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31 May 2019
South Korean Nationals Indicted on Charges They Poached Wild Succulent Plants for Illegal Exportation to AsiaRead the Press Release
LOS ANGELES – Three South Korean nationals were charged today in a federal grand jury indictment with attempting to illegally export to Asia more than $600,000 in live Dudleya succulent plants that they had pulled out of the ground at remote state parks in Northern California.
The two-count indictment charges each of the following defendants with conspiracy to knowingly export plants from the United States that had been taken in violation of California law, and attempting to export plants taken in violation of state law:
- Byungsu Kim, 44, who operates a nursery in Vista and is a fugitive;
- Youngin Back, 45, who also is a fugitive; and
- Bong Jun Kim, 44, who is in federal custody.
According to the indictment, the defendants arrived at Los Angeles International Airport from their native South Korea in October 2018 to harvest wild Dudleya plants from coastal habitats in Northern California and ship them back to South Korea. Native Dudleya plants from coastal habitats in Northern California are particularly valuable in Asia due to their unique physical features, including the color and shape of their leaves. Because growing the plants in nurseries takes years, smugglers are known to harvest wild, living Dudleya plants from the ground in Northern California and export the live plants to Asia, where they are sold on the black market.
Upon his October 2018 arrival in Los Angeles via a one-way ticket from South Korea, Byungsu Kim displayed records stating that his nursery had shipped 5,731 Dudleya plants (501 pounds) to South Korea on or about September 12, 2018, and that the purported “place of origin” of the plants was San Diego County. Since 2009, Byungsu Kim had traveled to the United States from South Korea more than 50 times, and in 2013 had 80 plants seized by U.S. Customs and Border Protection.
After their October 2018 arrival in Los Angeles, the trio allegedly drove to various state parks where Dudleya plants grow, including DeMartin State Beach in Klamath, California, Del Norte Coast Redwoods State Park, and Russian Gulch State Park in Mendocino County. Law enforcement surveilling the defendants observed them pull the plants out of the ground and then transport the harvested Dudleya plants to a nursery that Byungsu Kim operated in Vista, located in San Diego County, court documents state. Prior to the plants’ shipment, Byungsu Kim scheduled an inspection with a county agriculture official at the Vista nursery and falsely told her the government-issued certificate necessary for the plants’ exportation should list 1,397 Dudleya plants (259 pounds) for export to South Korea and that the “place of origin” of the plants was San Diego County, the indictment alleges.
The defendants then transported the plants to a commercial exporter in Compton, to whom Byungsu Kim intended to present the fraudulently obtained certificate so the Dudleya plants could be shipped to South Korea, the indictment alleges. The defendants were arrested in Compton last year and currently face state criminal charges in Del Norte County Superior Court. Law enforcement seized approximately 3,715 Dudleya plants (664 pounds) in 34 boxes at the Compton location and the value of the seized plants in Korea would be approximately $602,950, court papers state. Two of the defendants, Byungsu Kim and Youngin Back, have since fled the United States.
If convicted on all counts, the defendants face a statutory maximum 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 matter was investigated by the California Department of Fish and Wildlife; the United States Fish and Wildlife Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Customs and Border Protection;
County of San Diego, Agriculture, Weights and Measures; U.S. Department of Agriculture, and California State Parks.
This case is being prosecuted by Assistant United States Attorneys Matthew W. O’Brien and Dennis Mitchell of the Environmental and Community Safety Crimes Section.
South Glens Falls Man Pleads Guilty to Cocaine Trafficking ConspiracyRead the Press Release
ALBANY, NEW YORK – Carlo Varnado, age 41, of South Glens Falls, New York, pled guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, New York Field Division, United States Drug Enforcement Administration (DEA).
As part of his guilty plea, Varnado admitted that between January 2013 and October 9, 2017, he distributed cocaine from his apartment in South Glens Falls and in areas around Glens Falls. Some of this cocaine was resold in and around Lake Placid, New York. On October 9, 2017, DEA Special Agents seized approximately 8.8 ounces of cocaine bound for Lake Placid after Varnado distributed it to another person. DEA Special Agents then executed a search warrant at Varnado’s apartment and recovered approximately 20 grams of cocaine, inositol (a common cutting agent for cocaine), approximately $1,000 in U.S. currency, a scale, a vacuum sealer, and plastic baggies. As part of his plea, Varnado admitted trafficking approximately 4 kilograms of cocaine during the conspiracy.
As a result of his conviction, Varnado faces at least 5 years and up to 40 years in prison and a fine of up to $5,000,000, when he is sentenced on September 24, 2019. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Drug Enforcement Administration (DEA) and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
South Florida Resident Sentenced to More than Eighteen Years in Prison for Impersonating a Member of the Saudi Royal Family in Order to Swindle Millions from InvestorsRead the Press Release
The Impersonation Scheme Involved Wire Fraud, Fake Diplomatic License Plates, Expensive Jewelry, Artwork, Luxury Automobiles, Yachts, Private Jets, and International Trips
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Frederick R. Stolper, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service (DSS), Miami Field Office, announced that Anthony Gignac, a/k/a “Khaled Al-Saud,” a/k/a “Khalid Al-Saud,” a/k/a “Khalid Bin Al-Saud,” a/k/a “Khalid Bin Sultan Al-Saud,” a/k/a “Sultan Bin Khalid Al Saud,” 48, of Miami, was sentenced today by U.S District Judge Cecilia M. Altonaga to a total of 224 months in prison for fraudulently assuming the identity of a member of the Saudi Royal family in order to build relationships worldwide, including in South Florida, receive gifts, and conduct a large-scale scheme to defraud would-be investors.
“Over the course of the last three decades, Anthony Gignac has portrayed himself as a Saudi Prince in order to manipulate, victimize, and scam countless investors from around the world. As the leader of a sophisticated, multi-person, international fraud scheme, Gignac used his fake persona – Prince Khalid Bin Al-Saud – to sell false hope. He sold his victims on hope for their families, careers, and future. As a result, dozens of unsuspecting investors were stripped of their investments, losing more than $8 million,” stated U.S. Attorney Fajardo Orshan. “Today, in a federal court of law, justice spoke for the victims, and Anthony Gignac will now face years in prison. The U.S. Attorney’s Office commends the dedicated efforts of our partners with the Diplomatic Security Service for their commitment to this extensive investigation, their international reach, and their protection of our global community.”
“The Diplomatic Security Service is firmly committed to investigating allegations of crime related to international fraud schemes,” said DSS Special Agent in Charge Stopler. “Our tremendous success in finally closing this case could never have been possible if not for the global reach of DSS and the close cooperation of the U.S. Attorney’s Office.”
Gignac previously pled guilty to impersonating a foreign diplomat or foreign government official, in violation of Title 18, United States Code, Section 915, aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1)(a), wire fraud, in violation of Title 18, United States Code, Section 1343, and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 17-CR-20891).
Beginning as early as May of 2015, Gignac claimed to be a Saudi Arabian Prince by the name Khalid Bin Al-Saud. To support his fraudulent persona, Gignac purchased fake diplomatic license plates, a fake Diplomatic Security Service badge for his bodyguards, traditional Saudi garb, luxury goods consistent with the lavish lifestyle of a Saudi Royal, and business cards referring to himself as “Prince,” “His Royal Highness,” and/or “Sultan.” He ran an Instagram account depicting himself as a prince, with pictures posted of Saudi Royal family members, including the king, with captions such as “my dad.” Gignac referred to himself as a prince when meeting with investors, in emails, and over the phone. He travelled with security, and demanded that certain royal protocol (i.e., gift giving) be followed when individuals met him to engage in business deals.
Gignac used his assumed persona to con investors by claiming that he had access to lucrative business deals by virtue of his royal status. To aid in that scheme, Gignac and a co-conspirator formed a fraudulent investment company called Marden Williams International LLC (“MWI”). Using MWI, Gignac falsely claimed access to exclusive business ventures throughout the world, including a pharmaceutical company in Ireland, a casino in Malta, luxury hotels, and a jet-fuel trading platform in the Middle East. In addition, Gignac offered investors the chance to purchase his alleged stake in Saudi Arabia’s state-owned oil company – Saudi Aramco. Gignac supported his fraudulent scheme by forging documents from high-ranking Saudi officials purporting to verify his status as a royal, his access to great wealth, and his stake in Saudi Aramco.
Investors from all over the world were scammed into investing with Gignac and MWI. In all, investors from the United States, Canada, the United Kingdom, Switzerland and Hong Kong sent Gignac close to $8 million. Those funds were not put into business opportunities, legitimate investments, or any interest-yielding source. Instead, Gignac used the money to finance his lavish lifestyle, including Ferraris, Rolls-Royces, yachts, expensive jewelry, designer clothing, travel on private jets, and a two-bedroom property on Fisher Island. Investors were also tricked into giving Gignac extravagant gifts like paintings, jewelry, and memorabilia.
In addition, on November 19, 2017, Gignac flew into John F. Kennedy International Airport in New York, from London, using a passport in the name of another individual.
According to the court record, Gignac has executed similar schemes in the past. Between 1988 and the present, the Defendant has been arrested or convicted eleven different times for prince-related schemes.
A restitution hearing has been scheduled for August 30, 2019, at 2:00 p.m., before Judge Altonaga in Miami.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DSS in this matter. The case was prosecuted by Assistant U.S. Attorney Frederic Shadley. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture aspects of this case.
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.
Sioux City Man Sentenced for Methamphetamine OffensesRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on May 29, 2019, Jose Valentin Carrillo, age 35, of Sioux City, was sentenced by United States District Court Chief Judge John A. Jarvey for Conspiracy and Possession with Intent to Distribute Methamphetamine. Valentin Carrillo was sentenced to prison terms of 190 months each for Counts 1 and 2; the sentence is to run concurrently. The prison term will be followed by a term of supervised release of five years on each count, also to run concurrently.
According to court documents, Valentin Carrillo organized and arranged the transportation of approximately eight kilograms of methamphetamine from Kansas City, Missouri to Nebraska City, Nebraska. On August 13, 2017, the vehicle transporting the methamphetamine was stopped by law enforcement in Fremont County, Iowa.
This case was investigated by Fremont County Sheriff’s Department, Iowa State Patrol, Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Seminole Drug Dealer Sentenced to 31+ Years in Federal PrisonRead the Press Release
A long-time Seminole, Texas drug dealer was sentenced today to 31 years and 10 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a three-day trial in early January, a federal jury in Lubbock unanimously convicted Robert Bazan, 45, of two methamphetamine offenses and four firearm offenses, including possession of firearms in furtherance of a drug trafficking crime.
“The Defendant was a violent man who endangered both law enforcement officers and everyday citizens across the South Plains,” said U.S. Attorney Nealy Cox. “The community will be relieved to hear he will no longer be a danger to this region.”
“Six previous felony convictions did not deter Mr. Bazan from engaging in the illegal drug and gun trade. High-speed flight to avoid apprehension and witness tampering show he is a threat to the public at large and any individual that might witness or hinder his criminal activity,” stated ATF Special Agent in Charge of the Dallas Field Division Jeffrey C. Boshek II. “When ATF says we investigate the worst of the worst, we are talking about Mr. Bazan.”
According to evidence presented at trial, in April 2018, Mr. Bazan – a six-time convicted felon – unlawfully sold an AR-style pistol and methamphetamine to a confidential informant.
Less than four months later, in July 2018, Mr. Bazan led deputies with Gaines County, Texas, and Lea County, New Mexico, on a high speed pursuit following a traffic stop near the Texas/ New Mexico border. During the pursuit, which reached speeds of over 95 miles per hour, Bazan attempted to discard two handguns and approximately 413 grams of methamphetamine.
Local law enforcement officers pursued the defendant at high speeds until Bazan began shooting at them. Later that day, officers recovered two handguns and methamphetamine from the side of the roadway. At trial, an officer testified that during his decade-plus career, he had never recovered such a large amount of methamphetamine from a defendant.
Mr. Bazan worked unsuccessfully to block prosecution. Upon indictment, he attempted to intimidate a cooperating witness. At trial, the jury heard a recorded jail telephone call in which Bazan ordered the publication of the name of the witness in order to influence her testimony.
Agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives and the United States Drug Enforcement Administration conducted the investigation with the assistance of the Lubbock Police Department and the Gaines, Lea, and Lubbock County Sheriff’s Offices. U.S. District Court Judge Sam R. Cummings presided over the trial. Assistant U.S. Attorneys Ann Howey, Stephen Rancourt and Jeff Haag prosecuted the case.
Schenectady Man Sentenced to 150 Months for Role in Gun Store BurglaryRead the Press Release
SYRACUSE, NEW YORK – Christian Roman, age 25, of Schenectady, New York, was sentenced to serve 150 months in prison for stealing, possessing, concealing, and storing firearms stolen from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County.
The announcement was made by United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Norman A. Mordue also sentenced Roman to a three year term of supervised release and ordered that he pay restitution of $48,775.00
Roman pled guilty on November 21, 2018. As part of his plea, Roman admitted that, on October 22, 2017, he and Jose Fontanez broke a window to gain entry into Target Sports and then removed dozens of firearms, as well as ammunition and other property from the store, making multiple trips to and from the store with the assistance of Dalmary Morales. Roman further admitted that, after inventorying the stolen firearms, the two men hid them in a storage unit in Schenectady, New York and, while on the run from law enforcement, enlisted accomplices in Amsterdam, New York and Rochester, New York to help retrieve and transport them to various locations in New York. In exchange for their assistance, Roman and Fontanez provided some of the stolen firearms to their accomplices.
Omar DeJesus, age 32, and Onic Martinez, age 34, both of Amsterdam, pled guilty in 2018 for their roles in stealing, transporting, and possessing the firearms. Both men were sentenced to 120 months in prison.
Dalmary Morales, age 24, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports. She was sentenced to 57 months in prison.
Juan Saez, age 35, of Rochester, pled guilty in 2018 for his role in stealing, transporting, and possessing the firearms. He is scheduled to be sentenced on August 2, 2019.
Jose Fontanez, age 36, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports, and other, related charges. He is scheduled to be sentenced on August 16, 2019.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York State Police, and the Glenville, (New York) Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Rowan County Meth Dealers Sentenced to Federal PrisonRead the Press Release
GREENSBORO, N.C. - Two North Carolina residents were sentenced on May 28, 2019, for distributing drugs in Rowan County, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
Alfredo Arias BELLO, aka Alfredo Arias Vello, age 53, of Yadkinville, North Carolina, and Rodolfo VARGAS-BENITEZ, aka Luciano Vargas Benitez, age 37, of Mocksville, North Carolina, were sentenced in federal court in Greensboro by the Honorable Catherine C. Eagles. BELLO was sentenced to a 60-month term of imprisonment and VARGAS-BENITEZ was sentenced to 72 months. Both defendants pleaded guilty to distributing 50 grams or more of methamphetamine in Rowan County. In addition to these prison terms, both BELLO and VARGAS-BENITEZ were ordered to report to immigration authorities immediately upon discharge from the Bureau of Prisons and to serve a term of supervised release after completing their sentences.
According to documents filed in court, in approximately late 2017, a confidential informant (“CI”) approached law enforcement officers and told them he could purchase ounce quantities of methamphetamine from an individual later identified as BELLO. As a result, the CI contacted BELLO on January 16, 2018, and arranged for the purchase of two ounces of methamphetamine. An undercover officer (hereinafter “UC”) accompanied the CI during the transaction. Soon after arriving at the meeting location, the CI and UC observed a white SUV occupied by two males approach their vehicle. The UC exchanged $1300 for 43 grams of methamphetamine. The same procedure was utilized to make three additional purchase of methamphetamine from an individual subsequently identified as BELLO. Those purchases took place on February 1, 2018 (56 grams), April 18, 2018 (56 grams), and June 27, 2018 (116 grams). Each of those transactions took place in Rowan County, with the exception of the purchase on April 18, 2018, which took place in Yadkinville, North Carolina.
When the CI spoke with BELLO on the phone to work out details of the meeting on June 27, 2018, BELLO said “his supplier would be in a second vehicle.” Once BELLO arrived at the prearranged meeting location he placed a call to the CI and said his supplier was on the way. BELLO went on to explain that once his supplier arrived he would obtain the methamphetamine from the supplier before meeting with the informant. Shortly thereafter BELLO was observed meeting with a second Hispanic male, who was subsequently identified as VARGAS-BENITEZ. Only minutes later the UC completed the purchase of approximately four ounces of methamphetamine from BELLO.
Law enforcement officers conducting surveillance moved in and apprehended both BELLO and VARGAS-BENITEZ. The vehicles that Bello and VARGAS-BENITEZ drove to the meeting were searched. The center console of BELLO’s vehicle contained the money utilized to purchase the methamphetamine. The search of VARGAS-BENITEZ’s vehicle led to discovery of a purse that contained an additional quantity of methamphetamine. A small amount of methamphetamine was located in the front pocket of VARGAS-BENITEZ’s clothing.
This case was investigated by the Rowan County Sheriff’s Department, Salisbury Police Department, North Carolina State Bureau of Investigation, Mocksville Police Department, and Yadkinville Police Department. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Rome City Man Sentenced to 150 Months in PrisonRead the Press Release
FORT WAYNE – Glen Jacobs, 43 years old, of Rome City, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to distributing a controlled substance and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Jacobs was sentenced to 150 months in prison followed by 4 years of supervised release.
According to documents in this case, on May 3, 2018, Jacobs distributed 5 or more grams of methamphetamine. Jacobs also possessed a firearm in furtherance of his drug trafficking offense of maintaining a drug involved premises between May 3, 2018 and June 27, 2018.
This case was investigated by the Drug Enforcement Administration with the assistance of the Bureau of Alcohol Tobacco Firearms and Explosives, the Rome City Police Department, Noble County Sheriff’s Department, Auburn Police Department, Auburn Police Department Narcotics Enforcement Team, Allen County Sheriff’s Department and the Indiana State Police. This case was prosecuted by Assistant U.S. Attorney Anthony W. Geller.
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Registered Sex Offender Sentenced to 14 Years in Prison for Enticing Minors via Social Media PlatformsRead the Press Release
A registered sex offender with two prior child pornography related convictions was sentenced today in U.S. District Court in Tacoma to fourteen years in prison and twenty years of supervised release for enticement of a minor, announced U.S. Attorney Brian T. Moran. PETER JAMES HUFFERD, 47, was on federal supervision living in sex-offender housing in Seattle when law enforcement discovered he was secretly using a cell phone to communicate with minor females via social media. HUFFERD convinced two of the minor females to send him sexually explicit images. At the sentencing hearing, U.S. District Judge Ronald B. Leighton said HUFFERD showed a pattern of criminal conduct that poses “a danger to society.”
According to records filed in the case, HUFFERD had just completed a ten-year prison term in April 2017 when he began federal supervision. HUFFERD was allowed one monitored cellular phone. Beginning no later than October 2017, HUFFERD used an unmonitored cell phone to communicate with minors on SnapChat, Instagram and Tumblr. HUFFERD began relationships with multiple minor females, convincing at least two of them to send him sexually explicit images.
HUFFERD was convicted in 2003 in Clallam County Superior Court of three counts of possession of child pornography and was sentenced to 85 days in custody. At the time law enforcement determined HUFFERD was posing online as a 15-year-old girl to try to get minors to send him sexually explicit images. In 2008, HUFFERD was sentenced to ten years in prison after a father discovered his 12-year-old daughter was chatting online with HUFFERD. HUFFERD was using the same identity of a 15-year-old girl and engaging in sexually explicit talk with the 12-year-old. HUFFERD was encouraging the child to cut herself. A search of HUFFERD’s computer revealed more than 300 sexually explicit images of children.
In the current case, in March 2018, U.S. Probation discovered the unmonitored cell phone in a search of HUFFERD’s sex offender residence. A court-authorized search warrant revealed HUFFERD’s illegal communications via social media.
The case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Brian Werner.
Queens Storeowner Indicted for Setting Fire to Rival Supermarket in BrooklynRead the Press Release
Earlier today, a federal grand jury in Brooklyn returned an indictment charging Mamunar Khan with the February 3, 2019 arson of the Premium Supermarket in East New York. Khan was previously arrested on a complaint on May 6, 2019, and will be arraigned at a later date. If convicted, Khan faces a mandatory minimum sentence of five years’ imprisonment, and a maximum of 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives, James P. O’Neill, Commissioner, New York City Police Department (NYPD), and Daniel A. Nigro, Commissioner, New York City Fire Department (FDNY), announced the charge.
“As alleged in the indictment, Khan set fire to a supermarket while it was open for business, demonstrating total disregard for the safety of employees, customers and the firefighters who responded to the blaze,” stated U.S. Attorney Donoghue. “Attempting to burn down your competition is an extremely serious and violent crime and we and our law enforcement partners will ensure that such crimes are punished.”
“The alleged violent acts of the defendant against a fellow business owner could have resulted in substantial loss of property and cost the lives of innocent people to include first responders,” stated ATF Special Agent-in-Charge DeVito. “The ATF/NYPD/FDNY Strategic Explosive and Arson Response Task Force will continually work to prevent violent acts like this from occurring and to swiftly bring the perpetrators of such acts when they do occur, to justice. I would like to thank the United States Attorney’s Office for their work in prosecuting the case.”
“Mamunar Khan put personal profit before public safety and put people’s lives at risk,” said NYPD Commissioner O’Neill. “The NYPD and its law enforcement partners will never tolerate the kind of recklessness and brazen criminality that was committed in this case.”
“The use of fire as a weapon to injure and intimidate is a callous crime, one that senselessly puts the lives of New Yorkers and FDNY members in danger,” stated FDNY Commissioner Nigro. “Thanks to our Fire Marshals, NYPD Detectives, ATF agents, and the US Custom and Border Patrol agents who brought to justice an alleged arsonist who sought to avoid responsibility for this crime.”
Khan is the co-owner of Deshi Bazaar, located in Ozone Park, Queens. On February 3, 2019, video footage recovered from the Premium Supermarket, located at 1196 Liberty Avenue in Brooklyn, showed Khan pushing a cart filled with unknown flammable material down an aisle in the store. Khan, wearing blue latex gloves, used a lighter to ignite the material, and then exited the store. As the fire spread through the store, a second video camera recorded Khan driving away in a Mercedes-Benz SUV. The fire caused substantial damage to Premium Supermarket and the structure of the building.
A witness told law enforcement agents that Khan had previously complained that the low prices at Premium Supermarket hurt business at his own nearby market. Khan was then interviewed by law enforcement agents. The following day, he left the country and traveled to Bangladesh. Khan was arrested three months later upon returning to the United States.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Andrew D. Grubin is in charge of the prosecution.
The Defendant:
MAMUNAR KHAN (also known as “Mumunar Khan”)
Age: 59
Ozone Park, QueensE.D.N.Y. Docket No. 19-CR-247 (LDH)
Post Falls Men Sentenced for Ties to Firearm used to Kill Coeur d’Alene Police Sergeant Greg MooreRead the Press Release
COEUR D’ALENE – Nicholace Cane Thomas, 23, and Donald Eugene Shuck, 33, both of Post Falls, were sentenced for theft of a firearm that was later used by Johnathan Renfro to murder Coeur d’Alene Police Sergeant Greg Moore, U.S. Attorney Bart M. Davis announced today. U.S. District Judge Edward J. Lodge sentenced Thomas to 24 months in prison followed by three years of supervised release for possession of a stolen firearm. Judge Lodge sentenced Shuck to 200 hours of community service and 5 years of probation for accessory after the fact.
According to court records, during the early morning of April 24, 2015, Shuck and Thomas burglarized cars in the Post Falls area. Thomas stole a firearm from a vehicle and showed it to Shuck, who then drove them from the area. Thomas later traded the firearm to a third party for methamphetamine. Twelve days after the theft, on May 5, 2015, Coeur d’Alene Police Sergeant Greg Moore was shot and killed with the stolen firearm by Johnathan Renfro. During the subsequent murder investigation, officers tracked the firearm used by Renfro to Thomas and Shuck.
The State of Idaho charged and convicted Renfro for murdering Sergeant Moore. Renfo was sentenced to death in 2017.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation, Idaho State Police, Kootenai County Sheriff’s Office, Coeur d’Alene Police Department, Post Falls Police Department, and Idaho Probation and Parole.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Pine Ridge Man Found Guilty in Violent Shooting SpreeRead the Press Release
United States Attorney Ron Parsons announced that Lester Waters, Jr., age 38, was found guilty of 2 counts of Assault with a Dangerous Weapon, 2 counts of Assault Resulting in Serious Bodily Injury, and 2 counts of Discharging, Brandishing, or Possessing a Firearm During and in Relation to a Crime of Violence following a federal trial in Rapid City, South Dakota.
Each assault charge carries a maximum sentence of 10 years in federal prison, and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The two firearms charges each carry a mandatory minimum sentence of 10 years in federal prison.
Evidence at trial established Waters fired a pistol four times while at a party at a Pine Ridge residence on January 25, 2018. Three of the bullets struck one of the victims, ultimately paralyzing him. Another bullet struck a second victim in the face, causing extensive injuries.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorneys Heather Sazama and Eric Kelderman prosecuted and tried the case.
A sentencing date was set for September 17, 2019. Waters was remanded to the custody of the U.S. Marshals Service pending sentencing.
Picayune Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – Nygele McKinney, 34, of Picayune, Mississippi, pled guilty today before U.S. District Judge Sul Ozerden to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans.
On December 29, 2018, McKinney, working with co-defendant Leonardo Serra, of Texas, accepted the delivery of a load of methamphetamine in Picayune. Serra drove the methamphetamine secreted in a vehicle to a residence in Picayune. HSI Agents executed a search warrant while McKinney was in the process of removing the methamphetamine from the hidden compartment. The methamphetamine was over 5 kilograms and 90% pure.
McKinney will be sentenced on September 4, 2019, by Judge Ozerden. He faces a maximum penalty of life in prison and a $10,000,000 fine.
Leonardo Serra pled guilty on April 16, 2019, to possession with intent to distribute methamphetamine. He will be sentenced on July 17, 2019, and faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Pharmaceutical Company Admits to Price Fixing in Violation of Antitrust Law, Resolves Related False Claims Act ViolationsRead the Press Release
Heritage Pharmaceuticals Inc., a generic pharmaceutical company headquartered in Eatontown, New Jersey, was charged for conspiring with its competitors to fix prices, rig bids, and allocate customers, the Department of Justice announced today.
According to a one-count felony charge filed yesterday in the United States District Court for the Eastern District of Pennsylvania in Philadelphia, from about April 2014 until at least December 2015, Heritage participated in a criminal antitrust conspiracy with other companies and individuals engaged in the production and sale of generic pharmaceuticals, a purpose of which was to fix prices, rig bids, and allocate customers for glyburide, a medicine used to treat diabetes. This charge is the third in the Department of Justice’s Antitrust Division’s ongoing investigation; Heritage’s former CEO and its former president were previously charged.
The Antitrust Division also announced a deferred prosecution agreement resolving the charge, under which Heritage admits that it conspired to fix prices, rig bids, and allocate customers for glyburide. Under the agreement’s terms, Heritage will pay a $225,000 criminal penalty and cooperate fully with the ongoing criminal investigation. The United States will defer prosecuting Heritage for a period of three years to allow the company to comply with the agreement’s terms. The agreement will not be final until accepted by the court.
“American consumers have the right to generic drugs sold at prices set by competition, not collusion,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “It is particularly galling that, when healthcare prices in the United States are already high, certain generic pharmaceutical companies and executives engaged in collusive conduct at the expense of individuals who depend on critical medications. Heritage and its co-conspirators cheated and exploited vulnerable American patients to pad their bottom line.” Delrahim continued, “this resolution — requiring an admission of guilt, a criminal penalty, and cooperation in the ongoing investigation — sends a clear message to generic pharmaceutical companies and their executives that this conduct will not be tolerated. The Division and its law enforcement partners, including the FBI and the U.S. Postal Service Office of Inspector General, will continue to hold companies and individuals accountable for collusion that undermines the integrity of the market for drugs.”
The Antitrust Division entered into the deferred prosecution agreement with Heritage based on the individual facts and circumstances of this case. Among those facts and circumstances, the agreement specifically identifies the company’s substantial and ongoing cooperation with the investigation to date, including its disclosure of information regarding criminal antitrust violations involving drugs other than those identified in the criminal charge and the agreement. According to the agreement, this cooperation has allowed the United States to advance its investigation into criminal antitrust conspiracies among other manufacturers of generic pharmaceuticals. Other facts and circumstances identified in the agreement include: Heritage has agreed to resolve all civil claims relating to federal health care programs arising from its conduct; and a conviction (including a guilty plea) would likely result in the Office of the Inspector General of the Department of Health and Human Services imposing mandatory exclusion of Heritage from all federal health care programs under 42 U.S.C. § 1320a-7 for a period of at least five years, which would result in substantial consequences, including to American consumers. The agreement can ensure that integrity has been restored to Heritage’s operations and preserve its financial viability while preserving the United States’ ability to prosecute it should material breaches occur.
“Price fixing, bid rigging and market allocation promote an environment antithetical to free and open competition in the marketplace. When this occurs, the consumer is not guaranteed the best products at the lowest prices,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “The U.S. Postal Service spends hundreds of millions of dollars every year on health care associated costs, including expenses related to prescription drugs. Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
“The availability of generic medications should be a boon to the public, giving them access to proven drugs at lower prices,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “When generic pharmaceutical firms engage in price fixing and bid rigging in order to pad their profits, they not only disrupt the free market but do so on the backs of the folks who depend on these drugs. The FBI will continue to investigate and hold accountable companies engaged in such illegal and anticompetitive acts.”
In a separate civil resolution, Heritage has agreed to pay $7.1 million to resolve allegations under the False Claims Act related to the price-fixing conspiracy. The government alleged that between 2012 and 2015, Heritage paid and received remuneration through arrangements on price, supply, and allocation of customers with other pharmaceutical manufacturers for certain generic drugs in violation of the Anti-Kickback Statute, and that its sale of such drugs resulted in claims submitted to or purchases by federal healthcare programs. The drugs allegedly implicated in this scheme address a wide variety of health conditions, and include hydralazine, used to treat high blood pressure, theophylline, used to treat asthma and other respiratory problems, and glyburide.
“Price fixing of generic drugs harms federal health care programs and the beneficiaries those programs serve,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will use every tool at its disposal to hold generic drug manufacturers accountable for wrongdoing.”
“My Office is proud to announce both the civil healthcare fraud settlement with the Civil Division and the deferred prosecution agreement with the Antitrust Division,” said U.S. Attorney McSwain. “Price fixing and market allocation in generic drugs will not be tolerated, especially when such actions artificially inflate prices and negatively impact federal healthcare programs like Medicare and Medicaid. This resolution with Heritage is an important milestone, and my Office will continue to investigate and pursue illegal conduct regarding generic drugs.”
“Plotting to raise prices on generic medications is illegal and may result in patients’ inability to afford vital medicines,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. “Along with our law enforcement partners at the DOJ, FBI, and Postal-OIG, we will continue to investigate allegations of companies engaging in actions that put the public and the Medicare program at risk.”
The Anti-Kickback Statute prohibits companies from receiving or paying remuneration in return for arranging the sale or purchase of items such as drugs for which payment may be made by a federal health care program. These provisions are designed to ensure that the supply and price of health care items are not compromised by improper financial incentives. This settlement reflects the important role of the False Claims Act to ensure that the United States is fully compensated when it is the victim of kickbacks paid to further anticompetitive conduct.
The criminal charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the FBI’s Philadelphia Division, the FBI headquarters’ International Corruption Unit, the United States Postal Service Office of Inspector General, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Philadelphia Division at 215-418-4000.
The civil settlement was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Pennsylvania with support from the Department of Health and Human Services Office of the Inspector General, Defense Health Agency Program Integrity, and the Office of Inspector General for the Department of Veterans Affairs. Except for those facts admitted to in the deferred prosecution agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
Orlando Man Sentenced for Filing Fraudulent Immigration Documents That Resulted in More Than 300 Temporary Workers Fraudulently Entering the United StatesRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Marvin Mushia Smith (41, Orlando) to 10 months’ imprisonment for visa fraud. Smith had pleaded guilty on August 14, 2018.
According to court documents, in April 2017, members of Orlando’s Homeland Security +Investigation’s (HSI) Document and Benefit Fraud Task Force (DBFTF) identified numerous requests for abnormal numbers of alleged “required” foreign temporary nonagricultural workers, called “H-2B” visas. The task force linked all of these requests to Smith, a naturalized U.S. citizen, originally from Jamaica. Further investigation revealed that from at least as early as December 16, 2014, through March 15, 2018, Smith filed fraudulent labor certification packages and fraudulent immigration petitions with the Department of Labor (DOL) and/or U.S. Citizenship and Immigration Services (USCIS), which resulted in the admission of more than 300 nonimmigrants (H-2Bs), all from Jamaica.
The H-2B non-agricultural temporary worker program allows U.S. employers to bring foreign nationals to the United States to fill temporary non-agricultural jobs. To qualify for H-2B nonimmigrant classification, an application/petitioner (Smith, in this case) must establish that, amongst other things, there are not enough U.S. workers who are able, willing, qualified, and available to do the temporary work, and that employing H-2B workers will not adversely affect the wages and working conditions of similarly employed U.S. workers. There is a statutory numerical limit, or “cap,” on the total number of foreign nationals who may be issued an H-2B visa or otherwise granted H-2B status during a fiscal year. Currently, Congress has set the H-2B cap at 66,000 per fiscal year, with 33,000 for workers who begin employment in the first half of the fiscal year (October 1 - March 31) and 33,000 for workers who begin employment in the second half of the fiscal year (April 1 - September 30).
In his fraudulent submissions to DOL and USCIS, Smith claimed to have labor contracts with various hotels, construction companies, and/or landscaping businesses for temporary work in the United States. In reality, many of his H-2B petition packages used fake temporary employment contracts as supporting evidence to exhibit the need for the foreign workers in the United States. USCIS approved all 11 of Smith’s H-2B petitions, in large part, because of the fraudulent contracts supplied by Smith. Each of the approved petitions allowed Smith to bring in a different amount of alien workers. On average, each petition allowed him to bring in about 30 workers. Furthermore, law enforcement interviewed several of the H-2B workers admitted under Smith’s fraudulent H-2B packages and they said they had worked at different job sites and performed different duties than those indicated on the petitions.
“Foreign worker visa fraud can have serious national security, public safety, and economic consequences,” said HSI Orlando Assistant Special Agent in Charge David J. Pezzutti. “This case represents the importance of the HSI Document and Benefit Fraud Task Force’s continuing commitment toward protecting the integrity of the immigration system and preserving jobs for U.S. citizens and others lawfully authorized to work.”
“The Diplomatic Security Service is firmly committed to making sure that those who commit visa fraud face consequences for their criminal actions,” said Frederick Stolper, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service (DSS), Miami Field Office. “The strong relationship we have with the U.S. Attorney’s Office in the Middle District of Florida and other law enforcement agencies around the world is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”
This case was the culmination of the combined investigative efforts of HSI, DSS, DOL-Office of the Inspector General, Customs and Border Protection, and USCIS-Fraud Detection and National Security as a result of HSI’s Document and Benefit Fraud Task Force. HSI created the DBFTF to combat visa fraud and other similar crimes by building upon existing partnerships with other federal and state law enforcement investigators with document and benefit fraud expertise. It was prosecuted by Special Assistant U.S. Attorneys Brandon M. Bayliss and Christina R. Downes, both on assignment from the Office of the Principal Legal Advisor, ICE.
Oklahoma City Hospitals Agree to Pay $2.8 Million to Settle Allegations of Submitting False Claims to MedicaidRead the Press Release
OKLAHOMA CITY – OKLAHOMA HEART HOSPITAL, LLC, AND OKLAHOMA HEART HOSPITAL SOUTH, LLC, have agreed to pay $2,800,000 to settle civil claims stemming from allegations that they submitted false claims to Medicaid, announced First Assistant U.S. Attorney Robert J. Troester.
Oklahoma Heart Hospital, LLC, and Oklahoma Heart Hospital South, LLC (collectively "OHH") are limited liability companies organized in the State of Oklahoma. They own and operate the Oklahoma Heart Hospital and Oklahoma Heart Hospital South, which are located in Oklahoma City.
The United States and the State of Oklahoma allege that from January 1, 2010, through December 31, 2016, OHH caused false claims to be submitted to Medicaid for certain nonemergency prescheduled cardiovascular stent procedures under Diagnosis Related Group Codes 247 and 249. The claims were false because OHH billed the procedures as inpatient services to increase its revenue when the procedures should have been billed and reimbursed as outpatient services.
This $2.8 million settlement resolves part of the allegations filed in a lawsuit by a whistleblower who formerly worked for OHH. The lawsuit was filed in federal district court in Oklahoma City under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the government to intervene in the lawsuit. In this case, the government intervened in the allegations resolved by this settlement, which will provide funds to both the federal government and to the State of Oklahoma. The other allegations raised in the lawsuit will be dismissed as part of the settlement.
In reaching this settlement, OHH did not admit liability, and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and Offices of Investigations and Audit Services; FBI Oklahoma City; and the Oklahoma Attorney General’s Medicaid Fraud Control Unit. The case was prosecuted by Assistant United States Attorneys Scott Maule and Ronald R. Gallegos and by Assistant Oklahoma Attorney General Niki S. Batt.
O.C. Man Faces Federal Mail Fraud Charges for Allegedly Using over 200 Stolen Identities to Collect Unemployment InsuranceRead the Press Release
SANTA ANA, California – A Yorba Linda man who allegedly used more than 200 stolen identities to fraudulently collect nearly $600,000 in unemployment insurance benefits from the California Employment Development Department (EDD) was charged today with two counts of mail fraud.
Jeffrey Silhanek, 39, was named in a criminal information filed in United States District Court.
According to the information, Silhanek obtained stolen identities and used those names to open post office boxes. Silhanek then allegedly used the stolen identities and addresses to file unemployment insurance benefit claims, without the knowledge or permission of the identity theft victims. Silhanek represented that the claimants had been laid off and were entitled to unemployment insurance benefits. To ensure that he received the benefits, Silhanek instructed the EDD to send benefit checks and debit cards to the post office boxes he controlled.
As a result of the claims that Silhanek filed, the EDD suffered losses of at least $586,000.
The EDD is the administrator of the federally funded unemployment insurance benefit program for residents of the State of California.
Silhanek is scheduled to be arraigned in this case on July 8.
An information contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
This case is being investigated by the United States Department of Labor, Office of Inspector General.
This matter is being prosecuted by Assistant United States Attorney Daniel H. Ahn of the Santa Ana Branch Office.
Non-Citizen Convicted After Posing as Native-Born American for 10 YearsRead the Press Release
LAREDO, Texas – A 35-year-old Mexican National has admitted he made false statements in an application for U.S. Passport, announced U.S. Attorney Ryan K. Patrick.
Rigoberto Rivera had successfully applied for a U.S. passport in 2008, identifying him as a native-born United States citizen from Texas. It expired in 2018, after which he submitted a DS-82 U.S. Passport Renewal Application for Eligible Individuals by mail.
He used a birth certificate to support his claim of citizenship which stated a date of birth of April 5, 1984, in Laredo. However, law enforcement located a Mexican birth certificate that pre-dated this U.S. birth certificate, stating he was born in Nuevo Laredo, Tamaulipas, Mexico, on March 23, 1984.
Records further revealed that in May 2000, Rivera had applied for a visa as a Mexican citizen at the U.S. Consulate in Nuevo Laredo, Mexico. He was issued a border crossing card through this application and was fingerprinted and photographed. A subsequent comparison between the fingerprints taken in 2000 and the fingerprints taken in 2018 revealed a positive match to Rivera.
Rivera was arrested April 2, 2019. He subsequently admitted he was born in Mexico and that he had previously applied for a visa as a Mexican national. He claimed he used his Mexican birth certificate in the past to attend school in Mexico at a lower cost, but that he had used his U.S. birth certificate to pose as a native-born United States citizen since 2008.
Sentencing will be set at a later date before U.S. District Judge Diana Saldana. At that time, Rivera faces up to 10 years in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
He has been and will remain in custody pending his sentencing hearing.
Customs and Border Protection and Department of State - Diplomatic Security Service conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Mt. Vernon Man Sentenced to 8 Years in Prison for Four Armed Carjackings of CabsRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that SAMIR SULLIVAN, a/k/a “S,” was sentenced today to 96 months in prison for four separate armed carjackings of cabs in Mt. Vernon and the Bronx in November 2018. SULLIVAN pled guilty on January 28, 2019, before U.S. District Judge Cathy Seibel, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman stated: “Four hardworking cab drivers were simply doing their jobs when Samir Sullivan terrified them by pointing a gun at their heads. After threatening to shoot all four drivers and hitting one with his gun, Sullivan took their cabs, as well as their cash, wallets, and phones. Today’s lengthy sentence sends a message that this violent behavior will not be tolerated in this district.”
According to the allegations in the Complaint, the Information, and statements made during court proceedings:
In the middle of the night and early morning on November 25 and 29, 2018, Sullivan and his partner committed four armed carjackings of cabs in Mt. Vernon and the Bronx. To complete the carjackings, Sullivan pointed and held a gun at the heads of four scared cab drivers, pushed the gun against the sides of some of the drivers’ faces (at least one of whom pleaded for his life), demanded that the drivers give him everything they had, threatened to shoot if the drivers did not comply, threatened that he would kill one of the drivers, directed his partner to ransack the drivers’ pockets for cash, and hit the shoulders of one of drivers with the gun. In addition to the cabs, which he would drive away and abandon before finding his next victim, SULLIVAN took the drivers’ cash, wallets, phones, and a jacket.
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In addition to the prison term, SULLIVAN, 33, of Mt. Vernon, New York, was sentenced to three years of supervised release and ordered to forfeit the proceeds of the offenses and pay restitution to his victims.
Mr. Berman praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force and the Mount Vernon Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney David Felton is in charge of the prosecution.
More Than 140 Arrested During Five Month OperationRead the Press Release
BOSTON – After a five month operation, dubbed “Operation Triple Beam,” 146 individuals, including dozens of fugitives and 52 alleged gang members, wanted for violent crimes have been arrested in and around the City of Lawrence.
Led by the U.S. Marshals Massachusetts Fugitive Task Force, including the Lawrence Police Department and the Massachusetts State Police, Operation Triple Beam focused on violent offenders and gang members wanted for narcotics trafficking and other violent crimes. Since the Operation began on Jan. 1, 2019, 146 individuals who were wanted for various outstanding criminal offenses, including murder, narcotics trafficking, rape – including rape and sexual assault of children – kidnapping, and armed home invasions, have been arrested.
“Operation Triple Beam is a nationwide initiative in which federal resources are deployed to help state and local law enforcement round up dangerous fugitives living in our most vulnerable communities,” said United States Attorney Andrew E. Lelling. “Removing these fugitives, including alleged rapists, murderers, and drug traffickers, will make Lawrence and neighboring towns safer. Law-abiding residents of Lawrence should be able to live and work without fear. My thanks go to the U.S. Marshals Service, the Lawrence Police Department and the Massachusetts State Police, for executing this highly successful operation. This kind of coordinated enforcement effort not only reduces criminal activity, but is a reminder that increased enforcement is here to stay, at least until drug trafficking and other crime drops significantly in Lawrence and surrounding regions.”
“Operation Triple Beam was a targeted enforcement initiative by the U.S. Marshals Service to address violent crime, including guns, narcotics and gang violence in an effort to address violent crime in and around the City of Lawrence,” said United States Marshal John Gibbons for the District of Massachusetts. “Today’s announcement is the culmination of months of hard work and dedication to root out dangerous violent criminals and fugitives, bringing them to justice. We believe that these arrests will have a positive impact on the local community making the streets safer and improving the quality of life for the residents. We want to thank our partners in the Lawrence Police Department and the Massachusetts State Police for their cooperation and invaluable assistance.”
“Our Violent Fugitive Apprehension Section is an extremely active unit that, on a daily basis, tracks and arrests subjects of criminal warrants — to bring them to justice for their past violent crimes and to get them off Massachusetts streets before they can hurt another victim,” said Massachusetts State Police Colonel Kerry A. Gilpin. “Our unit frequently works with US Marshals and local police in concerted efforts to locate and arrest dangerous criminals, and was happy to do so again as part of the highly successful Operation Triple Beam.”
“I can’t thank the United States Marshals Service and the United States Attorney’s Office enough for their continued commitment here in Lawrence,” said Lawrence Police Chief Roy Vasque. “This latest extremely successful operation is yet another example of our strong partnership and our commitment to working together to make Lawrence safer. Let this be a strong message to all that criminals will not take refuge here.”
The men and women arrested during this operation have been charged in both state and federal courts.
Operation Triple Beam is a national effort led by U.S. Marshals Service Fugitive Task Forces around the country and aims at providing communities with immediate relief from gang-related violence by targeting fugitive gang members and the organizations responsible for committing violent crimes.
The Operation in Lawrence resulted in the seizure of eight pistols; one semi-automatic rifle; one 12-gauge shotgun; and more than two kilos of drugs, including cocaine, crack cocaine, fentanyl, heroin and marijuana.
U.S. Attorney Lelling; U.S. Marshal Gibbons; Colonel Gilpin; Chief Vasque; and Essex District Attorney Jonathan Blodgett made the announcement today.
Mexican National Sentenced for Illegal Reentry in East TexasRead the Press Release
BEAUMONT, Texas – A 48-year-old Mexican national illegally living in the Beaumont, Texas area, has been sentenced to prison for federal immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jose De Jesus Rocha-Perez pleaded guilty on Dec. 27, 2018 to illegal reentry by a previously deported alien and was sentenced to 27 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, in September 2018, Rocha-Perez was in the Jefferson County Jail in Beaumont Texas following his arrest for public intoxication when a records check by a deportation officer revealed that Rocha-Perez was in the country illegally. Rocha-Perez was interviewed and admitted to being a citizen of Mexico and illegally present in the United States.
Further investigation revealed Rocha-Perez had multiple felony convictions including illegal entry into the United States, illegal reentry into the United States, larceny, burglary, and assault. Rocha-Perez had also been deported from the United States on four separate occasions.
After completing his federal prison sentence, Rocha-Perez will be deported from the United States.
This case was investigated by the Department of Homeland Security Enforcement and Removal Operations (DHS-ERO) and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
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Mexican National Charged with Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RIGOBERTO FRANQUIS-HERNANDEZ, age 35, a citizen of Mexico, was charged yesterday in a one-count bill of information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the bill of information, RIGOBERTO FRANQUIS-HERNANDEZ reentered the United States on or about May 16, 2019, after having been previously removed therefrom on or about January 25, 2014.
If convicted, RIGOBERTO FRANQUIS-HERNANDEZ faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Manatee County Drug Trafficker Sentenced to More Than 13 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William Jung today sentenced Ryan Cotton (37, Manatee County) to 13 years and 4 months in federal prison for possessing with the intent to distribute 100 grams or more of heroin and fentanyl.
Cotton had pleaded guilty on February 22, 2019.
According to court documents, over a 15-day period in late September and early October 2017, Cotton engaged in $19,000 worth of narcotics transactions with a confidential informant. As a result of those transactions, law enforcement officers secured a search warrant for two properties associated with Cotton. During the execution of the search warrants, the officers seized heroin, fentanyl, $30,000, and a firearm.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Operation Hot Batch.” 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. The investigation was conducted by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Charlie D. Connally and Shauna H. Hale.
Man Sentenced to 36 Months in Prison for Sexually Abusing Four StrangersRead the Press Release
WASHINGTON – Santiago Rodriguez Campos, 34, a Mexican national who lived in Alexandria, Va., was sentenced today to 36 months in prison with three years supervised release and must register as a lifetime sex offender for sexually abusing four women, including two in 2016 and two in 2018, in NW, Washington, D.C., U.S. Attorney Jessie K. Liu announced.
Rodriguez Campos pled guilty in November 2018, in the Superior Court of the District of Columbia, to two counts of fourth-degree sexual abuse and two counts of misdemeanor sexual abuse. He was sentenced by the Honorable Juliet McKenna. As part of his sentence, Rodriguez Campos will be required to register for the rest of his life as a sex offender. Additionally, he will be subject to deportation proceedings following his prison term.
According to the government’s evidence, in the first offense, on Sept. 5, 2016, at about 10:30 p.m., the victim was walking on N Street NW to the 1200 block of Potomac Street NW when she first observed a man, later identified through forensic evidence as Rodriguez Campos. She reported that he was dressed in dark-colored clothing with a hood covering his head and face. The victim initially thought that she was about to be robbed. She began to walk up the steps to her door when Rodriguez Campos approached her from behind. He then reached between the back of her legs and ran his hand between her inner thighs, through her buttocks over her outer garment. The blue-jean pants that the victim was wearing were subsequently tested for DNA. Later DNA testing established that the perpetrator was Rodriguez Campos.
In the second offense, on Oct. 26, 2016 at approximately 8:15 p.m., the victim was walking to her car, which was parked in the 1600 block of 33rd Street NW. While she was walking, she observed a man, later identified through forensic evidence as Rodriguez Campos, wearing a grey hoodie covering his face. As he walked towards her, the victim stayed by a tree box and let Rodriguez Campos walk past. As soon as he walked past her, she turned her back and he reached under her dress from behind, between her legs, and grabbed her vagina. The victim immediately screamed at the defendant and began yelling for help. She stated she was either pushed or fell to the ground and while doing so, struck Rodriguez Campos with her elbow. He then ran away. The victim later observed what appeared to be lubricant left between her legs by the defendant. This substance was swabbed and recovered as evidence. DNA analysis was done on this evidence sample. Later DNA testing established that the perpetrator was Rodriguez Campos.
In the third offense, on May 31, 2018, the victim was walking home at approximately 10:10 p.m. when a man, later identified through forensic evidence as Rodriguez Campos, grabbed her neck, put his hand under her skirt, and touched her buttocks, vagina, and thighs. Rodriguez Campos also placed an unknown liquid on her legs. He then fled through the courtyard of a church she was standing in front of, located in the 2400 block of K Street NW. The victim turned over her underwear and skirt to law enforcement as evidence and it was tested for DNA. Later DNA testing established that the perpetrator was Rodriguez Campos.
In the fourth offense, on June 3, 2018, the victim was walking west in the 1500 block of P Street NW, when she was approached from behind by a man, later identified through forensic evidence as Rodriguez Campos. He reached under her dress and grabbed her left buttock, then reached in between her legs and touched her vagina. The victim felt a sticky substance transfer from Rodriguez Campos’s hand to an area under her dress. The victim’s underwear, dress, and swabs of her inner thighs were submitted for DNA analysis. Later DNA testing established that the perpetrator was Rodriguez Campos.
The defendant was apprehended on Aug. 9, 2018 and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of the Metropolitan Police Department, which investigated the case, and the District of Columbia Department of Forensic Sciences. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Lezlie Richardson and Tracey Hawkins and Paralegal Specialists T.J. McPhail and D’Yvonne Key.
Finally, she expressed appreciation for the work of Assistant U.S. Attorneys Stuart D. Allen and Ryan Creighton, who investigated and prosecuted the case.
Man Sentenced for Stealing Food Benefits CardsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Daniel Raudonis, 33, Madison, Wisconsin was sentenced Wednesday by U.S. District Judge James D. Peterson to three months confinement at a community correctional facility for theft of government funds. Daniel Raudonis pleaded guilty to these charges on April 3, 2019.
Daniel Raudonis and his wife Lindsey Raudonis were involved in a scheme to steal and use Quest cards that were in the possession of the Wisconsin Department of Health Services (WDHS). Quest cards are food benefits cards funded by the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program.
From October 2014 to November 2014, Daniel Raudonis used his status as a WDHS employee to steal the identities of homeless individuals and activate their Quest cards. Once activated, Daniel Raudonis provided the cards to Lindsey Raudonis who used them to purchase $2,972.34 worth of groceries at four different locations in Madison. On April 10, 2019, Lindsey Raudonis received a sentence of time served (44 days in jail) for her role in the scheme.
During sentencing, Judge Peterson highlighted that Daniel Raudonis abused his position of trust at WDHS. Judge Peterson specifically noted that Daniel Raudonis insulted law-abiding government employees and undermined the public’s trust in government programs.
The charges against Daniel and Lindsey Raudonis were the result of an investigation conducted by the Dane County Department of Human Services, Wisconsin Capitol Police, and the U.S. Department of Agriculture-Office of Inspector General. The prosecution of the case has been handled by Special Assistant U.S. Attorney Chadwick M. Elgersma.
Man Sentenced for Assault with a Dangerous Weapon on the Omaha Nation Indian ReservationRead the Press Release
United States Attorney Joe Kelly announced that Angelo Russell, an enrolled member of the Omaha Nation, was sentenced Friday, May 31, 2019, by United States District Judge Robert F. Rossiter to 60 months’ probation for assault with a dangerous weapon. He was also ordered to pay a $2,500 fine.
Russell, age 38, was at his home on the Omaha Nation Indian Reservation when a group of individuals entered his home without permission. After a verbal argument, Russell retrieved a gun as the individuals who entered his home fled in a vehicle. Russell got into his vehicle and pursued the individuals. After locating the individuals, Russell discharged a gun at the occupied vehicle. The vehicle was struck, but there were no injuries.
This case was investigated by the Omaha Nation Law Enforcement Services and the Federal Bureau of Investigation.
Man from Albuquerque Faces Federal Charges of Carjacking Two Vehicles at GunpointRead the Press Release
ALBUQUERQUE – Charles Chavez, 27, of Albuquerque, N.M., appeared in federal court today on a criminal complaint charging him with two counts of carjacking and two counts of brandishing a firearm during and in relation to a crime of violence.
According to the criminal complaint, Chavez rang the doorbell at a home in Albuquerque on January 8, 2019. He asked to use the telephone, but the resident who answered the door said no. Chavez then pointed a gun at the resident and demanded the keys to the resident’s truck.
Chavez then drove away in the truck and went to a gas station where he confronted a motorist who was pumping gas. Chavez pointed a rifle at the motorist and demanded the keys to the motorist’s truck. Chavez drove away in this second truck leaving behind the first truck he previously stole from the home.
Chavez then drove to a drive-thru ATM machine. He got out of the truck that he stole at the gas station and approached the occupants of another vehicle who were in the process of using the ATM. Chavez pointed a rifle at them and demanded money. Deputies from the Bernalillo County Sheriff’s Office saw Chavez committing this crime, approached him, and ordered him to surrender. Chavez ignored them and drove away in the truck he stole from the gas station, but crashed a short distance away. He tried to escape on foot, but deputies caught and arrested him.
Criminal complaints are only accusations. Defendants are presumed innocent until proven guilty. Chavez is currently in custody awaiting trial. He faces up to 15 years in prison for each of the carjacking offenses and consecutive sentences of 7 years to life in prison for each of the firearm offenses.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case with the Albuquerque Police Department and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven 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.
Luchese Soldier Convicted of Racketeering and Illegal Gambling OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EUGENE CASTELLE, a/k/a “Boobsie,” was found guilty of conspiracy to commit racketeering and operation of an illegal gambling business following a two-week trial before U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Geoffrey S. Berman said: “For years, Eugene Castelle used intimidation and threats of violence to line his pockets as a member of the Luchese Family of La Cosa Nostra. Castelle now stands convicted of serious federal crimes. Together with our law enforcement partners, we will continue to investigate and prosecute members of the Mafia.”
According to the allegations contained in the Indictment and the evidence presented in court during the trial:
Between 2012 and January 2018, CASTELLE acted as a soldier in the Luchese Family of La Cosa Nostra, often referred to as the Mafia. CASTELLE used his position in the Luchese Family to receive thousands of dollars, over multiple years, from a large-scale illegal sports betting business operating through off-shore websites in Costa Rica. CASTELLE protected the business from other members of the Mafia, used threats of violence to collect debts owed to the business, and extorted the bookmaker for annual payments of “tribute.” CASTELLE also committed other racketeering acts, such as holding a “no show” job as a carpenter at a construction project where he was paid a carpenter’s wages for many months without ever settting foot on the jobsite.
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CASTELLE, 59, of Staten Island, New York, was found guilty of one count of conspiracy to commit racketeering, which carries a maximum potential sentence of 20 years in prison, and one count of operation of an illegal gambling business, which carries a maximum potential sentence of five years. The jury acquitted CASTELLE of one count of attempted extortion. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence of the defendant will be determined by the judge. CASTELLE is scheduled to be sentenced by Judge Hellerstein on September 20, 2019.
Mr. Berman praised the outstanding investigative work of the Department of Homeland Security - Homeland Security Investigations, the Department of Labor, the Diplomatic Security Service, the Federal Bureau of Investigation, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York. Mr. Berman also thanked the Kings County District Attorney’s Office for their assistance in the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. The trial in this case was handled by Assistant United States Attorneys Hagan Scotten and Jacob R. Fiddelman.
Loranger Man Sentenced for Possessing Firearms as a FelonRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that yesterday United States District Judge Barry W. Ashe sentenced PHILLIP GUIDRY to 21 months of imprisonment, to be followed by three years of supervised release, for possessing firearms as a felon. Federal law prohibits individuals who have been convicted of certain crimes from possessing firearms.
GUIDRY, age 49, of Loranger, Louisiana was arrested on March 2, 2018 for possessing a firearm as a felon. Upon a search of his residence that same day, law enforcement found numerous firearms, including an automatic rifle without a serial number. GUIDRY plead guilty to a one count indictment of possessing a firearm as a felon on February 7, 2019.
This case was brought as part of Project Safe Neighborhoods (PSN) which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security, and the Louisiana State Police. The case was prosecuted by Assistant United States Attorney David Howard Sinkman.
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Leader of Trenton Drug Trafficking Conspiracy Admits Heroin Distribution and Firearms OffensesRead the Press Release
Second Defendant also Pleads Guilty to Distributing Multiple Controlled Substances as Part of Conspiracy
TRENTON, N.J. – A Trenton man today admitted his leadership role in a significant drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, and also admitted possessing firearms in furtherance of the drug conspiracy, U.S. Attorney Craig Carpenito announced today.
Jakir Taylor, a/k/a “Jak,” 28, pleaded guilty before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court to two counts of a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin (Count One), and possessing and conspiring to possess one or more firearms in furtherance of a drug trafficking crime (Count Seven).
Another member of the conspiracy, Alonzo Leary, a/k/a “J-Buck,” a/k/a “Buck,” 37, of Trenton, pleaded guilty May 30, 2019, before Judge Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute multiple controlled substances, including heroin, oxycodone, and alprazolam.
In October 2018, Taylor, Leary, and 24 other members of a drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. Taylor and others also were charged with additional firearms offenses. On April 11, 2019, a grand jury returned a nine-count superseding indictment charging Taylor and eight other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Of the 26 defendants charged in the criminal complaint, Taylor is the eighth defendant to plead guilty, and Leary is the ninth. The charges in the superseding indictment and the criminal complaint are currently pending against the 17 remaining defendants.
According to documents filed in this case and statements made in court:
From as early as October 2017 to October 2018, the defendants and others engaged in a large narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, whom they referred to as “Papi.” Intercepted communications between and among Taylor, Roberts, Antonio, and other conspirators revealed that Taylor and Roberts agreed to obtain from Antonio a “motherlode” supply of as many as 1,500 bricks – approximately 1.5 kilograms of heroin – in a single delivery. Taylor said that he intended to “flood the streets” of Trenton with this large supply. Taylor also admitted that he and his conspirators possessed at least one firearm to assist his drug trafficking operations, and on multiple occasions during the conspiracy Taylor actively sought to obtain additional firearms from other sources.
Intercepted telephone communications revealed that Leary participated in the drug trafficking as a close associate of Omar Council, Brian Phelps, Gary Ausmore, and other members of the conspiracy. These communications revealed that Leary participated in the conspiracy by distributing quantities of heroin, oxycodone, and alprazolam (commonly known as Xanax) to other narcotics dealers and end users.
The drug conspiracy count to which Taylor pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The firearms count to which Taylor pleaded guilty carries a statutory mandatory minimum term of five years in prison and a maximum potential penalty of life years in prison, and must be served consecutive to the sentence imposed on the drug conspiracy count. The drug conspiracy count to which Leary pleaded guilty carries a statutory maximum term of 20 years in prison and a maximum fine of $1 million. Taylor’s sentencing is scheduled for Oct. 1, 2019, and Leary’s sentencing is scheduled for Sept. 4, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s guilty pleas.
He also thanked officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the N.J. State Board of Parole for their assistance in the case.
The government is represented by Assistant U.S. Attorneys J. Brendan Day and Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: Taylor: Jerome A. Ballarotto Esq., Trenton
Leary: Robert B. Haney Esq., West Windsor, New JerseyLeader of Opioid Distribution Ring Sentenced to 15 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Paul Byron has sentenced Trevor John (39, Palm Bay) to 15 years and 8 months in federal prison for conspiracy to distribute oxycodone, hydromorphone, and heroin.
John had pleaded guilty on February 28, 2019.
According to court documents, Trevor John was the leader of a group that distributed thousands of opioid pills in in Cocoa, Florida, between May 2017 and September 2018. During the investigation, law enforcement officers made more than a dozen undercover purchases of opioid pills and intercepted hundreds of communications between John and other members of the conspiracy.
Marcus R. Anderson, Assistant Special Agent in Charge of the DEA Orlando’s District Office stated, “Confronting violent drug trafficking organizations that are distributing fentanyl, diverted pharmaceuticals, and the heroin that is fueling our region’s overdose epidemic is a top priority for the DEA and its law enforcement partners in this investigation: Brevard County Sheriff’s Office, Seminole County Sheriff’s Office, Orange County Sherriff’s Office, Apopka Police Department, Casselberry Police Department, Maitland Police Department, Orlando Police Department, Oviedo Police Department, and Winter Park Police Department.
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the Brevard County Sheriff’s Office, with assistance from the Cocoa Police Department, the Orlando Police Department, the Oviedo Police Department, the Maitland Police Department, the Seminole County Sheriff’s Office, the Winter Park Police Department, the Orange County Sheriff’s Office, the Casselberry Police Department, the Apopka Police Department, the Titusville Police Department, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Nathan W. Hill.
Las Vegas Man Sentenced to 168 Months in Prison for Participating in Large-Scale Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced that Edward Espejo, 45, formerly of Las Vegas, Nevada, was sentenced on Thursday to 168 months in prison for participating in a conspiracy to distribute methamphetamine.
According to court documents and statements made in court, from at least July of 2016 through May of 2018, Espejo supplied drug distributors in New Hampshire with shipments of methamphetamine ranging in size from a few ounces to more than 20 pounds at a time.
The investigation began in late 2016, when the DEA and the Postal Inspection Service began to see numerous parcels mailed from Las Vegas to New Hampshire that were suspected of containing methamphetamine. In addition, law enforcement officers began to investigate parcels mailed from New Hampshire to Las Vegas containing large amounts of money, as well as suspected drug payments made through money transfers from New Hampshire to Las Vegas.
Law enforcement agents eventually arrested several members of a methamphetamine distribution ring operating in New Hampshire, and traced the source of their drugs to Espejo. On May 8, 2018, investigators arrested Espejo at his residence in Las Vegas.
Several of the New Hampshire-based drug distributors supplied by Espejo already have been sentenced in federal court. These individuals include: (1) Brian Lacourse, who was sentenced to six years in prison on August 23, 2018; (2) Katrina Jones, who was sentenced to 200 months in prison on August 9, 2018; (3) Dustin Moss, who was sentenced to 25 years in prison on August 2, 2018; and (4) Sabrina Moss, who was sentenced to six years in prison on June 28, 2018.
Espejo previously pleaded guilty on August 31, 2018. Several co-conspirators were sentenced to prison terms. Michael Bean was sentenced to 120 months on April 19, 2019; John Kelekci was sentenced to 130 months on March 14, 2019;and Mark Moore was sentenced to 50 months in prison on May 6, 2019.
“This 14-year prison term serves notice that distributing methamphetamine in New Hampshire is a very costly enterprise,” said U.S. Attorney Murray. “This investigation and prosecution dismantled a network that was responsible for the distribution of large quantities of highly-pure methamphetamine. I am grateful to the law enforcement agents whose work successfully disrupted this ring of traffickers who were bringing a very dangerous drug into the Granite State.”
“Today’s sentencing should give fair warning that Postal Inspectors will investigate and bring to justice those individuals who traffic narcotics across state lines using the U.S. Mail,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “We will continue maximizing our agency’s resources to stop those who disregard our laws and smuggle drugs into our jurisdiction.”
This matter was investigated by the U.S. Postal Inspection Service and the DEA. The case was prosecuted by Assistant U.S. Attorney John Davis.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Lafayette Man Sentenced to 270 Months in Prison for Sexual Exploitation of A MinorRead the Press Release
HAMMOND –Kasey Ludberg, 27, of Lafayette, Indiana was sentenced by U.S. District Court Judge Philip P. Simon after pleading guilty to sexual exploitation of a child and receipt of child pornography, announced U.S. Attorney Kirsch.
Ludberg was sentenced to 270 months in prison followed by 5 years of supervised release.
According to documents in this case, in September 2017 Ludberg induced a young girl under the age of 12 to send him sexually explicit photographs via the internet. Ludberg also admitted to requesting sexually explicit photographs and videos from approximately 30 other minors and receiving such materials from at least 10 of those minors.
This case was investigated by the Federal Bureau of Investigation with assistance from the Onondaga Sheriff’s Department. The case was handled by Assistant U.S. Attorney Alexandra McTague.
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Kewaunee County Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on May 30, 2019, Sean R. Evansen (age: 36) of Algoma, Wisconsin, was sentenced to 9 years in federal prison by Chief District Judge William C. Griesbach.
Evansen, a registered sexual offender in the State of Wisconsin based on a Calumet County Circuit Court conviction for first-degree sexual assault of a child in 2000, possessed thousands of digital images and videos of child pornography, many depicting infants and toddlers.
In handing down the sentence, Chief Judge Griesbach noted the defendant’s prior record of sexual assault and emphasized the serious nature of the charge. He further stated his belief that a 9-year sentence served the interests of justice in this particular case. Following his release from prison, Evansen will spend 6 years on supervised release. He will continue to register as a sexual offender.
This case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation’s Internet Crimes Against Children (ICAC) Task Force, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Keshena Woman Indicted for Involuntary Manslaughter and Aggravated Assault on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on May 29, 2019, a federal grand jury returned a three-count indictment against a woman allegedly involved in a fatal motor vehicle accident in the Legend Lake area of the Menominee Indian Reservation. The indictment charged Erin Schweitzer, also known as Erin Martin (age: 39), of Keshena, which is located on the Menominee Indian Reservation, with Involuntary Manslaughter in violation of 18 U.S.C. 1112.
Schweitzer faces a maximum of 8 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release if convicted of this offense. The indictment also charged Schweitzer with two counts of Assault Resulting in Serious Bodily Injury in violation of 18 U.S.C. 113(a)(6). For each of these counts, Schweitzer faces a maximum of 10 years in prison, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on or about April 18, 2019, Schweitzer was allegedly operating a motor vehicle while under the influence of an intoxicant when her driving resulted in a 2-car accident that killed a passenger and seriously injured two other occupants in the other vehicle. Schweitzer is an enrolled member of the Menominee Indian Tribe of Wisconsin.
The Menominee Tribal Police Department, Wisconsin State Patrol, Wisconsin State Laboratory of Hygiene, and Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Kansas Hospital Agrees to Pay $250,000 to Settle False Claims Act AllegationsRead the Press Release
KANSAS CITY, KAN. – U.S. Attorney Stephen McAllister announced today that Coffey Health System has agreed to pay the U.S. government $250,000 to settle claims that it violated the False Claims Act.
Coffey Health System (“CHS”) operates a twenty-five bed critical access hospital located in Burlington, Kan. The United States alleged that Coffey Health System falsely attested that it conducted and/or reviewed security risk analyses in accordance with requirements under a federal incentive program for the reporting periods of 2012 and 2013.
The government contended that the hospital submitted false claims to the Medicare and Medicaid Programs pursuant the Electronic Health Records (EHR) Incentive Program. The American Recovery and Reinvestment Act of 2009 established the program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) offers incentive payments to healthcare providers that adopt certified EHR technology and meet certain requirements relating to their use of the technology. To obtain the payments, providers must attest that they satisfy applicable HHS-adopted criteria, including measures for analyzing and addressing security risks to electronic health records.
“Medicare and Medicaid beneficiaries expect that providers ensure the accuracy and security of their electronic health records,” said United States Attorney Stephen McAllister. “This office remains committed to protecting the federal health programs and to hold accountable those whose conduct results in improper payments.”
Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “Providers who fail to properly ensure the security of electronic health records must be held accountable.”
The settlement announced today resolves allegations in a lawsuit filed by Bashar Awad and Cynthia McKerrigan, in the United States District Court for the District of Kansas. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action; Awad and McKerrigan will receive approximately $50,000.
This matter was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the United States Attorney’s Office for the District of Kansas. The United States was represented by Assistant U.S. Attorney Jon Fleenor.
The case is captioned United States ex rel. Awad et al. v. Coffey Health System, 2:16-CV-03034 (D. Kan.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Jamestown Man Sentenced for His Role in Methamphetamine RingRead 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 Zakiel Fields, Jr., 24, of Jamestown, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of methamphetamine, and failure to appear after pre-trial release, was sentenced to serve 135 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Emmanuel Ulubiyo, Patricia Astorga, and Paul Parisi, who handled the case, stated that between March and November 6, 2017, the defendant conspired with others to distribute methamphetamine in the Jamestown area. On July 17 and September 21 2017, Fields sold methamphetamine to an individual working with the Drug Enforcement Administration.On November 6, 2017, investigators spotted the defendant and co-defendant Ernest Cauley, Jr. enter a residence on E. Summit Avenue in Lakewood, NY. A short time later, Fields and Cauley left the residence with Fields holding a white U.S. Postal Service Priority shipping box. After meeting up with another vehicle in the parking lot of a fast food restaurant, the two vehicles drove off but were quickly stopped by law enforcement officers and searched. Officers removed a brown fast food bag from one of the vehicles, which contained a black vacuum sealed bag which had already been torn open. The bag contained suspected methamphetamine. Officers also opened the U.S. Postal Service priority shipping box, which also contained suspected methamphetamine.
Fields was arrested, charged, and released on conditions, including electronic monitoring. On March 2, 2018, a United States Probation officer received a tamper alert relating to the defendant’s electronic monitoring device. Fields had cut off his ankle monitor and left it in the residence. The defendant and co-defendant Cauley were indicted and scheduled for an arraignment on the indictment on April 5, 2018, but Fields failed to appear until he was arrested on unrelated charges in California on July 13, 2018, and brought to appear in the Western District of New York on August 1, 2018.
Fields was charged along with 14 other defendants. He is the third defendant to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
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Jackson Man Sentenced to Federal Prison for Distributing Heroin and Fentanyl Causing Overdoses in Gibson and Madison CountiesRead the Press Release
Jackson, TN – A Jackson man has been sentenced to 80 months in federal prison for distributing between 100 and 400 grams of a heroin and fentanyl mixture to residents of Gibson and Madison Counties. This mixture caused at least two users to overdose, but survive. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, in early 2018, Stephen Thompson, 67, admitted that he distributed at least 100 grams or more of a mixture and substance that contained a detectable amount of heroin, that he knew that the substance was a mixture that contained a detectable amount of heroin and that he did distribute the mixture.
On April 16, 2018, a federal grand jury then returned an 8-count indictment against Thompson for distributing and possessing a heroin and fentanyl mixture. This mixture was being distributed to buyers from the Gibson and Madison County areas.
On March 1, 2019, Chief U.S. District Judge S. Thomas Anderson sentenced Thompson to federal prison for 80 months followed by 48 months of supervised release.
U.S. Attorney D. Michael Dunavant said, "Our nation, state, and district are suffering from the opioid epidemic, causing increases in drug trafficking, violence, addiction, and overdoses that are tearing families and communities apart. The U.S. Attorney’s Office has developed a district-specific strategy to prioritize and aggressively prosecute cases involving heroin and fentanyl distribution causing overdoses, and this case demonstrates the significant penalty that we will use to hold dealers accountable and deter others from selling poison to our citizens. We commend the outstanding investigative work of our federal, state, and local law enforcement partners, and we hope this sentence will send a strong message."
Deputy Director Johnie Carter of the West Tennessee Drug Task Force said, "If you think that you can run outside of our normal area of operation and hide in a big city and then sell drugs back into it, you really need to think again. We have state jurisdictional authority and we have forged strong partnerships with many amazing agencies such as the U.S. Attorney’s Office, Jackson-Metro Narcotics and the Tennessee Bureau of Investigation. We will find you and we will bring you to justice."
This case was investigated by the West Tennessee Violent Crime and Drug Task Force, Jackson-Madison County Metro Narcotics and the Tennessee Bureau of Investigation.
Assistant U.S. Attorney Hillary Parham prosecuted this case on behalf of the government.
If you have information about drug sales in the 28th Judicial District please contact the 28th Judicial District Drug Task Force at 731-784-0555. Caller I.D. is not used and callers can remain anonymous. You may also call Crime-Stoppers at 731-424-Tips.
The 28th Judicial Drug Task Force is comprised of officers assigned full-time from the Gibson, Crockett and Haywood County Sheriff’s Offices and the Humboldt, Milan and Trenton Police Departments.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 30 was:
Julian Tyler Baughman, 36, of Billings, on charges of possession with intent to distribute methamphetamine, prohibited person in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Baughman faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Baughman was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-63.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch and pleading not guilty on May 30 was:
Gage Lawrence Carnefix, 22, of Bozeman, on charges of distribution of child pornography, receipt of child porn and possession of child porn. If convicted of the most serious crime, Carnefix faces a minimum mandatory five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Carnefix was detained pending further proceedings. The case was investigated by Homeland Security Investigations, the Helena Police Department and the Montana Internet Crimes Against Children Task Force. Pacer case reference. 19-10.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illegal Alien Sentenced to Prison for Theft of U.S. Government FundsRead the Press Release
A woman who failed to disclose her husband’s income when applying for welfare benefits was sentenced today to two months in federal prison.
Cleotilde Puac-Gomez, age 46, a citizen of Guatemala illegally present in the United States and residing in Clarion, Iowa, received the prison term after a February 6, 2019, guilty plea to one count of theft of U.S. government funds.
In a plea agreement, Puac-Gomez, an illegal alien, admitted she failed to report her husband’s income when applying for, and receiving, Supplemental Nutrition Assistance Program (SNAP) and Medicaid benefits between June 2012 and November 2017. During that time period, her husband Melvin Rodriguez-Barrios, also an illegal alien, was working under an alias and used someone else’s social security number to obtain work. By failing to accurately report the family’s income, Puac-Gomez received $19,908.30 in overpayment of food stamps and other welfare benefits in funds belonging to the United States and distributed by the State of Iowa.
Rodriguez-Barrios, age 44, was sentenced on March 27, 2019, to six months’ imprisonment following a January 2, 2019, bench trial finding him guilty of three counts of unlawful use of an identification document and four counts of misuse of a social security number.
Puac-Gomez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Puac-Gomez was sentenced to two months’ imprisonment. She was ordered to make $19,908.30 in restitution to the State of Iowa. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Puac-Gomez is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Homeland Security Investigations, the United States Department of Agriculture, Office of Inspector General, and the Iowa Department of Inspections and Appeals Investigation Division - Economic Fraud Control Bureau.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3044.
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Hilliard Man Who Pretended to be Bounty Hunter & Federal Agent Sentenced to 15 Years in Prison for Kidnapping, Other CrimesRead the Press Release
COLUMBUS, Ohio – Shane Ryan Hammond, 27, of Hilliard, Ohio, was sentenced today in U.S. District Court to 15 years in prison and ordered to pay more than $48,000 restitution for impersonating a federal agent, kidnapping, wire fraud and interstate transportation of a stolen vehicle.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Michael B. Stewart, United States Attorney for the Southern District of West Virginia, and Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by U.S. District Judge Algenon L. Marbley.
According to court documents, from at least March 2016 until May 2017, Hammond owned and operated “Midwest Fugitive Task Force” located in Columbus. In this capacity, he was often referred to as Commander or Lieutenant Hammond and sought out employment opportunities as a bail recovery agent for himself and other employees.
Hammond was not actually licensed as a bounty hunter, nevertheless, on at least nine occasions, Hammond knowingly and unlawfully kidnapped a person for reward. All of these individuals but one were considered “bail skips” and Hammond had been hired by a bail bondsman in West Virginia to apprehend the individuals and return them to a designated jail facility for a monetary reward.
Hammond would often dress in an all-black tactical uniform with a black ballistic vest. He typically carried multiple handguns, throwing knives, a Taser and usually one or two law-enforcement-style badges with ‘SWAT’ shoulder patches and a large back patch reading ‘AGENT,’ but he was not a federal agent, or a law enforcement officer of any kind.
For example, in May 2017, Hammond kidnapped an individual outside of the individual’s grandmother’s home in Columbus. He pushed himself into the grandmother’s residence, heavily armed, and ran to the male individual with his AK47 up and pulled out his Taser (Hammond does not have any formal training with either of these weapons). He ordered the individual to the ground, kicked the individual’s drink and threatened the individual not to do “anything stupid” or he would get hurt.
As another example, when searching for a female in Canton, Ohio in September 2016, Hammond handcuffed the individual’s mother after forcibly entering the home and pointing a rifle at her. He indicated he was a Federal Bounty Hunter and told her she had the right to remain silent.
He then handcuffed the female’s father and said he was taking the father with him to help look for his daughter. Hammond reiterated that if the father did not go with him, he would take his wife to jail.
Hammond placed the handcuffed father into his vehicle and did not return him until the following morning – still in handcuffs. In fact, on the drive back, Hammond was pulled over for speeding and Hammond told the Trooper he was working for a federal agency.
Hammond routinely represented himself to others as a member of law enforcement, pretending to be a member of the FBI Joint Terrorism Task Force, working with Homeland Security, a SWAT officer and a federal agent, generally.
For example, in March 2017 in the Cincinnati area, Hammond told a female “you realize lying to a federal agent is a crime” and then, “don’t lie to a federal agent, that’s four years in jail.” He then added, “Don’t get an attitude. I’m just letting you know if I come back and I find out you’re involved I’m going to arrest you, you got me.” Making false statements to an official of the United States is actually a crime punishable by up to five years in prison.
In the same month, Hammond also visited an apartment complex in Jackson, Ohio and called one of the managers to explain that he had a warrant and was seeking a fugitive involved in the shooting of a Huntington, W.Va. police officer, although all of this statement was untrue. He told management he had called the Jackson Police and that the police would stay out of his way because he was a federal investigator and he knew what to do.
His false representations at the apartment complex led to the apartment management sharing H.U.D. files with Hammond and Hammond’s search of the apartment of an elderly female, to whom he identified himself as “Commander Hammond with the U.S. Government Fugitive Task Force.”
Hammond was charged by a Bill of Information in October 2017 and, in January 2018, failed to appear for his arraignment.
Through their efforts to locate Hammond, FBI agents uncovered additional criminal activity – namely, wire fraud and interstate transportation of a stolen vehicle.
Hammond devised a scheme to defraud investors of more than $48,000, telling investors he had secured a government contract for $79 million to provide physical security to the Norfolk Naval Base in Virginia. Hammond represented that he needed start-up money for the business and legal costs until he would receive the $79 million a few months later.
One investor also allowed Hammond to borrow his Chevrolet truck. Hammond then re-registered the truck into his own name, stole it and drove it to West Virginia, where he was later arrested.
He pleaded guilty in June 2018 to a Superseding Bill of Information, which included one count each of kidnapping, impersonating an agent of the United States and interstate transportation of a stolen vehicle, and two counts of wire fraud. Hammond also pleaded guilty to one additional count of kidnapping, as charged by the Southern District of West Virginia in a Bill of Information.
U.S. Attorney Glassman commended the investigation of this case by the FBI’s Joint Terrorism Task Force (JTTF) and Assistant United States Attorney Jessica W. Knight, who is representing the United States in this case.
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Heritage Pharmaceuticals Pays over $7 Million to Resolve Civil False Claims Act AllegationsRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain today announced that generic drug manufacturer Heritage Pharmaceuticals, Inc. will pay over $7 million in a civil settlement to resolve allegations of a scheme to fix prices and allocate customers for several of its drugs. The civil resolution of these allegations in the Eastern District is a component of the company’s larger resolution with the Department of Justice’s (DOJ) Antitrust Division and Civil Division.
This over $7 million civil healthcare fraud settlement resolves False Claims Act allegations that Heritage paid and received remuneration from other drug manufacturers between 2012 and 2015, and engaged in a scheme to artificially inflate and fix prices on certain generic drugs. These drugs were supplied to Medicare, Medicaid, and the Department of Defense’s TRICARE program beneficiaries, as well as the Department of Veterans Affairs. The drugs allegedly implicated in this scheme address a wide variety of health conditions, and include hydralazine, used to treat high blood pressure, theophylline, used to treat asthma and other respiratory problems, and glyburide, used to treat diabetes.
Separately, Heritage has entered into a three-year deferred prosecution agreement with the DOJ Antitrust Division with regard to a criminal charge that the company conspired to suppress and eliminate competition by allocating customers, rigging bids, and fixing and maintaining prices in violation of the Sherman Act. The deferred prosecution agreement was also filed in the Eastern District of Pennsylvania. Under the terms of the deferred prosecution agreement, Heritage will pay a $250,000 monetary penalty and will avoid prosecution if it complies with the terms and conditions of the agreement.
“My Office is proud to announce this important civil healthcare fraud settlement with the Civil Division, and the deferred prosecution agreement with the Antitrust Division,” said U.S. Attorney McSwain. “Price-fixing and market allocation in generic drugs will not be tolerated, especially when such actions artificially inflate prices and negatively impact federal healthcare programs like Medicare and Medicaid. This resolution with Heritage is an important milestone, and my Office will continue to investigate and pursue illegal conduct regarding generic drugs.”
“Consumers have the right to generic drugs sold at prices set by competition, not collusion,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Heritage and its co-conspirators cheated and exploited American patients to pad their bottom line. Today’s resolution—requiring an admission of guilt, a criminal penalty, and cooperation in the ongoing investigation—sends a clear message to generic pharmaceutical companies and their executives that this conduct will not be tolerated. The Division and its law enforcement partners, including the Federal Bureau of Investigation and United States Postal Service-Office of the Inspector General, will continue to hold companies and individuals accountable for collusion that undermines the integrity of the market for drugs that should be a less expensive alternative to brand name pharmaceuticals.”
“Plotting to raise prices on generic medications is illegal and may result in patients’ inability to afford vital medicines,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services (HHS-OIG). “Along with our law enforcement partners at the Department of Justice, the Federal Bureau of Investigation, and United States Postal Service-Office of the Inspector General, we will continue to investigate allegations of companies engaging in actions that put the public and the Medicare program at risk.”
The civil settlement was handled by the United States Attorney’s Office for the Eastern District of Pennsylvania and the Civil Division’s Commercial Litigation Branch, with support from HHS-OIG, Defense Health Agency Program Integrity, and the Office of Inspector General for the Department of Veterans Affairs. The investigation and settlement for the U.S. Attorney’s Office for the Eastern District of Pennsylvania were handled by Assistant U.S. Attorneys Landon Jones and Anthony Scicchitano.
The civil claims resolved by the settlement are allegations against Heritage only, and there has been no determination of liability.
Garrett Man Sentenced 84 Months in PrisonRead the Press Release
FORT WAYNE – Eric H. McHale, 42 years old, of Garrett, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to possessing with intent to distribute a controlled substance announced U.S. Attorney Kirsch.
McHale was sentenced to 84 months in prison followed by 4 years of supervised release.
According to documents in this case, on October 15, 2017, McHale possessed with intent to distribute 5 or more grams of methamphetamine.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives with assistance from the Ligonier Police Department, the Albion Police Department, the Noble County Sherriff’s Department, and the Indiana State Police. This case was prosecuted by Assistant U.S. Attorney Stacey R. Speith.
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Gang Member Pleads Guilty to Racketeering and Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Aaron Mack, aka Dean, aka Dean-O, 27, of Buffalo, NY, who was convicted of racketeering conspiracy and conspiracy to distribute, and possess with intent to distribute, heroin, cocaine, and crack cocaine, was sentenced to serve 72 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that the defendant was a member of the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operates primarily in the City of Buffalo at the Towne Gardens Housing Complex. The Towne Gardens served as a central hub for the gang with many members living within the housing complex, and many housing units used to store firearms and narcotics. Parking lots and business fronts adjacent to the Towne Gardens were utilized by members of the gang to distribute street level quantities of narcotics, including heroin, fentanyl, cocaine, crack cocaine, marijuana, and other drugs. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang.
Between 2010 and August 28, 2018, the defendant conspired with several gang members and associates to distribute illegal narcotics and commit assault. Specifically:
• On April 7, 2013, Mack and co-defendant Michael Walker possessed marijuana in a vehicle in Cheektowaga, NY; • On June 19, 2014, Mack and co-defendant Shawn Woods were in a vehicle at Swan and Hickory Streets in Buffalo, when they were stopped by the police. Mack was in possession of two plastic bags of crack cocaine; • On October 2, 2014, Mack and co-defendant Shawn Woods were in a vehicle on Spring Street in Buffalo, and were once again stopped by police. When Mack and Woods were placed in the back of a police vehicle, they dropped a bag containing cocaine on the floor of the police car; • On March 5, 2017, Mack was a passenger in a vehicle that was stopped by police. The defendant fled from the vehicle and threw a loaded 9mm pistol; and
• Between 2015 and 2016, Mack sold heroin to individuals in the Towne Gardens.
Mack was one of 13 defendants indicted in August 2018. Acts of violence allegedly committed by fellow gang members include two murders. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief David Zack; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
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Former St. Louis County Chief of Staff Pleads Guilty to Pay to Play SchemeRead the Press Release
St. Louis, MO – William Miller, 54, of Richmond Heights, pleaded guilty today to one count of aiding and abetting honest services wire fraud/bribery in front of U.S. District Court Judge Rodney W. Sippel.
According to court documents, Miller was hired as Chief of Staff by then County Executive Stenger during December, 2017, and was responsible for primarily assisting Stenger in managing the day to day operations of St. Louis County Government, and supervising Stenger’s Executive Staff. Stenger also appointed Miller to the Board of the St. Louis Economic Development Partnership during 2018. Stenger pled guilty on May 3, 2019 to 3 counts of honest services mail fraud/bribery relative to his scheme to defraud and deprive the citizens of St. Louis County of their right to his honest and faithful services, and the honest and faithful services of the St. Louis Economic Development Partnership’s Chief Executive Officer, through bribery and the concealment of material information. The purpose of the scheme was for Stenger to secretly use his official position to enrich himself through soliciting and accepting campaign contributions from individuals and their companies in exchange for favorable official action, and for individuals and their companies to enrich themselves and their companies by secretly obtaining favorable action for themselves and for their companies, through corrupt means.
The charge against Miller relates to his aiding and abetting Stenger’s criminal scheme specifically as it relates to Stenger, in exchange for campaign donations and fundraising activities, having taken official action to ensure that “Company One” and its principal owner obtained a 2019 state lobbying contract valued at approximately $200,000 from the St. Louis Economic Development Partnership. In aiding and abetting Stenger’s criminal scheme, Miller communicated with, and personally met with Sheila Sweeney, then the CEO of the St. Louis Economic Development Partnership, in order to persuade and ensure that Sweeney and the Partnership Board, of which Miller was a member, awarded the lobbying contract to Company One, over a second lobbying firm which had also bid on the lobbying contract. In taking such official action in aid of Stenger’s criminal scheme, Miller deprived the citizens of St. Louis County of their right to his honest services as the County’s Chief of Staff and as a member of the Board of the St. Louis Economic Development Partnership.
Today’s guilty plea is the result of an investigation that began during March 2018 and remains active and ongoing.
If convicted, the charge carries a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Steve Stenger, former St. Louis County Executive, pled guilty to related charges on May 3, 2019, and is scheduled to be sentenced on August 9, 2019.
Sheila Sweeney, former Chief Executive Officer of the St. Louis Economic Development Partnership, pled guilty to related charges on May 10, 2019 and sentencing scheduled for August 16, 2019.
John Rallo, principal owner of Cardinal Insurance, Cardinal Creative Consulting, and Wellston Holdings LLC, was indicted by a federal grand jury on related charges on May 9, 2019, and that case is pending before the court.
The Federal Bureau of Investigation and the Postal Inspection Service are investigating this case with the assistance of the Internal Revenue Service Criminal Investigations. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Former San Pablo Resident Sentenced to Two and A Half Years in Prison and Ordered to Pay More Than $1 Million for Filing False Tax ReturnsRead the Press Release
OAKLAND – Marcus Wilson was sentenced today to 30 months in prison and to pay $1,026,340 in restitution for filing false claims with the government, announced United States Attorney David L. Anderson and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Kareem Carter. The sentence was handed down by the Honorable Judge Jon S. Tigar, U.S. District Judge.
Wilson, 32, of Sacramento, pleaded guilty to the charge on January 31, 2019. According to his plea agreement, Wilson admitted that during 2011 and 2012 he filed numerous false tax returns on behalf of others. Wilson admitted he told people that they may qualify for “Obama Stimulus” or “Renter’s Rebates” if they had not filed any tax return in a given year. In reliance on his representations, the individuals provided Wilson with information sufficient for him to file a tax return on their behalf. Nevertheless, the individuals generally did not provide any financial or other tax-related information; instead, Wilson falsified information regarding the individuals’ wage and business income so he could obtain refunds from the IRS. Wilson admitted he caused the IRS to fund over $1 million worth of refunds to numerous individuals for tax year 2011 by presenting tax returns he knew contained false information.
A federal grand jury indicted Wilson on January 17, 2017. He was charged with one count of conspiracy to file false claims, in violation of 18 U.S.C. § 286; five counts of filing false claims, in violation of 18 U.S.C. § 287; five counts of wire fraud, in violation of 18 U.S.C. § 1343; and five counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Wilson pleaded guilty to one count of filing a false claim and the remaining counts were dismissed.
In addition to the prison term, Judge Tigar ordered Wilson to serve a 36 month term of supervised release. Wilson will begin serving his prison term in July, 2019.
Assistant U.S. Attorneys Robert Rees and Meredith Osborn are prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the IRS-CI.
Former Horsham Pastor Charged with Multiple Child Exploitation OffensesRead the Press Release
PHILADELPHIA — U.S. Attorney William McSwain announced today that Jerry Zweitzig, 71, of Hatboro, Pennsylvania was charged by Indictment with multiple counts of child exploitation offenses, including enticing a minor to engage in illicit sexual conduct and possession of child pornography, according to federal authorities. The defendant is the former pastor of Horsham Bible Church on Upland Avenue in Horsham.
“Child exploitation is a pervasive problem – made more so by the accessibility of the internet and digital media – that demands an aggressive response,” said U.S. Attorney McSwain. “The allegations in this case are particularly disturbing due to the defendant’s history as a spiritual leader in a position of community trust. We stand ready with our federal and local partners to identify and prosecute those who would prey upon minor children.”
“Crimes against children are disgraceful and unacceptable,” said Marlon V. Miller, special agent in charge of HSI Philadelphia. “HSI will continue working with our partners to aggressively investigate cases in which child predators use the internet to further exploit children within our community, and around the world.”
If convicted, the defendant faces a maximum possible sentence of 170 years imprisonment, a minimum mandatory term of 15 years, 5 years of supervised release, and a $1,500,000, fine.
The case was investigated by Homeland Security Investigations and the Horsham Police Department, and is being prosecuted by Assistant United States Attorney Eric L. Gibson.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Border Patrol Agent Sentenced to Prison for Trafficking in Fentanyl Precursor and Sea CucumberRead the Press Release
Assistant U.S. Attorneys Melanie K. Pierson (619) 546-7976 or Sherri Hobson (619) 961-0287
NEWS RELEASE SUMMARY – May 31, 2019
SAN DIEGO – Former U.S. Border Patrol Agent Cesar Daleo was sentenced in federal court yesterday to 30 months in prison for conspiring to distribute a controlled substance that is used to make deadly fentanyl, and 24 months for conspiring to smuggle a protected species of sea cucumber. The sentences will run concurrently.
In the sea cucumber case, U.S. District Court Judge Gonzalo P. Curiel found that the defendant paid another individual to smuggle bags of dried sea cucumber (Isostichopus fuscus) into the United States from Mexico on at least 80 occasions between the fall of 2014 and the fall of 2016. The court also found that the value of the sea cucumber that Daleo helped to smuggle exceeded $250,000.
Isostichopus fuscus is the only species of sea cucumber found in Mexico that is protected under the Convention on International Trade in Endangered Species (CITES). In order to legally import fuscus, a CITES certificate issued by the country of origin (in this case, Mexico) must be presented at the time of importation. Isostichopus fuscus is prized in Asian communities for use in soup, based on it supposed medical properties.
In the drug case, the defendant admitted in his plea agreement that he conspired to distribute a controlled substance, known as 4-anilino-N-phenethyl-4-piperidine (4ANPP),” which is the immediate precursor or the primary ingredient for manufacturing deadly fentanyl.
Daleo was arrested on August 29, 2017, while trying to drive into Mexico with a package that he believed contained 4ANPP (4-anilino-N-phenethyl-4-piperidine), a Schedule II Controlled Substance. According to court records, Daleo had just picked up the package, shipped from China, at a post office box in San Ysidro. He had previously picked up 13 other packages from the same post office box.
Unbeknownst to Daleo, a few weeks earlier on August 11, 2017, a U.S. Customs and Border Protection agent stationed at Los Angeles International Airport had intercepted a package from China and discovered it contained 4ANPP. Homeland Security Investigations agents then replaced the 4ANPP with a harmless substance and waited for someone to pick it up at its destination in San Ysidro, California. When Daleo did so, and then headed to Mexico, he was intercepted by law enforcement before crossing the border. As part of his plea, the defendant admitted in court that there was an agreement to distribute 4ANPP and that he joined the agreement knowing its purpose and intending to help accomplish that purpose.
He also admitted that the parcels contained a substance that could be used to manufacture more illegal drugs. One kilogram of precursor 4ANPP, the amount seized on August 11, 2017, is enough manufacture approximately 25 kilograms of fentanyl in a Mexican drug lab.
“This is a fitting sentence for a former law enforcement agent who knew the dangers of drugs like fentanyl, yet did not hesitate to hand them out, for a price,” said U.S. Attorney Robert Brewer. “Now it is he who will pay a price for distributing a drug that destroys lives, families and communities.”
DEFENDANT
Cesar Daleo Age: 49 Chula Vista, California
SUMMARY OF CHARGES
Criminal Case No. 18cr2968-GPC
Conspiracy, 18 U.S.C. § 371
Maximum penalty: Five years in prison, $250,000 fine or twice the gross gain or loss caused by the offense; restitution; forfeiture of proceeds generated from the crime
Criminal Case No. 17cr3-41-GPC
Conspiracy to Distribute a Controlled Substance, 21 U.S.C. §§ 846 and 841
Maximum penalty: Twenty years in prison, $500,000 fine
AGENCIES
U.S. Fish and Wildlife Service, Office of Law Enforcement
National Oceanic and Atmospheric Administration, Office of Law Enforcement
Homeland Security Investigations
Customs and Border Protection
U.S. Postal Inspection Service
U.S. Drug Enforcement Administration
Former Baltimore Police Sergeant Pleads Guilty to Conspiracy to Deprive Civil Rights for Assisting a Member of the Baltimore Police Gun Trace Task Force by Planting a Gun at the Scene of an ArrestRead the Press Release
Baltimore, Maryland – Former Baltimore Police Sergeant Keith Allen Gladstone, age 51, of New Park, Pennsylvania, pleaded guilty today to conspiracy to deprive civil rights, in connection with planting evidence at a crime scene. As part of his plea, Gladstone also admitted that he told a witness to lie about the event if questioned by law enforcement.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.
“Prosecuting criminals who work in police agencies is essential both to protect our communities and to support the many honorable officers whose reputations they unfairly tarnish,” said U.S. Attorney Robert K. Hur.
Keith Allen Gladstone joined the Baltimore Police Department (BPD) as an officer on November 20, 1992, and was promoted to Sergeant on December 16, 2011. Gladstone retired from the BPD on December 25, 2012, but was subsequently reinstated as a Sergeant on December 9, 2013. In March 2014, Gladstone was the officer-in-charge of a Special Enforcement Section (SES) unit assigned to BPD’s Western District. Gladstone retired from the BPD for a second time on May 1, 2017.
According his plea agreement, on the evening of March 26, 2014, Gladstone, who was on duty, was having dinner with Officer 1 when he received a call on his cell phone from a sergeant in the BPD who was in a panic because he had just run over an arrestee, D.S., in the front yard of a home in Northeast Baltimore. Gladstone obtained a BB gun from another officer, then drove with Officer 1 to the site of D.S.’s arrest on Anntana Avenue and Belair Road in Northeast Baltimore City. Gladstone admitted that he dropped the BB gun near a pickup truck where D.S. lay injured on the ground. Gladstone told the sergeant, in Officer 3’s presence, “it’s over by the truck,” or words to that effect. The BB gun was then seen by another BPD officer and ultimately recovered by the BPD’s crime lab unit. Based on a false statement of probable cause written by the sergeant in another officer’s name, D.S. was subsequently charged in Maryland state court with possession, use, and discharge of a gas or pellet gun, for the BB gun that Gladstone planted at the scene of D.S.’s arrest, and a number of drug offenses. D.S. was detained on those charges until at least April 2, 2014. On January 16, 2015, the charges were disposed of by nolle prosequi, which is a form of dismissal.
As a result of his actions, Gladstone conspired to deprive D.S. of his liberty without the due process of law, and conspired to commit offenses against the United States, specifically to impede, obstruct, and influence an investigation.
As detailed in his plea agreement, after the sergeant and six other officers who had been members of the GTTF were arrested on federal racketeering charges, Gladstone and Officer 1 arranged to meet in person. Gladstone arranged for the meeting to take place in a swimming pool, to ensure that Officer 1 was not wearing a recording device. Gladstone admitted that during the meeting, he told Officer 1 that if questioned by federal law enforcement about the events on March 26, 2014, Officer 1 should tell federal investigators that Gladstone and Officer 1 were at the crime scene for “scene security,” which Officer 1 knew was not true. Gladstone also told Officer 1 to tell law enforcement that Gladstone had gotten the BB gun from his trunk, which was also not true, since Gladstone and Officer 1 had obtained the gun from another officer.
Gladstone faces a maximum sentence of 10 years in prison for conspiracy to violate civil rights. U.S. District Judge Catherine C. Blake has scheduled sentencing for September 13, 2019, at 9:15 a.m.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting the case.
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Former Army Corps Employee Charged with Lying to Law EnforcementRead the Press Release
A former employee of the United States Army Corps of Engineers was charged with making false, material statements to law enforcement agents.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Colonel Andrew D. Kelly, Jr., U.S. Army Corps of Engineers, John F. Khin, Special Agent in Charge, Department of Defense Criminal Investigative Service (DCIS), Miami Field Office, Casey Oravetz, Assistant Special Agent in Charge, National Oceanographic and Atmospheric Administration, Andres Castro, Special Agent in Charge, Environmental Protection Agency Criminal Investigations Division, Atlanta Area Office, and Frank Robey, Director, U.S. Army Criminal Investigative Command, made the announcement.
Tracey Jordan Sellers, 49, of Duval County, was charged by information with count of making a false official statement, in violation of 18 U.S.C. § 1001(a)(2). If convicted, Sellers faces a maximum statutory sentence of five years in prison.
According to the allegations in the information, the defendant was a civilian employee of the U.S. Army Corps of Engineers. Federal ethics laws and regulations prohibit federal employees from engaging in outside employment that conflicts with employees’ official duties. The information alleges that, during an interview with federal law enforcement agents, Sellers made material false statements about her performance of part-time work outside the scope of her official responsibilities for a consulting company which has ongoing business with the Army Corps. Sellers no longer works for the Army Corps.
Ms. Fajardo Orshan commended the investigative efforts of the Defense Criminal Investigative Services, National Oceanographic and Atmospheric Administration, Environmental Protection Agency Criminal Enforcement Division, and the U.S. Army Criminal Investigative Command and the cooperation of the U.S. Army Corps of Engineers. This case is being handled by Assistant U.S. Attorney Jaime Raich.
An information is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
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 on http://pacer.flsd.uscourts.gov.