Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 25 April 2019
Former Credit Union Lending Director Pleads Guilty to Bank Fraud, Aggravated Identity Theft, and Filing False Tax ReturnsRead the Press Release
TALLAHASSEE, FLORIDA – Kevin Robert Lee, 35, of Tallahassee, Florida, pleaded guilty yesterday afternoon to twenty counts of bank fraud, aggravated identity theft, theft from a lending institution, and three counts of filing a false tax return. The guilty plea was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Between June 2014 and November 2017, Lee was the lending director of FSU Credit Union (FSUCU), a Tallahassee-based credit union, a position that allowed him to open new customer accounts and approve lines of credit. He also served as treasurer of the Tallahassee Chapter of Credit Unions (TCCU), a non-profit organization that advocates pro-credit union legislation.
In 2014, Lee used the name, date of birth, and social security number of the President of TCCU to create a second account for TCCU. Lee used the original TCCU account for fraudulent activity while leaving the new account for legitimate TCCU transactions. Lee also created two accounts using the names, dates of birth, and social security numbers of his college roommates, which served as “intermediary accounts” into which funds stolen from FSUCU customers were deposited. Lee also transferred funds from inactive customer accounts either to pay down the lines of credit he created, to the intermediary accounts he created, or into the original TCCU account. Lee used the stolen funds to pay off personal credit cards, to make mortgage and car payments, and for his children’s tuition. In total, Lee transferred or withdrew a total of $806,666.26 from FSUCU. In February 2016 and March 2017, Lee filed tax returns in which he did not claim as income the funds he stole from FSUCU.
Lee faces the following penalties:
- Bank fraud: a maximum of 30 years in prison;
- Aggravated identity theft: a 2-year mandatory minimum prison sentence consecutive to any other sentence imposed;
- Theft from a lending institution: a maximum of 30 years in prison; and
- Filing a false tax return: a maximum of 3 years in prison.
The sentencing hearing is scheduled for August 22, 2019, at 10:00 a.m. at the United States Courthouse in Tallahassee.
This case resulted from an investigation by the Florida Department of Law Enforcement and the Internal Revenue Service – Criminal Investigation, after being alerted by FSU Credit Union. Assistant United States Attorney Justin M. Keen is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Bend Campus Security Officer Receives Second Life Sentence for Federal Kidnapping and CarjackingRead the Press Release
EUGENE, Ore.—Edwin Enoc Lara, 34, a former campus safety officer at Central Oregon Community College and resident of Bend, Oregon, was sentenced today to life in federal prison for kidnapping and carjacking.
“Edwin Lara is a ruthless killer who will rightfully spend the rest of his life in prison,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “There is simply no place in civil society for this type of horrific violence. I sincerely hope Lara’s two life sentences will bring some measure of comfort to his victims and their families. Their courage and perseverance throughout Lara’s lengthy state and federal cases are an inspiration to the entire law enforcement community.”
According to court documents, between July 24 and July 26, 2016, Lara went on a violent crime spree that left multiple victims and their families in its wake. Early on the morning of July 24, 2016, Lara brutally murdered 23-year-old Bend resident Kaylee Sawyer, a crime for which he would later receive a life sentence in Deschutes County Circuit Court.
After the murder, on July 25, 2016, Lara fled to Salem, Oregon where he carjacked and kidnapped a young woman at gun point. Lara told his victim he was a police officer and showed her news reports about what he had done to Kaylee Sawyer. He then forced her to travel with him to California. Along the way, Lara decided to stop at a hotel in Cottage Grove, Oregon. Inside the hotel room, Lara handcuffed his victim, forced her to take sleeping pills, and made a series of physical advances leading her to believe he might sexually assault her.
A short while later, after receiving a phone call and growing concerned that law enforcement was nearing his location, Lara left the hotel with his victim and continued traveling toward California. At some point during the drive, Lara sought to change vehicles to avoid detection and stopped at two rest areas looking for another vehicle to steal.
In the early morning hours on July 26, 2016, Lara stopped at a motel in Yreka, California where he spotted an elderly man near his vehicle. Lara parked, grabbed his victim by the hand and approached the man. With his gun visible, Lara told the man that he needed his vehicle. When the man wouldn’t comply, Lara shot him in the abdomen. At this point, Lara’s victim pleaded with him to let her go, but he again grabbed her hand and forced her to flee with him by foot to a nearby gas station.
At the gas station, Lara found his next victims, two young men and their elderly grandmother, sitting inside a vehicle. After threatening to shoot them, Lara entered their vehicle with his Oregon victim and forced them to drive off. During the drive, Lara confessed to his victims that he had an “urge to kill” and had already murdered a young woman in Bend and shot a man in Yreka. Lara eventually dropped his three California victims on the side of the road, again threatened to kill them and continued driving southbound with his Oregon victim. Soon after, California law enforcement caught up with Lara and arrested him.
On November 16, 2016, a federal grand jury in Eugene returned a four-count indictment charging Lara with one count each of kidnapping and carjacking, and two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Prior to sentencing, Lara pleaded guilty to the kidnapping and carjacking charges before U.S. District Court Judge Michael J. McShane.
This case was investigated by the Redmond Police Department, Bend Police Department, Deschutes County Sheriff’s Office, Oregon State Police and other local law enforcement agencies in California with the assistance of the FBI. It was prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Florida Residents Charged with Armed Robbery of Wethersfield BankRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Wethersfield Police Chief James Cetran today announced that a federal grand jury in Hartford returned an indictment yesterday charging SAMUEL NEATHERY, 29, and DAISY FELIBERTY, 35, both of Florida, with robbing a Wethersfield bank at gunpoint in December 2018.
The indictment alleges that, on December 27, 2018, Neathery and Feliberty entered the People’s United Bank located at 436 Silas Deane Highway in Wethersfield, brandished firearms and, by force, violence and intimidation, took approximately $83,000 from the bank.
The indictment charges Neathery and Feliberty with one count of armed bank robbery, an offense that carries a maximum term of imprisonment of 25 years, and one count of brandishing a firearm during a crime of violence, an offense that carries a mandatory consecutive term of imprisonment of at least seven years.
Neathery and Feliberty are currently detained in South Carolina for alleged offenses stemming from a credit union robbery in Forest Acres, South Carolina, on February 5, 2019.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Wethersfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Felon who was Convicted of Threatening U.S. Postal Service Letter Carrier and Firearm Possession Sentenced to 36 Months in PrisonRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that on April 18, 2019, David E. Polnitz, Jr., was sentenced in federal court to 36 months in prison for illegally possessing a firearm and forcibly assaulting, impeding, intimidating or interfering with a United States Postal Service (“USPS”) Letter Carrier. A jury had previously found Polnitz guilty of these charges.
The facts at trial showed that on June 27, 2017, a USPS Letter Carrier was attempting to deliver mail when Polnitz’s unrestrained pit bull charged the Letter Carrier. Fearing for his safety, the Letter Carrier followed procedure and sprayed the pit bull with USPS-issued dog spray. Polnitz, 39, upon being notified by his spouse of the incident, ultimately pointed a Taurus, model PT738, semi-automatic .380 pistol at the Letter Carrier. The Letter Carrier identified Polnitz, among other ways, by his distinctive “Pepsi blue” contact lenses.
While sentencing Polnitz, United States District Court Judge Pamela Pepper emphasized that this was one of the more serious cases of its kind that she had seen. She also stressed that the victim in this case was merely doing his job as a letter carrier and should never have been threatened with a gun.
“This sentence sends the message that federal prison awaits anyone who threatens a federal employee,” said United States Attorney Krueger. “We commend the law enforcement agencies for their excellent work in bringing justice to this matter.”
“The sentencing in this case should send a strong message that Postal Service employees should not be threatened or intimidated while performing their official duties, and should be off limits to acts of violence,” said Inspector in Charge Craig Goldberg, of the Chicago Division of the U.S. Postal Inspection. “The safety of Postal Service employees is our top priority and violence against our employees will never be tolerated.”
The case was investigated by the Milwaukee Police Department and the U.S. Postal Inspection Service, and prosecuted by Assistant United States Attorneys Zachary Corey and Benjamin Taibleson.
# # # #
Felon Sentenced for Possessing FirearmsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael A. Raskie, 36, Chippewa Falls, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to three years in federal prison for possessing firearms as a convicted felon. Raskie pleaded guilty to this charge on January 14, 2019. His prison term will be followed by a three-year period of supervised release.
On September 22, 2018, Raskie was observed shoplifting at a Menards store in Eau Claire. He gave the loss prevention officer permission to retrieve the stolen items from his truck. Prior to doing so, the Eau Claire police were called. They knew Raskie is a felon, who was on probation. While he was retrieving the stolen items, the loss prevention officer saw a rifle case in Raskie's truck. The loss prevention officer told Eau Claire police that there appeared to be a rifle in the case. The officers searched the truck and located methamphetamine, numerous rounds of ammunition, a homemade suppressor, a bump stock, a .45 caliber handgun, and an AR-15 rifle.
Judge Conley rejected Raskie’s request for an 18-month sentence because the firearms and ammunition were “high powered” and because Raskie accessorized them with the suppressor and bump stock.
This case was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charge against Raskie was the result of an investigation conducted by the Eau Claire Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Federal Jury Convicts Memphis Man for Robbing Multiple Businesses; Accomplice pleads GuiltyRead the Press Release
Memphis, TN – After a week-long jury trial, a Memphis man was found guilty of robbing two businesses and using, carrying, and brandishing a firearm during those robberies. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the verdict today.
According to information presented in court, on Monday, June 11, 2018, at approximately 8:30 a.m., Kewan Callicutt, 34, and his girlfriend Nitika Wilkerson, 35, entered the Family Dollar Store located at 4330 Winchester Road and robbed the business at gunpoint. They took $738.74 from the registers and safe and fled the scene on foot. Callicutt had been wearing a fake beard, Army hat, blue FedEx hoodie, white sunglasses, blue pants, and was armed with a silver and black semiautomatic handgun.
At approximately 9:50 p.m. on July 22, 2018, Callicutt entered the Family Dollar Store located at 3255 Hickory Hill Road and robbed that business at gunpoint. He was wearing a fake beard, Army hat, sunglasses, plaid shirt, and was armed with a silver and black semiautomatic handgun. Callicutt was unaware that he took a GPS tracking device when he stole the money from the business. Soon after he left the business, Memphis Police Communications began receiving real-time locations of the tracking device and subsequently traced it to Callicutt’s address at 5391 Newberry Road. Memphis Police Officers responded to that address and observed a black Mazda M26 backed into the driveway with its headlights on. As officers approached the vehicle, Callicutt opened the passenger’s side door and fled the scene on foot, leaving Wilkerson inside the vehicle. Wilkerson was taken into custody. She pleaded guilty to both robberies on February 7, 2019, and is set for sentencing June 19, 2019.
Sentencing for Callicutt is set for July 19, 2019, before United States District Judge Mark Norris, where he faces possible sentences of up to 20 years for each robbery, and a mandatory minimum consecutive sentence of 14 years for brandishing a firearm during each crime of violence.
U.S. Attorney D. Michael Dunavant said, "Robberies of businesses with a firearm are especially dangerous and violent due to the high risk of death and serious bodily injury to innocent victims. Business robberies also have a substantially negative impact on the local economy and commerce, which victimizes the entire community. As demonstrated in this case, we will not tolerate this senseless gun violence and will use all available resources to remove dangerous offenders from our communities for a very long time."
The case was investigated by the FBI Safe Streets Task Force.
Assistant U.S. Attorney Karen Hartridge is prosecuting this case on behalf of the government.
###
Federal Indictments Target San Bernardino Street Gang’s Drug Trafficking Activities, Including Smuggling Drugs into County JailRead the Press Release
RIVERSIDE, California – More than 250 law enforcement personnel this morning arrested 24 members and associates of the Westside Verdugo street gang in San Bernardino who are charged in eight federal indictments, one of which alleges they deliberately got themselves arrested in order to smuggle narcotics and syringes hidden in their body cavities into San Bernardino County jails.
The defendants arrested this morning are among 35 charged in the indictments unsealed today. A total of 10 defendants are already in state custody and are expected to be brought to federal court in the near future.
Three of the indictments returned by a federal grand jury earlier this month name Carlos Antonio Aznaran, 24, of Rialto, as the central figure in separate narcotics-trafficking conspiracies. One of the indictments details how the gang distributed methamphetamine, heroin and marijuana inside San Bernardino County’s jail system from at least July 2017 until April 2019. Another indictment alleges that members and associates of Westside Verdugo – including Aznaran and his wife, Elisa Montes, 28, of Palm Desert – conspired to distribute methamphetamine within the City of San Bernardino. The third narcotics indictment charges Aznaran and others with conspiring to distribute heroin in San Bernardino County, as well as possessing firearms and ammunition in furtherance of their drug crimes. The remaining five indictments charge individual Westside Verdugo gang members or associates with being felons in possession of firearms and ammunition.
One of the indictments alleges that on July 2, 2017, Aznaran and other defendants planned for another gang member – Trevor Harris, a.k.a. “Eminem,” and “Vice,” 28, of San Bernardino – to get himself arrested purposely so he could smuggle narcotics to jailed co-conspirators. One week later, Harris was arrested for tampering with a vehicle and was taken to the Central Detention Center in San Bernardino. A search by law enforcement personnel, who had been monitoring telephone calls at the jail, recovered from Harris’s anal cavity approximately 43.33 grams of methamphetamine, approximately 49.7 grams of heroin, five syringes, and 20 packets of the opioid Suboxone, the indictment states. The narcotics allegedly were separated into multiple packets with monikers written on them to indicate who would receive the drugs.
On September 24, 2017, Ernest Madrid, 48, of San Bernardino, told another person that he was “trying to get busted right now” so he could smuggle narcotics into a custody facility, according to the indictment. Later that day, Madrid was arrested for a probation violation and was taken to the Central Detention Center, where approximately 78.2 grams of methamphetamine, approximately 12.12 grams of heroin, and five syringes – all concealed in his anal cavity – were seized. Authorities also found two telephone numbers, allegedly used by Aznaran, written in marker on Madrid’s legs.
“For more than 50 years, this gang has been responsible for spreading drugs and violence in this community, but today we have taken a major step to combat the group’s influence on the city of San Bernardino,” said United States Attorney Nick Hanna. “While this is not the first time federal authorities have joined with our local counterparts to fight this criminal gang, today’s arrests signal that we will continue to pursue street gangs until families in every Southern California neighborhood can lead safe and peaceful lives.”
“Collaboration with law enforcement at all levels of government is crucial in our continuing efforts to stem the tide of criminal activity by street gangs,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The arrests announced today are the latest example of that partnership and of our commitment to targeting the most violent of these gangs, such as the Westside Verdugo, whose members traffic in drugs and intimidate through violence.”
“Today, our department assigned four tactical teams to apprehend the suspects involved in this case. This is a significant step in interrupting this criminal enterprise so that they can be prosecuted by the U.S. Attorney,” said Undersheriff Shannon Dicus of the San Bernardino County Sheriff’s Department. “On behalf of Sheriff John McMahon, we would like to thank all of our agency partners, especially the men and women who worked on this investigation for their commitment to protecting all of us.”
“This gang is and has been responsible for many crimes on our streets,” said San Bernardino Acting Police Chief Eric McBride. “We appreciate the work and collaborative effort done by our partnering agencies. This investigation has made strides in making our community a safer place.”
In addition to allegations of distribution of methamphetamine, one of the indictments also claims that two of the gang’s associates were found in possession of personal identifying information of dozens of unsuspecting victims, whose identities the defendants used to commit fraud.
In the third conspiracy case, the documents allege that law enforcement not only seized heroin, but also substances containing fentanyl, as well as loaded firearms stored with the narcotics.
The charge of conspiracy to distribute controlled substances carries a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 10 years in federal prison.
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.
This investigation was led by the Federal Bureau of Investigation, the San Bernardino County Sheriff’s Department, and the San Bernardino Police Department.
The Fontana Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; IRS Criminal Investigation; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the San Bernardino County Probation and Parole Departments provided substantial assistance.
This matter is being prosecuted by Assistant United States Attorneys Justin R. Rhoades and Scott M. Lara of the Violent and Organized Crime Section.
Federal Grand Jury Indicts Fifteen in Heroin and Fentanyl Distribution ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On April 9, 2019, a federal grand jury in Greeneville returned a three-count indictment against the following individuals for their roles in the distribution of heroin and fentanyl:
- Deandre Roy Haliburton, 31, of Detroit, Michigan
- Deshawn Dwayne Thomas, 25, of Detroit, Michigan
- Daryl Alvito Reese, 27, of Detroit, Michigan
- Delmeko Desean Vaughn, 24, of Detroit, Michigan
- Deandre Eric Williams, 24, of Detroit, Michigan
- Joshua Gould, 35, of Warren, Michigan
- Leon Walton II, 33, of Detroit, Michigan
- Nidia Marie Santiago, 25, of Detroit, Michigan
- Shakeela Myon Bradley, 29, of Detroit, Michigan
- Lovey Shresse Ingram, 31, of Detroit, Michigan
- Lareitha Lucretia Haliburton, 25, of Detroit, Michigan
- Ann Margaret Isabell, 25, of Detroit, Michigan
- Ashley Nicole Johnson, 26, of Port Huron, Michigan
- Tamar Victor Frost, 24, of Detroit, Michigan
The indictment, which was recently unsealed and is on file with the U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute 100 grams or more of heroin and/or 40 grams or more of fentanyl in the Eastern District of Tennessee and elsewhere. Gould, Walton, and Bradley are also charged with money laundering. Thomas is charged with the distribution of fentanyl that resulted in the overdose death of a victim.
Trial is currently set for June 11, 2019, in U.S. District Court in Knoxville, before the Honorable Thomas A. Varlan, U.S. District Judge.
If convicted of the heroin and fentanyl distribution conspiracy charge, each faces a minimum mandatory term of at least five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5,000,000.
If convicted of the distribution of fentanyl resulting in the death of a victim charge, Thomas faces a mandatory minimum sentence of 20 years in prison, with a possible sentence of up to life, at least four years of supervised release, and a fine of up to $8,000,000.
The ongoing investigation leading to the indictment was the product of a partnership between the Tennessee Bureau of Investigation, Fourth Judicial District Drug Task Force, Jefferson County Sheriff’s Department, Fifth Judicial District Drug Task Force, Blount County Sheriff’s Department, Maryville Police Department, Alcoa Police Department, Sevier County Street Crimes, Sevierville Police Department, Sevier County Sheriff’s Department, Knox County Sheriff’s Department, Knoxville Police Department, Ninth Judicial District Drug Task Force, Ohio State Highway Patrol, Wood County, Ohio, Prosecutor’s Office, FBI, ATF, IRS-Criminal Investigation, and DEA. Assistant U.S. Attorney Kevin Quencer will represent the United States in court proceedings.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
###
Federal Grand Jury Indicts Eleven in Heroin and Fentanyl Distribution ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On April 2, 2019, a federal grand jury in Knoxville returned a single count indictment against the following individuals for their roles in the distribution of heroin and fentanyl in the Eastern District of Tennessee and elsewhere:
- Darrle Wade Harris, 54, of Knoxville, Tennessee
- Cordarryl Wade Harris, 27, of Knoxville, Tennessee
- Ronald Anthony Thompson, 29, of Detroit, Michigan
- DeAirrus Jamar Taylor, 28, of Plymouth, Michigan
- Deshawn Lee Greene, 24, of Detroit, Michigan
- Jamal Mylen McDonald, 22, of Detroit, Michigan
- Raynell Eugene McDonald, 49, of Detroit, Michigan
- Raphiel Antwon Thompson, 28, of Detroit, Michigan
- Robert Lee-Rogener McDonald, 28, of Romulus, Michigan
- Keith Madison, 53, of Detroit, Michigan
- Sherard Ramon Taylor, 32, of Detroit, Michigan
The indictment, which was recently unsealed and is on file with U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute 100 grams or more of heroin and/or 40 grams or more of fentanyl in the Eastern District of Tennessee and elsewhere.
Trial is currently set for June 18, 2019, before the Honorable Thomas A. Varlan, U.S. District Judge.
If convicted of the heroin and fentanyl distribution conspiracy charge, each faces a minimum mandatory term of at least five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5,000,000.
The ongoing investigation leading to the indictment was the product of a partnership between the Tennessee Bureau of Investigation, Fourth Judicial District Drug Task Force, Jefferson County Sheriff’s Department, Fifth Judicial District Drug Task Force, Blount County Sheriff’s Department, Maryville Police Department, Alcoa Police Department, Sevier County Street Crimes, Sevierville Police Department, Sevier County Sheriff’s Department, Knox County Sheriff’s Department, Knoxville Police Department, Ninth Judicial District Drug Task Force, Ohio State Highway Patrol, Wood County, Ohio, Prosecutor’s Office, FBI, ATF, IRS-Criminal Investigation, and DEA. Assistant U.S. Attorney Kevin Quencer will represent the United States in court proceedings.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
###
Federal Grand Jury Indicts Chicago Man for Allegedly Committing Murder to Maintain and Increase Position in Violent Street GangRead the Press Release
CHICAGO — A Chicago man sought to maintain and increase his position in a violent street gang when he fatally shot a man outside a South Side gas station last fall, according to a federal indictment unsealed today.
DERRICK SWANSON, 22, of Chicago, is charged with committing murder in aid of racketeering, and illegally possessing a handgun. He was arrested this morning. Arraignment in U.S. District in Chicago has not yet been scheduled.
The indictment accuses Swanson of murdering Anthony Carter on Oct. 2, 2018, for the purpose of maintaining and increasing Swanson’s position in the Evans Mob street gang. Carter, 27, was fatally shot outside a gas station in the 800 block of East 79th Street in Chicago’s Grand Crossing neighborhood.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Eddie Johnson, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Vikas Didwania, Rajnath Laud, and Albert Berry III.
The indictment alleges that the Evans Mob, also known as “GuttaGang” and “HitzSquad,” is a criminal organization whose members and associates engaged in narcotics trafficking and committed acts of violence, including murder, attempted murder and assault, to acquire and preserve the gang’s territory on the South Side of Chicago. Members of the Evans Mob publicly claimed responsibility for their acts of violence, taunted rival gang members, and took steps to prevent law enforcement’s detection of criminal activities, according to the indictment.
The indictment also renews a charge that was initially filed in November against another suspected Evans Mob member, PIERRE ROBINSON, 26, of Chicago. Robinson is accused of murdering Glenn Houston on Dec. 23, 2014, for the purpose of maintaining and increasing Robinson’s position in the gang. Houston, 23, was fatally shot inside a store about four blocks west of where Carter was killed.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Murder in aid of racketeering is punishable by a mandatory sentence of life in prison, and the death penalty is also possible. The illegal gun possession charge is punishable by up to ten years in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Court Shuts Down Florida Tax Return PreparersRead the Press Release
The United States District Court for the Southern District of Florida entered a permanent injunction against Guary Louima, Guy Telfort, and Tax Houses and Accounting Services Inc., barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department announced today.
The court also ordered that Louima, Telfort and the business disgorge $150,000, representing the ill-gotten gains they received for the preparation of tax returns. The defendants agreed to entry of the injunction and disgorgement judgment against them.
In its complaint the government alleged that Louima and Telfort own and operate Tax Houses and Accounting Services Inc. in Lauderdale Lakes, Florida. The government alleged that the defendants prepared tax returns making false or fraudulent claims for the Earned Income Tax Credit by claiming bogus business losses for non-existent businesses, misrepresenting the filing status of their customers, and inflating the number of dependents claimed on their return. Defendants also allegedly prepared returns that improperly lowered their customers’ reported taxable income by falsely claiming deductions for the personal use of their vehicles.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fairview Park man indicted for assaulting federal officers and illegally having a firearm after he allegedly had a firearm and struck task force officers who were trying to arrest himRead the Press Release
A Fairview Park man was charged with assaulting federal officers and illegally having a firearm after he allegedly had a firearm and struck task force officers who were trying to arrest him.
Kevin W. Walker, 33, on March 6 struck two police officers working with the U.S. Marshals as part of the Northern Ohio Violent Fugitive Task Force with his vehicle, according to the indictment.
Walker also possessed a Taurus 9 mm firearm and ammunition on March 6. Walker was prohibited from having the firearm and ammunition because of previous convictions for domestic violence, aggravated assault, and other crimes, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique
to this case, including the defendant’s prior criminal 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 U.S. Marshal Service, the Cleveland Division of Police, the Cuyahoga County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Scott Zarzycki and Danielle Angeli.
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.
Fairbanks Man Indicted on Federal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Christopher Thomas Howard, a/k/a “Indy,” 33, of Fairbanks, has been federally indicted with three counts of distribution of methamphetamine. Howard was arrested on April 5, 2019, based on a criminal complaint.
According to the criminal complaint, on Jan. 3, 2019, Howard allegedly negotiated to sell two ounces of methamphetamine, agreeing to meet at Club Manchu in Fairbanks for the exchange. During the exchange, Howard got into another vehicle and handed over two plastic baggies of methamphetamine. Howard allegedly told the buyer that he had four ounces of methamphetamine left, that he had sold two pounds over the last couple of days, and that he should be getting more soon. The subsequent investigation revealed that the two plastic baggies Howard distributed contained 55.2 grams of pure d-Methamphetamine Hydrochloride. At Howard’s preliminary hearing on Friday, April 19, 2019, U.S. Magistrate Judge Scott A. Oravec found sufficient probable cause to continue detaining Howard to answer to the charges as stated in the criminal complaint.
The indictment charges Howard with distributing methamphetamine on two additional occasions, on Nov. 15, 2018, and again on Dec. 6, 2018.
If convicted, Howard faces a statutory minimum of 10 years and a maximum of life in prison for the most serious charges alleged in the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Drug Enforcement Administration (DEA) and the Statewide Drug Enforcement Unit (SDEU), which is comprised of officers from the Alaska State Troopers (AST), the Fairbanks Police Department (FPD), and the North Pole Police Department, conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
The charges in the indictment and criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Albuquerque Man on Methamphetamine and Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a guilty verdict against Yusef Casanova 46, of Albuquerque, on methamphetamine trafficking and firearms charges today after a four-day trial before Senior U.S. District Judge James A. Parker. The verdict was announced by First Assistant U.S. Attorney Fred J. Federici, Special Agent in Charge Monique Y. Villegas of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Special Agent in Charge Kyle Williamson of the DEA’s El Paso Division.
Casanova was charged with violating the federal narcotics and firearms laws in an indictment originally filed in June 2016, and later superseded in March 2017. The superseding indictment charged Casanova with distributing methamphetamine on June 7, 2016, in Bernalillo County, N.M. It also charged Casanova with being a felon in possession of a firearm and ammunition, and with unlawfully possessing an unregistered firearm. According to the superseding indictment, in June 2016, Casanova was prohibited from possessing firearms or ammunition because he previously had been convicted of distributing controlled substances, escape from jail, tampering with evidence, robbery, and receiving or transferring a stolen vehicle.
Trial on the three-count superseding indictment began on April 22, 2019, and concluded this afternoon, when the jury returned a verdict of guilty on each of the three counts.
The evidence at trial established that in early June 2016, an ATF Special Agent was supervising an informant on an undercover operation in southeast Albuquerque that targeted narcotics and firearms crimes. On June 6, 2016, the informant obtained a telephone number for Casanova, with the understanding that Casanova would sell him methamphetamine. That day, the informant had four recorded telephone calls with Casanova, during which Casanova negotiated the sale of two ounces of methamphetamine and a firearm, a sawed-off rifle, to the informant.
On June 7, 2016, the informant had another recorded telephone call with Casanova during which they negotiated the price for the methamphetamine and the firearm – a $1250 for the drugs and $100 for the gun – and agreed to meet later that day to complete the deal. When Casanova failed to show up at the agreed upon location, another meeting was arranged. At the new location, the parking lot of an Albuquerque-area fast food restaurant, federal agents video-recorded Casanova as he met with an unidentified man before meeting with the informant to complete the drug and gun deal.
The jury heard the testimony of the ATF Special Agent who supervised the informant, the DEA Special Agents who arranged for the methamphetamine to be tested at the DEA lab, and the ATF Special Agent who confirmed that the gun traveled in interstate commerce and was shorter than permitted by law. The jury also heard the telephone recordings between Casanova and the informant, saw the videotape of the meeting during which Casanova sold the methamphetamine and gun to the informant, and saw the gun and ammunition that Casanova sold to the informant.
The jury deliberated less than two hours before returning the guilty verdict.
Casanova was remanded into the custody of the U.S. Marshals Service after the jury rendered its verdict and will remain detained until his sentencing hearing, which has not been scheduled. At sentencing, Casanova faces a statutory mandatory minimum of ten years and a maximum of life imprisonment.
This case was investigated by the ATF and DEA offices in Albuquerque. Assistant U.S. Attorneys Samuel A. Hurtado and Mark C. Pfizenmayer are prosecuting the case.
El Paso Man Sentenced to 30 Years in Federal Prison for Production of Child PornographyRead the Press Release
In El Paso, 33-year-old Nickolias Sauceda was sentenced to 30 years in federal prison for producing child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Jack P. Staton, El Paso.
Yesterday afternoon, U.S. District Judge Kathleen Cardone sentenced Sauceda to the prison term followed by a lifetime of supervised release.
On May 5, 2018, HSI agents executed a search warrant at Saucedo’s residence and seized several home computers, related media and cell phones. A subsequent forensics examination of the seized materials revealed the presence of hundreds of videos and images depicting minors engaged in sexually explicit activity. Three of the videos discovered were produced by the defendant while he was having sexual intercourse with a 15-year-old female. On February 6, 2019, Sauceda pleaded guilty to the child pornography production charge.
“This case is another nightmarish example of a person recording his sexual brutalization of a child. I am proud that our office continues to fight this wave of child abuse,” stated U.S. Attorney Bash.
“This sentence–essentially a life sentence–exemplifies the type of heinous crimes committed against the most vulnerable among us,” said Jack P. Staton, special agent in charge of HSI El Paso. “Taking child predators off the streets is part of HSI’s mission, and we will continue to target them and use our authority and technical expertise to keep them from victimizing children.”
HSI agents in El Paso conducted this investigation. Assistant U.S. Attorney Mallory Rasmussen prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Dunbar Man Pleads Guilty to Gun ChargeRead the Press Release
CHARLESTON, W.Va. – A Dunbar man pled guilty to being a felon in possession of firearms, announced United States Attorney Mike Stuart. Kenneth Stover, 43, entered his guilty plea before United States District Judge Joseph R. Goodwin. Stuart commended the investigative efforts of the Metropolitan Drug Enforcement Network Team (MDENT) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On August 31, 2017 detectives from MDENT searched Stover’s 18th Street residence in Dunbar as a result of citizen complaints of drug activity where they recovered two firearms from Stover’s bedroom. Stover was prohibited from possessing the firearms as a result of having been convicted of conspiracy to operate a clandestine drug laboratory in Putnam County in 2004.
Stover faces up to 10 years in federal prison when he is sentenced on July 24, 2019. Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
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.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
District Man Sentenced to 50 Months in Prison for Illegally Trafficking 31 Firearms from Virginia into the District of Columbia for ResaleRead the Press Release
WASHINGTON – Isaiah Green, 28, of Washington D.C., has been sentenced to a 50-month prison term for his role in a gun trafficking scheme in the District of Columbia, announced U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Green pled guilty in November 2018, in the U.S. District Court for the District of Columbia to a charge of interstate travel in connection with engaging in the business of illegally dealing in firearms. He was sentenced on April 24, 2019, by the Honorable Amit P. Mehta. Following his prison term, he will be placed on three years of supervised release.
The guilty plea followed an investigation by ATF, MPD, and the Virginia State Police into Green’s role in the purchase of significant quantities of firearms during the summer of 2018. Green and another individual were arrested on July 27, 2018, in the District of Columbia after allegedly purchasing four firearms at the Dulles Gun Show in Chantilly, Virginia. An additional five firearms, all with obliterated serial numbers, were recovered by law enforcement from an apartment in the District of Columbia where Green was living at the time.
According to the government’s evidence, beginning in or around June 27, 2018, Green and the other individual began accepting orders for firearms purchases from people residing within the District of Columbia. To fulfill the orders, the two traveled to various gun stores and pawn shops throughout Virginia. The other individual would fill out ATF forms and falsely assert that she was the intended owner of the firearm. Green could not purchase the firearms himself because he is prohibited under federal law from possessing firearms due to a prior domestic violence conviction.
After purchasing the firearms, the two traveled back to an apartment in Southeast Washington, where Green used a sanding tool to remove the serial numbers from the firearms so that the firearms could not be traced back to them after they were sold. The two would then illegally sell the firearms for a profit within the District of Columbia.
As part of the plea agreement, Green admitted that he and his co-defendant purchased 31 firearms for illegal resale in a one-month time period in 2018.
In a related development, a third person pled guilty on April 24, 2019, for purchasing firearms from Green and his co-defendant. Juan Jones, 41, of District Heights, Md., pled guilty to conspiring to violate federal laws connected to his involvement in requesting straw purchased firearms with obliterated serial numbers. Jones is prohibited from possessing firearms due to a prior felony conviction for a gun crime and he is currently on parole for this offense. Jones is scheduled to be sentenced before Judge Mehta on July 24, 2019. His plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of three years in prison.
This case is being investigated by the ATF and MPD with the assistance of the Virginia State Police. It is being prosecuted by Assistant U.S. Attorneys Kevin L. Rosenberg of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Delray Beach Resident Sentenced to Prison for Being a Felon in Possession of AmmunitionRead the Press Release
A Delray Beach resident was sentenced today to a total of nine years in prison for being a felon in possession of ammunition.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Gadyaces S. Serralta, U.S. Marshal, Southern District of Florida, and Gregory Tony, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
Pender Senatus, 38, of Delray Beach, was convicted by a trial jury on January 25, 2019, of being a felon in possession of ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) (Case No. 18-80029-Cr-Marra). The trial jury acquitted Senatus of assaulting three federal officers with a firearm, in violation of Title 18, United States Code, Section 111(a)(1) and (b), and using, carrying and brandishing a firearm during and in relation to the assaults, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i) and (ii). Senatus was sentenced today by U.S. District Judge Kenneth A. Marra to 108 months in prison, to be followed by 3 years of supervised release for being a felon in possession of ammunition.
According to the court record, including facts contained in the indictment, filings in the case, and evidence presented at trial, on July 25, 2017, Senatus was arrested outside his Delray Beach residence on an arrest warrant for second degree murder in a Broward County case. The arrest was made by BSO detectives assigned to the SWAT/Fugitive Unit, each of whom had been sworn in as a Special Deputy U.S. Marshal, and was working as a Task Force Officer with the Florida/Caribbean Regional Fugitive Task Force of the U.S. Marshals Service. When advised he was under arrest and ordered to get on the ground, Senatus said, “Hell no,” and fled toward the front door of his residence. The detectives tackled Senatus, who then pulled out a loaded handgun from a holster inside his waistband. The handgun fell from his hand as Senatus was wrestled to the ground.
Senatus could not be charged with the federal offense of being a felon in possession of a firearm because the handgun had been manufactured in Florida and had not traveled in interstate or foreign commerce. The ammunition inside the handgun, however, had been manufactured outside the state of Florida, so Senatus was charged with being a felon in possession of ammunition.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’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.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ATF, U.S. Marshals Service, and BSO in this matter. This case was prosecuted by Assistant U.S. Attorney William T. Shockley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Defendant Apprehended with Firearms, Live Rounds of Ammunition, and Loaded Magazines Pleads Guilty to Possession of a Firearm While Under IndictmentRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Amead Williams, 24, pleaded guilty on April 25, 2019 in federal court to possession of a firearm while under indictment.
According to court documents, on September 11, 2018, Virgin Islands police and other law enforcement officers executed a search warrant at a residence in Frederiksted. During the search, police uncovered a .223 Kel Tec pistol with two attached loaded magazines, each containing 30 live rounds, and a 9mm firearm loaded with 13 rounds. A firearm forensic analysis revealed that both firearms were operable. Amead Williams admitted to law enforcement officers that the firearms belonged to him. At the time of the search, Williams was subject to criminal charges pending in the Superior Court of the Virgin Islands,
Williams faces up to five years of incarceration for the offense and a fine of up to $250,000.00. A sentencing date has been scheduled for August 28, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Virgin Islands Police Department. It is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
DEA and Partners hold National Prescription Drug Take Back Day on April 27Read the Press Release
Memphis, TN – U.S. Attorney D. Michael Dunavant joins the Drug Enforcement Administration in announcing that on April 27th, DEA will hold 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 here at Kroger, 7615 Highway 70 Bartlett, Tennessee. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs. The service is free and anonymous.
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 or abuse by family members and visitors, including children and teens.
Now in its seventeenth 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 law enforcement partner agencies. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. (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 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."
U.S. Attorney D. Michael Dunavant said: "Addressing the opioid crisis in our communities requires a comprehensive approach which includes prevention, education, treatment, and enforcement. The DEA National Prescription Drug Take Back event allows everyone to participate in prevention and education that promotes public safety, and I encourage all West Tennesseans to turn in your unused, unwanted, and expired medications. Together, we can prevent addiction, injury and death, and educate the public about the dangers of prescription drug abuse."
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.
###
DEA and Partners Hold National Prescription Drug Take Back Day Saturday, April 27, 2019Read the Press Release
DES MOINES, Iowa – On Saturday, April 27, 2019, from 10 a.m. to 2 p.m., the Des Moines Resident Office of the Drug Enforcement Administration (DEA) and other participating law enforcement agencies will give the public its 17th opportunity in nine years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. The DEA cannot accept liquids, needles or sharps – only pills or patches. The service is free and anonymous with no questions asked.
This Saturday, approximately 6,000 collection sites manned by nearly 5,000 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539.
Last October Americans turned in 457 tons (914,236 pounds) of prescription drugs at almost 5,800 sites operated by the DEA and more than 4,800 of its state, local, and tribal law enforcement partners. Overall, in previous Take Back Day events, DEA has collected a total of nearly 11 million pounds of expired, unused and unwanted prescription medications.
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. The majority of prescription drug abusers say they get their abused prescription drugs free from family and friends, including from the home medicine cabinet.
DEA and Partners Hold 17th National Prescription Drug Take Back DayRead the Press Release
Anchorage, Alaska – This Saturday, April 27, from 10 a.m. to 2 p.m. the federal Drug Enforcement Administration (DEA) and its local law enforcement and community partners will collect expired, unused, and unwanted prescription medications at 19 collection sites throughout Alaska. The service is free of charge, no questions asked. Last October, residents of Alaska turned in 3,977 pounds (2 tons) of prescription medications.
“Take Back Day is a unique opportunity for Alaskans to protect their homes and medicine cabinets from theft and abuse,” said U.S. Attorney Schroder. “Our country is in the midst of an opioid crisis, and all too often the abuse begins with prescription drugs. Getting old and unneeded prescriptions out of the home can help prevent addictions from starting.”
“Prescription drug abuse is an epidemic that is plaguing the nation,” said DEA Assistant Special Agent in Charge Michael Root. “Alaskans can help us combat this serious public health issue by disposing of unwanted medications at one of the take back sites in the area. Everyone who participates in this free and anonymous service is making a difference in their community.”
The National Prescription Drug Take Back Day Initiative addresses a critical public safety and public health issue. 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. Because the Environmental Protection Agency and the Food and Drug Administration have advised the public that flushing their prescription drugs down the toilet or throwing them in the trash pose potential safety and health hazards, DEA launched its prescription drug take back program to encourage the safe disposal of medications.
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 manned by nearly 5,000 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. (DEA cannot accept liquids, needles or sharps.)
For more information or to locate a collection site near you, go to www.DEATakeBack.com where you can search by zip code, city, or state.
Convicted Felon Sentenced to 42 Months in Prison for Illegal Gun PossessionRead the Press Release
DAYTON – Christopher Watson, 29, of Dayton, was sentenced in U.S. District Court to 42 months in prison followed by three years of court supervision for illegally possessing a firearm.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Montgomery County Sheriff Rob Streck and agencies participating in the FBI Safe Streets Task Force announced the sentence handed down Wednesday, April 24 by U.S. District Judge Thomas M. Rose.
According to the Statement of Facts in this case, task force officers searched a house in west Dayton in March 2018 and found a loaded 9mm handgun holding 16 rounds of ammunition in a bedroom. Investigators determined that the gun belonged to Watson. Because Watson had been convicted of felony drug possession in Montgomery County Common Pleas Court in May 2011, he was prohibited from having a firearm or ammunition. Watson pleaded guilty in January 2019 to illegal possession of a firearm by a convicted felon.
U.S. Attorney Glassman commended the cooperative investigation by the Safe Streets Task Force, as well as Assistant United States Attorney Andrew Hunt, who represented the United States in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Justice Department 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.
###
Connecticut Man Pleads Guilty to Bank Fraud, Social Security Number Fraud, and Aggravated Identity TheftRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Mark Pignatello, 54, of Kent, Connecticut, pled guilty yesterday in U.S. District Court to bank fraud, social security number fraud, and aggravated identity theft.
According to court records, from October 22 through 24, 2018, Pignatello traveled across Maine and New Hampshire visiting branches of People’s United Bank at which he passed or attempted to pass counterfeit checks made out to others. He used the social security numbers and other personal information of these individuals to impersonate them and used counterfeit driver’s licenses bearing his image but their personal information. He was apprehended by the Newport police outside of the Newport, Maine branch of People’s United Bank, where his activity had been identified as fraudulent.
Pignatello faces up to 30 years imprisonment and a fine of up to $1,000,000 on the bank fraud charge, up to five years in prison and a fine of up to $250,000 on the social security number fraud charge, and a mandatory minimum sentence of two years in prison on the aggravated identity theft charge, as well as up to five years of supervised release. He 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. Secret Service and the Maine State Police.
Columbus Man Pleads Guilty to Armed Bank Robbery in WhitehallRead the Press Release
COLUMBUS, Ohio – Robert K. Mason, 42, of Columbus, pleaded guilty today in U.S. District Court to robbing a bank in Whitehall, pistol-whipping two of the bank’s employees while demanding money, and conspiring with his girlfriend to hide the gun he used in the robbery.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Columbus Division of Police Acting Chief Tom Quinlan, and Whitehall Police Chief Mike Crispen announced the plea entered today before Chief U.S. District Judge Edmund A. Sargus, Jr.
Mason pleaded guilty to one count of bank robbery, punishable by up to 25 years in prison. He also pleaded guilty to one count of using a firearm during a crime of violence, which carries a minimum punishment of seven years and up to life in prison, and one count of conspiracy to tamper with evidence, which is punishable by up to 20 years in prison.
In a statement of facts in the plea agreement, Mason admitted that he robbed the Huntington Bank at 4550 East Broad Street on September 26, 2018. Mason walked in the bank, lifted his shirt to show that he had a gun, pulled the handgun and ordered customers to the floor. Mason vaulted the counter and demanded money from the tellers, hitting two of them with the gun when he became frustrated at the speed of the employees.
Mason ran out the front door and escaped in a car driven by his girlfriend, Bretta L. Nallen. Whitehall police arrested Mason on October 31. While he was in custody, he called Nallen and told her to get rid of the gun. Nallen is facing charges of being an accessory to the crime and evidence tampering.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement and assistant U.S. attorneys David DeVillers and Courter Shimeall, who are representing the United States in this case.
# # #
Columbia Man Sentenced to 4 Years in Federal Prison for Theft of FirearmsRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Jonathan Donnell Thompson, a/k/a “Joe-Nae,” a/k/a “Jonathan Joe Nate Thompson,” age 37, of Columbia, South Carolina, was sentenced to 4 years in federal prison after pleading guilty to conspiracy to steal firearms from a federal firearms licensee.
Evidence presented to the court showed on August 5, 2016, Tony’s Guns and Police Supplies, a federal firearms licensee in Sumter, was burglarized and approximately 75 handguns were stolen. The investigation revealed similarities between that burglary and other burglaries of liquor stores in several counties. Law enforcement was able to identify Cedrick K. Reddick, age 26, of Columbia, as one of the suspects after a DNA match linked him to a burglary of one of the liquor stores. Additionally, a search warrant at Reddick’s apartment revealed a 9mm handgun stolen during the burglary of Tony’s Guns and Police Supplies. Both Thompson and his co-defendant Reddick were charged federally with the gun store theft. Of the 75 firearms stolen, only 21 of them have been recovered by law enforcement, some in the hands of felons who are prohibited from possessing firearms and were prosecuted federally.
Thompson has prior state convictions for driving under suspension (two separate counts), forgery less than $5,000, simple possession of marijuana (two separate counts), possession of cocaine (two separate counts), and receiving stolen goods. One week prior to this August 5, 2016 incident, Thompson pleaded guilty in Richland County to malicious injury to real property stemming from a February 2016 attempted burglary at a Columbia liquor store.
United States District Judge J. Michelle Childs sentenced Thompson to 48 months in federal prison, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
Thompson’s co-defendant Reddick was sentenced on April 12, 2019, to a total of 84 months (7 years) in federal prison, to be followed by a 3-year term of court-ordered supervision. That 84-month sentence is comprised of 70 months on the new firearm convictions and a consecutive 14-month revocation of his prior federal supervision.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Sumter County Sheriff’s Office, the Newberry County Sheriff’s Office, the South Carolina State Law Enforcement Division (SLED), the Clinton Police Department, the Fairfield County Sheriff’s Office, the Richland County Sheriff’s Department, and the Lexington County Sheriff’s Department. This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), 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. Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
#####
Charleston Woman Sentenced to Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Theresa Jurae-Lekole Woodson, 31, of Charleston, was sentenced to 24 months in prison for possession with intent to distribute heroin and cocaine. Stuart commended the efforts of the Metropolitan Drug Enforcement Network Team (MDENT).
“Distribution of heroin and cocaine. Selling it for money. Tragic,” said United States Attorney Mike Stuart. “Woodson was peddling multiple illicit drugs in Charleston. As a result of MDENT’s good work, she will now spend some time in federal prison for her criminal activity.”
Woodson pled guilty in December 2018, admitting that she intended to distribute heroin, cocaine, and crack in March 2018. MDENT detectives used an informant to purchase cocaine and heroin from Woodson in late February and early March 2018. On March 12, 2018, MDENT executed a search warrant at her Woodward Drive residence in Charleston where they recovered 17 grams of crack, 27 grams of heroin, and a small amount of cocaine powder along with a firearm.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
Celadon Group, Inc. Enters into Corporate Resolution for Securities Fraud and Agrees to Pay $42.2 Million in RestitutionRead the Press Release
Celadon Group Inc. (Celadon) has agreed to pay total restitution of $42.2 million for filing materially false and misleading statements to investors and falsifying books, records and accounts.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler of the Southern District of Indiana, Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field Office and Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS) made the announcement.
Celadon, a transportation company headquartered in Indianapolis, Indiana, that was listed on the New York Stock Exchange (NYSE), entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Southern District of Indiana charging the company with securities fraud. The case was primarily focused on the fact that Celadon knowingly filed materially false and misleading statements to investors and falsified books, records and accounts with regard to the values of assets involved in four trade transactions that were recorded at inflated values and not fair market value.
“Celadon executives misled the investing public for a simple reason: profit,” said Assistant Attorney General Benczkowski. “Securities fraud harms all investors — from the most sophisticated to those everyday Americans saving for retirement, and the Criminal Division remains committed to investigating and prosecuting these complex crimes.”
“The fabric of American industry is woven together through innovation, work ethic and integrity,” said U.S. Attorney Josh J. Minkler. “The government is charged with ferreting out misdeeds in corporate America, particularly when these violations of public trust result in financial harm to our citizens as is set forth in this matter. I would like to personally thank and recognize the Justice Department’s Fraud Section, SEC, FBI and USPIS partners whose collaborative work unearthed this criminal activity.”
“The message here is clear, those who commit financial fraud will be held accountable. Investors should expect nothing less than complete candor and truth from companies and their executives,” said Special Agent in Charge Grant Mendenhall. “The FBI and our agency partners will continue to identify, investigate and pursue violations such as this.”
“The Postal Inspection Service has been protecting investors and defending the integrity of the marketplace for many years,” said Inspector in Charge Delany DeLeon-Colon. “Anyone who engages in these deceptive securities practices should know they will not go undetected and they will be held accountable.”
According to court documents filed as part of the DPA, Celadon provided trucking and transportation services in the United States, Mexico and Canada. Quality Companies LLC (Quality) was a wholly owned subsidiary of Celadon that leased tractors and trailers to owner-operator truck drivers. Between 2013 and 2016, Quality’s inventory grew rapidly, from approximately 750 tractors and trucks to more than 11,000.
Quality’s financial performance began to struggle in 2016 due in part to a slowdown in the trucking market. In addition, Quality owned a significant number of a truck models with mechanical issues, which many drivers did not want to lease. By 2016, many of Quality’s trucks were idle, unleased and overvalued on Quality’s books by tens of millions of dollars.
Instead of properly reporting Quality’s financial difficulties to investors, members of Celadon’s and Quality’s senior management team, all acting within the scope of their employment, participated in a scheme that resulted in Celadon falsely reporting inflated profits and inflated assets to the investing public through Celadon’s financial statements. Between approximately June 2016 and October 2016, Quality engaged in a series of trades as a means to dispose of its aging and unused trucks. In order to avoid disclosing the losses connected to these trucks, executives executed the trades using invoices purposely inflated well above market value. Celadon ultimately used these invoices and inflated truck values to hide millions of dollars of losses from investors.
In December 2016, after allegations of misconduct had arisen publicly, Celadon’s management approved a memorandum that falsely stated the trucks involved in the above-described transactions were purchased and sold at fair market value, and were accounted for properly on Celadon’s books. Further, beginning in approximately January 2017, Celadon’s independent auditors conducted an investigation into the allegations of misconduct. In response, multiple members of Celadon’s and Quality’s management falsely represented to independent auditors that the transactions were done at fair market value and that they were not trades. Celadon’s auditor ultimately withdrew its audit opinion for certain Celadon financial statements. The resulting disclosure by Celadon of the auditor’s withdrawal caused a significant drop in the price of Celadon’s stock, which resulted in investors losing tens of millions of dollars.
Under the terms of the DPA, Celadon is required to pay full restitution of $42.2 million to shareholder victims directly and proximately harmed as a result of the commission of the offense, which will be paid over a period of years consistent with 18 U.S.C. § 3664(f)(2), (3)(A). Celadon also agreed to implement rigorous internal controls and cooperate fully with the Department’s ongoing investigation, including its investigation of individuals. Under the DPA, prosecution of the company for securities fraud will be deferred for an initial period of approximately five years, subject to approval by the court, to allow Celadon to demonstrate good conduct.
The Department reached this resolution based on a number of factors, including Celadon’s ongoing cooperation with the United States and the company’s extensive efforts at remediation. Among other remedial efforts, the company no longer employs the executives involved in wrongdoing, and the company replaced its executive management team with experienced executives who display a commitment to building an ethical corporate culture. Furthermore, Celadon created the new position of Chief Accounting Officer and hired an experienced Internal Audit staff member reporting directly to the Company’s Internal Audit Manager.
In addition, the United States filed an Information and plea agreement against Danny Williams, the former President of Quality, who was charged with one count of conspiracy to commit securities fraud, to make false statements to a public company’s accountants, and to falsify books, records and accounts of a public company in connection with Celadon’s crimes.
Trial Attorneys Kyle W. Maurer and L. Rush Atkinson of the Criminal Division’s Fraud Section, Deputy Chief Steven D. DeBrota and Assistant U.S. Attorney Nicholas J. Linder of the Southern District of Indiana prosecuted the case with assistance from the FBI’s Indianapolis Field Office and the USPIS.
This investigation is ongoing.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-vns/case/celadon or call (888) 549-3945.
Celadon Group, INC. Enters into Corporate Resolution for Securities Fraud and Agrees to Pay $42.2 Million in RestitutionRead the Press Release
Celadon Group, Inc. (Celadon) has agreed to pay total restitution of $42.2 million for filing materially false and misleading statements to investors and falsifying books, records and accounts.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Josh Minkler of the Southern District of Indiana, Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field Office and Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS) made the announcement.
Celadon, a transportation company headquartered in Indianapolis, Indiana, that was listed on the New York Stock Exchange (NYSE), entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Southern District of Indiana charging the company with securities fraud. The case was primarily focused on the fact that Celadon knowingly filed materially false and misleading statements to investors and falsified books, records and accounts with regard to the values of assets involved in four trade transactions that were recorded at inflated values and not fair market value.
“Celadon executives misled the investing public for a simple reason: profit,” said Assistant Attorney General Benczkowski. “Securities fraud harms all investors — from the most sophisticated to those everyday Americans saving for retirement, and the Criminal Division remains committed to investigating and prosecuting these complex crimes.”
“The fabric of American industry is woven together through innovation, work ethic and integrity,” said U.S. Attorney Josh J. Minkler. “The government is charged with ferreting out misdeeds in corporate America, particularly when these violations of public trust result in financial harm to our citizens as is set forth in this matter. I would like to personally thank and recognize the Justice Department’s Fraud Section, SEC, FBI and USPIS partners whose collaborative work unearthed this criminal activity.”
“The message here is clear, those who commit financial fraud will be held accountable. Investors should expect nothing less than complete candor and truth from companies and their executives,” said Special Agent in Charge Grant Mendenhall. “The FBI and our agency partners will continue to identify, investigate and pursue violations such as this.”
“The Postal Inspection Service has been protecting investors and defending the integrity of the marketplace for many years,” said Inspector in Charge Delany DeLeon-Colon. “Anyone who engages in these deceptive securities practices should know they will not go undetected and they will be held accountable.”
According to court documents filed as part of the DPA, Celadon provided trucking and transportation services in the United States, Mexico and Canada. Quality Companies, LLC (Quality) was a wholly owned subsidiary of Celadon that leased tractors and trailers to owner-operator truck drivers. Between 2013 and 2016, Quality’s inventory grew rapidly, from approximately 750 tractors and trucks to more than 11,000.
Quality’s financial performance began to struggle in 2016 due in part to a slowdown in the trucking market. In addition, Quality owned a significant number of a truck models with mechanical issues, which many drivers did not want to lease. By 2016, many of Quality’s trucks were idle, unleased and overvalued on Quality’s books by tens of millions of dollars.
Instead of properly reporting Quality’s financial difficulties to investors, members of Celadon’s and Quality’s senior management team, all acting within the scope of their employment, participated in a scheme that resulted in Celadon falsely reporting inflated profits and inflated assets to the investing public through Celadon’s financial statements. Between approximately June 2016 and October 2016, Quality engaged in a series of trades as a means to dispose of its aging and unused trucks. In order to avoid disclosing the losses connected to these trucks, executives executed the trades using invoices purposely inflated well above market value. Celadon ultimately used these invoices and inflated truck values to hide millions of dollars of losses from investors.
In December 2016, after allegations of misconduct had arisen publicly, Celadon’s management approved a memorandum that falsely stated the trucks involved in the above-described transactions were purchased and sold at fair market value, and were accounted for properly on Celadon’s books. Further, beginning in approximately January 2017, Celadon’s independent auditors conducted an investigation into the allegations of misconduct. In response, multiple members of Celadon’s and Quality’s management falsely represented to independent auditors that the transactions were done at fair market value and that they were not trades. Celadon’s auditor ultimately withdrew its audit opinion for certain Celadon financial statements. The resulting disclosure by Celadon of the auditor’s withdrawal caused a significant drop in the price of Celadon’s stock, which resulted in investors losing tens of millions of dollars.
Under the terms of the DPA, Celadon is required to pay full restitution of $42.2 million to shareholder victims directly and proximately harmed as a result of the commission of the offense. Celadon also agreed to implement rigorous internal controls and cooperate fully with the Department’s ongoing investigation, including its investigation of individuals. Under the DPA, prosecution of the company for securities fraud will be deferred for an initial period of approximately five years, subject to approval by the court, to allow Celadon to demonstrate good conduct.
The Department reached this resolution based on a number of factors, including Celadon’s ongoing cooperation with the United States and the company’s extensive efforts at remediation. Among other remedial efforts, the company no longer employs the executives involved in wrongdoing, and the company replaced its executive management team with experienced executives who display a commitment to building an ethical corporate culture. Furthermore, Celadon created the new position of Chief Accounting Officer and hired an experienced Internal Audit staff member reporting directly to the Company’s Internal Audit Manager.
In addition, the United States filed an Information and plea agreement against Danny Williams, the former President of Quality, who was charged with one count of conspiracy to commit securities fraud, to make false statements to a public company’s accountants, and to falsify books, records and accounts of a public company in connection with Celadon’s crimes.
Trial Attorneys Kyle W. Maurer and L. Rush Atkinson of the Criminal Division’s Fraud Section, Deputy Chief Steven D. DeBrota and Assistant U.S. Attorney Nicholas J. Linder of the Southern District of Indiana prosecuted the case with assistance from the FBI’s Indianapolis Field Office and the USPIS.
This investigation is ongoing.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-vns/case/celadon or call (888) 549-3945.
###
Camden County, New Jersey, Man, Admits Attempting to Distribute and Attempting to Possess with Intent to Distribute Crystal MethamphetamineRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey man today admitted his role in a scheme to possess and distribute crystal methamphetamine, U.S. Attorney Craig Carpenito announced.
Mauricio Melendrez, 46, of Blackwood, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him one count of attempt to distribute and possess with intent to distribute five grams or more of crystal methamphetamine.
According to documents filed in this case and statements made in court:
In May 2014, Melendrez arranged for the delivery of a package containing approximately two pounds of crystal methamphetamine stuffed inside a 4-slice toaster oven. Before the package could be delivered to its intended address on June 3, 2014, law enforcement seized it. Melendrez later discussed this package of crystal methamphetamine with another individual and stated it had been sent to him by a “cartel,” and that Melendrez still owed the cartel money for the crystal methamphetamine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.
The count to which Melendrez pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a fine of up to $5 million, or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for Aug. 1, 2019.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
California Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on April 24, 2019, Michael Anthony Santistevan, age 31, was sentenced by United States District Court Senior Judge James E. Gritzner for Possession with Intent to Distribute Methamphetamine. Santistevan was sentenced to 235 months in prison, to be followed by a term of supervised release of five years.
On May 21, 2018, Santistevan was stopped by a Pottawattamie County Deputy for speeding on Interstate 80. Santistevan was the sole occupant of the rental vehicle. The car rental company was contacted and the return vehicle was overdue and Santistevan was not the renter nor an authorized driver. The deputy issued Santistevan a traffic citation for speeding and requested permission to search the vehicle. During the search, a certified narcotics canine was utilized for a inspection and the canine alerted and indicated to the odor of narcotics on the rear of the vehicle. Deputies located fifteen pounds of methamphetamine inside a tire in the vehicle.
This matter was investigated by the Pottawattamie County Sheriff’s Department and Council Bluffs Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Buffalo Couple Charged with Selling HeroinRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Orlando Albert-Arroyo 24, and Genesis Tolentino-Cruz, 25, both of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and distribution of, heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Joshua A. Violanti, who is handling the prosecution of the case, stated that according to the complaint, in February 2019, Buffalo Police investigators began investigating the drug trafficking activities of the defendants. The investigation was initiated following a possible drug overdose death.
In the early morning hours of February 27, 2019, first responders from the Buffalo Police Department, Buffalo Fire Department, and AMR Ambulance were dispatched to the scene of a possible drug overdose. Upon arrival, they discovered an unresponsive 24 year old male. Medical personnel attempted resuscitation efforts but the victim was declared deceased. At the scene, investigators recovered four green wax envelopes commonly used to package heroin and a plastic straw with white powder residue.
Subsequent investigation determined that the victim's girlfriend was in contact with a phone number tied to the defendant’s on the day of the victim’s death. In addition, between March 30 and April 11, 2019, AlbertArroyo and Tolentino-Cruz sold suspected heroin to an individual working with investigators on four separate occasions.
A search warrant was executed at the defendants’ residence and two AR style firearms and a quantity of suspected heroin were recovered.
AlbertArroyo and Tolentino-Cruz appeared at a detention hearing before U.S. District Judge Lawrence J. Vilardo and were released on conditions.
The complaint is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.# # # #
Brothers Plead Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DUSTIN DINET, age 32, of New Orleans, and STEVEN DINET, age 44, of Jonesboro, Arkansas, pleaded guilty today before United States District Judge Jane Triche Milazzo to conspiring to distribute and to possess with the intent to distribute 28 grams or more of crack cocaine and 100 grams or more of heroin.
According to paperwork filed with the court, the DINETs, who are brothers, admitted to conspiring together to deal crack cocaine and heroin. The DINETs acknowledged making three sales of an ounce of crack each to an undercover source. They also admitted that approximately ¼ kilogram of heroin and $78,000 discovered during the execution of a search warrant at a residence in Marrero, La. belonged to them. Each of the brothers faces a mandatory minimum sentence of five years in prison up to forty years, at least four years of supervised release following any term of imprisonment, a fine of up to $5 million, and a mandatory special assessment of $100. Sentencing is set before Judge Milazzo on July 25, 2019.
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.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney David Haller is in charge of the prosecution.
* * *
Bookkeeper Pleads Guilty to Embezzling Money from Best Western Oak Mountain Inn; Co-Conspirator Indicted on Related ChargesRead the Press Release
BIRMINGHAM – Earlier this week, a former bookkeeper at a Pelham-area accounting firm pled guilty to charges that she embezzled money from a local hotel, and on Thursday, a grand jury returned an indictment against the bookkeeper’s alleged co-conspirator on related charges, announced U.S. Attorney Jay E. Town and United States Secret Service Special Agent in Charge Michael Williams.
In a one-count information filed in U.S. District Court, the United States Attorney charged DELAINE DAWSON SUMMERVILLE, 50, with wire fraud for her role in an embezzlement scheme targeting one of her accounting firm’s clients, the Best Western Oak Mountain Inn, located in Pelham, Alabama. A plea agreement was also filed. According to the plea agreement, Summerville had been employed as a bookkeeper at Bryan L. Parker, CPA. During 2016 and 2017, the Best Western Oak Mountain Inn was among Parker CPA’s clients. Summerville provided bookkeeping, accounting, and payroll services to the hotel, and in that role she had the ability to create checks drawn on the hotel’s bank account. During the latter half of 2016 and early 2017, Summerville created dozens of checks payable to herself from the hotel’s bank account, which she cashed or deposited. Summerville also created dozens of checks payable to another individual, DANA MISCHELLE BRAXTON. In all, the embezzlement totaled more than $175,000, according to Summerville’s plea agreement.
DANA MISCHELLE BRAXTON, 51, of Leeds, was charged in a six-count indictment filed in U.S. District Court with wire fraud and aggravated identity theft for her role in the embezzlement scheme. According to the indictment, between June 2016 and February 2017, Braxton received checks from Summerville drawn on Best Western Oak Mountain Inn’s bank account. During this time, Braxton either cashed the checks or deposited them into a bank account that she controlled. Braxton was not an employed by Parker CPA or by the Best Western Oak Mountain Inn, and cashed or deposited the checks without knowledge or authorization of either entity.
“This case is about a hard-working hotel owner who had hundreds of thousands of dollars stolen from him by someone he trusted,” Town said. “Our office will continue to work tirelessly to bring the perpetrators of such frauds to justice.”
The maximum penalty for wire fraud is 20 years in prison and a fine of up to $250,000.
The penalty for aggravated identity theft is two years in prison.
The Secret Service investigated the cases, which Assistant U.S. Attorney John B. Ward is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Berkeley County woman admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shannon L. Keiffer, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Keiffer, age 33, pled guilty to one count of “Distribution of Heroin.” Keiffer admitted to selling heroin in July 2018 in Berkeley County.
Keiffer faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the cases on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Benton Man Sentenced to 24 Months’ Imprisonment for Possessing Illegal FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 23, 2019, United States District Court Judge James M. Munley sentenced John Jacob Hasay, age 22, of Benton, Pennsylvania, to 24 months’ imprisonment and a two-year term of supervised release, for the illegal possession of a machinegun.
According to United States Attorney David J. Freed, Hasay came to the attention of federal law enforcement after he posted content in online forums espousing racist and anti-Semitic statements, and threatened to commit a hate crime. Investigators determined that Hasay obtained an auto-sear, which is a device used to convert semi-automatic handguns to fully automatic capabilities, by smuggling it through U.S. Customs from Russia, disguised as a motorcycle part.
During the execution of a search warrant at Hasay’s residence, federal agents recovered several illegal firearms and associated components and ammunition. Those firearms and items were forfeited at Hasay’s sentencing, and included:
- Glock 19 9mm bearing an auto sear;
- CAA Model G3, Micro Roni pistol carbine conversion bearing a scope;
- IWI Model MP Uzi bearing a shortened barrel (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- GSG Model 522 bearing a shortened barrel and a Black and Brown optic (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Charter Arms Model AR-7 Explorer bearing a shortened barrel (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Mossberg Model 500A bearing a shortened barrel;
- I.O. Inc. Sporter bearing a suppressor (a semiautomatic firearm that is capable of accepting a large capacity magazine); and
- Two suppressors.
Hasay has remained in detention since his arrest on August 23, 2018.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
# # #
Attorney's fraud victims to begin receiving share of proceeds after United States wins appealRead the Press Release
STATESBORO, Ga: Multiple victims defrauded by a former attorney will begin receiving a share of restitution now that the U.S. Attorney’s Office has won the case challenging ownership of part of those proceeds.
The 11th U.S. Circuit Court of Appeals affirmed the ruling of the U.S. District Court for the Southern District of Georgia that said funds from an investment settlement should go to restitution in the case against Wilson R. Smith, 67, of Lyons, Ga., rather than to his former wife, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Frances Smith had challenged ownership of $433,096 awarded to her former husband as part of a settlement with BlinkMind, a Texas company in which Wilson Smith had invested while they were married. The District Court ruled, and the 11th Circuit affirmed, that the settlement funds instead should be seized by the United States and applied to the restitution Wilson Smith owed after his sentence for Mail Fraud and Aggravated Identity Theft.
According to court documents, Wilson Smith, a personal-injury attorney, admitted to settling the cases of multiple clients without their knowledge, consent, or approval, then collecting more than $1 million in proceeds for his own benefit while lying to the clients about the status of their cases. Some of those injured clients were forced into poverty in the absence of settlements that they never received, even as Smith and his wife enjoyed a comfortable lifestyle.
After pleading guilty, Smith was sentenced in October 2015 to 96 months in federal prison and ordered to pay $1.285 million in restitution. In January 2018, Frances Smith learned of the pending $433,096 settlement owed to her husband as a BlinkMind investor. A month later she filed for divorce; it was granted in March, and in April, Wilson Smith moved that the court transfer the BlinkMind funds into the divorce settlement even though, until that point, he had paid only $51,370 of the funds he owed in restitution.
The U.S. Attorney’s Office and its Asset Recovery Unit asserted the funds should instead go to satisfy Wilson Smith’s restitution; the courts agreed.
“Wilson Smith’s actions in defrauding his clients represent a particularly egregious example of legal malfeasance,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Being forced to drag out the claim to these funds only made it worse for the victims who were hurt once in a personal injury case, and then victimized again by their dishonest, greedy lawyer. We hope this resolution will give them at least a small measure of redemption.”
The case was investigated by the FBI and the Georgia Bureau of Investigation, and prosecuted for the United States by Xavier Cunningham, Assistant U.S. Attorney for the Southern District of Georgia and Section Chief of the Asset Recovery Unit, and Assistant U.S. Attorney Brad Patrick, with assistance from Litigation Support Specialist Dean Athanasopoulos.
Alien and Citizen of Mexico sentenced to 16 months in Federal Prison for CockfightingRead the Press Release
United States Attorney Joe Kelly announced that Fabian Castro, age 48, a citizen of Mexico, was sentenced on April 24, 2019, to 16 months of imprisonment by Chief United States District Judge John M. Gerrard. In addition to the imprisonment, Castro will be placed on two years of supervised release after he is released from custody. Castro pleaded guilty to one violation of participation in an animal fighting venture.
Evidence at Castro’s change of plea hearing revealed that Castro was in possession of 31 gamecocks at the time that USDA conducted a search of Juan Pablo Sanchez Delgado’s ranch where Castro trained the birds to fight in matches and where others would gamble on the outcome of the fights. Several of the birds had visible injuries and deformities from both their training and from participating in fights. Castro served as the trainer for Juan Pablo Sanchez Delgado’s animal fighting venture.
Juan Pablo Sanchez Delgado is scheduled to be sentenced on July 10 at 10 a.m. before the Honorable John M. Gerrard.
This case was investigated by Lincoln USDA.
14 Gang Members and Associates Charged with Committing Violent Crimes in MassachusettsRead the Press Release
BOSTON – Members and associates of Primeiro Comando da Massachusetts (PCM) were charged today in federal court in Boston in connection with perpetrating violent crimes in Massachusetts, including drug and firearms trafficking, robberies and kidnappings.
“Violent gangs that proliferate violence are a scourge on our communities,” said United States Attorney Andrew E. Lelling. “Over recent months, members and associates of Primeiro Comando da Massachusetts have been committing serious, violent crimes: brazenly robbing community businesses, dealing drugs, trafficking illegal firearms, and even kidnapping a young woman. We will not standby and allow these criminals to disrupt the safety and peace of our communities. Let today’s arrests and charges be a message to gang members and their associates: if you threaten the safety and well-being of Massachusetts residents, we will arrest and prosecute you using all of the federal resources at our disposal.”
“ATF will continue to partner with our federal, state and local law enforcement counterparts to dismantle criminal street gangs to reduce violence committed through their use of firearms,” said Kelly D. Brady, ATF Special Agent in Charge Field of the Boston Field Division. “Furthermore, it demonstrates that law enforcement will not standby and allow these criminal street gangs to get away with such acts, which creates fear for the residents within the community”
“Today’s enforcement action represents the culmination of a long term, multi-agency investigative effort to disrupt and dismantle a violent transnational criminal organization which represents a significant threat to our public safety. Many of the defendants in this case are illegally present in the United States, and violated the rule of law with reckless abandon, conducting acts of violence, while profiting from the sale of narcotics and weapons,” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Boston. “Together with our state, local and federal partners, the special agents of Homeland Security Investigations remain committed to using every tool available to ensure that our communities are safe and that justice is served. The fact of the matter is, the Commonwealth is a safer place with the arrests that were conducted today. We are committed to seeing this investigation through to a successful criminal prosecution.”
The following defendants were charged today.
- Marcio Costa, a/k/a “Marcino” and “Marcinn,” 28, of Malden, is the alleged leader of PCM and was arrested and charged with RICO conspiracy, conspiracy to commit robbery, conspiracy to distribute controlled substances, and engaging in the business of dealing in firearms without a license;
- Joao Pedro Marques Guimares Gama, a/k/a “Bahianinho,” 21, a Brazilian national illegally residing in Malden, was arrested and charged with RICO conspiracy, conspiracy to commit robbery, engaging in the business of dealing in firearms without a license, and being an alien in possession of a firearm;
- Breno Henrique DaSilva, 20, a Brazilian national illegally residing in Somerville, was arrested and charged with RICO conspiracy, conspiracy to commit robbery, and conspiracy to distribute controlled substances;
- Alvaro Dos Santos Melo, 22, a Brazilian national illegally residing in Everett, was arrested and charged with RICO conspiracy, conspiracy to commit robbery, and conspiracy to distribute controlled substances;
- Edson DaSilva, 19, previously resided in Whitman and is currently in state custody on kidnapping and firearms charges, and was federally charged with RICO conspiracy and robbery;
- Igor Costa, 20, previously resided in Framingham and is currently in state custody, and was federally charged with RICO conspiracy and robbery;
- Vinicius Goncalves de Assis, previously resided in Revere and is currently in state custody, and was federally charged with RICO conspiracy;
- Rodrigo Tevares, 19, a Brazilian nation illegally residing in Stoughton, was arrested and charged with being an alien in possession of a firearm and engaging in the business of dealing in firearms without a license;
- Rony DaFreitas, 21, of Lowell, was arrested and charged with engaging in the business of dealing in firearms without a license;
- Elwood Cortes-Navedo, 23, of Lowell, was arrested and charged with engaging in the business of dealing in firearms without a license;
- Fernando DeOliveira, 24, a Brazilian nation illegally residing in Brighton, was arrested and charged with being an alien in possession of a firearm and engaging in the business of dealing in firearms without a license;
- Mouad Nessassi, 21, of Boston, was arrested and charged with engaging in the business of dealing in firearms without a license, distribution of 28 grams or more of cocaine base, and possession of an unregistered firearm;
- Fadwa Chimal, 19, was arrested and charged with engaging in the business of dealing in firearms without a license; and
- Jennifer Romero, 26, of Chelsea, was charged with engaging in the business of dealing in firearms without a license and distribution of 28 grams or more of cocaine base.
According to court documents, in September 2018, federal, state and local law enforcement began investigating members and associates of PCM, a gang with Brazilian origins, which first appeared in Massachusetts approximately two years ago. It is alleged that members and associates of PCM are actively involved in violent crimes including the illegal sale of firearms, drug trafficking, robberies, kidnappings and armed assaults in numerous communities in Massachusetts, including Boston, Malden, Everett, Somerville, Framingham, and Peabody, among others. During the investigation, law enforcement seized 31 firearms, including 27 handguns, two sawed-off shotguns, one shotgun, one rifle and several hundred rounds of ammunition.
The defendants allegedly committed various criminal offenses, some of which they admitted to cooperating witnesses. For example, Gama told cooperating witnesses that PCM not only committed robberies in Massachusetts, but also had targeted and robbed a drug dealer and his family in Connecticut. Gama stated that during the robbery, he held a gun to the head of the dealer’s daughter. In addition, during the investigation, Costa allegedly discussed a planned armed robbery with an undercover federal agent and repeatedly stated that it was likely that the gang members/associates would commit murder as part of the robbery.
Additional robberies alleged by the court documents include: an Oct. 18, 2018, armed robbery of a market in Boston committed by Goncalves; a Dec. 9, 2018, armed robbery of a pizza delivery person in Everett committed by DaSilva; and a Jan. 17, 2019, armed robbery of a gas station in Weymouth committed by Igor Costa. In addition, on Feb. 7, 2019, DaSilva and Henrique were involved in the kidnapping of a young woman who they believed could help them target a rival gang member. DaSilva and Henrique lured the young woman out of a residence in Peabody and eventually took her to a residence in Maynard where she was held at gunpoint and threatened. A cooperating witness alerted law enforcement, who responded to the scene and eventually arrested DaSilva.
On numerous occasions in 2018 and 2019, it is alleged that the defendants illegally sold firearms and drugs to cooperating witnesses.
In addition to the 14 charged criminally, four individuals were arrested administratively by ICE today.
The charge of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. The charge of conspiracy to commit robbery and robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of conspiracy to distribute controlled substances provides for a sentence of no greater than 20 years in prison, at least three years up to life supervised release, and a fine of $1 million. The charge of engaging in the business of dealing in firearms without a license provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of being an alien in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of distribution of 28 grams or more of cocaine base provides for a sentence of at least five and up to 40 years in prison, at least four up to life supervised release, and a fine of $2,000,000. The charge of possession of an unregistered firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $10,000. Defendants illegally present in the U.S. will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, ATF SAC Brady; HSI SAC Fitzhugh; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. The Chelsea, Lowell, Malden, Marlborough, Somerville, and Weymouth Police Departments and the Middlesex Sheriff’s Office provided assistance with the investigation. The case is being prosecuted by Assistant United States Attorneys in Lelling’s Organized Crime and Gang Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wednesday 24 April 2019
Yankton Woman Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Yankton, South Dakota, woman convicted of conspiring to distribute 50 grams or more of methamphetamine was sentenced on April 22, 2019, by U.S. District Judge Karen E. Schreier.
April Villagomez, age 38, was sentenced to 100 months in custody, to be followed by 5 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Villagomez was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on April 4, 2018. She pled guilty on January 31, 2019.
Villagomez had co‑conspirators in Arizona mail her packages of methamphetamine and sold it to drug customers in South Dakota. On March 21, 2018, search warrants were executed on a package mailed to her address and on her home. The package contained 85.94 grams of methamphetamine, and over $4,000 in cash was located in the home. It is estimated based upon the number of packages delivered to her home that Villagomez received and distributed over 1,800 grams of methamphetamine during a six-month period.
This case was investigated by the Yankton Police Department, the South Dakota Division of Criminal Investigation, and the U.S. Postal Inspection Service. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Villagomez was immediately turned over to the custody of the U.S. Marshals Service.
Waterbury Felon Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GLENN JAMISON, 37, of Waterbury, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of possession of a firearm by a previously convicted felon.
According to court documents and statement made in court, on January 10, 2018, Jamison possessed a loaded 9mm Ruger LC9 handgun in Waterbury. At the time, he was on state probation and had two outstanding warrants for his arrest.
Jamison’s criminal history includes numerous felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Hall scheduled sentencing for July 17, 2019, at which time Jamison faces a maximum term of imprisonment of 10 years.
Jamison has been detained since his arrest on January 10, 2018.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation and Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Natasha Freismuth.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
University Tennis Coach Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – The former head coach of the men’s tennis team at the University of Texas at Austin pleaded guilty today in federal court in Boston in connection with accepting a $100,000 bribe to secure the admission of a purported student-athlete to the university.
Michael Center, 54, of Austin, Texas, pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Oct. 30, 2019. Center was initially charged by criminal complaint on March 12, 2019.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Murray Encourages Participation in DEA's National Prescription Drug Take Back Day on April 27, 2019Read the Press Release
CONCORD – United States Attorney Scott W. Murray encourages the public to participate in the Drug Enforcement Administration’s National Prescription Drug Take Back Day on Saturday, April 27, 2019. This biannual event will be held from 10 a.m. to 2 p.m. at thousands of collection sites around the country, including over 100 here in New Hampshire. This event is an important effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“One of the simplest ways that all citizens of the Granite State can help to combat the opioid crisis is to ensure that unwanted medications do not fall into the wrong hands,” said U.S. Attorney Murray. “Far too many individuals started on the path to addiction by misusing prescription drugs. I encourage everyone to take a few minutes to dispose of any prescription drugs that they no longer need in order to help protect their families and their communities.”
“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 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 where you can search by zip code, city, or state.
###
U.S. Attorney, DEA and Alexandria Sheriff Support DEA’s National Prescription Drug Take Back DayRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger will be joined by DEA Chief of Diversion Control John Martin and Alexandria Sheriff Dana Lawhorne at The Neighborhood Pharmacy in Del Ray on Saturday at 11 a.m. for the DEA’s 17th National Prescription Drug Take Back Day.
“Safely disposing of prescription drugs keeps dangerous narcotics out of the wrong hands and out of our communities,” said Terwilliger. “One source of drug abusers’ narcotics are from friends and family, often from the home medicine cabinet. The good people of Alexandria can help us fight the opioid epidemic by ridding their homes of unwanted and unneeded prescription meds and bringing them to a local collection site like the one here in Del Ray.”
The semiannual event will be held at thousands of collection sites around the country, including here in the Alexandria community of Del Ray at The Neighborhood Pharmacy, 2204 Mount Vernon Avenue. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“Saturday’s event will see more law enforcement partners and registered take back sites than any previous DEA event,” said DEA Chief of Diversion Control John Martin. “Our partnerships with federal, state, local and tribal leaders are vital to the success of this important program and we remain committed to providing communities across the United States with safe and convenient drug disposal options.”
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.)
“We greatly appreciate our dedicated partners who join us in fighting the opioid problem with initiatives like Drug Take Back,” said Lawhorne. “Thanks to business partners like The Neighborhood Pharmacy, law enforcement leaders like U.S. Attorney Terwilliger, and our caring community, we can work together to make Alexandria safer.”
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney's Office and DEA Encourage Nevadans to Take Part in National Prescription Drug Take Back DayRead the Press Release
LAS VEGAS, Nev. – The 17th National Prescription Drug Take Back Day will be held on Saturday, April 27, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Assistant Special Agent in Charge Daniel W. Neill for the DEA Las Vegas office.
“Prevention starts at home. Cleaning out the family medicine cabinet could save a life,” said U.S. Attorney Trutanich. “I encourage Nevadans to be responsible citizens and safely dispose of unwanted, unused, and expired prescription medications at a collection site on Take Back Day before the pills end up lost, stolen or misused.”
“This is an excellent opportunity for all Nevadans to empty out their medicine cabinets to prevent misuse,” said Assistant Special Agent in Charge Neill.
On April 27, from 10 a.m. to 2 p.m., partner law enforcement agencies will collect prescription medications at more than 30 collection sites throughout Nevada. The public can find a nearby collection site at www.DEATakeBack.com or by calling 1-800-882-9539. DEA cannot accept liquids, needles or sharps. The service is free and anonymous, no questions asked.
Last October, Americans turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and almost 4,800 of its local and tribal law enforcement partners. Overall, the DEA and its partners have taken in almost 11 million pounds (nearly 5,500 tons) of pills at past Take Back Days.
This initiative addresses a vital public safety and public health issue. For more information about the safe disposal of prescription drugs or about the April 27 Take Back Day event, go to www.DEATakeBack.com.
###
National Prescription Drug Take Back Day Collection Sites
Saturday, April 27, 2019, 10:00 a.m. – 2:00 p.m.
Collection Site
Address
City
Lander County Sheriff Department
#2 State Route 305
Battle Mountain
Food Maxx Parking Lot
3325 Hwy 50 East
Carson City
Smith’s Food & Drug Front of Store
599 E. Williams St.
Carson City
Save Mart Front of Store
3620 North Carson St.
Carson City
Save Mart Front of Store
4348 South Carson St.
Carson City
Walmart Parking Lot
3770 Hwy 395
Carson City
Lyon County Sheriff’s Office, Dayton Substation
801 Overland Loop
Dayton
Fallon Tribal Health Clinic Parking Lot
1001 Rio Vista Dr.
Fallon
CVS Pharmacy Parking Lot
461 W. Williams Ave.
Fallon
Walgreens Pharmacy Parking Lot
2020 Reno Hwy.
Fallon
Lyon County Sheriff’s Office, Fernley Substation
555 E. Main St.
Fernley
Walgreens Parking Lot
1342 U.S. Hwy 395
Gardnerville
Tillman Substation Parking Lot
1281 Kimmerling Rd.
Gardnerville
Henderson Police Department,
West Police Station
300 S. Greenvalley Pkwy.
Henderson
Las Vegas Metropolitan Police Department, South East Area Command
3675 E. Harmon Ave.
Las Vegas
Las Vegas Metropolitan Police Department, Downtown Area Command
621 N. 9th St.
Las Vegas
Smith’s Pharmacy Parking Lot
8555 W. Sahara Ave.
Las Vegas
Las Vegas Metropolitan Police Department, Enterprise Area Command Parking Lot
6975 W. Windmill
Las Vegas
Las Vegas Metropolitan Police Department, Northwest Area Command
9850 W. Cheyenne
Las Vegas
Summerlin’s Farmer’s Market
1980 Festival Plaza
Las Vegas
Pershing County Sheriff’s Office
395 9th St.
Lovelock
Walmart Parking Lot
1807 W. Craig Rd.
North Las Vegas
North Las Vegas Police Department, Northwest Area Command Station
3755 W. Washburn Rd.
North Las Vegas
CVS
3360 S. McCarran Blvd.
Reno
Smith’s Food and Drug
750 S. Meadows Pkwy.
Reno
Smith’s Food and Drug Center Front Entrance
175 Lemmon Dr.
Reno
Save Mart
4995 Kietzke Lane
Reno
Raley’s Market & Pharmacy Inside Entrance
18144 Wedge Pkwy.
Reno
Walmart Front Entrance
5260 W. 7th St.
Reno
Smith’s Food and Drug Front Entrance
1255 Baring Blvd.
Sparks
East Fire Station #4 Inside Station
1476 Albite Rd.
Wellington
Ridley’s Market Parking Lot
1125 W. Winnemucca Blvd.
Winnemucca
Lyon County Sheriff’s Office
911 Harvey
Yerington
Yerington Police Department Parking Lot
30 Nevin Way
Yerington
Safeway Store Parking Lot
212 Elks Point Rd.
Zephyr Cove
Two Nigerian Nationals Indicted in Bitcoin Fraud SchemeRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that two Nigerian nationals have been charged in a 13-count indictment alleging they engaged in an online scheme to defraud victims of bitcoin virtual currency.
In an indictment filed on April 18, 2019, Onwuemerie Ogor Gift, 24, and Kelvin Usifoh, age unknown, were charged with one count each of conspiracy to commit wire fraud and money laundering and 11 counts of wire fraud.
As alleged in the indictment, the scheme began when Gift and Usifoh purchased the URL www.wealthcurrency.com and published various webpages promising investors 20-50 percent returns on investments of bitcoin with zero risk and instant withdrawals. They actively encouraged victims to transfer bitcoin to private virtual currency wallets and made numerous false claims including that their bitcoins would be invested using “unique trading methods” and they would maintain a “constant high interest rate.” They created additional websites perpetuating the same scheme including www.boomcurrency.com and www.merrycurrency.com.
Beginning in December 2017 and continuing until at June 2018, Gift and Usifoh are alleged to have knowingly conspired to defraud three victims, one residing in Oregon and two in California. A photo of a fourth victim was used to create a false persona used in furtherance of the scheme. After receiving bitcoin transfers from their victims, Gift and Usifoh would transfer the bitcoin to other accounts and eventually exchange it for Nigerian Naira. The indictment alleges that in just over six months, the defendants stole 10.88 bitcoins worth approximately $59,000 from the three victims. In total, the government alleges Gift and Usifoh received more than 50 bitcoins as part of the scheme.
This case was investigated by the FBI and is being prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
The Securities and Exchange Commission's Office of Investor Education and Advocacy today issued an Investor Alert to warn investors about investment scams involving websites touting advisory and trading businesses related to digital assets.
Two More Members of Deadly Elmira Opioid Trafficking Organization Sentenced to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Carlito Rios, Jr., 32, of Corning, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of a fentanyl analogue, was sentenced to time served and three years of supervised release by Chief U.S. District Judge Frank P. Geraci, Jr. In addition, Jordan Jones, 25, of Elmira, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, acetyl fentanyl, was sentenced by Chief Judge Geraci to serve 20 months in federal prison.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Jones was a distributor in a large-scale opioid manufacturing and trafficking organization in the Southern Tier of New York and northern Pennsylvania between 2015 and May 2017. As part of the conspiracy, the leaders of the organization, Robert Ian Thatcher and Maximillian Sams, imported bulk quantities of furanyl fentanyl, acetyl fentanyl, and U-47700 from overseas suppliers in China. They ordered the drugs on what is known as “the dark web,” and used different people and addresses in New York and Pennsylvania to receive the shipments. Rivera arranged for some of his friends and associates to receive packages of controlled substances from overseas on behalf of Thatcher and Sams. Thatcher and Sams purchased equipment and materials – including pill presses/mechanical tableting machines, microcrystalline cellulose, lactose magnesium stearate, and powdered food coloring – which they used to manufacture tens of thousands of blue pills containing furanyl fentanyl, acetyl fentanyl and U-47700. The pills were made to look like legitimate 15 milligram and 30 milligram Percocet pills.
At least two individuals – a 21 year old female, and a 25 year-old male – died after ingesting the blue pills containing furanyl fentanyl and U-47700. In addition, at least one individual overdosed on more than one occasion after using the blue pills manufactured and distributed by the organization, but survived after being treated by first responders with Narcan.
Thatcher and Sams used residences at 604 South Lehigh Avenue in Sayre, Pennsylvania, and 665 Sawdey Road in Catlin, NY, to manufacture and process the pills for distribution. During the execution of a search warrant at the Sayre location on May 16, 2017, law enforcement agents recovered, among other things, 244 blue pills containing furanyl fentanyl, four long guns and ammunition. In addition, during the execution of a search warrant at the Catlin location on May 18, 2017, law enforcement agents recovered, among other things, materials used by Thatcher and Sams to manufacture the pills for distribution. During the conspiracy, Thatcher also possessed several firearms at the Pennsylvania location and his residence in Elmira.
After manufacturing the pills, Thatcher and Sams would distribute them in large quantities to other co-conspirators – including Jesus Rivera, Anthony Prettyman, Terrance Washington, and Dwayne Banks, a/k/a Fizzle, a/k/a Fizz – who would then distribute the pills to various street-level customers in the Elmira area. In March 2016, Jones obtained a supply of pills containing acetyl fentanyl from Rivera, and distributed some of those pills to a customer in Elmira.
Sams also supplied pills to an individual in the Charlotte, North Carolina area. As part of the conspiracy, Sams used co-conspirator Anthony Prettyman to transport 5,330 blue pills containing furanyl fentanyl from Elmira to North Carolina in October 2016. On October 25, 2016, in North Carolina, deputies with the Iredell County (NC) Sheriff’s Office conducted a traffic stop of the vehicle in which Prettyman was traveling. During a subsequent search, the deputies recovered and seized a paint can with a false bottom containing the 5,330 blue pills from inside Prettyman’s vehicle.
In early 2017, Thatcher arranged for a package of furanyl fentanyl, that he ordered over the dark web, to be sent to Carlito Rios, Jr. On March 13, 2017, Customs and Border Protection officers at the John F. Kennedy International Airport Mail Branch in Queens, NY, examined a United States Postal Service package addressed to co-conspirator Rios at 1015 Oak Street in Elmira. The sender was listed as an entity in China. Upon inspection, the package was found to contain approximately 249 grams of furanyl fentanyl. Sams and Thatcher intended to use the seized furanyl fentanyl to manufacture and distribute additional quantities of the blue pills. As part of the conspiracy, Rios agreed to accept the package of furanyl fentanyl for Thatcher.
The sentencings mark the fourteenth and fifteenth defendants to have been sentenced in this investigation:
Thatcher was sentenced to serve 23 years in federal prison;
Sams was sentenced to 210 months in federal prison;
Prettyman was sentenced to 125 months in federal prison;
Banks was sentenced to 108 months in federal prison;
Rivera was sentenced to 108 months in federal prison;
Thatcher’s girlfriend, Amber Bates, who was convicted of money laundering conspiracy, was sentenced to five years probation to include six months of home detention;
Robert J. Elford was sentenced to 121 months in federal prison;
Edward Barrett was sentenced to 90 months in federal prison;
Scott Fairbanks was sentenced to 90 months in federal prison;
Dusty Pemberton was sentenced to 70 months in federal prison;
Deven Hill was sentenced to 37 months in federal prison,
Chad Smith was sentenced to 22 months in federal prison; and
Isaiah McLaurin, who was convicted of witness tampering after threatening an individual working with the Drug Enforcement Administration on Facebook, was sentenced to serve 57 months in federal prison.
As U.S. Attorney Kennedy has previously stated, “That the members of this organization sought to profit by pushing poison on addicts, is reprehensible. In my view, however, what is even more insidious about their behavior was their effort to press this poison into counterfeit pills, thereby giving their customers a false sense of security that there was some quality and dosage control associated with their manufacture.”
The sentencing is the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office and Scranton PA Resident Office, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, Community Narcotics Enforcement Team Southern Tier, under the direction of Major Mary Clark and Lieutenant Kevin P. Sucher; the Elmira Police Department, under the direction of Chief Joseph Kane; Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Pennsylvania State Police, under the direction of Acting Commissioner Lieutenant Colonel Robert Evanchick; the Chemung County Sheriff’s Office, under the direction of Christopher J. Moss; the Iredell, NC County Sheriff’s Office, under the direction of Darren E. Campbell, and Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher. Additional assistance was provided by the Northeast Regional Laboratory.
# # # #
Two Former Arriva Medical Executives Agree to Pay $1 Million to Settle Diabetic Testing Supply Fraud AllegationsRead the Press Release
NASHVILLE, Tenn. – April 24, 2019 – David Wallace of Boca Raton, Florida and Timothy Stocksdale, of Ft. Lauderdale, Florida, two former executives of Arriva Medical, LLC (Arriva), agreed to pay $500,000 each to settle the United States’ allegations that they had violated the False Claims Act, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Arriva is a mail-order diabetic testing supply company based in Coral Springs, Florida, which, at one point, had operations including a customer call center in Antioch, Tennessee. Wallace and Stocksdale co-founded Arriva and after its November 2011 sale to Alere, Inc. (Alere), they remained employed as Arriva executives. Wallace served as Arriva’s president from November 23, 2011 through August 30, 2013, and Stocksdale served as Arriva’s vice president during the same period.
The settlement resolves the United States’ claims that Wallace and Stocksdale caused Arriva to submit false claims to Medicare that were tainted by kickbacks paid to beneficiaries in the form of free or no cost home blood glucose meters or waived or uncollected copayments during the period from November 23, 2011 through August 30, 2013. The settlement also resolves the United States’ claims that Wallace and Stocksdale caused Arriva to bill Medicare for medically unnecessary home blood glucose meters during the same period.
On February 8, 2019, the United States separately intervened in a False Claims Act case alleging that Arriva and Alere submitted and/or caused to be submitted false claims to the Medicare program for medically unnecessary glucometers and diabetic testing supplies that were tainted by the payment of kickbacks in the form of free home blood glucose meters and routine copayment waivers. Alere is a large medical device company based in Waltham, Massachusetts. Both Arriva and Alere were acquired by Abbott Laboratories in September 2017.
In October 2016, the Centers for Medicare & Medicaid Services (CMS) revoked Arriva’s billing number for billing Medicare for durable medical equipment that was shipped to a beneficiary more than 14 days after the beneficiary’s death. Arriva subsequently stopped operating in late 2017.
The case was handled by the United States Attorney’s Office for the Middle District of Tennessee and investigated by the Tennessee Bureau of Investigation Medicaid Fraud Control Unit and the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States.
# # # # #
Two Chinese Nationals Facing Federal Indictment for Conspiracy to Traffick in Counterfeit Goods and Mail FraudRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Xiaoying Xu, age 34, a Chinese citizen, and Yiwen Zhu, age 34, a Chinese citizen and legal permanent resident of the United States, both residing in Covina, California, on a federal conspiracy charge, mail fraud, and trafficking in counterfeit goods. The indictment was returned on April 23, 2019, and the defendants were arrested today.
The indictment 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; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Casey Durst, Director of Field Operations, U.S. Customs and Border Protection - Baltimore Field Office.
“These defendants allegedly imported counterfeit goods from China and sold them as legitimate merchandise using the registered trademarks of legitimate companies.” said U.S. Attorney Robert K. Hur. “Those who traffick in counterfeit goods are committing a crime which results in American jobs lost, American business profits stolen, and American consumers tricked into receiving substandard products.”
According to the 13-count indictment, from about August 2016 until approximately April 2019, Xu and Zhu conspired with others to defraud e-commerce customers by importing and selling counterfeit consumer goods, specifically Pandora jewelry and Ray-Ban sunglasses. The indictment alleges that the defendants used their residence and offices in El Monte and Alhambra, California, as destination points for shipments of counterfeit goods shipped from Hong Kong and China. Xu and Zhu allegedly repackaged the counterfeit goods, then mailed them to unsuspecting customers throughout the United States who believed they had purchased authentic goods.
The defendants allegedly used fraudulent accounts set up with e-commerce marketplace companies to sell the counterfeit goods, misrepresenting to customers that they were authentic. Xu and Zhu obtained funds from the victims of the counterfeit scheme through fraudulently acquired customer accounts opened in the names of other people at a global online payment company. The online payment company sent the victims’ money to Xu and Zhu by electronic transfer to bank accounts or by check, which the defendants then cashed at ATMs. The indictment alleges that the defendants then transferred the proceeds of the scheme from their bank accounts to other bank accounts opened in the names of other Chinese nationals.
If convicted, the defendants face a maximum sentence of five years in prison for conspiracy to commit mail fraud and traffick in counterfeit goods; a maximum of 20 years in prison for each of six counts of mail fraud; and a maximum of 10 years in prison for each of six counts of trafficking in counterfeit goods. The defendants are expected to have an initial appearance in U.S. District Court in the Central District of California. No court appearance has been scheduled yet in Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI, HSI, U.S. Postal Inspection Service, and U.S. Customs and Border Protection, in Maryland and in Los Angeles, California; Seattle, Washington; and Tampa, Florida for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Peter J. Martinez, who are prosecuting the case.
# # #
Troy Man Charged with Possessing a Firearm as a FelonRead the Press Release
ALBANY, NEW YORK – Dyshawn Fisher, age 24, of Troy, New York, was arraigned Monday on a charge of unlawful possession of a firearm as a felon.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The indictment alleges that on June 26, 2018, Fisher, a felon, was in possession of a .38 caliber revolver. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
On Monday, Fisher appeared before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.
If convicted, Fisher faces up to 10 years in prison, a term of post-release supervision of up to 3 years, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Troy Police Department. This case is being prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Alicia Suarez.