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13 June 2019
Latin King Gang Member Sentenced to Life in PrisonRead the Press Release
HAMMOND-Robert Nieto, also known as “Cowboy,” 45, of Gary, Indiana, and a member of the Chicago-based Latin Kings, was sentenced by U.S. District Judge Phillip Simon following his conviction at trial last May of conspiracy to participate in racketeering activity and conspiracy to distribute and possess with intent to distribute cocaine and marijuana, announced U.S. Attorney Kirsch.
Nieto was sentenced to Life in prison followed by 5 years of supervised release.
U.S. Attorney Kirsch said, “Long sentences, such as the sentence imposed in this case, should send a strong message of deterrence to those engaged in these activities. My office has amplified its efforts to reduce violent crime, and we will use all our resources to prosecute those who commit these senseless acts of violence. I am dedicated to working together with law enforcement partners to reduce violent crime.”
According to evidence presented at trial, as part of the racketeering conspiracy, on December 2, 2013, Rolando Correa, 22, of Gary, Indiana, was killed in Gary. Mr. Correa was coming to the aid of his next door neighbors, who were victims of a home invasion robbery. Robert Nieto assisted in setting up the home invasion and listened to a police scanner to assist in the escape of the robbers. The jury found Nieto responsible for Correa’s death in addition to finding that Nieto conspired to distribute or possess with intent to distribute at least five kilograms of cocaine as part of the racketeering conspiracy. The jury also found that Nieto conspired to distribute or possess with intent to distribute at least five kilograms of cocaine and at least 100 kilograms of marijuana as part of the drug conspiracy.
According to evidence presented at trial and case documents, Nieto was also a local leader of the Latin Kings who has been involved in the gang since at least approximately 2007, distributed cocaine and marijuana, possessed firearms, and ordered fellow gang members to shoot at rivals. He has a prior felony conviction for aggravated battery.
Approximately 43 defendants have been charged with racketeering conspiracy as members of the Latin Kings in a criminal conspiracy extending back to 2003. The racketeering conspiracy charge alleges that gang members and associates were participants in a racketeering conspiracy that involved murder, attempted murder, aggravated assault, sex trafficking, and narcotics distribution.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office and the U.S. Attorney’s Office, Northern District of Illinois, has also provided assistance. The Latin King racketeering conspiracy case is being prosecuted by Northern District of Indiana Assistant U.S. Attorneys David J. Nozick, Nicholas J. Padilla, Dean R. Lanter, and Joseph A. Cooley, formerly of the Criminal Division’s Organized Crime and Gang Section.
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LaPorte, Indiana Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND – Mario Ward II, age 23, of LaPorte, Indiana, was sentenced before United States District Court Judge Robert L. Miller, Jr. upon his plea of guilty to 2 counts of being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Ward was sentenced to 60 months in prison followed by 2 years of supervised release.
According to documents in this case, in July 2018, Ward possessed a firearm after being convicted of a felony offense. Ward was in a car that led police on a high speed chase while he had a stolen 9 millimeter firearm. The car crashed in a residential neighborhood, after which a second stolen 9 millimeter firearm was found in the car as well as over 50 grams of marijuana. While criminal charges from that incident were pending, Ward was released under court supervision. While on release, investigators went to arrest Ward at his home for a pre-trial release violation. During that arrest, investigators found a firearm that Ward admitting to handling as well as over 50 grams of marijuana and over $1,000.00 cash.
This case was investigated by ATF with assistance from the Michigan City Police Department, LaPorte County Drug Task Force and US Marshals Fugitive Apprehension Street Team. The case was handled by Assistant U.S. Attorney Molly E Donnelly.
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Justice Department Settles Suit Against Indiana Bank to Resolve Lending Discrimination ClaimsRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Southern District of Indiana today filed a complaint and settlement agreement, resolving allegations that First Merchants Bank engaged in lending discrimination by “redlining” predominantly African-American neighborhoods within Indianapolis, Indiana. “Redlining” is a term describing an illegal practice in which lenders intentionally avoid providing services to individuals living in predominantly minority neighborhoods because of the race of the residents in those neighborhoods.
The Department alleges in a complaint filed in the U.S. District Court for the Southern District of Indiana that First Merchants violated the Fair Housing Act and Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race in their mortgage lending services. The complaint alleges that, from 2011 to at least 2017, First Merchants engaged in unlawful redlining in Indianapolis by intentionally avoiding predominantly African-American neighborhoods because of the race of the people living in those neighborhoods. The Department also alleges in the complaint that First Merchants adopted a residential mortgage lending policy that had the effect of denying residents of predominantly African-American neighborhoods equal access to credit in violation of federal law.
“Federal law prohibits lenders from discriminating against mortgage applicants and other potential customers based on race,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend First Merchants for cooperatively resolving this case by taking steps to ensure that its residential lending products and services are made available to everyone in Indianapolis, regardless of race.”
“Discriminatory race-based lending practices have no place in our District,” said Josh Minkler, U.S. Attorney for the Southern District of Indiana. “This case involving First Merchants Bank shows our commitment to ensure this reality.”
First Merchants Bank is headquartered in Muncie, Indiana, with branches throughout the Midwest. First Merchants is one of the largest full-service banks in Central Indiana with more than $9 billion in assets and 110 branches in Indiana alone. Under the settlement agreement, which is subject to court approval, First Merchants will expand its marketing efforts, lending, and banking services to specifically include predominantly African-American neighborhoods in Indianapolis. To remedy the harm to those living in the redlined areas, the Bank will invest $1.12 million in a loan subsidy fund to increase credit opportunities to residents of predominantly African-American neighborhoods, and will devote $500,000 toward advertising, community outreach, and credit repair and education. The Bank will also open a branch and loan production office to serve the banking and credit needs of residents in predominantly African-American neighborhoods in Indianapolis. The Bank will employ a director of community lending and development who will oversee these efforts and work in close consultation with the Bank’s leadership.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing.
Justice Department Celebrates Strong Support for Religious Freedom at One Year Mark of the Place to Worship InitiativeRead the Press Release
The Department of Justice today announced the one-year anniversary of its Place to Worship Initiative, which focuses on protecting the rights of religious individuals and communities to build, expand, buy, or rent houses of worship and other religious facilities as guaranteed by the Religious Land Use and Institutionalized Persons Act (RLUIPA).
“The Department of Justice has prioritized protecting religious freedom, and the successes we have achieved under the Place to Worship Initiative in just one year demonstrate the strength of that commitment,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to enforce vigorously the laws that defend the fundamental freedom of religion, and we are pleased that this initiative has allowed the Department to continue this important work on behalf of many different and diverse religious groups.”
Since launching the initiative last June, the Civil Rights Division has doubled the number of RLUIPA investigations to 15, compared to the average of seven investigations per year from 2010 – 2016. A majority of investigations result in a resolution, or settlement, without a lawsuit. Since the initiative began, the Justice Department has resolved 10 RLUIPA investigations.
Moreover, since the start of the initiative, the Department filed a lawsuit against the Borough of Woodcliff Lake, New Jersey, alleging that the borough violated RLUIPA when its zoning board denied zoning approval to allow the Valley Chabad, an Orthodox Jewish congregation, to build a new place of worship on its land. The Department also filed suit against and reached an agreement with the City of Farmersville, Texas, to resolve allegations that the city violated RLUIPA when it denied an application by the Islamic Association of Collin County to build a cemetery.
Since the initiative began, the Department has also actively participated in RLUIPA lawsuits filed by private parties around the country. The Department has filed four Statements of Interest supporting RLUIPA plaintiffs in federal district courts, including: Hope Lutheran Church v. City of St. Ignace, Christian Fellowship Centers of New York, Inc. v. Village of Canton, Ramapough Mountain Indians, Inc. v. Township of Mahwah, and Jagannath Organization for Global Awareness v. Howard County. These cases have involved such diverse issues as the ability of churches in New York and Michigan to locate in business districts, the right of Ramapough Mountain Indians to use land for religious assembly in New Jersey, and the right of a Hindu congregation to build a temple in Maryland. The Department also filed an amicus brief and presented oral argument in the United States Court of Appeals for the Fourth Circuit supporting an Evangelical church’s RLUIPA claim against Baltimore County, Maryland. The Fourth Circuit ultimately agreed with the Department’s position that the small congregation, many of whose members are African immigrants, could proceed with its claim that the county improperly denied approval to build a small church on a 1.2-acre lot.
Finally, as part of the Place to Worship Initiative, the Department has launched a new website and complaint portal, provided informational materials for religious leaders and municipal officials, and held 15 community outreach and training events to raise awareness about RLUIPA across the country.
The Department of Justice announced the creation of the Religious Liberty Task Force in July 2018. The Task Force helps the Department fully implement the religious liberty guidance by ensuring that all Justice Department components are upholding that guidance in the cases they bring and defend, the arguments they make in court, the policies and regulations they adopt, and how we conduct our operations.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. More information about RLUIPA is available on the Place to Worship Initiative homepage, https://www.justice.gov/crt/place-worship-initiative.
Justice Department Announces Transnational Elder Fraud Strike ForceRead the Press Release
WASHINGTON – Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that 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.
The Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, and Southern District of Texas), 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.
“Fraud against the elderly is on the rise,” said Attorney General 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.”
“Schemes that target elderly and vulnerable victims are unconscionable,” stated Richard P. Donoghue, United States Attorney for the Eastern District of New York. “The Transnational Elder Fraud Strike Force will use every resource available to ensure that, no matter where they are, perpetrators of elder fraud will be stopped and prosecuted.”
“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 three million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Justice Department Announces New Transnational Elder Fraud Strike ForceRead the Press Release
Attorney General William P. Barr today 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, the U.S. Attorneys’ Offices for six federal districts, the FBI, the U.S. Postal Inspection Service, and other organizations. 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.
The Transnational Elder Fraud Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), 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.
“Fraud against the elderly is on the rise,” said Attorney General 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.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Justice Department Announces New Transnational Elder Fraud Strike ForceRead the Press Release
WASHINGTON – Attorney General William P. Barr today 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, the U.S. Attorneys’ Offices for six federal districts, the FBI, the U.S. Postal Inspection Service, and other organizations. 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.
The Transnational Elder Fraud Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), 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.
“Fraud against the elderly is on the rise,” said Attorney General 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.”
“Florida is home to millions of our nation’s seniors, who are often targeted for fraud through unscrupulous means,” said U.S. Attorney Maria Chapa Lopez, Middle District of Florida. “The Transnational Elder Fraud Strike Force will enhance our ability to coordinate resources beyond our borders, and pursue and prosecute those who seek to prey upon one of our most vulnerable populations.
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.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Jacksonville Woman Pleads Guilty to Submitting A False Claim to FEMA for Disaster Assistance Benefits Involving Hurricane IrmaRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Kimberly Dues (37, Jacksonville) has pleaded guilty to disaster assistance fraud involving fraudulently obtained FEMA benefits. She faces up to 30 years in federal prison and payment of restitution to the United States in the amount of $32,038. A sentencing date has not yet been set.
According to court documents, in November 2017, the U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG) received information that Dues had provided false information to the Federal Emergency Management Agency (FEMA) in order to receive disaster assistance benefits. Upon investigation, DHS-OIG determined that, in September 2017, Dues submitted an application to FEMA for disaster assistance benefits, concerning Hurricane Irma, through the Individuals and Households Program. A review of the application revealed that Dues had falsely claimed that her primary residence in Jacksonville, Florida, was damaged due to the hurricane. Based on the purported storm damage, Dues claimed that she had to relocate and was in need of disaster assistance benefits. Because of the false statements made in her application, Dues fraudulently obtained $32,038 from FEMA.
This case was investigated by the Department of Homeland Security - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Kevin C. Frein. This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] (link sends e-mail). You may also visit www.justice.gov/usao-mdfl.
Illegal alien sentenced to two years in prison for re-entering the U.S. after six prior deportationsRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Andres Garcia-Mora, 28, a Mexico citizen, was sentenced Wednesday to two years in prison by Chief U.S. District Judge S. Maurice Hicks Jr. for illegally re-entering the United States after being previously deported six times.
Louisiana State Police arrested Andres Garcia-Mora on August 23, 2018, in Bossier Parish for possession of a controlled substance, driving while intoxicated, no driver’s license and an open container. Louisiana State Police notified Homeland Security Investigations agents about the arrest, who then discovered that Garcia-Mora was in the United States illegally after being removed from the United States six times between 2009 and 2016. During that time, Garcia-Mora used at least eight aliases in his attempts to enter the United States. The last removal took place on December 30, 2016, near Del Rio, Texas. Garcia-Mora’s criminal history includes three convictions for federal immigration offenses and three state misdemeanor convictions in Texas and Louisiana for simple battery, a liquor violation and driving while intoxicated. He pleaded guilty to the current federal charge on May 30, 2019, and faces removal from the United States after serving his prison term.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
Illegal Alien Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Andres Barrientos-Flores, 33, an illegal alien from El Salvador, pled guilty yesterday before U.S. District Judge Sul Ozerden to unlawful return of an alien after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Barrientos-Flores is scheduled to be sentenced on Thursday, September 5, 2019, at 9:00 a.m., by Judge Ozerden. He faces a potential two years in federal prison followed by one year of supervised release, a $250,000 fine, and Department of Homeland Security removal proceedings.
On March 26, 2019, on Interstate-10, in Jackson County, an agent of the South Mississippi Metro Enforcement Team observed a 2019 white GMC Yukon traveling in the far-left passing lane below the posted speed limit and impeding the flow of traffic. The agent initiated a traffic stop on the SUV, which was bearing Maryland license plates. Later, a U.S. Border Patrol Agent arrived on the scene to assist and made contact with the driver and identified Barrientos-Flores as a passenger in the SUV. Both men were later transported to the U.S. Border Patrol station in Gulfport for further processing and investigation.
Barrientos-Flores was positively identified by a computer scan of his fingerprints into a Homeland Security Database that automatically accessed his official immigration records. He was determined to have unlawfully returned to the United States after having been previously removed on August 24, 2018. He was prohibited from entering, attempting to enter, being in the United States, or applying for admission, for a period of 10 years.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, the United States Border Patrol, Homeland Security Investigations, the South Mississippi Metro Enforcement Team, and the Jackson County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Highland, Indiana Man Sentenced to 30 Years in PrisonRead the Press Release
HAMMOND –Alan Piwowar, 34, of Highland, Indiana was sentenced today by U.S. District Court Judge Joseph S. Van Bokkelen after pleading guilty to production and possession of child pornography, announced U.S. Attorney Kirsch.
Piwowar was sentenced to serve a total of 360 months in prison, 15 years of supervised release and ordered to pay $50,000 in restitution.
According to his plea agreement, in October 2008, Piwowar knowingly caused a 2-year-old child in his custody, care, or supervisory control to engage in sexually explicit conduct and took photographs. Piwowar admitted that he touched the child with the intent to sexually arouse or gratify himself. In April 2018, Piwowar also possessed depictions of other minors under the age of 18 being caused to engage in sexually explicit acts with adults. After learning he was under investigation for child pornography offenses, Piwowar sought to destroy evidence of his crimes.
This case was investigated by the Federal Bureau of Investigation. The case was handled by Assistant U.S. Attorney Jill R. Koster.
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Grand Jury Charges Ponca City Pair in Steroid ConspiracyRead the Press Release
OKLAHOMA CITY – A federal grand jury has returned an indictment charging PATRICK LEE AMADORE TRAVIS, 25, and MIRANDA NICHOLE RHYNARD, 26, both of Ponca City, with illegal distribution of steroids, announced United States Attorney Timothy J. Downing.
According to the indictment, Travis and Rhynard conspired to distribute anabolic steroids, which are Schedule III controlled substances, from March 2018 until November 1, 2018. The charges also include unlawful importation of pharmaceuticals with a counterfeit Viagra trademark, manufacturing anabolic steroids, trafficking in counterfeit goods, and possession of anabolic steroids with intent to distribute. In addition, Travis is charged with possessing a Kel-Tec PMR-30 pistol in furtherance of anabolic steroid trafficking.
An affidavit in support of a search warrant issued on June 11, 2019, alleges that Travis and Rhynard own an internet-based company called Swolescriptz Research Lab and Swole-RX. According to the affidavit, investigators found three pill presses, bags of powder from China, and a firearm in a cargo trailer when they visited the defendants’ Ponca City property on November 1, 2018. The affidavit states laboratory tests have confirmed the presence of anabolic steroids.
The affidavit further reports the defendants continued operating their business after the November 2018 visit from investigators. During this time, they allegedly offered for sale substances they claimed would cause "increase in muscle mass," although they included a disclaimer that "[a]ll products listed on this website are for research purposes only and are not for human consumption."
Travis and Rhynard were arrested in Ponca City on the morning of June 11 and appeared for arraignment in Oklahoma City that afternoon. Rhynard was released subject to conditions pending trial. Travis has been temporarily detained in advance of a detention hearing scheduled for June 14.
If convicted of conspiracy, manufacturing anabolic steroids, or possession of anabolic steroids with intent to distribute, both defendants could be imprisoned for ten years on each count and be subject to a fine of $500,000 per count. These charges also call for a term of supervised release of not less than two years and up to life. Trafficking in counterfeit goods could carry a prison term of twenty years and a $5,000,000 fine. Unlawful importation could result in a prison term of twenty years and a fine of $250,000. Finally, a conviction on the gun count against Travis would trigger a five-year mandatory minimum sentence, consecutive to any other imprisonment imposed.
This case is the result of an investigation by the Drug Enforcement Administration and the 8th District Attorney’s Drug and Major Crime Unit, with assistance from the Ponca City Police Department and U.S. Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Matthew P. Anderson.
The public is reminded that these charges are merely allegations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Georgia Optician Pleads Guilty to Identity TheftRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that JOHN ANTHONY MARSH, age 55, of Atlanta, Georgia pled guilty yesterday to a one-count bill of information charging him with identity theft in violation of Title 18, United States Code, Section 1028(a)(7).
According to court documents, in 2016, MARSH opened a business in New Orleans called Magazine Medical Group & Associates, LLC (“Magazine Medical”) that provided ophthalmological services. MARSH opened Magazine Medical at the same location as another medical clinic that had provided ophthalmological services, Business 1. Between June 2016 and September 2016, MARSH used Business 1’s name when submitting claims for medical services to Medicare and other health care benefit programs to make it appear that those purported medical services were performed at Business 1.
Additionally, according to court documents, during that same time period, MARSH used the National Provider Identifier of Physician 1, who previously worked for Business 1, to submit claims to Medicare and other health care benefit programs making it appear as though Physician 1 performed medical services at Magazine Medical. Physician 1 neither worked for MARSH or Magazine Medical nor treated any patients for ophthalmological services at that clinic.
As reimbursement for the fraudulent claims that MARSH was responsible for submitting through Magazine Medical, Medicare and other health care benefit programs issued checks to Business 1 and Physician 1. MARSH received and deposited these checks into his bank account. In total, between June 2016 and September 2016, MARSH fraudulently caused billings to Medicare and other health care benefit programs totaling approximately $77,198 for medical services that were not provided by Physician 1, and received approximately $20,669.67 for these fraudulent claims.
MARSH faces a possible maximum sentence of 15 years imprisonment and a $250,000 fine.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Department of Health and Human Services for their work investigating the case.
The case is being prosecuted by Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Duane A. Evans.
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Georgia Inmate Pleads Guilty to Conspiracy to Commit Wire Fraud for His Role in Grand Jury ScamRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that NICHOLAS ROTUNDA ALLEN, age 39, an inmate in Jimmy Autry State Prison in Pelham, Georgia, pleaded guilty yesterday before United States District Judge Martin L.C. Feldman to conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 371, for his role in perpetrating a grand jury fraud scam and victimizing a resident of the Eastern District of Louisiana.
According to court documents, ALLEN was sentenced to a period of incarceration as part of a felony conviction on February 22, 2016 in the State of Georgia. He began serving his sentence at Jimmy Autry State Prison, a Georgia Department of Correction facility located in Pelham, Georgia, on about March 30, 2016. Jimmy Autry State Prison housed approximately 1,700 adult male inmates and had approximately 119 correctional officers employed by the Georgia Department of Corrections overseeing them. In about 2016, several inmates and correctional officers at Jimmy Autry State Prison were the subject of a series of federal prosecutions related to a scheme by which inmates bribed correctional officers to smuggle contraband, namely cellular phones, into the prison.
On November 6, 2017, and November 7, 2017, ALLEN used a contraband cellular telephone to contact Victim A, a resident of Metairie, Louisiana, from inside the state prison. Although he was not permitted to have a phone inside the jail, ALLEN obtained the phone from a non-incarcerated co-conspirator. The cellular telephone ALLEN used was associated with two Georgia-based phone numbers, but he attempted to avoid detection and make it appear as though he was located within the New Orleans area by utilizing a “spoofing” application that made it appear to Victim A that someone with a local phone number, (504) XXX-5237, was contacting him.
ALLEN pretended to be a Deputy United States Marshal and informed Victim A that he had unlawfully failed to report for jury duty service for the United States District Court for the Eastern District of Louisiana. ALLEN further told Victim A that because he had failed to appear for jury duty, a warrant had been issued out of the Eastern District of Louisiana for Victim A’s arrest. ALLEN said that Victim A had the choice of either being arrested on the warrant or paying a $5,500 fine to have the arrest warrant dismissed. Victim A paid the fine by buying a series of pre-paid cash cards and giving the account numbers to ALLEN. Thereafter, Victim A paid ALLEN by buying a total of eleven (11) pre-paid cash cards and giving the cards’ account numbers to ALLEN.
ALLEN faces a maximum term of imprisonment of five years, a fine of up to $250,000, three years supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Feldman has been scheduled for August 28, 2019.
U.S. Attorney Strasser praised the work of the United States Marshal Service and the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg, Supervisor of the Public Corruption Unit, is in charge of the prosecution.
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Four sentenced in stolen Great Falls fireworks investigationRead the Press Release
GREAT FALLS—Four men convicted in the 2017 theft of explosives intended for a Fourth of July fireworks display in Great Falls were sentenced this week to terms ranging from probation to prison, U.S. Attorney Kurt Alme said.
The defendants each pleaded guilty earlier this year to crimes associated with the theft of $18,000 worth of commercial fireworks from a trailer in Great Falls. The explosives were intended to be used at the City of Great Falls’ Fourth of July display. On July 3, 2017, a man called the Great Falls Police Department to report that someone had stolen the fireworks. The man had locked the trailer but when he arrived at the trailer during evening of July 3, he noticed someone had cut the lock.
U.S. District Judge Brian M. Morris presided at the sentencings.
On June 12, Judge Morris sentenced Kris Harding, 48, of Sun Prairie, to three years of probation and to 200 hours of community service. Harding pleaded guilty to being a prohibited person in possession of explosives. Harding was prohibited from possessing explosives because of a prior felony conviction.
Judge Morris also sentenced Rand Emineth, 27, of Great Falls, to 18 months in prison, three years of supervised release and 200 hours of community service. Emineth pleaded guilty to possession of stolen explosives.
On June 13, Judge Morris sentenced Shevyn Eugene Marshall, 35, of Great Falls, to six months in prison, three years of supervised release and 400 hours of community service. Marshall pleaded guilty to possession of stolen explosives.
Judge Morris also sentenced William James Outten, 27, of Great Falls, to 16 months in prison, three years of supervised release and 200 hours of supervised release. Outten pleaded guilty to possession of stolen explosives.
On July 4, 2017, law enforcement began receiving information about the fireworks theft and that Harding may have been involved, the prosecution said. A witness told investigators that he helped Harding and Outten, who was Harding’s roommate, unload about a dozen totes of fireworks from Harding’s pickup truck into their living room in Sun Prairie.
Law enforcement found fireworks in Harding’s pickup and a label on the explosives identified that they were from a Helena company that had supplied the fireworks for the Fourth of July show.
On July 5, 2017, agents received additional information that Emineth was in possession of stolen fireworks. The agents learned that Emineth had arrived at a home in Great Falls on the evening of July 2, 2017 and unloaded plastic tubes that contained fireworks and detonator devices. Officers went to the home and found Emineth, who told them Outten had been trying to rid of fireworks and had called him to inform him that police had searched the Sun Prairie home.
In addition, a man went to the Great Falls Police Department on July 11, 207 and wanted to turn in stolen fireworks. The man said Emineth had come to his home mid-day on July 2, 2017 and wanted to store bags in his shed. The man told officers that Emineth placed five bags in the shed and left. The man then learned about the stolen fireworks, went to the shed and found the fireworks along with yellow plastic control boxes. The man took the bags, which contained fireworks with the same label as the Helena company’s, to the police station.
And on July 12, 2017, another man contacted the police and said that co-defendant Marshall had provided him with some of the stolen fireworks and that he wanted to return them to the police department. The man dropped off the fireworks and agents found that they too, contained the Helena company’s label. The man told police that Marshall asked him if he wanted to buy fireworks. The man asked if the explosives were the stolen fireworks mentioned on the news, and Marshall said that they were. Marshall told the man he had paid $100 for the fireworks and showed him the explosives. Marshall admitted to officers that Emineth had approached him about the stolen fireworks and had placed them in the car he was driving but that they did not exchange money.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Fort Washakie Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Mark A. Klaassen announced that Chief U.S. District Judge Scott W. Skavdahl sentenced a Fort Washakie, Wyoming man on June 12, 2019 on four counts of Abusive Sexual Contact.
Kyle James Ferris, age 35, was sentenced to serve a forty-month prison term, followed by 10 years of supervised release, and ordered to pay a special assessment of $400. He is further required to register as a sex offender. Ferris pled guilty to the four counts of Abusive Sexual Contact on March 20, 2019. The convictions stem from multiple incidents between August 2012 and November 2013, in which Ferris engaged in sexual contact with a thirteen-year-old victim.
The Bureau of Indian Affairs and the Federal Bureau of Investigation investigated this case. After sentencing, the court immediately remanded Ferris to the custody of the U.S. Marshals Service.
Former Village of Posen President Guilty of EmbezzlementRead the Press Release
CHICAGO — The former president of the village of Posen pleaded guilty in federal court today to charges he embezzled money from the south suburb and spent it at casinos.
DONALD W. SCHUPEK, 79, of Posen, pleaded guilty to one count of embezzlement. The conviction carries a maximum penalty of ten years in prison and a fine of up to $250,000, plus mandatory restitution. U.S. District Judge Robert W. Gettleman set sentencing for Sept. 12, 2019, at 10:30 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Terry Kinney.
According to his plea agreement, Schupek, while serving as Posen president, directed the village bookkeeper to issue checks on the village’s checking account made payable to Schupek. From June 2014 to August 2016, Schupek directed the issuance of nine checks, totaling $27,000, the plea agreement states. At the time, Schupek did not inform the village treasurer nor the village board that he had issued these checks to himself.
Schupek admitted in the plea agreement that he converted the funds to his own use, including gambling expenses at two casinos in Joliet.
Former Rocky Mountain Bank official charged with fraud, money laundering and blackmailRead the Press Release
BILLINGS—Stephen Phillip Casher, a former Rocky Mountain Bank official, pleaded not guilty to multiple crimes in an alleged scheme to defraud the bank, U.S. Attorney Kurt Alme said today.
An indictment charges Casher, 45, of Billings, with two counts of bank fraud, one count of money laundering and one count of blackmail. The indictment is merely an accusation, and Casher is presumed innocent until proven guilty.
U.S. Magistrate Judge Timothy J. Cavan presided and continued Casher’s release pending further proceedings.
If convicted of the most serious crime, Casher faces a maximum 30 years in prison, a $1 million fine and five years of supervised release.
The indictment alleges Casher, who was Rocky Mountain Bank’s market president, defrauded the bank in September 2014 by approving a bank loan to Larry “L.J.” Price, for which Price was a guarantor, without disclosing the existence to the bank of other outside loans that Casher had arranged and was aware of. The indictment further alleges that Casher in February 2016 approved a bank loan to an entity controlled by Price without disclosing to the bank additional outside loans he and others had made to Price and without disclosing information concerning Price’s true net worth and cash liquidity.
The indictment also alleges Casher engaged in a monetary transaction that involved property derived from the bank fraud and that he demanded and received interest in real estate from an individual under a threat of informing about a violation of the law.
Pacer case reference. 19-65.
The progress of this may monitored through the U.S. District Court calendar and the PACER system. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Former Musical Director at St. Agnes Cathedral on Long Island Pleads Guilty to Receiving Child PornographyRead the Press Release
Michael Wustrow, the former musical director at St. Agnes Cathedral in Rockville Centre, New York, pleaded guilty today in federal court in Central Islip to receipt of child pornography. The proceeding was held before United States Magistrate Judge Gary R. Brown. When sentenced, Wustrow faces up to 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“The Eastern District will continue to bring to justice those like Wustrow who contribute to the victimization of innocent children,” stated United States Attorney Richard P. Donoghue.
On September 11, 2017, Wustrow was found to be in possession of multiple images of children engaged in sexually explicit conduct on his cell phone. Among these images was a picture of a toddler being abused by an adult male, which Wustrow received from the messaging app, Kik. Through the messaging app, Wustrow also claimed to have had sexual contact with with an underage teenage boy and stated that he wanted to sexually abuse a 12- or 13-year-old boy. Wustrow has been incarcerated since his arrest on February 20, 2019.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Oren Gleich is in charge of the prosecution.
The Defendant:
MICHAEL WUSTROW
Age: 56
Freeport, New YorkE.D.N.Y. Docket No. 19-CR-87 (SJF)
Former Mahoning County judge sentenced to more than two years in prison for stealing $100,000 from deceased client’s estateRead the Press Release
A former Mahoning County judge was sentenced to more than two years in prison for stealing $100,000 from a deceased client’s estate.
Diane Vettori-Caraballo, 50, of Youngstown, was sentenced to 30 months in prison and ordered to pay $328,000 in restitution. She pleaded guilty earlier this year to one count of mail fraud, one count of structuring cash deposits, and one count of making false statements to law enforcement.
Vettori-Caraballo stole at least $100,000 in cash that was in the home of a client when that client died in March 2016, according to court documents.
“The fact that the defendant stole at least $100,000 from an elderly person who trusted her to administer their estate is heartbreaking,” US Attorney Justin Herdman said. “The fact that thief in this case was a sitting judge who swore to uphold the law is outrageous.”
“When a public official puts personal gain ahead of a sworn oath of servitude, the very core of how and why our system of government operates is immediately and negatively impacted. Public officials should be an example to the citizens they serve. IRS Criminal Investigation, in conjunction with the U.S. Attorney’s Office and the FBI, will continue to give priority to investigations involving the breach of the public trust by government officials,” stated William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Vettori-Caraballo was elected to position of judge in Mahoning County Court #3 – Sebring Court in 2002, with jurisdiction over misdemeanor criminal and traffic charges and other matters in Sebring and Beloit Villages and Berlin, Green, Goshen,, Ellsworth, Smith and Washingtonville Townships. She was reelected in 2006 and 2012, according to court documents.
She also provided estate planning services to Robert Sampson, including drafting his will. On Nov. 20, 2015, Vettori-Caraballo filed an application in Mahoning County Probate Court to administer Sampson’s estate. The application stated Sampson died without a will. The probate court, unaware of Sampson’s will, appointed Falgiani as the administrator three days later, according to the indictment.
Sampson died in 2015 and his closest living relative was his sister, Dolores Falgiani. Vettori-Caraballo prepared Falgiani will on Nov. 3, 2015. The will made 16 specific bequests to relatives and friends and bequeathed the rest of the estate to Animal Charity Human Society of Boardman and the Angels for Animal Charity in Canfield, according to court documents.
Sometime in October or November 2015, Falgiani stated she was in possession of several shoeboxes of cash stored at her residence. Falgiani was found dead in her home on March 10, 2016, according to court documents.
Vettori-Caraballo filed an application in Mahoning County Probate Court to probate Falgiani’s estate on March 24, 2016. On May 2, she reported having found cash in the residence and depositing the $20,000 into the estate, according to court documents.
Vettori-Caraballo filed a notice of newly discovered assets with the court on several subsequent occasions in 2016 and 2017. Each time, she failed to disclose the cash she had stolen, according to court documents.
Vettori-Caraballo also structured deposits of the cash she stole into five different banks within four weeks to avoid regulations that require banks to report cash transactions over $10,000 to the IRS. In addition, Vettori-Caraballo lied to the FBI when she was confronted about the theft and the structuring of cash deposits, according to court documents.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Alex Abreu.
Former Chief Executive of Suburban Nutrition Company Pleads Guilty in Market Manipulation SchemeRead the Press Release
CHICAGO — The former Chief Executive Officer of a northwest suburban nutrition company has pleaded guilty to securities fraud for engaging in a market manipulation scheme to artificially inflate the company’s stock price.
ANDREW J. KANDALEPAS, 67, of Schaumburg, pleaded guilty Tuesday to one count of securities fraud. U.S. District Judge Gary Feinerman set sentencing for Sept. 5, 2019.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The U.S. Securities and Exchange Commission provided valuable assistance. The government is represented by Assistant U.S. Attorneys John D. Mitchell and William Hogan.
Kandalepas was the CEO, President and Chairman of the Board for Wellness Center USA Inc., whose principal place of business was in Hoffman Estates. The company raised more than $19 million from investors through the sale of common stock, and Kandalepas himself held more than three million shares. Kandalepas admitted in a plea agreement that from December 2012 to June 2015, he bought and sold Wellness Center shares for the purpose of artificially inflating the stock price.
Many of his trades occurred at or near the close of normal trading hours in a form of market manipulation known as “marking the close.” According to an example cited in the plea agreement, Kandalepas, using a brokerage account in the name of an acquaintance, executed a trade to buy 300 Wellness Center shares within the last five seconds of the trading day on May 4, 2015. The trade artificially raised Wellness Center’s share price by 4%, from $0.27 to $0.28, causing a profit for Kandalepas of approximately $30,000.
In all, Kandalepas netted at least $136,176 in trading profits for his personal use.
Securities fraud is punishable by up to 20 years in prison. The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Bucks County Public Safety Officials Sentenced to 4 ½ and 1 ½ Years in Prison for Public CorruptionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Robert Hoopes, 72, of Doylestown, PA, and Bernard Rafferty, 64, of Langhorne, PA were sentenced to 54 months’ and 18 months’ incarceration, respectively, by United States District Judge Gene E.K. Pratter. In September 2018, Hoopes pleaded guilty to conspiracy to commit money laundering and Hobbs Act Extortion Under Color of Official Right. In March 2018, Rafferty pleaded guilty to conspiracy to commit money laundering and honest services mail fraud.
From February 2016 until December 2016, Hoopes was the Director of Public Safety in Lower Southampton Township, Pennsylvania. In this position, Hoopes had authority over all police, fire, and emergency operations in the township. From 1992 until December 2016, Rafferty was a Deputy Constable in Bucks County.
Together with their co-defendants, including former Magisterial District Judge John Waltman who was sentenced to 78 months’ incarceration earlier this week, Hoopes and Rafferty participated in a scheme to extort bribes and kickbacks from Bucks County businessmen. They also conspired to launder money for individuals they believed were engaged in narcotics trafficking and health care fraud.
For example, in November 2016, Waltman, Hoopes, and Rafferty accepted a bribe of $1,000, as well as the promise of other fees, in exchange for Waltman, Hoopes, and Rafferty to use their positions as public officials to “fix” a traffic case before Waltman in Bucks County Magisterial District Court.
In addition, from June 2015 to November 2016, Waltman, Hoopes, and Rafferty conspired to launder funds represented to be proceeds from health care fraud, and illegal drug trafficking. From June 2016 to August 2016, Waltman, Hoopes, and Rafferty specifically laundered $400,000 in cash and took money laundering fees totaling $80,000 in cash.
“The laws of the land apply to everyone – especially to public officials who hold office to serve the public good,” said U.S. Attorney McSwain. “Hoopes and Rafferty, like their corrupt partner Waltman, chose to flout the rule of law. In doing so, they disgraced themselves and the offices they held. Every public official should be on notice after today’s sentence: federal law enforcement is watching and we will hold you accountable if you make the wrong choices.”
“Hoopes and Rafferty held positions of trust and were expected to protect and serve their community,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Abandoning all pretense of ethics, they instead used their public roles for personal gain. They were willing to engage in what was clearly criminal behavior, so long as it benefitted their bank accounts. Such blatant corruption is toxic to the public trust, and the FBI is gratified these defendants are being held accountable.”
“Honest and law abiding citizens are fed up with the likes of those who use fraud to line their pockets,” said Guy Ficco, IRS-Criminal Investigation Special Agent in Charge. “Robert Hoopes and Bernard Rafferty disregarded the trust placed in them by the public when they made conscious decisions to accept bribes and launder money. Let this serve as a reminder that we will continue to investigate and bring to justice those who commit similar crimes.”
“This week’s sentencings reflects Homeland Security Investigations’ commitment to, and focus on, the investigation of financial crimes,” said Marlon V. Miller, special agent in charge of HSI Philadelphia. “By using their official positions for personal gain, Mr. Hoopes, Mr. Rafferty, and Mr. Waltman violated the trust placed in them by the public. HSI and our law enforcement partners will continue to vigorously investigate those who conspire to knowingly launder illicit funds derived from criminal activities.”
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, Homeland Security Investigations, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Louis Lappen and Richard Barrett.
Former Bossier Parish deputy sentenced to 51 months in prison for possessing child pornographyRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that James Goldman Grant, 67, of Benton, Louisiana, was sentenced Monday to four years and three months in prison by Chief U.S. District Judge S. Maurice Hicks Jr. for possession of child pornography. He was also sentenced to five years of supervised release and is required to register as a sex offender.
According to information presented in court, law enforcement agents discovered that James Grant’s friend, James Robert Wilson, 34, of Bossier City, Louisiana, had been downloading child pornography. During a search of Wilson’s home on November 6, 2017, agents found more than 100 images of child pornography on electronic devices. Wilson admitted to possessing and distributing images and videos of child pornography and also told the agents that he had met with James Grant, a retired Bossier Parish Sheriff’s deputy, at Grant’s home to view and exchange child pornography. During a search of Grant’s home on November 6, 2017, agents discovered a thumb drive containing approximately 18 videos and 23 images of child pornography. After his arrest, Grant admitted to meeting with Wilson at his home and admitted to downloading the child pornography to watch together with Wilson while he was there. James Grant pleaded guilty on February 11, 2019.
James Robert Wilson pleaded guilty on December 11, 2018 for distributing child pornography, and he was sentenced on March 20, 2019 to 188 months in prison, five years of supervised release and is required to register as a sex offender.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The Homeland Security Investigations, FBI, and Louisiana Bureau of Investigation, Cyber Crime Unit, conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Former Albany-Area HUD Employee Sentenced on Fraud ChargesRead the Press Release
SYRACUSE, NEW YORK – Timothy J. Oravec, age 60, formerly an employee at the United States Department of Housing and Urban Development (HUD) in Albany, New York, was sentenced yesterday afternoon to serve four months imprisonment and three years of supervised release by Senior United States District Judge Frederick J. Scullin, Jr. for committing wire fraud as part of a scheme to defraud the United States and HUD employees by falsely claiming that he had cancer and receiving and using leave time donated to him by his coworkers. The announcement was made by United States Attorney Grant C. Jaquith and Christina Scaringi, Special Agent in Charge for HUD’s Office of Inspector General (OIG), Northeast Region.
As part of his previous guilty plea, Oravec admitted that in 2013 he created a number of letters that purported to be from medical providers at two facilities that treat cancer patients and provided those fabricated letters to his management at HUD to support his assertion that he was then under care and treatment for cancer when that was not the case. He also admitted that he applied for and was accepted into HUD’s Voluntary Leave Transfer Program (“VLTP”), which permits HUD employees with a qualifying medical condition to receive donations of annual leave from other HUD employees and use that leave to take paid time off. Oravec received leave donations from HUD employees through the VLTP and used that donated time to take paid leave, resulting in salary payments to which he was not entitled. Oravec’s scheme was discovered after a HUD supervisor in 2018 questioned a subsequent fraudulent doctor’s note in support of a request for sick leave.
This case was investigated by HUD’s Office of Inspector General (HUD-OIG) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Fitchburg Man Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Fitchburg man was indicted yesterday in federal court in Boston in connection with drug trafficking activities involving fentanyl.
Sebastian Batista, 25, was charged with one count of possession with intent to distribute more than 40 grams of fentanyl. Batista was arrested on state charges on Feb. 28, 2019, and has been in custody since. Batista will appear in federal court in Boston at a later date.
The charge of distribution of more than 40 grams of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Valuable assistance was provided by the Waltham Police Department and the Middlesex County District Attorney’s Office. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts California Man of Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Raul Everado Ledesma Abarca, 36, of San Diego, California of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, possession with intent to distribute five kilograms or more of cocaine, and maintaining a drug-involved premises. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Michael J. Adler and Jeremiah E. Lenihan, who are handling the prosecution of the case, stated that between September 2014 and September 2016, the defendant, along with co-defendant Armando Ernesto Abarca and others, conspired to possess and distribute cocaine. The defendants rented a storage unit in Amherst, NY, to store the cocaine. The unit was rented on the same day that a 104 kilogram shipment of cocaine arrived in Buffalo. A total of 43 kilograms of cocaine were discovered after the unit was purchased at an auction due to delinquent rent payments. The fingerprints of both the defendant and Armando Abarca were discovered on items in the unit.
Prior to the discovery of the cocaine in Amherst, the Abarcas were investigated for cocaine trafficking in Ohio. The Government presented evidence at trial of the seizure of 55 kilograms of cocaine in Dayton, OH, in a vehicle registered to a Buffalo, NY address. Approximately half of the 55 kilograms was intended for the defendant’s distribution operation based out of Columbus, OH.
Armando Ernesto Abarca, 22, of Modesto, California, was previously convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, and sentenced to serve 168 months in prison.
The verdict is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Internal Revenue Service, Criminal Investigations Division, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office; and the Amherst Police Department, under the direction of Chief John Askey. Additional assistance was provided by ICE-HSI in Los Angeles, California; DEA in Columbus, OH; and DEA in Dayton, OH.
Sentencing is scheduled for October 21, 2019, before U.S. District Judge Elizabeth A. Wolford, who presided over the trial.
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Federal Grand Jury Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the June 2019 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Ken Lee, Veng Xiong, Xiongkou Her, and Kosh Kash Cannady Lor- Superseding Indictment. Drug Conspiracy; Possession of Firearms in Furtherance of a Drug Trafficking Crime (2 Counts); Felon in Possession of a Firearm. Ken Lee, 24; Veng Xiong, 32; Xiongkou Her, 23; and Kosh Kash Cannady Lor, 24, all of Tulsa, are charged with conspiring to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. Lee and Her are also charged with possessing a Glock .40 caliber semi-automatic pistol and a Taurus .38 caliber special revolver in furtherance of their drug trafficking crimes. Xiong and Lor are charged with possessing a Winchester 12 gauge shotgun and associated ammunition in furtherance of their drug trafficking crimes. Xiong is further charged with being a felon in possession of a Winchester 12 gauge shotgun, a ROMARM/CUGIR 7.62x39 mm semi-automatic rifle, a Glock .40 caliber semi-automatic pistol, and a Taurus .38 caliber special revolver. The investigative agencies are the Osage Nation Tribal Police, Osage County Sheriff’s Office; FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Oklahoma Bureau of Narcotics and Dangerous Drugs, and Oklahoma Highway Patrol.
Krishna Parchuri, Christopher Parks, Gary Lee, and Jerry Keepers- Superseding Indictment. Conspiracy to Offer and Pay, and Solicit and Receive Health Care Kickbacks; Conspiring to Commit Health Care Fraud; Soliciting and Receiving Health Care Kickbacks; Obstruction of Criminal Investigations of Health Care Offense. Parchuri, 44, of Tulsa, Parks, 57, of Tulsa, Lee, 58, of Tulsa, and Keepers, 65, of Kingwood, Texas, are charged with conspiring to offer and pay, and solicit and receive health care kickbacks; and conspiring 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 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.
Ellwood City Man Convicted on Federal Drug ChargesRead the Press Release
PITTSBURGH, PA - After deliberating for two hours, a federal jury of seven men and five women found Taurean Potter guilty of one count of Conspiracy to Distribute Cocaine and one count of Distribution of Cocaine, United States Attorney Scott W. Brady announced today.
Potter, age 33, of Ellwood City, Pennsylvania was tried before United States District Judge Arthur J. Schwab in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Brendan T. Conway and Yvonne Saadi, who prosecuted the case, the evidence presented at trial established that Potter sold cocaine out of Ellwood City bars in 2017 and 2018, and he sold cocaine to other cocaine dealers who would further distribute the cocaine. In addition, on October 14, 2017, Potter sold cocaine to an undercover narcotics agents with the Pennsylvania Attorney General’s Office.
Judge Schwab scheduled sentencing for October 31, 2019. The law provides for a total sentence of sixty years in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Pennsylvania Attorney General’s Office, in conjunctions with the Drug Enforcement Administration and the Lawrence County Drug Task Force, conducted the investigation that led to the prosecution of Potter.
Downstate Man Pleads Guilty for His Role in Identity Theft ScamRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Wright, 56, of New York, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiracy to commit wire fraud and aggravated identity theft. The charges carry a minimum penalty of two years in prison, a maximum of 22 years, and a $500,000 fine.
Assistant U.S. Attorneys Jonathan P. Cantil and Stephanie Lamarque, who are handling the case, stated that December 2016 and September 2018, the defendant conspired with Jeriel Slay, Angela Slay, Sirr Wright, and others to defraud multiple victims. As a part of their scheme, Jeriel and Angela Slay, who are siblings, stole the identities of unsuspecting individuals and created fictitious Limited Liability Companies (LLCs), with company names indicating ownership by the victims. The defendants then opened bank accounts under the names of the LLCs and fraudulently transferred money from a victim’s actual bank account to the LLC bank account.
For example, Jeriel Slay fraudulently obtained Victim 1’s name, address, birthdate, social security number, and other information, and then opened an LLC, and a bank account in the name of the fraudulent LLC. Jeriel Slay then contacted Victim 1’s legitimate financial institution and transferred money from Victim 1’s legitimate account via wire transfer to the fraudulent LLC bank account. Jeriel Slay, using device-making equipment, then created fraudulent driver’s licenses, fraudulent utility bills, and other identification documents in the name of Victim 1. The fraudulent driver’s license had Victim 1’s information but Michael Wright’s, image on the card. Using these fraudulent identification documents, Wright went to the bank that serviced the fraudulent LLC bank account and withdrew the funds from that fraudulent account. Wright executed this scheme against approximately 10 victims, one of whom resides in the Western District of New York. The financial loss totaled $161,100.
Charges remain pending against co-defendants Jeriel Slay, Angela Slay, and Sirr Wright. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for October 10, 2019, at 12:30 p.m. before Judge Arcara.
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Dominican National Pleads Guilty to Illegal Reentry, Money LaunderingRead the Press Release
BOSTON - A Dominican national pleaded guilty yesterday in federal court in Boston to illegally reentering the United States after being deported and participating in a money laundering conspiracy that laundered or attempted to launder between $150,000 and $250,000 worth of drug sales proceeds.
Rafael Pascal, 55, pleaded guilty to illegal reentry of a deported alien and money laundering conspiracy. U.S. District Court Judge F. Dennis Saylor, IV, scheduled sentencing for Sept. 10, 2019.
According to court records, Pascal was deported on Jan. 5, 2002, subsequently reentered the United States, and was convicted of illegally reentering the country in 2012. In 2013, Pascal was again deported to the Dominican Republic, and sometime thereafter, again illegally entered the United States. On May 6, 2018, Pascal was arrested in Wakefield on state drug charges.
From approximately March 1, 2017, through at least July 2017, Pascal participated in a conspiracy to launder money obtained from the sale of controlled substances. Pascal admitted that he picked up cash proceeds from drug sales from various individuals and then delivered the money to individuals who were responsible for laundering the money. Pascal picked up and delivered varying quantities of cash, including, on one occasion, $59,060, which he delivered to an undercover law enforcement officer. Pascal stipulated that during the time that he participated in the conspiracy, he and his coconspirators laundered or attempted to launder between $150,000 and $250,000 in drug proceeds.
The charge of illegal reentry after deportation provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000. Pascal will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Marcos D. Charles, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police made the announcement today. The Boston Organized Crimes Drug Enforcement Task Force (OCDETF) and the Wakefield, Arlington, Ipswich, Somerville and Boston Police Departments assisted with the investigation. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Dominican National Indicted on Fentanyl, Heroin, Identity Theft ChargesRead the Press Release
BOSTON – A Dominican national was indicted today in federal court in Worcester on drug and identity theft charges.
Jonathan Francisco Bobadilla Rosa, 30, a Dominican national residing in Worcester, was indicted on possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl, false representation of a Social Security number and aggravated identity theft.
According to court documents, on Dec. 14, 2018, law enforcement seized approximately 138 grams of a substance containing both heroin and fentanyl from a backpack carried by Bobadilla Rosa. In addition, on Feb. 14, 2018, Bobadilla Rosa falsely represented that the Social Security number of another person belonged to him in an application for a Massachusetts identification card from the Massachusetts Registry of Motor Vehicles.
The charge of possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. The charge of false representation of a Social Security number carries a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of aggravated identity theft carries a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, three years of supervised release, and a fine of $250,000. Bobadilla Rosa will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. Valuable assistance was provided by the Massachusetts Attorney General’s Office and the Massachusetts State Police. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor sentenced to prison for prescribing narcotics to non-patientsRead the Press Release
SAVANNAH, Ga: A physician with clinics in Pooler, Ga., and Braselton, Ga., was sentenced to nearly three years in federal prison for illegally prescribing drugs to non-patients.
Dr. Johnny Di Blasi, 46, of Braselton, Ga., was sentenced to 33 months in prison after pleading guilty to Conspiracy to Unlawfully Dispense Controlled Substances (Oxycodone), said Bobby L. Christine, United States Attorney for the Southern District of Georgia.
Di Blasi had been in custody since Christmas Eve, when he was arrested at Miami International Airport by agents from the U.S. Drug Enforcement Administration as he waited to board a flight to Medellin, Colombia, in an attempt to flee prosecution.
As described in court filings and in court proceedings, Di Blasi, known as “Dr. Johnny,” admitted writing prescriptions for narcotics, including opioids and amphetamines, to non-patients – many of whom he never met. Di Blasi wrote the prescriptions through clinics he operated in Pooler, Ga., and Braselton, Ga., to individuals traveling from at least 11 states. In addition, Di Blasi also provided and sold prescriptions for opioid pain medications and amphetamines to non-patients he met in restaurants and bars. One of those receiving prescriptions was an individual who was in prison at the time the prescription was written.
Di Blasi’s illegal practices took place for more than a year, with the DEA initiating a formal investigation in March 2018.
“Unscrupulous, profiteering medical professionals not only abuse their trust as health care providers, but feed the illicit pipeline of drugs that fuel the opioid crisis in our communities,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “As the arrest and prosecution of Di Blasi demonstrates, we and our law enforcement partners will be relentless in removing dangerous drug distributors from our neighborhoods, whether they are street-corner dealers or professionals who disgrace their lab coats.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said, “It is sad commentary when medical professionals like Dr. Di Blasi use their position of trust to hide behind the veil of legitimacy to commit criminal acts. The reckless distribution of pharmaceuticals results in addiction and death, and this doctor can no longer do harm to drug-seeking customers. Many thanks to the hard-working law enforcement partners who made this case a success.”
“Dr. Di Blasi flagrantly violated his oath to do no harm, opting instead to line his pockets by illegally prescribing drugs,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners, we will continue fighting those seeking to defraud government health programs.”
Said Chatham-Savannah Counter Narcotics Team Director Everett Ragan, “There are a lot of good doctors who take their medical oath seriously. Sadly, Dr. Di Blasi opted to go against his, which in turn continues furthering the opioid crisis. His arrest is a prime example that we will seek all drug dealers no matter if they wear a white coat or what their day job or title is.”
The case was investigated by the Drug Enforcement Administration (DEA), the Office of Inspector General of the U.S. Department of Health and Human Services, and the Chatham-Savannah Counter Narcotics Team (CNT), with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Matthew Josephson and J. Thomas Clarkson prosecuted the case for the United States.
District Woman Found Guilty of Aggravated Assault While Armed for Slashing Victim’s Face at Bus StopRead the Press Release
WASHINGTON – Camille Covington, 34, of Washington, D.C., was found guilty by a jury yesterday of aggravated assault while armed after violently attacking a woman at a bus stop in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Covington was found guilty on June 11, 2019, following a trial in the Superior Court of the District before the Honorable Ronna L. Beck. Covington was convicted of aggravated assault while armed and assault with a dangerous weapon. The Honorable Judge L. Beck scheduled sentencing for August 16, 2019, and Covington will be detained in jail pending the sentencing date.
According to the government’s evidence at trial, on October 31, 2016, the victim first encountered Covington near Truesdell Elementary School. Both women’s children attend the school. The victim was headed to a bus stop located at the intersection of 9th and Kennedy Street NW to catch a bus to her English-language classes, when Covington forcefully bumped into the victim on the sidewalk. Minutes later, Covington violently attacked the victim while she stood at the bus stop, slashing her face and neck with a knife. The victim lost a significant amount of blood, and has permanent injuries to her face. During the assault, Covington yelled several times: “I don’t like Hispanic Women.” The victim is a Hispanic woman. The jury found that Covington’s aggravated assault on the victim was not a “biased-related” crime.
When a passerby saw Covington attacking the victim and tried to intervene, Covington threatened him with a knife. The jury convicted Covington of assault with a dangerous weapon for that assault.
In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from the Washington Metropolitan Area Transit Authority Police Department. She also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Litigation Technology Specialist William Henderson; Victim/Witness Service Coordinator Katina Adams-Washington; interns Ashley Young, Holly Tripp, and Elliott Riches; Assistant U.S. Attorneys Gregory Rosen and Ethan Carroll for investigating the case; and Assistant U.S. Attorneys Nicole McClain and Janani Iyengar for prosecuting the case at trial.
District Man Sentenced to 16 Years in Prison for Being the Leader of a Large-Scale Narcotics ConspiracyRead the Press Release
WASHINGTON – Anthony Fields, 45, of Washington, D.C., was sentenced today to 16 years in prison stemming from his leadership role in a large-scale narcotics conspiracy, announced U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Fields, Abdul Samuels, 45, of Washington, D.C., and Lonnell Tucker, 42, of Temple Hills, Md., were found guilty on March 21, 2019, following a trial in the U.S. District Court for the District of Columbia before the Honorable Amit P. Mehta. Fields was convicted of engaging in a conspiracy to distribute and possess with intent to distribute heroin, phencyclidine (pcp), fentanyl, suboxone, marijuana, and synthetic cannabinoids, in various amounts, and maintaining a residence for drug trafficking purposes. Judge Mehta sentenced Fields to a prison term of 16 years. Following his prison term, Fields will be placed on eight years of supervised release.
In June 2017, ATF began investigating the trafficking of narcotics from the Next Level Cuts barbershop located in the 2400 block of MLK, Jr., Avenue, SE and adjoining property above. Through surveillance, controlled purchases from inside and outside the barbershop, residential search warrants, cellphone searches, arrests, jailhouse calls, pleas, and cooperating witnesses, law enforcement discovered a coordinated drug trafficking operation that was centered at the barbershop and extended into Maryland. The investigation established that drug traffickers used the barbershop and adjoining property as a stash location.
The investigation led to a series of arrests beginning in February 2018 which led to the recovery of three firearms from the barbershop and one firearm in a residence, the seizure of more than $7,000 in cash, and without packaging, the seizure of more than 300 grams of PCP, more than 150 grams of heroin, more than 100 grams of fentanyl, boxes of suboxone strips, and more than 100 grams of a cutting agents. In addition to being convicted of conspiring to distribute narcotics, Fields was convicted of possessing 100 grams or more of PCP and 100 grams or more of heroin and using the residence above the barbershop as a location to traffic narcotics.
During the trial, officers from the Prince George’s County Police Department and the Maryland Office of the State Prosecutor testified regarding a separate arrest of Fields in 2017 in Maryland, in which cutting agents, false bottom containers, and over $7,000 in U.S. currency were recovered from a vehicle that Fields was operating after law enforcement observed him purchasing items from a location that was well known for the selling of drug paraphernalia.
During the sentencing, Judge Mehta found that Fields obstructed justice during the course of the Government’s investigation.
The Defendant was previously convicted of assault with intent to kill while armed in D.C. Superior Court in 2002, following the shooting of a victim on a public street and was on supervised release for that offense with the U.S. Parole Commission at the time the present conspiracy took place. The Defendant also has additional firearms and drug trafficking convictions from separate cases.
Samuels and Tucker have yet to be sentenced for their roles in the drug trafficking conspiracy. Three other defendants – Darryl Smith, 41, of Washington, D.C., James Venable, 47, of Fort Washington, Md., and Lacy Hamilton, 42, of Suitland, Md. – pled guilty earlier to federal charges. Another defendant remains at large as a fugitive. Smith managed the barbershop and was sentenced to 80 months in prison relating to his possession of narcotics in the barbershop on February 1, 2018, and for his possession of packaged fentanyl and a loaded firearm following an arrest by MPD in December 2017 outside of the barbershop. Venable, another conspirator, was sentenced to a 37-month prison term following his possession of narcotics and a firearm in both Washington, D.C. during a December 2017 arrest by MPD and at his residence in Maryland on February 1, 2018. Venable also acknowledged selling narcotics to an ATF confidential informant in July 2017. Hamilton was sentenced to a 15-month prison term for selling narcotics outside the barbershop and in Maryland as part of the charged narcotics conspiracy.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the assistance provided by officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, and the Maryland Office of the State Prosecutor. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Christopher Macchiaroli and Gregory Rosen of the Violent Crime and Narcotics Trafficking Section, and Paralegal Specialist Candace Battle.
Detroit Man Pleads Guilty to Heroin DistributionRead the Press Release
CHARLESTON, W.Va. – A man from Detroit, Michigan, pled guilty to a federal drug trafficking charge, announced United States Attorney Mike Stuart. Eddie Riago-Javone Bryant, 27, pled guilty to possession with intent to distribute heroin before Senior United States District Judge John T. Copenhaver, Jr. Stuart commended the investigation conducted by the Metropolitan Drug Enforcement Network Team (MDENT), the Charleston Police Department, the West Virginia State Police, and the Drug Enforcement Administration.
“Another Detroit drug dealer is convicted,” said United States Attorney Mike Stuart. “They are not welcome in the Southern District of West Virginia.”
According to public court hearings and Bryant’s plea agreement, Bryant sold drugs to a police undercover confidential informant in Charleston and Cross Lanes, West Virginia, on February 8, 2018; February 12, 2018; and February 14, 2018. Bryant sold drug mixtures containing heroin, fentanyl, and phencyclidine (PCP). On February 15, 2018, investigators arrested Bryant at the Cross Lanes Motel 6 and found that he was carrying around 30 grams of a heroin mixture, $688 in drug proceeds, and a digital scale.
After Bryant’s release from jail, he again sold a mixture of heroin and fentanyl to a confidential informant on April 18, 2018, in Charleston. Investigators arrested Bryant and executed a search warrant at his apartment on West Washington Street. They recovered approximately 12 grams of a heroin and fentanyl mixture and found a .22 caliber revolver hidden in a cereal box in the kitchen cabinets.
Bryant faces up to 20 years in federal prison when he is sentenced on September 10, 2019. Assistant United States Attorneys Drew O. Inman and Joshua C. Hanks are handling the prosecution.
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Denver Man Sentenced to Federal Prison for Collecting Child PornographyRead the Press Release
DENVER – Edward Lewis, age 28, of Denver, was sentenced yesterday to serve 72 months (6 years) in federal prison, followed by 15 years on supervised release for possession of child pornography, announced U.S. Attorney Jason Dunn and FBI Denver Field Office Special Agent in Charge Dean Phillips. Lewis was also ordered to pay $21,000 restitution to the victims depicted in the images he possessed.
The sentence was handed down by U.S. District Court Judge William J. Martinez. Defendant Lewis, who appeared at the sentencing hearing on bond, was remanded by Judge Martinez at the hearing’s conclusion. He will serve his prison time at a location to be determined by the U.S. Bureau of Prisons.
Lewis was first charged by indictment on April 4, 2018. He pled guilty to possession of child pornography on October 2, 2018. He was sentenced yesterday, June 12, 2019. Agents believed he had well over 200,000 images and videos of child pornography and child erotica.
According to the stipulated facts contained in the plea agreement, Lewis used a peer-to-peer file sharing network called Torrent. From August 8, 2017 through September 5, 2017, an FBI special agent working in an undercover capacity signed on to the Torrent network and downloaded child pornography from Lewis’s IP address that he made available for sharing. Lewis admitted he downloaded most of his child pornography collection from a service that he paid for. He said he had been collecting child pornography for at least three years and had downloaded more videos and images than he could review.
“One image is bad enough, but 200,000 is simply unfathomable,” said U.S. Attorney Jason Dunn. “We will continue to do our part here in Colorado to vigorously attack what is truly an international problem.”
“The recent sentencing of Edward Lewis represents the FBI’s commitment to protect our most vulnerable citizens, our children,” said FBI Denver Special Agent in Charge Dean Phillips. “The FBI’s Innocent Images Task Force will continue to work diligently with the United States Attorney’s Office to investigate and prosecute cases involving the sexual exploitation of children.”
This case was investigated by the FBI. The defendant was prosecuted by Assistant U.S. Attorney Valeria Spencer.
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 U.S. Attorneys’ Offices and Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cranston Resident Admits to Possessing Child PornographyRead the Press Release
PROVIDENCE – A Cranston man is facing a recommended term of incarceration of 42 months in federal prison when he is sentenced in September, after admitting to a federal court judge on Wednesday that he had been in possession of over 40,000 images and 800 videos of child pornography.
According to information presented in court, in January 2018, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force observed an IP address sharing files of suspected child pornography. Law enforcement connected the IP address to Steven Papazian, 32, of Cranston.
On February 8, 2018, members of the ICAC Task Force executed a court-authorized search of Papazian’s residence and seized a computer and multiple digital storage devices. A forensic audit of the computer identified over 40,000 images and 800 videos of child pornography, including several previously identified victims.
Papazian’s guilty plea on Wednesday to possession of child pornography is announced by United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
Papazian is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 26, 2019. An agreed upon plea agreement filed in this matter recommends the court impose a sentenced of 42 months in federal prison.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the ICAC Task Force, with the assistance of Homeland Security Investigations.
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Cranston Man Facing 10 Years to Life in Prison for Enticing Minors OnlineRead the Press Release
PROVIDENCE – Paul J. Stabile, 39, of Cranston, faces 10 years to life in federal prison when he is sentenced in September, having pleaded guilty on Wednesday to one count of enticement of a minor to engage in sexual activity and one count of possession of child pornography, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
According to information presented in Court, between October 2017 and December 2017, Stabile used an online persona “Cindi Mennillo” to pretend to be a 16 year-old old girl from Newport, R.I. Using the online persona, Stabile persuaded numerous young boys between the ages of 13-15 to engage in explicit sexual activity in live stream videos over Facebook Messenger and Skype.
The investigation began when the mother of a 14 year old boy in Nevada reported to the FBI that her son was the victim of an online enticement. The investigation uncovered chats between Stabile, pretending to be a 16 year-old girl, and the minor victim. Stabile directed the minor victim to send back live video streams of himself masturbating. As part of the effort to deceive the minor victim, Stabile falsely claimed technical difficulties were preventing “Cindi” from reciprocating with live video. Instead Stabile sent the Minor Victim images, both pornographic and non-pornographic, of an athletic young female purported to be “Cindi.”
In November 2018, a federal court authorized search warrant was executed at Stabile’s Cranston residence by law enforcement. Several computers and other media devices seized were found to contain child pornography, including videos of dozens of young teenage boys performing a sex act in a similar manner to the Nevada-based minor victim. Also found were the images sent by “Cindi” to the minor victim.
Stabile admitted to law enforcement that he used the “Cindi Mennillo” online persona to communicate with minors as young as 14, sent them sexually explicit and pornographic images, and persuaded them to livestream video of themselves engaged in explicit sexual activity, which he recorded.
At sentencing on September 26, 2019, Stabile faces a statutory mandated minimum prison sentence of 10 years, up to life in federal prison.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The case was investigated by the FBI with assistance from members of the Rhode Island State Police Internet Crimes Against Children Task Force, the Warwick and Cranston Police Departments, and the Washoe County, Nevada Sherriff’s Department.
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Citizen of the Dominican Republic Guilty for Role in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal jury in Bridgeport has found AMAURY VLADIMIR REYES-BATISTA, 43, a citizen of the Dominican Republic residing in New Britain, guilty of multiple charges related to his involvement in a stolen identity tax refund fraud scheme. The trial before U.S. District Judge Stefan R. Underhill began on June 10 and the jury returned its verdict late yesterday.
According to court documents, statements made in court and the evidence introduced during the trial, this matter stems from an investigation into individuals who, through various means, obtained fraudulent U.S. Treasury tax refund checks using stolen identities. The investigation revealed that Reyes-Batista and an associate obtained, on the black market, federal tax refund checks that were fraudulently obtained in the names of other persons. Reyes-Batista then deposited the checks into a bank account controlled by his associate. In January 2012, Reyes-Batista deposited 21 refund checks totaling approximately $124,000 at TD Bank branches in New Britain, Berlin and Southington.
Reyes-Batista was arrested on February 3, 2015. At the time of his arrest, he provided a false name, date and place of birth, and Social Security Number to law enforcement. The identifying information Reyes-Batista provided belonged to an individual living in Puerto Rico.
The jury found Reyes-Batista guilty of one count of conspiracy to commit theft of public money, which carries a maximum term of imprisonment of five years; eight counts of theft of public money, which carries a maximum term of imprisonment of 10 years on each count, and one count of making false statements to law enforcement, which carries a maximum term of imprisonment of five years. Reyes-Batista was found not guilty of 13 additional counts of theft of public money.
Judge Underhill scheduled sentencing for September 4, 2019.
Reyes-Batista was detained from the date of his arrest until April 19, 2018, when he was released on a $100,000 bond.
The investigation revealed that Reyes-Batista was removed to the Dominican Republic in 1996 after sustaining a conviction in New York state court for attempted heroin distribution. He illegally returned to the U.S. in 1999.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Hal Chen.
Chandler Man Imprisoned FOR SMUGGLING AND SELLING VIETNAMESE CIGARETTESRead the Press Release
PHOENIX –On June 10, 2019, Vien Tang, 49, of Chandler, AZ, was sentenced by U.S. District Judge David G. Campbell to 8 months in prison for Unlawful Importation of Tobacco.
From 2014 through May 2018, Tang and his then-wife, Lien Tang, 47, had Vietnamese cigarettes shipped from Vietnam to their home in Chandler. Approximately 8,000 cartons of cigarettes, which were concealed in packages designed to look like wrapped gifts, were delivered to the Tang home during the scheme. On a daily basis, Tang sold the smuggled cigarettes for cash out of the back of vehicles in parking lots of businesses in Mesa and Chandler. Tang frequently traveled to Vietnam to arrange for the cigarette shipments, and in his absence, Lien Tang handled daily sales.
Lien Tang previously pleaded guilty to the same charge and was sentenced to three years’ probation. The Tangs were ordered to pay more than $275,000 in restitution.
The investigation was conducted by the U.S. Postal Inspection Service, the Department of Homeland Security-Criminal Investigations, and the Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau. The prosecution was handled by Monica B. Edelstein, Assistant U.S. Attorney, District of Arizona, Phoenix.
Cedar Rapids Man Who Sold Heroin Near a School Sentenced to PrisonRead the Press Release
A Cedar Rapids man who sold heroin near an intermediate school in Cedar Rapids was sentenced today to 41 months in prison.
Andre Daniel Wilks, age 45, from Cedar Rapids, Iowa, received the prison sentence after a November 19, 2018 guilty plea to distribution of a controlled substance within 1,000 feet of a school.
Information disclosed at sentencing and at his plea hearing showed that Wilks was sentenced to federal prison in 2002 for his involvement in an offense involving over 3,000 grams of cocaine. Wilks was discharged from his federal sentence in 2015. In mid-2016 Wilks started selling heroin. On March 30, 2017, Wilks sold heroin within 1,000 feet of a school in Cedar Rapids. In total, Wilks was responsible for selling about 95 grams of heroin around the Cedar Rapids area. Wilks has 24 prior criminal convictions dating back to the age of 18.
Wilks was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wilks was sentenced to 41 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Drug Enforcement Agency and the Cedar Rapids Police Department’s Narcotics and uniform division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00084.
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Cazenovia Man Pleads Guilty to Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – Naven Conley, age 75, of Cazenovia, New York, pled guilty today to three counts of sexual exploitation of a child, announced United States Attorney Grant C. Jaquith, Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and New York State Police Acting Superintendent Keith Corlett.
In entering his guilty plea today in United States District Court, Conley admitted that on three separate occasions he engaged in sexually explicit conduct with a minor under seven years of age and produced video recordings of that conduct over the course of three years.
As part of his guilty plea, Conley admitted that from 2016 through 2018 he used a cellular telephone to record sex acts that he engaged in with a child who was under the age of seven. In addition, to that conduct, Conley also admitted that he possessed 21 images and 15 video files depicting child pornography that he received over the internet. Conley further admitted that he showed those images and videos to the child victim as part of his efforts to convince the child to engage in sex acts with him.
United States Chief District Judge Glenn T. Suddaby will sentence Conley on October 23, 2019. He faces a mandatory minimum term of 15 years imprisonment on each count, with a maximum penalty of 30 years imprisonment per count. He will be required to serve a term of supervised release of a minimum of 5 years, and up to life, following his term of imprisonment. Conley will also be required to register as a sex offender.
Conley’s case was investigated by U.S. Homeland Security Investigations (HSI) and the New York State Police, Troop D, Computer Crimes Unit. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown
Carlos E. Reyes-Rosado, a.k.a. “Farruko” Sentenced to Probation for Bulk Cash Smuggling into the United StatesRead the Press Release
SAN JUAN, Puerto Rico – Carlos E. Reyes-Rosado, a.k.a. “Farruko” was sentenced by United States Chief Judge Gustavo A. Gelpí to three years’ probation, and ordered to forfeit $41,802.00, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Reyes-Rosado entered a straight plea on the two counts of the indictment on March 7, 2019.
On April 4, 2018, Reyes-Rosado was arrested for failure to declare the transportation of monetary instruments in excess of $10,000, and bulk cash smuggling into the United States. According to the indictment, on April 2, 2018, the defendant arrived at the Fernando Luis Ribas Dominicci Airport in San Juan from the Dominican Republic. The defendant completed a Customs Declaration (CBP Form 6059B) in which he declared he was not carrying currency or monetary instruments over $10,000.
During inspection, Customs and Border Protection (CBP) Officers, with a service canine, alerted positive on two suitcases to narcotics. Reyes-Rosado claimed ownership of both suitcases and the officers proceeded with further inspection. The CBP officers asked the defendant if he was carrying more than $10,000 and he said he was carrying bout $7,000, although he was not sure. Further inspection revealed currency concealed under the insoles of shoes inside the suitcases for a total of $51,802.
Based on the facts concerning the case, Reyes-Rosado was charged with intent to evade a currency reporting requirement under Title 31, United States Code, Section 5316, by knowingly concealing more than $10,000 in currency in a conveyance, article of luggage, merchandise, or other container, and transporting such currency from the Dominican Republic into Puerto Rico.
The case was prosecuted by Assistant U.S. Attorney María L. Montañez-Concepción. The investigation was conducted by the Department of Homeland Security, Immigration and Customs Enforcement, and Customs and Border Protection.
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Canton man charged with using firearm to traffic heroin, fentanyl, methamphetamine and crack cocaineRead the Press Release
A seven-count indictment was unsealed charging a Canton man with using a firearm to traffic heroin, fentanyl, methamphetamine and crack cocaine.
Jack Dale Mitchell, 43, was indicted on two counts of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute fentanyl, one count of possession with intent to distribute heroin, one count of possession with intent to distribute crack cocaine and one count of possession of a firearm in furtherance of drug trafficking.
Mitchell possessed the aforementioned drugs on February 12, as well as a Ruger 9 mm pistol, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being investigated by the Federal Bureau of Investigation, Canton Police Department, Canton Police Department Special Investigations Unit and the Stark County Metro Narcotics Unit, which includes the Stark County Sheriff’s Office, Jackson Township Police Department and Canton Police Department. It is being prosecuted by Assistant U.S. Attorney Aaron P. Howell.
Bureau of Prisons “Ready to Work” Initiative Seeks New Business Partnerships to Strengthen Reentry Success and Address National Hiring ChallengesRead the Press Release
Today, the Bureau of Prisons (BOP) announced a new initiative to work directly with interested employers seeking to hire newly-released inmates. Through the “Ready to Work” initiative, the BOP seeks to connect employers directly to inmates to improve reentry outcomes. This initiative is part of the BOP’s holistic approach to implementation of the First Step Act, which was enacted in December 2018 and seeks to reduce recidivism among federal offenders.
“The Justice Department is committed to fully implementing the First Step Act,” said Attorney General William P. Barr. “This includes helping offenders successfully reintegrate into the community – a critical factor in preventing recidivism and, in turn, reducing the number of crime victims. Finding gainful employment is an important part of that process.”
The “Ready to Work” initiative aims to secure every offender reentering his or her community an opportunity to quickly secure employment. This includes the approximately 2,200 inmates scheduled for early release due to good conduct on July 19, 2019, after changes in the First Step Act become effective.
The BOP has long recognized that inmates benefit from a variety of self-improvement programs. Federal inmates participate in vocational training, educational classes, and skills groups – all of which contribute to employment readiness and helps to develop high-quality employees. At the same time, businesses are struggling to find qualified employees due to historically low unemployment rates.
“Newly-released individuals can provide an untapped source of qualified employees for businesses having difficulty hiring during this strong economy,” said Acting BOP Director Hugh Hurwitz. “The BOP is working to strengthen existing, and build new, partnerships with businesses across the country to ensure that inmates have solid employment opportunities upon release.”
Every day, the BOP releases hundreds of individuals into communities throughout the country, and employment plays a critical role in successful reentry and recidivism reduction. Studies have shown that individuals released from incarceration who found prompt employment were less likely to recidivate.
Prior to release, many individuals will have utilized BOP occupational training programs that produce skilled workers in a variety of professional fields, such as HVAC (heating, ventilation and air condition) systems, plumbing, masonry, aquiculture, computers and technology, carpentry, cosmetology, medical billing and food preparation, among other fields. But even those who do not qualify as skilled workers will have participated in BOP’s educational classes and self-improvement programming designed to improve community reintegration and contributes to employment success.
To learn more about the BOP’s “Ready to Work” initiative, including BOP’s employment readiness programs, or to begin working with the BOP to hire newly-released individuals, employers may contact BOP’s Reentry Services Division (email: BOP-RSD/[email protected]). Additional information about the BOP can be found at www.bop.gov.
Boston Man Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Boston man was indicted yesterday in federal court in Boston in connection with trafficking fentanyl.
Anthony Smallwood, 28, was indicted on two counts of distribution of, and possession with intent to distribute, fentanyl, and three counts of distribution of, and possession with intent to distribute, more than 40 grams of fentanyl. On May 22, 2019, Smallwood was arrested and charged by criminal complaint. He has been in custody since.
According to court records, between March and May 2019, Smallwood engaged in five separate drug sales of fentanyl to a confidential informant.
The charges of distribution of, and possession with intent to distribute, fentanyl each provide for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a fine of up to $1 million; the charges involving more than 40 grams of fentanyl carry a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. This case was investigated by the FBI’s Organized Crime Drug Enforcement Task Force Strike Force with valuable assistance from the Boston Police Department and the Suffolk County Sheriff’s Office. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Armed Drug Trafficker Pleads GuiltyRead 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 Demetrius Jackson, 43, of Rochester, NY, pleaded guilty today before U.S. District Judge Charles J. Siragusa to possession with intent to distribute cocaine, and possession of a firearm and ammunition by a convicted felon. The charges carry a maximum penalty of 20 years in prison, and a fine of $1,000,000.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that Jackson was arrested after police officers served a court-authorized search warrant at his residence on Wadsworth Street in Rochester, and found controlled substances and a loaded firearm.
While searching the location, police officers found a green container with 10 small zip-lock bags of cocaine in a bedroom which Jackson later admitted belonged to him. In the same bedroom, secreted in a crawl space, officers found a Taurus .45 caliber semiautomatic handgun which was loaded with 11 rounds of ammunition. In the living room, officers found a black container with additional quantities of cocaine, heroin and marijuana. A digital scale, typically used to weigh drugs for distribution, was located on a kitchen counter.
Jackson spoke with officers after he was arrested and admitted he was selling cocaine through a window in the residence. He said he had been selling cocaine for several weeks to earn money and acquired the handgun by exchanging cocaine for it.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for October 1, 2019, at 10:00 a.m. before Judge Siragusa.
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Akron man guilty of leading conspiracy to bring fentanyl and carfentanil into the U.S. from China, sell the drugs in Akron and Lorain, then launder the profitsRead the Press Release
An Akron man pleaded guilty to leading a conspiracy to bring large amounts of fentanyl and carfentanil into the United States from China, then sell the drugs in Akron and Lorain, then launder the profits.
Donte L. Gibson, 40, is scheduled to be sentenced September 23. He pleaded guilty to conspiracy to possess with intent to distribute fentanyl and carfentanil and conspiracy to launder money.
This took place between May 2016 and February 2018, according to court documents.
Donte and Audrey Gibson purchased fentanyl and carfentanil from China over the internet, and had the drugs shipped to locations in the Akron-Canton area through the U.S. Postal Service. They directed others to open post office boxes throughout the area, and Audrey Gibson retained control of all the post office box keys, according to court documents.
Co-conspirators picked up the packages containing fentanyl and carfentanil at the P.O. boxes and brought the packages to the Gibsons’ home on Popham Street. Donte Gibson cut the drugs with other white powder, turning 70 or 80 grams of pure fentanyl or carfentanil into seven kilograms of saleable product, according to court documents.
The Gibsons then distributed the drugs to others for sale in Akron and Lorain. The Gibsons used various residences and storage units to store the drugs and cash. They stored the drugs at their home on Popham Street, according to court documents.
Audrey Gibson in 2015 formed JayT AllServices LLC, which purported to be in the business of remodeling, painting homes and cleaning out homes. Donte Gibson later stated that he was an employee of the his wife’s company and that he helps do home improvement work, according to court documents.
In 2016, Audrey Gibson formed Pound Cake Entertainment LLC, which used the web site IAmPoundCake.com. The web site purported to sell clothing and “one of a kind items” as well as offering access to a members-only Snapchat account featuring Audrey Gibson “being flirty or nasty depending on the day,” according to court documents.
In 2017, Dontaysha Gibson formed G’s Car Care and Detail LLC, with the stated purpose of the company being car care sales and detailing. Donte Gibson later stated it was his daughter’s company but that he managed it for her, according to court documents.
The Gibsons opened bank accounts in connection to all three companies, according to court documents.
Audrey Gibson in 2017 opened a Saks Fifth Avenue Store Card and between April and December 2017 made payments on her card totaling $208,504 by using cash in store in Beachwood. She made purchases from Saks Fifth Avenue totaling $686,850 between July 2016 and February 2018 and paid for them with a combination of cash, credit cards and her Saks card. The purchases included handbags from Burberry, Chanel and Gucci, various Louis Vuitton items, Saint Laurent shoes, as well as cosmetics, fragrances and sunglasses, according to court documents.
Prosecutors are seeking to forfeit more than $280,000 in cash, two firearms and ammunition seized as part of the investigation, as well as the home at 2946 Popham Street in Akron.
Audrey Gibson previously pleaded guilty to related crimes and is awaiting sentencing.
“This defendant brought huge quantities of deadly fentanyl and carfentanil into Akron, threatening the lives of so many of our neighbors, friends, and family,” U.S. Attorney Justin Herdman said. “They set up fake companies to launder their dirty drug money and now will have to answer for his crimes”
“This case demonstrates the lengths drug dealers will go to in order to obtain deadly drugs to feed the addiction of their customers,” said FBI Special Agent in Charge Eric B. Smith. “This group flaunted their lucrative drug trafficking organization proceeds by purchasing homes, cars and other items in an attempt to hide their cash. The FBI will continue working with our law enforcement partners to help rid our communities of the individuals that bring poison to our streets.”
“The harm inflicted by opioids is matched only by the profit potential for those who sell them,” said William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "This is an important victory for the citizens of Northern Ohio. These defendants not only fueled the opioid drug problem in Northern Ohio, but they supported addiction in several parts of the country. IRS-CI worked with the U.S. Attorney’s Office and its law enforcement partners to disrupt the flow of money -- the lifeblood that allows these organizations to proliferate. The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations.”
“Fentanyl and carfentanil are by far the deadliest illegal drugs that we are up against in the law enforcement community,” said HSI Acting Special Agent in Charge Angie Salazar. “As this indictment clearly demonstrates, HSI is fully committed to bringing to justice all of the criminal groups and individuals who distribute this lethal poison in our community.”
Akron Police Chief Kenneth Ball said: “I feel a strong sense of relief knowing that a group of criminals that had a major role in the city's battle against drugs, and the companion, devastating effects of addiction, will be held accountable. I am proud of the work of Akron's team and our partners with the Safe Streets Task Force. Gibson and his conspirators have been justly charged, they now need to be justly tried and sentenced.”
This case was investigated by the FBI’s Safe Streets Task Force -- which is comprised of agents and officers from the Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service, Internal Revenue Service and the Akron Police Department. It is being prosecuted by Assistant U.S. Attorney Mark S. Bennett.
10 Year Prison Term for Receipt of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Michael Leavitt, age 54 of Warden, Washington, was sentenced today after having pleaded guilty on March 14, 2019, to receipt of child pornography. Chief United States District Judge Thomas O. Rice sentenced Leavitt to a 10-year term of imprisonment, to be followed by a 10-year term of court supervision after he is released from federal prison. Chief Judge Rice imposed restitution in the amount of $3,000 for one of the child pornography victims whose picture Leavitt had in his collection. Chief Judge Rice also required Leavitt to register as a sex offender upon completion of his prison sentence.
According to information disclosed during court proceedings, Leavitt received over 600 images of child pornography via the internet. The images were discovered on his digital devices, which were searched pursuant to federal search warrants. The investigation began when a 9-year-old student reported to authorities that Leavitt attempted to take photographs under her skirt while he was substitute teaching in her class at Warden Elementary. Investigators discovered Leavitt possessed numerous images of other students. During an interview with law enforcement, Leavitt admitted he had taken pictures of the students without their knowledge.
Chief Judge Rice noted that the lives of the child victims depicted in child pornography images will never be the same and Leavitt was not the type of child pornography defendant who only acted alone in front of a computer without access to children. The Court ruled that Leavitt’s attempted interactions with young children merited a more serious sentence, and his conduct was very close to the kinds of child exploitation conduct that often merits a life sentence.
U.S. Attorney Harrington said, “This case sends a strong message that the United States Attorney’s Office for the Eastern District of Washington and our federal, state and local law enforcement partners are firmly committed to protecting the public from individuals with a sexual interest in children who receive and collect child pornography. The United States Attorney’s Office commends the law enforcement officers with the Warden Police Department and Federal Bureau of Investigation who investigated this case. Their partnership during the investigation resulted in the successful outcome of this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation and the Warden Police Department. This case was prosecuted by David M. Herzog, an Assistant United States Attorney for the Eastern District of Washington.
12 June 2019
Woman Sentenced to Prison for Giving Opioids Causing Overdose and Death to Her CousinRead the Press Release
A woman who provided heroin that contained fentanyl to her cousin and another person causing her cousin’s death was sentenced June 10, 2019, to more than three years in federal prison.
Marvita Roxanna Causey, age 39, from Waterloo, Iowa, received the prison term after a November 20, 2018 guilty plea to distribution of controlled substances.
Court filings show that Causey gave what she believed to be heroin to two individuals, her cousin and another woman. Residue from the leftover heroin showed that the heroin also contained fentanyl. Causey’s cousin was later found dead and Causey agreed that the proximate cause of her cousin’s death was her distribution of heroin and fentanyl.
Causey was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Causey was sentenced to 37 months’ imprisonment. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Causey is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by Waterloo Police Department and the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-2061.
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