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Thursday 2 May 2019
Chester Drug Trafficker Sentenced to 360 Months for Multiple Drug Trafficking ConvictionsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Paris Church, 57, of Chester, Pennsylvania was sentenced to 360 months’ imprisonment by United States District Judge Gerald A. McHugh. Church was convicted three separate times by a federal jury in March 2016, February 2017, and again in June 2017 of multiple counts of conspiracy to distribute cocaine, crack cocaine and heroin, as well as related offenses in a case stemming from the investigation of a drug trafficking ring in Chester.
An investigation revealed that from about August 2012 until September 2014, Church and his criminal cohorts conspired to distribute illegal narcotics on the streets of Chester, PA. More specifically, in early 2014, Church and his cohorts conspired to source roughly 20 kilograms of cocaine from a Mexican supplier. Church was also involved in a conspiracy to receive illegal drugs from a supplier in California.
“Paris Church is a menace to the neighborhoods of Chester who needed to be convicted on federal charges three times to get the message: dealing illegal drugs and decimating neighborhoods will get you locked up for a long time,” said U.S Attorney McSwain. “This type of drug trafficking is dangerous and fanning the flames of the drug epidemic in this country. My office will investigate and prosecute these cases with tenacity in order to protect the community.”
The case was investigated by Drug Enforcement Administration, Federal Bureau of Investigation, City of Chester Police Department, Pennsylvania State Police, and Delaware County District Attorney’s Office Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys A. Nicole Phillips, Faithe Moore Taylor, and Robert E. Eckert.
Cherry Hill Hillside Gang Member Sentenced to More Than 12 Years in Federal Prison for Participating in a Racketeering ConspiracyRead the Press Release
Total of 19 Hillside Gang Members and Associates Have Pleaded Guilty
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Delonte Conley, age 27, of Baltimore to 150 months in federal prison, followed by three years of supervised release, for conspiracy to participate in a racketeering enterprise related to his activities as a member of the Hillside gang that operated in the Cherry Hill neighborhood of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Delonte Conley chose to join an organized criminal enterprise that preyed on the Cherry Hill neighborhood by dealing drugs and committing violent gun crimes,” said U.S. Attorney Robert K. Hur. Now he will spend over 12 years in federal prison, where there is no parole—ever. Put down the guns and save a life—maybe even your own.”
“Identifying, investigating, and incarcerating the armed gunmen that menace Baltimore’s communities is ATF’s primary focus,” said ATF Baltimore Special Agent in Charge Rob Cekada. “ATF is determined to collaborate with our law enforcement partners in our fight to ensure Baltimore neighborhoods can be free of violence.”
According to his plea agreement, Conley was a member and associate of the Hillside Enterprise, which he knew distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City. The members of the Hillside Enterprise used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization, including narcotics trafficking. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution, primarily heroin, powder cocaine, and crack. These locations included a house at 453 Roundview Road and an apartment at 2300 Terra Firma Road in Cherry Hill. Only trusted members of the Hillside Enterprise were admitted to these locations while the drugs were being prepared for sale. Between December 13, 2014 and November 12, 2015, Conley was captured on video in both of the cut houses, preparing controlled substances for distribution. In an effort to distinguish their narcotics, members used colored topped vials or colored the drugs with food coloring. Conley admitted that he distributed drugs as a member of the Hillside Enterprise, and on behalf of the gang. Throughout Conley’s involvement in Hillside, he was aware that Hillside distributed between one and three kilograms of heroin, and between five and 15 kilograms of cocaine, as well as crack cocaine.
Members of the Hillside Enterprise routinely carried firearms and committed acts of violence in furtherance of the organization’s activities, including robberies, shootings, beatings, murders, and other violence in order to intimidate others who would interfere with their narcotics trafficking. Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy.
Hillside members and associates have been in a long-running dispute with persons not part of the gang, including Up Da Hill (“UDH”), the Lakebrook Circle Boys, and others. Members and associates of Hillside have routinely engaged in acts of violence, including murder, directed at members of these rival organizations, or persons who happen to be located on territory controlled by these rival organizations. Conley knew that these acts of violence, including the homicides, were committed by Hillside members and associates. Conley further admitted that he personally participated in an armed robbery where shots were fired during the robbery, but no one was hit, as well as an assault on another Hillside member as punishment for improperly handling drug proceeds.
Eighteen other Hillside gang members have pleaded guilty to their participation in the racketeering conspiracy. Of those, eight have been sentenced to between 10 and 30 years in federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Michael C. Hanlon, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Berlin Man Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GELIN STERLING, 31, of Berlin, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of aiding in the preparation of false tax returns.
According to court documents and statements made in court, Sterling owned and operated Sterling Tax Plus, LLC, a tax preparation business. For the 2014 through 2017 tax years, Sterling prepared tax returns for numerous clients that included false mileage expenses, false charitable donations, and other false income items.
Judge Dooley scheduled sentencing for August 5, 2019, at which time Sterling faces a maximum term of imprisonment of three years.
Sterling has agreed to pay restitution of $250,000 to the IRS. As a result of his fraudulent conduct, many of his clients’ filed tax returns will need to be amended. The amount of Sterling’s restitution may be reduced as his clients resolve their own tax liability with the IRS.
Sterling is released on a $100,000 bond pending sentencing.
This case is being investigated by the Internal Revenue Service – Criminal Investigation Division and the Connecticut Department of Revenue Services. This case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Beaumont Felon Charged with Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A 43-year-old Beaumont man has been indicted by a federal grand jury and charged with firearms violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Brian Alfred was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury on May 1, 2019.
The indictment alleges that on Apr. 1, 2019, Alfred possessed a rifle after having been previously convicted of aggravated assault against a public servant in Hardin County, Texas in 2010. As a convicted felon, Alfred is prohibited from owning or possessing firearms or ammunition.
If convicted, Alfred faces up to 10 years in federal prison.
This case is being investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Russell James.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Attorney General Fox, U.S. Attorney Alme Announce Joint Missing Persons TrainingRead the Press Release
HELENA — Montana Attorney General Tim Fox and U.S. Attorney Kurt Alme today announced a joint training for local, state, tribal, and federal law enforcement and for the public on missing persons databases and alert systems that can help with missing persons cases across the state, particularly those involving Native Americans.
The event, set for June 12 in Helena, will provide a separate session of instruction for law enforcement on accepting and entering a missing person’s report, while a separate session for the public will provide information on the databases and alert systems and training on using the National Missing and Unidentified Persons System (NamUs) program.
"This training will focus on how all of us in Montana’s law enforcement and criminal justice system will work with our federal and tribal partners to find justice for missing indigenous people in our state, and healing for their families and communities,” Attorney General Tim Fox said. “Because of the jurisdictional divisions in Indian Country, local, state, tribal, and federal law enforcement agencies must work together. We’re designing this collaborative training specifically for law enforcement, and for tribal government and members of the public, with educational offerings tailored to each of those groups.”
“We are pleased to be working with Attorney General Fox and the Federal Bureau of Investigation to provide this first-ever joint training on missing persons resources for all federal state, local and tribal law enforcement in Montana and for tribal councils and members of the public,” U.S. Attorney Kurt Alme said. “By working together with law enforcement and family and friends to better collect information about missing persons, particularly Native Americans, we can help bring more people home.”
Gerald Gray, Chairman of the Little Shell Tribe of Chippewa Indians and Chairman of the Rocky Mountain Tribal Leaders Council, said, “There are far too many missing persons in the state of Montana, especially among Montana’s tribes; therefore, the Little Shell are happy to support the efforts being put forth by the Montana Department of Justice and the US Attorney’s Office with regard to the Missing Persons Training that will be taking place.”
The training will feature presenters from a variety of federal and state organizations. Trainers from the FBI’s Criminal Justice Information Services, NamUs, the National Center for Missing and Exploited Children, AMBER Alert, and the Montana Department of Justice’s Criminal Justice Information Network, Missing Persons Clearinghouse, Montana Analysis and Technical Information Center, and Office of Victim Services will explain the various databases and alerts, how they work and how law enforcement and the public can use them when someone goes missing.
Lucy Simpson, Director of the National Indigenous Women’s Resource Center (NIWRC), has been invited to give the keynote address. “The NIWRC’s main office is located in Lame Deer, and our staff experienced the disappearance and losses of Henny Scott and Hannah Harris directly as members of that community,” Simpson said. “This localized training of national partners signals a step forward to addressing the disproportionate violence that American Indian people face on a daily basis, including a homicide rate on some reservations that is ten times the national average,” Simpson added.
The joint training is sponsored by the Montana Department of Justice, the U.S. Attorney’s Office for Montana, and the FBI.
The training will be offered free of charge; POST credits for law enforcement officers are pending. Space is limited to 250 attendees; priority will be given to tribal government representatives and law enforcement. For more information, email [email protected] or call DOJ’s Office of Victim Services at 1-800-498-6455 or (406) 444-3653. Online registration is available at www.dojmt.gov/mpt.
Ashley Patterson Sentenced to 125 Months in PrisonRead the Press Release
HAMMOND – Ashley Patterson, 29 years old, of Crown Point, Indiana, was sentenced by U.S. District Court Judge Philip P. Simon to 125 months in prison after pleading guilty to bank robbery and discharge of a firearm during and in relation to a crime of violence, announced United States Attorney Thomas L. Kirsch II.
According to documents in the case, on March 29, 2014, Patterson and her co-defendant Jeremiah Ellis robbed First Merchant’s Bank in East Chicago, Indiana. Patterson and Ellis brandished guns during the robbery, took approximately $10,000 cash, and Ellis discharged his gun as Patterson drove them away from the bank.
This case was investigated by the FBI GRIT Task Force with the assistance of ATF and prosecuted by Assistant United States Attorney Jennifer Chang.
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Ambulance Owner Sent to Prison for Health Care FraudRead the Press Release
HOUSTON – A 46-year-old Houston man has been ordered to federal prison following his conviction of conspiracy to commit health care fraud, announced U.S. Attorney Ryan K. Patrick.
Keeble Lovall pleaded guilty July 31, 2018, after less than two days of trial and hearing from 10 witnesses.
Today, U.S. District Judge Miller handed Lovall a 63-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted the sentence was appropriate to deter future health care fraud.
Lovall was the owner of Your Health EMS from 2009 through 2012. Beginning in September 2011 until May 2012, Lovall knowingly billed Medicare and Medicaid falsely for non-eligible transports. Some of the fraudulent billing involved Lovall submitting claims to Medicare and Medicaid for individual ambulance transports, when in fact, multiple patients were being transported via one ambulance.
Other fraudulent billings involved Your Health submitting claims for transporting Medicare patients via an ambulance to Partial Hospitalization Programs (PHPs) at various facilities, which is an unauthorized transport per Medicare. Additionally, Lovall billed Medicare through Your Health for ambulance transportation services when there was no medical necessity for the transport.
As a result of Lovall’s actions, Your Health falsely billed Medicare for approximately $2,835,930 in ambulance transports, which were never provided or which were not medically necessary. Lovall caused Medicare to directly deposit approximately $1,063,913.58 into Your Health’s bank account for ambulance transports, which were never provided or which were not medically necessary.
Lovall was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Medicaid Fraud Control Unit of the Texas Attorney General's Office, IRS - Criminal Investigation, FBI, Department of Health and Human Services - Office of Inspector General conducted the joint investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Zahra Jivani Fenelon prosecuted the case.
Wednesday 1 May 2019
Woman Arrested at KC Bus Station Pleads Guilty to Possessing FentanylRead the Press Release
KANSAS CITY, Mo. – A woman carrying more than five pounds of fentanyl in her suitcase as she traveled through Kansas City, Mo., pleaded guilty in federal court today.
Evelyn C. Sanchez, 33, pleaded guilty before U.S. Chief District Judge Beth Phillips to possessing fentanyl with the intent to distribute.
According to court documents, Sanchez was traveling from Los Angeles, Calif., en route to New York, N.Y. Her bus stopped briefly at a Kansas City bus station on Aug. 21, 2018. After Kansas City police detectives interviewed Sanchez at the bus station, they became suspicious that she was not being truthful about her trip and purpose for going to New York. A police service canine alerted to a grey, hard-sided suitcase under one of the seats near where Sanchez had been seated on the bus, and she eventually acknowledged that that suitcase belonged to her.
When detectives searched Sanchez’s suitcase, they found two bundles wrapped in several layers of plastic, which contained a total of 2.4 kilograms (5.3 pounds) of fentanyl. When officers searched Sanchez’s purse, they discovered a false bottom to the purse that contained five separate baggies of cocaine that weighed a total of 5.64 grams.
Under federal statutes, Sanchez is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
Wolcottville Woman Indicted for Possession with Intent to Distribute MethamphetamineRead the Press Release
FORT WAYNE, IN –Kristin M. Ferguson, also known as “Detroit,” 29, of Wolcottville, Indiana was charged in a single count Indictment returned by the Grand Jury alleging that she possessed with the intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Thomas L. Kirsch, II.
Ms. Ferguson’s initial appearance before Magistrate Judge Susan Collin was conducted at 11:30AM in the Fort Wayne Federal Courthouse.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of an investigation by the Wolcottville Police Department, Noble County Sheriff’s Department and the Drug Enforcement Administration. This case is being prosecuted by Assistant United States Attorney Sarah E. Nokes.
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West Bank Resident Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DAVID TRAN, age 32, of New Orleans, Louisiana, pleaded guilty today before the Honorable Jane Triche Milazzo to an indictment charging him with violating the Federal Controlled Substances Act, announced U.S. Attorney Peter G. Strasser.
According to the court records, TRAN pleaded guilty to conspiring with other individuals to manufacture, possess with the intent to distribute, and to distribute 1,000 or more marijuana plants, 400 grams or more of fentanyl, 500 grams or more of methamphetamine, and 100 grams or more of heroin. TRAN also admitted that he possessed large quantities of fentanyl and methamphetamine with the intent to distribute them and that he was manufacturing large quantities of marijuana.
The case resulted from a lengthy Title III wire intercept investigation conducted by the Drug Enforcement Administration in which TRAN and his co-conspirators were captured discussing heroin sales, as well as the construction of a large indoor marijuana grow in Bridge City. The calls led the DEA agents to conduct a search of a warehouse and adjacent residence in Bridge City. During the search, the agents found a large marijuana grow that contained approximately 700 plants in varying stages of growth and equipment sufficient to grow many thousand more plants. Significant work and expense had been put into remodeling the warehouse, including thousands of dollars in lights, cooling systems, and ventilation. The agents also discovered a safe containing a cornucopia of other drugs, including 1,396.2 grams of methamphetamine; 990 grams of MDMA (ecstasy); and 1,175.9 grams of fentanyl, a highly potent synthetic opioid that is fueling the tremendous rise in overdose deaths.
Sentencing is scheduled for July 31, 2019 at 9:00 a.m. TRAN faces a mandatory minimum term of imprisonment of at least 10 years up to a maximum of life, a fine of $10,000,000, and at least five years of supervised release following any term of imprisonment.
The case was investigated by the Drug Enforcement Administration and the New Orleans Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Several other law enforcement agencies, including Jefferson Parish Sheriff’s Office, Plaquemines Parish Sheriff’s Office, and the Kenner Police Department, assisted in the search of the warehouse in Bridge City. The prosecution is being handled by Assistant United States Attorney David Haller.
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University of New Hampshire Employee Sentenced to Two Years of Probation for Interstate Transportation of Stolen MoneyRead the Press Release
CONCORD - Hailong Zhang, 46, of Nottingham was sentenced to serve two years of probation, with 10 months of home detention, and fined $5,500 for aiding and abetting the interstate transportation of stolen money, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, Zhang was a Research Project Manager at the University of New Hampshire, College of Life Sciences. Zhang was authorized to use a credit card provided by UNH to pay for expenses covered by grants that were provided to the College of Life Sciences by the U.S. Department of Health and Human Services, National Institutes of Health (“NIH”). On 31 separate occasions from December 2013 to January 2018, Zhang used the credit card to purchase gift cards totaling more than $82,000 from Amazon.com, which he kept or used to buy merchandise for his personal benefit, including clothing, video games, and a snow blower. To conceal each such use of the credit card, Zhang submitted a fictitious receipt and a fraudulent written justification for the expense to UNH. The bogus documents caused the University System of New Hampshire to make payments on the credit card and obtain reimbursement for the unauthorized expenses from the NIH.
“Federal grant money provides vital support for programs that advance public health and the quality of life for all,” said U.S. Attorney Murray. “Those who steal these funds for their personal use should understand that they will face serious consequences. We will continue to work with our law enforcement partners to protect federal programs from fraud and abuse.”
“Today, Mr. Zhang is finally being held accountable for pocketing more than $80,000 in federal grant money on personal expenses when that money should have been used to advance important scientific research projects,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Taxpayers should know that the FBI will continue to work very closely with our law enforcement partners to protect federal funds from being stolen or misused.”
“Taxpayer funds at NIH support critical research that can ultimately save lives,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General at the U.S. Department of Health and Human Services. “Zhang siphoned off these life-giving dollars and will now pay the price. We will continue to investigate all allegations of fraud, waste and abuse in HHS funded programs.”
Zhang previously pleaded guilty on December 7, 2018.
The case was investigated by the UNH Police Department, the Federal Bureau of Investigation, and the U.S. Department of Health and Human Services, Office of Inspector General, with assistance from Nottingham Police Department. The case was prosecuted by Assistant United States Attorney Robert M. Kinsella.
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U.S. Attorney’s Office Announces Statewide Funding Opportunity to Reduce Violent CrimeRead the Press Release
United States Attorney Erica H. MacDonald today announced the release of a district-wide Request for Proposals (RFP) under its Project Safe Neighborhoods (PSN) initiative, the centerpiece of the Department’s violent crime reduction strategy. PSN is a nationwide initiative, led by U.S. Attorneys, which brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them.
“More than $400,000 will be awarded to jurisdictions throughout the District of Minnesota to develop and implement tailored solutions to address the local violent crime, gang, and substance abuse issues plaguing their communities,” said U.S. Attorney Erica MacDonald. “Leveraging resources such as these will bring us closer to our shared goal of reducing violent crime and making our communities safer for everyone.”
Approximately $413,791 in funding is now available to support locally developed, comprehensive violence reduction partnerships. Eligible applicants include nonprofit agencies and/or local units of government including cities, counties, townships, and tribal governments. The funding is administered by the Minnesota Department of Public Safety’s Office of Justice Programs and will be awarded through a competitive process. The RFP is available here: https://dps.mn.gov/divisions/ojp/grants/Pages/default.aspx. Applications will be accepted until midnight (CDT), July 15, 2019.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Parents Charged in College Admission Case Plead GuiltyRead the Press Release
BOSTON – Two parents charged in the college admissions case pleaded guilty today in federal court in Boston in connection with paying a total of $600,000 to facilitate their children’s admission to college.
Bruce Isackson, 62, and Davina Isackson, 55, of Hillsborough, Calif., pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. Bruce Isackson also pleaded guilty to one count of money laundering conspiracy and one count of conspiracy to defraud the IRS. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for July 31, 2019.
As set forth in the charging documents, the Isacksons agreed to pay Singer, an amount, ultimately totaling $600,000, to participate in the college entrance exam cheating scheme for their younger daughter and the college recruitment scheme for both of their daughters. The Isacksons also underpaid their federal income taxes by deducting the bribe payments as purported charitable contributions. The Isacksons are cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the money laundering. The charge of conspiracy to defraud the United States provides for a maximum sentence of five years in prison, three years of supervised release, and a fine of $250,000. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Charged in Superseding Indictment with Identity Theft in Connection with Revere Drug ConspiracyRead the Press Release
BOSTON – Two men have been charged in federal court in Boston in a superseding indictment with Social Security fraud and aggravated identity theft in connection with their roles in a fentanyl conspiracy in Revere.
John Doe, a/k/a “Cali,” of Revere, whose true identity and age are unknown, was charged with one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; three counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl; five counts of distribution of and possession with intent to distribute fentanyl; one count of false representation of a Social Security number; and one count of aggravated identity theft.
Sandy Alejandro Reynoso Cruz, 48, who resided most recently in Waterbury, Conn., and is believed to be a citizen of the Dominican Republic, was charged with one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl; one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl; one count of false representation of a Social Security number; and one count of aggravated identity theft.
Both men were arrested on Aug. 28, 2018, and initially charged by complaint, which alleged that between May and August 2018, Doe made six sales of fentanyl to a cooperating witness in Revere, where Doe lived. The complaint further alleged that Cruz was Doe’s supplier.
According to the superseding indictment, both men used stolen identities and Social Security numbers when applying for Massachusetts driver’s licenses in 2017.
For Doe, the charge of conspiracy provides for a mandatory minimum sentence of 15 years and up to life in prison, a minimum of 10 years and up to a lifetime of supervised release and a fine of up to $20 million. For each of the three counts that allege distribution of 40 grams or more of fentanyl, Doe faces a mandatory minimum sentence of 10 years and up to life in prison, a minimum of eight years and up to a lifetime of supervised release and a fine of up to $8 million. For each of the five counts of fentanyl distribution that do not specify a quantity of fentanyl, Doe faces up to 30 years in prison, a minimum of six years and up to a lifetime of supervised release and a fine of up to $2 million.
For Cruz, the charge of conspiracy and the one count of fentanyl distribution with which he is charged both provide for 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.
False representation of a Social Security number provides for a sentence of no greater than five years in prison, up to three years of supervised release and a fine of up to $250,000, or twice the gross gain or loss resulting from the offense, whichever is greater. The charge of aggravated identity theft carries a mandatory two-years in prison, which must run consecutively to any other sentence imposed, up to three years of supervised release and a fine of up to $250,000, or twice the gross gain or loss resulting from the offense, whichever is greater. 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The Massachusetts Department of Correction; Norfolk Sheriff’s Office, Suffolk County Sheriff’s Office; the Reading, Watertown, Braintree, Peabody, Waltham, Woburn, and Revere Police Departments; and the Waterbury (Conn.) Police Department assisted with the investigation. Assistant U.S. Attorney Brian A. Pérez‑Daple of Lelling’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendants remain innocent until proven guilty beyond a reasonable doubt.
Tulsa Child Predator Sentenced to 15 Years in PrisonRead the Press Release
A 71-year-old Tulsa man was sentenced today in U.S. District Court for convincing an adolescent to send him sexually explicit pictures using a cell phone, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced James Wesley Barnes to 15 years in prison for possession of child pornography. Following completion of his prison term, Barnes will serve seven years on supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children.
“James Barnes’ perverse and deviant crimes are deserving of every day of his 15-year prison sentence. The physical, mental and emotional harm inflicted on this young victim may have lifetime repercussions,” said U.S. Attorney Shores. “It is inspiring to see that, in the face of fear and uncertainty, this child victim spoke out about the abuses perpetrated against her. Because of one child’s courage and resiliency, this vile predator is going to federal prison for a long time.”
At his plea hearing on Jan. 30, 2019, Barnes admitted that from March to June 2018, he possessed sexually explicit pictures of an eleven-year-old girl that she sent at his request. According to court documents, Barnes was previously convicted in Tulsa County District Court for second-degree rape of a minor under 16 years of age.
Barnes remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prison’s facility.
The Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Shannon Cozzoni prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Tonawanda Man Who Received Cocaine from Puerto Rico SentencedRead 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 Osvaldo Rivera-Amaro, 46, of Tonawanda, NY, who was convicted of attempted possession with intent to distribute cocaine, was sentenced to serve 46 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that cocaine was shipped to the defendant from Puerto Rico through the U.S. Postal Service. On December 15, 2017, U.S. Postal inspectors seized a package containing just over two kilograms of cocaine that was addressed to co-defendant Iramarie Velez on Crane Place in Tonawanda, NY. The cocaine was replaced with sham cocaine, and then the package was delivered on December 28, 2017. After Velez accepted the package, she left the residence but returned a few minutes later with Rivera-Amaro. Velez went back into the residence, came back out with the package, and placed it in the back of the defendant’s vehicle. The defendant was subsequently detained, his vehicle was searched, and the package, containing the sham cocaine, was located in the trunk.
Iramarie Velez was previously convicted and is awaiting sentencing.
Today’s sentencing is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Three Alleged MS-13 Gang Members Indicted in Connection with MurderRead the Press Release
A federal grand jury in Las Vegas, Nevada, returned a three-count indictment today against three alleged gang members of La Mara Salvatrucha (MS-13) for their involvement in connection with a kidnapping and murder.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division and Special Agent in Charge Joseph Macias of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Los Angeles made the announcement.
Jose Luis Reynaldo Reyes-Castillo, aka Molesto, 25, Miguel Torres-Escobar, aka Chamilo, 21, and David Arturo Perez-Manchame, aka Walter Melendez and Herbi, 20, are charged with murder in aid of racketeering, using and carrying a firearm during and in relation to a crime of violence and causing death through the use of a firearm. Reyes-Castillo and Torres-Escobar are citizens of El Salvador and Perez-Manchame is a citizen of Honduras. All of the defendants are illegally in the United States.
According to the indictment, MS-13 is a violent, transnational criminal organization that operates throughout the United States, including in Las Vegas, Nevada. MS-13 is a street gang composed primarily of persons from Central America, including El Salvador, Honduras and Guatemala. The Parkview clique of MS-13 operated in the Las Vegas, Nevada sector. MS-13 members are required to commit crimes, including acts of violence, to maintain membership and discipline within the group.
The indictment alleges that, on Jan. 21, 2018, Reyes-Castillo, Torres-Escobar and Perez-Manchame, kidnapped and murdered Arquimidez Sandoval-Martinez. As alleged, the defendants intentionally participated in the act of violence that resulted in the death of Sandoval-Martinez.
Reyes-Castillo, Perez-Manchame and Torres-Escobar remain in federal custody. Reyes-Castillo is pending federal charges in the Eastern District of California. All three defendants are scheduled to be arraigned on May 21, 2019, before Magistrate Judge Cam Ferenbach in U.S. District Court in Las Vegas.
An indictment merely contains allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The charges are the result of a joint investigation by the FBI, HSI and the Las Vegas Metropolitan Police Department with the assistance of the DEA. Trial Attorney John S. Han of the Justice Department’s Organized Crime & Gang Section is prosecuting the case.
Three Alleged MS-13 Gang Members Indicted in Connection with MurderRead the Press Release
LAS VEGAS, Nev. – A federal grand jury in Las Vegas, Nevada returned a three-count indictment today against three alleged gang members of La Mara Salvatrucha (MS-13) for their involvement in connection with a kidnapping and murder.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, and Special Agent in Charge Joseph Macias of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Los Angeles made the announcement.
Jose Luis Reynaldo Reyes-Castillo, aka Molesto, 25, Miguel Torres-Escobar, aka Chamilo, 21, and David Arturo Perez-Manchame, aka Walter Melendez and Herbi, 20, are charged with murder in aid of racketeering, using and carrying a firearm during and in relation to a crime of violence and causing death through the use of a firearm. Reyes-Castillo and Torres-Escobar are citizens of El Salvador and Perez-Manchame is a citizen of Honduras. All of the defendants are illegally in the United States.
According to the indictment, MS-13 is a violent, transnational criminal organization that operates throughout the United States, including in Las Vegas, Nevada. MS-13 is a street gang composed primarily of persons from Central America, including El Salvador, Honduras, and Guatemala. The Parkview clique of MS-13 operated in the Las Vegas, Nevada sector. MS-13 members are required to commit crimes, including acts of violence, to maintain membership and discipline within the group.
The indictment alleges that, on Jan. 21, 2018, Reyes-Castillo, Torres-Escobar, and Perez-Manchame kidnapped and murdered Arquimidez Sandoval-Martinez. As alleged, the defendants intentionally participated in the act of violence that resulted in the death of Sandoval-Martinez.
Reyes-Castillo, Perez-Manchame, and Torres-Escobar remain in federal custody. Reyes-Castillo is pending federal charges in the Eastern District of California. All three defendants are scheduled to be arraigned on May 21, 2019, before Magistrate Judge Cam Ferenbach in U.S. District Court in Las Vegas.
An indictment merely contains allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The charges are the result of a joint investigation by the FBI, HSI, and the Las Vegas Metropolitan Police Department with the assistance of the DEA. Trial Attorney John S. Han of the Justice Department’s Organized Crime & Gang Section is prosecuting the case.
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Third Brownsville Meth Smuggler Ordered to PrisonRead the Press Release
BROWNSVILLE, Texas – A 38-year-old Brownsville man has been sentenced for possession with intent to distribute 15.12 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Vicente Manuel Murillo, of Brownsville, pleaded guilty July 6, 2018.
Today, U.S. District Judge Rolando Olvera sentenced Murillo to a 60-month term of imprisonment to be immediately followed by two years of supervised release. In handing down the sentence, the court admonished Murillo, telling him that should he ever be foolish enough to commit another offense in the future, his sentence would be a lot higher.
At the time of his plea, Murillo admitted he knowingly possessed the methamphetamine with intent to distribute it to another person within the United States.
The case originated Jan. 20, 2017, when co-conspirator Maria Guadalupe Villanueva, 56, of Brownsville, attempted to enter the United States through the B&M Bridge Port of Entry in Brownsville driving a 2005 Jeep Grand Cherokee. She was the sole occupant and registered owner of the vehicle. During inspection, authorities discovered 15.12 kilograms (33.26 pounds) of methamphetamine hidden within Rockaleta lollipop candy bags in the vehicle.
Upon arrival, Villanueva claimed her cousin - Bibiana Paz, 48, of Brownsville - had given her the candy in Matamoros, Mexico, to bring into the United States for a birthday party. However, the primary inspector had immediately noticed it was not a lollipop, but felt liked crushed rocks and sent her to secondary inspection. There, she again gave the same statement.
Villanueva was going to take the bags to Paz’s apartment. Villanueva indicated Paz placed the candy into the vehicle and had stayed in Matamoros in order to continue shopping. Law enforcement, however, discovered Paz had actually crossed into the United States through the same port approximately three minutes after Villanueva’s attempted entry. Villanueva also indicated, that because of Paz’s history, she suspected there were narcotics hidden in the candy bags and asked Paz why she did not want to cross the candy herself. She also indicated she asked Paz “You wouldn’t do that to me?” She indicated Paz shook the bags and told her there were no narcotics in the bags.
On Feb. 8, 2017, law enforcement arrested Paz, at which time she admitted she had asked Villanueva to bring the candy into the United States after Murillo had given her the merchandise in Matamoros. She indicated the candy was going to be delivered to Murillo in Brownsville.
She said that on Jan. 20, 2017, she followed Villanueva into the United States and noticed Villanueva had been detained. She admitted she delivered a separate batch of candy to Murillo at a local parking lot after she informed him that Villanueva was detained at the bridge.
Murillo was later arrested and stated he was supposed to receive the narcotics Villanueva was bringing into the United States. He claimed the narcotics supplier in Mexico told him to take custody of the narcotics from Paz and admitted he was going to deliver them to another person within the United States.
Judge Olvera previously sentenced Villanueva and Paz for their roles in the offense to 31 and 60 months, respectively.
Murillo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Angel Castro prosecuted the case.
Thibodaux Man Pleads Guilty to Possession of Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – JARED CARRELL (“CARRELL”), age 38, of Thibodaux, Louisiana, entered a plea of guilty yesterday to Possession of Child Pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B).
According to documents filed in federal court, on May 30, 2018, law enforcement officers with the Louisiana State Police found CARRELL in possession of a LG cellular device containing images depicting the sexual victimization of prepubescent children. On July 9, 2018, members of the Louisiana State Police and the U.S. Department of Homeland Security, Homeland Security Investigations, executed a search warrant at CARRELL’s Thibodaux residence. At which time, CARRELL was arrested and charged with possessing child pornographic materials.
CARRELL faces a maximum penalty of twenty (20) years imprisonment followed by up to a life term of supervised release, and a $250,000.00 fine. In addition, CARRELL will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
CARRELL will be sentenced by U.S. District Court Judge Jay C. Zainey on August 6, 2019.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the 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. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Strasser praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, and the Louisiana State Police in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Supervisor of Financial Crimes, Assistant U. S. Attorney Brian M. Klebba.
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Suspended Andover Attorney Convicted of Tax FraudRead the Press Release
BOSTON – A former attorney from Andover was convicted today by a federal jury of filing false tax returns and for conspiring with his accountant to defraud the IRS.
Daniel P. Gibson, 62, was convicted by a federal jury on three counts of tax fraud. Gibson was indicted in October 2015. U.S. District Judge Indira Talwani scheduled sentencing for Sept. 5, 2019.
Gibson conspired with his accountant to prepare and file false tax returns in the tax years 2005, 2006, 2008 and 2009 that intentionally underreported approximately $3.7 million in income earned by the law firm of which Gibson was the managing partner. As a result, Gibson underreported his personal income by approximately $2.5 million and avoided taxes of more than $875,000.
The charge of filing of the false returns provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000 per count and restitution. The charge of conspiracy to defraud the Internal Revenue Service provides for a sentence of no greater than five years in prison, three years supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and William B. Brady of Lelling’s Criminal Division are prosecuting the case.
Statement of United States Attorney Mike Stuart Regarding Federal Investigation into 2016 Floods Disaster ReliefRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart provided the following statement regarding a federal investigation into the 2016 floods disaster relief:
“The deadly 2016 floods were a seminal event for West Virginia. Too many of our precious citizens lost their lives. Many other lives were terribly impacted. Critical infrastructure including roads, bridges, and water systems were destroyed or significantly interrupted. And too many West Virginians lost their most critical personal asset – their homes. Many lives were literally turned upside down. To this day, the future remains uncertain for too many of our friends and neighbors.
Post-disaster, the federal government committed millions of taxpayer dollars to disaster relief for recovery with the intent that the assistance would help rebuild lives and rebuild communities. Critical federal resources through FEMA and the Department of Housing and Urban Development are essential to the rebuilding process and must be used wisely, timely and legally.
Every available dollar for disaster relief must be spent on disaster relief. Diversion, fraud, corruption or delay cannot and will not be tolerated.
Desperate communities and West Virginians depend on critical, limited dollars to assist in recovery. Desperate communities and West Virginians need certainty that in a future disaster intended assistance will be delivered timely and spent properly. West Virginians need to be reassured that federal law enforcement is now investigating this matter. Rest assured, my office is working with appropriate federal agencies to investigate the issues of disaster relief, and use of federal funds related to the historic 2016 floods and I can assure our citizens that any party that abused their position of authority, violated the public trust, or misused taxpayer dollars will be held accountable, if warranted.”
SDWVNews and USAttyStuart
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St. Thomas Man Found Guilty of Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – Le’Quan Registe, 25, of St. Thomas, was found guilty of possession with intent to distribute marijuana after a jury trial in District Court, United States Attorney Gretchen C.F. Shappert announced. The jury trial lasted one day, commencing on April 29, 2019, with jury deliberations commencing and concluding on April 30, 2019. Registe was acquitted of an additional charge of possession of a firearm in furtherance of marijuana distribution.
According to trial testimony, on May 18, 2018, during a search of Registe’s vehicle, Virgin Islands Police Department officers located quantities of marijuana on the gear shift, on top of and underneath the front passenger seat, as well as in a backpack located on the backseat. Officers also located in the car $3,400 in a hidden compartment of the steering wheel, a police scanner, baggies, a digital scale, and a firearm.
After trial, Registe was remanded to the custody of the United States Marshals Service. Sentencing is set for August 29, 2019.
This case was investigated by the Drug Enforcement Agency, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Virgin Islands Police Department and was prosecuted by Assistant United States Attorneys Meredith J. Edwards and George Andrew Massucco-LaTaif.
St. Thomas Man Arrested for Firearm and Drug ChargesRead the Press Release
St. Thomas, USVI – Aubrey Frett, 30, of St. Thomas was arrested today on an indictment charging him with possession of a firearm with an obliterated serial number, possession with the intent to distribute crack cocaine, possession with the intent to distribute marijuana, and possession of a firearm in furtherance of a drug trafficking offense, United States Attorney Gretchen C.F. Shappert, announced. Frett made his initial appearance before Magistrate Judge Ruth Miller and was detained pending further proceedings on May 9, 2019.
According to the indictment, on September 3, 2018, Frett was in possession of marijuana, crack cocaine and a firearm with an obliterated serial number when officers from the Virgin Islands Police department detained him on an unrelated matter.
If convicted of possession of a firearm with an obliterated serial number, Frett faces a term of imprisonment of not more than five years and a $250,000 fine. If convicted of possession of crack cocaine with the intent to distribute, a term of not more than twenty years and possession of marijuana with the intent to distribute, a term of not more than five years in prison. On the possession of a firearm during a drug trafficking offense, Frett faces a consecutive five year term of imprisonment.
The U.S. Drug Enforcement Administration (DEA) and the Virgin Islands Police Department investigated this matter and the case is being prosecuted by Assistant United States Attorney Everard Potter.
St. Louis Man Pleads Guilty to Two Armed CarjackingsRead the Press Release
St. Louis, MO –Malachiah Williams, 22, of St. Louis, MO, pleaded guilty to two counts of carjacking and two counts of brandishing a firearm. Williams appeared today before U.S. District Judge Richard Webber who accepted his plea and set his sentencing date for July 30, 2019.
According to the plea agreement, on July 25, 2018, Williams, armed with a semi-automatic firearm, approached a man in his vehicle parked in front of a residence in the 5500 block of Cote Brilliante. Williams tapped on the driver’s side door with the firearm and ordered the victim out of the vehicle. After the victim exited, Williams entered the vehicle and drove away.
On July 31, 2018, a mother and her four-year-old daughter were sitting inside a vehicle near the 5400 block of Dr. Martin Luther King Drive. Williams approached their vehicle and stuck his head into the passenger side window. He pointed a semi-automatic firearm at the mother and child while ordering them out of the vehicle. Williams then entered the vehicle and drove away.
If convicted, carjacking carries a penalty of not more than 20 years in prison and/or a fine of $250,000 on each count. The firearms charges carry penalties of not less than seven years nor more than life and/or fine of $250,000 on each count consecutive to any other sentence imposed. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. The United States and Williams intend to recommend a sentence of 15 years imprisonment at the time of sentencing.
The St. Louis Metropolitan Police Department investigated this case. The case is being prosecuted by Assistant United States Attorney Tom Mehan.
St. Louis County Woman Pleads Guilty to Providing Material Support to TerroristsRead the Press Release
St. Louis, MO – Sedina Unkic Hodzic, 39, of St. Louis County, pleaded guilty today to one count of conspiring to provide material support to terrorists. Sedina Unkic Hodzic appeared today before Judge Catherine D. Perry who accepted her plea and set her sentencing for August 9, 2019. U.S. Attorney Jeffrey B. Jensen for the Eastern District of Missouri, Special Agent in Charge Richard Quinn of the FBI’s St. Louis Division and Assistant Attorney General for National Security John C. Demers made the announcement.
Charged in the indictment are: Ramiz Zijad Hodzic, his wife Sedina Unkic Hodzic, and Armin Harcevic, all of St. Louis County, Missouri, Nihad Rosic, of Utica, New York, and Mediha Medy Salkicevic, of Schiller Park, Illinois. All defendants are charged with conspiring to provide material support and resources to terrorists, and with providing material support to terrorists. Ramiz Zijad Hodzic and Nihad Rosic are also charged with conspiring to murder and maim persons in a foreign country. Armin Harcevic pleaded guilty on February 25, 2019, and Mediha Medy Salkicevic pleaded guilty on March 21, 2019. Ramiz Zijad Hodzic pleaded guilty on April 3, 2019. The remaining defendants have pleaded not guilty. As is always the case, charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Sedina Unkic Hodzic faces up to 15 years imprisonment and/or fines of up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U.S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Trial Attorney Joshua Champagne of the Department of Justice’s Counterterrorism Section.
Shakopee Felon Sentenced to 248 Months in Prison for Methamphetamine Distribution, Illegal Possession of FirearmsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MILES DENZEL RAYMOND LEWIS, 26, to 248 months in prison for methamphetamine distribution and illegal possession of three firearms. LEWIS, who pleaded guilty on December 13, 2018, was sentenced today before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota.
According to his guilty plea and documents filed in court, on May 1, 2018, LEWIS sold methamphetamine to a confidential informant from his home in Shakopee, Minnesota. Upon execution of a search warrant at LEWIS’s residence, law enforcement recovered approximately 2,238 grams of methamphetamine, 338 grams of cocaine, 1,564 grams of marijuana, three firearms, two digital scales, a money counting machine, numerous rounds of ammunition, and $88,221 in cash. When law enforcement arrested LEWIS on May 18, 2018, he was found to be in possession of another $49,831 in cash.
This case was the result of an investigation conducted by Homeland Security Investigations, the Ramsey County Violent Crime Enforcement Team, the Shakopee Police Department, and the Saint Paul Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
This case was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
Defendant Information:
MILES DENZEL RAYMOND LEWIS, 26
Shakopee, Minn.
Convicted:
- Possession with the intent to distribute methamphetamine, 1 count
- Possession of firearms in furtherance of drug trafficking crimes, 1 count
Sentenced:
- 248 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Serial Robber Pleads Guilty to Federal ChargesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Trevor Christian, 31, Madison, Wisconsin, pleaded guilty today to committing four robberies in Madison in November 2018. The maximum penalty for each robbery is 20 years in federal prison.
On November 1, 2018, Christian robbed a Walgreens on East Washington Avenue and obtained cash and cigarettes. Christian handed an employee a note that stated, “All the cash in the drawer, 30 seconds, don’t make me.”
On November 5, 2018, Christian robbed an Associated Bank on Shopko Drive and obtained cash. Christian handed the teller a note that stated, “It’s a robbery, give me all the money, no dye packs, don’t make me do anything stupid, 20 seconds.” The note was left behind, and Christian’s fingerprint was subsequently identified on it.
On November 7, 2018, Christian robbed an Associated Bank on Odana Road and again obtained cash. As he did in the previous two robberies, Christian handed a teller a note. On that occasion, the note stated, “This is a robbery, no alarms, no dye packs, all the money in the drawer and no one gets hurt. Be calm. 20 seconds.”
Finally, on November 14, 2018, Christian robbed the Dane County Credit Union on Struck Street, again using a note. During this robbery, the note stated, “It’s a robbery, keep calm, give me 20 seconds.” The teller complied and included bait bills.
All four robberies were captured on video. Still photographs of the robber were shared with the public, and the Madison Police Department (MPD) received a tip that the robber was Trevor Christian. After further investigation, MPD obtained warrants for Christian’s apartment and his cell phone. They recovered the bait money from the credit union, a pair of boots seen in the video, and an Associated Bank money band. Christian’s phone revealed he was searching for news of the robberies.
U.S. District Judge James D. Peterson scheduled sentencing for August 21, 2019 at 10:00 a.m. Christian has been detained in federal custody since his arrest on November 14, 2018.
The charges against Christian were the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Serial Check Thief Sentenced to More That 4 Years in Prison for Bank Fraud and Identity Theft OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EDWARD WILLIAMS, 58, of Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 54 months of imprisonment, followed by three years of supervised release, for fraud and identity theft offenses stemming from a mail theft and check cashing scheme.
According to court documents and statements made in court, Williams stole checks in a variety of ways and altered or filled out the checks to make them payable to him, his co-conspirators, or stolen identities that he has used.
One victim of this scheme was a Windsor resident who had written a check payable to American Express, mailed the check with his American Express bill, and later discovered that the check had been altered and cashed for $985.30. Another individual whose identity Williams used to cash this check and commit other crimes was subsequently wrongly arrested by a local police department.
Other victims of this scheme include a West Hartford couple who had left a holiday card containing a $15 check for their newspaper delivery person outside of their mailbox, and later discovered it had been altered and cashed for $870; a West Hartford resident who learned that she had a box of checks she ordered stolen after Williams attempted to cash one of the checks for $400; and an individual who had personal checks stolen from a book he kept at his business, and was subsequently informed that Williams had deposited four of the checks totaling more than $5,000 into a bank account Williams had opened.
In total, between August 2016 and June 2017, Williams, or his co-conspirators, successfully cashed $27,311.35 in fraudulently obtained checks. He, or others working with him, also attempted to cash $40,861.65 in fraudulently obtained checks.
Williams has been detained since his arrest on October 18, 2017. On November 5, 2018, Williams pleaded guilty to one count of bank fraud and one count of aggravated identity theft.
Williams’ criminal history includes 74 arrests and numerous convictions, including convictions for forgery, larceny and burglary offenses.
This matter was investigated by the U.S. Postal Inspection Service, with the assistance of several police departments, including the South Windsor and East Hartford Police Departments. The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Elena L. Coronado.
Prattville Woman Pleads Guilty to Filing Fraudulent Tax ReturnRead the Press Release
Montgomery, Alabama - On Monday, April 29, 2019, Candace Brie Betances, 42, of Prattville, Alabama pleaded guilty to submitting false claims to the Internal Revenue Service (IRS) seeking tax refunds, announced United States Attorney Louis V. Franklin, Sr., and IRS Criminal Investigation Special Agent in Charge Thomas J. Holloman.
The guilty plea comes after Betances was indicted by a federal grand jury in February of 2019 on four counts of making false claims against the government. Court documents show that in July 2015 she filed a tax return for the 2013 tax year and claimed that her employer withheld $1,152,320.00 in federal taxes. Based on this false statement regarding her withholdings, she requested that the United States Treasury pay her $253,080.00. When filing the return, Betances knew the claim was false, that the withholding amount was not accurate, and that she was not owed the tax refund. Fortunately, the IRS detected the fraud and did not pay the requested refund.
Betances’s sentencing hearing will occur in the next few months. At that hearing, Betances will be facing up to five years in prison and substantial fines.
“By making false statements on her tax return, Ms. Betances was attempting to defraud the government and steal from every American taxpayer,” stated U. S. Attorney Franklin. “I am pleased that the Internal Revenue Service was able to prevent the loss of tax dollars in this case and I pledge that my office will prosecute anyone that wants to use the United States Treasury as his or her own piggy bank.”
“This plea is an important victory for America's taxpayers who play by the rules and have no tolerance for those who make up their own rules,” said Special Agent in Charge Holloman. “This investigation serves to remind us that there is no such thing as free money and there are no awards or incentives for creativity when it comes to crime. We will continue to utilize our resources and work with the U.S. Attorney’s Office in holding those accountable who attempt to defraud the government and steal from the American taxpayer.”
The IRS’s Criminal Investigation Division investigated the case. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Philadelphia Man Pleads Guilty to Methamphetamine and Gun PossessionRead the Press Release
Jackson, Miss. – Chaddis Demond McAfee, 37, of Philadelphia, pled guilty today before U.S. District Judge Carlton W. Reeves, to possession with intent to distribute 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On December 11, 2017, agents with the Mississippi Bureau of Narcotics went to McAfee’s home to serve an arrest warrant. Following the arrest of McAfee, agents recovered over 700 grams of methamphetamine, 185 grams of marijuana, hydrocodone and alprazolam, as well as a Taurus, Model 85, .38 special pistol.
“Our state’s battle against methamphetamine is being fueled in part by callous criminals like this, which is killing our citizens, tearing apart families, and destroying communities. I am thankful for our prosecutor and law enforcement partners for taking this dealer in poison off our streets and safeguarding our communities,” said U.S. Attorney Hurst.
“Methamphetamine has devastated countless communities due to the dramatic health and public safety consequences that typically accompany its introduction into an area,” said Special Agent in Charge of Homeland Security Investigations New Orleans Jere T. Miles. “Today’s guilty plea stems from an extensive HSI effort with its federal, state and local partners to dismantle a drug trafficking organization that decimated parts of Mississippi and Alabama with methamphetamine smuggled into the U.S. from Mexico. This operation is a testament to the seamless partnership between HSI, the Mississippi Bureau of Narcotics and the Drug Enforcement Administration, and we are thankful for their assistance as well as the U.S. Attorneys’ to improve the lives of law-abiding residents throughout Mississippi and Alabama.”
McAfee was charged in a four count indictment that was filed on April 4, 2018. He will be sentenced by Judge Reeves on July 31, 2019 and faces a maximum penalty of life in prison and up to a $10,000,000 fine.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This OCDETF case is a result of a joint investigation by the Homeland Security Investigations, the Drug Enforcement Administration and the Mississippi Bureau of Narcotics. Assisting agencies include the U.S. Marshals Service, Gulf Coast Regional Fugitive Task Force, Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville Police Department, and the Mississippi Highway Patrol. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
Owner of Florida Medical Clinic Sentenced to PrisonRead the Press Release
WASHINGTON – An owner of a Florida medical clinic was sentenced to serve 91 months in prison today for her role in a $2.5 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.
Juliette Anais Tamayo, 54, the owner of Miami-based clinic Sunshine Medical Care Group Inc. (Sunshine), was sentenced by U.S. District Judge Cecilia Altonaga of the Southern District of Florida. Judge Altonaga also ordered Tamayo to pay $2.5 million in restitution. Tamayo pleaded guilty in February 2019 to one count of conspiracy to commit health care fraud and wire fraud. Also, Tamayo previously pleaded guilty to conspiracy to pay and receive kickbacks and to defraud the United States.
Tamayo was charged in a December 2018 superseding indictment with charges stemming from her involvement in a Part A home health care and Part B medical services fraud scheme in which she sold medically unnecessary home health care prescriptions to home health agency owners who in turn billed Medicare. According to her admissions made as part of her separate pleas to the health care fraud and kickback conspiracies, Tamayo solicited and accepted kickbacks from patient recruiters and from the owners of several Miami-area home health agencies in exchange for providing prescriptions for home health services to patients at Sunshine. The prescriptions, in turn, were used by the home health agencies to bill Medicare for home health services purportedly provided to Medicare beneficiaries. Tamayo paid a portion of the kickbacks she received from the home health agencies to physicians who worked at Sunshine to induce them to write the fraudulent prescriptions. In addition, Sunshine billed Medicare directly for medical services purportedly provided at the clinic that were not necessary and/or were not provided.
The case was investigated by the FBI, HHS-OIG, and USSS. Trial Attorneys Adam G. Yoffie, Gary A. Winters and Sara Clingan of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida handled the asset forfeiture proceedings.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Monroe felon sentenced to 71 months for possessing two handguns, ammunition and bullet drumRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced today that Kendrick Darnell Williams, 27, of Monroe, was sentenced to five years and 11 months in prison by U.S. District Judge Terry Doughty for possessing two handguns, multiple rounds of ammunition and a large capacity drum magazine. He was also sentenced to three years of supervised release.
Monroe police officers stopped a car on October 17, 2017 for a traffic violation, and Kendrick Williams jumped out of the passenger door and ran. Officers caught Williams and brought him back to the scene where they searched the car and found a loaded Ruger .357-caliber revolver and a loaded Smith & Wesson .9 mm-caliber pistol in a natural void behind the glove compartment. Officers also found a 60-round Magpul drum-style magazine in the back seat, one round of .45-caliber ammunition, one round of .380-caliber ammunition and eight rounds of .40-caliber ammunition in the trunk. When officers checked the status of the firearms, the Smith & Wesson pistol came back stolen. Williams admitted to handling the Smith & Wesson pistol before police stopped the vehicle.
Williams is a convicted felon and prohibited from possessing a firearm. Williams pleaded guilty to aggravated second-degree battery in Ouachita Parish on April 26, 2012. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. He pleaded to the federal charges on January 30, 2019.
The ATF, Ouachita Parish Metro Narcotics Unit and the Monroe Police Department conducted the investigation. Assistant U.S. Attorney Mike O’Mara prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mississippi Tax Return Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
WASHINGTON – A former resident of Durant, Mississippi, was sentenced yesterday to 60 months in prison for preparing and filing a fraudulent claim for a tax refund with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Mike Hurst of the Southern District of Mississippi.
“Dishonest tax return preparers cause serious financial harm to our country,” said Principal Deputy Assistant Attorney General Zuckerman. “The Tax Division and its partners in the U.S. Attorney’s Offices and the Internal Revenue Service are committed to the prosecution of those return preparers, who choose to commit fraud.”
“By lying and cheating our tax system, this defendant stuck her hand in every American’s pocketbook and stole money that should have gone to our families, our communities and our kids’ futures,” said U.S. Attorney Hurst. “Those who put their greed above their duty and obligation to prepare and file returns on behalf of others will experience swift and certain justice in this district. I commend our prosecutors, DOJ trial attorneys, and IRS special agents for quickly bringing this tax cheat to justice.”
“Teresa Chism was part of a significant tax fraud scheme. Mo’ Money franchise tax return preparers defrauded American taxpayers by soliciting the issuance of undeserved tax refunds,” said Special Agent in Charge, Thomas J. Holloman III, IRS Criminal Investigation. “It is a great day for every taxpaying citizen when a participant in their criminal scheme is held accountable. With the recent conclusion of tax filing season, others who have attempted similar thefts from the US Treasury should be aware that the special agents of IRS – Criminal Investigation will continue the aggressive pursuit of those individuals who attempt to defraud America's tax system."
According to documents and information provided to the court, from 2005 through 2015, Teresa C. Chism operated tax return preparation businesses in Mississippi under the names Mo’ Money, MoneyCo USA, and Lady T Taxes. Chism falsified her clients’ returns in different ways in order to increase their tax refunds, including reporting false wages, self-employment income and expenses, and education credits. In total, Chism prepared more than 550 false income tax returns, seeking over $3.5 million in fraudulent tax refunds.
In addition to the term of prison imposed, U.S. District Judge Henry T. Wingate ordered Chism to serve three years of supervised release and pay $135,134 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hurst commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney William Montague of the Tax Division and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi, who prosecuted the case.
Mississippi Tax Return Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A former resident of Durant, Mississippi, was sentenced yesterday to 60 months in prison for preparing and filing a fraudulent claim for a tax refund with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Mike Hurst of the Southern District of Mississippi.
“Dishonest tax return preparers cause serious financial harm to our country,” said Principal Deputy Assistant Attorney General Zuckerman. “The Tax Division and its partners in the U.S. Attorney’s Offices and the Internal Revenue Service are committed to the prosecution of those return preparers, who choose to commit fraud.”
“By lying and cheating our tax system, this defendant stuck her hand in every American’s pocketbook and stole money that should have gone to our families, our communities and our kids’ futures,” said U.S. Attorney Hurst. “Those who put their greed above their duty and obligation to prepare and file returns on behalf of others will experience swift and certain justice in this district. I commend our prosecutors, DOJ trial attorneys, and IRS special agents for quickly bringing this tax cheat to justice.”
“Teresa Chism was part of a significant tax fraud scheme. Mo’ Money franchise tax return preparers defrauded American taxpayers by soliciting the issuance of undeserved tax refunds,” said Special Agent in Charge, Thomas J. Holloman III, IRS Criminal Investigation. “It is a great day for every taxpaying citizen when a participant in their criminal scheme is held accountable. With the recent conclusion of tax filing season, others who have attempted similar thefts from the US Treasury should be aware that the special agents of IRS – Criminal Investigation will continue the aggressive pursuit of those individuals who attempt to defraud America's tax system."
According to documents and information provided to the court, from 2005 through 2015, Teresa C. Chism operated tax return preparation businesses in Mississippi under the names Mo’ Money, MoneyCo USA, and Lady T Taxes. Chism falsified her clients’ returns in different ways in order to increase their tax refunds, including reporting false wages, self-employment income and expenses, and education credits. In total, Chism prepared more than 550 false income tax returns, seeking over $3.5 million in fraudulent tax refunds.
In addition to the term of prison imposed, U.S. District Judge Henry T. Wingate ordered Chism to serve three years of supervised release and pay $135,134 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hurst commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney William Montague of the Tax Division and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Michigan Healthcare Management Company Owner and Operator Plead Guilty to Payroll Tax FraudRead the Press Release
A resident of Ft. Lauderdale, Florida, and a resident of Boca Raton, Florida, each pleaded guilty today in the Eastern District of Michigan to failing to collect, truthfully account for, and pay over payroll taxes announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents, Integrated HCS Practice Management LLC (Integrated), was a Southfield, Michigan, company that provided management services to healthcare providers. As the managing partner of Integrated, a partial owner of the business, and an individual who exercised control over the business’s finances, Edward Cespedes was responsible for Integrated’s payroll taxes. Payroll taxes include federal income, Social Security, and Medicare taxes withheld from the wages paid to employees of the business. Joseph DeSanto also had influence over Integrated’s expenditure of funds, and was responsible for the payroll taxes. Despite their responsibilities, Cespedes and DeSanto failed to cause Integrated to timely pay its payroll taxes to the Internal Revenue Service (IRS) for the third quarter of 2013, the fourth quarter of 2013, and the first quarter of 2014.
Joseph DeSanto also pleaded guilty to one count of failure to file his personal tax return for 2013.
Sentencing is scheduled for Feb. 20, 2020. Both Cespedes and DeSanto face a maximum sentence of five years of imprisonment on the payroll tax charge, and DeSanto faces up to an additional one year of imprisonment on the charge related to his failure to file a tax return.
Acting Deputy Assistant Attorney General Goldberg commended special agents of the Internal Revenue Service’s Criminal Investigation Division and the Federal Bureau of Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone, who are prosecuting the case.
Mesa Man Sentenced to 15 Years for ManslaughterRead the Press Release
PHOENIX – On April 30, 2019, Robert Lee Jose, 30, of Mesa, Ariz., was sentenced by U.S. District Judge Neil V. Wake to 15 years in prison, to be followed by three years of supervised release. Jose had previously pleaded guilty to voluntary manslaughter. On March 28, 2018, Jose shot the victim in the head following a short, heated argument, killing the victim. Both Jose and the victim are members of the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-497-PHX-NVW
RELEASE NUMBER: 2019-058_Jose
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Mercer County Felon Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Mercer County, West Virginia, felon who possessed a firearm in May 2018, was sentenced today to 37 months in prison, announced United States Attorney Mike Stuart.
Kelvin Maurice Freeman, 29, previously admitted that on May 31, 2018, he possessed a firearm while he was traveling on Interstate 64 in Cabell County, West Virginia. Freeman was prohibited from possessing any firearm under federal law because he was convicted in April 2018 for Child Endangerment in Tazewell County, Virginia.
The West Virginia State Police conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Manhattan U.S. Attorney Announces Lawsuit Against Chestnut Petroleum Distributor, Inc., for Violations of the Resource Conservation and Recovery ActRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York (“SDNY”), and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against Chestnut Petroleum Distributor, Inc., and its affiliates CPD Energy Corp., CPD NY Energy Corp., Chestnut Mart of Gardiner, Inc., Chestnut Marts, Inc., Greenburgh Food Mart, Inc., Middletown Food Mart, Inc., and NJ Energy Corp. (collectively, “Defendants”), for violating the Resource Conservation and Recovery Act (“RCRA”) at 20 separate gas stations within the Southern District of New York and adjoining districts.
U.S. Attorney Geoffrey S. Berman stated: “As alleged in the complaint, Defendants repeatedly failed to comply with regulations designed to prevent gasoline leaks from threatening public health and the environment. Today’s lawsuit seeks to hold Defendants accountable for their conduct and ensure that the public is protected in the future.”
EPA Regional Administrator Peter D. Lopez said: “Failure to monitor and maintain tanks to prevent leaks can pose a serious safety risk, as the leaking underground tanks can release toxic components that can seep into the soil and the groundwater. This lawsuit seeks to hold the companies responsible for properly managing their tanks to reduce these risks where these gas stations are located.”
Petroleum products such as gasoline contain chemical compounds that pose substantial threats to human health. Service stations typically store gasoline in underground storage tanks. When operated conscientiously and monitored closely, underground storage tanks are a safe and effective means to store gasoline. But when those tanks are not subjected to basic operational safeguards, they can endanger the public and the environment, for example by leaking petroleum into the water supply, discharging toxic vapors into the air, or even triggering fires or explosions. EPA’s regulations under RCRA are designed to protect the public by requiring underground storage tank operators to reduce the likelihood of leaks, monitor for leaks so they can promptly be addressed, and maintain adequate insurance to conduct corrective action and compensate injured third parties when a leak occurs.
As alleged in the complaint filed in federal district court today, Defendants repeatedly violated RCRA and its related regulations at various times from 2011 to 2014. These violations included failing to perform release (i.e., leak or spill) detection, and failing to maintain and provide records of release detection monitoring. In some instances, Defendants failed to secure underground storage tanks that were temporarily closed, and failed to investigate or report suspected releases or unusual operating conditions. Defendants also failed at times to maintain insurance policies sufficient to take corrective action and compensate third parties for bodily injury and property damage caused by accidental releases arising from the operation of the underground storage tanks.
The lawsuit seeks injunctive relief and an order imposing civil penalties for Defendants’ violations.
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This case is being handled by the Office’s Environmental Protection Unit. Assistant United States Attorneys Christopher Connolly and Jennifer C. Simon are in charge of the case.
Man Convicted of Filing False Tax ReturnRead the Press Release
HOUSTON – A local man has entered a guilty plea to filing false joint 2015 tax return, admitting he falsely claimed a tax refund of more than $15,000, announced U.S. Attorney Ryan K. Patrick along with Acting Special Agent in Charge Sarah Kull of IRS-Criminal Investigation (CI).
According to the plea agreement filed in the record of the case, Christopher Hatton falsely inflated the amount of federal income tax withholdings and unreimbursed employee expenses claimed on his joint 2015 income tax return. The inflations were more than $38,000 each in withholdings and unreimbursed employee expenses.
Hatton’s tax return claimed a false income tax refund of in excess of $15,000 when he actually owed more than $18,000 in income taxes for the year.
The plea agreement further states when audited, Hatton provided an altered form W-2 and altered bank statements to support the false amounts claimed on his 2015 tax return. Hatton further admitted he also filed tax returns for 2012, 2013, 2014 and 2016, claiming false items.
The plea agreement further indicates the total tax loss Hatton caused the IRS was in excess of $126,000.
U.S. District Judge Nancy Atlas accepted the guilty plea and has sentencing for July 17, 2019. At that time, Hatton faces up to three years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuted the case.
Local Medical Doctor Sentenced for Illegally Dispensing and Distributing Controlled Substances by Prescriptions and Money LaunderingRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that WAYNE JEROME CELESTINE, M.D., age 58, a physician who practiced in Gretna and resided in New Orleans, was sentenced today after previously pleading guilty to two counts in the Second Superseding Indictment, which charged him with illegally dispensing controlled substances and money laundering.
U.S. District Judge Jane Triche Milazzo sentenced DR. CELESTINE to (7) seven years (84 months) imprisonment. On Monday, April 30, 2018, DR. CELESTINE was arrested on charges of distribution of controlled substances. According to court records, DR. CELESTINE illegally dispensed and conspired with others to illegally dispense controlled substances, including oxycodone, a Schedule II drug controlled substance. On November 29, 2018, DR. CELESTINE plead guilty to two counts of the Second Superseding Indictment.
In addition to the (7) seven year term of incarceration, DR. CELESTINE was fined $20,000 and will face a term of supervised release of (3) three years, following the term of imprisonment. Pursuant to the terms of the plea agreement, DR. CELESTINE has been ordered to forfeit to the United States: over $1 million in seized currency, investment accounts, and negotiable instruments; and over $1 million in seized vehicles, residences, and commercial properties. By virtue of the plea agreement, DR. CELESTINE acknowledged that these assets represent proceeds and/or facilitating property of the crimes for which he has pled guilty.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, Internal Revenue Service, Jefferson Parish Sheriff’s Office, Harahan Police Department, Westwego Police Department, Louisiana State Police, St. Bernard Parish Sheriff’s Office, New Orleans Police Department, and New Orleans District Attorney’s Office in investigating this matter. Assistant United States Attorneys John F. Murphy and Andre J. Lagarde are in charge of the prosecution.
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Lawrence Man Sentenced for Conspiracy to Distribute FentanylRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for his role in a fentanyl distribution conspiracy in the Merrimack Valley.
Antonio Camillo, 21, was sentenced by U.S. District Court Judge Denise J. Casper to 34 months in prison and three years of supervised release. On Feb. 4, 2019, the defendant pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl and one count of distribution of and possession with intent to distribute fentanyl.
In September 2018, Camillo sold nearly 40 grams of fentanyl to an undercover police officer during a months-long federal investigation. Camillo was part of a drug organization that was distributing large quantities of fentanyl throughout the Merrimack Valley. In October 2018, Camillo was charged and arrested along with dozens more during a federal sweep targeting impact players and repeat offenders in and around the City of Lawrence.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Laurinburg Man Sentenced to 96 Months in Prison for Firearms and Drug ChargesRead the Press Release
GREENSBORO, N.C. – A Laurinburg man who sold firearms and cocaine was sentenced to federal prison Tuesday, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
TONY DEVONTA WHITE EVERETTE, 26, pleaded guilty on December 28, 2018, to two counts of possession of a firearm by a previously convicted felon, two counts of distribution of cocaine base (“crack”), one count of distribution of cocaine, and one count of possessing a firearm during and in relation to a drug trafficking crime. On April 29, 2018, EVERETTE was sentenced by United States District Judge William L. Osteen Jr. to 96 months of imprisonment, followed by 5 years of supervised release.
On three occasions beginning on April 18, 2018, and ending onMay 18, 2018, EVERETTE sold firearms, crack cocaine, and cocaine powder to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives. EVERETTE sold two handguns, approximately 74 grams of crack cocaine, and approximately 27 grams of cocaine hydrochloride (powder) during that period, with all of those sales occurring in Scotland County, North Carolina. EVERETTE had previously been convicted of possession of a firearm by a felon in state court in Scotland County.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Laurinburg Police Department, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy for the Middle District of North Carolina.
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Lake Worth Resident Sentenced to Life in Prison for Sex Trafficking and ObstructionRead the Press Release
A Lake Worth resident was sentenced to life in prison today, after having been convicted at trial of sex trafficking and obstruction of a sex trafficking investigation.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, David Aronberg, State Attorney for Palm Beach County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) made the announcement.
Alston Orlando Leroy Williams, 42, of Lake Worth, Florida, was sentenced by U.S. District Judge Robin L. Rosenberg to five life sentences and an additional 20 years in prison, to be followed by a lifetime of supervised release (Case No. 18-CR-80053). In December of 2018, Williams was convicted by a federal trial jury of two counts of sex trafficking of a minor in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(2), three counts of sex trafficking by force, fraud or coercion in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(1), and one count of obstructing a human trafficking investigation, in violation of Title 18, United States Code, Section 1591(d).
According to evidence and testimony presented at trial, from 2008 through 2017, Williams trafficked multiple women, including two juveniles, for commercial sex throughout Florida. Williams had the women live at his homes and travel to hotels and other locations to meet adult men and engage in sexual acts for money. Williams used force, violence and coercion to traffic the women and kept all of the money earned by the victims. He was arrested on November 29, 2017 on related state charges, before being charged and convicted federally.
U.S. Attorney Fajardo Orshan commended the investigation efforts of the FBI, PBSO, and the Palm Beach County Human Trafficking Task Force in this matter. Mrs. Fajardo Orshan thanked Palm Beach County State Attorney Dave Aronberg for the 15th Judicial Circuit and his staff for their assistance with this investigation. This case was prosecuted by Assistant U.S. Attorney Gregory Schiller and Special Assistant U.S. Attorney Justin Hoover.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Kissimmee Man Convicted for Sending Death Threats to Senator Bernie SandersRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces that a federal jury yesterday found Robert Francis Pratersch (57, Kissimmee) guilty of threatening a federal official and interstate transmission of a threat to injure. Pratersch faces a maximum penalty of 15 years in federal prison. His sentencing hearing is scheduled for July 16, 2019.
According to evidence presented at trial, Pratersch left three threatening voicemail messages at the Office of Senator Bernie Sanders in Burlington, Vermont. These profanity-laced messages included a threat to “behead” Senator Sanders, “ISIS-style,” and videotape the execution. The messages also included numerous anti-Semitic remarks directed at Senator Sanders.
This case was investigated by the Federal Bureau of Investigation and the United States Capitol Police. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.
Kentucky Deputy Jailer Convicted of Assaulting InmateRead the Press Release
A federal jury in Paducah, Kentucky, convicted a deputy jailer at the Fulton County Detention Center of violating the civil rights of an inmate by assaulting him with a dangerous weapon. The jury convicted James Eakes, 54, of willfully depriving an inmate of the right to be free from cruel and unusual punishment. According to evidence and testimony, Eakes repeatedly tased inmate L.B. after L.B. cursed at him.
“The Department of Justice does not tolerate any physical abuse of inmates, especially by a correctional officer entrusted to their care,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to uphold the Constitution and obtain justice for the victims of civil rights abuses.”
“The rule of law applies equally to all persons in our Commonwealth,” said U.S. Attorney Russell Coleman. “And we will enforce the law without regard to position or office held.”
The evidence and testimony revealed that Eakes was first called to L.B.’s cell because L.B. told guards he was suicidal. As required by the jail’s procedures, Eakes and two other female deputy jailers then removed all of L.B.’s possessions from his cell and made L.B. strip naked. Eakes left the cell and closed the door, which automatically locked, leaving L.B. in his cell with only an anti-suicide garment.
The evidence and testimony showed that, after he was locked in his cell, L.B. cursed at Eakes from behind the cell door. Eakes then ordered that the door be unlocked, removed his Taser from his holster, opened the door, and immediately shot L.B. with his Taser. Eakes then entered L.B.’s cell, and, while activating the Taser, repeatedly yelled at L.B. not to curse at him again. Despite the fact that L.B. took no aggressive action towards Eakes and remained slumped against the cell wall, Eakes tased L.B. two additional times.
Eakes faces a maximum term of imprisonment of 10 years. Sentencing has been scheduled for Aug. 30.
The FBI conducted the investigation. Assistant United States Attorney Madison Sewell of the Western District of Kentucky and Trial Attorney Zachary Dembo of the Civil Rights Division prosecuted the case. Trial Attorney Sanjay Patel of the Civil Rights Division also assisted in the investigation.
Justice Department Reaches Settlement Agreement with Alaska Native Corporation over Allegations of Violating the Federal False Claims ActRead the Press Release
Kikiktagruk Inupiat Corporation (“KIC”), an Alaska Native Corporation, and KIC Development LLC (“KICD”), a subsidiary of KIC, have agreed to pay $2.025 million to settle allegations that kickbacks were paid by KICD so that the company would obtain diverted “set aside” contracts to do construction work at Ft. Bliss military installation in El Paso, Texas, announced U.S. Attorney John F. Bash.
“Kickbacks corrupt the public trust in government contracting,” said U.S. Attorney Bash. “It is critical that we work to ensure the award of any government contract is not influenced by illegal kickbacks or arrangements.”
As an Alaska Native Corporation, KIC is deemed a small business concern which qualifies for Small Business Administration sole-source, no-bid government (“set aside”) contracts. KICD was a wholly and/or majority-owned subsidiary of KIC and therefore also qualified for the government set-aside contracts. KICD has since filed articles of dissolution in Alaska.
On January 14, 2010, Susann Campbell filed a qui tam action in the U.S. District Court for the Western District of Texas, alleging that KICD, through its employees Anthony Acri, Christine Hayes and Earl Hall, paid illegal kickbacks and bribes to James G. Tuskan, a contract employee with the U.S. Army Corp of Engineers. Through this bribery scheme, Tuskan allegedly used his position as a contract employee with the U.S. Army Corp of Engineers to steer the “set aside” government contracts issued out of Ft. Bliss to KICD. Tuskan also allegedly provided KICD with confidential government information, thereby ensuring that KICD would be awarded the contracts.
The FBI conducted an extensive investigation into the alleged bribery scheme which led to the criminal prosecution of Tuskan, Acri, Hayes, and Hall. All four individuals pleaded guilty to the bribery scheme in 2016.
At the conclusion of the criminal case, the U.S. Attorney’s Office, in conjunction with the DOJ Civil Division, resumed its civil investigation against KICD and the four named individuals in an effort to recover some of the federal funds that were illegally obtained by the defendants. The U.S. has now reached a settlement with KICD and its parent corporation KIC for a total of two million and twenty five thousand dollars ($2,025,000.00)
This matter was investigated by the Federal Bureau of Investigations, the Defense Criminal Investigative Service and the Army Criminal Investigation Command, Major Procurement Fraud Unit, and Small Business Administration Office of Inspector General.
The claims asserted against the defendants are allegations only; there has been no determination of liability. The civil settlement was reached by Assistant United States Attorney Eduardo R. Castillo.
Judge Hands Down 88 Months Prison Sentence to Tifton Woman Caught Hauling Kilos of Meth, Cocaine on I-75Read the Press Release
MACON – A Tifton woman was sentenced to 88 months in prison Wednesday on a drug charge after she was arrested carrying four kilos of meth and cocaine in her car with the intent to distribute the illegal drugs, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Anna Maria Lopez-Vazquez, 32, of Tifton, GA was sentenced by the Honorable Marc Treadwell in Macon federal court this morning. She had previously entered a guilty plea to one count Possession with Intent to Distribute Methamphetamine on February 13, 2019. There is no parole in the federal prison system.
According to her signed plea agreement, on May 18, 2017, Anna Maria Lopez-Vasquez was driving a Yukon SUV southbound on I-75 in Peach County, Georgia. A Peach County deputy on patrol in the area spotted the SUV with an obscured license and failing to maintain its lane of traffic, both traffic infractions in Georgia. During the traffic stop, the deputy smelled a strong odor of marijuana. Following a legal search of the vehicle, 2,942 grams of methamphetamine and 999 grams of cocaine were found in three containers, sealed with plastic wrap, hidden inside a sports bag. Ms. Lopez-Vasquez was arrested. In a post-arrest interview, she admitted that the drugs belonged to her.
“Methamphetamine is killing more and more Georgians,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “It is imperative that we get this poison off our streets. Our office will continue to work with federal, state and local law enforcement to identify, arrest and prosecute those who choose to sell illegal drugs in our communities. Make no mistake: if you choose to sell methamphetamine, you will go to federal prison for a long time. I applaud the good work of the Peach County Sheriff’s Office in this matter.”
“Routine traffic stops are valuable. In this case, we were able to get 3 kilos of meth and 1 kilo of cocaine out of our communities,” said Sheriff Terry Deese, Peach County Sheriff’s Office. “Ms. Lopez-Vasquez is from a small town in South Georgia, and taking that much dope off the streets will have a big impact on the drug problem in that town. Our deputies are trained to properly and legally identify certain conditions in a traffic stop that might alert them to illegal activities. In this case, our deputies found a massive amount of deadly poison that will no longer be peddled to our children.”
The case is being investigated by The Drug Enforcement Agency and the Peach County Sheriff’s Office. Assistant U.S. Attorney Charles Calhoun is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Insulation Contractor Executive Pleads Guilty to Antitrust and Fraud ChargesRead the Press Release
WASHINGTON – Michael S. Flynn, executive and co-owner of an insulation contractor, pleaded guilty today in Bridgeport, Connecticut, for his role in multiple schemes to rig bids in violation of the antitrust laws and to engage in criminal fraud on insulation contracts, marking the second conviction in this ongoing investigation, the Department of Justice announced.
According to court documents, from October 2011 and continuing until March 2018, Flynn, of Ridgefield, Connecticut, conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut, New York, and Massachusetts. The conspirators discussed prices and agreed on bids that inflated prices to their customers by at least 10%. In order to conceal their actions, the conspirators perpetrated the bid-rigging and fraud schemes using burner phones and an encrypted disappearing messaging app.
“Today’s guilty plea is the second relating to a $45 million scheme to cheat New England schools, hospitals, and other businesses by agreeing to fix prices on insulation contracts in violation of the antitrust laws,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “As this prosecution shows, the Justice Department and our law enforcement partners, including the FBI and DCIS, will use every available resource to detect and bring to justice individuals who attempt to hide their criminal conduct by using high-tech encryption apps, burner phones, or any other means.”
“This defendant profited handsomely by colluding with other insulation contractors and inflating bids on $45 million worth of insulation jobs,” said U.S. Attorney John H. Durham for the District of Connecticut. “The scheme victimized hospitals, universities and businesses throughout New England. I thank the FBI, DCIS, and the Antitrust Division for their ongoing efforts to bring the perpetrators of this brazen scheme to justice.”
“Based on the great work of joint law enforcement efforts, the judicial system has clearly confirmed that crimes of deceit and fraud against hard working members of our communities will not go unpunished,” said Brian C. Turner, Special Agent in Charge of FBI’s New Haven Field Office.
“Ensuring the integrity of the U.S. Department of Defense’s (DoD) procurement process is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “Bid-rigging and fraud schemes, such as the ones in this case, can cause serious economic damage to the DoD’s resources, which ultimately harms the American taxpayer and the U.S. military. Today’s guilty plea is the direct result of a joint effort and demonstrates the DCIS’ commitment to work with the FBI, the Antitrust Division, and the U.S. Attorney’s Office to investigate and prosecute individuals and companies that engage in fraudulent activity impacting the DoD.”
The antitrust charge announced today carries a maximum penalty of 10 years in prison and a fine of $1 million for individuals. The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a fine of $250,000. The fines for the antitrust and fraud conspiracy charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
In addition to his guilty plea, Flynn has agreed to pay restitution to the victims and to resolve civil forfeiture cases connected to the criminal charges. Flynn agreed to settle the pending forfeiture action on his home for $327,500 and to forfeit all of his seized bank accounts.
The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the United States Attorney’s Office for the District of Connecticut, the FBI’s New Haven Division, and the Defense Criminal Investigative Service. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s New York Section at 212-335-8035, or visit http://www.justice.gov/atr/contact/newcase.html.
Insulation Contractor Executive Pleads Guilty to Antitrust and Fraud ChargesRead the Press Release
Michael S. Flynn, executive and co-owner of an insulation contractor, pleaded guilty today in Bridgeport, Connecticut, for his role in multiple schemes to rig bids in violation of the antitrust laws and to engage in criminal fraud on insulation contracts, marking the second conviction in this ongoing investigation, the Department of Justice announced.
According to court documents, from October 2011 and continuing until March 2018, Flynn, of Ridgefield, Connecticut, conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut, New York, and Massachusetts. The conspirators discussed prices and agreed on bids that inflated prices to their customers by at least 10%. In order to conceal their actions, the conspirators perpetrated the bid-rigging and fraud schemes using burner phones and an encrypted disappearing messaging app.
“Today’s guilty plea is the second relating to a $45 million scheme to cheat New England schools, hospitals, and other businesses by agreeing to fix prices on insulation contracts in violation of the antitrust laws,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “As this prosecution shows, the Justice Department and our law enforcement partners, including the FBI and DCIS, will use every available resource to detect and bring to justice individuals who attempt to hide their criminal conduct by using high-tech encryption apps, burner phones, or any other means.”
“This defendant profited handsomely by colluding with other insulation contractors and inflating bids on $45 million worth of insulation jobs,” said U.S. Attorney John H. Durham for the District of Connecticut. “The scheme victimized hospitals, universities and businesses throughout New England. I thank the FBI, DCIS, and the Antitrust Division for their ongoing efforts to bring the perpetrators of this brazen scheme to justice.”
“Based on the great work of joint law enforcement efforts, the judicial system has clearly confirmed that crimes of deceit and fraud against hard working members of our communities will not go unpunished,” said Brian C. Turner, Special Agent in Charge of FBI’s New Haven Field Office.
“Ensuring the integrity of the U.S. Department of Defense’s (DoD) procurement process is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “Bid-rigging and fraud schemes, such as the ones in this case, can cause serious economic damage to the DoD’s resources, which ultimately harms the American taxpayer and the U.S. military. Today’s guilty plea is the direct result of a joint effort and demonstrates the DCIS’ commitment to work with the FBI, the Antitrust Division, and the U.S. Attorney’s Office to investigate and prosecute individuals and companies that engage in fraudulent activity impacting the DoD.”
The antitrust charge announced today carries a maximum penalty of 10 years in prison and a fine of $1 million for individuals. The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a fine of $250,000. The fines for the antitrust and fraud conspiracy charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
In addition to his guilty plea, Flynn has agreed to pay restitution to the victims and to resolve civil forfeiture cases connected to the criminal charges. Flynn agreed to settle the pending forfeiture action on his home for $327,500 and to forfeit all of his seized bank accounts.
The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the United States Attorney’s Office for the District of Connecticut, the FBI’s New Haven Division, and the Defense Criminal Investigative Service. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s New York Section at 212-335-8035, or visit http://www.justice.gov/atr/contact/newcase.html.