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Friday 26 April 2019
Founder of Local Technology Company Charged with Operating a $60 Million Investment FraudRead the Press Release
Assistant U.S. Attorney Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – April 26, 2019
SAN DIEGO – Jonny Ngo, the former president and chief executive officer of NL Technology, LLC, was arraigned today on a 21-count indictment charging him with wire fraud, mail fraud and money laundering in connection with operating a $65 million investment fraud. The hearing took place in federal court before U.S. Magistrate Judge Mitchell D. Dembin after the indictment was unsealed.
According to the indictment, Ngo induced his victims to invest funds in various short-term investment contracts by making false representations, including that: (a) investor money would be used to fund wholesale purchase orders of smartphone screens and other electronic goods; (b) NL Technology was a regular supplier of smartphone screens to a number of buyers, including two buyers who each ordered approximately $2 million of product from NL Technology; (c) all wholesale orders funded by investor money was pre-purchased by NL Technology clients; and (d) the quality of the products and safety of investor funds used to purchase the products was guaranteed by a third-party escrow company.
The indictment further alleges that Ngo created counterfeit invoices falsely indicating that NL Technology had substantial purchase orders from alleged wholesale companies. The indictment alleges that Ngo also provided false financial statements purportedly certified by an accountant showing NL Technology earned income from its wholesale business totaling $12.5 million in 2015 and $15.4 million in 2016. Moreover, as alleged, Ngo fabricated bank statements or screenshots from bank statements held in the name of NL Technology with individual line items altered to appear as legitimate wholesale business transactions. Lastly, Ngo created false checks from wholesale companies allegedly doing business with NL Technology.
To further his investment fraud, Ngo and others allegedly told investors that they could roll over their investments into future investment contracts with NL Technology, when in fact no such future investments were possible. Also, Ngo allegedly lulled investors about the continued viability of NL Technology through materially false representations, including that NL Technology had an outstanding purchase order from a smartphone repair company for approximately $300,000, when in fact, no such order existed.
Instead of investing the funds in the business, the indictment alleges that Ngo converted investor funds to his own personal use and benefit by spending the money on a home, luxury cars and gambling. As a result of his investment fraud, it is alleged that Ngo induced investors to part with more than $60 million, and ultimately caused millions of dollars in losses.
“Investment fraud has a long-lasting and devastating effect on victims in our community,” said U.S. Attorney Robert S. Brewer, Jr. “When these schemes are brought to our attention, we will work collaboratively with our law enforcement partners to unravel the fraud and hold those responsible for profiting from it.”
FBI Acting Special Agent in Charge Suzanne Turner said: “Mr. Ngo's alleged technology business scheme was, in fact, a plan to deceive investors, luring them into a false sense of security about their investments, falsifying documents to cover the lies and stealing the funds for personal use. The FBI will continue to identify and investigate those who defraud investors. We ask anyone who has information related to investor fraud submit a tip at https://tips.fbi.gov/.”
U.S. Postal Inspection Service Inspector in Charge Nichole Cooper stated: “Mr. Ngo is accused of a scheme that separated millions of dollars from consumers who believed they were making legitimate investments. However, those who commit crimes like this one fail to realize that Postal Inspectors and our federal law enforcement partners will discover these greedy schemes and will bring the culprits to justice for their crimes against unsuspecting investors.”
The Government moved to detain the defendant as a risk of flight. Judge Dembin set a detention hearing for Tuesday, April 30, 2019 at 9:30 a.m. before U.S. Magistrate Judge Ruben B. Brooks. The defendant will remain in custody until the hearing. Judge Dembin also scheduled a motion hearing/trial setting for June 7, 2019 at 11 a.m. before U.S. District Judge Jeffrey T. Miller.
DEFENDANT Case Number: 19CR1391-JM
Jonny Ngo Age: 32 San Diego, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1343 – Wire Fraud
Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release
Title 18, United States Code, Section 1341 – Mail Fraud
Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release
Title 18, United States Code, Section 1957 – Money Laundering
Maximum Penalties: 10 years’ in prison, a fine of $250,000, three years of supervised release
AGENCIES
Federal Bureau of Investigation
United States Postal Inspection Service
An indictment itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Former Tax Return Preparer Sentenced to Prison for Tax and Bankruptcy FraudRead the Press Release
A former tax return preparer in Shawnee, Kansas, was sentenced to 24 months in prison yesterday for preparing a false tax return and making a false bankruptcy declaration, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister of the District of Kansas.
According to documents filed with the court, Geoffrey Rotich owned and operated Inventax, a tax preparation business in Shawnee, Kansas. For tax years 2010 through 2012, Rotich filed at least 40 fraudulent individual income tax returns in an effort to increase the claimed refunds for himself or his clients. Rotich also knowingly filed a fraudulent bankruptcy petition, which failed to disclose his interest in Inventax and to fully identify all of his bank accounts.
In addition to the term of imprisonment, U.S. District Court Judge Daniel D. Crabtree ordered Rotich to serve two years of supervised release and to pay restitution in the amount of $86,523 to the Internal Revenue Service (IRS).
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS-Criminal Investigation and Homeland Security Investigations, who conducted the investigation, and Trial Attorney Timothy M. Russo of the Tax Division and Assistant U.S. Attorney D. Christopher Oakley of the District of Kansas, who prosecuted this case, and the U.S. Trustee’s Office in Wichita, Kansas for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Former S&P Analyst Convicted in Insider Trading SchemesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SEBASTIAN PINTO-THOMAZ, a former credit ratings analyst at Standard & Poor’s, was convicted today of participating in two schemes to trade on material, nonpublic information in advance of the Sherwin-Williams Company’s acquisition of the Valspar Corporation, following a seven-day jury trial before U.S. District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey Berman said: “Sebastian Pinto-Thomaz stole confidential information from his employer and passed it to two men he had known for years – and he did it for his own personal benefit. While the defendant attempted to blame his mother for this conduct at trial, as a unanimous jury found, it was Pinto-Thomaz who committed insider trading.”
According to the evidence presented during the trial and statements made in related court filings and proceedings:
Rating Evaluation Services and the Insider
When a company announces an acquisition, the acquiring company often seeks the opinion of a credit rating agency regarding the potential impact that the acquisition could have on the acquiring company’s creditworthiness. Therefore, companies often contact rating agencies before an acquisition is publicly announced. All the major rating agencies offer a service – sometimes known as a Rating Evaluation Service (“RES”) – that provides the company with a rating committee decision with respect to a proposed acquisition.
In March 2016, Standard and Poor’s (“S&P”), a credit rating agency in New York, New York, assigned SEBASTIAN PINTO-THOMAZ, a credit ratings analyst, to work on a RES for the Sherwin-Williams Company (“Sherwin-Williams”) in advance of its contemplated but unannounced acquisition of the Valspar Corporation (“Valspar”). In connection with this assignment, PINTO-THOMAZ received material, nonpublic information (the “Inside Information”) about Sherwin-Williams’s planned acquisition of Valspar prior to the public announcement of the acquisition. S&P’s written policies prohibited the unauthorized disclosure of confidential information, which included the Inside Information. During his tenure at S&P, PINTO-THOMAZ reviewed and certified his duties of loyalty and confidentiality to S&P and its clients.
The Insider Trading Scheme
In March 2016, PINTO-THOMAZ misappropriated the Inside Information about Sherwin-Williams’s acquisition of Valspar and passed it to Jeremy Millul, his friend, and Abell Oujaddou, his hairdresser, so that they could use it to make profitable trades in Valspar stock and options. On March 21, 2016, the first trading day after the public announcement of the acquisition, the price of Valspar stock increased approximately 23 percent over the prior day’s close.
Millul is a Manhattan jeweler who had a close personal friendship with PINTO-THOMAZ. After receiving a tip about the impending Valspar deal from PINTO-THOMAZ, Millul opened a brokerage account on March 13, 2016, and shortly thereafter purchased 480 shares of Valspar common stock. On March 18, 2016, the last trading day before the acquisition was publicly announced, Millul also purchased 75 out-of-the-money Valspar call options. After the acquisition was publicly announced, Millul sold his Valspar stock and options for approximately $106,806 in profits.
Oujaddou is a Manhattan hairstylist and salon owner who has known PINTO-THOMAZ for years, and who is close friends with PINTO-THOMAZ’s mother. During a haircut on March 8, 2016, or March 9, 2016, PINTO-THOMAZ provided Oujaddou with the Inside Information about the impending Valspar deal in exchange for a portion of his trading profits. Then, from March 10, 2016, through March 18, 2016, Oujaddou, who had never previously purchased Valspar or Sherwin-Williams securities, used the Inside Information he had received from PINTO-THOMAZ to purchase 8,630 shares of Valspar stock. After the acquisition was publicly announced, Oujaddou sold his Valspar shares for approximately $192,080 in profits. Following his successful trading, Oujaddou met PINTO-THOMAZ in the paint aisle of a hardware store and paid him a kickback.
Later, in June 2016, the Financial Industry Regulatory Authority (“FINRA”) sent S&P a list of individuals and entities that had traded in Valspar in advance of the public announcement of the acquisition (the “List”). S&P forwarded the List to its employees who had worked on the Sherwin-Williams RES, including PINTO-THOMAZ, asking the employees to respond by stating whether they had a past or present relationship with any individual or entity on the List. Although both Oujaddou and Millul were on the List, PINTO-THOMAZ denied having a relationship with anyone on the List.
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SEBASTIAN PINTO-THOMAZ, 32, of New York, New York, was convicted of two counts of conspiracy to commit securities fraud and two counts of securities fraud. The conspiracy counts each carry a maximum prison term of five years; the securities fraud counts each carry a maximum sentence of 20 years. The securities fraud charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
PINTO-THOMAZ is scheduled to be sentenced before Judge Rakoff on July 29, 2019, at 4:00 p.m.
Abell Oujaddou and Jeremy Millul each previously pled guilty and await sentencing before Judge Rakoff.
Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine I. Magdo and Andrew Thomas are in charge of the prosecution.
Former Philadelphia Police Officer Sentenced to 9 Years in Federal Prison for Conspiring with Former Baltimore Police GTTF Detective to Distribute Heroin and Other NarcoticsRead the Press Release
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced former Philadelphia Police officer Eric Troy Snell, age 34, of Philadelphia, Pennsylvania, today to nine years in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and cocaine. On November 1, 2018, after three days of trial, Snell admitted that he conspired with former Baltimore Police Gun Trace Task Force (GTTF) Detective Jemell Rayam and others to sell heroin and cocaine seized by GTTF members.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.
“The community needs to know that when we have evidence of wrongdoing, we will follow that evidence and prosecute you--whether you wear a badge or not,” said Maryland U.S. Attorney Robert K. Hur. “Prosecuting law enforcement officers is painful, but necessary if we are to restore the public’s trust in our justice system. No one is above the law.”
According to court documents and statements at his plea hearing today, Snell is a former Baltimore Police Department (BPD) Officer, who received his training at the Baltimore Police Academy with Jemell Rayam, a former Detective with the BPD Gun Trace Task Force. Snell left the BPD in March 2008, and became an officer in the Philadelphia Police Department on September 29, 2014.
Snell admitted that from at least October 2016 through June 26, 2017, he conspired with Rayam and others to sell heroin and cocaine seized by members of the BPD in Maryland. On October 3, 2016, GTTF Sergeant Wayne Jenkins, Rayam, and other detectives, engaged in a high-speed police chase of G.H. G.H. threw nine ounces of cocaine out of the window of his vehicle before crashing near Mondawmin Mall in Baltimore. The BPD officers retrieved the cocaine and Jenkins told Rayam to sell most of the cocaine and give Jenkins the proceeds of the sale, which Rayam agreed to do.
On October 18, 2016, after learning about the cocaine from Rayam, Snell asked Rayam to give him the cocaine that was stolen from G.H. and not submitted as evidence to BPD. Rayam agreed and on October 20, 2016, traveled to Philadelphia to meet Snell at his residence. Ryam provided the cocaine to Snell, who made arrangements to meet with Snell’s brother, who would sell the cocaine for Snell and Rayam. Later that day. Snell, Rayam, and Snell’s brother met and discussed: the sale of the cocaine; the price the cocaine should be sold for; the amount of money that Snell’s brother would pay Snell after the sale of the cocaine; and the amount of money that Snell would pay Rayam after the sale of the cocaine. On October 23, 2018, Rayam and Snell agreed that Rayam would provide Snell with heroin for Snell to sell and distribute.
Snell admitted that he communicated with Rayam on October 27, 2016, to advised that Snell had received “2K” ($2,000) from the sale of illegal drugs and subsequently deposited $1,000 into Rayam’s bank account. Snell met Rayam several other times to coordinate the drug trafficking and exchange drugs and cash. Snell admitted that he paid Rayam on subsequent occasions for drug proceeds, including making a $2,500 deposit into Rayam’s bank account.
Following Rayam’s arrest on June 26, 2017, Snell spoke with Rayam on the recorded phone system in place at the jail where Rayam was detained. Snell instructed Rayam to “say less” on the recorded jail phones so that law enforcement would not detect their illegal drug trafficking.
On November 14, 2017, Snell was arrested and transported to Baltimore for his initial appearance. During the transport, Snell admitted that he lied to FBI agents when he told them that the payments he made to Rayam were for the repayment of a gambling debt, when in fact, the payments were for drugs he received from Rayam.
During a search of Snell’s residence on November 14, 2017, law enforcement recovered a box in which Snell stored items containing cocaine residue, next to a package of razor blades that were used to cut and process narcotics for distribution, as well as .40-caliber and 9 mm handgun ammunition. From the master bedroom, law enforcement recovered Snell’s Philadelphia Police Department service weapon, a 9 mm handgun, as well as a 40-caliber handgun, and two unregistered short-barrel assault rifles.
Snell admits that the amount of narcotics reasonably foreseeable to him in furtherance of the conspiracy is the equivalent of at least 100 kilograms of marijuana.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who prosecuted these Organized Crime Drug Enforcement Task Force cases.
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Former Doctor Sentenced to Prison for Illegal Sale of OpioidsRead the Press Release
ALEXANDRIA, Va. – A former physician was sentenced today to more than seven years in prison for operating a pill mill that illegally distributed over 600,000 oxycodone pills out of a pain management clinic in Woodbridge.
“Pole’s repeated and callous actions endangered the community,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Pole put highly addictive, dangerous drugs into the hands of scores of customers that had no actual need for them. It is exactly the type of irresponsible behavior that continues to fuel the opioid epidemic that is gripping our communities. The Eastern District will remain dogged in its pursuit of heroin traffickers, illicit fentanyl, and dirty practitioners like this as we continue to fight this three-front battle against opioids.”
According to court documents, Shriharsh Laxman Pole, 65, was a physician who voluntarily surrendered his medical license in 2009, and again in 2013. In both instances, Pole admitted to creating a substantial risk to public health by engaging in wrongful prescribing practices for opiates, including oxycodone, oxymorphone, hydrocodone, and hydromorphone.
Upon surrendering his license in 2013, Pole founded Excel Medical Clinic (EMC). EMC operated out of the same office, had the same employees, and the same patients, as Pole’s former practice. Most of EMC’s patients were treated for pain management issues. Pole enlisted the aid of nurse-practitioner and co-conspirator, Janelle Hibson, 63, of Fredericksburg, who pleaded guilty to the same charges on September 6. Hibson pre-signed prescriptions that Pole later filled out and distributed. Patients often received these drugs without undergoing any physical or diagnostic examination to determine whether the drugs were necessary for legitimate medical purposes. Pole admitted that between EMC’s founding and 2015, he caused the distribution of more than 600,000 pills containing oxycodone.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Michael P. Ben’Ary and David Peters prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-303.
Foreclosed Property Preservationist Charged in $10 Million Fraud SchemeRead the Press Release
PROVIDENCE – An East Greenwich, R.I. woman whose business specialized in preserving the current condition of foreclosed homes for resale has been charged in U.S. District Court in Providence. The defendant allegedly operated a scheme whereby she raised and pocketed millions of dollars from investors, often times family members, friends, and business associates, by misrepresenting to them that she needed to raise tens of thousands of dollars for various repair projects. In return for their investment, investors were promised a return of fifty percent of the profit.
According to Court documents, it is alleged that Monique N. Brady, 44, misrepresented projects and solicited multiple bids for significantly more money than an individual project required. Brady performed relatively menial tasks such as grass mowing, snow removal, boiler service, etc., for as little as $20, but represented the bids to investors as full-fledged rehabilitation projects costing tens or hundreds of thousands of dollars. An investigation determined that Brady often solicited multiple bids, primarily by email, for many of the projects.
It is alleged that Brady, owner and operator of MNB LLC, often convinced investors to invest substantial amounts of money claiming she had been awarded Freddie Mac rehabilitation projects, when in fact the projects were associated with real estate entities other than Freddie Mac. The evidence suggests Brady used the Freddie Mac name to provide more credibility to her fraudulent solicitations.
A review of bank and other financial records revealed that Brady allegedly received approximately $10,076,291 in investments from thirty-two individuals based on numerous false and fraudulent representations. Many of these investors had close and personal relationships with Brady, including close friends, her step-brother and the former nanny for her children. Numerous investors suffered substantial harm as a result Brady’s fraudulent conduct, including an elderly woman who lost nearly all of her life savings and another elderly man with Alzheimer’s disease who lost his life savings to Brady.
As part of the scheme, Brady often paid back some of the money she received from one investor with monies received from another. By the time the scheme ended after its discovery in the summer of 2018, twenty-three individuals had lost approximately $4,495,237 to Brady.
Monique Brady appeared today before U.S. District Court Magistrate Judge Lincoln D. Almond on a Criminal Complaint charging her with wire fraud, announced U.S. Attorney for the District of Rhode Island Aaron L. Weisman, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker and Tax Division Trial Attorney Christopher P. O’Donnell.
A Criminal Complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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Florida Man Indicted for Wire Fraud and International Money Laundering in Connection with an Investment Fraud Scheme Involving Baton Rouge Area VictimsRead the Press Release
A federal grand jury recently returned a four-count indictment charging Wallace Byers, age 59, of Miami, Florida, with wire fraud and international money laundering. Byers appeared for his arraignment in court today and pled not guilty to the pending charges.
According to the indictment, Byers identified potential victims through social networking websites, commercial services that provided investor leads, and documents that identified the victims of other schemes. The indictment alleges that Byers solicited victims to invest with his company, WBI Associates, LLC, through phone calls, text messages, and email, and promised victims that the money would be invested, variously, in gold production, a lottery company, foreign currency, or “dark pools” or “blind pools.” The indictment further alleges that instead of investing the money sent to him by victims as promised, Byers spent the money on personal expenditures, including among others, approximately $10,000 per month in rent for his residence in a Miami hotel, the lease of luxury cars, including a Ferrari, and gambling in casinos. The indictment alleges that Byers received at least $6,888,000 as a result of his scheme. According to the indictment, two of Byers’ victims lived in the Middle District of Louisiana, one in Baton Rouge and one in Baker.
In addition to charging Byers with wire fraud, the indictment charges Byers with engaging in international money laundering, by sending $3,000,000 to a Swiss bank account, in order to conceal and disguise the nature, location, source, ownership and control of the proceeds of the wire fraud scheme.
U.S. Attorney Brandon J. Fremin stated, “This indictment demonstrates how con artists can prey on our citizens with persuasive lies and false documents. We remain focused on prosecuting the criminals who target our community with financial scams and abuse. Citizens always should be wary of callers who promise large financial returns, and should contact law enforcement if they believe that they have fallen victim to one of these scams. I appreciate the hard work by all those involved in this important matter.”
Eric Rommal, FBI New Orleans Special Agent in Charge, stated "The FBI will continue to aggressively pursue those who prey on our elderly citizens through investment scams and other complex financial crimes."
This matter is being investigated by the Baton Rouge Resident Agency of the Federal Bureau of Investigations, and is being prosecuted by Assistant United States Attorney Elizabeth E. White, who also serves as the Elder Justice Coordinator for the Middle District of Louisiana. The Department of Justice’s Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/elderjustice.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Federal Inmate Sentenced to Additional 48 Months in Prison for Assault with A Dangerous WeaponRead the Press Release
Ocala, Florida – U.S. District Judge James D. Whittemore has sentenced German De Jesus Ventura (40, Sumter County) to an additional 48 months in federal prison for assault with a dangerous weapon with intent to do bodily harm. The sentence will be served consecutive to an existing 35-year prison sentence that Ventura was already serving at the time he committed the assault.
Ventura had pleaded guilty on February 7, 2019.
According to court documents, Ventura was an inmate at the Federal Correctional Complex in Coleman, Florida. In August 2017, he repeatedly struck another inmate in the back of the head with a homemade contraband weapon consisting of a solid metal plate attached to a lanyard. The other inmate suffered a large head wound, two depressed skull fractures, and significant blood loss. A correctional officer who had witnessed the assault quickly apprehended Ventura as Ventura attempted to discard the weapon and flee from the area where the attack had occurred.
This case was investigated by the FBI—Ocala Resident Agency, and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Federal Grand Jury Indicts Alleged Robbery Crew in Well-Planned Jewelry Heists that Netted $1 Million in Stolen GoodsRead the Press Release
LOS ANGELES – A federal grand jury today indicted five members of a robbery crew who allegedly committed sophisticated heists by following wholesale jewelers and bank customers – sometimes for days – and then robbing them, netting the thieves more than $1 million worth of jewelry and tens of thousands of dollars in cash over the past 18 months.
The five defendants, who all are in federal custody after being arrested earlier this month, each are charged with participating in a conspiracy to interfere with commerce by robbery. They are:
- Federico Santiago Quiroz Lucca, 51, of Los Angeles, the alleged ringleader of the scheme;
- Roberto Melendez Falcon, 51, of Los Angeles;
- Roberto Alonso Castellanos, 48, of Pomona;
- Jose Oscar Cupitre Nuñez, 47, of Australia; and
- Jose Manuel Lopez Molina, 45, of Colombia.
Lucca and Nuñez are also charged in a second count with interference with commerce by robbery.
According to an affidavit previously filed in this case, from October 2017 until April 2019, the defendants surveilled and conspired to rob a series of jewelry salespeople and bank customers in the Los Angeles metropolitan area, the San Francisco Bay Area and Denver. Lucca allegedly led and organized the crew’s activities, enlisting help from several Colombian nationals who traveled to Los Angeles to participate in the conspiracy and robberies.
The various heists described in court documents followed a similar pattern: a member of the crew known as a “scout” identified a victim who was likely to be carrying jewelry or cash. The victims typically were jewelers conducting business at jewelry stores or malls in Orange County, the Jewelry District in downtown Los Angeles, or at various trade shows, the affidavit states. The “scout” followed the victim, who often was carrying large amounts of jewelry or cash, and would wait for an opportunity when the scout and co-conspirators could rob the jeweler.
The co-conspirators followed victims to locations such as gas stations and hotels, where the defendants allegedly used a ruse, such as puncturing a car tire, and then posed as a Good Samaritan, or simply used force, to rob the victims.
For example, on February 8, 2018, Lucca allegedly spent four hours following a traveling jewelry salesman making rounds on behalf of his employer to jewelry stores in Orange County. As the victim returned to his car after stopping in Cypress, he was violently pushed from behind, falling into his car door, and his bag containing approximately $400,000 in jewelry was stolen, court papers state.
In a January 2019 incident, a couple who operated a jewelry business in Connecticut was participating in a jewelry show at the Los Angeles Convention Center, when a man wearing a yellow and orange safety vest asked to help them pack up their belongings. According to an affidavit filed in this case, the man in the safety vest ended up pushing their large cart with all their belongings – including a bag containing approximately $400,000 in jewelry – and the bag was later discovered to be missing. Evidence subsequently developed by investigators determined that the robbery crew had tracked the victims for days.
Earlier this month, Lucca, Nuñez, and Molina were arrested in Northern California after they allegedly surveilled various locations, including jewelry stores, a residence, and the Santa Clara Convention Center, where a jewelry show was scheduled to occur, according to court documents.
Castellanos was arrested in Las Vegas, Nevada on April 12, and Falcon was arrested on April 13 in Los Angeles.
All five defendants are scheduled to be arraigned in United States District Court in Los Angeles on May 3.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted in this case, defendants Lucca and Nuñez would face a statutory maximum sentence of 40 years in federal prison, and the other defendants would face statutory maximum sentences of 20 years in prison.
This matter is being investigated by the Federal Bureau of Investigation, which is receiving substantial assistance from the Los Angeles Police Department.
This case is being prosecuted by Assistant United States Attorneys Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section and Joshua O. Mausner of the Violent and Organized Crime Section.
Federal Court Shuts Down Alleged Nationwide Tax Scheme Involving Charitable LLCs and Charitable Limited PartnershipsRead the Press Release
A federal court in Miami, Florida, permanently barred Michael L. Meyer from organizing, selling, and making statements about the tax benefits of an allegedly abusive charitable giving tax scheme, the Justice Department announced today. The court’s injunction specifically prohibited Meyer from selling the Ultimate Tax Plan, sometimes referred to as a Charitable LLC or Charitable Limited Partnership. In addition, the court barred Meyer from preparing federal tax returns, performing appraisals for federal tax purposes, representing anyone other than himself before the IRS, furnishing tax advice about charitable contributions, and making statements about transactions having a significant purpose of tax avoidance.
According to the government’s amended complaint, Meyer organized, promoted, and operated an elaborate — and bogus — charitable giving tax scheme throughout the United States. Meyer allegedly told scheme participants they could claim significant tax benefits while retaining complete control over assets purportedly donated to charity.
According to the allegations in the government’s amended complaint, Meyer organized and sold a plan in which participants purportedly transferred property to a limited liability company (LLC) or partnership and purportedly donated their interest in the LLC or partnership to a charity. The United States further alleged that Meyer appraised the “donations,” prepared tax forms for participants to claim unwarranted deductions, and controlled the charities he used to perpetuate the scheme, including Indiana Endowment Fund Inc., Grace Heritage Corporation, and National Endowment Association Inc.
The government argued in its court filings that Meyer falsely advised participants that they could claim an immediate up-front tax deduction, grow assets tax-free, access assets through tax-free loans, and preserve wealth for themselves and their heirs. Because taxpayers retained control over their “donations,” however, all of the alleged tax benefits were unlawful, according to the United States’ court filings. In its amended complaint, the government alleged that Meyer’s scheme deprived the government of at least $35 million in tax revenue.
In addition to barring Meyer from activities described above, the Court also prohibited Meyer from advising, performing work for, receiving compensation from, or referring individuals to six other charities not referenced in the amended complaint: (1) Compassion Beyond Borders Inc.; (2) National Outreach Foundation Inc.; (3) Legacee Charities Inc.; (4) Triton Charitable Foundation; (5) Global Outreach Fund Inc., or (6) Family Office Foundation Inc. The Court further ordered Meyer to dissolve National Endowment Association Inc.; Grace Heritage Corporation; Indiana Endowment Fund Inc.; as well as two other entities, Indiana Endowment Foundation Inc.; and Indiana Outreach Fund Inc. Meyer consented to entry of the injunction.
Principal Deputy Assistant Attorney General Richard E. Zuckerman, head of the Justice Department’s Tax Division, thanked Trial Attorneys Casey S. Smith, James F. Bresnahan II, and Harris J. Phillips of the Tax Division. He also thanked the many IRS attorneys and agents who participated in the investigation.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Grand Jury Returns Indictment Charging Larry Mitchell Hopkins with Firearms ChargeRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., has returned an indictment charging Larry Mitchell Hopkins, 69, of Flora Vista, N.M., with being a felon in possession of firearms and ammunition, announced New Mexico U.S. Attorney John C. Anderson and Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division.
Hopkins, who is also known as Johnny Horton, Jr., is scheduled for arraignment on the indictment at 9:30 a.m. on April 29, 2019, before U.S. Magistrate Judge Karen B. Molzen in the Rio Grande courtroom of the federal courthouse in Albuquerque. Hopkins also is scheduled for a detention hearing at the same time.
The indictment charges Hopkins with knowingly possessing firearms and ammunition in San Juan County, N.M., in Nov. 2017, despite having been convicted of at least one of the following felony crimes, which were punishable by at least a year of imprisonment: being a felon in possession of a firearm; impersonating a peace officer; and possession of a loaded firearm by a convicted felon.
Hopkins has been in custody since he was arrested by the FBI, with assistance from the Sunland Park Police Department, on April 20, 2019, in Sunland Park, N.M.
If convicted on the charge in the indictment, Hopkins faces a maximum statutory penalty of ten years of imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Farmington Resident Agency of the FBI with assistance from the Las Cruces Resident Agency of the FBI. The Sunland Park (N.M.) Police Department assisted in the arrest operation. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
Elyria man arrested on child pornography charges after search for missing juvenileRead the Press Release
On April 18, 2019, Jeremy L. Cruz, 39, of Elyria, was taken into custody by Cleveland Division FBI agents, and Sheffield and Avon Lake Police Department officers at a residence in Sheffield Lake, Ohio.
Santa Maria Police Department, in California, asked the public for assistance in a missing 14 year old juvenile case, she had been missing since April 15th. Through initial investigative work, Santa Maria Police Department determined the missing juvenile had been communicating with an adult male she had met online, the adult male was soon identified as Jeremy Cruz of Elyria.
On April 18th, at approximately 3:30am, law enforcement located Cruz at a family member’s residence in Sheffield Lake. The missing juvenile was also present. Cruz was placed into custody without incident and transported to the Sheffield Lake Police Department. The juvenile female was reunited with her family in California.
Law enforcement conducted a digital forensic examination of Cruz’s cellular phone and discovered numerous photos of what is believed to be child pornography.
Cruz has been held in local custody since April 18th and was transferred to federal custody this morning. He has been charged with interstate transport of child pornography. He will have his initial appearance this afternoon in U.S. Magistrate Judge Jonathan D. Greenberg’s courtroom.
This case was investigated by the Santa Maria Police Department, FBI – Los Angeles Division, Sheffield Lake Police Department, Avon Lake Police Department, Elyria Police Department, Lorain Police Department and the Cleveland Division of the FBI and is being prosecuted by the United States Attorney’s Office – Northern District of Ohio.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Drug Cartel Leader Sentenced to 20 Years in Prison for Distributing more than 50 Kilos of MethamphetamineRead the Press Release
The leader of a dangerous drug distribution ring, who continued to run his drug operation after fleeing to Mexico, was sentenced today in U.S. District Court in Tacoma to 20 years in prison, announced U.S. Attorney Brian T. Moran. As early as 2010, JESUS ENRIQUE PALOMERA, 39, conspired with others to distribute methamphetamine in the Tacoma area. PALOMERA not only sold drugs, he sold guns as well – arranging the sale of nine guns in one day to an undercover law enforcement agent. At the sentencing hearing U.S. District Judge Robert J. Bryan said it was one of the largest drug conspiracies he had seen and “the threats of violence here were as bad as I have seen.”
“This defendant was a prolific drug dealer smuggling massive amounts of methamphetamine throughout the West Coast, and very specifically in the Tacoma area,” said U.S. Attorney Moran. “His hallmark was violence and threats of violence, not only against co-conspirators, but against their children, parents and loved ones. This prison sentence puts an end to his drug ring powered by fear.”
According to records filed in the case, following the gun sales in November 2011, PALOMERA fled to Mexico after some of his coconspirators were arrested. PALOMERA continued to run his drug operation from across the border, sometimes communicating with customers in Pierce County via Facebook. PALOMERA frequently threatened those working for him and their family members if they did not obey him. The threats were via Facebook and instant messaging.
PALOMERA continued to be involved in drug distribution in 2014 and 2015. At PALOMERA’s direction more than 50 kilos of methamphetamine were transported from Mexico and up through California and Oregon to Washington. PALOMERA’s threats of violence were made very real when one of the coconspirators went missing and is presumed dead after a load was seized by law enforcement. Sentencing documents reveal that PALOMERA threatened to kill this coconspirator during conversations with other coconspirators, and a number of people saw text messages and photos that indicated PALOMERA directed the beating and killing of the coconspirator
PALOMERA was taken into custody in Mexico in June 2015, and was extradited to the United States in July 2016. In November 2017, he pleaded guilty to two counts of conspiracy to distribute methamphetamine and being an alien in possession of a firearm.
PALOMERA’s coconspirator, James E. Roberts, was sentenced to ten years in prison in December 2015. Roberts owned an auto body shop in Lakewood, Washington, that was central to the drug trafficking ring. Several other conspirators have been sentenced, including:
- Lucas Manglona, who was sentenced to ten years in prison in February 2016.
- Tisha A. Janzen, who was sentenced to ten years in prison in July 2016.
- Daniel R. Vasquez, who was sentenced to 70 months in prison in May 2016.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Lakewood Police Department, the Washington Department of Corrections, the Los Angeles Police Department, the Siskiyou County Drug Task Force, the California Highway Patrol, the Oregon State Police, and the FBI. The case is being prosecuted by Assistant United States Attorneys Michael Dion and Amy Jaquette.
Delaware Man Sentenced to 12 Years in Federal Prison for Conspiring to Commit Sex Trafficking of a 15-Year-Old GirlRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Harry E. Rivers, a/k/a “Hakeem” and “Pots,” age 29, of Delaware, today to 12 years in federal prison, followed by five years of supervised release, for conspiracy to commit sex trafficking of a child.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Matthew Donnelly of the Elkton Police Department.
“When an adult profits from sex with a child, that is human trafficking, period,” said Maryland U.S. Attorney Robert K. Hur. “Adults, like Harry Rivers, who encourage or profit from sexual exploitation of children face lengthy terms in federal prison, where there are no suspended sentences and no parole.”
According to his plea agreement, Rivers conspired with co-defendants Steven M. Williams and Jessica L. Schaefer to traffic a 15-year-old girl to engage in commercial sex acts. According to Rivers’ Williams’ and Schaefer’s plea agreements, Schaefer and the victim, Girl 1, engaged in commercial sex acts with men in Delaware. Girl 1 was 15 years old and a resident of Pennsylvania, but lived with her father in Delaware. Schaefer posted ads of herself for commercial sex purposes. Williams responded to one of the ads and determined that Schaefer and Girl 1 would work for him. Williams provided Schaefer and Girl 1 with crack cocaine and they were eventually in debt to Williams. Girl 1 and Schaefer then engaged in commercial sex acts to pay off their debt to Williams. Girl 1 and Schaefer gave any proceeds earned from performing commercial sex acts to Williams. To facilitate the commercial sex acts, Williams rented hotel rooms in his name or the names of men paying for the commercial sex acts, and Rivers provided narcotics to the females and their customers, and helped to arrange “dates” for the females.
In July 2017, Williams drove Girl 1 from Delaware to Elkton, Maryland, separating her from Schaefer. Girl 1 woke up in a motel in Elkton with another sex worker, AH. At Williams’ direction, AH posted an ad featuring a picture of Girl 1 on a website used to advertise and solicit for commercial sex, including the sexual exploitation of minors. While in Maryland, Girl 1 performed commercial sex acts and gave the monies she earned to Williams. Williams physically abused Girl 1 when he thought she was not giving him all the money she earned, and also displayed his firearm to her in a threatening manner.
On July 13, 2017, Girl 1 attempted to leave and hid in AH’s hotel room. Williams, Rivers, and Schaefer traveled from Newark, Delaware to Elkton, to take Girl 1 back to Delaware, to ensure that she did not leave Williams’ employ. Williams and Rivers each had a firearm which they used to threaten AH, demanding that she produce Girl 1. Schaefer had a taser, which she ignited, barged into AH’s room, and took Girl 1 from the room against her will. Rivers, Williams, and Schaefer drove Girl 1 back to Delaware so that she could continue to engage in commercial sex acts.
On July 14, 2017, AH reported the abduction of Girl 1 to law enforcement. Girl 1 was located and rescued in Newark, Delaware the next day, and the defendants were arrested.
Steven M. Williams, a/k/a “Brother Ray”, a/k/a “Ray,” age 39, formerly of Delaware, previously pleaded guilty to sex trafficking of a child by force, fraud, and coercion, and is scheduled to be sentenced on May 17, 2019. Jessica L. Schaefer, a/k/a “Tutti,” age 24, of Pennsylvania, pleaded guilty to conspiracy to commit sex trafficking of a child and is scheduled to be sentenced on June 6, 2019. Williams and Schaefer face a maximum sentenced of life in prison.
As part of their plea agreements, the defendants will be required to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
U.S. Attorney Robert Hur commended the FBI, the Elkton Police Department, the Newark (Delaware) Police Department, the Wilmington (Delaware) Police Department, the Cecil County Department of Social Services, the Cecil County State's Attorney's Office, and the Delaware Department of Justice for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Zachary A. Myers, who are prosecuting the case.
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Dallas Return Preparer Sentenced to Prison in Scheme to File False Tax ReturnsRead the Press Release
A Dallas, Texas-area tax return preparer was sentenced to 51 months in prison today for conspiring to defraud the United States and aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Erin Nealy Cox for the Northern District of Texas.
According to documents and information provided to the court, Mario Melendez worked as a manager and return preparer at Uptown Multi Services, a tax preparation business located in the Northern District of Texas. Co-defendant, Francisco Ventura owned Uptown and other tax preparation businesses.
From November 2013 and continuing through April 2014, Melendez conspired with others to prepare fraudulent federal income tax returns for clients that included false education credits, Schedule C expenses and other such items. Melendez also assisted Ventura during training classes for new tax return preparers during which they instructed employees how to prepare fraudulent tax returns in order to maximize clients’ refunds. Melendez is responsible for attempting to cause an estimated $3.8 million tax loss to the United States.
In addition to the term of imprisonment imposed, Melendez was ordered to serve one year of supervised release and to pay restitution in the amount of $3,885,456 to the Internal Revenue Service (IRS).
Ventura pleaded guilty to aiding and assisting in the preparation of a false return. His sentencing is scheduled for June 14, 2019.
Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Nealy Cox commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Alexander Effendi of the Tax Division and Assistant United States Attorney Melanie Smith, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
DEA and Partners Host National Prescription Drug Take Back Day,Read the Press Release
OMAHA, Neb., – The Drug Enforcement Administration (DEA) and its national, tribal and community partners will host the 17th National Prescription Drug Take Back Day, Saturday, April 27, from 10 a.m. to 2 p.m., at more 6,000 sites nationwide, including 24 locations in South Dakota. To date, 20 counties in South Dakota and the Standing Rock and Lower Brule Reservations, will host drop-off locations where individuals can dispose of expired, unused and unwanted prescription medications. This service is free and anonymous, however DEA cannot accept liquids, needles or other sharp objects.
Every year, America is losing more than 70,000 people to drug overdose deaths. This is the equivalent of the capacity of the Minnesota Vikings’ U.S. Bank Stadium with additional space needed for 4,000 more people. In 2017, an estimated 3.2 million Americans age 12 or older reported misusing prescription pain relievers within the last month, making prescription opioids the second-most abused drug after marijuana in the United States. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet.
"In South Dakota, 270 people died of opioid overdose between 2014 and 2017," DEA Omaha Division Special Agent in Charge Richard Salter Jr., said. "These were mothers, fathers, children, friends and neighbors in our communities who didn’t need to die. National Prescription Drug Take Back Day is a way in which members of our communities can do their part to prevent the next overdose death by cleaning out their cabinets and those of their loves ones and getting rid of unused, unwanted and expired medications that have the potential for abuse."
Now in its ninth year, the National Prescription Drug Take Back Day initiative continues to remove high amounts of opioids and other medicines from homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens. Since the first National Prescription Drug Take Back Day held in 2010, DEA has collected nearly 11 million pounds of medications.
To locate a DEA Take Back site, visit www.DEATakeBack.com or call 1-800-882-9539.
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser joins the DEA in announcing its 17th National Prescription Drug Take Back Day scheduled for April 27th. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including here in the Eastern District of Louisiana. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
U.S. Attorney Strasser stated, “Unfortunately, the average medicine cabinet, overstocked with unused or expired medications, can unintentionally provide opportunities for abuse. DEA’s Take Back Day affords a unique opportunity to anonymously and safely remove these potential hazards and prevent them from affecting families and our communities.”
DEA Special Agent in Charge Brad Byerley said, “Prescription drug abuse has become the nation’s fastest growing drug epidemic. Last year, more Americans died from opioid overdoses than from all other drugs combined, including meth, cocaine and hallucinogens. Unfortunately, these prescription drugs are most often obtained from friends and family, who leave them in home medicine cabinets. DEA’s Take-Back initiative provides citizens an easy and safe way to dispose of unwanted prescription drugs. Please do your part to keep prescription drugs off the streets and help spread awareness in your community.”
Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator or www.deatakeback.com where you can search by zip code, city, or state.
Crawford County Man Sentenced to 13 Years for Soliciting Child PornographyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ricky T. Olson, 60, Gays Mills, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 13 years in federal prison for receipt of child pornography. Olson pleaded guilty to this charge on January 7, 2019.
In February 2015, Olson used a false name to communicate with a child on Snapchat and persuaded the child to send him images and videos of the child engaged in sexually explicit conduct. Olson also admitted that he distributed the images and video to another Snapchat user and that Olson sent the child sexually explicit images of Olson himself.
In sentencing Olson, Judge Conley noted Olson’s lengthy and extensive criminal history, the fact that he created a false persona to commit the crime, and that Olson not only received images, but also redistributed them.
The charge against Ricky T. Olson was the result of an investigation conducted by the Crawford County Sheriff’s Office and the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorneys Laura Przybylinski Finn, Diane Schlipper, and Julie Pfluger.
Convicted Felon Sentenced to Prison for Possessing FirearmRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to more than six years in prison for being a felon in possession of a firearm.
“A convicted felon in possession of a firearm poses a serious danger to the safety of our communities and the law enforcement officers who protect us,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Harris has an extensive criminal record and in this case he fired multiple rounds into an occupied apartment and engaged police officers in an armed standoff. Due to their bravery and skilled police work, the officers were able to diffuse the potentially deadly situation and bring Harris to justice. My sincere thanks and gratitude to our local law enforcement partners and their efforts to help us remove dangerous individuals like Harris from our community.”
According to court documents, in September 2018, Charles Lorenzo Harris, 54, unlawfully possessed and fired a Springfield Armory pistol in an occupied apartment in Alexandria. After firing multiple shots inside an apartment, Harris exited the apartment building holding the pistol in his hand and was confronted by officers of the Fairfax County Police Department. After an approximately 30 minute armed standoff, police were able to disarm and arrest Harris. Law enforcement later found bullet holes in the walls and ceiling of the apartment Harris was visiting, and recovered a bullet from the apartment above the apartment Harris was visiting.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Jessica Kraft and Assistant U.S. Attorney Nicholas U. Murphy II prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-28.
Convicted Felon Pleads Guilty Under Project EJECT to Possession of Multiple FirearmsRead the Press Release
Jackson, Miss. – Montavious Johnson, 25, of Ridgeland, pled guilty today before U.S. District Judge Henry T. Wingate to possession of multiple firearms by a convicted felon, announced U.S. Attorney Mike Hurst, Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration (DEA).
Johnson was arrested on September 11, 2018, as part of a joint operation by the Hinds County Sheriff’s Office, the Richland Police Department, DEA and ATF. After arresting Johnson for the sale of narcotics, officers executed a search warrant at the apartment in Jackson where Johnson was staying. Numerous firearms were recovered, including two AR-15 semiautomatic rifles and four pistols. Johnson also had a sixty-round high capacity magazine loaded in one of the AR-15’s.
Johnson had previously been convicted of state felony offenses in Madison County, Mississippi and Hinds County, Mississippi. At the time of his arrest, Johnson was on parole from prior state convictions and was wearing an ankle monitor. Upon his arrest on federal charges, Johnson was ordered detained without bond pending the outcome of his case.
Johnson will be sentenced by Judge Wingate on July 25, 2019. He faces a maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Hinds County Sheriff’s Department, the Richland Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Dave Fulcher.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Cocoa Beach Man Indicted for Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Albert Chris Partee (25, Cocoa Beach) with disaster-assistance fraud involving Hurricane Irma. If convicted, Partee faces a maximum penalty of 30 years in federal prison.
Partee is currently incarcerated on unrelated charges in Indiana. He is scheduled to make his initial appearance in Jacksonville on May 20, 2019.
According to the indictment, in September 2017, Partee falsified records concerning his primary residence when submitting an application for assistance to the Federal Emergency Management Agency’s Individuals and Households Program for Hurricane Irma.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
Chicago Felon Convicted of East Texas Drug Trafficking CrimesRead the Press Release
TEXARKANA, Texas – A 44-year-old Chicago, Illinois, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
James L. Morgan was found guilty of possession with intent to distribute methamphetamine and being a felon in possession of a firearm. The verdict was reached today following a four-day trial before U.S. District Judge Robert W. Schroeder, III.
According to information presented in court, on Sep. 28, 2017, Morgan was stopped by Texas DPS troopers on IH-30 near Mt. Pleasant, Texas, for failing to maintain a single lane of traffic. During the traffic stop, Morgan fled on foot while a passenger, Antonio Alexander Lee, got back in the vehicle and drove away before being stopped by spike strips in Bowie County, Texas. Morgan was apprehended on a rural county road after crossing all lanes of IH-30 on foot and a barbed wire fence. A search of the vehicle revealed more than 75 grams of actual methamphetamine, a loaded firearm, a digital scale and approximately one gram of heroin. Further investigation revealed Morgan was a convicted felon and prohibited from owning or possessing firearms or ammunition. Morgan and Lee were indicted by a federal grand jury on Oct. 18, 2017.
Lee pleaded guilty to conspiracy to possess a controlled substance and was sentenced to 94 months in federal prison on Aug. 21, 2018.
Under the federal statute, Morgan faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office
This case was investigated by the Texas Department of Public Safety, Criminal Investigation and Highway Patrol Divisions; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Drug Enforcement Administration; Titus County Sheriff’s Office; Bowie County Sheriff’s Office; and the Cass County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorneys Allen Hurst, Jonathan R. Hornok and Graham Jones.
Charleston Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
Faces up to 30 years incarceration for gun and drug possession at local casino
CHARLESTON, W.Va.—A Charleston man pled guilty to federal drug and gun charges, announced United States Attorney Mike Stuart. Michael A. Parker, 37, pled guilty to possession with the intent to distribute cocaine, and to being a felon in possession of a firearm. He is scheduled to be sentenced on August 8, 2019 and faces up to 30 years in prison. Parker also agreed to forfeit the firearm and $14,225.87 cash that was recovered from the scene. Stuart commended the investigation by the Nitro Police Department, assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police Forensic Laboratory and Mardi Gras Casino Security.
“Cocaine, a firearm, lots of cash and running from police,” said United States Attorney Mike Stuart. “Parker evidently didn’t learn anything from his previous federal drug conviction and needs to go back and try again.”
Parker admitted that on July 28, 2018 at 5:00a.m., he had driven to the Mardi Gras Casino in Nitro, West Virginia. He double-parked the car he was driving and went into the casino. Casino security noticed the double-parked car and also saw a gun on the floorboard of the car. Casino security contacted the Nitro Police to get their assistance in asking Parker to move his car. Parker initially agreed to move the car and offered to meet the police outside. Instead, Parker walked out a different door of the casino, fled into the woods near the casino, and hid. Casino security workers monitored Parker’s flight with security cameras and relayed this information to the Nitro Police. Parker was quickly located and eventually agreed to return to his car. Once there, Parker agreed to unlock his car and the police recovered the gun. While securing the firearm, the Nitro Police officer immediately noticed a quantity of cocaine and a large stack of cash in the car. Once this evidence was removed from the car, Parker fled a second time into the woods. He was eventually apprehended with the assistance of a K9 unit. Police recovered a large bag of cocaine, 5 smaller bags of cocaine, a bag of marijuana, $14,225.87 cash and a Smith and Wesson .380 caliber pistol with 11 rounds of ammunition and an extended magazine. Parker is a prior convicted felon, having a 2004 federal conviction of distribution of cocaine base and possession with the intent to deliver cocaine. Parker has not been pardoned or otherwise had his right to own a firearm restored. The ATF traced the firearm and concluded it had traveled in interstate commerce. The West Virginia State Police Forensic Laboratory tested the recovered drugs and confirmed that they were cocaine and marijuana, both controlled substances.
Assistant United States Attorneys Erik S. Goes and Kristin Scott are handling the prosecution. Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
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Caregiver Sentenced to Prison for Defrauding Client of $100KRead the Press Release
NEWPORT NEWS, Va. – A Hayes woman was sentenced today to more than five years in prison for stealing approximately $100,000 from a disabled woman for whom she provided caregiving services.
“The financial and emotional harm these deceitful and illegal acts can cause victims and their family members cannot be overstated,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Denton is a serial fraudster who in this case defrauded and victimized a particularly vulnerable woman who had entrusted Denton with providing care to her and her son, who also suffers from certain disabilities. Denton abused and violated that position of trust and stole nearly $100,000 from the victim. We will continue to work with our federal, state and local law enforcement partners to make sure we are protecting those in our communities who are most vulnerable.”
According to court documents, Amy Denton, 43, worked as a caregiver for a Gloucester woman who suffered from various medical issues and limitations. In early 2015, her client’s mother passed away, leaving her a number of life insurance policies. In her role as caregiver, Denton obtained notices of the policies, but then forged her client’s signature on various forms to request the life insurance funds. Denton caused the victim to complete a Virginia Durable Power of Attorney Form (POA) that gave Denton access and control over her client’s finances. The woman signed this form without knowing the authority it provided Denton over her finances.
“Fraud and betrayal by a trusted caregiver is a shameful crime,” said Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office. “The price of this defendant’s greed is the financial security of the victim and her son. The FBI will continue to hold accountable anyone who preys on the vulnerabilities of others.”
Denton used the POA to open bank accounts and add herself to her client’s existing bank account. In May 2015, Denton fraudulently obtained five life insurance checks in the total amount of approximately $100,000, and then routed these funds through bank accounts she controlled. She used the funds to purchase a vehicle, pay off court costs related to a prior state fraud conviction, and for other travel and entertainment expenses. Once the life insurance proceeds were spent, in November 2015, Denton attempted to obtain an additional $40,000 in assets that were held by a law firm and would have accrued to her client. In May 2016, the victim learned that her bank account lacked sufficient funds to pay various bills, and had a seizure at the bank and additional seizures thereafter that required hospitalization.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Darrell W. Warren, Jr., Gloucester County Sheriff, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-70.
Bridgeport Tax Preparer Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that ROLANDO RUSSELL, 62, of Bridgeport, waived his right to be indicted and pleaded guilty today in Hartford federal court to preparing false tax returns for clients.
According to court documents and statements made in court, Russell prepared approximately 1,820 federal tax returns for the 2013 through 2016 tax years through a tax return preparation practice he operated in Bridgeport. The returns claimed a total of approximately $11.26 million in refunds, of which the IRS issued approximately $10 million. An investigation revealed that many of the tax returns he prepared included false Schedule C forms (“Profit or Loss from Business”). On the returns, the losses attributed to Schedule Cs totaled approximately $22.2 million, resulting in a corresponding reduction of taxes owed of up to $6.2 million.
Russell pleaded guilty to two counts of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years on each count.
In pleading guilty, Russell agreed that losses suffered by the IRS as a result of his fraud totaled approximately $1.5 million.
Russell is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on August 7, 2019.
As a result of Russell’s fraudulent conduct, many of his clients’ filed tax returns will need to be amended. Russell’s clients are required to resolve their own tax liability with the IRS.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Benton Harbor, Michigan Man Sentenced to PrisonRead the Press Release
SOUTH BEND – Marcus Edwards, age 38, of Benton Harbor, Michigan, was sentenced before United States District Court Judge Jon E. DeGuilio upon his plea of guilty to robbery, carjacking and brandishing a firearm during a crime of violence, announced U. S. Attorney Thomas L. Kirsch II.
Edwards was sentenced to 154 months in prison followed by 2 years of supervised release.
According to documents in this case, on March 3, 2016, Mr. Edwards and a co-defendant entered a hotel in South Bend, pointed a shotgun at a clerk and demanded money. After the robbery, the duo followed a vehicle to a house in South Bend where they pointed a shotgun at the driver and passenger to take their car. Co-Defendant Jerricka Johnson was sentenced in May of 2017 to 70 months for her role in this case.
The case was investigated by the FBI with the assistance of the South Bend Police Department and was prosecuted by Assistant United States Attorney Joel R. Gabrielse.
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Baltimore Felon Sentenced to 16 Years in Federal Prison for Committing a Carjacking at GunpointRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Jonathan Thompson, age 25, of Baltimore, Maryland, to 16 years in prison, followed by five years of supervised release for carjacking and for brandishing a firearm in furtherance of a crime of violence. The sentence was imposed on April 25, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Jonathan Thompson used a gun to commit a carjacking and now faces the reality of 16 years spent in a federal prison with no suspended sentences and no parole - ever,” said U.S. Attorney Robert K. Hur. “Local, state, and federal law enforcement will not tolerate this type of gun crime that terrorizes our streets. We are committed to identifying and prosecuting armed criminals to make our communities safer. To those who would do as this defendant did, I say, please put down the gun. You will save a life—maybe even your own.”
According to Thompson’s guilty plea, the victim was sitting in her vehicle at the intersection of Ednor and Lakeside Avenues in Baltimore. Thompson approached the vehicle and ordered the victim out of the vehicle at gunpoint. Thompson then got into the driver’s side of the vehicle and co-defendant Dominique Chase got into the passenger side of the vehicle and Thompson drove away. Several minutes later Thompson and Chase switched seats, and Chase continued driving away from the location.
The victim called 911, then spoke with Baltimore Police Department (BPD) officers. BPD officers located the vehicle later that day. Chase surrendered to police, but Thompson ran away and hid a loaded firearm as he ran. Several minutes later, officers located Thompson hiding behind a garbage can and arrested him. The officers also recovered the firearm that Thompson had hidden.
At the time that Thompson committed this carjacking, he was on probation from a state sentence for robbery with a deadly weapon. Thompson was released from prison at the end of October 2017. As a condition of his probation, Thompson was wearing a GPS ankle monitor at that time, which electronically tracked Thompson’s location and corroborated Thompson’s movements during the carjacking.
Dominique Chase, age 25, of Baltimore, previously pleaded guilty to carjacking, and faces a maximum of 15 years in federal prison. Both defendants remain detained.
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 and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Anatoly Smolkin, who are prosecuting the case.
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Baltimore City Felon Sentenced to 11 Years in Federal Prison for Possession with Intent to Distribute Narcotics and for Illegal Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Allen Johnson, age 38, of Baltimore City, Maryland, to 11 years in federal prison, followed by five years of supervised release, for possession with intent to distribute narcotics and for possession of a firearm in furtherance of drug trafficking. The gun discharged while Baltimore City Police Officers were placing Johnson into custody. Johnson was also prohibited from possessing a firearm due to previous felony convictions. The sentence was imposed on April 25, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore City Police Department.
“This officer, like all law enforcement officers, put his life on the line in order to make our community safer,” said United States Attorney Robert K. Hur. “All too often, guns and drugs go hand in hand—and both are killers. We are committed to working with our law enforcement partners to get both off of our streets and to reduce violent crime in our neighborhoods.”
According to Johnson’s plea agreement, on November 29, 2017, Baltimore City Police officers were on patrol in the Cherry Hill/Brooklyn neighborhoods when they received information that an armed man was in the 800 block of Bridgeview Avenue and had the firearm hidden in his waistband. Police officers responded to the 800 block of Bridgeview Avenue and observed a man matching the description they had been provided, who was later identified as Johnson. As the officers approached Johnson they asked Johnson to show his hands. One of the officers asked Johnson if he possessed a firearm, and Johnson turned away and reached for his waistband. Johnson attempted to flee, and the officer grabbed Johnson from behind. With the officer’s arms wrapped around him, Johnson continued to reach for his waistband. As the officer struggled with Johnson, the firearm discharged, shooting the officer in the wrist. An officer deployed his Taser and subdued Johnson, who was handcuffed and placed under arrest.
A search of Johnson after his arrest recovered 19 vials of cocaine and $80 in cash. Johnson admitted that he intended to distribute the cocaine.
United States Attorney Robert K. Hur commended the ATF and the Baltimore City Police Department for their work in the investigation. Mr. Hur thanked Assistant United States Attorneys John W. Sippel, Jr., Patricia C. McLane, and Lindsey McCulley, who prosecuted this case.
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April 27 Is Prescription Drug Take Back DayRead the Press Release
OKLAHOMA CITY – The Drug Enforcement Administration will be accepting unwanted prescription drugs on Saturday, April 27, from 10:00 to 2:00 at locations throughout the United States. In western Oklahoma, citizens may drop off prescription drugs anonymously at these locations:
- Oklahoma County Sheriff’s Office, Midwest City Substation (8029 S.E. 29th Street)
- Moore Police Department, Sam’s Club (1705 South Broadway Avenue)
- Concho Agency
- Shawnee Police Department, The Clinic Pharmacy (3210 J.D. Kethley Road)
- Shawnee Police Department, Shawnee Senior Center (401 North Bell Avenue)
- Anadarko Agency (201 East Parker McKenzie Drive)
- Custer County Sheriff’s Office, Walmart Supercenter (1349 East Eagle Road, Weatherford)
- Comanche Nation Police Department (8527 Northwest Madische Road, Lawton)
- Pawnee Agency (123 White Eagle Drive, Ponca City)
To find collection sites nationwide, the public can go to www.DEATakeBack.com or call 800-882-9539.
With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day Initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft, and abuse by family members and visitors, including children and teens. In continuation of this effort, DEA and its national, tribal, and community partners will hold the 17th National Prescription Drug Take Back Day across the country on Saturday, April 27, from 10:00 a.m. to 2:00 p.m. local time.
Now in its ninth year, DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of expired, unused, and unwanted prescription medications through its Take Back Day events. This weekend, approximately 6,000 collection sites will be manned by nearly 5,000 partner law enforcement agencies. The service is free and anonymous. DEA cannot accept liquids, needles, or sharps.
"Addiction causes a tremendous amount of pain and suffering, not just for those addicted to drugs, but also for their families and friends," said Acting DEA Administrator Uttam Dhillon. "Helping people keep their loved ones safe by disposing of unwanted, unused, and expired prescription medications is just one of many ways that DEA is working to break the cycle of addiction and overdose deaths plaguing this country."
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
National Take Back Day has received enthusiastic public support since its inception in 2010. Last October, the public turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,800 of its local and tribal partners.
This release mentions private businesses merely to inform the public of take back locations; it is not intended as an endorsement of any particular business.
Anchorage Man Sentenced to Federal Prison for Distribution of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Michael John Collier, 32, of Anchorage, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve seven years in prison, followed by a lifetime period of supervised release. In February 2019, Collier pleaded guilty to one count of sexual exploitation of a child – distribution of child pornography.
According to court documents, Collier became the subject of an investigation when, in February 2018, APD received a cybertip report from a social media platform through the National Center for Missing and Exploited Children (NCMEC) alleging that an individual with an Alaska IP address was using the platform to exchange images depicting child sexual exploitation. The cybertip identified a suspect user name “Torpedo_todd” describing themselves as a “Lover of natural beauty and innocence (NSFW).” After it was determined that Collier was assigned to that IP address, APD executed a search warrant on his residence and recovered a number of digital devices that were later determined to contain thousands of images and videos depicting child sexual exploitation.
When interviewed by law enforcement at the time of the search, Collier admitted that “TorPedo” user names were aliases he had used, and that the naming convention was a conjunction of the terms Tor (dark web) and Pedo (short for “pedophile”). In a separate interview, Collier admitted that the majority of his child pornography collection depicted children between 11 and 13 years old, as well as toddlers. He also made admissions to using social media platforms to follow minor female children, and discussed viewing a manual on how to exploit children without being apprehended by law enforcement. Collier also described that he had been on a “slippery slope” before being contacted by APD and disclosed that he had started exposing himself to children in person and online.
The Anchorage Police Department (APD) and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the successful prosecution of this case. The Alaska Internet Crimes Against Children (ICAC) Task Force is made up of local, state, and federal agencies who develop effective responses to cyber enticement and child sexual exploitation cases. This support encompasses forensic and investigative components, training and technical assistance, victim services, prevention and community education. This case was prosecuted by Assistant U.S. Attorney Adam Alexander.
The investigation is 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 U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Thursday 25 April 2019
Zurich Life Insurance Company Ltd. and Zurich International Life Limited Enter Agreement with U.S. Regarding Insurance ProductsRead the Press Release
Zurich Life Insurance Company Ltd (Zurich Life), headquartered in Zurich, Switzerland, and Zurich International Life Limited (Zurich International Life), headquartered in the Isle of Man (collectively Zurich) reached a resolution with the United States Department of Justice yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division. As part of the agreement, Zurich will pay a penalty of $5,115,000 to the United States.
According to the terms of the non-prosecution agreement, Zurich agrees to cooperate in any related criminal or civil proceedings, to implement controls to stop misconduct involving undeclared U.S. accounts, and to pay a penalty in return for the Department’s agreement not to prosecute the insurance providers for tax-related criminal offenses.
“The Tax Division remains steadfast in its goal of ending the use of offshore banking and insurance products when used to commit tax evasion,” said Principal Deputy Assistant Attorney General Zuckerman. “This resolution with Zurich should serve as a strong message to those who use offshore bank accounts and insurance products to evade taxation that the Department of Justice is committed to stopping such fraud.”
Zurich Life was founded in 1922 and operates in Switzerland as an insurance carrier offering life insurance and investment products. As of 2016, Zurich Life had approximately $21.3 billion in assets under management and over 300,000 policies in force. Zurich International Life is based in the Isle of Man and operates as an insurance carrier offering life insurance and investment products. Zurich International Life focuses its business on the international expatriate market. As of 2016, Zurich International Life had approximately $10.6 billion in assets under management and approximately 300,000 policies in force. Zurich Life and Zurich International Life are indirectly owned subsidiaries of Zurich Insurance Group Ltd, a Swiss holding company headquartered in Zurich, Switzerland.
From Jan. 1, 2008, through June 30, 2014, Zurich issued or had certain insurance policies and accounts of U.S. taxpayer customers, who used their policies to evade U.S. taxes and reporting requirements. In particular, Zurich had approximately 420 U.S. related policies, 127 with Zurich Life and 293 with Zurich International Life, with an aggregate maximum value of approximately $102 million, for which the U.S. taxpayer customers did not provide evidence that they had declared their policies to U.S. tax authorities.
To qualify for favorable tax treatment under the U.S. tax code, insurance must meet certain minimal requirements. The policies offered by Zurich Life and Zurich International Life did not meet these requirements. The increase of the principal in these policies was therefore subject to taxation, and the policies were required to be disclosed to the Internal Revenue Service (IRS) on FinCEN Form 114 Foreign Bank Account Report, commonly referred to as an FBAR. In issuing or having undeclared U.S. related policies, Zurich knew or should have known that they were helping U.S. taxpayers conceal from the IRS ownership of undeclared assets, maintained as insurance policies or accounts.
Zurich International Life, in particular, sold insurance products to U.S. taxpayers that were “unit linked,” meaning the cash surrender value and death benefit amount were linked to the value of specified investments. With such policies, the U.S. taxpayer had a suite of specialized investment options, allowing them to access potentially higher returns by taking on the market risk associated with the policies. Some of these unit-linked policies offered a base death benefit that was nearly equivalent to the cost of the policy itself, and in some instances was fully funded by transfers from offshore bank accounts. Upon redemption, the U.S. taxpayer would receive the premium amount plus any investment earnings on the policy less a very small percentage for putative risk and fees.
Despite knowing that some of these policies, which had minimal-to-no risk mitigation function and specialized investment options, were held by U.S. taxpayers, Zurich International Life failed to act appropriately to ensure timely compliance by the policyholders with U.S. tax laws. In at least one instance, uncovered during the course of Zurich Life’s internal review, a former U.S. citizen, who pled guilty to a federal fraud offense after purchasing a Zurich International Life policy, used that insurance policy to hide substantial assets, despite owing approximately $900,000 in restitution to his victims.
Following the commencement of the Department’s Swiss Bank Program, the Zurich Group initiated a global review of the life insurance, savings and pension business sold by all of its non-U.S. operating companies to identify policies or accounts with U.S. indicia. This review prompted an extensive customer outreach to current and former customers with a possible nexus to the United States to confirm the customers’ status as U.S. taxpayers, assess their compliance with applicable U.S. tax and reporting rules, and encourage participation in an IRS voluntary disclosure program.
In July 2015, Zurich contacted the Department to inform it of the initial findings of the self-review. Prior to the self-reporting, Zurich was neither a subject nor a target of any investigation being conducted by the Tax Division. Since this self-disclosure, Zurich has conducted a thorough investigation and reported substantial findings to the Tax Division, including dozens of detailed summaries of account information and comprehensive reports for the U.S. related policies.
In addition to these efforts, the Companies have worked closely with non-U.S. regulators to ensure full disclosure to the Department. For instance, in 2016, Zurich Life applied to the Swiss Federal Department of Finance and received approval to waive Article 271 of the Swiss Criminal Code, which restricted the disclosures that Zurich Life could make to the Department, thereby facilitating Zurich Life’s production of certain information that would have otherwise been prohibited.
Principal Assistant Attorney General Zuckerman of the Justice Department’s Tax Division thanked Senior Litigation Counsel Nanette Davis and Trial Attorney Jack Morgan of the Tax Division for their substantial assistance. The Tax Division also thanks the Internal Revenue Service for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Youngstown man indicted for trafficking crack cocaineRead the Press Release
A federal grand jury returned a two-count indictment charging Rafael Ernesto Dones Rosa, 33, of Youngstown, with possession with intent to distribute crack cocaine and use of the mail in causing or facilitating the commission of a felony.
The indictment alleges that on or about April 3, 2019, Rafael Ernesto Dones Rosa knowingly and intentionally possessed with the intent to distribute at least 500 grams of cocaine.
The indictment also alleges that on or about April 3, 2019, Rafael Ernesto Dones Rosa did knowingly and intentionally use the mail in facilitating the commission of a felony.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Postal Service. The case is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wichita Man Sentenced on Gambling, Tax ChargesRead the Press Release
WICHITA, KAN. – Danny Chapman, 68, Wichita, Kan., was sentenced today to two years on supervised probation for operating a gambling business and failing to pay income taxes on the proceeds, U.S. Attorney Stephen McAllister said. In addition, Chapman agreed to forfeit more than $1.6 million in cash, as well as cars, jewelry and other items.
Chapman pleaded guilty to one count of operating an illegal gambling business and one count of tax evasion.
In his plea, Chapman admitted he worked as a sports bookmaker in the Wichita area and had at least five people working for him. Chapman and his subordinates took bets on sporting events from clients in their “book” of bettors and collected from clients who lost their bets. They arranged for clients to place bets through online gambling web sites that were created and hosted in Costa Rica. Chapman and subordinates kept a portion of the money they collected. The operation grossed as much as $2,000 in a single day.
Chapman admitted he failed to pay almost $345,000 in federal income taxes on his earnings from illegal gambling.
McAllister commended the FBI, IRS Criminal Investigation, Assistant U.S. Attorney Aaron Smith and Assistant U.S. Attorney Mona Furst for their work on the case.
Waterbury Cocaine Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERNESTO LUIS DELGADO, also known as “Pancho,” 34, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, Delgado was a member of a drug trafficking organization in Waterbury that received kilogram-quantities of cocaine in the U.S. Mail from a source of supply in Puerto Rico, and then distributed the drug in the Waterbury area. Delgado and other then mailed the cash proceeds generated from the sale of the cocaine, at a rate of approximately $25,000 per kilogram, to their supplier in Puerto Rico. On July 15, 2017, investigators seized a parcel containing $100,000 in cash that Delgado had mailed at a post office in Waterbury.
Delgado was arrested on December 1, 2017. At the time of his arrest, he was in the process of receiving two parcels, each containing two kilograms of cocaine.
Delegado has been detained since his arrest. On January 28, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine.
On September 12, 2018, Judge Bolden sentenced Jose L. Rivera, 41, of Waterbury, to 60 months of imprisonment and four years of supervised release for his role in this cocaine trafficking ring.
This matter was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration and Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Vermont Man Convicted of Procuring Naturalization Contrary to LawRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Hussien Noor Hussien, 56, of Burlington, Vermont, was convicted today following a three-day jury trial in U.S. District Court of personage of another in a naturalization proceeding, procuring naturalization contrary to law, and making a false statement on a passport application.
Court records and trial evidence revealed that in 2004, Hussien entered the United States as a refugee under the name Abukar Hassan Abdule. He entered with the wife and children of the true Abukar Hassan Abdule. In 2011, he applied for U.S. citizenship under the same name. He affirmed on his citizenship application and during an in-person citizenship interview in South Portland, Maine, that his name was Abukar Hassan Abdule. He ultimately was naturalized under the same name. After becoming a U.S. citizen, he applied for a U.S. passport under the name Abukar Hassan Abdule. In 2013, he filed in Vermont state court to legally change his name in the U.S. from Abukar Hassan Abdule to Hussien Noor Hussien, the name he was given at birth.
Hussien faces a maximum of five years in prison on the count of personage of another in a naturalization proceeding, up to ten years in prison on the other two counts, and a fine of up to $250,000 on each count. In addition, by law, due to the conviction for procuring naturalization contrary to law, the Court must revoke Hussien’s citizenship. Hussien will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Department of State, Diplomatic Security Service; the U.S. Department of Homeland Security, Homeland Security Investigations; and the U.S. Department of Housing and Urban Development, Office of Inspector General.
United States Files Complaint Seeking Forfeiture of Thousands “Fashion Dolls” That Infringe on Mattel’s “Barbie” CopyrightRead the Press Release
United States Attorney Erica MacDonald today announced the filing of a civil forfeiture complaint seeking to forfeit and recover approximately 21,852 fashion dolls that infringe a registered copyright owned by Mattel, Inc.
As alleged in the forfeiture complaint, on September 27, 2017, a shipping container aboard a Canadian National Railway train arrived into Ranier, Minnesota. The importer, Greenbrier International Inc. d/b/a Dollar Tree Inc., and Dollar Tree Distribution (“Greenbrier”) listed the contents of the shipping container as “Other Toys” on its manifest. U.S. Customs and Border Protection (CBP) officers examined the container and discovered the 21,852 toy “fashion dolls.” Representatives of Mattel reviewed photographs of the fashion dolls and confirmed that they were unauthorized copies that infringed the “CEO Barbie” doll head copyright owned by Mattel, Inc. Specifically, Mattel identified several features of the copyrighted CEO Barbie head sculpt infringed by the fashion dolls, including the shape of the mouth, nose and jaw.
As alleged in the forfeiture complaint, in 2016, Greenbrier attempted to import 13,296 Mermaid fashion dolls that were seized at the border by CBP for infringement of the CEO Barbie head sculpt. In both instances, the counterfeit dolls originated from the same exporter/shipper located in Hong Kong.
This case is being handled by the Asset Forfeiture Unit of the U.S. Attorney’s Office for the District of Minnesota, and was investigated by U.S. Customs and Border Protection.
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Uniontown Man Possessed Hundreds of Pornographic Images and Videos of ChildrenRead the Press Release
PITTSBURGH, PA - A resident of Uniontown, Pennsylvania pleaded guilty in federal court to a charge of possession of materials depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
Jason A. Early, 41, pleaded guilty yesterday to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the Court was advised that in October 2017, Homeland Security Investigations was conducting an investigation into the Internet sharing of child pornography (CP). They obtained and executed a search warrant at the residence of Jason Early. A forensic review of his devices revealed 1,181 images and videos depicting CP, including images and videos of toddlers 2 or 3 years of age, as well as bondage. Early admitted to viewing CP through peer to peer programs and that there was CP stored on his MacBook and on two external hard drives.
Judge Ambrose scheduled sentencing for August 22, 2019. The law provides for a maximum sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court continued Early’s bond.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the Information in this case.
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 (CEOS), 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.justice.gov/psc.
Union Woman Receives 2 Years in Federal Prison for Fraudulent Tax Preparation ServiceRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Ashley E. Browning, age 32, of Union, South Carolina, was sentenced in federal court after pleading guilty to preparing and presenting false tax returns. United States District Judge Timothy M. Cain of Anderson sentenced Browning to 2 years in federal prison and ordered that she pay over $200,000 in restitution to the federal government.
Evidence presented to the court established that Browning prepared and filed, and assisted in preparing and filing of, multiple tax returns for customers in exchange for fees. Browning carried out this conduct from her home in Union County and also from the homes of her customers who resided in and around Union County. Browning repeatedly falsified information in returns she prepared in order to generate fraudulent refunds. For example, Browning repeatedly submitted false information about customers’ income, federal withholding, and educational expenses. Because of this pattern of falsification, the Government issued approximately $200,000 more in refunds than it would have if accurate and honest information had been submitted by Browning.
The case was investigated by agents with the Internal Revenue Service and the Union City Police Department. Assistant United States Attorney Bill Watkins of the Greenville office prosecuted the case.
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U.S. Military Dependant Convicted of Attempted Voluntary Manslaughter and Other Charges Stemming from an Assault of Several U.S. Airmen on a Military Base in JapanRead the Press Release
After a three day trial, a federal jury in Little Rock, Arkansas, convicted a man who was then-residing on the Misawa Air Base, a military base in Japan, of multiple charges, stemming from the assault of three U.S. Air Force airmen and resisting military police who attempted to restrain him.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Cody Hiland of the Eastern District of Arkansas and Colonel Kirk B. Stabler of the U.S. Air Force Office of Special Investigations made the announcement.
Rodrigo Pineda Gomez, 44, who was residing in Japan, was convicted of one count of attempted voluntary manslaughter, one count of assault with a dangerous weapon, three counts of assault by striking, beating, or wounding, one count of resisting a federal officer, and one count of making a false statement to law enforcement.
This verdict follows the earlier guilty plea on April 19 of Miguel Gomez, 21, the son of Rodrigo Gomez and himself a participant in the assault, to one count of assault by striking, beating or wounding.
The presiding judge, U.S. District Judge James Moody, Jr., has yet to set a sentencing date.
According to the superseding indictment and evidence presented at trial, on Dec. 31, 2016, on Misawa Air Base in Japan, the defendants, Rodrigo Gomez and his son, Miguel Gomez, assaulted three U.S. Air Force airmen. During the assault, defendant Rodrigo Gomez attempted to kill one of the airmen by attempting to snap his neck and stomping on his head repeatedly while he was on the ground. He subsequently resisted arrest after law enforcement arrived, and then later made a false statement about the incident. Co-defendant Miguel Gomez also assaulted one of the airmen. At the time of the assault, defendant Rodrigo Gomez was the dependent spouse and Miguel Gomez the son of an active duty service member assigned to the base. Their last known U.S. address at the time of indictment was Jacksonville, Arkansas.
The investigation was conducted by the U.S. Air Force Office of Special Investigations. Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Stacy Williams of the Eastern District of Arkansas are prosecuting the case.
U.S. Attorney, DEA Ask Georgians to Clear Out Unused Prescription Medications, Fight Growing Opioid EpidemicRead the Press Release
MACON— The 17th National Prescription Drug Take Back Day is this weekend, and collection sites will be open across the Middle District of Georgia, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. People can safely and anonymously dispose of their expired, unused and unwanted prescription medications on Saturday, April 27, 2019. Approximately 6,000 collection sites manned by nearly 5,000 partner law enforcement agencies will be open across the country. In Georgia, people can find their closest collection site online at www.DEATakeBack.com or by calling 1-800-882-9539. Collection sites are open Saturday from 10 a.m. to 2 p.m. Liquids, needles and sharps will not be accepted, only pills and patches.
The United States Drug Enforcement Administration (DEA) began this free service to remove opioids and other addictive medicines from homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens. DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of medicines since Take Back Day’s inception in 2010. The rate of prescription drug abuse in the United States continues to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
“The societal problems created by opioid addiction are serious and widespread, and we are dealing with the negative effects in our justice system every day,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Doing something as simple as cleaning out your medicine cabinet of unwanted prescription drugs, and properly disposing of them, will have a positive impact in our communities. The goal is to decrease opioid addiction, and we all need to work together to end easy access to these highly addictive drugs.”
“Addressing the problem of the abuse of controlled pharmaceuticals continues to be one of DEA’s top priorities,” said Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division, DEA. “One way to address this issue is to encourage the public to properly remove their unwanted, unused and dated prescription medications from their homes. DEA and its law enforcement, tribal and community partners are holding its seventeenth take-back event in order to child proof and teen proof homes so that these medications cannot be abused. I invite you to do your part in the midst of this opioid crisis as we strive to make our communities safer.”
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. Take Back Day provides a free and anonymous way to safely dispose of millions of medications languishing in home cabinets, becoming highly susceptible to diversion, misuse or abuse. Last October, Americans turned in 457 tons (900,000 pounds) of prescription drugs on National Take Back Day. It’s quick and easy to locate a disposal site by visiting www.DEATakeBack.com and scrolling down to Collection Site Locator, then entering your zip code or County/City/State to see the collection sites nearest you.
Questions can be directed to Pamela Lightsey, Public Information Officer, and 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.
U.S. Attorney Supports Taking Back Unused Prescription Drugs on April 27thRead the Press Release
LEXINGTON, Ky. – Robert M. Duncan, Jr., the U.S. Attorney for the Eastern District of Kentucky, has announced his support for the DEA and Lexington Police Department, in their National Prescription Drug Take Back Day, on Saturday, April 27th, from 10 a.m. to 2 p.m., and his encouragement to the public to participate in the event. The DEA and local agencies will be providing a 17th opportunity, in the past 9 years, to take an easy step toward preventing pill abuse and theft, by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Bring your pills for disposal to the following site:
Lexington - Kentucky American Water, 2300 Richmond Rd.
The DEA cannot accept liquids, needles, or sharps, only pills or patches. The service is free and anonymous, no questions asked.
“I strongly support the efforts of DEA and our other law enforcement partners in reducing unlawful access to prescription drugs,” stated U.S. Attorney Duncan. “The DEA and the other agencies involved in Take Back Day provide a vital resource in fighting the opioid problem in the Commonwealth. Far too often, the path to addiction starts with experimentation with legitimately prescribed prescription opioids found in the home. By participating in Take Back Day and disposing of unused pills, you can help prevent a loved one from misusing or abusing prescription drugs.”
At a time when prescription opioid pain relievers are killing more Americans than car accidents, the National Prescription Drug Take-Back Day is an easy way we can all make sure that our unneeded, unused, or expired medications don’t end up in the wrong hands,” said D. Christopher Evans, Special Agent In Charge of DEA’s Louisville Field Division.
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
National Take Back Day has received enthusiastic public support since its inception in 2010. Last October, the public turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,800 of its local and tribal partners.
For more information about the disposal of prescription drugs or about the April 27th Take Back Day event, go to www.DEATakeBack.com.
U.S. Attorney Encourages Public to Participate in DEA’s Prescription Drug Take Back DayRead the Press Release
BOISE – U.S. Attorney Bart M. Davis will join the Drug Enforcement Administration (DEA) on April 27th for its 17th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including 45 here in Idaho. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Idahoans know that opioid abuse is at a crisis level, nationally. Our state is no different, as we, also, experience all-too-frequent drug overdose deaths. “The widespread prevalence of unused prescription medication is a significant contributor to the problem,” stated U.S. Attorney Davis. “Prescription Drug Take Back Day is an opportunity to get rid of a substantial part of the pain pill supply available for abuse. I urge everyone to do their part to fight drug abuse by going to a collection site and safely disposing of unused, expired, and dangerous prescription medication.”
Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at www.DEATakeBack.com where you can search by zip code, city, or state.
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U.S. Attorney Encourages Public Participation in DEA’s 17th National Prescription Drug Take Back DayRead the Press Release
Columbia, South Carolina --- U.S. Attorney Sherri A. Lydon today encouraged public participation in the Drug Enforcement Administration’s 17th National Prescription Drug Take Back Day. The biannual event will take place this Saturday, April 27, from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including 66 here in South Carolina. National Prescription Drug Take Back Day is an effort to remove opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft, or abuse by family members and visitors, including children and teens.
“Opioid fatalities in South Carolina swelled by 700% between 2002 and 2017,” said U.S. Attorney Lydon. “Working together, we can break the vicious cycle of drug abuse, addiction, and overdose that has devastated countless families across our state. The DEA’s National Prescription Drug Take Back Day is an opportunity to safely dispose of your prescription drugs, helping to keep dangerous narcotics out of the wrong hands and to stop opioid addiction before it starts.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said, “Addressing the problem of the abuse of controlled pharmaceuticals continues to be one of DEA’s top priorities. One way to address this issue is to encourage the public to properly remove their unwanted, unused, and dated prescription medications from their homes. DEA and its law enforcement, tribal, and community partners are holding its seventeenth take-back event in order to child proof and teen proof homes so that these medications cannot be abused. I invite you to do your part in the midst of this opioid crisis as we strive to make our communities safer.”
Last October, South Carolinians participating in DEA’s Drug Take Back Day turned in 7,526 pounds of unwanted or expired medications for safe and proper disposal. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps. It can accept only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, visit https://takebackday.dea.gov/#collection-locator.
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U.S. Attorney David C. Joseph partners with DEA in its 17th annual National Prescription Drug Take Back DayRead the Press Release
SHREVEPORT, LAFAYETTE, MONROE, ALEXANDRIA, LAKE CHARLES, La. – United States Attorney David C. Joseph will join the DEA this weekend for its 17th National Prescription Drug Take Back Day. The public will have the opportunity to rid their homes of potentially dangerous expired, unused and unwanted prescription drugs between 10 a.m. and 2 p.m. on Saturday, April 27, at collection sites across the Western District of Louisiana, which local law enforcement agencies and community partners will operate. The disposal service is free and anonymous - no questions asked.
“Unused prescription drugs often make their way into the hands of those who abuse them or children who might accidentally take them,” Joseph sated. “Please take advantage of this opportunity to dispose of these dangerous substances on Saturday at locations throughout the Western District of Louisiana. I am pleased to partner with DEA in supporting this event, and I encourage the public to do their part.”
“Prescription drug abuse has become the nation’s fastest growing drug epidemic,” DEA New Orleans Field Division Special Agent in Charge Brad Byerley said. “Last year, more Americans died from opioid overdoses than from all other drugs combined, including meth, cocaine and hallucinogens. Unfortunately, these prescription drugs are most often obtained from friends and family, who leave them in home medicine cabinets. DEA’s Take-Back initiative provides citizens an easy and safe way to dispose of unwanted prescription drugs. Please do your part to keep prescription drugs off the streets and help spread awareness in your community.”
Last October, Americans turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,800 of its state and local law enforcement partners. In Louisiana, 3,615 pounds were collected. Overall, in its 16 previous Take Back events, DEA and its partners have taken in more than 11 million pounds—more than 5,400 tons—of pills.
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses because of these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 46 Americans die each day from an opioid overdose.
To find a collection site near you, go to: www.DEATakeBack.com where you can search by zip code, city and state or call 800-882-9539. (DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Drugs can be dropped off from 10 a.m. to 2 p.m. at the following locations across the Western District of Louisiana:
Shreveport
- Caddo Parish Sheriff’s Office Safety Town, 8910 Jewella Ave.
- Pierremont Mall, 4801 Line Ave. – staffed by Shreveport Police Department
- Louisiana State Police Troop G, 5300 Industrial Drive Ext.
Lafayette
- Lafayette Parish Sheriff’s Office Public Safety Complex, 1825 W. Willow St.
Alexandria
- Alexandria Police Department, 1000 Bolton Ave.
Lake Charles
- Lake Charles Police Department, Civic Center, 900 Lake Shore Drive
- Westlake Police Department, 701 Johnson Street
- Louisiana State Police, Troop D, 805 Main St.
Monroe
- Louisiana State Police, Troop F, 3811 Desiard St.
- Monroe Police Department, 700 Wood St.
Parents and children are encouraged to educate themselves about the dangers of drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.
U.S. Attorney Christina E. Nolan Announces DEA and Partners Hold National Prescription Drug Take Back Day on SaturdayRead the Press Release
Burlington, VT – This weekend, the U.S. Drug Enforcement Administration will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday, April 27, between 10 a.m. and 2 p.m., the public can dispose of their expired, unused and unwanted prescription medications at over 600 collection sites throughout New England, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department. To find a collection site near you go to: https://takebackday.dea.gov/.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.
“DEA has touched a nerve in America with its recent Take Back events, as evidenced by the millions of pounds of pills collected during our previous 16 events,” said DEA Special Agent in Charge Brian D. Boyle. “These events are only made possible through the dedicated work and commitment of our local, state and federal partners, and DEA thanks each and every one of them for their continuous efforts on behalf of the American people.”
Last October, during its 16th Take Back Day, the DEA New England Division participated in the drug take back day and, over the course of four hours, 80,277.58 pounds or 40 tons of expired, unused and unwanted prescription drugs were collected at 613 collection sites throughout New England.
The following was the breakdown of collected weights for the six New England states:
CT 4,792.30 lbs.
MA 26,255.58 lbs.
ME 27,156.70 lbs.
NH 11,880 lbs.
RI 4,364 lbs.
VT 5,829 lbs.
TOTAL 80,277.58 lbs.
U.S. Attorney Christina E. Nolan praised the DEA for spearheading the take back initiative, and thanked state, local, and county Vermont law enforcement partners for participation and assistance with the program. She stated: “It goes without saying that we cannot charge our way out of the drug crisis. As we continue to vigorously pursue reduction of drug supply in Vermont through investigation and prosecution, we must work with equal vigor to reduce demand and prevent first time drug use. I commend our partners at DEA for recognizing the importance of prevention and for doing so much to remove excess pharmaceutical drug supply from homes throughout Vermont. Every pill taken back on Saturday contributes to a reduction in risk that a Vermonter will try opiates or other drugs for the first time. Accordingly, we should all celebrate this initiative.”Two men with prior homicide convictions sentenced to prison for firearms and drug crimes after search of Canton home revealed guns, drugs and body armorRead the Press Release
Two men with prior homicide convictions were sentenced to prison for firearms and drug trafficking charges crimes.
Maurice A. Stewart, 42, was sentenced to more than 18 years in prison this week. A jury previously convicted him of drug trafficking, possession of a firearm in furtherance of a drug trafficking and being a felon in possession of firearms.
William W. Moore, 38, was sentenced to 63 months in prison. He previously pleaded guilty to drug and firearms charges.
A third man, Jason E. Cousins, 47, was sentenced to 73 months in prison. Cousins was found guilty of a firearm offense following a trial.
According to court documents and evidence presented in court:
U.S. Marshals were searching for Moore, who was wanted on drug and firearms warrants out of West Virginia, when they tracked him to a home in Canton on November 17, 2016.
A search of the home resulted in the recovery of nearly eight pounds of methamphetamine, cocaine, crack cocaine, $10,904 in cash, two loaded handguns, a Mossberg 12 gauge shotgun, an AR-15 rifle and body armor.
The evidence at trial connected all three men to items recovered at the residence.
Moore was prohibited from possessing a firearm because of a previous conviction for murder.
Stewart was prohibited from possessing a firearm because of a previous conviction involuntary manslaughter.
Cousins was prohibited from possessing a firearm because of previous convictions for possession of cocaine and carrying a concealed weapon.
This case is being prosecuted by Assistant U.S. Attorneys Aaron P. Howell and Peter Daly following an investigation by the U.S. Marshals Fugitive Task Force, the Canton Police Department, the Federal Bureau of Investigation and the Drug Enforcement Administration.
Two Pharmaceutical Companies Agree to Pay a Total of Nearly $125 Million to Resolve Allegations that they Paid Kickbacks Through Co-Pay Assistance FoundationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that two pharmaceutical companies – Astellas Pharma US, Inc. (Astellas), and Amgen Inc. (Amgen) – have agreed to pay a total of $124.75 million to resolve allegations that they violated the False Claims Act by illegally paying the Medicare co-pays for their own high-priced drugs.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively, co-pays). Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
“According to the allegations in today’s settlements, Astellas and Amgen conspired with two co-pay foundations to create funds that functioned almost exclusively to benefit patients taking Astellas and Amgen drugs,” said United States Attorney Andrew E. Lelling. “As a result, the companies’ payments to the foundations were not ‘donations,’ but rather were kickbacks that undermined the structure of the Medicare program and illegally subsidized the high costs of the companies’ drugs at the expense of American taxpayers. We will keep pursuing these cases until pharmaceutical companies stop engaging in this kind of behavior.”
“When pharmaceutical companies use foundations to create funds that are used improperly to subsidize the copays of only their own drugs, it violates the law and undercuts a key safeguard against rising drug costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”
“As today’s settlements make clear, the FBI will aggressively go after pharmaceutical companies that look to bolster their drug prices by paying illegal kickbacks--whether directly or indirectly--to undermine taxpayer funded healthcare programs, including Medicare,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The government’s allegations in the two settlements announced today are as follows:
Astellas. Astellas sells Xtandi, an androgen receptor inhibitor (ARI) drug used to treat metastatic castration resistant prostate cancer (mCRPC) in patients who have failed chemotherapy. While there are other mCRPC drugs, none of the other major mCRPC drugs is an ARI. The government alleges that, during the period from July 2013 through December 2014, Astellas arranged for two foundations to operate ARI funds that covered mCRPC patients’ co-pays for ARIs, but not for other mCRPC drugs, and that Xtandi patients received nearly all of the assistance from these two funds. The government further alleges that, during the time that the ARI funds were open, Astellas promoted the existence of the ARI funds as an advantage for Xtandi over competing mCRPC drugs in an effort to persuade medical providers to prescribe Xtandi. During this period, Astellas raised the price of Xtandi at over 24 times the rate of overall inflation in the United States. Astellas has agreed to pay $100 million to resolve the government’s allegations.
Amgen. Amgen sells Sensipar, a treatment for secondary hyperparathyroidism (SHPT), and Kyprolis, a treatment of multiple myeloma. The government alleges that, in late 2011, Amgen stopped donating to a foundation that covered co-pays for patients taking any of several SHPT drugs and approached a new foundation about creating a fund that would cover only Sensipar patients’ Medicare co-pays. Amgen thereafter paid millions of dollars to this fund. Until June 2014, the fund helped only Sensipar patients, as Amgen had requested. Amgen allegedly covered the co-pays of Sensipar patients through this fund even though the cost of doing so exceeded the cost Amgen would have incurred by providing free Sensipar to the same patients. By enabling the fund to cover the copays of Medicare beneficiaries, Amgen caused claims to be submitted to Medicare and generated revenue for itself. During the period the fund covered only Sensipar, Amgen raised the price of Sensipar at over four times the rate of overall inflation in the United States.
The government further alleges that Amgen’s predecessor, Onyx Pharmaceuticals Inc. (Onyx), asked a different foundation to create a fund that, ostensibly, would cover health care related travel expenses for patients taking any multiple myeloma drug, but that, as Onyx and the foundation both knew, functioned almost exclusively to cover travel expenses for patients taking Kyprolis. The foundation also operated a second fund that covered co-pays for several multiple myeloma drugs, including Kyprolis. The government alleges that, for 2013, Onyx obtained data from the foundation on the multiple myeloma fund’s anticipated and actual expenses for coverage only of Kyprolis co-pays. Onyx then donated to the fund in an amount Onyx understood to be sufficient only to cover the co-pays of Kyprolis patients. Amgen has agreed to pay $24.75 million to resolve the government’s allegations.
Amgen and Astellas each entered five-year corporate integrity agreements (CIAs) with OIG as part of their respective settlements. The CIAs require the companies to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs to which they donate. In addition, the companies agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.
To date, the Department of Justice has collected over $840 million from eight pharmaceutical companies (United Therapeutics, Pfizer, Actelion, Jazz, Lundbeck, Alexion, Astellas, and Amgen) that allegedly used third-party foundations as kickback vehicles. The U.S. Attorney’s Office for the District of Massachusetts initiated each of these investigations.
U.S. Attorney Lelling, Assistant Attorney General Hunt, HHS-OIG SAC Coyne, and FBI SAC Bonavolonta made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Abraham George, of Lelling’s Affirmative Civil Enforcement Unit, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Two Pharmaceutical Companies Agree to Pay a Total of Nearly $125 Million to Resolve Allegations That They Paid Kickbacks Through Copay Assistance FoundationsRead the Press Release
The Department of Justice announced today that two more pharmaceutical companies – Astellas Pharma US Inc. (Astellas) and Amgen Inc. (Amgen) – have agreed to pay a total of $124.75 million to resolve allegations that they each violated the False Claims Act by illegally paying the Medicare copays for their own products, through purportedly independent foundations that the companies used as mere conduits.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
“When pharmaceutical companies use foundations to create funds that are used improperly to subsidize the copays of only their own drugs, it violates the law and undercuts a key safeguard against rising drug costs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”
“According to the allegations in today’s settlements, Astellas and Amgen conspired with two copay foundations to create funds that functioned almost exclusively to benefit patients taking Astellas and Amgen drugs,” said United States Attorney Andrew E. Lelling. “As a result, the companies’ payments to the foundations were not ‘donations,’ but rather were kickbacks that undermined the structure of the Medicare program and illegally subsidized the high costs of the companies’ drugs at the expense of American taxpayers. We will keep pursuing these cases until pharmaceutical companies stop engaging in this kind of behavior.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”
“As today's settlements make clear, the FBI will aggressively go after pharmaceutical companies that look to bolster their drug prices by paying illegal kickbacks — whether directly or indirectly — to undermine taxpayer funded healthcare programs, including Medicare,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
Amgen and Astellas each entered five-year corporate integrity agreements (CIAs) with OIG as part of their respective settlements. The CIAs require the companies to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs to which they donate. In addition, the companies agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.
The government’s allegations in the two settlements being announced today are as follows:
Astellas: Astellas sells Xtandi, an androgen receptor inhibitor (ARI) used to treat certain prostate cancer; none of the other major drugs to treat the condition is an ARI. The government alleged that, in May 2013, Astellas asked two foundations about the creation of copay assistance funds to cover the copays for Medicare patients taking ARIs, but not for other types of prostate cancer drugs. In July 2013, both foundations opened ARI-only copay funds; Astellas was the sole donor to both funds. The government alleged that Astellas knew that Xtandi would likely account for the vast majority of utilization from each fund, and, in fact, Medicare patients taking Xtandi received nearly all of the copay assistance from the two ARI funds. The government further alleged that, during the time that the ARI funds were open, Astellas promoted the existence of the ARI funds as an advantage for Xtandi over competing drugs in an effort to persuade medical providers to prescribe Xtandi. Astellas has agreed to pay $100 million to resolve the government’s allegations.
Amgen: Amgen sells the secondary hyperparathyroidism drug Sensipar and the multiple myeloma drug Kyprolis. Amgen acquired Kyprolis as part of its acquisition of Onyx Pharmaceuticals Inc. in 2013. With respect to Sensipar, the government alleged that, in late 2011, Amgen stopped donating to a foundation that provided financial support to patients taking any of several secondary hyperparathyroidism drugs and approached a new foundation about creating a “Secondary Hyperparathyroidism” fund that would support only Sensipar patients. Amgen allegedly worked with the new foundation to determine the fund’s coverage parameters and, in November 2011, the foundation launched a “Secondary Hyperparathyroidism” fund with Amgen as its sole donor. Until June 2014, the fund covered only Sensipar. Amgen allegedly made payments to the fund even though the cost of these payments exceeded the cost to Amgen of providing free Sensipar to financially needy patients. However, by enabling the fund to cover the copays of Medicare beneficiaries, Amgen caused claims to be submitted to Medicare and generated revenue for itself.
With respect to Kyprolis, the government also alleged that Amgen’s predecessor, Onyx, asked a foundation to create a fund that ostensibly would cover health care related travel expenses for patients taking any multiple myeloma drug, but which was actually used almost exclusively to cover travel expenses for patients taking Kyprolis, which must be infused at certain health care facilities. The government alleged that Onyx was the sole donor to this travel fund and that Amgen, after integrating Onyx into its operations in 2015, continued to donate to the fund. The foundation also operated a second fund that covered copays for multiple myeloma drugs, including Kyprolis. While this latter fund had multiple donors, the government alleged that, for 2013, Onyx received data from the foundation on the fund’s anticipated and actual expenses for coverage of Kyprolis copays, which it used to tailor its donations to the fund to just the amount needed to cover the copays of Kyprolis patients. Amgen has agreed to pay $24.75 million to resolve the government’s allegations.
The government’s resolution of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
These investigations were conducted by the Department of Justice’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; and the FBI. The U.S. Postal Inspection Service also assisted with the investigation.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Two Eastside Hollygrove Residents Plead Guilty to Gun and Drug ViolationsRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that JONATHAN LAWRENCE, a/k/a “Chop,” a/k/a “Mego,” age 32, and VONZO MAGEE, a/k/a “Zo, a/k/a “Dark Low,” age 31, both of New Orleans, pleaded guilty yesterday to violations of the Federal Controlled Substances Act and Federal Gun Control Act.
Specifically, LAWRENCE pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute heroin and fentanyl; one count of conspiring to possess firearms in furtherance of drug trafficking; and one count of discharging a firearm in a school zone. On his drug conspiracy count, LAWRENCE is facing a mandatory minimum sentence of 15 years’ imprisonment, a maximum sentence of life, a possible fine of up to $20,000,000, and at least ten years of supervised release upon his release from prison. On the firearm conspiracy count, LAWRENCE is facing a maximum sentence of 20 years’ imprisonment, a possible fine of up to $250,000, and not more than three years of supervised release. On the discharging a firearm in a school zone count, LAWRENCE is facing a maximum sentence of 5 years’ imprisonment, a possible fine of up to $100,000, and not more than one year of supervised release.
MAGEE pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute heroin and fentanyl, and one count of being a felon in possession of a firearm. On the drug conspiracy count, MAGEE is facing a mandatory minimum sentence of 5 years’ imprisonment, a maximum sentence of 40 years’ imprisonment, a possible fine of up to $5,000,000, and at least four years of supervised release upon his release from prison. On the felon in possession count, MAGEE is facing a maximum sentence of 10 years’ imprisonment, a possible fine of up to $250,000, and not more than three years of supervised release.
U.S. District Judge Sarah S. Vance will sentence LAWRENCE and MAGEE on August 7, 2019.
U.S. Attorney Strasser praised the work of the FBI New Orleans Gang Task Force (NOGFT), which led this investigation and was assisted by the Drug Enforcement Administration, New Orleans Police Department, St. Tammany Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Brandon S. Long, David Haller, and Edward Rivera are in charge of the prosecution.
Two Canadian men indicted for selling carfentanil, fentanyl and heroin over the Internet and shipping the drugs to Europe, Canada and the U.S., including OhioRead the Press Release
Two Canadian men were indicted for their roles in a conspiracy to sell carfentanil, fentanyl, heroin and other drugs over the Internet and ship the drugs to locations in Europe, Canada and the United States, including Northern Ohio.
Named in the 10-count indictment are Robert Mitrache, 34, of Chateauguay, and Louis-Vincent Bourcier, 30, of Mercier. They are charged with conspiracy to import controlled substances, distribution of furanyl fentanyl, distribution of heroin and methamphetamine, and other charges.
According to the indictment filed in U.S. District Court in Cleveland:
Mitrache and Bourcier were among the people who controlled the Pharmaphil vendor account that operated on dark net marketplaces such as AlphaBay, Dream Market, the Majestic Garden and other marketplaces.
The Pharmaphil account served as an online storefront that trafficked narcotics such as fentanyl, carfentanil, heroin and methamphetamine to locations in Canada, the United States, Germany, Austria and other countries. The organization had more than 1,500 confirmed sales across multiple dark net marketplaces, according to the indictment.
Mitrache, Bourcier and others used various methods designed to protect the anonymity of buyers and sellers from law enforcement and other organizations. These methods included internally hosted message boards, using encrypted messaging applications, and proxies, which bounced network traffic from one computer to another.
Members of the conspiracy laundered its drug profits through a variety of means, including maintaining and using digital currency such as bitcoin, according to the indictment.
The conspiracy took placed between at least May 2015 through December 16, 2017, according to the indictment.
Both defendants are currently incarcerated in Canada.
“This case is a stark reminder of the way deadly narcotics are bought and sold has changed dramatically,” U.S. Attorney Justin Herdman said. “Law enforcement has adapted too and are working to arrest and prosecute those who sell opioids and other drugs over the Internet.”
“The charges against these defendants should make it abundantly clear that those who distribute deadly drugs via the Dark Net are not out of reach of law enforcement,” said Homeland Security Investigations Special Agent in Charge Steve Francis. “HSI is committed to targeting the unlawful sale of opioids, following the money trails and leveraging our international and local partnerships to dismantle drug smuggling rings and stop this opioid crisis from spreading any further.”
“Battling the distribution of synthetic opioids in the U.S. is one of the Postal Inspection Service’s highest priorities,” said U.S. Postal Inspection Service’s Inspector in Charge Tommy Coke. “The indictment proves postal inspectors and their law enforcement partners remain steadfast in dismantling dark net vendors of illicit and dangerous items. This should serve as an example to criminal groups using the dark net that we are unwavering in our mission to identify and disrupt their illegal activity.”
FBI Special Agent in Charge Eric B. Smith said: "These two defendants believed that by utilizing the dark web and sophisticated cyber techniques their dangerous, world wide drug dealing would go undetected by law enforcement - they were wrong. Collaborative law enforcement techniques identified these two and now they will be held accountable for selling and distributing deadly controlled substances."
This case was investigated by Homeland Security Investigations, the U.S. Postal Inspection Service, the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations as part of “Operation Darkness Falls,” a joint operation targeting people and organizations that sell fentanyl and other drugs over the dark net. Also involved in this investigation were the Royal Canadian Mounted Police, the Public Prosecution Service of Canada, the Justice Department’s Special Operations Division and federal law enforcement in the District of Arizona. This case is being prosecuted by Assistant U.S. Attorneys Matthew Cronin and Daniel Riedl.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking, money laundering and violent criminal organizations operating domestically and internationally. The principle mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, money laundering and violent criminal organizations and those primarily responsible for the nation’s drug supply.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.