum possible sentence of life imprisonment and a mandatory minimum of five years’ imprisonment.
The case was investigated by the Bureau for Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Indicted for Armed Robbery of Firstrust Bank in Bryn Mawr, PARead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Justin O’Brien, 32, of Philadelphia, was indicted by a federal grand jury with armed bank robbery. The indictment charges that on March 12, 2019, O’Brien knowingly and unlawfully, by force, violence and intimidation, took approximately $1,260 from an employee of Firstrust Bank, located at 725 Lancaster Avenue, Bryn Mawr, Pennsylvania. The indictment also charges that the defendant knowingly and unlawfully assaulted another person by the use of a dangerous weapon: a facsimile firearm (pellet gun).
“As alleged in the indictment, the defendant’s conduct in this case was reckless and stupid,” said U.S. Attorney McSwain. “Not only did O’Brien rob a bank, which is a serious offense, but he threatened bank employees with what looked like a real gun – causing them to fear for their lives. He is now facing serious federal charges and prison time over a relatively small sum of money. To all would-be robbers: let this serve as a deterrent – it’s not worth it.”
“Imagine looking down the barrel of a gun pointed at you by some stranger demanding money,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “It's not something armed robbery victims soon forget. As alleged, Justin O'Brien barged into a bank with a weapon, terrified employees, and fled with cash. Anyone willing to commit a violent crime like that needs to answer for it.”
If convicted, the defendant faces a maximum possible sentence of 25 years’ imprisonment; up to five years’ supervised release; a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Lower Merion Township Police Department, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio Man Sentenced to 15 Years in Prison for Trying to Join ISISRead the Press Release
A Dayton, Ohio man was sentenced today in U.S. District Court to 180 months in prison and 25 years of supervised release for attempting, and conspiring, to join the Islamic State of Iraq and al-Sham (ISIS). Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio and Special Agent in Charge Todd A. Wickerham of the FBI’s Cincinnati Division made the announcement.
“Alebbini was determined to travel overseas for the purpose of joining ISIS and engaging in violence in support of the foreign terrorist organization,” said Assistant Attorney General Demers. “Notwithstanding pleas from others close to him, Alebbini declared that he is a terrorist and decided to move forward with his plan to join ISIS. Thanks to the great work of the agents, analysts, and prosecutors who are assigned to this case, Alebbini’s plans were thwarted and he is being held accountable for his crimes.”
“Alebbini was prepared to kill soldiers and citizens of the United States, the Kingdom of Jordan, and coalition partners fighting against ISIS. Indeed, Alebbini was prepared to kill any person who did not accept ISIS as the Islamic Caliphate,” said U.S. Attorney Glassman. “Prison is the right place for him.”
Laith Waleed Alebbini, 28, was convicted following a bench trial in November and December 2018 before U.S. District Judge Walter H. Rice.
Alebbini attempted, and conspired, to provide material support and resources to ISIS in the form of personnel, namely himself.
Alebbini, a citizen of Jordan and a U.S. legal permanent resident, was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint.
Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court. The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding pass in hand for a flight to Amnan, Jordan, with a connection in Istanbul, Turkey. The evidence also showed that Alebbini intended to forego the flight to Jordan and instead make his way from Turkey into Syria to join ISIS.
According to court documents and testimony, on April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “The Islamic State is fighting a survival war . . . I, cousin, want to go to be an inghimasi soldier.”
As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation.
On April 26, 2017, about one hour before Alebbini arrived at the Cincinnati/Kentucky International Airport, several relatives pleaded with Alebbini not to join ISIS. Alebbini responded in three separate back-to-back text messages: “Do you think I am a criminal” “I am a terrorist” “I am mujahid.”
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the Joint Terrorism Task Force, which includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.
First Assistant Vipal J. Patel and Assistant U.S. Attorney Dominick S. Gerace of the Southern District of Ohio and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted this case.
New Jersey Tax Prep Duo Plead Guilty to Fraud, Filing False Returns for Themselves and ClientsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Omar Faruq, 37, of Pennsauken, New Jersey, and co-conspirator Omar Ali, 36, also of Pennsauken, New Jersey, both entered pleas of guilty before United States District Court Judge Nitza I. Quiñones on one count each of conspiracy to defraud the Internal Revenue Service, aiding another in the filing of a false tax return, and filing a false tax return.
According to a criminal Information filed in April 2019, Faruq and Ali conspired to file false tax returns on behalf of their clients at Omar Consultancy Inc., a tax service operated by them with offices in Pennsylvania and New Jersey.
According to the plea memorandum filed for today’s court appearance, Faruq and Ali consistently used false filing status, false Schedule A deductions and expenses, false Schedule C business income and losses, and fictitious credits to decrease clients’ tax liabilities, all of which resulted in increased refunds for many of their clients. Faruq diverted portions of his clients’ returns to his own bank account as part of the conspiracy, totaling more than $300,000, and Ali diverted over $170,000 to his own bank accounts.
Faruq and Ali both also pled guilty to filing a false income tax return for themselves and their respective spouses for tax year 2014. In filing the false returns, Faruq and Ali omitted gross receipts from their tax preparation business on the 2014 tax returns and failed to report diverted funds from taxpayer-clients as income on their personal returns.
“Our tax system depends on the honesty of all citizens to truthfully file their tax returns, many of whom rely on professionals to represent their interests and to do the work honestly,” said U.S. Attorney McSwain. “Tax preparers like Faruq and Ali undermine the tax system when they prepare and file false tax returns for their clients. My Office will aggressively investigate and prosecute tax preparers like the defendants who profit by turning their tax preparation services into fraud factories.”
“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients,” stated John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “Tax practitioners and return preparers have a duty to their clients to prepare tax returns that comply with the law and are complete and accurate. IRS Criminal Investigation will investigate and hold accountable abusive tax preparers who attempt to defraud our nation’s tax system.”
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Richard P. Barrett.
New Bern Man Sentenced to 35 Years in Federal Prison for Multi-Year Heroin and Marijuana ConspiracyRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that in federal court, before Chief United States District Judge Terrence W. Boyle, CALVIN MARK WILSON, also known as “Bali,” 35, of New Bern, North Carolina was sentenced to 35 years (420 months) in federal prison for conspiring to distribute and possess with the intent to distribute one thousand (1,000) grams or more of heroin and a quantity of marijuana.
The investigation was part of OCDETF Operation 190, which was named in memory of New Bern Police Department Officer Alexander Thalmann. Officer Thalmann was shot and killed in the line of duty on March 31, 2014 by associates of the defendant’s in this case. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
WILSON’s sentencing was the culmination of a multi-year investigation into a heroin trafficking ring operating in and around New Bern, North Carolina, and led primarily by two men: Damien Lamonte Brown and Calvin Mark Wilson. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and members of the New Bern Police Department learned that Brown, WILSON, and others had been involved in ordering heroin from New York City and arranging it to be brought down in multi-kilogram amounts over a period of several years. Brown and WILSON then supplied various mid- and lower-level dealers in and around New Bern with the heroin for sale.
As part of the investigation, law enforcement conducted over twenty controlled purchases of heroin from organization members between November 2016 and July 2017, along with traffic stops and other encounters in which they confirmed that members possessed drugs and guns. Based on that investigation, ATF then obtained authorization for a federal wiretap of cellular phones associated with WILSON and two co-defendants. As a result, agents intercepted calls and texts over a three-month period in 2017 showing that WILSON was directing the supply and distribution of kilogram-levels of heroin from New York to New Bern, NC. Based on intercepted calls, agents were able to stop and arrest WILSON and two co-defendants traveling back from New York with 3lbs of marijuana and 7 bars of heroin cutting agent. Subsequent investigation revealed that hundreds of grams of heroin had traveled separately down from New York to New Bern that day.
ATF made arrests of many of the defendants on October 24, 2017, along with searches of five residences associated with the organization. Through the life of the investigation, law enforcement has seized over a kilogram of heroin and twenty firearms.
The defendants include:
- CALVIN MARK WILSON, aka “Bali,” 35, of New Bern, NC. WILSON was convicted of conspiracy to distribute and possess with the intent to distribute one thousand grams or more of heroin and a quantity of marijuana and possession with intent to distribute a quantity of marijuana. WILSON was sentenced to 420 months’ imprisonment.
- DAMIEN LAMONTE BROWN, aka “Dame,” 36, of New Bern, NC. BROWN was convicted in August 2018 by a federal jury of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin, possession with intent to distribute one hundred (100) grams or more of heroin, and possession of a firearm by felon. BROWN was sentenced to 360 months’ imprisonment.
- DERRICK LAMONT DAVIS, aka “Gucci,” 35, of Kinston, NC. DAVIS was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin. DAVIS was sentenced to 48 months’ imprisonment.
- DWAYNE LEE STALLINGS, aka “Smiley,” 35, of Cove City, NC. STALLINGS was convicted of possession of a firearm by a felon and was sentenced to 108 months’ imprisonment.
- WALTER NAJEE GREEN, III, 21, of New Bern, NC. GREEN was convicted of distribution of a quantity of heroin and was sentenced to 72 months’ imprisonment.
- NASSAR TURE MACK, 37, of New Bern, NC. MACK was convicted of possession of a firearm by felon and was sentenced to 24 months’ imprisonment.
- MARIO CORRELLUS BARGNEARE, aka “Rio,” 39, of New Bern, NC. BARGNEARE was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and discharging a firearm in furtherance of a drug trafficking crime. BARGNEARE was sentenced to 204 months’ imprisonment.
- DEREK JACQUAN WIGGINS, aka “DJ,” 38, of New Bern, NC. WIGGINS was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin, several counts of distributing heroin, and possession of a firearm by a felon. He was sentenced to 120 months’ imprisonment.
- ROY JAMES NOLON, aka “Henny,” 21, of New Bern, NC. NOLON was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced to 96 months’ imprisonment.
- MICHAEL QUALEEK VELASQUEZ, aka “Moo,” 23, of New Bern, NC. VELASQUEZ was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of heroin. He was sentenced to 96 months’ imprisonment.
- LAMAR HOSEA WIGGINS, aka “LB,” 39, of New Bern, NC. WIGGINS was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession of a firearm by a felon. He was sentenced to 96 months’ imprisonment.
- LASHAWNNA JAQUETTE MCCOTTER, aka “Flossy,” 47, of New Bern, NC. McCOTTER was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of marijuana. She was sentenced to 30 months’ imprisonment.
- LATREKA DENISE HARDESTY, aka “T,” 27, of New Bern, NC. HARDESTY was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She was sentenced to time served.
- ADRIENNE MICHELLE HALL, 35, of New Bern, NC. HALL was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She was sentenced to time served.
- CAROLINE LOUISE HUGHES, 28, of Alliance, NC. HUGHES was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She was sentenced to 5 years probation.
There remains one defendant who is scheduled to be sentenced in July 2019:
- WILLIE FRANK JAMES AHERN, aka “White, White Bread, Dribs,” 39, of Bayboro, NC. AHERN was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and several instances of distributing quantities of heroin. AHERN faces up to life imprisonment.
The investigation also led to 8 individuals being charged by the state for drug offenses. Those charges remain pending.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New Bern Police Department, Jacksonville Police Department, Craven County Sheriff’s Office, Pamlico County Sheriff’s Office, the North Carolina State Bureau of Investigation, Onslow County Sheriff’s Office, Sampson County Sheriff’s Office, Trent Woods Police Department, Carteret County Sheriff’s Office, Morehead City Police Department, Beaufort County Sheriff’s Office, and with the assistance of the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA). Assistant United States Attorney Laura S. Howard prosecuted this case on behalf of the government.
NDTX Roundup -- 6/13/19Read the Press Release
SENTENCING – Sherryol Elton Clack, Jr.
On June 7, Sherryol Clack, Jr. was sentenced to three months in federal prison for shining a laser pointer at an aircraft, causing temporary blindness to its pilot. The aircraft, a Texas Department of Public Safety helicopter assisting in the apprehension of a murder suspect, was forced to abort its mission.
PLEA – Joe Larry Straw
On June 11, Joe Larry Straw pleaded guilty to conspiracy to commit health care fraud. In plea papers, Mr. Straw admits he accepted more than $68,000 in kickbacks in return for facilitating the referral of TRICARE patients to Trilogy Pharmacy. More than a dozen co-defendants have been indicted in the scheme, which violated the federal anti-kickback statute, and caused an actual loss to TRICARE of more than $100 million. The Defense Criminal Investigative Service and FBI investigated.
PLEA – Randal Anthony Melton
On June 11, Randal Melton pleaded guilty to felon in possession of a firearm. In his plea papers, Mr. Melton admits to unlawful possession of a 9 mm Smith and Wesson despite a prior felony conviction. ATF and the Dallas Police Department investigated the case.
SENTENCING – Damon Williams
On June 13, Damon Williams was sentenced to 7 years, 11 months in federal prison for his involvement in a methamphetamine conspiracy. In February, Mr. Williams pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, admitting he delivered meth to a co-conspirator who then sold the drugs to an undercover officer.
Miami County Man Sentenced for Collecting Child PornographyRead the Press Release
KANSAS CITY, KAN. - A Miami County man who pleaded guilty to possessing child pornography was sentenced today to 70 months in federal prison, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay $5,000 to the Justice for Victims of Trafficking Act Fund and $3,000 to each of 15 victims who requested restitution.
Joel Haines, 61, Paola, Kan., pleaded guilty to one count of possessing child pornography. At sentencing, the prosecutor said investigators found 1,433 digital child pornography images on Haines’ computer. The images included children under the age of two being sexually abused as well as images of girls ages 6 to 12.
McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Mexican citizen living in Benton sentenced for re-entering U.S. after multiple deportations and illegally possessing firearmRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that illegal alien and felon Shandy Salgado-Almendaris, 39, a Mexican citizen living in Benton, Louisiana, was sentenced on Wednesday. Chief U.S. District Judge S. Maurice Hicks Jr. sentenced Salgado-Almendaris to 21 months in prison for illegally re-entering the United States after being removed and for being a felon in possession of a firearm.
Bossier Parish Narcotics Task Force agents conducted an investigation on August 9, 2018, at a Benton residence and encountered Salgado-Almendaris. Agents searched the home and found a Rohm GmbH (RG Industries), Model: RG-14, .22-caliber revolver in the master bedroom area. The firearm was seized and Salgado-Almendaris was arrested. Salgado-Almendaris had been previously removed from the United States three times at locations in Texas and Louisiana. The defendant is a convicted felon who has a previous criminal history involving possession of cocaine. He pleaded guilty to the current federal charges on February 20, 2019, and faces removal from the United States after serving his prison term.
United States Immigrations and Customs Enforcement, the ATF, and the Bossier Parish Narcotics Task Force investigated the case. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
Mexican National Indicted for Being an Alien Unlawfully in the United States in Possession of A FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Ismael Huazo-Jardinez, 33, a Mexican citizen residing in Yuba City, CA, charging him with two counts of possessing a firearm while being an alien unlawfully in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, Huazo-Jardinez is suspected of having been the driver in a fatal car accident that killed three people, the parents and one child of a family of four, when the vehicle crashed into their mobile home as they slept, on May 4, 2019, in Sutter County. Huazo-Jardinez was arrested at the scene of the accident. Authorities impounded the vehicle, a Chevrolet Avalanche registered to Huazo-Jardinez, and later recovered a handgun from the vehicle’s center console. A database query revealed that the handgun had been reported stolen in Boise, Idaho.
According to court documents, a Beretta handgun was found during a search of Huazo-Jardinez’s residence. Huazo-Jardinez is alleged to be a citizen and national of Mexico who has twice been removed from the United States and has not been granted permission to return. As an alien unlawfully in the United States, Huazo-Jardinez is prohibited by federal statute from possessing a firearm.
This case is the product of an investigation by the California Highway Patrol, Sutter County Sheriff’s Department, and U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO). Assistant United States Attorneys James Conolly and Shea Kenny are prosecuting the case. The Sutter County District Attorney’s Office is prosecuting Huazo-Jardinez in the state case related to the May 4, 2019 fatal car accident.
This case was brought as 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. PSN was reinvigorated in 2017 as part of the Department of Justice'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.
If convicted, Huazo-Jardinez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Indicted for Being an Alien Unlawfully in the United States in Possession of A FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Ismael Huazo-Jardinez, 33, a Mexican citizen residing in Yuba City, CA, charging him with two counts of possessing a firearm while being an alien unlawfully in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, Huazo-Jardinez is suspected of having been the driver in a fatal car accident that killed three people, the parents and one child of a family of four, when the vehicle crashed into their mobile home as they slept, on May 4, 2019, in Sutter County. Huazo-Jardinez was arrested at the scene of the accident. Authorities impounded the vehicle, a Chevrolet Avalanche registered to Huazo-Jardinez, and later recovered a handgun from the vehicle’s center console. A database query revealed that the handgun had been reported stolen in Boise, Idaho.
According to court documents, a Beretta handgun was found during a search of Huazo-Jardinez’s residence. Huazo-Jardinez is alleged to be a citizen and national of Mexico who has twice been removed from the United States and has not been granted permission to return. As an alien unlawfully in the United States, Huazo-Jardinez is prohibited by federal statute from possessing a firearm.
This case is the product of an investigation by the California Highway Patrol, Sutter County Sheriff’s Department, and U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO). Assistant United States Attorneys James Conolly and Shea Kenny are prosecuting the case. The Sutter County District Attorney’s Office is prosecuting Huazo-Jardinez in the state case related to the May 4, 2019 fatal car accident.
This case was brought as 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. PSN was reinvigorated in 2017 as part of the Department of Justice'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.
If convicted, Huazo-Jardinez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Members of African Criminal Enterprise Charged with Large-Scale Trafficking of Rhinoceros Horns and Elephant Ivory and Heroin DistributionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, David Bernhardt, the United States Secretary of the Interior, and Christopher T. Tersigni, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that MOAZU KROMAH, a/k/a “Ayoub,” a/k/a “Ayuba,” a/k/a “Kampala Man,” AMARA CHERIF, a/k/a “Bamba Issiaka,” MANSUR MOHAMED SURUR, a/k/a “Mansour,” and ABDI HUSSEIN AHMED, a/k/a “Abu Khadi,” were charged in an indictment for participating in a conspiracy to traffic in rhinoceros horns and elephant ivory, both protected wildlife species, valued at more than $7 million that involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In addition, KROMAH, CHERIF, and SURUR were charged with conspiracy to commit money laundering, and SURUR and AHMED were charged with participating in a conspiracy to distribute and possess with intent to distribute more than 10 kilograms of heroin. KROMAH, a citizen of Liberia, was arrested in Uganda on June 12, 2019, and expelled to the United States. He was arraigned before U.S. Magistrate Judge Katharine H. Parker earlier today and detained. CHERIF, a citizen of Guinea, was arrested in Senegal on June 7, 2019, and remains in custody in Senegal pending a process through which his extradition, deportation or other lawful removal to the United States is being considered by Senegalese authorities. SURUR and AHMED, both citizens of Kenya, remain fugitives. The case has been assigned to U.S. District Judge Gregory H. Woods.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants are members of an international conspiracy to traffic in not only heroin but also rhino horns and elephant ivory. The alleged enterprise, responsible for the illegal slaughter of dozens of rhinos and more than 100 elephants, was as destructive to protected species as it was lucrative. The excellent work of the Fish and Wildlife Service and the DEA has put the brakes on an operation that allegedly peddled dead protected species and potentially deadly narcotics.”
Secretary of the Interior David Bernhardt said: “Wildlife trafficking will not be tolerated. It is often intertwined with other major types of criminal activity including conspiracy, smuggling, money laundering and narcotics – all of which are included in the indictment today. The U.S. Department of the Interior remains committed to combating the illegal wildlife trade through the END Wildlife Trafficking Act and the President’s Executive Order on Transnational Organized Crime. I would like to thank the U.S. Fish and Wildlife Service Office of Law Enforcement, U.S. Attorney’s Office, U.S. Department of Justice, and others who help bring wildlife traffickers, and other criminals, to justice. Together, we can protect some of the world’s most iconic species while ensuring the safety and livelihood of the American people.”
DEA Special Agent in Charge Christopher T. Tersigni said: “DEA’s global investigations with our foreign counterparts often involve transnational criminal networks involved in a wide array of unlawful acts – from drug trafficking to conspiring to commit acts of terror to international money laundering to human trafficking – that undermine the rule of law everywhere. These suspected criminal masterminds not only conspired to traffic huge amounts of heroin to New York, but also directed a multimillion-dollar poaching scheme to traffic in rhinoceros horns and elephant ivory – both endangered wildlife species. DEA investigations throughout the world consistently illustrate the lengths and heinous acts these global criminal individuals and networks will commit to further their illicit enterprises.”
According to allegations in the Indictment unsealed today in Manhattan federal court[1]:
KROMAH, CHERIF, SURUR, and AHMED were members of a transnational criminal enterprise (the “Enterprise”) based in Uganda and surrounding countries that was engaged in the large-scale trafficking and smuggling of rhinoceros horns and elephant ivory, both protected wildlife species. Trade involving endangered or threatened species violates several U.S. laws, as well as international treaties implemented by certain U.S. laws.
From at least in or about December 2012 through at least in or about May 2019, KROMAH, CHERIF, SURUR, and AHMED conspired to transport, distribute, sell, and smuggle at least approximately 190 kilograms of rhinoceros horns and at least approximately 10 tons of elephant ivory from or involving various countries in East Africa, including Uganda, the Democratic Republic of the Congo, Guinea, Kenya, Mozambique, Senegal, and Tanzania, to buyers located in the United States and countries in Southeast Asia. Such weights of rhinoceros horn and elephant ivory are estimated to have involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In total, the estimated average retail value of the rhinoceros horn involved in the conspiracy was at least approximately $3.4 million, and the estimated average retail value of the elephant ivory involved in the conspiracy was at least approximately $4 million.
Typically, the defendants exported and agreed to export the rhinoceros horns and elephant ivory for delivery to foreign buyers, including those represented to be in Manhattan, in packaging that concealed the rhinoceros horns and elephant ivory in, among other things, pieces of art such as African masks and statues. The defendants received and deposited payments from foreign customers that were sent in the form of international wire transfers, some which were sent through U.S. financial institutions, and paid in cash.
On a number of occasions, KROMAH, SURUR, and AHMED met with a confidential source (“CS-1”), both together and separately, concerning potential purchases of elephant ivory and rhinoceros horn. During these meetings and at other times via phone calls and an electronic messaging application, CS-1 discussed with KROMAH, SURUR, and AHMED, in substance and in part, the terms of the sale, including the price, weight, or size of the rhinoceros horns, payment, destination, and delivery options. CS-1 also discussed with CHERIF via phone calls and electronic messages, in substance and in part, the terms of the sales, as well as how to send payment for the rhinoceros horns from a United States bank account located in Manhattan. On or about March 16, 2018, law enforcement agents intercepted a package containing a black rhinoceros horn sold by the defendants to CS-1 that was intended for a buyer represented to be in Manhattan. From in or about March 2018 through in or about May 2018, the defendants offered to sell CS-1 additional rhinoceros horns of varying weights, including horns weighing up to seven kilograms. On or about July 17, 2018, law enforcement agents intercepted a package containing two white rhinoceros horns sold by the defendants to CS-1 that was intended for a buyer represented to be in Manhattan.
Separately, from at least in or about August 2018 through at least in or about May 2019, SURUR and AHMED conspired to distribute and possess with intent to distribute more than approximately 10 kilograms of heroin to a buyer represented to be located in New York.
* * *
KROMAH, 49, CHERIF, 54, SURUR, 59, and AHMED, 56, are each charged with one count of conspiracy to commit wildlife trafficking and two counts of wildlife trafficking, each of which carries a maximum sentence of five years in prison. KROMAH, CHERIF, and SURUR are also each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years. Finally, SURUR and AHMED are each charged with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, which carries a maximum sentence of life imprisonment, and a mandatory minimum sentence of 10 years’ imprisonment. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the United States Fish and Wildlife Service and the DEA, and he thanked law enforcement authorities and conservation partners in Uganda for their assistance in the investigation. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs for their assistance and noted that the investigation is continuing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Jarrod L. Schaeffer are in charge of the prosecution.
The charges contained in the Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and its description set forth below constitute only allegations, and every fact described should be treated as an allegation.
Margaret E. Hunter Admits Conspiring with her Husband, Rep. Duncan D. Hunter, to Steal more than $200,000 in Campaign FundsRead the Press Release
Kelly Thornton (619) 546-9726
CLICK HERE for Plea AgreementNEWS RELEASE SUMMARY – June 13, 2019
SAN DIEGO – Margaret E. Hunter admitted in federal court today that she and her husband, U.S. Rep. Duncan D. Hunter, knowingly and willfully used campaign funds as their personal bank account for years, spending lavishly on things they could not otherwise afford, such as expensive trips to Italy, Las Vegas, Laguna Beach, Disneyland and elsewhere, plus golf outings, a bachelor party, private school for their children, dinners in Del Mar and Coronado, and even plane tickets for their family pet, Eggburt the rabbit.
Margaret Hunter’s plea agreement indicates that she has agreed to provide “substantial assistance to the United States in the investigation and prosecution of others” and to “tell everything (she) knows about every person involved” in the crime.
U.S. District Judge Thomas J. Whelan set Ms. Hunter’s sentencing for September 16, 2019 at 9 a.m. The Hunters both remain free on bond. A motions hearing relating to defendant Duncan Hunter is scheduled for July 1, 2019, and his trial is scheduled to begin on September 10, 2019.
As detailed in her plea agreement, beginning no later than 2010 and continuing up to and including at least 2016, Margaret and Duncan Hunter agreed to knowingly use campaign funds for their own personal benefit and enjoyment, and for that of friends and family. Throughout this period, the Hunters both recognized that many of their personal outings with family or friends (including trips to Del Mar, dinners or drinks with friends, family and “couples” vacations, golf outings, and a bachelor’s party) should not have been paid for with campaign funds. Nevertheless, Ms. Hunter admitted that the Hunters continued to improperly use campaign funds on these and many other occasions.
Among the improper expenses, Margaret Hunter acknowledged that the Hunters improperly spent $2,448.27 in campaign funds in August 2011 on a personal “couples” Las Vegas vacation in Las Vegas, Nevada, and concealed the personal expenditures by falsely reporting to the campaign treasurer that the expenses were all “campaign related.” Similarly, later that same month, knowing that their family bank account had a negative balance, the Hunters improperly used $113.73 in campaign funds to pay their half of the bill during another couples’ “date night” out with good friends at Jake’s Del Mar; improperly used $156.22 in campaign funds during a “couples” day at the Del Mar Racetrack; and improperly used $511.03 in campaign funds at the Hotel del Coronado to celebrate their child’s birthday. They once again falsely told the campaign treasurer that all the charges were “campaign related.”
Ms. Hunter acknowledged in her plea agreement that these types of improper expenses went on for years and included: (1) the Hunters’ improper use of $371.51 in campaign funds on September 2, 2012 at the Loew’s Resort in Coronado for a family lunch in connection with their child’s Irish Dance competition; (2) the Hunters’ improper use of $100.69 in campaign funds on November 16, 2013 at Casa De Pico in La Mesa to take their family and close friends out to dinner before attending a sporting event featuring one of the Hunters’ children; (3) the Hunters’ improper use of $1,489 in campaign funds on June 28, 2014 to treat their good friends to dinner at the Studio restaurant in the Montage Laguna Beach resort, and for room service, drinks, and meals the next day for the Hunters by themselves; (4) the Hunters’ improper use of campaign funds on September 26, 2015 for a family trip to Disneyland, in which Ms. Hunter used Duncan D. Hunter’s campaign card to spend $229.44 in campaign funds at Disneyland’s Star Trader shop for gifts for the Hunters’ children, including two Minnie Mouse ear headbands, a Star Wars droid knit beanie, and a raglan-sleeve black-and-gray Star Wars girls T-shirt; and (5) the Hunters’ improper use of $669.07 in campaign funds on March 27, 2016 at the Hotel del Coronado for a family Easter Sunday brunch in the Crown Room that the Hunters recognized was well outside their budget.
In her plea, Ms. Hunter also admitted improperly using campaign funds on a number of family vacations, including: (1) a July 2014 vacation to Washington, D.C. and a resort in Pennsylvania (which included personal items and activities such as purchasing cigarettes, $399 for ziplining for Hunter and two of his children, and $250 in airline travel charges for the family’s pet rabbit, Eggburt); (2) a February 2015 family trip to Minnesota, during which they improperly paid for personal family expenses including $250 in airline travel charges for Eggburt, and $132 in Uber rides to take the Hunter family to the Mall of America; (3) a June/July 2015 family vacation involving Hunter’s cousin’s wedding in Boise, Idaho, and a stopover in Las Vegas on the way there in which the Hunters, among other things, spent $205.62 in campaign funds for personal items at the North Face store, which included a new pair of sunglasses for Duncan Hunter and a T-shirt; and (4) a November 2015 family vacation to Italy, in which the Hunters improperly used more than $10,000 in campaign funds, and attempted to justify the impermissible use of these funds by setting up a one-day tour of a U.S. Navy facility in Italy.
Margaret Hunter also admitted communicating with Hunter and with the campaign treasurer about the fact that it was only appropriate to pay expenses with campaign funds when an outing or event was for a bona fide campaign or political purpose. Nevertheless, Ms. Hunter admitted that she and her husband both knowingly violated these restrictions and other rules the treasurer implemented to track legitimate expenses (such as instructing the Hunters not to purchase gas using campaign funds, instructing the Hunters that withdrawing cash from ATMs and using “petty cash” required records of how money was spent, and requiring receipts which listed the names of donors and volunteers with whom the Hunters claimed to be spending campaign funds).
Ms. Hunter also acknowledged that she and Duncan Hunter both were aware that the other spent, and could spend, campaign funds on personal activities and purchases without having to inform one another about the nature of specific “campaign” expenses. According to Ms. Hunter, this understanding allowed the Hunters to spend campaign funds on certain personal matters they wished to conceal from the other. For example, she hid from Duncan Hunter certain purchases she made with campaign funds for items like children’s school lunches.
On the other hand, when they improperly spent funds when they were together, they both recognized that campaign funds were being spent on personal activities. For example, after returning home from their personal Boise and Las Vegas vacation, Duncan Hunter and Ms. Hunter discussed how the campaign card had been declined as the family had “racked up a $600 minibar…and more charges at Caesars…” as well as a $200 family breakfast, the “kids room service” and pool drinks, and gift shop vacation expenses.
Even after Duncan Hunter’s chief of staff questioned several expenses the Hunters had made using campaign funds, Ms. Hunter admitted that the Hunters falsely insisted to campaign staff and on public reports that the personal expenses were in fact appropriate campaign-related charges. Moreover, Ms. Hunter acknowledged that she and Duncan Hunter continued using campaign funds to secretly make thousands of dollars in improper personal purchases (including family vacations, household goods and groceries, restaurants and bar tabs, a bachelor party, gas, fast food, retail shopping, cash withdrawals, a garage door, and personal Uber rides, among others) which they continued to disguise as campaign-related expenses.
DEFENDANTS Case Number 18cr3677-W
Margaret E. Hunter Age: 44 Alpine, CA
SUMMARY OF CHARGE
Conspiracy to Defraud the United States – Title 18, U.S.C., Sec. 371
AGENCY
Federal Bureau of Investigation
Louisiana Man Sentenced for Conspiring to Violate the Federal Housing Rights of Woman with DisabilitiesRead the Press Release
Jody Lambert, 24, was sentenced today in the Eastern District of Louisiana to 120 months imprisonment for conspiring with members of his family to prevent D.P., a woman with cognitive disabilities, from exercising her right to rent and occupy a dwelling without injury, intimidation, and interference because of her cognitive disabilities.
“Lambert and his co-defendants conspired to deprive a vulnerable victim of a safe and secure place to live, forcing her to live outside in a padlocked cage, because of her disability,” said Assistant Attorney General Eric Dreiband. “This disgraceful conduct is a hate crime, and the Department of Justice will continue to make combatting hate crimes a high priority. Today’s sentencing reflects our commitment to seeking justice for victims.”
“Ensuring the Civil Rights of all citizens, especially the most vulnerable is paramount to our country,” said Peter G. Strasser U.S. Attorney for the Eastern District of Louisiana. “The sentencing of Mr. Lambert sends a clear message that anyone who denies a citizen her rights will be held accountable.”
"Today's sentencing of Jody Lambert, for his inhumane treatment of a family member, serves as a stark reminder that justice does prevail,” said Eric Rommal, FBI New Orleans Special Agent in Charge. “As the primary federal agency charged with enforcing federal civil rights statutes, the FBI New Orleans Field Office will continue to aggressively investigate all credible civil rights allegations in Louisiana."
On Oct. 18, 2018, Lambert pleaded guilty to one count of civil rights conspiracy. At the plea hearing, Lambert admitted that for several months prior to June 30, 2016, in Amite, Louisiana, he conspired with other members of his family to force D.P. to live in a locked cage in their backyard because of her cognitive disabilities and because they did not want her living in the family’s mobile home. Lambert admitted that he and his family members locked D.P. in the cage at night with a metal chain and padlock, and that he and other family members had placed branches and a tarp over the cage to hide it from view. Lambert further admitted that while locked inside the cage, D.P. was required to use a five-gallon bucket as a toilet. Lambert also admitted that, prior to forcing D.P. to live in the cage, he and his family had forced D.P. to live in their backyard in a locked tent and in a locked shed. Lambert admitted that throughout the time D.P. lived with the family in Amite, Louisiana, Lambert and his conspirators subjected D.P. to routine physical violence and threats of physical violence in order to intimidate D.P. into these living conditions.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office, and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
Louisiana Man Sentenced for Conspiring to Violate the Federal Housing Rights of Woman with DisabilitiesRead the Press Release
WASHINGTON – Jody Lambert, 24, was sentenced today in the Eastern District of Louisiana to 120 months imprisonment for conspiring with members of his family to prevent D.P., a woman with cognitive disabilities, from exercising her right to rent and occupy a dwelling without injury, intimidation, and interference because of her cognitive disabilities.
“Lambert and his co-defendants conspired to deprive a vulnerable victim of a safe and secure place to live, forcing her to live outside in a padlocked cage, because of her disability,” said Assistant Attorney General Eric Dreiband. “This disgraceful conduct is a hate crime, and the Department of Justice will continue to make combatting hate crimes a high priority. Today’s sentencing reflects our commitment to seeking justice for victims.”
“Ensuring the Civil Rights of all citizens, especially the most vulnerable is paramount to our country,” said Peter G. Strasser U.S. Attorney for the Eastern District of Louisiana. “The sentencing of Mr. Lambert sends a clear message that anyone who denies a citizen her rights will be held accountable.”
"Today's sentencing of Jody Lambert, for his inhumane treatment of a family member, serves as a stark reminder that justice does prevail,” said Eric Rommal, FBI New Orleans Special Agent in Charge. “As the primary federal agency charged with enforcing federal civil rights statutes, the FBI New Orleans Field Office will continue to aggressively investigate all credible civil rights allegations in Louisiana."
On Oct. 18, 2018, Lambert pleaded guilty to one count of civil rights conspiracy. At the plea hearing, Lambert admitted that for several months prior to June 30, 2016, in Amite, Louisiana, he conspired with other members of his family to force D.P. to live in a locked cage in their backyard because of her cognitive disabilities and because they did not want her living in the family’s mobile home. Lambert admitted that he and his family members locked D.P. in the cage at night with a metal chain and padlock, and that he and other family members had placed branches and a tarp over the cage to hide it from view. Lambert further admitted that while locked inside the cage, D.P. was required to use a five-gallon bucket as a toilet. Lambert also admitted that, prior to forcing D.P. to live in the cage, he and his family had forced D.P. to live in their backyard in a locked tent and in a locked shed. Lambert admitted that throughout the time D.P. lived with the family in Amite, Louisiana, Lambert and his conspirators subjected D.P. to routine physical violence and threats of physical violence in order to intimidate D.P. into these living conditions.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office, and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
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Local Man Sentenced to 15 Years in Prison for Trying to Join ISISRead the Press Release
DAYTON – A Dayton man was sentenced today in U.S. District Court to 180 months in prison and 25 years of supervised release for attempting, and conspiring, to join the Islamic State of Iraq and al-Sham (ISIS). U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Assistant Attorney General for National Security John C. Demers and Special Agent in Charge Todd A. Wickerham of the FBI’s Cincinnati Division made the announcement.
“Alebbini was prepared to kill soldiers and citizens of the United States, the Kingdom of Jordan, and coalition partners fighting against ISIS. Indeed, Alebbini was prepared to kill any person who did not accept ISIS as the Islamic Caliphate,” said U.S. Attorney Glassman. “Prison is the right place for him.”
“Alebbini was determined to travel overseas for the purpose of joining ISIS and engaging in violence in support of the foreign terrorist organization,” said Assistant Attorney General Demers. “Notwithstanding pleas from others close to him, Alebbini declared that he is a terrorist and decided to move forward with his plan to join ISIS. Thanks to the great work of the agents, analysts, and prosecutors who are assigned to this case, Alebbini’s plans were thwarted and he is being held accountable for his crimes.”
Laith Waleed Alebbini, 28, was convicted following a bench trial in November and December 2018 before U.S. District Judge Walter H. Rice.
Alebbini attempted, and conspired, to provide material support and resources to ISIS in the form of personnel, namely himself.
Alebbini, a citizen of Jordan and a U.S. legal permanent resident, was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint.
Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court. The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding pass in hand for a flight to Amnan, Jordan, with a connection in Istanbul, Turkey. The evidence also showed that Alebbini intended to forego the flight to Jordan and instead make his way from Turkey into Syria to join ISIS.
According to court documents and testimony, on April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “The Islamic State is fighting a survival war . . . I, cousin, want to go to be an inghimasi soldier.”
As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation.
On April 26, 2017, about one hour before Alebbini arrived at the Cincinnati/Kentucky International Airport, several relatives pleaded with Alebbini not to join ISIS. Alebbini responded in three separate back-to-back text messages: “Do you think I am a criminal” “I am a terrorist” “I am mujahid.”
U.S. Attorney Glassman and Assistant Attorney General Demers commended the investigation of this case by the Joint Terrorism Task Force, which includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.
First Assistant Vipal J. Patel and Assistant U.S. Attorney Dominick S. Gerace of the Southern District of Ohio and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted this case.
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Lebanon, Oregon Business Owner Charged with Tax Evasion and Theft of Government FundsRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland returned a six-count indictment today charging Lebanon, Oregon business owner Robert A. Lund, 62, with evading $1.7 million in income taxes, failing to file individual income tax returns, obstructing or impeding the IRS and theft of government funds as part of a multi-year scheme to defraud the U.S.
According to the indictment, in June 2002, after an IRS audit and a lengthy period of litigation, the U.S. Court of Appeals for the Ninth Circuit affirmed a U.S. Tax Court finding that Lund owed more than $444,000 in underreported tax liabilities. After the ruling, the IRS Collection Division continued its efforts to collect the taxes Lund owed. In response, Lund sent the IRS frivolous correspondence, threatened to the sue the IRS Revenue Officers, attempted to quash various summonses and subpoenas, filed false bankruptcy petitions, transferred real property to nominees and used nominees to open financial accounts and conceal his income.
From December 2000 to November 2013, Lund incorporated or controlled over 160 nominee business entities and used them to conceal his assets and income from the IRS. He operated four businesses—a computer consulting company, a bookstore, a nutrition store and a scuba diving company—from a building in downtown Albany, Oregon. Additionally, he operated a trailer park in Sweet Home, Oregon from which he rented trailer units to individuals receiving government rental assistance.
Lund will be arraigned on July 10, 2019 in Portland.
This case was investigated by IRS Criminal Investigation and the Oregon Department of Human Services and is being prosecuted by Seth D. Uram and Clemon D. Ashley, Assistant U.S. Attorneys for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.