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Friday 12 April 2019
Fort Thompson Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on April 1, 2019, by U.S. District Judge Roberto A. Lange.
Rain Blaine, age 19, was sentenced to 33 months in federal prison, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Blaine was indicted by a federal grand jury on August 14, 2018. He pled guilty on January 8, 2019.
The conviction stemmed from an incident on June 24, 2018, when Blaine became upset with an individual during a conversation and stabbed the victim in the abdomen. Blaine then dropped the knife and began to physically assault the victim with his hands and feet. The victim had to be airlifted to Sioux Falls, where he was treated for his injuries.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Blaine was immediately turned over to the custody of the U.S. Marshals Service.
Fort Thompson Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Benjamin Big Eagle, a/k/a Benji Big Eagle, age 32, was indicted on November 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 4, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning no later than on or about January 1, 2017, and continuing to on or about November 14, 2018, Big Eagle knowingly and intentionally conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine.
The charge is merely an accusation and Big Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Big Eagle was released on bond pending trial. A trial date has been set for May 28, 2019.
Former Venezuelan Official Hugo Armando Carvajal Barrios Arrested in Spain in Connection with Drug-Trafficking ChargeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Christopher T. Tersigni, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), today announced that former Venezuelan official Hugo Armando Carvajal Barrios, a/k/a “El Pollo,” was arrested today in Madrid, Spain, based on an Interpol Notice related to the charge filed in Indictment 11 Cr. 205 in the Southern District of New York. The Indictment charges Carvajal with participating in a conspiracy to import cocaine into the United States, including a 5.6-ton shipment of cocaine transported from Venezuela to Mexico in April 2006.[1] The U.S. Attorney’s Office for the Southern District of New York plans to seek the extradition of Carvajal Barrios from Spain.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Hugo Armando Carvajal Barrios, a former high-ranking official of Venezuelan military intelligence, allegedly conspired with others to traffic more than five tons of cocaine into the United States since at least 2006. Barrios’s arrest exemplifies this Office’s resolve to bring those who contribute to the illicit global drug trade to justice. No matter the rank or level of influence of an individual, we will continue to pursue and prosecute those who bring deadly drugs into this country in a U.S. court of law.”
Special Agent in Charge Christopher T. Tersigni said: “Today’s arrest of Hugo Armando Carvajal Barrios is yet another example of DEA’s commitment to stemming the flow of dangerous illicit drugs into our country. Despite his status as a former government official in Venezuela, Carvajal Barrios is not above the law. The DEA is grateful to our international partners for their efforts in helping to bring this drug-trafficker to justice.
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Carvajal Barrios, 56, a Venezuelan national residing in Venezuela, among other places, is charged with conspiring to import cocaine into the United States. If convicted, Carvajal Barrios faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit and Miami Field Division, Homeland Security Investigations, the U.S. Treasury Department Office of Foreign Assets Control, and the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Amanda L. Houle, and Matthew J. Laroche, with assistance from Adam Fels of the U.S. Attorney’s Office for the Southern District of Florida.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Union Executive Officer Charged with EmbezzlementRead the Press Release
HONOLULU – Charles Kimo Brown, 60, a resident of Mililani, Hawaii, was charged yesterday in a federal indictment with two counts of embezzling from a union and two counts of making false entries in the books and records of a union.
The indictment alleges that, from in or around December 2009 through April 2014, Brown was an executive officer of the Hawaii Longshore Division (the "Longshore Division"), which is a labor organization headquartered in Honolulu, Hawaii. The Longshore Division is an autonomous division of the International Longshore and Warehouse Union Local 142. The Longshore Division represents approximately 1,000 stevedores throughout the State of Hawaii. As the Secretary-Treasurer of the Longshore Division, Brown was responsible for the union’s financial matters, among other duties. Compensation for his work came directly from Longshore Division funds in lieu of wages that he would have received from his regular employer. These payments were known as lost time wages. Brown consistently inflated his lost time hours on the weekly vouchers that he signed and submitted for payment from the Longshore Division.
Each embezzlement charge in the indictment carries a maximum term of five years imprisonment, and each false entry charge carries a maximum term of one year imprisonment. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Department of Labor, Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S Attorney Rebecca A. Perlmutter for the District of Hawaii.
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Former State Senator, Businessman Sentenced for Bank Fraud, Tax CrimesRead the Press Release
PROVIDENCE, RI – Former Rhode Island state senator and businessman James E. Doyle, II, 47, of Pawtucket, was sentenced today to 24 months in federal prison for engaging in a $74 million dollar check-kiting scheme in which he wrote tens of thousands of worthless checks, and failed to report more than $1 million dollars in income and pay taxes to the IRS, announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Doyle pleaded guilty on September 28, 2018, to thirty-one counts of bank fraud and one count each of filing a false tax return and failing to file a tax return. At the time of his guilty plea Doyle admitted that as owner of Doyle Respiratory, LLC and Doyle Sleep Solutions, LLC, he engaged in criminal conduct during which $74 million dollars in worthless bank transactions were executed in check-kiting schemes through bank accounts he controlled at three banks. Doyle admitted that he executed the schemes through the use of checks, cash withdrawals, ATM electronic transfers and ACH transfer payments.
Doyle also admitted that for tax years 2013 thru 2016 he and his wife failed to report to the IRS more than $1 million dollars in income and failed to pay $305,426 in taxes due the IRS.
At sentencing, U.S. District Court Chief Judge William E. Smith sentenced Doyle to 3 years supervised release upon completion of his term of incarceration and ordered Doyle to pay restitution totaling $426,707.25 to Santander Bank and Alliance Blackstone Valley Federal Credit Union.
United States Attorney Aaron L. Weisman commented, “As so well articulated by Chief Judge Smith, an incarcerative sentence of 24 months is most appropriate considering the damage Mr. Doyle’s actions, in defrauding three banks of almost half a million dollars, has done to erode the people’s trust in their public officials.”
At the time of his guilty plea, Doyle admitted to the Court that he accomplished the check-kiting schemes by writing checks from accounts he knew were not backed by sufficient funds and depositing those checks into different accounts to cover daily overdrafts. Simultaneously, he wrote checks out of the second bank account and deposited those checks back into the first account. The purpose and effect of writing and depositing these worthless checks was to manipulate the numerical balances in the checking accounts, and thereby create the false and fraudulent appearance that the accounts had sufficient available funds in the accounts and to deceive and trick the banks into honoring the checks drawn against the checking accounts with insufficient funds.
Doyle executed the scheme on a daily basis, at times undertaking in excess of 50 transactions per day, included the utilization of ATMs in order to lengthen the time it took for checks to be presented for clearing. The investigation revealed that over the life of the scheme the defendant wrote tens of thousands of worthless checks.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
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Flathead County man sentenced for illegal possession of machine gunRead the Press Release
MISSOULA—Flathead County resident Bruce Boone Wann was sentenced to four years in prison and three years of supervised release today after he admitted to illegally possessing a machine gun and other weapons crimes, U.S. Attorney Kurt Alme said.
Wann, 62, of Kila, pleaded guilty in December to illegally possessing a machine gun, an unregistered silencer, a short barreled rifle and a destructive device, specifically, a grenade.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecution evidence showed that during an investigation that began in June, law enforcement learned that Wann had kept buried or hidden firearms, ammunition, a grenade, dynamite, and other items on various properties in the Marion area. Wann claimed he had stolen some of the items from a government bunker in California many years earlier.
Wann later broke into a Flathead County residence where he had previously arranged for a number of his other firearms to be stored. Wann then took not only his firearms, but also stole other firearms that did not belong to him. Investigators also learned Wann had made various threats of violence against people in Flathead County.
Assistant U.S. Attorney Tara Elliott and Taryn Meeks, a trial attorney with the National Security Division of the U.S. Department of Justice, prosecuted the case. The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Secret Service and Flathead County Sheriff’s Office.
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Five Defendants Charged in White Plains Federal Court with Narcotics Trafficking in Dutchess CountyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an indictment yesterday charging five defendants with allegedly engaging in the distribution of cocaine and cocaine base throughout the Southern District of New York. All five defendants were taken into federal custody on April 10 and April 11, 2019. The defendants were presented in White Plains federal court yesterday before United States Magistrate Paul E. Davison. This case is assigned to U.S. District Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “Our Office is committed to targeting, arresting, and prosecuting criminals that peddle addictive and dangerous drugs to our community. Thankfully, our law enforcement partners are just as dedicated to this important cause.”
FBI Assistant Director William F. Sweeney Jr. said: “The insidious spread of potentially deadly, illegal drugs harms the small towns outside of the city in the same way it harms the big city. No one is immune to the crime and violence that accompanies the drug trade. The FBI Hudson Valley Safe Streets Task Force would like to thank all the dedicated law enforcement agencies who took part in this and other investigations for their work in making our communities safer.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From at least in or about 2016 up to and including in or about October 2018, in the Southern District of New York and elsewhere, RONALD MILLER, a/k/a “Solo,” JASON PARADIES, FRANK NESBITT, a/k/a “Nitty” COREY WEBB, and KIYON WEBB, conspired to distribute five kilograms and more of cocaine and 280 grams of cocaine base.
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The defendants RONALD MILLER, a/k/a “Solo,” JASON PARADIES, FRANK NESBITT, a/k/a “Nitty” COREY WEBB, and KIYON WEBB, face a maximum term of life in prison, and a mandatory term of 10 years in prison.
A chart containing the names of the defendants who were arrested and charged yesterday, and the charges and maximum penalties they face, is attached.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Berman praised the outstanding investigative work of the FBI Hudson Valley Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York State Police, the Dutchess County Sheriff’s Office, the City of Poughkeepsie Police Department, and the City of Kingston Police Department.
These case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Samuel L. Raymond and Courtney Heavey are in charge of the prosecutions.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Feds Charge Two in Connection to Hopkinsville CarjackingRead the Press Release
PADUCAH, Ky. – Two Clarksville, Tennessee men have been charged by a federal Grand Jury this week in a five count indictment tied to a February 18, 2019, carjacking, announced United States Attorney Russell M. Coleman.
“Violent crimes such as this armed carjacking and shooting of a peace officer, which is being dealt with in state court, will not be tolerated in our Commonwealth,” said U.S. Attorney Russell Coleman. “My thanks to the fine men and women of Kentucky law enforcement who risk their lives daily to protect our families.”
According to the five count indictment, returned on Tuesday, April 9, 2019, Keith A. Kuzyk and Anthony J. Johnson have both been charged with carjacking a 2011 Chevrolet Tahoe on February 18, 2019 in Christian County, Kentucky.
The Grand Jury also charged Kuzyk with the use, carry and discharge of a Bersa, model Thunder 380 Plus, .380 AUTO semiautomatic pistol, during the carjacking. Johnson is also charged with the use, carry and brandish of a Spike’s Tactical, model ST15, multi (5.56 millimeter/.223) semiautomatic rifle, during and in relation to a crime of violence.
Kuzyk faces two additional charges; both for being a felon in possession of a firearm. The Clarksville, TN, man, was previously convicted of Aggravated Assault and Evading Arrest, Theft over $1,000, and First Degree Possession of a Controlled Substance (methamphetamine); all felonies.
The charge of carjacking carries a term of imprisonment of no more than 15 years; the use, carry and discharge of a firearm in relation to a crime of violence carries a term of imprisonment of no less than 10 years and no more than life; the use carry and brandish of a firearm in relation to a crime of violence carries a term of imprisonment of no less than 7 years and no more than life; being a felon in possession of a firearm carries a term of imprisonment of no more than 10 years unless there are three qualifying convictions, in that case the penalty is a mandatory minimum 15 years and no more than life in prison.
This case is being prosecuted by Assistant United States Attorney Seth Hancock, and is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Federal Bureau of Investigation (FBI); Kentucky State Police; Hopkinsville Police Department; Christian County Sheriff’s Office; Hopkinsville/Christian County Violent Crime Task Force; Clarksville Police Department; and Montgomery County Sheriff’s Office.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Federal collaboration produced real time results, 360 month sentence for production, transportation & possession of child pornRead the Press Release
LOUISVILLE, Ky. – United States District Judge Rebecca Grady Jennings has sentenced Andrew Paul Schmidt to 360 months, followed by lifetime of supervised release, after he pleaded guilty in October 2018 to five counts of production of child pornography by a parent, 10 counts of transportation of child pornography, and one count of possession of child pornography, announced United States Attorney Russell M. Coleman.
"This just punishment for human nature at its worst, and it’s a result of law enforcement at its best,” said U.S. Attorney Russell Coleman. “Potential jurisdictional and bureaucratic obstacles all evaporated when an imminent risk to a child appeared. I’m grateful for the professionalism and dedication to duty of FBI Special Agents Mark Coleman and Stephen Keary and prosecutors Josh Judd and Greta Ellis in this successful effort to protect our kids.”
“We have no greater duty than to protect the most vulnerable among us – our children,” said FBI Louisville Special Agent in Charge James Robert Brown, Jr. “Those who wish to harm our children and think they are acting anonymously on the Internet are simply wrong. I can assure you, the FBI and our law enforcement partners will relentlessly pursue those who produce, distribute, and possess child pornography, and they will be held accountable.
The investigation, arrest, and prosecution of Schmidt is demonstrative of the close working relationship between the Federal Bureau of Investigation (FBI), the U.S. Army Criminal Investigation Division (CID), and the United States Attorney’s Office (USAO).
According to the evidence before the Court, on December 4, 2017, Schmidt utilized KiK messenger to communicate with an individual online, which unbeknownst to Schmidt, was an undercover employee of Federal Bureau of Investigation (FBI). During the course of the online conversation, Schmidt sent the undercover employee pornographic images of a family member, and discussed the sexual activity he had and wished to perpetrate on her.
An examination of Schmidt’s cell phone revealed pornographic images of an 11-month-old baby, produced by Schmidt. Images of Schmidt’s daughter were also found to have been sent by him to another KiK user. Several other pornographic images not produced by Schmidt were also found on his phone.
A federal grand jury indicted Schmidt on six counts on December 20, 2017, and returned a superseding indictment with additional charges on March 21, 2018. Schmidt pleaded guilty to all charges on October 4, 2018.
Assistant United States Attorney Joshua Judd and United States Army Captain Greta M. Ellis, Special Assistant United States Attorney, prosecuted the case. The FBI conducted the investigation, with assistance from the U.S. Army CID.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
Federal Investigation into Lincoln Hills School ClosedRead the Press Release
MADISON, WIS. - The U.S. Attorney’s Office for the Western District of Wisconsin and the Civil Rights Division of the U.S. Department of Justice announced today that the federal criminal investigation of alleged civil rights violations at Lincoln Hills School (LHS) has concluded, after finding insufficient evidence to prove federal criminal civil rights charges against LHS staff members.
The U.S. Attorney’s Office and the Civil Rights Division, together with the Federal Bureau of Investigation, conducted a comprehensive investigation into allegations that LHS staff members used unreasonable force against incarcerated youths on multiple occasions. As part of this investigation, a team of experienced civil rights prosecutors and federal agents conducted interviews of civilians and law enforcement witnesses, and reviewed materials and evidence generated during the course of the prior State investigations, including video footage, physical evidence, medical reports, and youth, employee, and law enforcement statements. Federal authorities also reviewed the Wisconsin Department of Corrections and Lincoln Hills School policies and procedures in place at the time, and Lincoln Hills School staff training and employment records.
To prove a violation of federal criminal civil rights laws, prosecutors must be able to prove that the involved staff members willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden under federal law. Federal prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the staff member acted with the deliberate and specific intent to do something the law forbids. In this instance, there was insufficient evidence to establish beyond a reasonable doubt a violation of the federal criminal civil rights statutes.
The U.S. Attorney’s Office and the Civil Rights Division remain committed to investigating allegations of excessive force by those acting under color of law and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely.
Federal Authorities to Seek the Death Penalty Against William WoodRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Grant C. Jaquith and John Devito, Special Agent in Charge of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, announced today that United States Attorney General William Barr has authorized and directed the United States Attorney’s Office in Syracuse to pursue the death penalty against William D. Wood, Jr.
Wood, 33, of Syracuse, New York, was indicted by a federal grand jury February 14, 2019 for crimes resulting from the September 15, 2018 armed robbery of Chili’s Bar and Grill in Dewitt, and the murders of two employees committed during the course of that robbery. While charges contained in that indictment carry a maximum sentence of death, the death penalty may only be pursued if authorized by the Attorney General. Following Attorney General Barr’s authorization today, a Notice of Intent to Pursue the Death Penalty was filed by the United States Attorney’s Office.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The case against Wood is being investigated by United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Town of Dewitt Police Department, the New York State Police, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
Former CEO Convicted of Defrauding Food and Drug Administration and Distributing Adulterated DrugsRead the Press Release
WASHINGTON – A jury yesterday convicted Paul J. Elmer, the former CEO and owner of Pharmakon Pharmaceuticals Inc. (Pharmakon), of conspiracy to defraud the Food and Drug Administration (FDA) and nine counts of adulterating drugs, the Department of Justice announced today. Pharmakon was a Noblesville, Indiana, drug compounding facility.
The verdict came after an eight-day trial before U.S. District Judge James R. Sweeney II in Indianapolis, Indiana.
Elmer, 67, formerly a licensed pharmacist and a resident of Fishers, Indiana, was charged by grand jury in a superseding indictment on Feb. 7, 2019. The superseding indictment charged that, from 2013 to 2016, Elmer and Caprice R. Bearden, Pharmakon’s former director of compliance, caused Pharmakon ─ which compounded sterile, intravenous drugs ─ to distribute approximately 70 lots of over- and under-potent drugs to military and civilian hospitals throughout the country.
“As these convictions show, the Department of Justice takes very seriously conduct that unlawfully undermines the safety of compounded drugs,” said Assistant Attorney General Jody Hunt of the Civil Division. “We will not tolerate actions that impede the FDA’s efforts to ensure the safety of products. With its law enforcement partners, the Department of Justice will thoroughly investigate and prosecute those who knowingly prevent the FDA from protecting patients and ensuring compounded drugs are safe.”
“The jury’s findings in this case resonate with citizens of every age,” said Josh J. Minkler, United States Attorney. “Specifically, hospitals and patients from every walk of life rely on the integrity of pharmaceutical manufacturers like Pharmakon to make safe drugs. This defendant prioritized profit over safety and the jury’s verdict demonstrates the government’s resolve to protect our citizens. Good pharmaceutical manufacturers who work with the FDA achieve that goal.”
“Producing unsafe drugs puts patients at risk and is particularly concerning when they reach already vulnerable populations such as premature infants. This conviction demonstrates that those, including drug compounders, who distribute harmful drugs will be held accountable under the law,” said Director Catherine A. Hermsen, FDA Office of Criminal Investigations. “The FDA continues to play an important role in protecting patients—including young children—and we will continue to work with our law enforcement partners to pursue and bring to justice those who place profits before the health of U.S. patients.”
“When drug compounders disregard safety standards and violate the law, patient health can be put at significant risk. In this case, we saw unacceptable behavior from the defendant whose company distributed dangerous products that led to serious adverse events in infants,” said Stacy Amin, FDA Chief Counsel. “The FDA is fully committed to working with the Department of Justice to stop these bad actors and protect patients from potential public health risks.”
Bearden pleaded guilty to all the charges in the original indictment on Nov. 21, 2017. Her sentencing date has not been scheduled.
Evidence at Elmer’s trial showed that, from 2013 to 2016, Pharmakon routinely shipped compounded drugs at Elmer’s direction to customers without having received laboratory test results that verified the drugs were the strength they were supposed to be. Furthermore, evidence showed that, despite receiving test results showing potency failures, Elmer did not recall the drugs, notify the customer, notify the FDA of the potency failures, or conduct any root cause investigation to determine the cause of the failure.
FDA consumer safety officers testified about two inspections of Pharmakon they conducted in 2014. One inspection was prompted by Pharmakon’s distribution of 200 percent potent midazolam, a sedative that was used to treat premature infants, to an Indianapolis hospital. They observed numerous violations of FDA regulations during each inspection, and informed Elmer. But former Pharmakon employees testified that Elmer and Bearden misled and interfered with these first two FDA inspections, in order to prevent the FDA from knowing about the potency failures as well as other aspects of the business. Former employees also testified that certain changes in process that Elmer and Bearden told the FDA Pharmakon would enact, never happened.
According to evidence at trial, in February 2016, the multiple potency failures culminated in Pharmakon’s distribution of 2,460 percent super potent morphine sulfate, an opioid pain medication, to hospitals in Indianapolis and Chicago. Nurses at the Indianapolis hospital administered the morphine, not knowing that it was 2,460 percent super potent, to infants in the pediatric unit. Three infants suffered adverse effects from the narcotic overdose. One infant needed to be revived through the administration of Naloxone (commonly known as Narcan) and sent by helicopter to a nearby hospital with a neo-natal intensive care unit. These adverse events led to a final FDA inspection in which FDA consumer safety officers testified that they discovered evidence of multiple previous potency failures that had been concealed by Bearden during the first two inspections. Former employees testified that Elmer and Bearden misled and interfered with this final FDA inspection as well.
Elmer was convicted of one felony count of conspiracy to defraud the FDA and to obstruct FDA inspections, carrying a maximum punishment of five years in prison and a fine of up to $250,000. He was also convicted of three misdemeanor counts of introducing adulterated drugs into interstate commerce and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Each of the adulteration counts is punishable by up to one year in prison and a fine of $100,000.
Elmer’s sentencing date has not been scheduled.
Assistant Attorney General Jody Hunt and U.S. Attorney Minkler commended the FDA’s Office of Criminal Investigations, which conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Cindy J. Cho of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Department’s Consumer Protection Branch and, with assistance from Paul Joseph of the FDA’s Office of Chief Counsel.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.
Estill County Man Sentenced to 240 Months for Armed Fentanyl TraffickingRead the Press Release
LEXINGTON, Ky. — Kevin Scott Abney, 40, of Irvine, Kentucky, was sentenced Friday, to 240 months in federal prison, by United States District Judge Danny C. Reeves, for possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon.
In June 2018, officers with the Berea Police Department arrested Abney at a business in Berea, Kentucky. During the arrest, officers located 15 grams of fentanyl and two firearms. During his guilty plea, Abney admitted to possessing of the fentanyl and firearms. Abney has seven prior felony convictions, including four crimes of violence, which qualified him as an Armed Career Criminal.
Under federal law, Abney must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for 5 years.
“The defendant’s lengthy criminal history, coupled with his intent to distribute the deadly drug fentanyl while armed, led to his twenty-year sentence,” stated United States Attorney Robert M. Duncan, Jr. “This sentence should send a message: armed drug trafficking has serious consequences and our Office will continue to make prosecution of these cases a core priority. Because of the good work of law enforcement, an armed, dangerous, and repeat offender has been held accountable for his criminal conduct, and our community is safer.”
“ATF is committed to reducing gun violence in our neighborhoods by arresting violent offenders who unlawfully possess firearms,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “Today’s sentencing of an armed career criminal, is the result of an ongoing commitment by ATF to work with our law enforcement partners to make our communities safer for everyone.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge of the ATF Louisville Field Division; and David Gregory, Chief of the Berea Police Department, jointly made the announcement.
The ATF and the Berea Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
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 PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Essex County, New Jersey, Man Admits Conspiracy to Commit Healthcare FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a conspiracy to submit false and fraudulent insurance claims for out-of-network chiropractic services that were never performed, U.S. Attorney Craig Carpenito announced.
Keasam Johnson, 35, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of conspiracy to commit healthcare fraud.
According to the documents filed in this case and statements made in court:
Johnson worked as a supervisor in the New Jersey office of a large telecommunications company until August 2017. A co-defendant Tiffany Marsh, 41, of West Orange, was a medical biller and the owner and operator of TJB Medical Billing Consultants LLC, through which she provided medical billing to health care providers, including two New Jersey chiropractors. Marsh and Johonson were charged June 26, 2018 with one count each of conspiracy to commit healthcare fraud.
Johnson and other conspirators submitted false and fraudulent insurance claims for out-of-network chiropractic services that were never performed. Marsh allegedly used her access to the billing software at the chiropractor offices to generate the fraudulent claims. Johnson recruited telecommunications company employees to participate in the scheme. The fraudulent claims resulted in the payment of reimbursements to conspirators in exchange for a portion of the proceeds.
The charge of conspiracy to commit health care fraud carries a maximum sentence of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 24, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office’s OCDETF/Narcotics Unit.
The pending charge and allegations against Marsh are merely accusations, and she is presumed innocent unless and until proven guilty.
East Stroudsburg Man Sentenced to 46 Months’ in Prison for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 11, 2019, United States District Court Judge A. Richard Caputo sentenced Warren Williams, age 25, of East Stroudsburg, Pennsylvania, to 46 months’ imprisonment for drug trafficking.
According to United States Attorney David J. Freed, Williams distributed over 100 grams of heroin (100 grams of heroin equates to approximately 4,000 individual doses) over a five-month period starting in January 2016, in Monroe County, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation, the Stroud Area Regional Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Eagle Butte Woman Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine and Maintaining a Drug Involved Premises.
TaLonna Bear Eagle, a/k/a TaLonna LeRae Dupris, age 24, was indicted on March 12, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 5, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $5,000,000 fine, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown but no later than on or about April 24, 2018, and continuing through March 12, 2019, Bear Eagle conspired with others to distribute 50 grams or more of methamphetamine and maintained a place for the purpose of distributing methamphetamine.
The charges are merely accusations and Bear Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Bear Eagle was released on bond. A trial date has not been set.
Eagle Butte Man Found Guilty on Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that Waylon Young Bird, 49, of Eagle Butte, South Dakota, was found guilty of Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance as a result of a two-day federal jury trial in Pierre, South Dakota.
The conviction carries a mandatory minimum of 10 years up to life in prison and an $11,000,000 fine, a mandatory minimum of 5 years up to life of supervised release once released from prison, and $200 to the Federal Crime Victims Fund.
Young Bird was indicted by a federal grand jury on May 15, 2018.
The jury found that from January 1, 2016 until May 15, 2018, Young Bird had knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute and possess with the intent to distribute over 500 grams of methamphetamine, which is a Schedule II controlled substance on, the Cheyenne River Indian Reservation. The Jury also convicted Young Bird of knowingly and intentionally possessing with the intent to distribute a detectable amount of methamphetamine from a March 9, 2018, traffic stop. During this stop, Young Bird was found to have just under 10 grams of methamphetamine hidden in his sock in eight little baggies. Also found during the stop were 74 unused baggies, a straw fashioned into a scoop and a spoon.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for May 16, 2019. The defendant was remanded to the custody of the U.S. Marshals Service.
Dominican National Pleads Guilty to Misusing Social Security Number and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to false representation of a Social Security number and theft of public money.
Noemi Mejia, 51, pleaded guilty to false representation of a Social Security number and theft of public money. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 16, 2019. Mejia was charged in May 2018 and released on conditions.
In August 2001, Mejia applied to participate in the Department of Housing and Urban Development’s Section 8 Program, which is administered by the Boston Housing Authority, using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico. By falsely claiming that she was a U.S. citizen, Mejia was deemed eligible to receive Section 8 benefits. Mejia also applied for MassHealth benefits using the identity of a Puerto Rican citizen, which rendered her eligible for more expansive healthcare coverage. Mejia also used the stolen identity to obtain a Massachusetts driver’s license and to work.
While receiving benefits under the stolen identity, Mejia applied for and received additional Section 8 housing vouchers and Food Stamps using her true name. She received these benefits on behalf of her daughter, who is a United States citizen. The amount of the benefits received under these programs is determined, in part, by household income. Because Mejia did not report the income she earned using the stolen identity, she fraudulently received Section 8 benefits and Food Stamps in her true name.
In total, Mejia stole more than $164,000 in federally-funded housing assistance benefits, MassHealth benefits, and Food Stamps.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Delaware County Attorney Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dory L. Sater, age 44, of Drexel Hill, Pennsylvania, was indicted on April 2, 2019, by a federal grand jury for attempted bank fraud and aggravated identity theft charges. The indictment was unsealed today following Sater’s arrest and initial appearance.
According to United States Attorney David J. Freed, the indictment alleges that from August 3, 2017 and continuing to on or about March 21, 2018, in Luzerne County, Sater executed a scheme to defraud Fidelity Bank by filing a fraudulent satisfaction piece for a $50,000 mortgage. The indictment also alleges that in doing so, Sater used another person’s means of identification.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charge carries a mandatory, consecutive two-year term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Darknet Drug Vendor Sentenced to 10 Years in PrisonRead the Press Release
SAN FRANCISCO – Brian Gutierrez-Villasenor was sentenced today to 120 months in prison for possessing with the intent to distribute methamphetamine and transporting funds to promote unlawful activity announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin, and U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez. The sentence was handed down by the Honorable Susan Illston, U.S. Senior District Judge.
Gutierrez-Villasenor, 27, of San Francisco, pleaded guilty to the charges on November 13, 2018. According to his guilty plea, between 2014 and May of 2018, Gutierrez-Villasenor distributed cocaine and methamphetamine for a Darknet vendor site called JetSetLife. JetSetLife operated on multiple Darknet marketplaces and used encryption technology to avoid interception and monitoring of its communications and transactions. Gutierrez-Villasenor admitted that he provided his contact information to the operators of JetSetLife so they could wire him money from abroad to promote drug distribution. Gutierrez-Villasenor delivered requested drug types and quantities to JetSetLife customers by mailing the drugs through the U.S. Postal Service. For example, on March 23, 2015, an individual in Australia sent Gutierrez-Villasenor a $5,160 wire transfer to distribute drugs for JetSetLife. Gutierrez-Villasenor retrieved the payment in San Francisco and used the money to buy drugs and supplies to fulfill JetSetLife customer orders, and to pay himself for distributing the drugs. Gutierrez-Villasenor admitted that between October 2014 and April 2018, he received over $575,000 to distribute drugs for JetSetLife.
On September 17, 2018, Gutierrez-Villasenor was charged by information with one count of possessing with intent to distribute over 50 grams of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)(viii), and one count of transporting monetary instruments or funds to promote unlawful activity, in violation of 18 U.S.C. §§ 1956(a)(2)(A) and 2. Gutierrez-Villasenor pleaded guilty to both counts.
In addition to the prison term, Judge Illston also ordered Gutierrez-Villasenor to pay a $40,000 fine and to serve an additional five-year term of supervised release to begin after his prison term. Gutierrez-Villasenor has been in custody since his arrest on May 17, 2018, and will begin serving his sentence immediately.
This prosecution was the result of a coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. The extensive operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:
- Federal arrests of more than 30 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
- Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
- Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
- Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
- Seizure of more than $3.6 million in U.S. currency and gold bars;
- Seizure of nearly 2,000 Bitcoins and other virtual currencies, with an approximate value of more than $20 million;
- Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
- Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.
Additional information on the operation can be obtained here.
Assistant U.S. Attorney Helen Gilbert is prosecuting the case with the assistance of Andy Ding. The prosecution is the result of an investigation by the DEA, FBI, HSI, and USPIS. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Cumberland County, New Jersey, Man Convicted of Three Armed Bank Robberies and Related ChargesRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was convicted today for his role in three armed bank robberies and related charges, U.S. Attorney Craig Carpenito announced.
Stephan Byrd, 44, of Vineland, New Jersey, was convicted following a two-week trial before U.S. District Judge Robert B. Kugler in Camden federal court on three counts of bank robbery; two counts of using and brandishing a firearm in furtherance of bank robbery; one count of using and discharging a firearm in furtherance of bank robbery; and one count of being a felon in possession of a firearm. The jury deliberated for approximately six hours before returning the verdicts.
According to documents filed in this case and the evidence at trial:
On June 7, 2014, Byrd entered the Ocean City Home Bank in Mays Landing, New Jersey, armed with a gun. He approached the bank teller counter, pointed his gun at bank employees, warned them not to push the panic alarm button, and ultimately stole $5,576. Byrd fled the scene through the nearby woods.
On July 19, 2014, Byrd entered the Newfield National Bank in Vineland, New Jersey, with Charles Sanders, who pleaded guilty previously to his role in the crime. Both Byrd and Sanders were armed with guns and covered up from head to toe. Sanders remained in the lobby of the bank while Byrd vaulted the bank counters to gain access to the bank tellers and cash drawers. Byrd pointed his gun at various bank employees and stole $10,297 from the bank drawers, after which he and Sanders fled through the nearby woods. The money contained dye packs, which exploded during Byrd’s and Sanders’ escape.
On July 21, 2014, Byrd entered the Newfield National Bank in Malaga, New Jersey, armed with a gun and covered up from head to toe. Byrd vaulted the bank counters to gain access to the teller drawers, pointed his gun at the bank tellers, stole $6,139, and ran into the nearby woods. After Byrd ran into the woods, a bank customer attempted to follow him in order to get identifying information. When Byrd noticed that he was being followed, he pointed his gun at the customer and fired a shot in the customer’s direction. Byrd then fled the scene.
Based on today’s convictions, Byrd faces a combined mandatory minimum sentence of 24 years in prison and a potential maximum sentence of life in prison. Each of the seven counts is also punishable by a fine of up to $250,000. Sentencing is scheduled for July 18, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers with the Vineland Police Department, under the direction of Chief Rudy Beu; and officers with the Hamilton Township Police Department, under the direction of Chief Stacy V. Tappeiner, with the investigation leading to today’s guilty verdict. U.S. Attorney Carpenito also thanked the officers of the North Brunswick Police Department, the FBI’s Philadelphia Division, and forensic scientists with N.J. State Police Office of Forensic Sciences and Ballistics Laboratory for their assistance in the case.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Jason Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Troy Archie Esq., Camden
Council Bluffs Man Functions as Methamphetamine Trafficking Cell for Mexico-based Drug Trafficking, Sentenced to Imprisonment for Fourteen YearsRead the Press Release
United States Attorney Joe Kelly announced that United States District Judge Robert F. Rossiter, Jr., sentenced Carlos Manriquez-Aviles today to a term of imprisonment of 168 months, to be served in the U.S. Bureau of Prisons. Manriquez, 29 years old, of Council Bluffs, Iowa, pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine, Use of Facilities in Interstate Commerce in Aid of Racketeering, and Conspiracy to Commit Money Laundering.
In 2017, Manriquez distributed multi-pound quantities of methamphetamine in the Omaha/Council Bluffs metropolitan area and laundered drug proceeds through a Wells Fargo Bank account on behalf of Mexican drug traffickers.
The case was primarily investigated by the Omaha Field Division of the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations.
Convicted Felon Sentenced to 30 Months in Prison for StalkingRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DESMOND GEORGE DANIAL, 51, to 30 months in prison for interstate stalking. DANIAL, who pleaded guilty on November 8, 2018, was sentenced today before Senior Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, between August 5, 2014, and March 20, 2018, DANIAL repeatedly harassed and threatened his victim, her husband and her family. In 2012, DANIAL was charged and convicted of stalking in Stearns County, Minnesota, and a restraining order was filed against DANIAL preluding him from having contact with the victim. In August 2014, even after the victim left Minnesota and moved to Wyoming, DANIAL continued his harassment by repeatedly sending threatening text messages and emails, including threats of violence, to both the victim and her husband. DANIAL also harassed and threatened the victim’s parents who lived in Bemidji, Minnesota.
This case was the result of an investigation conducted by the Beltrami County Sheriff’s Office with assistance from the FBI Headwaters Safe Trails Task Force.
This case was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
DESMOND GEORGE DANIAL, 51
City of residence unknown
Convicted:
- Interstate stalking, 1 count
Sentenced:
- 30 months in prison
- Three years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Columbus Man Pleads Guilty to Murdering Potential WitnessesRead the Press Release
COLUMBUS, Ohio – Antwan L. Hutchinson, 27, of Columbus, pleaded guilty in U.S. District Court to murdering two potential witnesses and conspiring to distribute narcotics.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and Interim Columbus Police Chief Thomas Quinlan announced the pleas entered into before U.S. District Judge Michael H. Watson.
Hutchinson and Michael J. Favors, 26, also of Columbus, were indicted in April 2017 and charged with conspiracy to distribute and possess with intent to distribute controlled substances and murdering two potential witnesses.
According to court documents, Hutchinson led a drug trafficking organization and possessed and distributed cocaine, heroin, oxycodone and marijuana. As part of the drug conspiracy, he and Favors used “trap houses” that were in others’ names as locations to store and sell the drugs. This included using threat of force and using the homes of drug-addicted individuals.
Hutchinson also intimidated, assaulted, threatened and tortured individuals with serious physical harm who were perceived as owing money or drugs to the members of the conspiracy. Further, he tortured and killed individuals who were seen as potential witnesses against the members of the conspiracy.
As part of his plea, Hutchinson admitted he intentionally killed Sidney Campbell and Marie Stamp in February 2017 because they were perceived as potential witnesses against the defendants.
Hutchinson also beat and tortured Cody Campbell in February 2017. Hutchinson used a two-by-four to beat and extension cords to whip Campbell, who died hours after the incident.
Pursuant to the murder charges to which Hutchinson pleaded, the defendant must be sentenced to life imprisonment without the possibility of release.
“As the result of the pleas entered today, Antwan Hutchinson will spend the rest of his life behind bars without the chance of release,” said. U.S. Attorney Glassman. “That’s a just punishment for his crimes. And I hope it provides a sense of closure for the victims’ families.
Hutchinson was indicted federally two months after murdering witnesses. His conviction cannot be appealed and should illustrate that people who kill witnesses will be met not only with justice, but with swift justice.”
U.S. Attorney Glassman commended the investigation of this case by ATF and the Columbus Police, as well as Assistant United States Attorneys David M. DeVillers and Jessica W. Knight who are prosecuting the case.
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Co-conspirators Sentenced for Roles in Marijuana Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two men were each sentenced today to over two years in prison for their respective roles in a large-scale marijuana trafficking conspiracy.
According to court documents, Nikco Van Nguyen, 22, of Falls Church, and Michael Ngo, 29, of Fairfax, acted as marijuana redistributors for Cuong Huynh, the leader of a criminal street gang known as the Asian Dragon Family. Huynh led the Washington, D.C. area marijuana trafficking ring that distributed over 100 kilograms of marijuana over a two-year time period.
Huynh operated at the center of the conspiracy, maintaining multiple wholesale sources of supply for marijuana while also maintaining a distribution network in the Washington, D.C. region. Huynh’s girlfriend, Victoria Nguyen, stored tens of thousands of dollars in cash proceeds at a time from the sale of marijuana and safeguarded those earnings for the next wholesale purchase. Nikco Nguyen and Michael Ngo, who were also members of the Asian Dragon Family, distributed marijuana for Huynh, picked up cash proceeds from customers and re-packaged larger quantities of marijuana into redistribution amounts.
Victoria Nguyen was sentenced to two years in prison on April 5 for her role in the conspiracy. Huynh is scheduled for sentencing on May 3.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Lena Munasifi and Assistant U.S. Attorney Dennis M. Fitzpatrick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-12 and 1:19-cr-17.
Choctaw Couple Charged with Making Bomb Threats and Robbing Bank on the Choctaw Indian ReservationRead the Press Release
Jackson, Miss. – David Keith Frazier, 33, and Lauren C. Willis, 26, both members of the Mississippi Band of Choctaw Indians, have been indicted by a federal grand jury for their role in two bomb threats and a bank robbery that occurred on the Choctaw Indian Reservation, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
Frazier and Willis appeared before U.S. Magistrate Judge Linda Anderson today for their initial appearances and arraignments on the indictment. The case is currently scheduled for trial on June 3, 2019, at 9:00 a.m. before U.S. District Judge Carlton Reeves.
Frazier and Willis are charged with two counts of making bomb threats, and one count of bank robbery. The indictment charges that Frazier and Willis used a telephone to make bomb threats to two tribal elementary schools and subsequently used a dangerous weapon to rob the Trustmark Bank located in the Choctaw Town Center in Philadelphia, Mississippi.
The case is being investigated by the Federal Bureau of Investigation and the Choctaw Police Department. The criminal case is being prosecuted by Special Assistant United States Attorney Kevin J. Payne.
The public is reminded that a criminal indictment is simply a formal charge against a defendant. It is merely an accusation, and each defendant is presumed innocent unless and until proven guilty in a court of law.
California Telemarketer Sentenced to Prison for Nationwide Rental Listing ScamRead the Press Release
Carlynne L. Davis, 34, of Lompoc, California, was sentenced on April 5 to 18 months in prison for her participation in a nationwide rental listing scam. Davis worked as a telemarketer at a business owned by Michael S. Davenport, 50, of Santa Barbara, California. Davenport is the former bass guitar player for the Ataris rock band. Last month, Davenport was sentenced to 7 years in prison for his role in the same fraud scam.
Davenport’s Santa Barbara-based business changed names several times but was known variously as MDSQ Productions LLC, Housing Standard LLC, Anchor House Financial, American Standard, American Standard Online, and Your American Standard. Court documents simply refer to the business as “American Standard.”
American Standard was a rental listing scam. From 2009 through 2016, American Standard defrauded over 100,000 would-be renters and home-buyers out of more than $25 million.
At his September 2018 guilty plea, Davenport admitted that American Standard placed ads on Craigslist stating that certain houses were available for sale or rent at very favorable prices. When individuals called in response to these ads, American Standard salespersons told them they would have to purchase American Standard’s list of houses in order to get more information about the property in the Craigslist ad. The salespersons also said that the houses on the American Standard list were in “pre-foreclosure,” that the customers could purchase the houses by simply taking over the homeowners’ mortgage payments, and the deeds to these homes would then be transferred into the customers’ names. The salespersons told the customers that there was a $199 fee for access to the list but claimed that this $199 fee would cover title searches and deed transfers. In addition, regardless of what area of the country the customers lived in, the salespersons told them that the list contained numerous pre-foreclosure properties that were available in their area.
After the customers paid the $199 fee, they learned that the houses on American Standard’s list were not available to be purchased. Instead, the customers found that a substantial number of the addresses contained on the list were fictional and/or no houses existed at those locations. In
numerous other cases, the customers learned that the houses were not in pre-foreclosure or financial distress, and were not available to be purchased at below market prices. If the customers asked for more information about the houses they had seen on Craigslist, American Standard’s Customer Service Department always informed them that the houses were no longer available.
American Standard’s victims were located in all 50 states and the District of Columbia. At least 104 victims of the scam were located in 22 counties within the Southern District of Illinois, with multiple victims in both St. Clair and Madison Counties. In addition, American Standard’s list included 534 houses located in Southern Illinois.
Davis worked as a telemarketer for American Standard for approximately 2 years. She pled guilty to her role in the offense last June. At her sentencing hearing today, Chief United States District Judge Nancy J. Rosenstengel found that Davis personally defrauded over 1,000 victims out of more than $273,000. In addition to her prison sentence, Davis was also ordered to serve 5 years of supervised release.
Three other former American Standard employees have been prosecuted for participating in the fraud conspiracy. On January 28, 2019, Mark A. Phillips, 50, and Semjase E. Santana, 37, both of Santa Barbara, California, were each sentenced to serve 5 years of supervised release. Phillips and Santana both worked as telemarketers for American Standard. On March 6, 2019, Cynthia L. Rawlinson, 52, of Santa Barbara, was also sentenced to 5 years of supervised release. Rawlinson was a salesperson who also served as a manager for American Standard for a brief period of time.
This case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The Office of the Honorable Joyce E. Dudley, District Attorney for Santa Barbara County, and the Santa Maria Office of the FBI have provided substantial assistance in the investigation. The case is being prosecuted by Assistant United States Attorneys Scott A. Verseman and Monica A. Stump.Business Owner and Managers Sentenced to Federal Prison for Immigration CrimesRead the Press Release
Jackson, Miss. – China Buffet II owner Cheng Lin, 36, of Meridian, was sentenced yesterday by Senior U.S. District Court Judge David M. Bramlette III to 12 months in federal prison, followed by 5 years supervised release, for harboring illegal aliens at his restaurant in Meridian, announced U.S. Attorney Mike Hurst, Homeland Security Investigations Special Agent in Charge Jere T. Miles, and U.S. Department of Labor Office of Inspector General Special Agent in Charge Rafiq Ahmad.
Lin’s father, Guo Guang Lin, 61, of Brooklyn, New York, and Lin’s wife, Yang Fei Tang, 33, an illegal alien from China, were each sentenced to 6 months in prison, followed by 6 months house arrest, and 3 years of supervised release, for their violations of federal immigration laws. Guo Guang Lin previously pled guilty to harboring illegal aliens, while Tang pled guilty to a Criminal Information charging her with hiring more than 10 illegal aliens within a one year period.
In addition, Cheng Lin’s restaurant, China Buffett of Meridian, Inc. d/b/a/ China Buffet II, was sentenced to two years probation for harboring illegal aliens and ordered to execute an immigration compliance program and pay a $200,000 fine.
"These individuals chose to put profit before people, by secretly employing illegal aliens instead of American workers and cheating to get ahead of their competition. Those who violate our immigration laws, whether individuals or corporations, will be held accountable for their crimes. In order to staunch the flow of illegal immigration, we must prosecute those who are illegally employing, transporting and harboring them in our country. We will continue to prosecute these types of cases throughout Mississippi," said U.S. Attorney Hurst.
"As this case makes clear, Homeland Security Investigations is equally focused in its worksite enforcement efforts on foreign nationals who unlawfully seek employment as well as the U.S. employers who knowingly hire them," said HSI New Orleans Special Agent in Charge Jere Miles. "In addition to preserving fairness for legitimate businesses who operate lawfully, identifying and stopping the criminal networks that engage in cross-border human smuggling is a priority focus for Homeland Security Investigations as the criminal organizations behind this activity have no regard for the well-being of the people they smuggle who are often put at great risk during the dangerous attempt to illegally enter the U.S. HSI will continue to work collaboratively with our federal, state and local partners to investigate and prosecute such activity wherever it may be found."
In 2004, Defendant Guo Guang Lin was listed as one of the principal officers of China Buffet of Meridian. In 2011, Guo Guang Lin became the principal officer of the company. In 2014, the company was dissolved and reincorporated as Lin’s China Buffet of Meridian d/b/a China Buffet II, with Gui Guang Lin and Cheng Lin listed as some of the incorporators.
From 2012 through January 2017, HSI agents observed a 15-passenger van registered to China Buffet II making multiple trips to a house owned by China Buffet of Meridian Inc. to pick up illegal aliens living at the house and transport them to the restaurant where they worked, and back to the home. In January 2013, three illegal aliens were encountered by HSI, two of whom were in a 15-passenger van previously parked at a residence owned by China Buffet where the illegal aliens lived while working at China Buffet.
On February 22, 2017, HSI agents executed a search warrant at China Buffet and encountered 9 illegal aliens. None of them were required to complete any paperwork or show any documents or identification when they were hired as employees, nor were they asked about their immigration status.
Guo Guang Lin was identified by multiple illegal aliens as the driver of the passenger van between the home housing the illegal aliens and the business. Guo Guang Lin was also identified by illegal aliens as a cook at the restaurant. When Cheng Lin was interviewed, he admitted that the employees he paid in cash lived at the house owned by China Buffet II, while the hostess was paid via check. A monthly payroll ledger discovered during the search confirmed illegal employee names, dates worked, amounts paid and other information from July 2013 through January 2017. This ledger was separate from the payroll records for legal employees. It was also discovered through the investigation that China Buffet II omitted wages for their illegal employees when sending payroll records to their accountant in New York. The defendants also failed to withhold and pay federal income taxes on these illegal aliens, failed to prepare I-9 Forms, and failed to report wages to the Mississippi Department of Employment Security or the Internal Revenue Service.
In 2007, HSI arrested numerous illegal aliens employed at a restaurant owned by Cheng Lin in New Orleans. Cheng Lin admitted to paying employees in cash, and that employees were provided lodging, transportation and meals at no expenses. Lin was fined $23,250 for I-9 violations.
Cash and property seized in 2017 from the restaurant, bank accounts, and home of the Defendants, as well as the value of some assets, totaled over $700,000 and was forfeited to the Federal Government.
The case was investigated and indicted by Assistant United States Attorneys Glenda Haynes and Dave Fulcher. It is currently being prosecuted by United States Attorney Mike Hurst.
Bureau of Prisons Tests Micro-Jamming Technology in South Carolina Prison to Prevent Contraband Cell PhonesRead the Press Release
This week, the Federal Bureau of Prisons (BOP) conducted a pilot test of micro-jamming technology at the Broad River Correctional Institution in Columbia, S.C. The test – the first collaboration of this kind in a state corrections facility – was conducted to determine if micro-jamming could prevent wireless communication by inmates using contraband cellphones in a housing unit. This test follows two earlier tests at a federal corrections facility in Cumberland, Maryland.
Contraband cellphones present an ongoing safety and correctional security concern for the public as well as for correctional facilities across the country. Contraband cellphones have been used to run criminal enterprises, distribute child pornography, and facilitate the commission of violent crimes—all while inmates are incarcerated. In South Carolina, officials attributed the deadly April 15, 2018 prison riot in part to contraband cellphones. And on March 5, 2010, a South Carolina inmate ordered a hit on a 15-year corrections veteran from behind bars. He was shot six times and severely wounded.
“While I served as United States Attorney of Maryland, my office prosecuted an inmate who used a smuggled cellphone to order the murder of an innocent witness,” Deputy Attorney General Rod Rosenstein said. “Contraband cellphones in correctional facilities pose a grave danger. We stand ready to help our state and local partners in their efforts to prevent inmates from using contraband cell phones in jails and prisons.”
Assistant Attorney General Beth Williams added, “Offenders should not be able to continue to threaten the public from behind bars. Because the majority of our country’s inmates are housed in state facilities, it is crucial that we work with our state and local partners to test and determine what solutions work best.”
Currently only federal agencies can obtain authorization to jam the public airwaves. State and local prisons cannot. This week’s test was a novel collaborative operation between BOP and the South Carolina Department of Corrections allowing the testing of micro-jamming technology at a state prison.
The test was authorized by the National Telecommunications and Information Administration (NTIA) and coordinated with the Federal Communications Commission. Two NTIA engineers attended the test and performed measurements of the micro-jamming equipment’s radio emissions to observe and document their characteristics. After the test is complete, NTIA will analyze the data and prepare a report.
The BOP will continue to evaluate cell signal detection and interception technologies and work with its federal partners and Congress to achieve cost-effective options to combat this threat to corrections and public safety. The agency does not endorse any specific vendor or product.
Beware of Fraudulent Tax Return Preparers and Tax Schemes PromotersRead the Press Release
BIRMINGHAM – With the tax deadline quickly approaching for individual taxpayers, it is important to be aware of tax scams as well as the importance of being compliant in filing and paying federal taxes timely. Tax cheats are becoming more sophisticated in their schemes and are finding new ways to cheat the system as well as gaining access to your personal and tax information.
“As the tax deadline approaches it is important that our citizens know that tax fraud and schemes is an increasingly serious problem,” U.S. Attorney Jay E. Town said. “The U.S. Attorney’s Office and IRS-Criminal Investigation will continue to aggressively pursue those who attempt to defraud America’s tax system and cheat the public treasury.”
“We have IRS Special Agents located here in Alabama working around the clock to uncover, stop and work with the U.S. Attorney’s Office in prosecuting tax crimes. With the filing season coming to an end, it’s important that the public be aware of various tax schemes and report the scheme to either the IRS or their local police department,” said Thomas J. Holloman, Special Agent in Charge of IRS-CI, Atlanta Field Office.
The U.S. Attorney’s Office for the Northern District of Alabama, along with agents of IRS-Criminal Investigation and other law enforcement partners, is actively engaged in investigating various ways of committing tax fraud as well as combatting those criminals willing to steal identities and commit tax fraud for the unsuspecting public. As of last filing season, multiple tax investigations have been ongoing in our jurisdiction. Approximately 8 convicted individuals have been sentenced as a part of fraudulent tax schemes since May of 2018 in the Northern District of Alabama. The following are highlights of some of those cases:
Pamela Whitt
On November 27, 2018, Pamela Whitt of Bessemer, AL, was sentenced to two years in federal prison, to be followed by one year of supervised release and ordered to pay restitution of $146,177 to the IRS for filing false tax returns to the IRS. Whitt made false representations on her 2011 and 2012 individual tax returns by willfully underreporting receipts from her business and further falsely listed her filing status as single. The receipts related to over 1,000 federal income tax returns prepared. Whitt also filed false tax returns for her clients, to inflate the amount of tax refund they would receive.
Joel Gilbert & David Roberson
On October 24, 2018, Former Alabama State Representative David Roberson was sentenced to two years, six months in federal prison, to be followed by one year of supervised release and a $25,000 fine and Joel Gilbert of was sentenced to five years in federal prison, to be followed by two years of supervised release and a $25,000 fine with 200 hours of community service for their involvement in a Birmingham bribery scheme in which Gilbert bribed Robinson with a $375,000 contract paid to him through his non-profit called the Oliver Robinson Foundation. Robinson pleaded guilty to a tax charge and helped assist in the jury trial against Gilbert.
Patrice Anderson
On July 9, 2019, Patrice Anderson of Fairburn, GA, was sentenced to five years in federal prison, to be followed by one year of supervised release and ordered to pay restitution of $86,703 to the IRS for preparing filing fraudulent tax returns. Anderson filed tax returns claiming refundable credits to which her clients were not entitled so that they could receive much larger refunds from the government than they were eligible to receive. In return, Anderson would charge the clients abnormally high fees – up to $3,000 per fraudulent return – to file their taxes, according to testimony. The court determined that Anderson, who operated Queen’s Fast Tax from 2009 through 2012, had filed tax returns claiming more than $3.6 million in refunds in 2010 and 2011 alone, and that at least half the claimed refunds in those years were fraudulent.
Lanika Brown & Lashan Brown
On May 15, 2018, Lashan Brown was sentenced to three years, ten months in federal prison, to be followed by three years of supervised release and ordered to pay restitution of $120,671 to the IRS and Lanika Brown was sentenced to two years in federal prison, to be followed by three years of supervised release and ordered to pay restitution of $71,500 to the IRS for preparing and filing false tax returns with the IRS. Starting in 2010, Lashan Brown and Lanika Brown were return preparers at Brown Tax Service located in Tuscaloosa, AL. The Brown’s conspired together to prepare at least twenty fraudulent tax returns claiming false education credits for the tax years 2012 and 2013 for a total of $65,500 claimed in fraudulent refunds.
Go to https://www.irs.gov/newsroom/irs-concludes-dirty-dozen-list-of-tax-scams-for-2019-agency-encourages-taxpayers-to-remain-vigilant-year-round for more information on the Dirty Dozen for the 2019 filing season.
For in person interview requests or questions, please contact the Atlanta Field Office IRS-Criminal Investigation Public Information Officer at [email protected].
For further information from the United States Attorney’s Office, please contact the U.S. Attorney’s Office Public Information Officer at [email protected].
Bergen County, New Jersey, Real Estate Developer Admits Conspiracy to Deceive Mariner’s Bank and FDICRead the Press Release
NEWARK, N.J. – An Englewood, New Jersey-based real estate developer today admitted his role in a conspiracy to illegally obtain nominee loans from Mariner’s Bank, U.S. Attorney Craig Carpenito announced.
James Demetrakis, 79, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiracy to make false entries to deceive a financial institution and the FDIC.
According to documents filed in this case, a related case against Fred Daibes and Michael McManus, and statements made in court:
Demetrakis’ longtime business partner, Daibes, was the founder and, until April 2011, chairman of the board of directors, at Mariner’s Bank. The bank was subject to federal banking regulations that placed limits on the amount of money that the bank could lend to a single borrower. Between January 2008 and December 2013, Demetrakis conspired with Daibes and others to orchestrate a nominee loan scheme designed to circumvent the lending limits by ensuring that millions of dollars in loans flowed from Mariner’s Bank to the nominees to Daibes, while concealing from both Mariner’s Bank and the FDIC Daibes’ beneficial interests in those loans.
Demetrakis served as the nominee for a $1.8 million line of credit and recruited two of his relatives to serve as nominees for a $2.625 million loan. After receiving the proceeds of the loans, Demetrakis and the other nominees distributed these monies to Daibes. Daibes and the nominees, including Demetrakis, failed to disclose to Mariner’s Bank that Daibes arranged to make both the interest and principal payments on the loans.
The nominee loans became delinquent on certain occasions when Daibes failed to give the nominees, including Demetrakis, the funds to make the monthly payments. After the FDIC began an investigation into one of the loans, Daibes, McManus, and others created and submitted to the FDIC a false, backdated sales contract to make it appear as though Demetrakis had obtained the $1.8 million loan from Mariner’s Bank in order to pay Daibes for his interest in a real estate venture.
Daibes and McManus were indicted Oct. 30, 2018, on conspiracy and bank fraud charges, which remain pending. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
The conspiracy charge to which Demetrakis pleaded guilty carries a statutory maximum of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for July 23, 2019.
U.S. Attorney Carpenito credited special agents from the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney; special agents of the FDIC, Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Edward Plaza Esq., Little Silver, New Jersey
Atlantic County, New Jersey, Man Admits Role in Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted defrauding New Jersey state health benefits programs out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.
Edward Sutor Jr., 36, of Linwood, New Jersey, a Ventnor City firefighter, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Sutor was one of the owners of a company formed to market prescription compounded medications, referred to as “Company 1.” From May 2015 through February 2016, Sutor and others associated with the company persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications.
The conspirators learned that certain compounded medication prescriptions – including pain, scar, and antifungal creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. The conspirators also learned that the N.J. State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, would cover compounded medication prescriptions.
Sutor and his conspirators entered into an agreement under which Company 1 would receive a percentage of the amounts paid to compounding pharmacies for prescriptions secured by Sutor and his conspirators. Sutor and his conspirators then recruited public employees, offered them hundreds of dollars per month, and persuaded them to agree to obtain prescription compounded medications without any examination by a medical professional to indicate that the medications were medically necessary. Sutor would obtain insurance and personal information from the public employees and give that information to conspirators. Company 1 would receive a percentage of the amounts paid on these fraudulent prescriptions, which Sutor and others would share.
According to the information, Sutor and his conspirators caused New Jersey to pay over $2 million in fraudulent claims for compounded medications for public employees.
Sutor received $335,552 in gross proceeds for his role in the scheme. As part of his plea agreement, Sutor must forfeit these criminal proceeds and pay restitution of at least $2,682,708. He faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 17, 2019.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Alyson M. Oswald of the U.S. Attorney’s Office in Camden.
Defense counsel: John Zarych Esq., Northfield, New Jersey
Armored Car Employee and Two Co-Defendants Plead Guilty to Theft of over $500,000 from Armored Car on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Alexis Laguerra and Raymond Soto, Sr. pleaded guilty to bank larceny involving the theft of an armored car and over $500,000 from the car on November 2, 2018 in Valley Stream. Laguerra was an employee of GardaWorld, the owner of the armored car. Today’s pleas took place before United States Magistrate Judge Anne Y. Shields. An additional defendant, Raymond Soto, Jr., pleaded guilty on March 18, 2019 to bank larceny.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty pleas.
As admitted at the plea proceedings, Laguerra used his insider’s knowledge of GardaWorld to plot and carry out the theft. Laguerra was the assigned GardaWorld driver of the armored car for the overnight shift, and left it unoccupied and unguarded outside a bank. Soto Jr. then arrived, entered the armored car, and drove it a short distance from the bank. He then removed three bags of cash, totaling $510,000, from the armored car. Soto Sr., driving the getaway car, picked up Soto Jr. and the cash, and together they fled the scene. Law enforcement recovered $130,000 of the stolen money from Soto Sr.’s home.
“This inside job will now land these three defendants inside prison for long enough for them to realize, over and over, what a stupid idea this was,” stated United States Attorney Donoghue. “We commend the Nassau County Police Department and the FBI for quickly solving this crime and demonstrating, once again, that crime doesn’t pay.”
When sentenced, all three defendants face up to 10 years in prison, as well as forfeiture of $300,000, restitution of $510,000, and a fine of up to $250,000.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendants:
ALEXIS LAGUERRA
Age: 30
Brooklyn, New YorkRAYMOND SOTO, SR. (also known as “Razor”)
Age: 48
Richmond Hill, QueensRAYMOND SOTO, JR. (also known as “Rambo”)
Age: 30
Richmond Hill, QueensE.D.N.Y. Docket No. 18-CR-678 (SJF)
Alleged Non-compliant Sex Offenders Indicted on Charges of Failure to Register; Update RegistrationRead the Press Release
URBANA, Ill. – Two east central Illinois men have trial dates set after indictments were returned by the grand jury charging them in separate, unrelated cases with violation of the Sex Offender Notification and Registration Act (SORNA.)
Dallas Eugene Clement, 57, of Westlake, La., but living on the 1800 block of Lafayette St. in Mattoon, Ill. and Matthew R. Poulin, 33, of the 600 block of W. Healey Street in Champaign, Ill. were each charged with failure to update their respective sex offender registration.
A trial date of June 10, 2019 has been scheduled for Clement, who appeared in federal court today for arraignment. The indictment charging Clement alleges that from Dec. 1, 2018 through March 2, 2019, Clement, a convicted sex offender from the State of Louisiana, failed to update his registration. Clement was arrested on March 4, 2019, and charged in a criminal complaint. The affidavit filed in support of the complaint alleges that Clement had not updated his registration for two years and was traveling as a carnival worker. During a court appearance on March 11, 2019, before U.S. Magistrate Judge Eric I. Long, in Urbana, Clement waived detention hearing and was ordered to remain detained in U.S. Marshals Service custody.
A trial date of June 3, 2019, has been scheduled for Poulin, who appeared for arraignment on April 4, 2019. The indictment charging Poulin alleges that from Dec. 10, 2018 through January 11, 2019, Poulin, a convicted federal sex offender, failed to register and update his registration. Poulin was arrested on April 2, 2019. Poulin was ordered to remain detained in the custody of the U.S. Marshals Service.
If convicted, the statutory penalty for the offense of failure to register is up to 10 years in prison and a fine of up to $250,000.
The cases are being prosecuted by Assistant U.S. Attorney Elly M. Peirson and are the result of investigation by the U.S. Marshals Service. The Springfield Police Department assisted in the investigation of Poulin.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
ATF Director Thomas Brandon Visits Huntsville, ALRead the Press Release
Huntsville --- Yesterday, ATF Director Thomas Brandon visited Huntsville, AL for the grand opening the National Integrated Ballistics Information (NIBIN) National Correlation and Training Center. Having this facility in the Northern District of Alabama is representative of the growth and capabilities in Huntsville, and the impressive advancement that law enforcement has made in order to stay ahead of criminal threats to the public.
The Grand Opening was attended by ATF Director Tom Brandon, several members of his leadership team, USA Louis Franklin (MDAL), USA Zach Terwilliger (EDVA), USA Jeff Jensen (EDMO), ATF ASAC David Hyche, Congressman Mo Brooks (AL-5), Huntsville Mayor Tommy Battle, Madison County District Attorney Rob Broussard, Madison County Sheriff Kevin Turner, Huntsville Police Chief Mark McMurray, members of the National Crime Gun Intelligence Governing Board, and many other dignitaries and members of law enforcement.
National Integrated Ballistics Information Network, or NIBIN, is a national database of digital images of spent bullets, shell casings, and cartridge cases that were found at crime scenes or test-fired from confiscated weapons. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) manages the system and provides the equipment to crime labs around the country. There are NIBIN machines in many areas in Alabama, to include Birmingham, Huntsville, Mobile, Montgomery and are being considered in several other cities.
“The NIBIN system is DNA for ballistics. The NIBIN National Correlation & Training Center is where we test that ballistic DNA,” U.S. Attorney Jay Town said. “The ability to take a shell casing from a crime scene in California and match it with shell casings found in Birmingham or Huntsville is next generation crime intelligence. This ATF-driven technology is bad for bad guys. More shooters will be captured. More shooters will go to federal prison. And as a result, more justice for victims and more neighborhoods will be returned to their rightful owners…the law abiding citizens who have lived there for too long behind locked doors.”
Thursday 11 April 2019
WikiLeaks Founder Charged in Computer Hacking ConspiracyRead the Press Release
Julian P. Assange, 47, the founder of WikiLeaks, was arrested today in the United Kingdom pursuant to the U.S./UK Extradition Treaty, in connection with a federal charge of conspiracy to commit computer intrusion for agreeing to break a password to a classified U.S. government computer.
According to court documents unsealed today, the charge relates to Assange’s alleged role in one of the largest compromises of classified information in the history of the United States.
The indictment alleges that in March 2010, Assange engaged in a conspiracy with Chelsea Manning, a former intelligence analyst in the U.S. Army, to assist Manning in cracking a password stored on U.S. Department of Defense computers connected to the Secret Internet Protocol Network (SIPRNet), a U.S. government network used for classified documents and communications. Manning, who had access to the computers in connection with her duties as an intelligence analyst, was using the computers to download classified records to transmit to WikiLeaks. Cracking the password would have allowed Manning to log on to the computers under a username that did not belong to her. Such a deceptive measure would have made it more difficult for investigators to determine the source of the illegal disclosures.
During the conspiracy, Manning and Assange engaged in real-time discussions regarding Manning’s transmission of classified records to Assange. The discussions also reflect Assange actively encouraging Manning to provide more information. During an exchange, Manning told Assange that “after this upload, that’s all I really have got left.” To which Assange replied, “curious eyes never run dry in my experience.”
Assange is charged with conspiracy to commit computer intrusion and is presumed innocent unless and until proven guilty beyond a reasonable doubt. He faces a maximum penalty of five years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement after the charges were unsealed. First Assistant U.S. Attorney Tracy Doherty-McCormick, Assistant U.S. Attorneys Kellen S. Dwyer, Thomas W. Traxler and Gordon D. Kromberg, and Trial Attorneys Matthew R. Walczewski and Nicholas O. Hunter of the Justice Department’s National Security Division are prosecuting the case.
The extradition will be handled by the Department of Justice’s Office of International Affairs.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
WikiLeaks Founder Charged in Computer Hacking ConspiracyRead the Press Release
ALEXANDRIA, Va. – Julian P. Assange, 47, the founder of WikiLeaks, was arrested today in the United Kingdom pursuant to the U.S./UK Extradition Treaty, in connection with a federal charge of conspiracy to commit computer intrusion for agreeing to break a password to a classified U.S. government computer.
According to court documents unsealed today, the charge relates to Assange’s alleged role in one of the largest compromises of classified information in the history of the United States.
The indictment alleges that in March 2010, Assange engaged in a conspiracy with Chelsea Manning, a former intelligence analyst in the U.S. Army, to assist Manning in cracking a password stored on U.S. Department of Defense computers connected to the Secret Internet Protocol Network (SIPRNet), a U.S. government network used for classified documents and communications. Manning, who had access to the computers in connection with her duties as an intelligence analyst, was using the computers to download classified records to transmit to WikiLeaks. Cracking the password would have allowed Manning to log on to the computers under a username that did not belong to her. Such a deceptive measure would have made it more difficult for investigators to determine the source of the illegal disclosures.
During the conspiracy, Manning and Assange engaged in real-time discussions regarding Manning’s transmission of classified records to Assange. The discussions also reflect Assange actively encouraging Manning to provide more information. During an exchange, Manning told Assange that “after this upload, that’s all I really have got left.” To which Assange replied, “curious eyes never run dry in my experience.”
Assange is charged with conspiracy to commit computer intrusion and is presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, he faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the charges were unsealed. First Assistant U.S. Attorney Tracy Doherty-McCormick, Assistant U.S. Attorneys Kellen S. Dwyer, Thomas W. Traxler and Gordon D. Kromberg, and Trial Attorneys Matthew R. Walczewski and Nicholas O. Hunter of the Justice Department’s National Security Division are prosecuting the case.
The extradition will be handled by the Department of Justice’s Office of International Affairs.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-111.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Washington-Based Lawyer Indicted on Charge of Making False Statements to the Department of JusticeRead the Press Release
A federal grand jury today returned an indictment charging Gregory B. Craig, a Washington-based lawyer, with making false statements and concealing material information about his activities on behalf of Ukraine from the Department of Justice, National Security Division’s Foreign Agents Registration Act Unit (FARA Unit).
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.
Craig, 74, of Washington, D.C., was indicted by a grand jury in the U.S. District Court for the District of Columbia for willfully falsifying and concealing material facts from the FARA Unit, in violation of Title 18, United States Code, Section 1001(a)(1), and for making false and misleading statements to the FARA Unit, in violation Title 22, United States Code, Section 618(a)(2).
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
The maximum penalties for the charged offenses are, respectively, five years’ imprisonment and a $250,000 fine, and five years’ imprisonment and a $10,000 fine. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Craig is to be arraigned at a date to be scheduled by the Court.
This case is being investigated by the FBI’s New York Field Office. It is being prosecuted by Assistant U.S. Attorneys Fernando Campoamor-Sanchez and Molly Gaston of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Jason McCullough of the Justice Department’s National Security Division.
Washington-Based Lawyer Indicted on Charge of Making False Statements to the Department of JusticeRead the Press Release
WASHINGTON – A federal grand jury today returned an indictment charging Gregory B. Craig, a Washington-based lawyer, with making false statements and concealing material information about his activities on behalf of Ukraine from the Department of Justice, National Security Division’s Foreign Agents Registration Act Unit (FARA Unit).
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.
Craig, 74, of Washington, D.C., was indicted by a grand jury in the U.S. District Court for the District of Columbia for willfully falsifying and concealing material facts from the FARA Unit, in violation of Title 18, United States Code, Section 1001(a)(1), and for making false and misleading statements to the FARA Unit, in violation Title 22, United States Code, Section 618(a)(2).
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
The maximum penalties for the charged offenses are, respectively, five years’ imprisonment and a $250,000 fine, and five years’ imprisonment and a $10,000 fine. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Craig is to be arraigned at a date to be scheduled by the Court.
This case is being investigated by the FBI’s New York Field Office. It is being prosecuted by Assistant U.S. Attorneys Fernando Campoamor-Sanchez and Molly Gaston of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Jason McCullough of the Justice Department’s National Security Division.
Volusia County Man Sentenced to Prison for Federal Program FraudRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Thomas A. Calderon (49, Deltona) to a year in federal prison for making a materially false statement to the U.S. Railroad Retirement Board (“RRB”) concerning his eligibility for disability benefits. As part of his sentence, Calderon was also ordered to pay $168,950.70 in restitution.
Calderon had pleaded guilty on January 11, 2019.
According to court documents, in 2012, Calderon applied for and obtained disability retirement benefits. In his application, Calderon indicated that he was unemployed and acknowledged that he must notify the RRB immediately should he work for any employer or perform any self-employment work. On July 14, 2017, Calderon signed and submitted to the RRB a Continuing Disability Update Report in which he indicated that since January 1, 2015, he had not worked anywhere and had not been self-employed. In fact, from 2012 through 2017, Calderon owned and operated the Sports Den Bar in Orange City, Florida.
“The U.S. Railroad Retirement Board, Office of Inspector General is committed to fighting fraud, waste and abuse,” said Inspector General Martin J. Dickman. “The case sends a loud and clear message that combating disability fraud is a top priority and abuse of RRB programs will not be tolerated.”
This case was investigated by the U.S. Railroad Retirement Board - Office of Inspector General. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
United States Attorney’s Office Observes National Crime Victims’ Rights WeekRead the Press Release
Jackson, Miss. - Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance is taking place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“We must never forget one of the primary reasons we do this job – to seek justice for victims and their families. This week, we are honoring not only heroic victims who have stood up against those whom have harmed them, but also victim advocates and law enforcement professionals who make sure that our laws are enforced and our victims are protected. Our goal is to keep victims, their advocates, and law enforcement professionals at the forefront of our minds as we do the work of seeking justice for all,” said U.S. Attorney Mike Hurst.
U.S. Attorney Hurst presented the following awards during yesterday’s Crime Victims Service Awards Ceremony:
Victim Assistance Award – Federal Law Enforcement:
Molly Blythe, Special Agent, Federal Bureau of Investigation
This award recognizes a federal law enforcement agent who consistently displays top-quality investigative skills and sensitivity to the rights and needs of victims. Special Agent Blythe has demonstrated unwavering persistence and dependability during all phases of investigation and prosecution of cases involving victims of crime. Agent Blyth recently investigated a local human trafficker and provided untiring support to a victim in that case, resulting in the conviction and 32 year sentence of the defendant for this insidious crime.
Victim Assistance Award – State Law Enforcement:
Dan Ratliff, Mississippi Gaming Commission and FBI Task Force Officer
This award recognizes a member of state or local law enforcement that exhibits professionalism and superior service and sensitivity to victims. Task Force Officer Ratliff has been steadfast in his efforts to restore the sense of security and trust to victims, while vigorously pursuing justice. Officer Ratliff demonstrated unwavering persistence in the investigation of a local carjacking case that occurred within the City of Jackson and his continual support of the victim in that case.
Victim Assistance Award – Local Law Enforcement:
Kevin Payne, Mississippi Band of Choctaw Indians
Mr. Payne has been designated as a Special Assistant United States Attorney in this office prosecuting criminal cases that occur on the tribal lands of the Mississippi Band of Choctaw Indians. Mr. Payne consistently demonstrates steadfast persistence and dependability during the prosecution of cases involving victims of crime.
Victim Bravery Award:
“Tori”
Tori was a victim of human trafficking. This award recognizes a crime victim who has shown extraordinary strength and courage. Through her brave actions, Tori helped to achieve justice in the trial of her oppressor, and she continues to help other victims of human trafficking.
Crime Victim Assistance and Service Legacy Award:
Michelle Rhodes, Rankin County Youth Court
This award recognizes Mrs. Rhodes for her courageous efforts resulting in the rescue of a human trafficking victim. She is a dedicated crime victims’ advocate who works to help victims overcome obstacles and improve their lives. Mrs. Rhodes recently assisted in the prosecution of a local human trafficker.
Crime Victim Steadfast Award:
Tammy Thomas, mother of murder victim
This award recognizes Mrs. Thomas for her determination to bring justice to the defendant that took the life of her daughter. Mrs. Thomas is commended for her persistence, determination, and tireless pursuit of justice.
U.S. Attorney’s Office Honors Crime Victims and Survivors at Event Marking National Crime Victims’ Rights WeekRead the Press Release
WASHINGTON - U.S. Attorney Jessie K. Liu and the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia paid tribute today with a Moment of Silence at a ceremony honoring crime victims and survivors for their remarkable courage, determination and sacrifice.
At mid-afternoon, U.S. Attorney Liu, Principal Assistant U.S. Attorney Alessio D. Evangelista, and dozens of attorneys, victim advocates and support personnel gathered outside the office for a Moment of Silence, followed by the reading of first names of 61 victims and survivors whose experiences inspired all those seeking justice.
The event was timed with the annual observance of National Crime Victims’ Rights Week. This year’s national theme, “Honoring Our Past. Creating Hope for the Future,” celebrates the progress made over the decades and looks to a future of crime victim services that are even more inclusive, accessible, and trauma-informed.
“We gathered this afternoon to take a brief moment out of our busy day to honor the crime victims and survivors we work so hard to serve,” said U.S. Attorney Liu. “Those of us who work for our Office come to this building most days with some sense of anticipation, commitment or even pride. Yet for crime victims, this building is the last place they want to be – and we hope that the work that we do helps these victims get through the worst of days. For crime victims, this process has never been easy. But the passage of crime victims’ rights legislation has given victims a powerful voice and mandated that they are not forgotten as the case jackets pile up on our desks. So it is fitting that we step away from our desks today – as we do every April – to take a moment to recognize the victims and survivors who inspire and motivate us. “
Today’s event was developed and organized by the Victim Witness Assistance Unit of the U.S. Attorney’s Office. Members of the Unit provide essential services and support to victims and witnesses, such as making referrals for counseling and other services, addressing safety concerns, arranging travel, and accompanying victims to court proceedings. The Unit also notifies victims of their rights and provides information regarding significant case events, such as the filing of charges, plea hearings, trials and sentencing hearings.
Each year in April, the Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime. The Justice Department will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/.
Additional information about the Victim Witness Assistance Unit is available at https://www.justice.gov/usao-dc/victim-witness-assistance-unit
U.S. Attorney's Office Observes National Crime Victims' Rights Week by Recognizing Victims and Those Who Advocate for VictimsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, NY--In observance of National Crime Victims’ Rights Week, April 7-13, 2019, U.S. Attorney James P. Kennedy, Jr. today recognized victims of crime and an organization that works tirelessly to assist those who are victimized. Honored today were:
• PATH (People Against Trafficking Humans) is a faith-based not-for-profit organization in WNY with a mission to end human trafficking through education, prevention, and restoration. PATH operates an Enrichment Center located in the City of Buffalo which offers therapeutic support services for women and children who are vulnerable, at risk or have been exploited through sex or labor trafficking. In addition, PATH is an active members of the Federal Human Trafficking Task Force.
• Barbara and Sigmund Szymanski have shown exceptional perseverance and determination as they deal with the tragic loss of their son who was the victim of a violent crime. Daniel “DJ” Szymanski was murdered on September 6, 2014, by Kingsmen Motorcycle Club member Andre Jenkins, at the direction of KMC National President David Pirk. Jenkins and Pirk were sentenced to serve life in prison for their convictions on RICO conspiracy.
• Also honored was the mother of a young woman lost to the opioid epidemic. She also has shown incredible resolve and persistence as she deals with the devastating overdose death of her daughter. Defendant Dontrell Wise who sold the fentanyl which led to the death of her daughter was convicted and sentenced to life in prison.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
“At today’s ceremony, we honor victims of three of the threats which we here at the US Attorney’s Office work tirelessly to combat each and every day—violent crime, the opioid crisis, and human trafficking,” said U.S. Attorney Kennedy. “My message to the criminals who victimize others in our community by taking the lives of our loved ones is simple. If you take the life of another, then be prepared to give up you own. If you don’t believe me when I say that, then just ask Mr. Wise, Mr. Jenkins, and Mr. Pirk whether we mean it. Each of them took the life of another. Each of them will spend the rest of their life in jail.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s theme is: Honoring Our Past. Creating Hope for the Future.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers.
More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office Victim Witness Program at 716-843-5700.
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Two Romanian Cybercriminals Convicted of All 21 Counts Relating to Infecting over 400,000 Victim Computers with Malware and Stealing Millions of DollarsRead the Press Release
A federal jury today convicted two Bucharest, Romania, residents of 21 counts related to their scheme to infect victim computers with malware in order to steal credit card and other information to sell on dark market websites, mine cryptocurrency and engage in online auction fraud, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Justin E. Herdman of the Northern District of Ohio.
Bogdan Nicolescu, 36, and Radu Miclaus, 37, were convicted after a 12-day trial of conspiracy to commit wire fraud, conspiracy to traffic in counterfeit service marks, aggravated identity theft, conspiracy to commit money laundering and 12 counts each of wire fraud. Sentencing has been set for Aug. 14, 2019 before Chief Judge Patricia A. Gaughan of the Northern District of Ohio.
According to testimony at trial and court documents, Nicolescu, Miclaus, and a co-conspirator who pleaded guilty, collectively operated a criminal conspiracy from Bucharest, Romania. It began in 2007 with the development of proprietary malware, which they disseminated through malicious emails purporting to be legitimate from such entities as Western Union, Norton AntiVirus and the IRS. When recipients clicked on an attached file, the malware was surreptitiously installed onto their computer.
This malware harvested email addresses from the infected computer, such as from contact lists or email accounts, and then sent malicious emails to these harvested email addresses. The defendants infected and controlled more than 400,000 individual computers, primarily in the United States.
Controlling these computers allowed the defendants to harvest personal information, such as credit card information, user names and passwords. They disabled victims’ malware protection and blocked the victims’ access to websites associated with law enforcement.
Controlling the computers also allowed the defendants to use the processing power of the computer to solve complex algorithms for the financial benefit of the group, a process known as cryptocurrency mining.
The defendants used stolen email credentials to copy a victim’s email contacts. They also activated files that forced infected computers to register email accounts with AOL. The defendants registered more than 100,000 email accounts using this method. They then sent malicious emails from these addresses to the compromised contact lists. Through this method, they sent tens of millions of malicious emails.
When victims with infected computers visited websites such as Facebook, PayPal, eBay or others, the defendants would intercept the request and redirect the computer to a nearly identical website they had created. The defendants would then steal account credentials. They used the stolen credit card information to fund their criminal infrastructure, including renting server space, registering domain names using fictitious identities and paying for Virtual Private Networks (VPNs) which further concealed their identities.
The defendants were also able to inject fake pages into legitimate websites, such as eBay, to make victims believe they were receiving and following instructions from legitimate websites, when they were actually following the instructions of the defendants.
They placed more than 1,000 fraudulent listings for automobiles, motorcycles and other high-priced goods on eBay and similar auction sites. Photos of the items were infected with malware, which redirected computers that clicked on the image to fictitious webpages designed by the defendants to resemble legitimate eBay pages.
These fictitious webpages prompted users to pay for their goods through a nonexistent “eBay Escrow Agent” who was simply a person hired by the defendants. Users paid for the goods to the fraudulent escrow agents, who in turn wired the money to others in Eastern Europe, who in turn gave it to the defendants. The payers/victims never received the items and never got their money back.
This resulted in a loss of millions of dollars.
The Bayrob group laundered this money by hiring “money transfer agents” and created fictitious companies with fraudulent websites designed to give the impression they were actual businesses engaged in legitimate financial transactions. Money stolen from victims was wired to these fraudulent companies and then in turn wired to Western Union or Money Gram offices in Romania. European “money mules” used fake identity documents to collect the money and deliver it to the defendants.
The FBI investigated the case, with assistance from the Romanian National Police. Senior Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Duncan T. Brown and Brian McDonough of the Northern District of Ohio prosecuted the case. The Office of International Affairs also provided assistance in this case.
Two Local Men Get a Combined 46+ Years in Separate, but Similar Child Pornography CasesRead the Press Release
CORPUS CHRISTI, Texas - Two Corpus Christi men have received significant sentences for sexual exploitation crimes that involved the use of social media, announced U.S. Attorney Ryan K. Patrick. Jesus Ramirez Jr., 27, and Julio Cesar Diaz, 31, pleaded guilty in September and January 2018, respectively, to production of child pornography in separate, but similar cases. Diaz also admitted to online solicitation of a minor.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Ramirez to 280 months in federal prison. Additional information was also presented today demonstrating how Ramirez had been involved in soliciting at least five minor females online, posing as a much younger male named “Justin.” In handing down the sentence, the court noted need to protect the public and the unlikelihood that a pedophile such as he would ever stop being a danger. Ramirez will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet.
At a hearing yesterday, Judge Jack ordered Diaz to serve a total of 276 months in federal prison to be immediately followed by a life term of supervised release. At his hearing, additional information was presented detailing the number of victims and acts against them. The court also heard that Diaz was arrested after arriving at a predetermined location to have sex with a minor victim. In handing down the sentence, the court noted the need to protect the public.
Both men will also be ordered to register as sex offenders.
Ramirez admitted he had been using a false identity online to persuade and ultimately coerce minors to create and send nude and sexually graphic photos and videos of themselves to him. Each of the minors reported receiving disturbing messages from Ramirez. In them, Ramirez claimed to have created images that appeared to be naked pictures of them using photos found on their various social media accounts combined with pornographic photos. He threatened to send the created photos to the their friends and classmates.
While there was no evidence he had met any of the victims in person, law enforcement did recover evidence that he intended to do so using false and misleading information and messages.
Diaz admitted he had been using social media and a false name to meet minor females in and around Corpus Christi, grooming them via phone calls and chats. After a brief time, Diaz would request nude and sexually explicit images of the children and ultimately met some of the minors to engage in sexual activity.
Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted both investigations with the assistance of the National Center for Missing and Exploited Children.
Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two Individuals Indicted in April 2019 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the April 2019 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
WINFORD LAMONT HENLEY, age 45, of Roff, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of Firearm In Furtherance Of Drug Trafficking Crime
Felon In Possession Of FirearmThe Indictment alleges that on or about February 12, 2019, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841 (b)(1)(C), punishable by not more than 20 imprisonment, a fine up to $1,000,000.00, or both.
The Indictment further alleges that on or about February 12, 2019, in the Eastern District of Oklahoma the defendant, did knowingly possess a firearm, to wit: one (1) North American Mfg (DBA North American Arms), Model NAA-22LR, .22 caliber revolver, serial number L066420, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine, as alleged in Count One, in violation of Title 18, United States Code, Section 924(c). punishable by not less than 5 years to run consecutive to any other term of imprisonment imposed, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about February 12, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to wit: one (1) North American Mfg (DBA North American Arms), Model NAA-22LR, .22 caliber revolver, serial number L066420, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Eufaula Police Department and the Federal Bureau of Investigation.
Assistant United States Attorney Dean Burris
JORDAN BRADLEY BROWN, age 30, of Tahlequah, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of Firearm In Furtherance Of Drug Trafficking Crime
Felon In Possession Of Firearm (2 Counts)The Indictment alleges that on or about February 27, 2019, within the Eastern District of Oklahoma, defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 and not more than 40 years imprisonment, a fine up to $5,000,000.00, or both.
The Indictment further alleges that on or about February 27, 2019, in the Eastern District of Oklahoma, the defendant did knowingly possess a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count One, punishable by not less than 5 years to run consecutive to any other term of imprisonment imposed, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about February 27, 2019, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about February 27, 2019, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Bryco Arm Jennings Nine 9mm semi-automatic pistol Serial #1086803; which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Cherokee County Sheriff’s Office, the Oklahoma Bureau of Narcotics and Dangerous Drugs, and the Drug Enforcement Administration.
Assistant United States Attorney Rob Wallace
Two Cortland County Residents Arrested on Child Exploitation ChargesRead the Press Release
SYRACUSE, NEW YORK – Christopher M. Perry, age 35, and Sarah R. Gates, age 38, of Cortland, New York, were charged today with sexual exploitation of a child, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
A federal criminal complaint filed today charges that beginning in 2017, Perry and Gates engaged in sexually explicit conduct with a child who was born in 2014, for the purpose of producing visual depictions of that conduct. The charge filed against Perry and Gates carries a mandatory minimum sentence of 15 years, a maximum sentence of up to 30 years in prison, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The charges in the complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The defendants appeared today before United States Magistrate Judge Andrew T. Baxter in Syracuse, New York, who ordered that they be detained in federal custody pending resolution of their cases.
The investigation is ongoing, and the City of Cortland Police Department requests anyone who may have information to call 607-758-8303.
The U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the City of Cortland Police Department, and the New York State Police-Computer Crimes Unit are conducting the investigation. The case is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare, as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to 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 https://www.justice.gov/psc.
Two Charleston Men Sentenced to Prison for Roles in Federal Drug ConspiracyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that two Charleston men have been sentenced to prison for their roles in a methamphetamine conspiracy in 2017. Michael Ginther and Travis Thomas were sentenced to 72 and 87 months in prison, respectively.
“Yet another network of meth traffickers dismantled,” said United States Attorney Mike Stuart. “We’re taking down drug dealers and putting them behind bars for lengthy prison stays. Excellent work by my team and our law enforcement partners.”
The investigation involved numerous controlled purchases of methamphetamine from the defendants involved in the conspiracy between June 2017 and September 2017. Three other members of the conspiracy were sentenced to prison last week. Melody Legg was sentenced to 120 months, Timothy Boggs to 24 months, and William Naylor to 36 months.
This investigation was the result of a joint effort by the Drug Enforcement Administration, the Violent Crime and Drug Task Force West, and the Kanawha County Sheriff’s Department STOP Team. Assistant United States Attorney Stephanie S. Taylor handled the prosecutions. United States District Judge Joseph R. Goodwin imposed the sentences.
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Tulsa Man Indicted for Threatening to “…kill a bunch of people downtown” Makes Initial AppearanceRead the Press Release
TULSA, Okla. – A man, who allegedly made threats via Facebook Messenger to “shoot and kill a bunch of people downtown…” made his initial appearance in U.S. District Court today, announced U.S. Attorney Trent Shores. The threats were made by Hill and investigated by law enforcement in August 2018.
In March 2019, a federal grand jury indicted Jared Lorenzo Hill, 35, of Tulsa, for Interstate Communication of a Threat. The indictment was unsealed today.
“Using social media to threaten a mass shooting is not exercising free speech, it’s committing a federal crime. I am thankful that citizens who saw the defendant’s alleged threats immediately brought them to the attention of law enforcement authorities who acted swiftly and decisively,” said U.S. Attorney Shores. “I encourage all citizens to take seriously and report threats of violence, including those posted on social media. If you see something, say something. You might very well be saving lives.”
If convicted, Hill faces a maximum penalty of five years in prison and a $250,000 fine.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Trial Ends in Conviction of Enid Man on Methamphetamine and Firearm ChargesRead the Press Release
OKLAHOMA CITY – JERRY JAMES KENDALL RITCHIE, 32, of Enid, has been convicted after a two-day jury trial of possessing methamphetamine with intent to distribute and two counts of illegal possession of a firearm, announced First Assistant U.S. Attorney Robert J. Troester.
An indictment filed on November 13, 2018, charged Ritchie with possession of 13.9 grams of methamphetamine with intent to distribute, possession of a firearm after a felony conviction, and possession of a firearm in furtherance of drug trafficking. Beginning on April 9, 2019, a jury heard evidence that Enid Police Department officers stopped a Buick SUV driven by Ritchie on October 19, 2018, at approximately 7:06 p.m. for a traffic violation. When officers apprehended Ritchie after he fled on foot, he refused to place his hands in the air and was pulled to the ground and handcuffed while yelling and cursing. Officers ultimately discovered a loaded semi-automatic pistol in the SUV, along with bags with a white substance that tested positive for methamphetamine and two digital scales. Ritchie is alleged to be a member of the Universal Aryan Brotherhood.
Jurors returned unanimous guilty verdicts on all three counts earlier today.
U.S. District Judge Scott L. Palk will sentence Ritchie in approximately 90 days. For the conviction on the drug count, Ritchie could be imprisoned up to twenty years, be fined up to $1,000,000, and be subject to three years of supervised release. He could be imprisoned for ten years and face up to three years of supervised release for being a felon in possession of a firearm. Additionally, possession of a firearm in furtherance of drug trafficking carries a mandatory term of five years of imprisonment beyond any other sentence and three years of supervised release. If, however, the court determines Ritchie qualifies as an armed career criminal, he would be subject to a mandatory prison term of fifteen years and a maximum of life.
The charges against Ritchie are the result of an investigation by the Enid Police Department, the U.S. Department of Homeland Security—Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the District Attorney’s Office for Garfield County. Prosecuted by Assistant U.S. Attorneys Nicholas J. Patterson and Wilson D. McGarry, this case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to public filings for further information.